Case 2 - 900 Stony Walk Ivy Terrace Number of Units\/or square feet Alison Green of rentable space 100 67,000 80 Gross Purchase Price $9,600,000

Case 2 - 900 Stony Walk Ivy Terrace Number of Units/or...

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Alison Green 900 Stony Walk Ivy Terrace 100 67,000 80 Gross Purchase Price $9,600,000 $11,500,000 $8,400,000 Depreciable Base $7,500,000 $8,000,000 $8,400,000 27.5 39 27.5 Estimated Sales Price $12,500,000 $14,500,000 $10,500,000 Expected Year of Sale 10 10 10 Cash Flow from Operations $870,200 $1,057,200 $765,700 Annual Increase in CFO 3.00% 3.00% 3.00% Leasehold Payments $0.00 $0.00 $30,000 Equity Investment $3,600,000 $3,500,000 $2,900,000 Amount of 1st Mortgage $6,000,000 $8,000,000 $5,500,000 1) Interest Rate 6.00% 6.50% 6.00% 2) Term (in years) 10 10 10 3) Amortization Period (in years) 30 20 30 4) Constant Loan Payments 7.26% 9.08% 7.26% Number of Units/or square feet of rentable space Depreciable Life (Capital Recovery Period)
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The Fowler Building 50,000 $9,400,000 $9,400,000 39 $13,300,000 10 $788,300 4.00% $70,000 $2,400,000 $7,000,000 7.50% 10 25 8.97%
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Alison Green 900 Stony Walk Ivy Terrace The Fowler Building Gross Rents 1440 1742 1296 1275 Vacancies 72 87.1 90.72 89.25 Effective Gross Income $1,368.00 $1,654.90 $1,205.28 $1,185.75 Real Estate Taxes $172.80 $209.04 $129.60 $127.50 Other Operating Expenses $300.00 $368.56 $289.98 $254.95 Capital Reserves $25.00 $20.10 $20.00 $15.00 Cash Flow From Operations $870.20 $1,057.20 $765.70 $788.30 Finance Payments $435.89 $726.05 $399.57 $627.97 Lease Payments $0.00 $0.00 $30.00 $70.00 Before Tax Cash Flow $434.31 $331.15 $336.13 $90.33
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Alison Green 900 Stony Walk Ivy Terrace The Fowler Building $96,000 $172 $105,000 $188 12.00% 12.00% 10.00% 10.00% $3,000.00 $5.50 $3,624.75 $5.10 20.83% 21.16% 22.38% 20.00% $4,728.00 $8.62 $5,244.75 $7.65 $1,200.00 $26.00 $1,350.00 $25.50 95% 95% 93% 93% Price/Rentable Square Foot Taxes/Gross Revenue Expenses/Renta ble Square Foot Expenses/Gross Revenue RE Taxes and Op EXP/Unit or SF Per Sq Ft of Office Space Projected Occupancy
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Alison Green 900 Stony Walk Ivy Terrace Current or Projected Occupancy 95% 95% 93% Added Margin 30.16% 19.01% 25.94% Break-Even Occupancy 64.84% 75.99% 67.06% Loan to Value Ratio 62.50% 69.57% 65.48% Debt Coverage Ratio 2.00 1.46 1.92
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The Fowler Building 93% 7.08% 85.92% 74.47% 1.26
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Alison Green Projected Cash Flow Assumptions 0 1 Cash Flow from Operations 3.00% $870.20 -Lease Payments $0.00 -Financing -435.89 BEFORE TAX CASH FLOW $434.31 Amortization+ 6,000,000 75.89 Reserve+ 25.00 -Depreciation 27.5 -272.73 Taxable Income 262.47 -Tax Payable @ 35% 35.00% -91.87 AFTER TAX CASH FLOW 342.44 -Equity In -3,600 Err:509 0 TOTAL RETURN -$3,600.00 $342.44 Purchase Price $9,600.00 SALES PRICE Cap Exp.+ $250.00 NET BOOK VALUE -Depreciation -$2,727.27 GAIN ON SALE Net Book Value $7,122.73 Depreciation Tak Land Value $2,100.00 Taxes @ 25% Depreciable Base $7,500.00 Remaining Gain Taxes @ 15% Total Capital Gain Amortization Schedule 0 1 Ending Balance $6,000.00 $5,924.11 Finance Charge $435.89 Interest Charge 6% interest rate $360.00 Amortization 30 years $75.89 Analysis of Discounted Values 1 2 $434.31 Cash Flow Before Taxes 0 $460.41
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0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -91.87 Income Tax Consequences 0 -102.60 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Future Values
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2 3 4 5 6 7 $896.31 $923.20 $950.89 $979.42 $1,008.80 $1,039.06 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 -435.89 -435.89 -435.89 -435.89 -435.89 -435.89 $460.41 $487.30 $515.00 $543.52 $572.91 $603.17 80.45 85.27 90.39 95.81 101.56 107.66 25.00 25.00 25.00 25.00 25.00 25.00 -272.73 -272.73 -272.73 -272.73 -272.73 -272.73 293.13 324.85 357.66 391.61 426.74 463.10 -102.60 -113.70 -125.18 -137.06 -149.36 -162.08 357.82 373.60 389.82 406.46 423.55 441.09 0 0 0 0 0 0 $357.82 $373.60 $389.82 $406.46 $423.55 $441.09 $12,500.00 SALES PRICE $12,500.00 E -$7,122.73 -Income Tax -$1,079.32 $5,377.27 -Mortgage Balance -$4,999.66 Net Cash from Sale $6,421.02 ken $2,727.27 $681.82 $2,650.00 $397.50 NET PRESENT VALUE @ 12% $734.29 nsTaxes $1,079.32 IRR 14.93% 2 3 4 5 6 7 $5,843.66 $5,758.39 $5,668.00 $5,572.18 $5,470.62 $5,362.96 $435.89 $435.89 $435.89 $435.89 $435.89 $435.89 $355.45 $350.62 $345.50 $340.08 $334.33 $328.24 $80.45 $85.27 $90.39 $95.81 $101.56 $107.66 3 4 5 6 7 8
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$487.30 0 $515.00 0 0 $543.52 0 0 0 $572.91 0 0 0 0 $603.17 0 0 0 0 0 $634.34 0 0 0 0 0 0 0 0 0 0 0 0 -113.70 0 -125.18 0 0 -137.06 0 0 0 -149.36 0 0 0 0 -162.08 0 0 0 0 0 -175.26 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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8 9 10 $1,070.24 $1,102.34 $1,135.41 $0.00 $0.00 $0.00 -435.89 -435.89 -435.89 $634.34 $666.45 $699.52 114.12 120.96 128.22 25.00 25.00 25.00 -272.73 -272.73 -272.73 500.73 539.69 580.01 -175.26 -188.89 -203.00 459.09 477.56 496.52 0 0 6,421.02 $459.09 $477.56 $6,917.53 8 9 10 $5,248.85 $5,127.88 $4,999.66 $435.89 $435.89 $435.89 $321.78 $314.93 $307.67 $114.12 $120.96 $128.22 9 10 Discounted $377.90 $348.59
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$321.03
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