RockCenterPart1_2

RockCenterPart1_2 - Rock's (to be named) Shopping Center...

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Rock's (to be named) Shopping Center Year 1 2 3 4 5 6 Potential gross income Effective gross income Potential expense reimbursement Common area maintenance Property tax expense Property insurance Total Net expense reimbursement Total operating receipts Less: Common area maintenance Property tax expense Property insurance Management expense Replacement reserves Total operating expense Net Operating Income 66,736 68,446 70,198 72,958 74,822 78,558 Less: Leasing commissions Tenant improvements Total non-operating expense Net operating income After non-op expenses 66,736 68,446 70,198 65,972 74,822 69,011 Less: Maximum mortgage loan pmt Before-tax cash flow
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Assumptions and Parameters Property Variables Total Square Feet 12,000 Vacancy and Collection Loss Rate 5% Common Area Maintenance (psf) $0.06 Property Tax (psf) $0.80 Property Insurance (psf) $0.12 Management Fee (% of Total Operating Receipts) 5% Brokerage Commission Rate 2% Annual Replacement Reserves $2,000.00 TI Costs (psf) $1.50 Economic or Market Variables Consumer Price Index 2.50% Reimbursable Expense Growth Rate 3.25% Market Rental Growth Rate 4.00% For Part 2: Permanent Lender's Terms Debt Coverage Ratio 1.25 Annual Interest Rate 12% Loan Maturity 25 Loan-to-Value Ratio 0.75 Loan-to-Cost Ratio 0.75 Capitalization Rate 12% Equity-to-Cost Ratio 0.25
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Aggie Convenience Store Tenant Variables: Tenant Square feet 2600 Lease Term 20 Annual Rent Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Base Rent $5.80 $5.80 $5.95 $6.09 $6.25 $6.40 $6.56 Vacancy 5% Year 1 2 3 4 5 6 Potential gross income 15,080 15,457 15,843 16,240 16,645 17,062 Less: Vacancy and collection loss (754) (773) (792) (812) (832) (853) Effective gross income 14,326 14,684 15,051 15,428 15,813 16,209 Potential expense reimbursement Common area maintenance 156 161
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RockCenterPart1_2 - Rock's (to be named) Shopping Center...

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