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CHICO UNIVERSITY CENTER1000 W SACRAMENTO CHICO CA 95926
SHADOW ANCHORED CENTER - SAFEWAY ndash WALGREENrsquoS Tenants are Open and Paying Rent
T A B L E O F C O N T E N T S
I nsti tutional L evel S er vice amp E x per ti se W ith A n E ntr epr eneur ial A ppr oach
T A B L E O F C O N T E N T S
INVESTMENT OVERVIEWbull Inves tment S ummarybull Inves tment Highlights
AREA OVERVIEWbull City Overviewbull Demographics
PROPERTY OVERVIEWbull Property Des criptionbull Parcel Map
TENANT SUMMARYbull Tenant Prof iles
FINANCIALSbull As s umptionsbull Cas h Flowbull Rent Roll
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Under-Market Rents Prominent Signage
Easy Ingress ampEgress
StrongParking Ratio
SignalizedIntersection
High Visibility
E
I NV E S T M E NT S UM M A R Y
OFFERING PRICE $1612000
CAP Rate (Year 1) 70
Current Occupancy 100
Total Building Area 8750 SF
Total Land Area 83 Acres
Parking Spaces 47 per 1000
Additional parking may be created by adding compact spaces and re-striping
INVESTMENT HIGHLIGHTS
bull Safeway and Walgreens shadow anchored center Safeway is the dominant market in the trade area
bull The Center is very seasoned with tenants who have a strong operating history
bull Walking distance to Chico State bull Very strong traffic count Over 56436 cars a daybull Low rents allow for future upside and stable tenancybull Good cash on cash returnbull College town retail stability
STRONG FUNDAMENTALS
bull Retail rents in the Chico metro increased by 15 year over-year as of 2019 Q3
bull Rents for retail establishments have also posted an average annual gain of 17 over the past three years
bull Vacancies in the metro were below the cycle average as of 2019Q3 and trended downwards over the past four quarters
bull Over the past five years employment has increased by 23 annually on average compared to a 17 average increase nationally
bull Over 20000 people have relocated from Paradise to Chico after last years fire in Paradise CA The influx of new residents and business has increased business across the board and has increased values for residential properties as well
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A R E A OV E R V I E W
The property is s ituated in an area that benef its f rom dens e res idential and commercial development Bus ines s es in the area continue to experience an economic boom after the Camp Fire which forced thous ands of res idents of Paradis e and other towns to move out of the mountains and into Chico and other S acramento Valley communities Population growth has exceeded 20000 new res idents
CHICO IS YOUNGVIBRANT amp GROWNING
Subway is now a Pizza Restaurant by the former operator
SUBJECT PROPERTY1000 W Sacramento
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CHICObull 90 miles north of Sacramentobull 174 miles northeast of San Franciscobull 8 miles from the Sacramento Riverbull 2 miles from the foothills of the Sierra Nevadabull Bidwell Park has a total of 3670 acres making it one
of the largest municipal parks in the United States
A R E A OV E R V I E W
bull Chico Californias estimated population is 94776 according to the most recent United States census estimates
bull Chico California is the 79th largest city in California based on official 2017 estimates from the US Census Bureau
bull The population density is284815peoplemisup2 (109967 peoplekmsup2)
bull The overall median age is298years 291 years for males and 307 years for females
bull For every 100 females there are 978 males
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A R E A OV E R V I E W
A GREAT PLACE FOR LEARNING LIVING amp LIFESTYLE
bull California State University Chico was found in 1887 It is the 2nd oldest Cal State College
bull Student Enrollment 17488 (2018)bull Campus amp Farm = 1149 Acresbull There are 200 student Org Groupsbull 96 of the students are from Califbull Average class size is 32 bull The largest major is business administration
Businesses in the area continue to experience an economic boom after the Camp Fire which forced thousands of residents of Paradise and other towns to move out of the mountains and into Chico and other Sacramento Valley communities Population growth has exceeded 20000 new residents
CHICO CELEBRATES ECONOMIC BOOM NAMED HOTESET RESIDENTIAL MARKET IN US 33 INCREASE IN VALUE
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P R OP E R T Y OV E R V I E W
SITE FRONTAGE amp ACCESS ZONINGThe University Center is located on the corner of West Sacramento Avenue and Nord Avenue just west of the Golden State Highway 99
The site benefits from being 228 feet on West Sacramento Avenue the first retail building at the entrance
Per the City of Chico the subject is currently zoned as CS ndash Commercial Services
TRAFFIC COUNTSDaily traffic at the intersection of West Sacramento and Nord Ave is approximately 43100
PARKINGThe University Center provides abundant shared approximately 47 spaces per 1000 SF parking ratio
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DE M OG R A P HI C S
Sheet1
Sheet2
Sheet3
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T E NA NT S UM M A R Y
PIZZAMOVE IN 512020LEASE ENDS 4302025INCREASES 25 AnnuallyOPTIONS NARENT (ANNUAL) $16800$SF (ANNUAL) $1500SQUARE FOOTAGE 1120EXPENSE PASSTHROUGH NNN
SMOKE SHOPMOVE IN Aug 2011LEASE ENDS 7312024INCREASES 2 annuallyOPTIONS NARENT (ANNUAL) $14280$SF (ANNUAL) $1020SQUARE FOOTAGE 1400EXPENSE PASSTHROUGH NNN
GEARHEAD BARBER SHOP MOVE IN 8119LEASE ENDS 73120 Tenant Req 5YR Extension INCREASES 2 annually
OPTIONS Annually for 5 years 2 increases
RENT (ANNUAL) $18000$SF (ANNUAL) $1429SQUARE FOOTAGE 1260EXPENSE PASSTHROUGH NNN
ACATACOMOVE IN Nov 2006LEASE ENDS 113024INCREASES 3 AnnuallyOPTIONS 25 3 annual increaseRENT (ANNUAL) $19668$SF (ANNUAL) $1873 SFSQUARE FOOTAGE 1050 SFEXPENSE PASSTHROUGH NNN
CHICO LAUNDRY COMOVE IN Nov 2006LEASE ENDS Month to MonthINCREASES NAOPTIONS NARENT (ANNUAL) $37464$SF (ANNUAL) $1338SQUARE FOOTAGE 2800EXPENSE PASSTHROUGH NNN
WINDY CHINESE RESTAURANTMOVE IN Nov 2006LEASE ENDS 8302021INCREASES 3 Annually
OPTIONS 15 MKT rate not more than 4 not less than prior year rent
RENT (ANNUAL) $21034$SF (ANNUAL) $1878SQUARE FOOTAGE 1120EXPENSE PASSTHROUGH NNN
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F I N A N C I A L S
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 11
AS S UM P T I ONS
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
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C AS H F L OW
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
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R E NT R OL L
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 14
This confidential investment brochure has been prepared solely forinformational purposes and does not constitute all or any part of an offer orcontract It is designed to assist a potential investor in determining whether toproceed with an in-depth investigation of the subject property
This investment brochure was prepared by Red Eagle Enterprises LTD IncDBA May Realty Advisors and has been reviewed by representatives of theOwner It contains select information pertaining to the sale of the SubjectProperty herein and does not purport to be all inclusive or to contain all of theinformation which prospective purchasers may desire It should be noted thatall financial projections are provided for general reference purposes only inthat they are based upon assumptions relating to the general economy andother factors beyond the control of Owner and therefore are subject tomaterial variation Additional information and an opportunity to inspect theproperty will be made available to interested and qualified prospectivepurchasers
Neither the Owner nor May Realty Advisors nor any of their respective officersor agents make any representation or warranty expressed or implied as tothe accuracy or completeness of this investment brochure or any of itscontents and no legal commitments or obligations shall arise by reason ofthis brochure or its contents
Certain documents in this investment brochure are described in summaryform The summaries do not purport to be complete nor necessarilyaccurate descriptions of the full agreements involved nor do they purport toconstitute a legal analysis of the provisions of the documents Interestedparties are expected to independently review all such documents The termsand conditions stated in this section will relate to all sections of the brochureas if stated independently therein
It is essential that all parties to real estate transactions be aware of the healthliability and economic impact of environmental factors on real estate MayRealty Advisors does not conduct investigations or analysis of environmental
matters and accordingly urges its clients to retain qualified environmentalprofessionals to determine whether hazardous or toxic wastes or substancesor other undesirable materials or conditions are present at the propertyand if so whether any health danger or other liability exists
Various federal state and local laws and regulations have been enacteddealing with the use storage handling removal transport and disposal oftoxic or hazardous wastes and substances Consequently legal counsel andtechnical experts should be consulted where these substances are or may bepresent
The Owner and May Realty Advisors expressly reserve the right at their solediscretion to reject any or all expressions of interest or offer to purchase theproperty andor to terminate discussions with any entity at any time with orwithout notice The Owner shall have no legal commitment or obligation to anyentity reviewing this investment brochure or making an offer to purchase theproperty unless and until a written commitment to purchase the property hasbeen fully executed delivered and approved by Owner and any conditions toOwnerrsquos obligations thereunder have been satisfied or waived
By receipt of this investment brochure you agree that its contents are of aconfidential nature that you hold and treat it in the strictest confidence andthat you will not disclose this brochure or any of its contents to any other entitywithout the prior written authorization of May Realty Advisors nor will you usethis brochure or any of its contents in any fashion or manner detrimental to theinterest of the Owner This brochure shall not be deemed an indication of thestate of affairs of the Owner nor constitute an indication that there has been achange in the business or affairs of Owner since the date of preparation of thisinvestment brochure For additional information please contact Matthew Mayor Richard Huelsman with May Realty Advisors at 818-528-3999 If afterreviewing this investment brochure you have no further interest in purchasingthe property kindly return it to May Realty Advisors at your earliestconvenience Photocopying and other duplication expressly prohibited
C ON F I DE N T I A L I T Y amp DI S C L A I M E R
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 15
CONTACT U S
MAY R E AL T Y ADV IS OR S15206 Ventura Blvd
S uite 302
S herman Oaks CA 91403
Phone (818) 528-3999
BRE 01206736MAT THE W MAYPres ident
Matthew mrala
8 1 8 4 7 7 08 17
BRE 0 0 9 1 24 72
R IC HAR D HUE L S MAN
Managing DirectorRichard mrala
3104633102
BRE 01956167
I nsti tuti onal L evel Ser vi ce amp E x per ti seW i th A n E ntr epr eneur i al A ppr oach
C elebr ati ng O ver 30 Y ear s of R etai l E x per ti se
22020P R E S E N T E D B Y M A Y R E A L T Y A D V I S O R S | lsaquorsaquo
- Slide Number 1
- Slide Number 2
- INVESTMENT SUMMARY
- AREA OVERVIEW
- Slide Number 5
- AREA OVERVIEW
- PROPERTY OVERVIEW
- DEMOGRAPHICS
- TENANT SUMMARY
- FINANCIALS
- ASSUMPTIONS
- CASH FLOW
- RENT ROLL
- CONFIDENTIALITY amp DISCLAIMER
- Slide Number 15
-
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 5 | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 8750 | Price per Square Foot | $18423 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
Population | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Population | 20584 | 81074 | 104274 | 119032 | 49032 | ||||||
5 Yr Growth | 31 | 34 | 38 | 38 | 32 | ||||||
Median Age | 27 | 32 | 32 | 33 | 30 | ||||||
5 Yr Forecast | 30 | 34 | 34 | 35 | 32 | ||||||
White Black Hispanic | 83 3 18 | 86 2 17 | 86 2 17 | 87 2 18 | 86 3 18 | ||||||
5 Yr Forecast | 82 4 19 | 86 2 18 | 86 2 19 | 87 2 19 | 85 3 19 | ||||||
Employment | 13053 | 45343 | 59878 | 63212 | 23141 | ||||||
Buying Power | $2025M | $14B | $20B | $24B | $7698M | ||||||
5 Yr Growth | 44 | 48 | 59 | 56 | 47 | ||||||
College Graduates | 241 | 280 | 295 | 299 | 358 | ||||||
Household | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Households | 7549 | 32627 | 41824 | 47220 | 19688 | ||||||
5 Yr Growth | 30 | 35 | 37 | 37 | 33 | ||||||
Median Household Income | $26819 | $42695 | $48237 | $51719 | $39100 | ||||||
5 Yr Forecast | $27172 | $43249 | $49267 | $52659 | $39650 | ||||||
Average Household Income | $49806 | $65437 | $70018 | $74150 | $62203 | ||||||
5 Yr Forecast | $50709 | $66898 | $71605 | $75848 | $63827 | ||||||
High Income (gt$75k) | 20 | 31 | 34 | 37 | 25 | ||||||
Housing | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Median Home Value | $322241 | $300401 | $308470 | $321616 | $316720 | ||||||
Median Year Built | 1977 | 1976 | 1981 | 1981 | 1971 | ||||||
Owner Renter Occupied | 23 77 | 42 58 | 46 54 | 49 51 | 34 66 | ||||||
T A B L E O F C O N T E N T S
I nsti tutional L evel S er vice amp E x per ti se W ith A n E ntr epr eneur ial A ppr oach
T A B L E O F C O N T E N T S
INVESTMENT OVERVIEWbull Inves tment S ummarybull Inves tment Highlights
AREA OVERVIEWbull City Overviewbull Demographics
PROPERTY OVERVIEWbull Property Des criptionbull Parcel Map
TENANT SUMMARYbull Tenant Prof iles
FINANCIALSbull As s umptionsbull Cas h Flowbull Rent Roll
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 3
Under-Market Rents Prominent Signage
Easy Ingress ampEgress
StrongParking Ratio
SignalizedIntersection
High Visibility
E
I NV E S T M E NT S UM M A R Y
OFFERING PRICE $1612000
CAP Rate (Year 1) 70
Current Occupancy 100
Total Building Area 8750 SF
Total Land Area 83 Acres
Parking Spaces 47 per 1000
Additional parking may be created by adding compact spaces and re-striping
INVESTMENT HIGHLIGHTS
bull Safeway and Walgreens shadow anchored center Safeway is the dominant market in the trade area
bull The Center is very seasoned with tenants who have a strong operating history
bull Walking distance to Chico State bull Very strong traffic count Over 56436 cars a daybull Low rents allow for future upside and stable tenancybull Good cash on cash returnbull College town retail stability
STRONG FUNDAMENTALS
bull Retail rents in the Chico metro increased by 15 year over-year as of 2019 Q3
bull Rents for retail establishments have also posted an average annual gain of 17 over the past three years
bull Vacancies in the metro were below the cycle average as of 2019Q3 and trended downwards over the past four quarters
bull Over the past five years employment has increased by 23 annually on average compared to a 17 average increase nationally
bull Over 20000 people have relocated from Paradise to Chico after last years fire in Paradise CA The influx of new residents and business has increased business across the board and has increased values for residential properties as well
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 4
A R E A OV E R V I E W
The property is s ituated in an area that benef its f rom dens e res idential and commercial development Bus ines s es in the area continue to experience an economic boom after the Camp Fire which forced thous ands of res idents of Paradis e and other towns to move out of the mountains and into Chico and other S acramento Valley communities Population growth has exceeded 20000 new res idents
CHICO IS YOUNGVIBRANT amp GROWNING
Subway is now a Pizza Restaurant by the former operator
SUBJECT PROPERTY1000 W Sacramento
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 5
CHICObull 90 miles north of Sacramentobull 174 miles northeast of San Franciscobull 8 miles from the Sacramento Riverbull 2 miles from the foothills of the Sierra Nevadabull Bidwell Park has a total of 3670 acres making it one
of the largest municipal parks in the United States
A R E A OV E R V I E W
bull Chico Californias estimated population is 94776 according to the most recent United States census estimates
bull Chico California is the 79th largest city in California based on official 2017 estimates from the US Census Bureau
bull The population density is284815peoplemisup2 (109967 peoplekmsup2)
bull The overall median age is298years 291 years for males and 307 years for females
bull For every 100 females there are 978 males
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 6
A R E A OV E R V I E W
A GREAT PLACE FOR LEARNING LIVING amp LIFESTYLE
bull California State University Chico was found in 1887 It is the 2nd oldest Cal State College
bull Student Enrollment 17488 (2018)bull Campus amp Farm = 1149 Acresbull There are 200 student Org Groupsbull 96 of the students are from Califbull Average class size is 32 bull The largest major is business administration
Businesses in the area continue to experience an economic boom after the Camp Fire which forced thousands of residents of Paradise and other towns to move out of the mountains and into Chico and other Sacramento Valley communities Population growth has exceeded 20000 new residents
CHICO CELEBRATES ECONOMIC BOOM NAMED HOTESET RESIDENTIAL MARKET IN US 33 INCREASE IN VALUE
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 7
P R OP E R T Y OV E R V I E W
SITE FRONTAGE amp ACCESS ZONINGThe University Center is located on the corner of West Sacramento Avenue and Nord Avenue just west of the Golden State Highway 99
The site benefits from being 228 feet on West Sacramento Avenue the first retail building at the entrance
Per the City of Chico the subject is currently zoned as CS ndash Commercial Services
TRAFFIC COUNTSDaily traffic at the intersection of West Sacramento and Nord Ave is approximately 43100
PARKINGThe University Center provides abundant shared approximately 47 spaces per 1000 SF parking ratio
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 8
DE M OG R A P HI C S
Sheet1
Sheet2
Sheet3
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 9
T E NA NT S UM M A R Y
PIZZAMOVE IN 512020LEASE ENDS 4302025INCREASES 25 AnnuallyOPTIONS NARENT (ANNUAL) $16800$SF (ANNUAL) $1500SQUARE FOOTAGE 1120EXPENSE PASSTHROUGH NNN
SMOKE SHOPMOVE IN Aug 2011LEASE ENDS 7312024INCREASES 2 annuallyOPTIONS NARENT (ANNUAL) $14280$SF (ANNUAL) $1020SQUARE FOOTAGE 1400EXPENSE PASSTHROUGH NNN
GEARHEAD BARBER SHOP MOVE IN 8119LEASE ENDS 73120 Tenant Req 5YR Extension INCREASES 2 annually
OPTIONS Annually for 5 years 2 increases
RENT (ANNUAL) $18000$SF (ANNUAL) $1429SQUARE FOOTAGE 1260EXPENSE PASSTHROUGH NNN
ACATACOMOVE IN Nov 2006LEASE ENDS 113024INCREASES 3 AnnuallyOPTIONS 25 3 annual increaseRENT (ANNUAL) $19668$SF (ANNUAL) $1873 SFSQUARE FOOTAGE 1050 SFEXPENSE PASSTHROUGH NNN
CHICO LAUNDRY COMOVE IN Nov 2006LEASE ENDS Month to MonthINCREASES NAOPTIONS NARENT (ANNUAL) $37464$SF (ANNUAL) $1338SQUARE FOOTAGE 2800EXPENSE PASSTHROUGH NNN
WINDY CHINESE RESTAURANTMOVE IN Nov 2006LEASE ENDS 8302021INCREASES 3 Annually
OPTIONS 15 MKT rate not more than 4 not less than prior year rent
RENT (ANNUAL) $21034$SF (ANNUAL) $1878SQUARE FOOTAGE 1120EXPENSE PASSTHROUGH NNN
I nsti tutional L evel S er vice amp E x per ti se W ith A n E ntr epr eneur ial A ppr oach
F I N A N C I A L S
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 11
AS S UM P T I ONS
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 12
C AS H F L OW
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 13
R E NT R OL L
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 14
This confidential investment brochure has been prepared solely forinformational purposes and does not constitute all or any part of an offer orcontract It is designed to assist a potential investor in determining whether toproceed with an in-depth investigation of the subject property
This investment brochure was prepared by Red Eagle Enterprises LTD IncDBA May Realty Advisors and has been reviewed by representatives of theOwner It contains select information pertaining to the sale of the SubjectProperty herein and does not purport to be all inclusive or to contain all of theinformation which prospective purchasers may desire It should be noted thatall financial projections are provided for general reference purposes only inthat they are based upon assumptions relating to the general economy andother factors beyond the control of Owner and therefore are subject tomaterial variation Additional information and an opportunity to inspect theproperty will be made available to interested and qualified prospectivepurchasers
Neither the Owner nor May Realty Advisors nor any of their respective officersor agents make any representation or warranty expressed or implied as tothe accuracy or completeness of this investment brochure or any of itscontents and no legal commitments or obligations shall arise by reason ofthis brochure or its contents
Certain documents in this investment brochure are described in summaryform The summaries do not purport to be complete nor necessarilyaccurate descriptions of the full agreements involved nor do they purport toconstitute a legal analysis of the provisions of the documents Interestedparties are expected to independently review all such documents The termsand conditions stated in this section will relate to all sections of the brochureas if stated independently therein
It is essential that all parties to real estate transactions be aware of the healthliability and economic impact of environmental factors on real estate MayRealty Advisors does not conduct investigations or analysis of environmental
matters and accordingly urges its clients to retain qualified environmentalprofessionals to determine whether hazardous or toxic wastes or substancesor other undesirable materials or conditions are present at the propertyand if so whether any health danger or other liability exists
Various federal state and local laws and regulations have been enacteddealing with the use storage handling removal transport and disposal oftoxic or hazardous wastes and substances Consequently legal counsel andtechnical experts should be consulted where these substances are or may bepresent
The Owner and May Realty Advisors expressly reserve the right at their solediscretion to reject any or all expressions of interest or offer to purchase theproperty andor to terminate discussions with any entity at any time with orwithout notice The Owner shall have no legal commitment or obligation to anyentity reviewing this investment brochure or making an offer to purchase theproperty unless and until a written commitment to purchase the property hasbeen fully executed delivered and approved by Owner and any conditions toOwnerrsquos obligations thereunder have been satisfied or waived
By receipt of this investment brochure you agree that its contents are of aconfidential nature that you hold and treat it in the strictest confidence andthat you will not disclose this brochure or any of its contents to any other entitywithout the prior written authorization of May Realty Advisors nor will you usethis brochure or any of its contents in any fashion or manner detrimental to theinterest of the Owner This brochure shall not be deemed an indication of thestate of affairs of the Owner nor constitute an indication that there has been achange in the business or affairs of Owner since the date of preparation of thisinvestment brochure For additional information please contact Matthew Mayor Richard Huelsman with May Realty Advisors at 818-528-3999 If afterreviewing this investment brochure you have no further interest in purchasingthe property kindly return it to May Realty Advisors at your earliestconvenience Photocopying and other duplication expressly prohibited
C ON F I DE N T I A L I T Y amp DI S C L A I M E R
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 15
CONTACT U S
MAY R E AL T Y ADV IS OR S15206 Ventura Blvd
S uite 302
S herman Oaks CA 91403
Phone (818) 528-3999
BRE 01206736MAT THE W MAYPres ident
Matthew mrala
8 1 8 4 7 7 08 17
BRE 0 0 9 1 24 72
R IC HAR D HUE L S MAN
Managing DirectorRichard mrala
3104633102
BRE 01956167
I nsti tuti onal L evel Ser vi ce amp E x per ti seW i th A n E ntr epr eneur i al A ppr oach
C elebr ati ng O ver 30 Y ear s of R etai l E x per ti se
22020P R E S E N T E D B Y M A Y R E A L T Y A D V I S O R S | lsaquorsaquo
- Slide Number 1
- Slide Number 2
- INVESTMENT SUMMARY
- AREA OVERVIEW
- Slide Number 5
- AREA OVERVIEW
- PROPERTY OVERVIEW
- DEMOGRAPHICS
- TENANT SUMMARY
- FINANCIALS
- ASSUMPTIONS
- CASH FLOW
- RENT ROLL
- CONFIDENTIALITY amp DISCLAIMER
- Slide Number 15
-
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 5 | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 8750 | Price per Square Foot | $18423 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
Population | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Population | 20584 | 81074 | 104274 | 119032 | 49032 | ||||||
5 Yr Growth | 31 | 34 | 38 | 38 | 32 | ||||||
Median Age | 27 | 32 | 32 | 33 | 30 | ||||||
5 Yr Forecast | 30 | 34 | 34 | 35 | 32 | ||||||
White Black Hispanic | 83 3 18 | 86 2 17 | 86 2 17 | 87 2 18 | 86 3 18 | ||||||
5 Yr Forecast | 82 4 19 | 86 2 18 | 86 2 19 | 87 2 19 | 85 3 19 | ||||||
Employment | 13053 | 45343 | 59878 | 63212 | 23141 | ||||||
Buying Power | $2025M | $14B | $20B | $24B | $7698M | ||||||
5 Yr Growth | 44 | 48 | 59 | 56 | 47 | ||||||
College Graduates | 241 | 280 | 295 | 299 | 358 | ||||||
Household | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Households | 7549 | 32627 | 41824 | 47220 | 19688 | ||||||
5 Yr Growth | 30 | 35 | 37 | 37 | 33 | ||||||
Median Household Income | $26819 | $42695 | $48237 | $51719 | $39100 | ||||||
5 Yr Forecast | $27172 | $43249 | $49267 | $52659 | $39650 | ||||||
Average Household Income | $49806 | $65437 | $70018 | $74150 | $62203 | ||||||
5 Yr Forecast | $50709 | $66898 | $71605 | $75848 | $63827 | ||||||
High Income (gt$75k) | 20 | 31 | 34 | 37 | 25 | ||||||
Housing | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Median Home Value | $322241 | $300401 | $308470 | $321616 | $316720 | ||||||
Median Year Built | 1977 | 1976 | 1981 | 1981 | 1971 | ||||||
Owner Renter Occupied | 23 77 | 42 58 | 46 54 | 49 51 | 34 66 | ||||||
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 3
Under-Market Rents Prominent Signage
Easy Ingress ampEgress
StrongParking Ratio
SignalizedIntersection
High Visibility
E
I NV E S T M E NT S UM M A R Y
OFFERING PRICE $1612000
CAP Rate (Year 1) 70
Current Occupancy 100
Total Building Area 8750 SF
Total Land Area 83 Acres
Parking Spaces 47 per 1000
Additional parking may be created by adding compact spaces and re-striping
INVESTMENT HIGHLIGHTS
bull Safeway and Walgreens shadow anchored center Safeway is the dominant market in the trade area
bull The Center is very seasoned with tenants who have a strong operating history
bull Walking distance to Chico State bull Very strong traffic count Over 56436 cars a daybull Low rents allow for future upside and stable tenancybull Good cash on cash returnbull College town retail stability
STRONG FUNDAMENTALS
bull Retail rents in the Chico metro increased by 15 year over-year as of 2019 Q3
bull Rents for retail establishments have also posted an average annual gain of 17 over the past three years
bull Vacancies in the metro were below the cycle average as of 2019Q3 and trended downwards over the past four quarters
bull Over the past five years employment has increased by 23 annually on average compared to a 17 average increase nationally
bull Over 20000 people have relocated from Paradise to Chico after last years fire in Paradise CA The influx of new residents and business has increased business across the board and has increased values for residential properties as well
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 4
A R E A OV E R V I E W
The property is s ituated in an area that benef its f rom dens e res idential and commercial development Bus ines s es in the area continue to experience an economic boom after the Camp Fire which forced thous ands of res idents of Paradis e and other towns to move out of the mountains and into Chico and other S acramento Valley communities Population growth has exceeded 20000 new res idents
CHICO IS YOUNGVIBRANT amp GROWNING
Subway is now a Pizza Restaurant by the former operator
SUBJECT PROPERTY1000 W Sacramento
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 5
CHICObull 90 miles north of Sacramentobull 174 miles northeast of San Franciscobull 8 miles from the Sacramento Riverbull 2 miles from the foothills of the Sierra Nevadabull Bidwell Park has a total of 3670 acres making it one
of the largest municipal parks in the United States
A R E A OV E R V I E W
bull Chico Californias estimated population is 94776 according to the most recent United States census estimates
bull Chico California is the 79th largest city in California based on official 2017 estimates from the US Census Bureau
bull The population density is284815peoplemisup2 (109967 peoplekmsup2)
bull The overall median age is298years 291 years for males and 307 years for females
bull For every 100 females there are 978 males
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 6
A R E A OV E R V I E W
A GREAT PLACE FOR LEARNING LIVING amp LIFESTYLE
bull California State University Chico was found in 1887 It is the 2nd oldest Cal State College
bull Student Enrollment 17488 (2018)bull Campus amp Farm = 1149 Acresbull There are 200 student Org Groupsbull 96 of the students are from Califbull Average class size is 32 bull The largest major is business administration
Businesses in the area continue to experience an economic boom after the Camp Fire which forced thousands of residents of Paradise and other towns to move out of the mountains and into Chico and other Sacramento Valley communities Population growth has exceeded 20000 new residents
CHICO CELEBRATES ECONOMIC BOOM NAMED HOTESET RESIDENTIAL MARKET IN US 33 INCREASE IN VALUE
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 7
P R OP E R T Y OV E R V I E W
SITE FRONTAGE amp ACCESS ZONINGThe University Center is located on the corner of West Sacramento Avenue and Nord Avenue just west of the Golden State Highway 99
The site benefits from being 228 feet on West Sacramento Avenue the first retail building at the entrance
Per the City of Chico the subject is currently zoned as CS ndash Commercial Services
TRAFFIC COUNTSDaily traffic at the intersection of West Sacramento and Nord Ave is approximately 43100
PARKINGThe University Center provides abundant shared approximately 47 spaces per 1000 SF parking ratio
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 8
DE M OG R A P HI C S
Sheet1
Sheet2
Sheet3
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 9
T E NA NT S UM M A R Y
PIZZAMOVE IN 512020LEASE ENDS 4302025INCREASES 25 AnnuallyOPTIONS NARENT (ANNUAL) $16800$SF (ANNUAL) $1500SQUARE FOOTAGE 1120EXPENSE PASSTHROUGH NNN
SMOKE SHOPMOVE IN Aug 2011LEASE ENDS 7312024INCREASES 2 annuallyOPTIONS NARENT (ANNUAL) $14280$SF (ANNUAL) $1020SQUARE FOOTAGE 1400EXPENSE PASSTHROUGH NNN
GEARHEAD BARBER SHOP MOVE IN 8119LEASE ENDS 73120 Tenant Req 5YR Extension INCREASES 2 annually
OPTIONS Annually for 5 years 2 increases
RENT (ANNUAL) $18000$SF (ANNUAL) $1429SQUARE FOOTAGE 1260EXPENSE PASSTHROUGH NNN
ACATACOMOVE IN Nov 2006LEASE ENDS 113024INCREASES 3 AnnuallyOPTIONS 25 3 annual increaseRENT (ANNUAL) $19668$SF (ANNUAL) $1873 SFSQUARE FOOTAGE 1050 SFEXPENSE PASSTHROUGH NNN
CHICO LAUNDRY COMOVE IN Nov 2006LEASE ENDS Month to MonthINCREASES NAOPTIONS NARENT (ANNUAL) $37464$SF (ANNUAL) $1338SQUARE FOOTAGE 2800EXPENSE PASSTHROUGH NNN
WINDY CHINESE RESTAURANTMOVE IN Nov 2006LEASE ENDS 8302021INCREASES 3 Annually
OPTIONS 15 MKT rate not more than 4 not less than prior year rent
RENT (ANNUAL) $21034$SF (ANNUAL) $1878SQUARE FOOTAGE 1120EXPENSE PASSTHROUGH NNN
I nsti tutional L evel S er vice amp E x per ti se W ith A n E ntr epr eneur ial A ppr oach
F I N A N C I A L S
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 11
AS S UM P T I ONS
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 12
C AS H F L OW
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 13
R E NT R OL L
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 14
This confidential investment brochure has been prepared solely forinformational purposes and does not constitute all or any part of an offer orcontract It is designed to assist a potential investor in determining whether toproceed with an in-depth investigation of the subject property
This investment brochure was prepared by Red Eagle Enterprises LTD IncDBA May Realty Advisors and has been reviewed by representatives of theOwner It contains select information pertaining to the sale of the SubjectProperty herein and does not purport to be all inclusive or to contain all of theinformation which prospective purchasers may desire It should be noted thatall financial projections are provided for general reference purposes only inthat they are based upon assumptions relating to the general economy andother factors beyond the control of Owner and therefore are subject tomaterial variation Additional information and an opportunity to inspect theproperty will be made available to interested and qualified prospectivepurchasers
Neither the Owner nor May Realty Advisors nor any of their respective officersor agents make any representation or warranty expressed or implied as tothe accuracy or completeness of this investment brochure or any of itscontents and no legal commitments or obligations shall arise by reason ofthis brochure or its contents
Certain documents in this investment brochure are described in summaryform The summaries do not purport to be complete nor necessarilyaccurate descriptions of the full agreements involved nor do they purport toconstitute a legal analysis of the provisions of the documents Interestedparties are expected to independently review all such documents The termsand conditions stated in this section will relate to all sections of the brochureas if stated independently therein
It is essential that all parties to real estate transactions be aware of the healthliability and economic impact of environmental factors on real estate MayRealty Advisors does not conduct investigations or analysis of environmental
matters and accordingly urges its clients to retain qualified environmentalprofessionals to determine whether hazardous or toxic wastes or substancesor other undesirable materials or conditions are present at the propertyand if so whether any health danger or other liability exists
Various federal state and local laws and regulations have been enacteddealing with the use storage handling removal transport and disposal oftoxic or hazardous wastes and substances Consequently legal counsel andtechnical experts should be consulted where these substances are or may bepresent
The Owner and May Realty Advisors expressly reserve the right at their solediscretion to reject any or all expressions of interest or offer to purchase theproperty andor to terminate discussions with any entity at any time with orwithout notice The Owner shall have no legal commitment or obligation to anyentity reviewing this investment brochure or making an offer to purchase theproperty unless and until a written commitment to purchase the property hasbeen fully executed delivered and approved by Owner and any conditions toOwnerrsquos obligations thereunder have been satisfied or waived
By receipt of this investment brochure you agree that its contents are of aconfidential nature that you hold and treat it in the strictest confidence andthat you will not disclose this brochure or any of its contents to any other entitywithout the prior written authorization of May Realty Advisors nor will you usethis brochure or any of its contents in any fashion or manner detrimental to theinterest of the Owner This brochure shall not be deemed an indication of thestate of affairs of the Owner nor constitute an indication that there has been achange in the business or affairs of Owner since the date of preparation of thisinvestment brochure For additional information please contact Matthew Mayor Richard Huelsman with May Realty Advisors at 818-528-3999 If afterreviewing this investment brochure you have no further interest in purchasingthe property kindly return it to May Realty Advisors at your earliestconvenience Photocopying and other duplication expressly prohibited
C ON F I DE N T I A L I T Y amp DI S C L A I M E R
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 15
CONTACT U S
MAY R E AL T Y ADV IS OR S15206 Ventura Blvd
S uite 302
S herman Oaks CA 91403
Phone (818) 528-3999
BRE 01206736MAT THE W MAYPres ident
Matthew mrala
8 1 8 4 7 7 08 17
BRE 0 0 9 1 24 72
R IC HAR D HUE L S MAN
Managing DirectorRichard mrala
3104633102
BRE 01956167
I nsti tuti onal L evel Ser vi ce amp E x per ti seW i th A n E ntr epr eneur i al A ppr oach
C elebr ati ng O ver 30 Y ear s of R etai l E x per ti se
22020P R E S E N T E D B Y M A Y R E A L T Y A D V I S O R S | lsaquorsaquo
- Slide Number 1
- Slide Number 2
- INVESTMENT SUMMARY
- AREA OVERVIEW
- Slide Number 5
- AREA OVERVIEW
- PROPERTY OVERVIEW
- DEMOGRAPHICS
- TENANT SUMMARY
- FINANCIALS
- ASSUMPTIONS
- CASH FLOW
- RENT ROLL
- CONFIDENTIALITY amp DISCLAIMER
- Slide Number 15
-
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 5 | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 8750 | Price per Square Foot | $18423 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
Population | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Population | 20584 | 81074 | 104274 | 119032 | 49032 | ||||||
5 Yr Growth | 31 | 34 | 38 | 38 | 32 | ||||||
Median Age | 27 | 32 | 32 | 33 | 30 | ||||||
5 Yr Forecast | 30 | 34 | 34 | 35 | 32 | ||||||
White Black Hispanic | 83 3 18 | 86 2 17 | 86 2 17 | 87 2 18 | 86 3 18 | ||||||
5 Yr Forecast | 82 4 19 | 86 2 18 | 86 2 19 | 87 2 19 | 85 3 19 | ||||||
Employment | 13053 | 45343 | 59878 | 63212 | 23141 | ||||||
Buying Power | $2025M | $14B | $20B | $24B | $7698M | ||||||
5 Yr Growth | 44 | 48 | 59 | 56 | 47 | ||||||
College Graduates | 241 | 280 | 295 | 299 | 358 | ||||||
Household | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Households | 7549 | 32627 | 41824 | 47220 | 19688 | ||||||
5 Yr Growth | 30 | 35 | 37 | 37 | 33 | ||||||
Median Household Income | $26819 | $42695 | $48237 | $51719 | $39100 | ||||||
5 Yr Forecast | $27172 | $43249 | $49267 | $52659 | $39650 | ||||||
Average Household Income | $49806 | $65437 | $70018 | $74150 | $62203 | ||||||
5 Yr Forecast | $50709 | $66898 | $71605 | $75848 | $63827 | ||||||
High Income (gt$75k) | 20 | 31 | 34 | 37 | 25 | ||||||
Housing | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Median Home Value | $322241 | $300401 | $308470 | $321616 | $316720 | ||||||
Median Year Built | 1977 | 1976 | 1981 | 1981 | 1971 | ||||||
Owner Renter Occupied | 23 77 | 42 58 | 46 54 | 49 51 | 34 66 | ||||||
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 4
A R E A OV E R V I E W
The property is s ituated in an area that benef its f rom dens e res idential and commercial development Bus ines s es in the area continue to experience an economic boom after the Camp Fire which forced thous ands of res idents of Paradis e and other towns to move out of the mountains and into Chico and other S acramento Valley communities Population growth has exceeded 20000 new res idents
CHICO IS YOUNGVIBRANT amp GROWNING
Subway is now a Pizza Restaurant by the former operator
SUBJECT PROPERTY1000 W Sacramento
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 5
CHICObull 90 miles north of Sacramentobull 174 miles northeast of San Franciscobull 8 miles from the Sacramento Riverbull 2 miles from the foothills of the Sierra Nevadabull Bidwell Park has a total of 3670 acres making it one
of the largest municipal parks in the United States
A R E A OV E R V I E W
bull Chico Californias estimated population is 94776 according to the most recent United States census estimates
bull Chico California is the 79th largest city in California based on official 2017 estimates from the US Census Bureau
bull The population density is284815peoplemisup2 (109967 peoplekmsup2)
bull The overall median age is298years 291 years for males and 307 years for females
bull For every 100 females there are 978 males
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 6
A R E A OV E R V I E W
A GREAT PLACE FOR LEARNING LIVING amp LIFESTYLE
bull California State University Chico was found in 1887 It is the 2nd oldest Cal State College
bull Student Enrollment 17488 (2018)bull Campus amp Farm = 1149 Acresbull There are 200 student Org Groupsbull 96 of the students are from Califbull Average class size is 32 bull The largest major is business administration
Businesses in the area continue to experience an economic boom after the Camp Fire which forced thousands of residents of Paradise and other towns to move out of the mountains and into Chico and other Sacramento Valley communities Population growth has exceeded 20000 new residents
CHICO CELEBRATES ECONOMIC BOOM NAMED HOTESET RESIDENTIAL MARKET IN US 33 INCREASE IN VALUE
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 7
P R OP E R T Y OV E R V I E W
SITE FRONTAGE amp ACCESS ZONINGThe University Center is located on the corner of West Sacramento Avenue and Nord Avenue just west of the Golden State Highway 99
The site benefits from being 228 feet on West Sacramento Avenue the first retail building at the entrance
Per the City of Chico the subject is currently zoned as CS ndash Commercial Services
TRAFFIC COUNTSDaily traffic at the intersection of West Sacramento and Nord Ave is approximately 43100
PARKINGThe University Center provides abundant shared approximately 47 spaces per 1000 SF parking ratio
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 8
DE M OG R A P HI C S
Sheet1
Sheet2
Sheet3
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 9
T E NA NT S UM M A R Y
PIZZAMOVE IN 512020LEASE ENDS 4302025INCREASES 25 AnnuallyOPTIONS NARENT (ANNUAL) $16800$SF (ANNUAL) $1500SQUARE FOOTAGE 1120EXPENSE PASSTHROUGH NNN
SMOKE SHOPMOVE IN Aug 2011LEASE ENDS 7312024INCREASES 2 annuallyOPTIONS NARENT (ANNUAL) $14280$SF (ANNUAL) $1020SQUARE FOOTAGE 1400EXPENSE PASSTHROUGH NNN
GEARHEAD BARBER SHOP MOVE IN 8119LEASE ENDS 73120 Tenant Req 5YR Extension INCREASES 2 annually
OPTIONS Annually for 5 years 2 increases
RENT (ANNUAL) $18000$SF (ANNUAL) $1429SQUARE FOOTAGE 1260EXPENSE PASSTHROUGH NNN
ACATACOMOVE IN Nov 2006LEASE ENDS 113024INCREASES 3 AnnuallyOPTIONS 25 3 annual increaseRENT (ANNUAL) $19668$SF (ANNUAL) $1873 SFSQUARE FOOTAGE 1050 SFEXPENSE PASSTHROUGH NNN
CHICO LAUNDRY COMOVE IN Nov 2006LEASE ENDS Month to MonthINCREASES NAOPTIONS NARENT (ANNUAL) $37464$SF (ANNUAL) $1338SQUARE FOOTAGE 2800EXPENSE PASSTHROUGH NNN
WINDY CHINESE RESTAURANTMOVE IN Nov 2006LEASE ENDS 8302021INCREASES 3 Annually
OPTIONS 15 MKT rate not more than 4 not less than prior year rent
RENT (ANNUAL) $21034$SF (ANNUAL) $1878SQUARE FOOTAGE 1120EXPENSE PASSTHROUGH NNN
I nsti tutional L evel S er vice amp E x per ti se W ith A n E ntr epr eneur ial A ppr oach
F I N A N C I A L S
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 11
AS S UM P T I ONS
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 12
C AS H F L OW
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 13
R E NT R OL L
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 14
This confidential investment brochure has been prepared solely forinformational purposes and does not constitute all or any part of an offer orcontract It is designed to assist a potential investor in determining whether toproceed with an in-depth investigation of the subject property
This investment brochure was prepared by Red Eagle Enterprises LTD IncDBA May Realty Advisors and has been reviewed by representatives of theOwner It contains select information pertaining to the sale of the SubjectProperty herein and does not purport to be all inclusive or to contain all of theinformation which prospective purchasers may desire It should be noted thatall financial projections are provided for general reference purposes only inthat they are based upon assumptions relating to the general economy andother factors beyond the control of Owner and therefore are subject tomaterial variation Additional information and an opportunity to inspect theproperty will be made available to interested and qualified prospectivepurchasers
Neither the Owner nor May Realty Advisors nor any of their respective officersor agents make any representation or warranty expressed or implied as tothe accuracy or completeness of this investment brochure or any of itscontents and no legal commitments or obligations shall arise by reason ofthis brochure or its contents
Certain documents in this investment brochure are described in summaryform The summaries do not purport to be complete nor necessarilyaccurate descriptions of the full agreements involved nor do they purport toconstitute a legal analysis of the provisions of the documents Interestedparties are expected to independently review all such documents The termsand conditions stated in this section will relate to all sections of the brochureas if stated independently therein
It is essential that all parties to real estate transactions be aware of the healthliability and economic impact of environmental factors on real estate MayRealty Advisors does not conduct investigations or analysis of environmental
matters and accordingly urges its clients to retain qualified environmentalprofessionals to determine whether hazardous or toxic wastes or substancesor other undesirable materials or conditions are present at the propertyand if so whether any health danger or other liability exists
Various federal state and local laws and regulations have been enacteddealing with the use storage handling removal transport and disposal oftoxic or hazardous wastes and substances Consequently legal counsel andtechnical experts should be consulted where these substances are or may bepresent
The Owner and May Realty Advisors expressly reserve the right at their solediscretion to reject any or all expressions of interest or offer to purchase theproperty andor to terminate discussions with any entity at any time with orwithout notice The Owner shall have no legal commitment or obligation to anyentity reviewing this investment brochure or making an offer to purchase theproperty unless and until a written commitment to purchase the property hasbeen fully executed delivered and approved by Owner and any conditions toOwnerrsquos obligations thereunder have been satisfied or waived
By receipt of this investment brochure you agree that its contents are of aconfidential nature that you hold and treat it in the strictest confidence andthat you will not disclose this brochure or any of its contents to any other entitywithout the prior written authorization of May Realty Advisors nor will you usethis brochure or any of its contents in any fashion or manner detrimental to theinterest of the Owner This brochure shall not be deemed an indication of thestate of affairs of the Owner nor constitute an indication that there has been achange in the business or affairs of Owner since the date of preparation of thisinvestment brochure For additional information please contact Matthew Mayor Richard Huelsman with May Realty Advisors at 818-528-3999 If afterreviewing this investment brochure you have no further interest in purchasingthe property kindly return it to May Realty Advisors at your earliestconvenience Photocopying and other duplication expressly prohibited
C ON F I DE N T I A L I T Y amp DI S C L A I M E R
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 15
CONTACT U S
MAY R E AL T Y ADV IS OR S15206 Ventura Blvd
S uite 302
S herman Oaks CA 91403
Phone (818) 528-3999
BRE 01206736MAT THE W MAYPres ident
Matthew mrala
8 1 8 4 7 7 08 17
BRE 0 0 9 1 24 72
R IC HAR D HUE L S MAN
Managing DirectorRichard mrala
3104633102
BRE 01956167
I nsti tuti onal L evel Ser vi ce amp E x per ti seW i th A n E ntr epr eneur i al A ppr oach
C elebr ati ng O ver 30 Y ear s of R etai l E x per ti se
22020P R E S E N T E D B Y M A Y R E A L T Y A D V I S O R S | lsaquorsaquo
- Slide Number 1
- Slide Number 2
- INVESTMENT SUMMARY
- AREA OVERVIEW
- Slide Number 5
- AREA OVERVIEW
- PROPERTY OVERVIEW
- DEMOGRAPHICS
- TENANT SUMMARY
- FINANCIALS
- ASSUMPTIONS
- CASH FLOW
- RENT ROLL
- CONFIDENTIALITY amp DISCLAIMER
- Slide Number 15
-
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 5 | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 8750 | Price per Square Foot | $18423 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
Population | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Population | 20584 | 81074 | 104274 | 119032 | 49032 | ||||||
5 Yr Growth | 31 | 34 | 38 | 38 | 32 | ||||||
Median Age | 27 | 32 | 32 | 33 | 30 | ||||||
5 Yr Forecast | 30 | 34 | 34 | 35 | 32 | ||||||
White Black Hispanic | 83 3 18 | 86 2 17 | 86 2 17 | 87 2 18 | 86 3 18 | ||||||
5 Yr Forecast | 82 4 19 | 86 2 18 | 86 2 19 | 87 2 19 | 85 3 19 | ||||||
Employment | 13053 | 45343 | 59878 | 63212 | 23141 | ||||||
Buying Power | $2025M | $14B | $20B | $24B | $7698M | ||||||
5 Yr Growth | 44 | 48 | 59 | 56 | 47 | ||||||
College Graduates | 241 | 280 | 295 | 299 | 358 | ||||||
Household | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Households | 7549 | 32627 | 41824 | 47220 | 19688 | ||||||
5 Yr Growth | 30 | 35 | 37 | 37 | 33 | ||||||
Median Household Income | $26819 | $42695 | $48237 | $51719 | $39100 | ||||||
5 Yr Forecast | $27172 | $43249 | $49267 | $52659 | $39650 | ||||||
Average Household Income | $49806 | $65437 | $70018 | $74150 | $62203 | ||||||
5 Yr Forecast | $50709 | $66898 | $71605 | $75848 | $63827 | ||||||
High Income (gt$75k) | 20 | 31 | 34 | 37 | 25 | ||||||
Housing | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Median Home Value | $322241 | $300401 | $308470 | $321616 | $316720 | ||||||
Median Year Built | 1977 | 1976 | 1981 | 1981 | 1971 | ||||||
Owner Renter Occupied | 23 77 | 42 58 | 46 54 | 49 51 | 34 66 | ||||||
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 5
CHICObull 90 miles north of Sacramentobull 174 miles northeast of San Franciscobull 8 miles from the Sacramento Riverbull 2 miles from the foothills of the Sierra Nevadabull Bidwell Park has a total of 3670 acres making it one
of the largest municipal parks in the United States
A R E A OV E R V I E W
bull Chico Californias estimated population is 94776 according to the most recent United States census estimates
bull Chico California is the 79th largest city in California based on official 2017 estimates from the US Census Bureau
bull The population density is284815peoplemisup2 (109967 peoplekmsup2)
bull The overall median age is298years 291 years for males and 307 years for females
bull For every 100 females there are 978 males
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 6
A R E A OV E R V I E W
A GREAT PLACE FOR LEARNING LIVING amp LIFESTYLE
bull California State University Chico was found in 1887 It is the 2nd oldest Cal State College
bull Student Enrollment 17488 (2018)bull Campus amp Farm = 1149 Acresbull There are 200 student Org Groupsbull 96 of the students are from Califbull Average class size is 32 bull The largest major is business administration
Businesses in the area continue to experience an economic boom after the Camp Fire which forced thousands of residents of Paradise and other towns to move out of the mountains and into Chico and other Sacramento Valley communities Population growth has exceeded 20000 new residents
CHICO CELEBRATES ECONOMIC BOOM NAMED HOTESET RESIDENTIAL MARKET IN US 33 INCREASE IN VALUE
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 7
P R OP E R T Y OV E R V I E W
SITE FRONTAGE amp ACCESS ZONINGThe University Center is located on the corner of West Sacramento Avenue and Nord Avenue just west of the Golden State Highway 99
The site benefits from being 228 feet on West Sacramento Avenue the first retail building at the entrance
Per the City of Chico the subject is currently zoned as CS ndash Commercial Services
TRAFFIC COUNTSDaily traffic at the intersection of West Sacramento and Nord Ave is approximately 43100
PARKINGThe University Center provides abundant shared approximately 47 spaces per 1000 SF parking ratio
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 8
DE M OG R A P HI C S
Sheet1
Sheet2
Sheet3
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 9
T E NA NT S UM M A R Y
PIZZAMOVE IN 512020LEASE ENDS 4302025INCREASES 25 AnnuallyOPTIONS NARENT (ANNUAL) $16800$SF (ANNUAL) $1500SQUARE FOOTAGE 1120EXPENSE PASSTHROUGH NNN
SMOKE SHOPMOVE IN Aug 2011LEASE ENDS 7312024INCREASES 2 annuallyOPTIONS NARENT (ANNUAL) $14280$SF (ANNUAL) $1020SQUARE FOOTAGE 1400EXPENSE PASSTHROUGH NNN
GEARHEAD BARBER SHOP MOVE IN 8119LEASE ENDS 73120 Tenant Req 5YR Extension INCREASES 2 annually
OPTIONS Annually for 5 years 2 increases
RENT (ANNUAL) $18000$SF (ANNUAL) $1429SQUARE FOOTAGE 1260EXPENSE PASSTHROUGH NNN
ACATACOMOVE IN Nov 2006LEASE ENDS 113024INCREASES 3 AnnuallyOPTIONS 25 3 annual increaseRENT (ANNUAL) $19668$SF (ANNUAL) $1873 SFSQUARE FOOTAGE 1050 SFEXPENSE PASSTHROUGH NNN
CHICO LAUNDRY COMOVE IN Nov 2006LEASE ENDS Month to MonthINCREASES NAOPTIONS NARENT (ANNUAL) $37464$SF (ANNUAL) $1338SQUARE FOOTAGE 2800EXPENSE PASSTHROUGH NNN
WINDY CHINESE RESTAURANTMOVE IN Nov 2006LEASE ENDS 8302021INCREASES 3 Annually
OPTIONS 15 MKT rate not more than 4 not less than prior year rent
RENT (ANNUAL) $21034$SF (ANNUAL) $1878SQUARE FOOTAGE 1120EXPENSE PASSTHROUGH NNN
I nsti tutional L evel S er vice amp E x per ti se W ith A n E ntr epr eneur ial A ppr oach
F I N A N C I A L S
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 11
AS S UM P T I ONS
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 12
C AS H F L OW
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 13
R E NT R OL L
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 14
This confidential investment brochure has been prepared solely forinformational purposes and does not constitute all or any part of an offer orcontract It is designed to assist a potential investor in determining whether toproceed with an in-depth investigation of the subject property
This investment brochure was prepared by Red Eagle Enterprises LTD IncDBA May Realty Advisors and has been reviewed by representatives of theOwner It contains select information pertaining to the sale of the SubjectProperty herein and does not purport to be all inclusive or to contain all of theinformation which prospective purchasers may desire It should be noted thatall financial projections are provided for general reference purposes only inthat they are based upon assumptions relating to the general economy andother factors beyond the control of Owner and therefore are subject tomaterial variation Additional information and an opportunity to inspect theproperty will be made available to interested and qualified prospectivepurchasers
Neither the Owner nor May Realty Advisors nor any of their respective officersor agents make any representation or warranty expressed or implied as tothe accuracy or completeness of this investment brochure or any of itscontents and no legal commitments or obligations shall arise by reason ofthis brochure or its contents
Certain documents in this investment brochure are described in summaryform The summaries do not purport to be complete nor necessarilyaccurate descriptions of the full agreements involved nor do they purport toconstitute a legal analysis of the provisions of the documents Interestedparties are expected to independently review all such documents The termsand conditions stated in this section will relate to all sections of the brochureas if stated independently therein
It is essential that all parties to real estate transactions be aware of the healthliability and economic impact of environmental factors on real estate MayRealty Advisors does not conduct investigations or analysis of environmental
matters and accordingly urges its clients to retain qualified environmentalprofessionals to determine whether hazardous or toxic wastes or substancesor other undesirable materials or conditions are present at the propertyand if so whether any health danger or other liability exists
Various federal state and local laws and regulations have been enacteddealing with the use storage handling removal transport and disposal oftoxic or hazardous wastes and substances Consequently legal counsel andtechnical experts should be consulted where these substances are or may bepresent
The Owner and May Realty Advisors expressly reserve the right at their solediscretion to reject any or all expressions of interest or offer to purchase theproperty andor to terminate discussions with any entity at any time with orwithout notice The Owner shall have no legal commitment or obligation to anyentity reviewing this investment brochure or making an offer to purchase theproperty unless and until a written commitment to purchase the property hasbeen fully executed delivered and approved by Owner and any conditions toOwnerrsquos obligations thereunder have been satisfied or waived
By receipt of this investment brochure you agree that its contents are of aconfidential nature that you hold and treat it in the strictest confidence andthat you will not disclose this brochure or any of its contents to any other entitywithout the prior written authorization of May Realty Advisors nor will you usethis brochure or any of its contents in any fashion or manner detrimental to theinterest of the Owner This brochure shall not be deemed an indication of thestate of affairs of the Owner nor constitute an indication that there has been achange in the business or affairs of Owner since the date of preparation of thisinvestment brochure For additional information please contact Matthew Mayor Richard Huelsman with May Realty Advisors at 818-528-3999 If afterreviewing this investment brochure you have no further interest in purchasingthe property kindly return it to May Realty Advisors at your earliestconvenience Photocopying and other duplication expressly prohibited
C ON F I DE N T I A L I T Y amp DI S C L A I M E R
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 15
CONTACT U S
MAY R E AL T Y ADV IS OR S15206 Ventura Blvd
S uite 302
S herman Oaks CA 91403
Phone (818) 528-3999
BRE 01206736MAT THE W MAYPres ident
Matthew mrala
8 1 8 4 7 7 08 17
BRE 0 0 9 1 24 72
R IC HAR D HUE L S MAN
Managing DirectorRichard mrala
3104633102
BRE 01956167
I nsti tuti onal L evel Ser vi ce amp E x per ti seW i th A n E ntr epr eneur i al A ppr oach
C elebr ati ng O ver 30 Y ear s of R etai l E x per ti se
22020P R E S E N T E D B Y M A Y R E A L T Y A D V I S O R S | lsaquorsaquo
- Slide Number 1
- Slide Number 2
- INVESTMENT SUMMARY
- AREA OVERVIEW
- Slide Number 5
- AREA OVERVIEW
- PROPERTY OVERVIEW
- DEMOGRAPHICS
- TENANT SUMMARY
- FINANCIALS
- ASSUMPTIONS
- CASH FLOW
- RENT ROLL
- CONFIDENTIALITY amp DISCLAIMER
- Slide Number 15
-
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 5 | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 8750 | Price per Square Foot | $18423 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
Population | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Population | 20584 | 81074 | 104274 | 119032 | 49032 | ||||||
5 Yr Growth | 31 | 34 | 38 | 38 | 32 | ||||||
Median Age | 27 | 32 | 32 | 33 | 30 | ||||||
5 Yr Forecast | 30 | 34 | 34 | 35 | 32 | ||||||
White Black Hispanic | 83 3 18 | 86 2 17 | 86 2 17 | 87 2 18 | 86 3 18 | ||||||
5 Yr Forecast | 82 4 19 | 86 2 18 | 86 2 19 | 87 2 19 | 85 3 19 | ||||||
Employment | 13053 | 45343 | 59878 | 63212 | 23141 | ||||||
Buying Power | $2025M | $14B | $20B | $24B | $7698M | ||||||
5 Yr Growth | 44 | 48 | 59 | 56 | 47 | ||||||
College Graduates | 241 | 280 | 295 | 299 | 358 | ||||||
Household | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Households | 7549 | 32627 | 41824 | 47220 | 19688 | ||||||
5 Yr Growth | 30 | 35 | 37 | 37 | 33 | ||||||
Median Household Income | $26819 | $42695 | $48237 | $51719 | $39100 | ||||||
5 Yr Forecast | $27172 | $43249 | $49267 | $52659 | $39650 | ||||||
Average Household Income | $49806 | $65437 | $70018 | $74150 | $62203 | ||||||
5 Yr Forecast | $50709 | $66898 | $71605 | $75848 | $63827 | ||||||
High Income (gt$75k) | 20 | 31 | 34 | 37 | 25 | ||||||
Housing | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Median Home Value | $322241 | $300401 | $308470 | $321616 | $316720 | ||||||
Median Year Built | 1977 | 1976 | 1981 | 1981 | 1971 | ||||||
Owner Renter Occupied | 23 77 | 42 58 | 46 54 | 49 51 | 34 66 | ||||||
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 6
A R E A OV E R V I E W
A GREAT PLACE FOR LEARNING LIVING amp LIFESTYLE
bull California State University Chico was found in 1887 It is the 2nd oldest Cal State College
bull Student Enrollment 17488 (2018)bull Campus amp Farm = 1149 Acresbull There are 200 student Org Groupsbull 96 of the students are from Califbull Average class size is 32 bull The largest major is business administration
Businesses in the area continue to experience an economic boom after the Camp Fire which forced thousands of residents of Paradise and other towns to move out of the mountains and into Chico and other Sacramento Valley communities Population growth has exceeded 20000 new residents
CHICO CELEBRATES ECONOMIC BOOM NAMED HOTESET RESIDENTIAL MARKET IN US 33 INCREASE IN VALUE
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 7
P R OP E R T Y OV E R V I E W
SITE FRONTAGE amp ACCESS ZONINGThe University Center is located on the corner of West Sacramento Avenue and Nord Avenue just west of the Golden State Highway 99
The site benefits from being 228 feet on West Sacramento Avenue the first retail building at the entrance
Per the City of Chico the subject is currently zoned as CS ndash Commercial Services
TRAFFIC COUNTSDaily traffic at the intersection of West Sacramento and Nord Ave is approximately 43100
PARKINGThe University Center provides abundant shared approximately 47 spaces per 1000 SF parking ratio
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 8
DE M OG R A P HI C S
Sheet1
Sheet2
Sheet3
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 9
T E NA NT S UM M A R Y
PIZZAMOVE IN 512020LEASE ENDS 4302025INCREASES 25 AnnuallyOPTIONS NARENT (ANNUAL) $16800$SF (ANNUAL) $1500SQUARE FOOTAGE 1120EXPENSE PASSTHROUGH NNN
SMOKE SHOPMOVE IN Aug 2011LEASE ENDS 7312024INCREASES 2 annuallyOPTIONS NARENT (ANNUAL) $14280$SF (ANNUAL) $1020SQUARE FOOTAGE 1400EXPENSE PASSTHROUGH NNN
GEARHEAD BARBER SHOP MOVE IN 8119LEASE ENDS 73120 Tenant Req 5YR Extension INCREASES 2 annually
OPTIONS Annually for 5 years 2 increases
RENT (ANNUAL) $18000$SF (ANNUAL) $1429SQUARE FOOTAGE 1260EXPENSE PASSTHROUGH NNN
ACATACOMOVE IN Nov 2006LEASE ENDS 113024INCREASES 3 AnnuallyOPTIONS 25 3 annual increaseRENT (ANNUAL) $19668$SF (ANNUAL) $1873 SFSQUARE FOOTAGE 1050 SFEXPENSE PASSTHROUGH NNN
CHICO LAUNDRY COMOVE IN Nov 2006LEASE ENDS Month to MonthINCREASES NAOPTIONS NARENT (ANNUAL) $37464$SF (ANNUAL) $1338SQUARE FOOTAGE 2800EXPENSE PASSTHROUGH NNN
WINDY CHINESE RESTAURANTMOVE IN Nov 2006LEASE ENDS 8302021INCREASES 3 Annually
OPTIONS 15 MKT rate not more than 4 not less than prior year rent
RENT (ANNUAL) $21034$SF (ANNUAL) $1878SQUARE FOOTAGE 1120EXPENSE PASSTHROUGH NNN
I nsti tutional L evel S er vice amp E x per ti se W ith A n E ntr epr eneur ial A ppr oach
F I N A N C I A L S
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 11
AS S UM P T I ONS
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 12
C AS H F L OW
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 13
R E NT R OL L
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 14
This confidential investment brochure has been prepared solely forinformational purposes and does not constitute all or any part of an offer orcontract It is designed to assist a potential investor in determining whether toproceed with an in-depth investigation of the subject property
This investment brochure was prepared by Red Eagle Enterprises LTD IncDBA May Realty Advisors and has been reviewed by representatives of theOwner It contains select information pertaining to the sale of the SubjectProperty herein and does not purport to be all inclusive or to contain all of theinformation which prospective purchasers may desire It should be noted thatall financial projections are provided for general reference purposes only inthat they are based upon assumptions relating to the general economy andother factors beyond the control of Owner and therefore are subject tomaterial variation Additional information and an opportunity to inspect theproperty will be made available to interested and qualified prospectivepurchasers
Neither the Owner nor May Realty Advisors nor any of their respective officersor agents make any representation or warranty expressed or implied as tothe accuracy or completeness of this investment brochure or any of itscontents and no legal commitments or obligations shall arise by reason ofthis brochure or its contents
Certain documents in this investment brochure are described in summaryform The summaries do not purport to be complete nor necessarilyaccurate descriptions of the full agreements involved nor do they purport toconstitute a legal analysis of the provisions of the documents Interestedparties are expected to independently review all such documents The termsand conditions stated in this section will relate to all sections of the brochureas if stated independently therein
It is essential that all parties to real estate transactions be aware of the healthliability and economic impact of environmental factors on real estate MayRealty Advisors does not conduct investigations or analysis of environmental
matters and accordingly urges its clients to retain qualified environmentalprofessionals to determine whether hazardous or toxic wastes or substancesor other undesirable materials or conditions are present at the propertyand if so whether any health danger or other liability exists
Various federal state and local laws and regulations have been enacteddealing with the use storage handling removal transport and disposal oftoxic or hazardous wastes and substances Consequently legal counsel andtechnical experts should be consulted where these substances are or may bepresent
The Owner and May Realty Advisors expressly reserve the right at their solediscretion to reject any or all expressions of interest or offer to purchase theproperty andor to terminate discussions with any entity at any time with orwithout notice The Owner shall have no legal commitment or obligation to anyentity reviewing this investment brochure or making an offer to purchase theproperty unless and until a written commitment to purchase the property hasbeen fully executed delivered and approved by Owner and any conditions toOwnerrsquos obligations thereunder have been satisfied or waived
By receipt of this investment brochure you agree that its contents are of aconfidential nature that you hold and treat it in the strictest confidence andthat you will not disclose this brochure or any of its contents to any other entitywithout the prior written authorization of May Realty Advisors nor will you usethis brochure or any of its contents in any fashion or manner detrimental to theinterest of the Owner This brochure shall not be deemed an indication of thestate of affairs of the Owner nor constitute an indication that there has been achange in the business or affairs of Owner since the date of preparation of thisinvestment brochure For additional information please contact Matthew Mayor Richard Huelsman with May Realty Advisors at 818-528-3999 If afterreviewing this investment brochure you have no further interest in purchasingthe property kindly return it to May Realty Advisors at your earliestconvenience Photocopying and other duplication expressly prohibited
C ON F I DE N T I A L I T Y amp DI S C L A I M E R
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 15
CONTACT U S
MAY R E AL T Y ADV IS OR S15206 Ventura Blvd
S uite 302
S herman Oaks CA 91403
Phone (818) 528-3999
BRE 01206736MAT THE W MAYPres ident
Matthew mrala
8 1 8 4 7 7 08 17
BRE 0 0 9 1 24 72
R IC HAR D HUE L S MAN
Managing DirectorRichard mrala
3104633102
BRE 01956167
I nsti tuti onal L evel Ser vi ce amp E x per ti seW i th A n E ntr epr eneur i al A ppr oach
C elebr ati ng O ver 30 Y ear s of R etai l E x per ti se
22020P R E S E N T E D B Y M A Y R E A L T Y A D V I S O R S | lsaquorsaquo
- Slide Number 1
- Slide Number 2
- INVESTMENT SUMMARY
- AREA OVERVIEW
- Slide Number 5
- AREA OVERVIEW
- PROPERTY OVERVIEW
- DEMOGRAPHICS
- TENANT SUMMARY
- FINANCIALS
- ASSUMPTIONS
- CASH FLOW
- RENT ROLL
- CONFIDENTIALITY amp DISCLAIMER
- Slide Number 15
-
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 5 | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 8750 | Price per Square Foot | $18423 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
Population | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Population | 20584 | 81074 | 104274 | 119032 | 49032 | ||||||
5 Yr Growth | 31 | 34 | 38 | 38 | 32 | ||||||
Median Age | 27 | 32 | 32 | 33 | 30 | ||||||
5 Yr Forecast | 30 | 34 | 34 | 35 | 32 | ||||||
White Black Hispanic | 83 3 18 | 86 2 17 | 86 2 17 | 87 2 18 | 86 3 18 | ||||||
5 Yr Forecast | 82 4 19 | 86 2 18 | 86 2 19 | 87 2 19 | 85 3 19 | ||||||
Employment | 13053 | 45343 | 59878 | 63212 | 23141 | ||||||
Buying Power | $2025M | $14B | $20B | $24B | $7698M | ||||||
5 Yr Growth | 44 | 48 | 59 | 56 | 47 | ||||||
College Graduates | 241 | 280 | 295 | 299 | 358 | ||||||
Household | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Households | 7549 | 32627 | 41824 | 47220 | 19688 | ||||||
5 Yr Growth | 30 | 35 | 37 | 37 | 33 | ||||||
Median Household Income | $26819 | $42695 | $48237 | $51719 | $39100 | ||||||
5 Yr Forecast | $27172 | $43249 | $49267 | $52659 | $39650 | ||||||
Average Household Income | $49806 | $65437 | $70018 | $74150 | $62203 | ||||||
5 Yr Forecast | $50709 | $66898 | $71605 | $75848 | $63827 | ||||||
High Income (gt$75k) | 20 | 31 | 34 | 37 | 25 | ||||||
Housing | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Median Home Value | $322241 | $300401 | $308470 | $321616 | $316720 | ||||||
Median Year Built | 1977 | 1976 | 1981 | 1981 | 1971 | ||||||
Owner Renter Occupied | 23 77 | 42 58 | 46 54 | 49 51 | 34 66 | ||||||
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 7
P R OP E R T Y OV E R V I E W
SITE FRONTAGE amp ACCESS ZONINGThe University Center is located on the corner of West Sacramento Avenue and Nord Avenue just west of the Golden State Highway 99
The site benefits from being 228 feet on West Sacramento Avenue the first retail building at the entrance
Per the City of Chico the subject is currently zoned as CS ndash Commercial Services
TRAFFIC COUNTSDaily traffic at the intersection of West Sacramento and Nord Ave is approximately 43100
PARKINGThe University Center provides abundant shared approximately 47 spaces per 1000 SF parking ratio
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 8
DE M OG R A P HI C S
Sheet1
Sheet2
Sheet3
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 9
T E NA NT S UM M A R Y
PIZZAMOVE IN 512020LEASE ENDS 4302025INCREASES 25 AnnuallyOPTIONS NARENT (ANNUAL) $16800$SF (ANNUAL) $1500SQUARE FOOTAGE 1120EXPENSE PASSTHROUGH NNN
SMOKE SHOPMOVE IN Aug 2011LEASE ENDS 7312024INCREASES 2 annuallyOPTIONS NARENT (ANNUAL) $14280$SF (ANNUAL) $1020SQUARE FOOTAGE 1400EXPENSE PASSTHROUGH NNN
GEARHEAD BARBER SHOP MOVE IN 8119LEASE ENDS 73120 Tenant Req 5YR Extension INCREASES 2 annually
OPTIONS Annually for 5 years 2 increases
RENT (ANNUAL) $18000$SF (ANNUAL) $1429SQUARE FOOTAGE 1260EXPENSE PASSTHROUGH NNN
ACATACOMOVE IN Nov 2006LEASE ENDS 113024INCREASES 3 AnnuallyOPTIONS 25 3 annual increaseRENT (ANNUAL) $19668$SF (ANNUAL) $1873 SFSQUARE FOOTAGE 1050 SFEXPENSE PASSTHROUGH NNN
CHICO LAUNDRY COMOVE IN Nov 2006LEASE ENDS Month to MonthINCREASES NAOPTIONS NARENT (ANNUAL) $37464$SF (ANNUAL) $1338SQUARE FOOTAGE 2800EXPENSE PASSTHROUGH NNN
WINDY CHINESE RESTAURANTMOVE IN Nov 2006LEASE ENDS 8302021INCREASES 3 Annually
OPTIONS 15 MKT rate not more than 4 not less than prior year rent
RENT (ANNUAL) $21034$SF (ANNUAL) $1878SQUARE FOOTAGE 1120EXPENSE PASSTHROUGH NNN
I nsti tutional L evel S er vice amp E x per ti se W ith A n E ntr epr eneur ial A ppr oach
F I N A N C I A L S
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 11
AS S UM P T I ONS
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 12
C AS H F L OW
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 13
R E NT R OL L
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 14
This confidential investment brochure has been prepared solely forinformational purposes and does not constitute all or any part of an offer orcontract It is designed to assist a potential investor in determining whether toproceed with an in-depth investigation of the subject property
This investment brochure was prepared by Red Eagle Enterprises LTD IncDBA May Realty Advisors and has been reviewed by representatives of theOwner It contains select information pertaining to the sale of the SubjectProperty herein and does not purport to be all inclusive or to contain all of theinformation which prospective purchasers may desire It should be noted thatall financial projections are provided for general reference purposes only inthat they are based upon assumptions relating to the general economy andother factors beyond the control of Owner and therefore are subject tomaterial variation Additional information and an opportunity to inspect theproperty will be made available to interested and qualified prospectivepurchasers
Neither the Owner nor May Realty Advisors nor any of their respective officersor agents make any representation or warranty expressed or implied as tothe accuracy or completeness of this investment brochure or any of itscontents and no legal commitments or obligations shall arise by reason ofthis brochure or its contents
Certain documents in this investment brochure are described in summaryform The summaries do not purport to be complete nor necessarilyaccurate descriptions of the full agreements involved nor do they purport toconstitute a legal analysis of the provisions of the documents Interestedparties are expected to independently review all such documents The termsand conditions stated in this section will relate to all sections of the brochureas if stated independently therein
It is essential that all parties to real estate transactions be aware of the healthliability and economic impact of environmental factors on real estate MayRealty Advisors does not conduct investigations or analysis of environmental
matters and accordingly urges its clients to retain qualified environmentalprofessionals to determine whether hazardous or toxic wastes or substancesor other undesirable materials or conditions are present at the propertyand if so whether any health danger or other liability exists
Various federal state and local laws and regulations have been enacteddealing with the use storage handling removal transport and disposal oftoxic or hazardous wastes and substances Consequently legal counsel andtechnical experts should be consulted where these substances are or may bepresent
The Owner and May Realty Advisors expressly reserve the right at their solediscretion to reject any or all expressions of interest or offer to purchase theproperty andor to terminate discussions with any entity at any time with orwithout notice The Owner shall have no legal commitment or obligation to anyentity reviewing this investment brochure or making an offer to purchase theproperty unless and until a written commitment to purchase the property hasbeen fully executed delivered and approved by Owner and any conditions toOwnerrsquos obligations thereunder have been satisfied or waived
By receipt of this investment brochure you agree that its contents are of aconfidential nature that you hold and treat it in the strictest confidence andthat you will not disclose this brochure or any of its contents to any other entitywithout the prior written authorization of May Realty Advisors nor will you usethis brochure or any of its contents in any fashion or manner detrimental to theinterest of the Owner This brochure shall not be deemed an indication of thestate of affairs of the Owner nor constitute an indication that there has been achange in the business or affairs of Owner since the date of preparation of thisinvestment brochure For additional information please contact Matthew Mayor Richard Huelsman with May Realty Advisors at 818-528-3999 If afterreviewing this investment brochure you have no further interest in purchasingthe property kindly return it to May Realty Advisors at your earliestconvenience Photocopying and other duplication expressly prohibited
C ON F I DE N T I A L I T Y amp DI S C L A I M E R
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 15
CONTACT U S
MAY R E AL T Y ADV IS OR S15206 Ventura Blvd
S uite 302
S herman Oaks CA 91403
Phone (818) 528-3999
BRE 01206736MAT THE W MAYPres ident
Matthew mrala
8 1 8 4 7 7 08 17
BRE 0 0 9 1 24 72
R IC HAR D HUE L S MAN
Managing DirectorRichard mrala
3104633102
BRE 01956167
I nsti tuti onal L evel Ser vi ce amp E x per ti seW i th A n E ntr epr eneur i al A ppr oach
C elebr ati ng O ver 30 Y ear s of R etai l E x per ti se
22020P R E S E N T E D B Y M A Y R E A L T Y A D V I S O R S | lsaquorsaquo
- Slide Number 1
- Slide Number 2
- INVESTMENT SUMMARY
- AREA OVERVIEW
- Slide Number 5
- AREA OVERVIEW
- PROPERTY OVERVIEW
- DEMOGRAPHICS
- TENANT SUMMARY
- FINANCIALS
- ASSUMPTIONS
- CASH FLOW
- RENT ROLL
- CONFIDENTIALITY amp DISCLAIMER
- Slide Number 15
-
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 5 | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 8750 | Price per Square Foot | $18423 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
Population | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Population | 20584 | 81074 | 104274 | 119032 | 49032 | ||||||
5 Yr Growth | 31 | 34 | 38 | 38 | 32 | ||||||
Median Age | 27 | 32 | 32 | 33 | 30 | ||||||
5 Yr Forecast | 30 | 34 | 34 | 35 | 32 | ||||||
White Black Hispanic | 83 3 18 | 86 2 17 | 86 2 17 | 87 2 18 | 86 3 18 | ||||||
5 Yr Forecast | 82 4 19 | 86 2 18 | 86 2 19 | 87 2 19 | 85 3 19 | ||||||
Employment | 13053 | 45343 | 59878 | 63212 | 23141 | ||||||
Buying Power | $2025M | $14B | $20B | $24B | $7698M | ||||||
5 Yr Growth | 44 | 48 | 59 | 56 | 47 | ||||||
College Graduates | 241 | 280 | 295 | 299 | 358 | ||||||
Household | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Households | 7549 | 32627 | 41824 | 47220 | 19688 | ||||||
5 Yr Growth | 30 | 35 | 37 | 37 | 33 | ||||||
Median Household Income | $26819 | $42695 | $48237 | $51719 | $39100 | ||||||
5 Yr Forecast | $27172 | $43249 | $49267 | $52659 | $39650 | ||||||
Average Household Income | $49806 | $65437 | $70018 | $74150 | $62203 | ||||||
5 Yr Forecast | $50709 | $66898 | $71605 | $75848 | $63827 | ||||||
High Income (gt$75k) | 20 | 31 | 34 | 37 | 25 | ||||||
Housing | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Median Home Value | $322241 | $300401 | $308470 | $321616 | $316720 | ||||||
Median Year Built | 1977 | 1976 | 1981 | 1981 | 1971 | ||||||
Owner Renter Occupied | 23 77 | 42 58 | 46 54 | 49 51 | 34 66 | ||||||
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 8
DE M OG R A P HI C S
Sheet1
Sheet2
Sheet3
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 9
T E NA NT S UM M A R Y
PIZZAMOVE IN 512020LEASE ENDS 4302025INCREASES 25 AnnuallyOPTIONS NARENT (ANNUAL) $16800$SF (ANNUAL) $1500SQUARE FOOTAGE 1120EXPENSE PASSTHROUGH NNN
SMOKE SHOPMOVE IN Aug 2011LEASE ENDS 7312024INCREASES 2 annuallyOPTIONS NARENT (ANNUAL) $14280$SF (ANNUAL) $1020SQUARE FOOTAGE 1400EXPENSE PASSTHROUGH NNN
GEARHEAD BARBER SHOP MOVE IN 8119LEASE ENDS 73120 Tenant Req 5YR Extension INCREASES 2 annually
OPTIONS Annually for 5 years 2 increases
RENT (ANNUAL) $18000$SF (ANNUAL) $1429SQUARE FOOTAGE 1260EXPENSE PASSTHROUGH NNN
ACATACOMOVE IN Nov 2006LEASE ENDS 113024INCREASES 3 AnnuallyOPTIONS 25 3 annual increaseRENT (ANNUAL) $19668$SF (ANNUAL) $1873 SFSQUARE FOOTAGE 1050 SFEXPENSE PASSTHROUGH NNN
CHICO LAUNDRY COMOVE IN Nov 2006LEASE ENDS Month to MonthINCREASES NAOPTIONS NARENT (ANNUAL) $37464$SF (ANNUAL) $1338SQUARE FOOTAGE 2800EXPENSE PASSTHROUGH NNN
WINDY CHINESE RESTAURANTMOVE IN Nov 2006LEASE ENDS 8302021INCREASES 3 Annually
OPTIONS 15 MKT rate not more than 4 not less than prior year rent
RENT (ANNUAL) $21034$SF (ANNUAL) $1878SQUARE FOOTAGE 1120EXPENSE PASSTHROUGH NNN
I nsti tutional L evel S er vice amp E x per ti se W ith A n E ntr epr eneur ial A ppr oach
F I N A N C I A L S
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 11
AS S UM P T I ONS
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 12
C AS H F L OW
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 13
R E NT R OL L
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 14
This confidential investment brochure has been prepared solely forinformational purposes and does not constitute all or any part of an offer orcontract It is designed to assist a potential investor in determining whether toproceed with an in-depth investigation of the subject property
This investment brochure was prepared by Red Eagle Enterprises LTD IncDBA May Realty Advisors and has been reviewed by representatives of theOwner It contains select information pertaining to the sale of the SubjectProperty herein and does not purport to be all inclusive or to contain all of theinformation which prospective purchasers may desire It should be noted thatall financial projections are provided for general reference purposes only inthat they are based upon assumptions relating to the general economy andother factors beyond the control of Owner and therefore are subject tomaterial variation Additional information and an opportunity to inspect theproperty will be made available to interested and qualified prospectivepurchasers
Neither the Owner nor May Realty Advisors nor any of their respective officersor agents make any representation or warranty expressed or implied as tothe accuracy or completeness of this investment brochure or any of itscontents and no legal commitments or obligations shall arise by reason ofthis brochure or its contents
Certain documents in this investment brochure are described in summaryform The summaries do not purport to be complete nor necessarilyaccurate descriptions of the full agreements involved nor do they purport toconstitute a legal analysis of the provisions of the documents Interestedparties are expected to independently review all such documents The termsand conditions stated in this section will relate to all sections of the brochureas if stated independently therein
It is essential that all parties to real estate transactions be aware of the healthliability and economic impact of environmental factors on real estate MayRealty Advisors does not conduct investigations or analysis of environmental
matters and accordingly urges its clients to retain qualified environmentalprofessionals to determine whether hazardous or toxic wastes or substancesor other undesirable materials or conditions are present at the propertyand if so whether any health danger or other liability exists
Various federal state and local laws and regulations have been enacteddealing with the use storage handling removal transport and disposal oftoxic or hazardous wastes and substances Consequently legal counsel andtechnical experts should be consulted where these substances are or may bepresent
The Owner and May Realty Advisors expressly reserve the right at their solediscretion to reject any or all expressions of interest or offer to purchase theproperty andor to terminate discussions with any entity at any time with orwithout notice The Owner shall have no legal commitment or obligation to anyentity reviewing this investment brochure or making an offer to purchase theproperty unless and until a written commitment to purchase the property hasbeen fully executed delivered and approved by Owner and any conditions toOwnerrsquos obligations thereunder have been satisfied or waived
By receipt of this investment brochure you agree that its contents are of aconfidential nature that you hold and treat it in the strictest confidence andthat you will not disclose this brochure or any of its contents to any other entitywithout the prior written authorization of May Realty Advisors nor will you usethis brochure or any of its contents in any fashion or manner detrimental to theinterest of the Owner This brochure shall not be deemed an indication of thestate of affairs of the Owner nor constitute an indication that there has been achange in the business or affairs of Owner since the date of preparation of thisinvestment brochure For additional information please contact Matthew Mayor Richard Huelsman with May Realty Advisors at 818-528-3999 If afterreviewing this investment brochure you have no further interest in purchasingthe property kindly return it to May Realty Advisors at your earliestconvenience Photocopying and other duplication expressly prohibited
C ON F I DE N T I A L I T Y amp DI S C L A I M E R
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 15
CONTACT U S
MAY R E AL T Y ADV IS OR S15206 Ventura Blvd
S uite 302
S herman Oaks CA 91403
Phone (818) 528-3999
BRE 01206736MAT THE W MAYPres ident
Matthew mrala
8 1 8 4 7 7 08 17
BRE 0 0 9 1 24 72
R IC HAR D HUE L S MAN
Managing DirectorRichard mrala
3104633102
BRE 01956167
I nsti tuti onal L evel Ser vi ce amp E x per ti seW i th A n E ntr epr eneur i al A ppr oach
C elebr ati ng O ver 30 Y ear s of R etai l E x per ti se
22020P R E S E N T E D B Y M A Y R E A L T Y A D V I S O R S | lsaquorsaquo
- Slide Number 1
- Slide Number 2
- INVESTMENT SUMMARY
- AREA OVERVIEW
- Slide Number 5
- AREA OVERVIEW
- PROPERTY OVERVIEW
- DEMOGRAPHICS
- TENANT SUMMARY
- FINANCIALS
- ASSUMPTIONS
- CASH FLOW
- RENT ROLL
- CONFIDENTIALITY amp DISCLAIMER
- Slide Number 15
-
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 5 | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 8750 | Price per Square Foot | $18423 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
Population | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Population | 20584 | 81074 | 104274 | 119032 | 49032 | ||||||
5 Yr Growth | 31 | 34 | 38 | 38 | 32 | ||||||
Median Age | 27 | 32 | 32 | 33 | 30 | ||||||
5 Yr Forecast | 30 | 34 | 34 | 35 | 32 | ||||||
White Black Hispanic | 83 3 18 | 86 2 17 | 86 2 17 | 87 2 18 | 86 3 18 | ||||||
5 Yr Forecast | 82 4 19 | 86 2 18 | 86 2 19 | 87 2 19 | 85 3 19 | ||||||
Employment | 13053 | 45343 | 59878 | 63212 | 23141 | ||||||
Buying Power | $2025M | $14B | $20B | $24B | $7698M | ||||||
5 Yr Growth | 44 | 48 | 59 | 56 | 47 | ||||||
College Graduates | 241 | 280 | 295 | 299 | 358 | ||||||
Household | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Households | 7549 | 32627 | 41824 | 47220 | 19688 | ||||||
5 Yr Growth | 30 | 35 | 37 | 37 | 33 | ||||||
Median Household Income | $26819 | $42695 | $48237 | $51719 | $39100 | ||||||
5 Yr Forecast | $27172 | $43249 | $49267 | $52659 | $39650 | ||||||
Average Household Income | $49806 | $65437 | $70018 | $74150 | $62203 | ||||||
5 Yr Forecast | $50709 | $66898 | $71605 | $75848 | $63827 | ||||||
High Income (gt$75k) | 20 | 31 | 34 | 37 | 25 | ||||||
Housing | 1 Mile | 3 Miles | 5 Miles | 10 Miles | 10 Min Drive | ||||||
Median Home Value | $322241 | $300401 | $308470 | $321616 | $316720 | ||||||
Median Year Built | 1977 | 1976 | 1981 | 1981 | 1971 | ||||||
Owner Renter Occupied | 23 77 | 42 58 | 46 54 | 49 51 | 34 66 | ||||||
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 9
T E NA NT S UM M A R Y
PIZZAMOVE IN 512020LEASE ENDS 4302025INCREASES 25 AnnuallyOPTIONS NARENT (ANNUAL) $16800$SF (ANNUAL) $1500SQUARE FOOTAGE 1120EXPENSE PASSTHROUGH NNN
SMOKE SHOPMOVE IN Aug 2011LEASE ENDS 7312024INCREASES 2 annuallyOPTIONS NARENT (ANNUAL) $14280$SF (ANNUAL) $1020SQUARE FOOTAGE 1400EXPENSE PASSTHROUGH NNN
GEARHEAD BARBER SHOP MOVE IN 8119LEASE ENDS 73120 Tenant Req 5YR Extension INCREASES 2 annually
OPTIONS Annually for 5 years 2 increases
RENT (ANNUAL) $18000$SF (ANNUAL) $1429SQUARE FOOTAGE 1260EXPENSE PASSTHROUGH NNN
ACATACOMOVE IN Nov 2006LEASE ENDS 113024INCREASES 3 AnnuallyOPTIONS 25 3 annual increaseRENT (ANNUAL) $19668$SF (ANNUAL) $1873 SFSQUARE FOOTAGE 1050 SFEXPENSE PASSTHROUGH NNN
CHICO LAUNDRY COMOVE IN Nov 2006LEASE ENDS Month to MonthINCREASES NAOPTIONS NARENT (ANNUAL) $37464$SF (ANNUAL) $1338SQUARE FOOTAGE 2800EXPENSE PASSTHROUGH NNN
WINDY CHINESE RESTAURANTMOVE IN Nov 2006LEASE ENDS 8302021INCREASES 3 Annually
OPTIONS 15 MKT rate not more than 4 not less than prior year rent
RENT (ANNUAL) $21034$SF (ANNUAL) $1878SQUARE FOOTAGE 1120EXPENSE PASSTHROUGH NNN
I nsti tutional L evel S er vice amp E x per ti se W ith A n E ntr epr eneur ial A ppr oach
F I N A N C I A L S
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 11
AS S UM P T I ONS
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 12
C AS H F L OW
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 13
R E NT R OL L
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 14
This confidential investment brochure has been prepared solely forinformational purposes and does not constitute all or any part of an offer orcontract It is designed to assist a potential investor in determining whether toproceed with an in-depth investigation of the subject property
This investment brochure was prepared by Red Eagle Enterprises LTD IncDBA May Realty Advisors and has been reviewed by representatives of theOwner It contains select information pertaining to the sale of the SubjectProperty herein and does not purport to be all inclusive or to contain all of theinformation which prospective purchasers may desire It should be noted thatall financial projections are provided for general reference purposes only inthat they are based upon assumptions relating to the general economy andother factors beyond the control of Owner and therefore are subject tomaterial variation Additional information and an opportunity to inspect theproperty will be made available to interested and qualified prospectivepurchasers
Neither the Owner nor May Realty Advisors nor any of their respective officersor agents make any representation or warranty expressed or implied as tothe accuracy or completeness of this investment brochure or any of itscontents and no legal commitments or obligations shall arise by reason ofthis brochure or its contents
Certain documents in this investment brochure are described in summaryform The summaries do not purport to be complete nor necessarilyaccurate descriptions of the full agreements involved nor do they purport toconstitute a legal analysis of the provisions of the documents Interestedparties are expected to independently review all such documents The termsand conditions stated in this section will relate to all sections of the brochureas if stated independently therein
It is essential that all parties to real estate transactions be aware of the healthliability and economic impact of environmental factors on real estate MayRealty Advisors does not conduct investigations or analysis of environmental
matters and accordingly urges its clients to retain qualified environmentalprofessionals to determine whether hazardous or toxic wastes or substancesor other undesirable materials or conditions are present at the propertyand if so whether any health danger or other liability exists
Various federal state and local laws and regulations have been enacteddealing with the use storage handling removal transport and disposal oftoxic or hazardous wastes and substances Consequently legal counsel andtechnical experts should be consulted where these substances are or may bepresent
The Owner and May Realty Advisors expressly reserve the right at their solediscretion to reject any or all expressions of interest or offer to purchase theproperty andor to terminate discussions with any entity at any time with orwithout notice The Owner shall have no legal commitment or obligation to anyentity reviewing this investment brochure or making an offer to purchase theproperty unless and until a written commitment to purchase the property hasbeen fully executed delivered and approved by Owner and any conditions toOwnerrsquos obligations thereunder have been satisfied or waived
By receipt of this investment brochure you agree that its contents are of aconfidential nature that you hold and treat it in the strictest confidence andthat you will not disclose this brochure or any of its contents to any other entitywithout the prior written authorization of May Realty Advisors nor will you usethis brochure or any of its contents in any fashion or manner detrimental to theinterest of the Owner This brochure shall not be deemed an indication of thestate of affairs of the Owner nor constitute an indication that there has been achange in the business or affairs of Owner since the date of preparation of thisinvestment brochure For additional information please contact Matthew Mayor Richard Huelsman with May Realty Advisors at 818-528-3999 If afterreviewing this investment brochure you have no further interest in purchasingthe property kindly return it to May Realty Advisors at your earliestconvenience Photocopying and other duplication expressly prohibited
C ON F I DE N T I A L I T Y amp DI S C L A I M E R
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 15
CONTACT U S
MAY R E AL T Y ADV IS OR S15206 Ventura Blvd
S uite 302
S herman Oaks CA 91403
Phone (818) 528-3999
BRE 01206736MAT THE W MAYPres ident
Matthew mrala
8 1 8 4 7 7 08 17
BRE 0 0 9 1 24 72
R IC HAR D HUE L S MAN
Managing DirectorRichard mrala
3104633102
BRE 01956167
I nsti tuti onal L evel Ser vi ce amp E x per ti seW i th A n E ntr epr eneur i al A ppr oach
C elebr ati ng O ver 30 Y ear s of R etai l E x per ti se
22020P R E S E N T E D B Y M A Y R E A L T Y A D V I S O R S | lsaquorsaquo
- Slide Number 1
- Slide Number 2
- INVESTMENT SUMMARY
- AREA OVERVIEW
- Slide Number 5
- AREA OVERVIEW
- PROPERTY OVERVIEW
- DEMOGRAPHICS
- TENANT SUMMARY
- FINANCIALS
- ASSUMPTIONS
- CASH FLOW
- RENT ROLL
- CONFIDENTIALITY amp DISCLAIMER
- Slide Number 15
-
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 5 | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 8750 | Price per Square Foot | $18423 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
I nsti tutional L evel S er vice amp E x per ti se W ith A n E ntr epr eneur ial A ppr oach
F I N A N C I A L S
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 11
AS S UM P T I ONS
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 12
C AS H F L OW
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 13
R E NT R OL L
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 14
This confidential investment brochure has been prepared solely forinformational purposes and does not constitute all or any part of an offer orcontract It is designed to assist a potential investor in determining whether toproceed with an in-depth investigation of the subject property
This investment brochure was prepared by Red Eagle Enterprises LTD IncDBA May Realty Advisors and has been reviewed by representatives of theOwner It contains select information pertaining to the sale of the SubjectProperty herein and does not purport to be all inclusive or to contain all of theinformation which prospective purchasers may desire It should be noted thatall financial projections are provided for general reference purposes only inthat they are based upon assumptions relating to the general economy andother factors beyond the control of Owner and therefore are subject tomaterial variation Additional information and an opportunity to inspect theproperty will be made available to interested and qualified prospectivepurchasers
Neither the Owner nor May Realty Advisors nor any of their respective officersor agents make any representation or warranty expressed or implied as tothe accuracy or completeness of this investment brochure or any of itscontents and no legal commitments or obligations shall arise by reason ofthis brochure or its contents
Certain documents in this investment brochure are described in summaryform The summaries do not purport to be complete nor necessarilyaccurate descriptions of the full agreements involved nor do they purport toconstitute a legal analysis of the provisions of the documents Interestedparties are expected to independently review all such documents The termsand conditions stated in this section will relate to all sections of the brochureas if stated independently therein
It is essential that all parties to real estate transactions be aware of the healthliability and economic impact of environmental factors on real estate MayRealty Advisors does not conduct investigations or analysis of environmental
matters and accordingly urges its clients to retain qualified environmentalprofessionals to determine whether hazardous or toxic wastes or substancesor other undesirable materials or conditions are present at the propertyand if so whether any health danger or other liability exists
Various federal state and local laws and regulations have been enacteddealing with the use storage handling removal transport and disposal oftoxic or hazardous wastes and substances Consequently legal counsel andtechnical experts should be consulted where these substances are or may bepresent
The Owner and May Realty Advisors expressly reserve the right at their solediscretion to reject any or all expressions of interest or offer to purchase theproperty andor to terminate discussions with any entity at any time with orwithout notice The Owner shall have no legal commitment or obligation to anyentity reviewing this investment brochure or making an offer to purchase theproperty unless and until a written commitment to purchase the property hasbeen fully executed delivered and approved by Owner and any conditions toOwnerrsquos obligations thereunder have been satisfied or waived
By receipt of this investment brochure you agree that its contents are of aconfidential nature that you hold and treat it in the strictest confidence andthat you will not disclose this brochure or any of its contents to any other entitywithout the prior written authorization of May Realty Advisors nor will you usethis brochure or any of its contents in any fashion or manner detrimental to theinterest of the Owner This brochure shall not be deemed an indication of thestate of affairs of the Owner nor constitute an indication that there has been achange in the business or affairs of Owner since the date of preparation of thisinvestment brochure For additional information please contact Matthew Mayor Richard Huelsman with May Realty Advisors at 818-528-3999 If afterreviewing this investment brochure you have no further interest in purchasingthe property kindly return it to May Realty Advisors at your earliestconvenience Photocopying and other duplication expressly prohibited
C ON F I DE N T I A L I T Y amp DI S C L A I M E R
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 15
CONTACT U S
MAY R E AL T Y ADV IS OR S15206 Ventura Blvd
S uite 302
S herman Oaks CA 91403
Phone (818) 528-3999
BRE 01206736MAT THE W MAYPres ident
Matthew mrala
8 1 8 4 7 7 08 17
BRE 0 0 9 1 24 72
R IC HAR D HUE L S MAN
Managing DirectorRichard mrala
3104633102
BRE 01956167
I nsti tuti onal L evel Ser vi ce amp E x per ti seW i th A n E ntr epr eneur i al A ppr oach
C elebr ati ng O ver 30 Y ear s of R etai l E x per ti se
22020P R E S E N T E D B Y M A Y R E A L T Y A D V I S O R S | lsaquorsaquo
- Slide Number 1
- Slide Number 2
- INVESTMENT SUMMARY
- AREA OVERVIEW
- Slide Number 5
- AREA OVERVIEW
- PROPERTY OVERVIEW
- DEMOGRAPHICS
- TENANT SUMMARY
- FINANCIALS
- ASSUMPTIONS
- CASH FLOW
- RENT ROLL
- CONFIDENTIALITY amp DISCLAIMER
- Slide Number 15
-
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 5 | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 8750 | Price per Square Foot | $18423 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 11
AS S UM P T I ONS
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 12
C AS H F L OW
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 13
R E NT R OL L
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 14
This confidential investment brochure has been prepared solely forinformational purposes and does not constitute all or any part of an offer orcontract It is designed to assist a potential investor in determining whether toproceed with an in-depth investigation of the subject property
This investment brochure was prepared by Red Eagle Enterprises LTD IncDBA May Realty Advisors and has been reviewed by representatives of theOwner It contains select information pertaining to the sale of the SubjectProperty herein and does not purport to be all inclusive or to contain all of theinformation which prospective purchasers may desire It should be noted thatall financial projections are provided for general reference purposes only inthat they are based upon assumptions relating to the general economy andother factors beyond the control of Owner and therefore are subject tomaterial variation Additional information and an opportunity to inspect theproperty will be made available to interested and qualified prospectivepurchasers
Neither the Owner nor May Realty Advisors nor any of their respective officersor agents make any representation or warranty expressed or implied as tothe accuracy or completeness of this investment brochure or any of itscontents and no legal commitments or obligations shall arise by reason ofthis brochure or its contents
Certain documents in this investment brochure are described in summaryform The summaries do not purport to be complete nor necessarilyaccurate descriptions of the full agreements involved nor do they purport toconstitute a legal analysis of the provisions of the documents Interestedparties are expected to independently review all such documents The termsand conditions stated in this section will relate to all sections of the brochureas if stated independently therein
It is essential that all parties to real estate transactions be aware of the healthliability and economic impact of environmental factors on real estate MayRealty Advisors does not conduct investigations or analysis of environmental
matters and accordingly urges its clients to retain qualified environmentalprofessionals to determine whether hazardous or toxic wastes or substancesor other undesirable materials or conditions are present at the propertyand if so whether any health danger or other liability exists
Various federal state and local laws and regulations have been enacteddealing with the use storage handling removal transport and disposal oftoxic or hazardous wastes and substances Consequently legal counsel andtechnical experts should be consulted where these substances are or may bepresent
The Owner and May Realty Advisors expressly reserve the right at their solediscretion to reject any or all expressions of interest or offer to purchase theproperty andor to terminate discussions with any entity at any time with orwithout notice The Owner shall have no legal commitment or obligation to anyentity reviewing this investment brochure or making an offer to purchase theproperty unless and until a written commitment to purchase the property hasbeen fully executed delivered and approved by Owner and any conditions toOwnerrsquos obligations thereunder have been satisfied or waived
By receipt of this investment brochure you agree that its contents are of aconfidential nature that you hold and treat it in the strictest confidence andthat you will not disclose this brochure or any of its contents to any other entitywithout the prior written authorization of May Realty Advisors nor will you usethis brochure or any of its contents in any fashion or manner detrimental to theinterest of the Owner This brochure shall not be deemed an indication of thestate of affairs of the Owner nor constitute an indication that there has been achange in the business or affairs of Owner since the date of preparation of thisinvestment brochure For additional information please contact Matthew Mayor Richard Huelsman with May Realty Advisors at 818-528-3999 If afterreviewing this investment brochure you have no further interest in purchasingthe property kindly return it to May Realty Advisors at your earliestconvenience Photocopying and other duplication expressly prohibited
C ON F I DE N T I A L I T Y amp DI S C L A I M E R
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 15
CONTACT U S
MAY R E AL T Y ADV IS OR S15206 Ventura Blvd
S uite 302
S herman Oaks CA 91403
Phone (818) 528-3999
BRE 01206736MAT THE W MAYPres ident
Matthew mrala
8 1 8 4 7 7 08 17
BRE 0 0 9 1 24 72
R IC HAR D HUE L S MAN
Managing DirectorRichard mrala
3104633102
BRE 01956167
I nsti tuti onal L evel Ser vi ce amp E x per ti seW i th A n E ntr epr eneur i al A ppr oach
C elebr ati ng O ver 30 Y ear s of R etai l E x per ti se
22020P R E S E N T E D B Y M A Y R E A L T Y A D V I S O R S | lsaquorsaquo
- Slide Number 1
- Slide Number 2
- INVESTMENT SUMMARY
- AREA OVERVIEW
- Slide Number 5
- AREA OVERVIEW
- PROPERTY OVERVIEW
- DEMOGRAPHICS
- TENANT SUMMARY
- FINANCIALS
- ASSUMPTIONS
- CASH FLOW
- RENT ROLL
- CONFIDENTIALITY amp DISCLAIMER
- Slide Number 15
-
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 5 | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 8750 | Price per Square Foot | $18423 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 12
C AS H F L OW
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 13
R E NT R OL L
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 14
This confidential investment brochure has been prepared solely forinformational purposes and does not constitute all or any part of an offer orcontract It is designed to assist a potential investor in determining whether toproceed with an in-depth investigation of the subject property
This investment brochure was prepared by Red Eagle Enterprises LTD IncDBA May Realty Advisors and has been reviewed by representatives of theOwner It contains select information pertaining to the sale of the SubjectProperty herein and does not purport to be all inclusive or to contain all of theinformation which prospective purchasers may desire It should be noted thatall financial projections are provided for general reference purposes only inthat they are based upon assumptions relating to the general economy andother factors beyond the control of Owner and therefore are subject tomaterial variation Additional information and an opportunity to inspect theproperty will be made available to interested and qualified prospectivepurchasers
Neither the Owner nor May Realty Advisors nor any of their respective officersor agents make any representation or warranty expressed or implied as tothe accuracy or completeness of this investment brochure or any of itscontents and no legal commitments or obligations shall arise by reason ofthis brochure or its contents
Certain documents in this investment brochure are described in summaryform The summaries do not purport to be complete nor necessarilyaccurate descriptions of the full agreements involved nor do they purport toconstitute a legal analysis of the provisions of the documents Interestedparties are expected to independently review all such documents The termsand conditions stated in this section will relate to all sections of the brochureas if stated independently therein
It is essential that all parties to real estate transactions be aware of the healthliability and economic impact of environmental factors on real estate MayRealty Advisors does not conduct investigations or analysis of environmental
matters and accordingly urges its clients to retain qualified environmentalprofessionals to determine whether hazardous or toxic wastes or substancesor other undesirable materials or conditions are present at the propertyand if so whether any health danger or other liability exists
Various federal state and local laws and regulations have been enacteddealing with the use storage handling removal transport and disposal oftoxic or hazardous wastes and substances Consequently legal counsel andtechnical experts should be consulted where these substances are or may bepresent
The Owner and May Realty Advisors expressly reserve the right at their solediscretion to reject any or all expressions of interest or offer to purchase theproperty andor to terminate discussions with any entity at any time with orwithout notice The Owner shall have no legal commitment or obligation to anyentity reviewing this investment brochure or making an offer to purchase theproperty unless and until a written commitment to purchase the property hasbeen fully executed delivered and approved by Owner and any conditions toOwnerrsquos obligations thereunder have been satisfied or waived
By receipt of this investment brochure you agree that its contents are of aconfidential nature that you hold and treat it in the strictest confidence andthat you will not disclose this brochure or any of its contents to any other entitywithout the prior written authorization of May Realty Advisors nor will you usethis brochure or any of its contents in any fashion or manner detrimental to theinterest of the Owner This brochure shall not be deemed an indication of thestate of affairs of the Owner nor constitute an indication that there has been achange in the business or affairs of Owner since the date of preparation of thisinvestment brochure For additional information please contact Matthew Mayor Richard Huelsman with May Realty Advisors at 818-528-3999 If afterreviewing this investment brochure you have no further interest in purchasingthe property kindly return it to May Realty Advisors at your earliestconvenience Photocopying and other duplication expressly prohibited
C ON F I DE N T I A L I T Y amp DI S C L A I M E R
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 15
CONTACT U S
MAY R E AL T Y ADV IS OR S15206 Ventura Blvd
S uite 302
S herman Oaks CA 91403
Phone (818) 528-3999
BRE 01206736MAT THE W MAYPres ident
Matthew mrala
8 1 8 4 7 7 08 17
BRE 0 0 9 1 24 72
R IC HAR D HUE L S MAN
Managing DirectorRichard mrala
3104633102
BRE 01956167
I nsti tuti onal L evel Ser vi ce amp E x per ti seW i th A n E ntr epr eneur i al A ppr oach
C elebr ati ng O ver 30 Y ear s of R etai l E x per ti se
22020P R E S E N T E D B Y M A Y R E A L T Y A D V I S O R S | lsaquorsaquo
- Slide Number 1
- Slide Number 2
- INVESTMENT SUMMARY
- AREA OVERVIEW
- Slide Number 5
- AREA OVERVIEW
- PROPERTY OVERVIEW
- DEMOGRAPHICS
- TENANT SUMMARY
- FINANCIALS
- ASSUMPTIONS
- CASH FLOW
- RENT ROLL
- CONFIDENTIALITY amp DISCLAIMER
- Slide Number 15
-
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 5 | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 13
R E NT R OL L
A - Assumptions
A - NOI
A - Rent Roll
A - RESALE FINANCING
B1 - RESALE FINANCING
B2 - RESALE FINANCING
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 14
This confidential investment brochure has been prepared solely forinformational purposes and does not constitute all or any part of an offer orcontract It is designed to assist a potential investor in determining whether toproceed with an in-depth investigation of the subject property
This investment brochure was prepared by Red Eagle Enterprises LTD IncDBA May Realty Advisors and has been reviewed by representatives of theOwner It contains select information pertaining to the sale of the SubjectProperty herein and does not purport to be all inclusive or to contain all of theinformation which prospective purchasers may desire It should be noted thatall financial projections are provided for general reference purposes only inthat they are based upon assumptions relating to the general economy andother factors beyond the control of Owner and therefore are subject tomaterial variation Additional information and an opportunity to inspect theproperty will be made available to interested and qualified prospectivepurchasers
Neither the Owner nor May Realty Advisors nor any of their respective officersor agents make any representation or warranty expressed or implied as tothe accuracy or completeness of this investment brochure or any of itscontents and no legal commitments or obligations shall arise by reason ofthis brochure or its contents
Certain documents in this investment brochure are described in summaryform The summaries do not purport to be complete nor necessarilyaccurate descriptions of the full agreements involved nor do they purport toconstitute a legal analysis of the provisions of the documents Interestedparties are expected to independently review all such documents The termsand conditions stated in this section will relate to all sections of the brochureas if stated independently therein
It is essential that all parties to real estate transactions be aware of the healthliability and economic impact of environmental factors on real estate MayRealty Advisors does not conduct investigations or analysis of environmental
matters and accordingly urges its clients to retain qualified environmentalprofessionals to determine whether hazardous or toxic wastes or substancesor other undesirable materials or conditions are present at the propertyand if so whether any health danger or other liability exists
Various federal state and local laws and regulations have been enacteddealing with the use storage handling removal transport and disposal oftoxic or hazardous wastes and substances Consequently legal counsel andtechnical experts should be consulted where these substances are or may bepresent
The Owner and May Realty Advisors expressly reserve the right at their solediscretion to reject any or all expressions of interest or offer to purchase theproperty andor to terminate discussions with any entity at any time with orwithout notice The Owner shall have no legal commitment or obligation to anyentity reviewing this investment brochure or making an offer to purchase theproperty unless and until a written commitment to purchase the property hasbeen fully executed delivered and approved by Owner and any conditions toOwnerrsquos obligations thereunder have been satisfied or waived
By receipt of this investment brochure you agree that its contents are of aconfidential nature that you hold and treat it in the strictest confidence andthat you will not disclose this brochure or any of its contents to any other entitywithout the prior written authorization of May Realty Advisors nor will you usethis brochure or any of its contents in any fashion or manner detrimental to theinterest of the Owner This brochure shall not be deemed an indication of thestate of affairs of the Owner nor constitute an indication that there has been achange in the business or affairs of Owner since the date of preparation of thisinvestment brochure For additional information please contact Matthew Mayor Richard Huelsman with May Realty Advisors at 818-528-3999 If afterreviewing this investment brochure you have no further interest in purchasingthe property kindly return it to May Realty Advisors at your earliestconvenience Photocopying and other duplication expressly prohibited
C ON F I DE N T I A L I T Y amp DI S C L A I M E R
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 15
CONTACT U S
MAY R E AL T Y ADV IS OR S15206 Ventura Blvd
S uite 302
S herman Oaks CA 91403
Phone (818) 528-3999
BRE 01206736MAT THE W MAYPres ident
Matthew mrala
8 1 8 4 7 7 08 17
BRE 0 0 9 1 24 72
R IC HAR D HUE L S MAN
Managing DirectorRichard mrala
3104633102
BRE 01956167
I nsti tuti onal L evel Ser vi ce amp E x per ti seW i th A n E ntr epr eneur i al A ppr oach
C elebr ati ng O ver 30 Y ear s of R etai l E x per ti se
22020P R E S E N T E D B Y M A Y R E A L T Y A D V I S O R S | lsaquorsaquo
- Slide Number 1
- Slide Number 2
- INVESTMENT SUMMARY
- AREA OVERVIEW
- Slide Number 5
- AREA OVERVIEW
- PROPERTY OVERVIEW
- DEMOGRAPHICS
- TENANT SUMMARY
- FINANCIALS
- ASSUMPTIONS
- CASH FLOW
- RENT ROLL
- CONFIDENTIALITY amp DISCLAIMER
- Slide Number 15
-
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B2 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (5423800) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7082200 | ||||||||||||
CASH FLOW BEFORE DEBT | (5423800) | 298306 | 307283 | 316528 | 326053 | 335864 | 345968 | 356378 | 367100 | 378143 | 7460343 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 3525470 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3525470) | ||||||||||||
Loan Fees | (35255) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | (208118) | ||||||||||||
CASH FLOW AFTER DEBT | (1933585) | 90188 | 99165 | 108410 | 117935 | 127746 | 137850 | 148260 | 158982 | 170025 | 3726755 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2084473 | 2315175 | 2553702 | 2800282 | 3055345 | 3319031 | 3591784 | 3873753 | 4165396 | 4467075 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 433 | 428 | 425 | 421 | 418 | 415 | 413 | 410 | 408 | 406 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 466 | 513 | 561 | 610 | 661 | 713 | 767 | 822 | 879 | 938 | |||||||||||||
Rolling Internal Rate of Return | 353 | 657 | 826 | 928 | 992 | 1035 | 1063 | 1081 | 1094 | 1101 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 55 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 870570 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
19532587 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building B1 | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (4187400) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5467600 | ||||||||||||
CASH FLOW BEFORE DEBT | (4187400) | 240777 | 248022 | 255483 | 263170 | 271087 | 279241 | 287643 | 296295 | 305209 | 5772809 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 2721810 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (2721810) | ||||||||||||
Loan Fees | (27218) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | (160676) | ||||||||||||
CASH FLOW AFTER DEBT | (1492808) | 80101 | 87346 | 94807 | 102494 | 110411 | 118565 | 126967 | 135619 | 144533 | 2890323 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 1609300 | 1787414 | 1971587 | 2162016 | 2358904 | 2562456 | 2772985 | 2990706 | 3215841 | 3448614 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 498 | 489 | 481 | 474 | 468 | 463 | 458 | 453 | 449 | 446 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 537 | 585 | 635 | 687 | 740 | 794 | 851 | 908 | 968 | 1030 | |||||||||||||
Rolling Internal Rate of Return | 425 | 726 | 893 | 993 | 1056 | 1096 | 1123 | 1140 | 1151 | 1158 | |||||||||||||
NOTES | |||||||||||||||||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 575 CAP Rate | |||||||||||||||||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||||||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 862533 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
16983153 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
CASH FLOW (CONTINUED) | |||||||||||||||||||||||
Building A | |||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
ACCUSITION amp RESIDUAL SALE | |||||||||||||||||||||||
Purchase Price (Based on Capitalization Rate of 600) | (1612000) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Net Residual Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8795300 | ||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 385008 | 403057 | 406011 | 409042 | 412152 | 432184 | 451408 | 454768 | 458215 | 9253515 | ||||||||||||
FINANCING | |||||||||||||||||||||||
Loan Funding Payoff | 4766775 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (4766775) | ||||||||||||
Loan Fees | (47668) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Annual Debt Service | 0 | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | (281396) | ||||||||||||
CASH FLOW AFTER DEBT | 3107107 | 103612 | 121661 | 124615 | 127646 | 130756 | 150788 | 170012 | 173372 | 176819 | 4205344 | ||||||||||||
EQUITY (ignoring Costs of Sale) | 2818408 | 3253477 | 3404902 | 3562053 | 3724909 | 4214658 | 4693594 | 4875320 | 5063848 | 5259399 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 368 | 374 | 366 | 358 | 351 | 358 | 362 | 356 | 349 | 343 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 396 | 465 | 477 | 488 | 500 | 577 | 650 | 663 | 676 | 690 | |||||||||||||
Rolling Internal Rate of Return | 266 | 681 | 725 | 751 | 769 | 879 | 949 | 936 | 925 | 916 | |||||||||||||
INAM | |||||||||||||||||||||||
REFERENCE ONLY BELOW THIS ROW | |||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | 882983 | |||||||||||||||||||||
Net Residual Value | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
Capitalization Rate | 600 | 607 | 620 | 649 | 662 | 724 | 737 | 754 | 791 | 805 | |||||||||||||
- Debt Service First Mortgage | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cash on Cash Return (CFBTInitial investment) | 607 | 630 | 665 | 750 | 788 | 963 | 1000 | 1051 | 1156 | 1197 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Cumulative Cash Flow After Utilizing Reserves | 50676 | 103274 | 158854 | 221513 | 287298 | 367707 | 451197 | 538971 | 635574 | 735541 | |||||||||||||
See Notes and Disclaimers under Analysis of Resale | |||||||||||||||||||||||
Ontario | ANALYSIS OF RESALE | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
PROJECTED SELLING PRICE REAL ESTATE | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
Selling Price Based on Capitalization Rate of 600 | |||||||||||||||||||||||
PROJECTED SELLING PRICE Personal Property | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
PROJECTED SELLING PRICE incl pers property | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- First Mortgage Payoff EOY | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
22982636 | |||||||||||||||||||||||
NOTES | |||||||||||||||||||||||
1) If this analysis includes a partial first year then the IRR MIRR and PV calculations use estimated full year amounts for cash flow and NOI | |||||||||||||||||||||||
2) If the projected selling price for any year(s) above displays see note 2 then the value shown for those years has been entered directly | |||||||||||||||||||||||
by the user of this software overriding the value that was calculated by the software | |||||||||||||||||||||||
3) The Analysis of Taxable Income or Loss and the Analysis of Operating Cash Flows make no presumption as to intended year of sale | |||||||||||||||||||||||
Therefore adjustments for the half-month convention in regard to depreciation in the year of sale are accounted for within the | |||||||||||||||||||||||
Analysis of Resale | |||||||||||||||||||||||
DISCLAIMERS | |||||||||||||||||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the | |||||||||||||||||||||||
purposes of pro forma projection and analysis and should not be used for preparation of income tax returns You are advised that any Federal | |||||||||||||||||||||||
tax calculations displayed in these reports are necessarily estimates only They are based upon interpretations of various tax acts and | |||||||||||||||||||||||
revisions since 1986 and are subject to further clarifications interpretations rulings regulations and technical corrections These tax | |||||||||||||||||||||||
calculations are also based upon certain assumptions as entered into the software by the user about the property and about the taxpayerrsquos | |||||||||||||||||||||||
adjusted gross income tax brackets and like matters The actual tax liability that this property may create may be altered substantially | |||||||||||||||||||||||
from the estimates displayed herein by other factors which are outside the scope of this analysis and external to this property and which | |||||||||||||||||||||||
may also differ from taxpayer to taxpayer Such factors may include but are not limited to the Alternative Minimum Tax and investment | |||||||||||||||||||||||
interest limitations In particular for the years 2013 and following the actual tax liability is likely to be affected by items such as | |||||||||||||||||||||||
the taxpayerrsquos total taxable income the taxpayerrsquos net investment income from all sources including those external to the property | |||||||||||||||||||||||
analyzed here and the extent to which those items exceed certain thresholds which are themselves subject to change | |||||||||||||||||||||||
The user of this program and recipients of its reports should consult a tax specialist concerning hisher particular circumstances before making | |||||||||||||||||||||||
any investment decision | |||||||||||||||||||||||
Ontario | SUMMARY CASH FLOW AND RESALE ANALYSIS | ||||||||||||||||||||||
Purchase Price | 2343100 | ||||||||||||||||||||||
Cash Investment | 835315 | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
GROSS INCOME | 195270 | 198608 | 203044 | 211617 | 216275 | 232474 | 237172 | 243117 | 253649 | 258766 | |||||||||||||
- Vacancy amp Credit Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Operating Expenses | 54686 | 56102 | 57556 | 59049 | 60583 | 62157 | 63774 | 65434 | 67139 | 68890 | |||||||||||||
NET OPERATING INCOME | 140584 | 142506 | 145488 | 152567 | 155692 | 170317 | 173398 | 177683 | 186510 | 189875 | |||||||||||||
- Debt Service All Mortgages | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | 89908 | |||||||||||||
+ Proceeds of Mortgages Less Points | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
- Capital Expenditures and Funded Reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
CASH FLOW BEFORE TAXES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
Reserves Utilized | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Reserves Remaining | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
NET CASH FLOW AFTER UTILIZING RESERVES | 50676 | 52598 | 55580 | 62659 | 65785 | 80409 | 83490 | 87775 | 96602 | 99967 | |||||||||||||
PROJECTED SELLING PRICE incl personal prop | 2343100 | 2375100 | 2424800 | 2542800 | 2594900 | 2838600 | 2890000 | 2961400 | 3108500 | 3164600 | |||||||||||||
- Costs of Sale | 82009 | 83129 | 84868 | 88998 | 90822 | 99351 | 101150 | 103649 | 108798 | 110761 | |||||||||||||
- Mortgage Payoffs | 1497339 | 1470550 | 1442600 | 1413440 | 1383015 | 1351271 | 1318152 | 1283598 | 1247546 | 1209932 | |||||||||||||
+ Balance of Reserve Fund | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
BEFORE-TAX SALE PROCEEDS | 763753 | 821421 | 897332 | 1040363 | 1121064 | 1387978 | 1470698 | 1574153 | 1752156 | 1843907 | |||||||||||||
Internal Rate of Return Before Tax | -250 | 537 | 860 | 1172 | 1214 | 1470 | 1436 | 1422 | 1451 | 1422 | |||||||||||||
Modified Internal Rate of Return Before Tax | -250 | 536 | 840 | 1122 | 1145 | 1364 | 1317 | 1289 | 1300 | 1261 | |||||||||||||
PV Net Operating Income amp Gross Sale Price | 2343098 | 2373287 | 2417519 | 2516594 | 2557861 | 2739968 | 2776201 | 2823685 | 2915978 | 2949183 | |||||||||||||
PV CFBT and Sale Proceeds before Taxes | 768329 | 825682 | 894703 | 1014982 | 1077800 | 1275230 | 1330384 | 1395000 | 1501635 | 1549985 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 845761 | 904550 | 982200 | 1129361 | 1211885 | 1487329 | 1571848 | 1677802 | 1860954 | 1954668 | |||||||||||||
Equity Multiple (total cash distributionsinitial equity) | 097 | 111 | 126 | 151 | 169 | 210 | 230 | 253 | 286 | 309 | |||||||||||||
RETURN ON EQUITY (CFBTEquity) | 599 | 581 | 566 | 555 | 543 | 541 | 531 | 523 | 519 | 511 | |||||||||||||
14115343 | |||||||||||||||||||||||
RENT ROLL | |||||||||||||||||||||||||
TENANT | SQUARE | OF | LEASE TERM | RENTAL RATE | |||||||||||||||||||||
SUITE | NAME | FEET | PROPERTY | Begin | End | CPIADJUST | Begin | Monthly | PSF | Annually | PSF | ||||||||||||||
A | Subway | 1120 | 13 | 43020 | CURRENT | $3256 | $291 | $39072 | $3489 | ||||||||||||||||
Pizzaria | 5120 | 43025 | 25 Annually | $1400 | $125 | $16800 | $1500 | ||||||||||||||||||
B | Smoke Shop | 1400 | 16 | 8119 | 73124 | 2 Annually | CURRENT | $1190 | $085 | $14280 | $1020 | ||||||||||||||
C | Gearhead | 1260 | 14 | 8119 | 73120 | 2 Annually | CURRENT | $1500 | $119 | $18000 | $1429 | ||||||||||||||
Option to renew annually for 5yrs with 2 increase | |||||||||||||||||||||||||
D | Aca Taco | 1050 | 12 | 12119 | 113024 | 3 Annually | CURRENT | $1639 | $156 | $19668 | $1873 | ||||||||||||||
25 with 3 increases | |||||||||||||||||||||||||
E | Chico Laundry | 2800 | 32 | Monthly | CURRENT | $3122 | $112 | $37464 | $1338 | ||||||||||||||||
F | Windy Chinese | 1120 | 13 | 9116 | 83021 | 3 Annually | CURRENT | $1753 | $157 | $21034 | $1878 | ||||||||||||||
15 option at mkt rate not more than 4 and not less than priot year rent | |||||||||||||||||||||||||
OCCUPIED SF | 8750 | 100 | |||||||||||||||||||||||
AVAILABLE SF | - 0 | 0 | |||||||||||||||||||||||
TOTAL SF | 8750 | 100 | |||||||||||||||||||||||
Notes Analysis assumes tenant exercises options with no leasing costs | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||
Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | ||||||||||||||
INCOME | ||||||||||||||||||||||||
Total Schedualed Base Rent | 135836 | 130591 | 132967 | 135406 | 137909 | 140478 | 143115 | 145821 | 148599 | 151450 | ||||||||||||||
Expense Reimbursments | 50333 | 51715 | 53137 | 54599 | 56102 | 57647 | 59236 | 60870 | 62550 | 64277 | ||||||||||||||
Vacancy 3 (excluding Habit Urbane amp Panda) | (9308) | (9115) | (9305) | (9500) | (9701) | (9906) | (10118) | (10335) | (10557) | (10786) | ||||||||||||||
TOTAL GROSS OPERATING INCOME | 176861 | 173191 | 176799 | 180505 | 184310 | 188219 | 192234 | 196357 | 200592 | 204941 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
CAM | 15339 | 15799 | 16273 | 16761 | 17264 | 17782 | 18315 | 18864 | 19430 | 20013 | ||||||||||||||
UTILITIES | 20646 | 21266 | 21904 | 22561 | 23237 | 23935 | 24653 | 25392 | 26154 | 26939 | ||||||||||||||
INSURANCE | 6195 | 6380 | 6572 | 6769 | 6972 | 7181 | 7397 | 7618 | 7847 | 8082 | ||||||||||||||
PROPERTY TAX | 16120 | 16442 | 16771 | 17107 | 17449 | 17798 | 18154 | 18517 | 18887 | 19265 | ||||||||||||||
MANAGEMENT FEE | 5661 | 5831 | 6006 | 6186 | 6371 | 6563 | 6759 | 6962 | 7171 | 7386 | ||||||||||||||
TOTAL OPERATING EXPENSES | 63960 | 65718 | 67525 | 69383 | 71293 | 73258 | 75277 | 77354 | 79490 | 81686 | ||||||||||||||
NET OPERATING INCOME | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 123256 | ||||||||||||||
ACCUSITION amp RESIDUAL SALE | ||||||||||||||||||||||||
Purchase Price | (1612000) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Net Residual Value | - | - | - | - | - | - | - | - | - | - | 1729000 | |||||||||||||
CASH FLOW BEFORE DEBT | (1612000) | 112900 | 107473 | 109274 | 111122 | 113017 | 114961 | 116956 | 119002 | 121102 | 1850102 | |||||||||||||
FINANCING | ||||||||||||||||||||||||
Loan Funding Payoff | 1047800 | - | - | - | - | - | - | - | - | - | (1047800) | |||||||||||||
Loan Fees | (10478) | - | - | - | - | - | - | - | - | - | - | |||||||||||||
Annual Debt Service | - | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | (5155) | |||||||||||||
CASH FLOW AFTER DEBT | (574678) | 107746 | 102318 | 104120 | 105967 | 107862 | 109807 | 111802 | 113848 | 115947 | 797147 | |||||||||||||
EQUITY (ignoring Costs of Sale) | 619523 | 561986 | 608617 | 656856 | 706741 | 758214 | 811517 | 866594 | 923594 | 982463 | ||||||||||||||
RETURN ON EQUITY (CFBTEquity) | 515 | 811 | 778 | 749 | 723 | 700 | 678 | 659 | 641 | 624 | ||||||||||||||
Cash on Cash Return (CFBTInitial investment) | 555 | 793 | 824 | 856 | 889 | 923 | 958 | 993 | 1030 | 1067 | ||||||||||||||
Rolling Internal Rate of Return | 855 | 622 | 817 | 938 | 1017 | 1070 | 1107 | 1133 | 1151 | 1164 | ||||||||||||||
ASSUMPTIONS | |||||||||
ANALYSIS PERIOD | PURCHASE | ||||||||
Commencement Date | January 1 2020 | Purchase Price Real Property | $161200000 | ||||||
End Date | December 31 2029 | Required Cash Investment | $57467800 | ||||||
Term | 10 Years | CAP Rate | 700 | ||||||
Building Square Feet (SQFT) | 11130 | Price per Square Foot | $14483 | ||||||
GROWTH RATES | FINANCING | ||||||||
Consumer Price Index (CPI) | 300 | Principal Amount (65 of purchase price) | $104780000 | ||||||
Other Income Growth Rate | 300 | Loan-to-Price | 6500 | ||||||
Operating Expenses | 300 | Funding Date | January 1 2020 | ||||||
Real Estate Taxes | 200 | Maturity Date | December 31 2029 | ||||||
Term of Loan | 10 years | ||||||||
GENERAL VACANCY | 500 | Amortization Period | 30 years | ||||||
Interest Rate | 425 | ||||||||
OPERATING EXPENSE SOURCE | 2018 Actuals | Origination Fee on Initial Loan Funding | 100 | ||||||
NOTES | |||||||||
Operating Expenses are based on the 2018 actuals grown by 3 annually for 2020 Owner specific expenses have been excluded from the analysis | |||||||||
Real Estate Taxes have been reassesed at 1 of the estimated purchase price and increased annually by 2 | |||||||||
Net Residual Value is calculated by dividing Year 2029 NOI by 700 CAP Rate | |||||||||
Debt based on 65 of estimated purchase price 425 Interest Rate and 1 Loan Origination Fee | |||||||||
DISCLAIMERS | |||||||||
The information and calculations presented in this analysis are believed to be accurate but are not guaranteed They are intended for the purposes of pro forma projection and analysis | |||||||||
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 14
This confidential investment brochure has been prepared solely forinformational purposes and does not constitute all or any part of an offer orcontract It is designed to assist a potential investor in determining whether toproceed with an in-depth investigation of the subject property
This investment brochure was prepared by Red Eagle Enterprises LTD IncDBA May Realty Advisors and has been reviewed by representatives of theOwner It contains select information pertaining to the sale of the SubjectProperty herein and does not purport to be all inclusive or to contain all of theinformation which prospective purchasers may desire It should be noted thatall financial projections are provided for general reference purposes only inthat they are based upon assumptions relating to the general economy andother factors beyond the control of Owner and therefore are subject tomaterial variation Additional information and an opportunity to inspect theproperty will be made available to interested and qualified prospectivepurchasers
Neither the Owner nor May Realty Advisors nor any of their respective officersor agents make any representation or warranty expressed or implied as tothe accuracy or completeness of this investment brochure or any of itscontents and no legal commitments or obligations shall arise by reason ofthis brochure or its contents
Certain documents in this investment brochure are described in summaryform The summaries do not purport to be complete nor necessarilyaccurate descriptions of the full agreements involved nor do they purport toconstitute a legal analysis of the provisions of the documents Interestedparties are expected to independently review all such documents The termsand conditions stated in this section will relate to all sections of the brochureas if stated independently therein
It is essential that all parties to real estate transactions be aware of the healthliability and economic impact of environmental factors on real estate MayRealty Advisors does not conduct investigations or analysis of environmental
matters and accordingly urges its clients to retain qualified environmentalprofessionals to determine whether hazardous or toxic wastes or substancesor other undesirable materials or conditions are present at the propertyand if so whether any health danger or other liability exists
Various federal state and local laws and regulations have been enacteddealing with the use storage handling removal transport and disposal oftoxic or hazardous wastes and substances Consequently legal counsel andtechnical experts should be consulted where these substances are or may bepresent
The Owner and May Realty Advisors expressly reserve the right at their solediscretion to reject any or all expressions of interest or offer to purchase theproperty andor to terminate discussions with any entity at any time with orwithout notice The Owner shall have no legal commitment or obligation to anyentity reviewing this investment brochure or making an offer to purchase theproperty unless and until a written commitment to purchase the property hasbeen fully executed delivered and approved by Owner and any conditions toOwnerrsquos obligations thereunder have been satisfied or waived
By receipt of this investment brochure you agree that its contents are of aconfidential nature that you hold and treat it in the strictest confidence andthat you will not disclose this brochure or any of its contents to any other entitywithout the prior written authorization of May Realty Advisors nor will you usethis brochure or any of its contents in any fashion or manner detrimental to theinterest of the Owner This brochure shall not be deemed an indication of thestate of affairs of the Owner nor constitute an indication that there has been achange in the business or affairs of Owner since the date of preparation of thisinvestment brochure For additional information please contact Matthew Mayor Richard Huelsman with May Realty Advisors at 818-528-3999 If afterreviewing this investment brochure you have no further interest in purchasingthe property kindly return it to May Realty Advisors at your earliestconvenience Photocopying and other duplication expressly prohibited
C ON F I DE N T I A L I T Y amp DI S C L A I M E R
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 15
CONTACT U S
MAY R E AL T Y ADV IS OR S15206 Ventura Blvd
S uite 302
S herman Oaks CA 91403
Phone (818) 528-3999
BRE 01206736MAT THE W MAYPres ident
Matthew mrala
8 1 8 4 7 7 08 17
BRE 0 0 9 1 24 72
R IC HAR D HUE L S MAN
Managing DirectorRichard mrala
3104633102
BRE 01956167
I nsti tuti onal L evel Ser vi ce amp E x per ti seW i th A n E ntr epr eneur i al A ppr oach
C elebr ati ng O ver 30 Y ear s of R etai l E x per ti se
22020P R E S E N T E D B Y M A Y R E A L T Y A D V I S O R S | lsaquorsaquo
- Slide Number 1
- Slide Number 2
- INVESTMENT SUMMARY
- AREA OVERVIEW
- Slide Number 5
- AREA OVERVIEW
- PROPERTY OVERVIEW
- DEMOGRAPHICS
- TENANT SUMMARY
- FINANCIALS
- ASSUMPTIONS
- CASH FLOW
- RENT ROLL
- CONFIDENTIALITY amp DISCLAIMER
- Slide Number 15
-
I nsti tuti onal L evel Ser v i ce amp E x per ti se W i th A n E ntr epr eneur i al A ppr oach | 15
CONTACT U S
MAY R E AL T Y ADV IS OR S15206 Ventura Blvd
S uite 302
S herman Oaks CA 91403
Phone (818) 528-3999
BRE 01206736MAT THE W MAYPres ident
Matthew mrala
8 1 8 4 7 7 08 17
BRE 0 0 9 1 24 72
R IC HAR D HUE L S MAN
Managing DirectorRichard mrala
3104633102
BRE 01956167
I nsti tuti onal L evel Ser vi ce amp E x per ti seW i th A n E ntr epr eneur i al A ppr oach
C elebr ati ng O ver 30 Y ear s of R etai l E x per ti se
22020P R E S E N T E D B Y M A Y R E A L T Y A D V I S O R S | lsaquorsaquo
- Slide Number 1
- Slide Number 2
- INVESTMENT SUMMARY
- AREA OVERVIEW
- Slide Number 5
- AREA OVERVIEW
- PROPERTY OVERVIEW
- DEMOGRAPHICS
- TENANT SUMMARY
- FINANCIALS
- ASSUMPTIONS
- CASH FLOW
- RENT ROLL
- CONFIDENTIALITY amp DISCLAIMER
- Slide Number 15
-
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