Spreadsheet: 386077d1427572771-6-real-estate-analysis-questions-homework-real-estate-analysis
Sheet: Return

ASSUMPTIONS SECTION
 |  | Square Feet |  | 49464
 |  | Project Capitalization |  |  |  | Project Capitalization Summary
 |  | Price | 6000000 |  |  |  |  | Capital | Capital PSF | % of Purchase | % of Ttl Price | Rate | Amort (Yrs) | Payment
 |  | Acquisition Fee |  |  |  | First Mortgage
 |  | Upfront Capital Improvements | 250000 |  |  | First Mortgage Lease Funding
 |  | Title & Escrow Fees | 30000 |  |  | Mez 2nd Mortgage |  |  |  | 0 |  |  | N/A
 |  | Legal Fees and Other Closing | 40000 |  |  | Equity for Purchase |  |  |  |  |  | 0.12 | N/A
 |  | [NAME]. Contingency | 0 |  |  | Equity For Reserves |  |  |  |  |  |  | N/A
 |  | Due Diligence (Phase I, ALTA, PCR) | 30000 |  |  | Equity for Aquisition Items |  |  |  |  |  |  | N/A
 |  | Total Basis |  |  |  | Equity for Loan Items |  |  |  |  |  |  | N/A
 |  | Capital Reserve | 389330 |  |  | Total [NAME]
 |  | Capital Call | 0 |  |  | Total Equity
 |  | Reserve - Investor Dividend | 0
 |  | Lender Legal & Title | 35000 |  |  | Debt Assumptions |  |  | Select Return Output Year    > |  | 3 |  | 3 |  | * Years change with pull-down menu
 |  | 0.01 |  |  |  | Principal Amt. | 4000000 |  |  |  | Total | PSF | Total | PSF
 |  | Total Leveraged Basis |  |  |  | Goodnews Fac. |  |  | Equity Investment
 |  |  |  |  |  | Amort. | 25 |  | Gross Sales Price
 |  | Vacant Space TI & Commission (Debt) |  |  |  | Rate | 0.045 |  | Gross $ Profit (Leveraged)
 |  | Total |  |  |  | In-Place NOI |  |  | Equity Multiple
 |  |  |  |  |  | PMT |  |  | IRR - All Cash
 |  | Residual Value |  |  |  | DSCR |  |  | IRR - Leveraged Before Splits
 |  | Residual Cap Rate |  | 0.0825 |  | LTV |  |  | IRR - Leveraged After Splits
 |  | Cost of Sale |  | 0.035 |  | LTV w/ GN
 |  |  | Time 0 | 1
CASH FLOW SECTION
 |  | Occupancy Summary | Month 0 | 12
 |  | Physical Occupancy
 |  | Less Additional Gross Vacancy Factor (Argus)
 |  | Economic Occupancy
 |  | Weighted Average Rent Per Total S.F
 | NOI (Argus)
 |  | Cap on Acquisition Price
 |  | [NAME] on Upfront Capitalization
 |  | Going-In Cap Rate
 | First Mortgage Debt Service
 | Cash Flow After Debt
 |  | DSCR
 | Mez Service
 | Cash Flow After Debt and [NAME]
 |  | % Return to Equity Outstanding
 |  | Capital Items (Argus) Inc. HVAC yr 3
 |  | Electricity Rebate |  | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
 |  | 0
 | Cash Flow After Debt and Capital
 |  | % Return on Equity Outstanding
 | Contributions & Distributions of Reserve Accounts
 | *hard code numbers as applicable, balances on next page.
 |  | Good News Funding from First Mortgage |  | 218203 | 123754 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
 |  | Capital Reserve
 |  | Distribution to Capital Reserve |  | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
 |  | Contribution from Capital Reserve |  | 0 | 91382 | 156176 | 0 | 0 | 0 | 0 | 0 | 0 | 0
 |  | Lender Reserve
 |  | Distribution to Lender Reserve from Cash Sweep |  | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
 |  | Contribution from Lender Reserve |  | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
 |  | Special Contribution from Capital Reserve Upon Leasing Event |  | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
 | Cash After Contribution / Distribution of Reserve Accounts
 |  | Refinancing - Make sure enough to cover takeout amount |  | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
 | Cash Flow Available for Investor  Distribution
 |  | % Return on Equity Outstanding
 |  | Cash on Cash Yield
 |  |  | Time 0 | 1
CAPITAL BALANCE SECTION
 |  | Beginning Balance
 |  | Contribution to Capital Reserve | 0
 |  | Distribution from Capital Reserve | 0
 | Capital Reserve Ending Balance
 | Lender Reserve
 |  | Beginning Balance
 |  | Contributions From Sweep
 |  | Distributions to [NAME]
 |  | Special Distribution Upon Leasing Event
 | Lender Reserve Ending Balance
 | Total Beginning Reserve Balances (Lender, Capital, Dividend)
 | Total Ending Reserve Balances (Lender, Capital, Dividend)
 | First Loan Balance
 |  | Beginning Balance
 |  | Interest Due
 |  | Good News Funding
 |  | Refinancing
 |  | Annual Payments
 | Loan Balance
 |  | Total Debt PSF
 | [NAME]
 |  | Beginning Balance
 |  | Additional Contribution |  | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
 |  | Payment
 | Ending Equity Balance w/ Pref
 |  | Total Equity PSF
 | Equity Balance
 |  | Beginning Balance
 |  | Additional Contribution
 |  | Payment
 | Ending Equity Balance w/ Pref
 |  | Total Equity PSF
 | Total Capital (Equity with Pref + Loan Balance)
 |  | Total Capital PSF
 |  | LTV on Total Cap
 |  |  | Time 0 | 1
SALE & IRR SECTION
 | NOI of Following Year PSF
 | Exit Cap Rate
 | Residual Value PSF
 | Property Square Feet
 | Residual Value
 |  | Remaining Capital Reserve
 |  | Cost of Sale
 | Net Proceeds (ALL CASH)
 |  | Outstanding Debt Balance
 | Net Proceeds (LEVERAGED)
 |  | Outstanding Mez Balance
 | Net Proceeds (LEVERAGED)
 |  | Equity Balance with Accrued Preferred Return
 | Profit Over Equity and Pref
 |  | Manager Promote (split) | 0.3
 | Profit After Manager [NAME] (Promoted Interest)
 | [NAME] Split |  | 0
 | Equity Profit Split
 | Cash Balance
Equity Cash Flow
 | Annual Cash Flow
 | Equity Distribution Upon Sale (Return of Eq, Pref & Profit)
 | Terminal Year Cash Flow Net Manager Participation
 |  | ALL CASH IRR | Equity Requirement |  |  |  |  |  |  |  |  |  | IRR | Gross Profit
1 |  | 1
2
3
4
5
6
7
8
9
 |  | Leveraged IRR - Before Manager Profit Participation |  |  |  |  |  |  |  |  |  |  | IRR | Gross Profit
1 |  | 1
2
3
4
5
6
7
8
9
 |  | Leveraged IRR - After Manager Profit Participation |  |  |  |  |  |  |  |  |  |  | IRR | Gross Profit
1 |  | 1
2
3
4
5
6
7
8
9
 |  | Sensitivity Analysis - Year-2 IRR Leveraged After Splits to Purchase Price / Cap Rate
 |  | Leveraged, Net to Investors After Splits.
 |  |  | Price Intervals | 250000
 |  | 10000 |  |  |  |  |  |  | 5725000
 |  | 50000 | 0.08 |  | 0.3627298128009691 | 0.3064749729803515 | 0.2227376727182662 | 0.2227376727182662 | 0.1904884746296065 | 0.1627274935320502 | 0.1385311281637802 | 0.1160253103652491 | 0.08870656031051949 | 0.06386631849122848
 |  | 100000 |  | 0.4109932440247508 | 0.341240202571732 | 0.2863998985177916 | 0.2048823949953837 | 0.2048823949953837 | 0.1735306285674427 | 0.1465638818530619 | 0.1230775873770491 | 0.09469054318227443 | 0.0678809503188258 | 0.04350450418701102
 |  | 250000 |  | 0.3884061660527727 | 0.3203500989606844 | 0.2669030052909995 | 0.1875709889673174 | 0.1875709889673174 | 0.157102258757311 | 0.1309166388430383 | 0.1029606014911704 | 0.0738106917250485 | 0.04749938638466467 | 0.02357683602622007
 |  | 500000 |  | 0.3663956273057785 | 0.3000140445744177 | 0.247941483942822 | 0.1707646163049374 | 0.1707646163049374 | 0.1411660635696366 | 0.1139181647881418 | 0.08195035397235051 | 0.05334049936186469 | 0.02751769194012565 | 0.004040121279907938
 |  | 1000000 |  | 0.3449169668784318 | 0.2801905145841355 | 0.2294762924137264 | 0.1544279379762776 | 0.1544279379762776 | 0.1256881291363623 | 0.09269390384318776 | 0.06131722298779585 | 0.03323771336088899 | 0.00789462253380413 | -0.01514596604252694
 |  |  |  | 0.323929138031364 | 0.2608414348533432 | 0.2114716999440922 | 0.1385286968056481 | 0.1385286968056481 | 0.1065754505867085 | 0.07181563643506461 | 0.04102042782918569 | 0.01346260109337183 | -0.01140860642147956 | -0.03401934692950392
 |  |  |  | 0.3033942632138389 | 0.2419317663856035 | 0.1938948944281256 | 0.1230373586183537 | 0.1230373586183537 | 0.08535867285112686 | 0.05124361579548187 | 0.02102132841934323 | -0.006022484587149823 | -0.03042874390054351 | -0.05261595217362203
 |  |  |  | 0.2832772471700462 | 0.2234291450599801 | 0.1767156426559577 | 0.1026695329060638 | 0.1026695329060638 | 0.06441861607756949 | 0.03093987816626953 | 0.001283017866202663 | -0.02525350232376911 | -0.04920089077639989 | -0.07097010125675629
 |  |  |  | 0.2635454384903235 | 0.2053035676334198 | 0.1599059948995714 | 0.08125240331179717 | 0.08125240331179717 | 0.04371756398284354 | 0.01086785267994173 | -0.01823005680211653 | -0.04426509178157945 | -0.06775886053466862 | -0.08911485503772854
 |  | Sources
 |  | [NAME]
 |  | Bulk Loan Funding
 |  | Good News | 0
 |  |  | 0
 |  |  | 0
 |  |  | 0
 |  |  | 0
 |  |  | 0
 |  |  | 0
 |  | TOTAL SOURCES
 |  | Uses
 |  | [NAME]. Contingency
 |  | Mes Zervice
 |  | Outstanding Mez Balance |  |  |  |  |  |  |  |  |  |  | 0
 |  | TOTAL USES
 |  | BALANCE