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

 |  |  |  |  |  |  |  |  |  | Software: ARGUS Ver. 15.0.1.26
 |  |  |  |  |  |  |  |  |  | Property Type: Office & Retail
 |  |  |  |  |  |  |  |  |  | Portfolio:
 |  |  |  |  |  |  |  |  |  | Date: 11/19/14
 |  |  |  |  |  |  |  |  |  | Time: 8:10 am
 |  |  |  |  |  |  |  |  |  | Ref#: ATU
 |  |  |  |  |  |  |  |  |  | Page: 1
 |  |  | Schedule Of Prospective Cash Flow
 |  |  | In Inflated Dollars for the Fiscal Year Beginning 1/1/2015
 | Year  1 | Year  2 | Year  3 | Year  4 | Year  5 | Year  6 | Year  7 | Year  8 | Year  9 | Year 10
For the Years Ending | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024
 | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________
Potential Gross Revenue
Base Rental Revenue | 1007554 | 1067287 | 1133263 | 1164646 | 1213871 | 1282355 | 1320882 | 1352809 | 1376364 | 1401024
Absorption & Turnover Vacancy | -220565 | -199363 | -52283 | -26099 | -82233 | -89897 | -126572 | -112130 | -4034 | -38893
Base Rent Abatements | -59767 | -102769 | -82120 |  | -2661 | -12351
 | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________
Scheduled Base Rental Revenue | 727222 | 765155 | 998860 | 1138547 | 1128977 | 1180107 | 1194310 | 1240679 | 1372330 | 1362131
Expense Reimbursement Revenue
Repairs and Maintenance | 1293 | 2184 | 3980 | 5745 | 5768 | 4167 | 3277 | 2231 | 3896 | 4772
Service Contracts | 1315 | 2221 | 4048 | 5840 | 5864 | 4236 | 3331 | 2268 | 3962 | 4849
Rubbish/Trash | 78 | 132 | 242 | 352 | 352 | 256 | 196 | 134 | 244 | 293
Cleaning Interior | 1024 | 1733 | 3197 | 4659 | 4654 | 3355 | 2597 | 1776 | 3177 | 3859
Electric - Office | 2378 | 4022 | 7423 | 10816 | 10806 | 7784 | 6032 | 4124 | 7377 | 8959
Water - Office | 854 | 1446 | 2667 | 3886 | 3881 | 2799 | 2167 | 1482 | 2649 | 3218
Other Utilities | 42 | 71 | 130 | 188 | 190 | 137 | 108 | 74 | 128 | 156
Taxes
Insurance | 522 | 883 | 1608 | 2320 | 2330 | 1683 | 1324 | 900 | 1573 | 1929
Management Fee | 859 | 1494 | 3278 | 5128 | 5192 | 3771 | 2977 | 2001 | 3487 | 4240
Administrative | 158 | 269 | 487 | 703 | 707 | 511 | 401 | 274 | 477 | 586
ASU Research Park CAM Fee | 631 | 1067 | 1945 | 2803 | 2816 | 2034 | 1601 | 1088 | 1902 | 2330
ASU Research Park MSF Fee | 202 | 341 | 624 | 898 | 902 | 653 | 512 | 349 | 609 | 746
Payroll | 744 | 1257 | 2288 | 3304 | 3316 | 2395 | 1884 | 1283 | 2240 | 2743
 | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________
Total Reimbursement Revenue | 10100 | 17120 | 31917 | 46642 | 46778 | 33781 | 26407 | 17984 | 31721 | 38680
Parking Revenue | 13740 | 14152 | 14577 | 15014 | 15464 | 15928 | 16406 | 16898 | 17405 | 17928
Antennae | 600 | 618 | 637 | 656 | 675 | 696 | 716 | 738 | 760 | 783
 | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________
Total Potential Gross Revenue | 751662 | 797045 | 1045991 | 1200859 | 1191894 | 1230512 | 1237839 | 1276299 | 1422216 | 1419522
General Vacancy |  |  | -57544 | -96597 | -45180 | -42144 | -9869 | -26713 | -138591 | -106949
 | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________
Effective Gross Revenue | 751662 | 797045 | 988447 | 1104262 | 1146714 | 1188368 | 1227970 | 1249586 | 1283625 | 1312573
 | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________
Operating Expenses
Repairs and Maintenance | 45287 | 46646 | 48045 | 49486 | 50971 | 52500 | 54075 | 55697 | 57368 | 59089
Service Contracts | 46042 | 47423 | 48846 | 50311 | 51821 | 53375 | 54977 | 56626 | 58325 | 60074
Rubbish/Trash | 2464 | 2592 | 2900 | 3027 | 3036 | 3118 | 3159 | 3279 | 3547 | 3599
Cleaning Interior | 32498 | 34186 | 38254 | 39926 | 40043 | 41125 | 41664 | 43251 | 46785 | 47474
Electric - Office | 75464 | 79383 | 88832 | 92713 | 92985 | 95497 | 96750 | 100435 | 108641 | 110240
Water - Office | 27103 | 28510 | 31904 | 33298 | 33395 | 34298 | 34747 | 36071 | 39018 | 39592
Other Utilities | 1484 | 1529 | 1574 | 1622 | 1670 | 1720 | 1772 | 1825 | 1880 | 1936
Taxes
Insurance | 18290 | 18839 | 19404 | 19986 | 20586 | 21203 | 21839 | 22494 | 23169 | 23864
Management Fee | 30066 | 31882 | 39538 | 44170 | 45869 | 47535 | 49119 | 49983 | 51345 | 52503
Administrative | 5554 | 5721 | 5892 | 6069 | 6251 | 6439 | 6632 | 6831 | 7036 | 7247
ASU Research [NAME] | 22107 | 22771 | 23454 | 24157 | 24882 | 25628 | 26397 | 27189 | 28005 | 28845
ASU Research [NAME] | 7084 | 7296 | 7515 | 7741 | 7973 | 8212 | 8458 | 8712 | 8973 | 9243
Payroll | 26036 | 26817 | 27622 | 28450 | 29304 | 30183 | 31088 | 32021 | 32982 | 33971
Repairs & Maintenance (NR) | 3061 | 3153 | 3247 | 3345 | 3445 | 3549 | 3655 | 3765 | 3878 | 3994
 | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________
Total Operating Expenses | 342540 | 356748 | 387027 | 404301 | 412231 | 424382 | 434332 | 448179 | 470952 | 481671
 | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________
Net Operating Income | 409122 | 440297 | 601420 | 699961 | 734483 | 763986 | 793638 | 801407 | 812673 | 830902
 | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________
Leasing & Capital Costs
Tenant Improvements | 163000 | 280634 | 197371 |  | 59902 | 280945 | 145681 | 249642 | 28473 | 69443
Leasing Commissions | 55203 | 107999 | 81245 |  | 28602 | 132648 | 68322 | 115699 | 13037 | 31401
Replace HVAC Systems |  |  | 212180
 | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________
Total Leasing & Capital Costs | 218203 | 388633 | 490796 |  | 88504 | 413593 | 214003 | 365341 | 41510 | 100844
 | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________ | ___________
Cash Flow Before Debt Service | 190919 | 51664 | 110624 | 699961 | 645979 | 350393 | 579635 | 436066 | 771163 | 730058
& Taxes | =========== | =========== | =========== | =========== | =========== | =========== | =========== | =========== | =========== | ===========
Revenue/Expense Notes
Parking Revenue |  | Based on currently monthly amount.
Rubbish/Trash |  | Grossed up based on an occupancy of 87.93% and a 60% variability.
Cleaning Interior |  | Grossed up based on an occupancy of 87.93% and a 60% variability.
Electric - Office |  | Grossed up based on an occupancy of 87.93% and a 60% variability.
Water - Office |  | Grossed up based on an occupancy of 87.93% and a 60% variability.
Taxes |  | Building is part of Arizona State Research Park with no property tax expenes.
ASU Research [NAME] |  | Based on monthly payment as of 7/1/14 and inflates on a fiscal year basis every July.  Analysis
 |  | assumes this expense inflates at the analysis inflation rates indicated.
ASU Research [NAME] |  | Based on monthly payment as of 7/1/14 and inflates on a fiscal year basis every July.  Analysis
 |  | assumes this expense inflates at the analysis inflation rates indicated.