| Cash Flow Inputs | Tenant Inputs | ||
| Property Name: | Peachtree Crossing Office Building | Tenant #1 | |
| Property Address: | 2555 Peachtree Rd. NE | Tenant Name | Wallace, Bruce, & Thompson, LLC |
| Atlanta, Georgia 30324 | Suite | 100 | |
| Minimum Rental Rate/Sq.Ft. | $23.00 | ||
| Property Type: | Multi-tenant Office Bldg. | Occupied Area in Sq.Ft. | 1,50,000 |
| $14,88,000.00 | Term Beginning | 01-10-2012 | |
| Total Building Area (Sq.Ft. Of NRA): | 2,50,000 | Term in Years | 10 |
| Analysis Start Date: | 01-01-2013 | ||
| Years of Analysis: | 7 | ||
| General Inflation Rate: | 3% | ||
| General Vacancy Rate: | 0% | ||
| Credit/Collection Loss: | 0% | ||
| Reimbursable Expenses: | |||
| Common Area Maintenance | $5.75 | per sq.ft./yr. | |
| Ad Valorem Tax | $99,750 | per yr. | |
| Property Insurance | $0.98 | per sq.ft./yr. | |
| Utilities | $7.90 | per sq.ft./yr. | |
| Administrative Expense | $0.25 | per sq.ft./yr. | |
| Non-Reimbursable Expenses: | |||
| Management | 5% | of EGR | |
| Reserves for Replacement | $0.50 | per sq.ft./yr. | |
| Market Leasing Assumptions: | |||
| Renewal Probability | 50% | for all tenants | |
| Market Rent | $25.00 | per sq.ft./yr. | |
| Months Vacant (between tenants) | 12 | months | |
| Tenant Improvement Allowance | $20.00 | per sq.ft. | |
| Leasing Commission | 2.5% | of total renewal term | |
| Reimbursement Method | Base Stop | ||
| Term Length | 5 | years | |
| Resale Assumptions: | |||
| Terminal Cap Rate | 8% | ||
| Resale Adjustment (Commission) | 3% | ||
| Valuation Assumptions: | |||
| Appropriate Discount Rate | 10.50% | ||
| $10,41,600.00 | |||
| 1Yr. Treasury Rate Forecast (%) | |||
| Interest | |||
| Year 1 | 0.15% | $1,562.40 | |
| Year 2 | 0.40% | $4,147.65 | |
| Year 3 | 0.70% | $7,328.70 | |
| Year 4 | 2.21% | $23,049.57 | |
| Year 5 | 2.12% | $22,073.59 | |
| Year 6 | 2.62% | $27,313.88 | |
| Year 7 | 3.09% | $32,205.23 | |
| $1,17,681.01 | |||
| Effective borowing cost or yield is (117681.01 x 100/1041600) /7 | 1.61% | 11.2981 | |
| 1.614014286 | |||
| 1Yr. Treasury Rate Forecast (%) | |||
| Year 1 | 0.15% | 3.50% | 3.65% |
| Year 2 | 0.40% | 3.50% | 3.90% |
| Year 3 | 0.70% | 3.50% | 4.20% |
| Year 4 | 2.21% | 3.50% | 5.71% |
| Year 5 | 2.12% | 3.50% | 5.62% |
| Year 6 | 2.62% | 3.50% | 6.12% |
| Year 7 | 3.09% | 3.50% | 6.59% |
| Loan amount | $11,16,000.00 | ||
| Rate of interest | Interest | ||
| Year 1 | 3.65% | $40,734.00 | |
| Year 2 | 3.90% | $43,503.91 | |
| Year 3 | 4.20% | $46,912.18 | |
| Year 4 | 5.71% | $63,755.96 | |
| Year 5 | 5.62% | $62,710.27 | |
| Year 6 | 6.12% | $68,324.87 | |
| Year 7 | 6.59% | $73,565.60 | |
| Interest | $3,99,506.80 | ||
| Effective borroiwng cost (399506.80 x 100/1116000) /7 | 5.114014286 | 35.7981 |
