Table 1 – Financial Model
|
ANNUAL |
ANNUAL |
MONTHLY |
MONTHLY |
|
|
Gross Annual Rents |
$288,000.00 |
$7.20 |
$24,000.00 |
$0.60 |
|
Effective Gross Income |
272,160.00 |
6.80 |
22,680.00 |
.57 |
|
Net Operating Income (NOI) |
182,160.00 |
4.55 |
15,180.00 |
.38 |
|
Before-Tax Cash flow (BTCF) |
78,161.74 |
1.95 |
6,513.48 |
.16 |
|
Land |
$272,250 |
$6.64 |
||
|
Construction Cost |
820,000 |
20.00 |
||
|
Architecture/Engineering |
20,000 |
.49 |
||
|
Permits/Fees |
15,000 |
.37 |
||
|
Testing/Surveys |
7,500 |
.18 |
||
|
Legal Expenses |
10,000 |
.24 |
||
|
Builder’s Risk Insurance |
3,200 |
.08 |
||
|
Advertising/Marketing |
25,000 |
.61 |
||
|
Office Furnishing |
5,000 |
.12 |
||
|
Closing Cost |
30,000 |
.73 |
||
|
Interest Carry |
75,000 |
1.88 |
||
|
Total |
1,282,950 |
31.29 |
||
|
Gross Building SF |
41,000 |
Land Area in Acres |
2.5 |
|
Net Leasable SF |
40,000 |
Land Area in SF |
108,900 |
|
Office/Apartment SF |
1,000 |
Land Cost Per Acre | $108,900 |
|
Land Coverage/Gross SF |
36.73% |
Land Cost Per SF | $2.50 |
D. DEVELOPMENT FINANCIAL VARIABLES
|
Other Income % |
5% |
|||
|
Vacancy/Collection Loss% |
10% |
|||
|
Gross Rents/Net SF/Month |
$.60 |
$7.20 |
||
|
Interest Rate |
10% |
|||
|
Loan Amount |
$898,065 |
70% |
||
|
Equity Required |
$384,885 |
30% |
||
|
Amortization Period (20 years) |
240 |
|||
|
Payments Per year |
12 |
|||
|
Operating Expenses/Net SF |
$2.25 |
|||
|
Capitalized Gross Rents |
$1,821,600 |
Loan-to-Value Ratio | 49.3% |
|
Capitalization Rate |
10% |
Post Leaseup Return on Equity | 20.3% |
|
Current Market Value/Gross SF |
$44.43 |
Debt Service/Period (w/prin) | $8,666.52 |
|
Breakeven Ratio |
64.15% |
1-800-240-3688
Fax: 904-262-0068
E-mail: info@americansteelmfg.com
