Tenant Lease Analysis Summary

73 Hillside Way

Name RSF USF Total $ PV @ 9.5% PV/RSF PV/USF
Ackerman Proposal 4,000 3,800 216,500 180,019 45.00 47.37
Maxwell Proposal 4,000 3,800 178,373 141,719 35.43 37.29
Foster Proposal 4,000 3,800 202,411 167,963 41.99 44.20


     


PV/Year/RSF Comparison

73 Hillside Way


  Ackerman Proposal Maxwell Proposal Foster Proposal
  9.0 7.1 8.4


     


Tenant Lease Analysis

Ackerman Proposal

This report is produced from the basic planEASe software priced at $995.

This form has been set up in this format specially for the evaluation of these lease proposals. When you use planEASe to evaluate your own lease proposals, you may set up your own form, deleting any of these rows, and adding as many of your own (for whatever purpose you name) as you wish.

The Ackerman Proposal calls for a five year full-service lease at $9.30/square foot rentable fixed rate.

Tenant improvement allowance of $7,000, plus floor covering allowance of $10/yd and an air conditioning allowance of $20,000. Additional improvements are to be paid by the tenant.

    Measure Rent Rentable Usable
Report Date 18 Apr 08   Total Effective 216,500 54.13 56.97
Suite     Avg Annual Effective 43,300 10.83 11.39
Rentable SF 4,000   PV @ 9.5% 180,019 45.00 47.37
Usable SF 3,800   Annual PV @ 9.5% 36,004 9.00 9.47


  Start 2001 2002 2003 2004 2005 End Total
Base Rent 0 37,200 37,200 37,200 37,200 37,200 0 186,000
+ op 0 0 0 0 0 0 0 0
+ tax 0 0 0 0 0 0 0 0
+ net TPTI 25,500 0 0 0 0 0 0 25,500
+ parking 0 0 0 0 0 0 0 0
+ net buyout 0 0 0 0 0 0 0 0
+ moving 5,000 0 0 0 0 0 0 5,000
- free rent 0 0 0 0 0 0 0 0
Total $ 30,500 37,200 37,200 37,200 37,200 37,200 0 216,500
Total PV 30,500 35,562 32,477 29,659 27,086 24,736 0 180,019
$/RSF 7.63 9.30 9.30 9.30 9.30 9.30 0.00 54.13
PV/RSF 7.63 8.89 8.12 7.41 6.77 6.18 0.00 45.00
$/USF 8.03 9.79 9.79 9.79 9.79 9.79 0.00 56.97
PV/USF 8.03 9.36 8.55 7.80 7.13 6.51 0.00 47.37


     


Total Total $

Ackerman Proposal


  Start 2001 2002 2003 2004 2005 End
  30.5 37.2 37.2 37.2 37.2 37.2 0.0


     


Tenant Lease Analysis

Maxwell Proposal

This report is produced from the basic planEASe software priced at $995.

This form has been set up in this format specially for the evaluation of these lease proposals. When you use planEASe to evaluate your own lease proposals, you may set up your own form, deleting any of these rows, and adding as many of your own (for whatever purpose you name) as you wish.

The Maxwell Proposal calls for a five-year full-service lease beginning at $8.00/square foot rentable for years 1 and 2, then increasing to $9.50 in years 3, 4 and 5.

Operating Expenses and Taxes to be passed through to the tenant, with an expense stop of $1.35/sf and a tax stop of $.25/sf.

Three months' free rent at the beginning of the lease

Tenant improvement allowance as in Bob Ackerman's proposal, plus additional $14,000 and $10,000 allowances for the UPS and PBX installations.

    Measure Rent Rentable Usable
Report Date 18 Apr 08   Total Effective 178,373 44.59 46.94
Suite     Avg Annual Effective 35,675 8.92 9.39
Rentable SF 4,000   PV @ 9.5% 141,719 35.43 37.29
Usable SF 3,800   Annual PV @ 9.5% 28,344 7.09 7.46


  Start 2001 2002 2003 2004 2005 End Total
Base Rent 0 32,000 32,000 38,000 38,000 38,000 0 178,000
- free rent 0 (8,000) 0 0 0 0 0 (8,000)
+ op 0 0 162 329 501 678 0 1,669
+ tax 0 0 20 40 61 82 0 204
+ net TPTI 1,500 0 0 0 0 0 0 1,500
+ net buyout 0 0 0 0 0 0 0 0
+ parking 0 0 0 0 0 0 0 0
+ moving 5,000 0 0 0 0 0 0 5,000
Total $ 6,500 24,000 32,182 38,369 38,562 38,760 0 178,373
Total PV 6,500 22,681 28,096 30,591 28,077 25,773 0 141,719
$/RSF 1.63 6.00 8.05 9.59 9.64 9.69 0.00 44.59
PV/RSF 1.63 5.67 7.02 7.65 7.02 6.44 0.00 35.43
$/USF 1.71 6.32 8.47 10.10 10.15 10.20 0.00 46.94
PV/USF 1.71 5.97 7.39 8.05 7.39 6.78 0.00 37.29


     


Total Total $

Maxwell Proposal


  Start 2001 2002 2003 2004 2005 End
  6.5 24.0 32.2 38.4 38.6 38.8 0.0


     


Tenant Lease Analysis

Foster Proposal

This report is produced from the basic planEASe software priced at $995.

This form has been set up in this format specially for the evaluation of these lease proposals. When you use planEASe to evaluate your own lease proposals, you may set up your own form, deleting any of these rows, and adding as many of your own (for whatever purpose you name) as you wish.

David Foster's Proposal calls for a five-year net lease with base rent beginning at $6.50/square foot rentable with annual CPI escalation

All operating expenses and taxes to be paid by the tenant.

Tenant improvement allowance as in Ackerman's proposal.

    Measure Rent Rentable Usable
Report Date 18 Apr 08   Total Effective 202,411 50.60 53.27
Suite     Avg Annual Effective 40,482 10.12 10.65
Rentable SF 4,000   PV @ 9.5% 167,963 41.99 44.20
Usable SF 3,800   Annual PV @ 9.5% 33,593 8.40 8.84


  Start 2001 2002 2003 2004 2005 End Total
Base Rent 0 26,000 26,780 27,583 28,411 29,263 0 138,038
+ op 0 5,400 5,562 5,729 5,901 6,078 0 28,669
+ tax 0 1,000 1,020 1,040 1,061 1,082 0 5,204
+ net TPTI 25,500 0 0 0 0 0 0 25,500
+ parking 0 0 0 0 0 0 0 0
+ net buyout 0 0 0 0 0 0 0 0
+ moving 5,000 0 0 0 0 0 0 5,000
- free rent 0 0 0 0 0 0 0 0
Total $ 30,500 32,400 33,362 34,353 35,373 36,423 0 202,411
Total PV 30,500 30,973 29,126 27,389 25,755 24,219 0 167,963
$/RSF 7.63 8.10 8.34 8.59 8.84 9.11 0.00 50.60
PV/RSF 7.63 7.74 7.28 6.85 6.44 6.05 0.00 41.99
$/USF 8.03 8.53 8.78 9.04 9.31 9.59 0.00 53.27
PV/USF 8.03 8.15 7.66 7.21 6.78 6.37 0.00 44.20


     


Total Total $

Foster Proposal


  Start 2001 2002 2003 2004 2005 End
  30.5 32.4 33.4 34.4 35.4 36.4 0.0


     


Revenue Detail

73 Hillside Way

  Ackerman
Proposal		 Maxwell
Proposal		 Foster
Proposal
Total
Start 30,500 6,500 30,500 67,500
2001 37,200 24,000 32,400 93,600
2002 37,200 32,182 33,362 102,744
2003 37,200 38,369 34,353 109,922
2004 37,200 38,562 35,373 111,135
2005 37,200 38,760 36,423 112,384
End 0 0 0 0
Total 216,500 178,373 202,411 597,284

     


Revenue Detail

73 Hillside Way


  2001 2002 2003 2004 2005
Ackerman Proposal 37.2 37.2 37.2 37.2 37.2
Maxwell Proposal 24.0 32.2 38.4 38.6 38.8
Foster Proposal 32.4 33.4 34.4 35.4 36.4


     


Analysis Assumptions Report

73 Hillside Way

















Investment Assumptions
Price of Property   Tenant Representation
Date of Acquisition   1 January 2001
Holding Period   5 Years
Inflation Rate   3% per Year
Sale Price Method   No Sale Price Specified
     
Investor's Assumptions
General Vacancy & Credit Loss   Zero
Tax Rate - First Year   None
Tax Rate - Following Years   None
Capital Gain Rate   20%
Cost Recovery Recapture Rate   25% - Losses Carried Forward
Present Value Discount Rate Before Debt   9.5% per Year
Present Value Discount Rate Before Tax   9.5% per Year
Present Value Discount Rate After Tax   9.5% per Year
     
Ackerman Proposal Revenue Assumptions
  This report is produced from the basic planEASe software priced at $995.

This form has been set up in this format specially for the evaluation of these lease proposals. When you use planEASe to evaluate your own lease proposals, you may set up your own form, deleting any of these rows, and adding as many of your own (for whatever purpose you name) as you wish.

The Ackerman Proposal calls for a five year full-service lease at $9.30/square foot rentable fixed rate.

Tenant improvement allowance of $7,000, plus floor covering allowance of $10/yd and an air conditioning allowance of $20,000. Additional improvements are to be paid by the tenant.
Annual Revenue (4,000 SqFt @ $9.30/SqFt/Year)   $37,200.00
Revenue Start Date   at Acquisition
Revenue Period   Until Projected Sale
Revenue Growth Method   No Growth is Projected
     
Ackerman Proposal + net TPTI Revenue Assumptions
  Remainder of TI's after Ackerman's $31,500 proposed allowance
Annual Revenue   $25,500.00
Revenue Start Date   at Acquisition
Revenue Growth Method   No Growth is Projected
     
Ackerman Proposal + moving Revenue Assumptions
Annual Revenue   $5,000.00
Revenue Start Date   at Acquisition
Revenue Growth Method   No Growth is Projected
     
Maxwell Proposal Revenue Assumptions
  This report is produced from the basic planEASe software priced at $995.

This form has been set up in this format specially for the evaluation of these lease proposals. When you use planEASe to evaluate your own lease proposals, you may set up your own form, deleting any of these rows, and adding as many of your own (for whatever purpose you name) as you wish.

The Maxwell Proposal calls for a five-year full-service lease beginning at $8.00/square foot rentable for years 1 and 2, then increasing to $9.50 in years 3, 4 and 5.

Operating Expenses and Taxes to be passed through to the tenant, with an expense stop of $1.35/sf and a tax stop of $.25/sf.

Tenant improvement allowance as in Bob Ackerman's proposal, plus additional $14,000 and $10,000 allowances for the UPS and PBX installations.
Annual Revenue (4,000 SqFt @ $8.00/SqFt/Year)   $32,000.00
Revenue Start Date   at Acquisition
Revenue Period   2 Years
Revenue Growth Method   No Growth is Projected
     
Maxwell Proposal step 2 Revenue Assumptions
Annual Revenue (4,000 SqFt @ $9.50/SqFt/Year)   $38,000.00
Revenue Start Date   Continuation
Revenue Period   3 Years
Revenue Growth Method   No Growth is Projected
     
Maxwell Proposal - free rent Revenue Assumptions
Annual Revenue (4,000 SqFt @ ($8.00)/SqFt/Year)   ($32,000.00)
Revenue Start Date   at Acquisition
Revenue Period   .25 Years
Revenue Growth Method   No Growth is Projected
     
Maxwell Proposal + op Revenue Assumptions
Annual Revenue (4,000 SqFt @ $1.35/SqFt/Year)   $5,400.00
Revenue Start Date   at Acquisition
Revenue Period   Until Projected Sale
Revenue Growth Method   Annual at the Inflation Rate
     
Maxwell Proposal - stop Revenue Assumptions
Annual Revenue (4,000 SqFt @ ($1.35)/SqFt/Year)   ($5,400.00)
Revenue Start Date   at Acquisition
Revenue Period   Until Projected Sale
Revenue Growth Method   No Growth is Projected
     
Maxwell Proposal + tax Revenue Assumptions
Annual Revenue (4,000 SqFt @ $0.25/SqFt/Year)   $1,000.00
Revenue Start Date   at Acquisition
Revenue Period   Until Projected Sale
Revenue Growth Method   Annual at 2% Annually
     
Maxwell Proposal - stop Revenue Assumptions
Annual Revenue (4,000 SqFt @ ($0.25)/SqFt/Year)   ($1,000.00)
Revenue Start Date   at Acquisition
Revenue Period   Until Projected Sale
Revenue Growth Method   No Growth is Projected
     
Maxwell Proposal + net TPTI Revenue Assumptions
  Remaining TI's after allowances
Annual Revenue   $1,500.00
Revenue Start Date   at Acquisition
Revenue Growth Method   No Growth is Projected
     
Maxwell Proposal + moving Revenue Assumptions
Annual Revenue   $5,000.00
Revenue Start Date   at Acquisition
Revenue Growth Method   No Growth is Projected
     
Foster Proposal Revenue Assumptions
  This report is produced from the basic planEASe software priced at $995.

This form has been set up in this format specially for the evaluation of these lease proposals. When you use planEASe to evaluate your own lease proposals, you may set up your own form, deleting any of these rows, and adding as many of your own (for whatever purpose you name) as you wish.

David Foster's Proposal calls for a five-year net lease with base rent beginning at $6.50/square foot rentable with annual CPI escalation
Annual Revenue (4,000 SqFt @ $6.50/SqFt/Year)   $26,000.00
Revenue Start Date   at Acquisition
Revenue Period   Until Projected Sale
Revenue Growth Method   Annual at the Inflation Rate
     
Foster Proposal + op Revenue Assumptions
Annual Revenue (4,000 SqFt @ $1.35/SqFt/Year)   $5,400.00
Revenue Start Date   at Acquisition
Revenue Period   Until Projected Sale
Revenue Growth Method   Annual at the Inflation Rate
     
Foster Proposal + tax Revenue Assumptions
Annual Revenue (4,000 SqFt @ $0.25/SqFt/Year)   $1,000.00
Revenue Start Date   at Acquisition
Revenue Period   Until Projected Sale
Revenue Growth Method   Annual at 2% Annually
     
Foster Proposal + net TPTI Revenue Assumptions
  Remainder of TI's after Ackerman's $31,500 proposed allowance
Annual Revenue   $25,500.00
Revenue Start Date   at Acquisition
Revenue Growth Method   No Growth is Projected
     
Foster Proposal + moving Revenue Assumptions
Annual Revenue   $5,000.00
Revenue Start Date   at Acquisition
Revenue Growth Method   No Growth is Projected