Investment Assumptions
Price of Property see Development Cost Summary
Closing CostsNone
Date of Acquisition1 January 2003
Holding Period10 Years
Inflation Rate3% per Year
Sale Price MethodCapitalize Current NOI
Sale Price Parameter9% Net Cap Rate
Selling Costs6% of Sale Price
Investor's Assumptions
General Vacancy & Credit LossZero
Tax Rate - First Year39.6%
Tax Rate - Following Years39.6%
Capital Gain Rate20%
Cost Recovery Recapture Rate25% - Losses Carried Forward
Present Value Discount Rate Before Debt10% per Year
Present Value Discount Rate Before Tax10% per Year
Present Value Discount Rate After Tax10% per Year
Hard Costs Development Spending Assumptions
Development CostNone
Depreciable LifeNon-Depreciable Asset
Depreciation MethodStraight Line
Include in DrawsZero
Expenditure StartNone
Depreciation Start DateNone
Expenditure Months0 Months
Land Development Spending Assumptions
Development Cost$1,200,000.00
Depreciable LifeNon-Depreciable Asset
Depreciation MethodStraight Line
Include in DrawsZero
Expenditure Start1 March 2003
Depreciation Start Date1 September 2003
Expenditure Months1 Month
Sitework Development Spending Assumptions
Development Cost$302,400.00
Depreciable Life39 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 March 2003
Depreciation Start Date1 September 2003
Expenditure Months1 Month
Foundations & Floor Slab Development Spending Assumptions
Development Cost$289,200.00
Depreciable Life39 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 March 2003
Depreciation Start Date1 September 2003
Expenditure Months1 Month
Structure Development Spending Assumptions
Development Cost$306,000.00
Depreciable Life39 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 April 2003
Depreciation Start Date1 September 2003
Expenditure Months1 Month
Building Skin Development Spending Assumptions
Development Cost$261,600.00
Depreciable Life39 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 May 2003
Depreciation Start Date1 September 2003
Expenditure Months1 Month
Doors, Canopies, Soffits Development Spending Assumptions
Development Cost$58,800.00
Depreciable Life39 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 May 2003
Depreciation Start Date1 September 2003
Expenditure Months1 Month
Storefront Development Spending Assumptions
Development Cost$49,200.00
Depreciable Life39 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 June 2003
Depreciation Start Date1 September 2003
Expenditure Months1 Month
Roof Systems Development Spending Assumptions
Development Cost$206,400.00
Depreciable Life39 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 June 2003
Depreciation Start Date1 September 2003
Expenditure Months1 Month
Electrical Development Spending Assumptions
Development Cost$33,600.00
Depreciable Life39 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 July 2003
Depreciation Start Date1 September 2003
Expenditure Months1 Month
Exterior Contingency Development Spending Assumptions
Development Cost$79,200.00
Depreciable Life39 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 May 2003
Depreciation Start Date1 September 2003
Expenditure Months1 Month
Warehouse Finish Development Spending Assumptions
Development Cost$110,400.00
Depreciable Life39 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 August 2003
Depreciation Start Date1 September 2003
Expenditure Months1 Month
Standard Office Finish Development Spending Assumptions
Development Cost$120,000.00
Depreciable Life39 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 August 2003
Depreciation Start Date1 September 2003
Expenditure Months1 Month
Interior Contingency Development Spending Assumptions
Development Cost$12,000.00
Depreciable Life39 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 July 2003
Depreciation Start Date1 September 2003
Expenditure Months1 Month
Soft Costs Development Spending Assumptions
Development CostNone
Depreciable LifeNon-Depreciable Asset
Depreciation MethodStraight Line
Include in DrawsZero
Expenditure StartNone
Depreciation Start DateNone
Expenditure Months0 Months
Permits Development Spending Assumptions
Development Cost$10,000.00
Depreciable Life39 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 February 2003
Depreciation Start Date1 September 2003
Expenditure Months1 Month
Legal & Title Development Spending Assumptions
Development Cost$18,000.00
Depreciable Life39 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 February 2003
Depreciation Start Date1 September 2003
Expenditure Months1 Month
Architectural/Engineering Development Spending Assumptions
Development Cost$50,000.00
Depreciable Life39 Years
Depreciation MethodStraight Line
Include in Draws100%
Expenditure Start1 February 2003
Depreciation Start Date1 September 2003
Expenditure Months1 Month
Depreciation Assumptions
Depreciable AmountNone
Depreciable Life39 Years
Depreciation MethodStraight Line
Depreciation Start Dateat Acquisition
Construction Draw Construction Draw Assumptions
Draw Percent100%
Draw Rate9% Annually
Draw Period1 Month
Draw TreatmentAccrued and Capitalized
Draw LimitNone
Draw PointsNone
Permanent Permanent Loan Assumptions
Loan Amount100% of Draw Loan Balance
Loan Interest Rate10% Annually
Original Loan Period30 Years
Loan Origination Date1 September 2003
Loan TypeMonthly Payments, Amortizing
Prepayment PenaltyNone
Amortize Points for TaxAmortized over Loan Life
Loan Points ChargedNone
Loan Assumptions
Loan AmountNone
Loan Interest Rate0% Annually
Original Loan Period30 Years
Loan Origination Dateat Acquisition
Loan TypeMonthly Payments, Amortizing
Balloon Payment DueNone
Amortize Points for TaxAmortized over Loan Life
Loan Points ChargedNone
XYZ Lease Revenue Assumptions
Annual Revenue$360,000.00
Revenue Start Date1 September 2003
Revenue PeriodUntil Projected Sale
Revenue Growth MethodAnnual at 3% Annually
Management Fee3%
Expense Assumptions
Annual ExpenseNone
Expense Start Dateat Acquisition
Expense PeriodUntil Projected Sale
Expense Growth MethodNo Growth