Real Estate Investment Analysis - LoopNet...2 Story Class B Office Building 9491 Pittsburgh Ave....
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Real Estate Investment Analysis 2 Story Class B Office Building 9491 Pittsburgh Ave. Building 1 Rancho Cucamonga CA 91730 Jeff Kane REALTOR ® (760) 518-4900 [email protected] CalRE# 01915649 Bridgette Young REALTOR ® (760) 443-5300 [email protected] CalRE# 01847648 Coldwell Banker Commercial
Transcript of Real Estate Investment Analysis - LoopNet...2 Story Class B Office Building 9491 Pittsburgh Ave....
Real Estate Investment Analysis
2 Story Class B Office Building9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 91730
Report Prepared By
Coldwell Banker Commercial Jeff Kane, DRE 01915649; Bridgette Young DRE 01847648760-518-4900 Kane Direct
760-443-5300 Young [email protected]
Real Estate Investment Analysis
2 Story Class B Office Building9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 91730
Report Prepared By
Coldwell Banker Commercial Jeff Kane, DRE 01915649; Bridgette Young DRE 01847648760-518-4900 Kane Direct
760-443-5300 Young [email protected]
Jeff KaneREALTOR®
(760) [email protected]# 01915649
Bridgette YoungREALTOR®
(760) [email protected]# 01847648
Real Estate Investment Analysis
2 Story Class B Office Building9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 91730
Report Prepared By
Coldwell Banker Commercial Jeff Kane, DRE 01915649; Bridgette Young DRE 01847648760-518-4900 Kane Direct
760-443-5300 Young [email protected]
Property Summary Year 1
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
Operating Statement Gross Scheduled Income $238,396- Vacancy Loss $11,916= Gross Effective Income $226,480+ Other Income $0= Gross Operating Income $226,480- Total Operating Expenses $67,992= Net Operating Income (NOI) $158,488
Financial Statistics Occupancy Percent 95.0%Vacancy Percent 5.0%Monthly Income Per Unit $19,866Monthly Income Per Sq Ft $2Annual Expenses Per Unit $67,992Annual Expenses per Sq Ft $7Gross Rent Multiplier 11.95Cap Rate 5.56%
Property Data Purchase Price $2,849,450Number of Units 1Number Occupied 1Number VacantPrice Per Unit $2,849,450Rentable Sq Ft 9,113Price Per Sq Ft $313Taxes $16,980Insurance $8,280
Year Built 2008Land Area .11 acreBuildings 1Stories 2Electric MetersGas MetersParking Spaces 35Roof Flat
CommercialZoning C1
Amenities and Features
PROPERTY FEATURES
• Excellent Owner/User Opportunity• Approximately 9,113 Square Feet• Located near one of the most desirable freeway intersections• Great access to I-10 and I-15• Highly Upgraded Improvements• Built-out Offices Available for Immediate Occupancy• Elevator Serviced• Parking 4:1000• Possible Building Signage• 10% Down SBA Loan Possible• Within minutes to Ontario Intl’ Airport
LOCATION
• Less than a mile from: LA-Ontario International Airport, Ontario Mills Mall, Convention Center, and the Citizens Business Bank Area. • Numerous Other Restaurants, Retail, Business Services and Hotel Amenities Nearby.
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
Property Details, Year 1
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
Future Value Escalator Year 1 Year 2 Year 3 Year 4 Appreciation 4.00% 4.00% 4.00% 4.00%
Vacancy Percent -- C:Calculate or U:Use data until next month Description Month 1 Vacant 5.0% U
Other Income -- Future years use year 5 data with a % annual escalator Year 1 Year 2 Year 3 Year 4 Year 5 Laundry
Income Escalators Gross Scheduled Income 4.00% Other Income
Expenses: Utilities -- Future years use year 5 data with a 2.00% annual escalator Year 1 Year 2 Year 3 Year 4 Year 5 Water $2,676.00 $2,729.52 $2,784.11 $2,839.79 $2,896.59 Electric $16,980.00 $17,319.60 $17,665.99 $18,019.31 $18,379.70 Insurance
Expenses: Services -- Future years use year 5 data with a 2.00% annual escalator Year 1 Year 2 Year 3 Year 4 Year 5 HOA Fees $4,740.00 $4,834.80 $4,931.50 $5,030.13 $5,130.73 Security $2,160.00 $2,203.20 $2,247.26 $2,292.21 $2,338.05 Elevator $2,448.00 $2,496.96 $2,546.90 $2,597.84 $2,649.79
Expenses: Other -- Future years use year 5 data with a 2.00% annual escalator Year 1 Year 2 Year 3 Year 4 Year 5
Expense Escalators Expenses 2.00%
Cost Recovery Period Improvements Years 27.5 Personal Property Years 5.0
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
Property Details, Year 1
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
Other Assumptions Tax Bracket 28.00% Cost to Sell Property 5.00% NPV Discount Rate 10.00%
Investment Comparisons Bank CD Rate 1.00% Mutual Fund 2.20%
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
Amortization Schedule
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
1st MTG - Fxd, Fully Amortized
Loan Amount $2,222,571Loan to Value (LTV) 78.00%Amortization Period 30.0 YearsTerm (Due Date) 30.0 Years
Points 1.0%Interest Rate 4.500%
Monthly Amortization Table with Yearly Total Paid and Loan BalanceYear Payment Principal Interest Total Paid Loan Balance 1 $11,261 $2,988 $8,274 $135,132 $2,186,721 2 $11,261 $3,125 $8,136 $270,264 $2,149,225 3 $11,261 $3,268 $7,993 $405,396 $2,110,005 4 $11,261 $3,418 $7,843 $540,528 $2,068,984 5 $11,261 $3,575 $7,686 $675,660 $2,026,079 6 $11,261 $3,740 $7,521 $810,792 $1,981,203 7 $11,261 $3,912 $7,349 $945,924 $1,934,264 8 $11,261 $4,091 $7,170 $1,081,056 $1,885,170 9 $11,261 $4,279 $6,982 $1,216,188 $1,833,820 10 $11,261 $4,476 $6,785 $1,351,320 $1,780,111 11 $11,261 $4,681 $6,580 $1,486,452 $1,723,935 12 $11,261 $4,896 $6,365 $1,621,584 $1,665,178 13 $11,261 $5,121 $6,140 $1,756,716 $1,603,722 14 $11,261 $5,357 $5,904 $1,891,848 $1,539,442 15 $11,261 $5,603 $5,658 $2,026,980 $1,472,210 16 $11,261 $5,860 $5,401 $2,162,112 $1,401,889 17 $11,261 $6,129 $5,132 $2,297,244 $1,328,337 18 $11,261 $6,411 $4,850 $2,432,376 $1,251,406 19 $11,261 $6,705 $4,556 $2,567,508 $1,170,941 20 $11,261 $7,013 $4,248 $2,702,640 $1,086,780 21 $11,261 $7,336 $3,925 $2,837,772 $998,752 22 $11,261 $7,673 $3,588 $2,972,904 $906,680 23 $11,261 $8,025 $3,236 $3,108,036 $810,379 24 $11,261 $8,394 $2,867 $3,243,168 $709,653 25 $11,261 $8,779 $2,482 $3,378,300 $604,300 26 $11,261 $9,183 $2,078 $3,513,432 $494,108 27 $11,261 $9,605 $1,656 $3,648,564 $378,853 28 $11,261 $10,046 $1,215 $3,783,696 $258,303 29 $11,261 $10,507 $754 $3,918,828 $132,215 30 $11,289 $11,018 $271 $4,054,295 $0
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
Rent Roll at Month 1
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
Rent Roll Summary Possible Rent $19,866- Vacancy Rent $11,916= Occupied Rent $226,480
Total Units 1Vacant 5.0%Occupied 95.0%
Row Tenant SqFt Rent/SqFt CAMS Rent Income0 Various 9,113 $2.18 $0 $19,866 $19,866
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
Annual Property Report, Year 1
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
PricePurchase Price $2,849,450Appreciated Price (EOY 1) $2,963,426
Initial InvestmentDown Payment $712,362+ Closing Costs $56,989+ Loan Points $21,371= Initial Investment $790,722
FinancingMortgage $2,222,571Points 1.0Interest Rate 4.500%Amortized Over 30.0 yearsTerm (Due Date) 30.0 yearsAnnual Payment $135,132Monthly Payment $11,261
IncomeGross Scheduled Income $238,396- Vacancy $11,916= Effective Rental Income $226,480= Annual Gross Operating Income $226,480= Monthly Gross Operating Income $18,873
ExpensesTaxes $16,980+ Insurance $8,280+ Property Management $11,328+ Maintenance & Repair $2,400+ Water $2,676+ Electric $16,980+ HOA Fees $4,740+ Security $2,160+ Elevator $2,448= Annual Operating Expenses $67,992= Monthly Operating Expenses $5,666
Net Operating IncomeAnnual Gross Operating Income $226,480- Annual Operating Expenses $67,992
Net Operating Income Cont.= Annual Net Operating Income $158,488= Monthly Net Operating Income $13,207
Cash FlowNet Operating Income $158,488- Annual Debt Service $135,132= Annual Cash Flow Before Tax $23,356= Monthly Cash Flow Before Tax $1,946- Tax Liability (Savings) @ 28 % $16,378= Annual Cash Flow After Tax $6,978= Monthly Cash Flow After Tax $581
Common IndicatorsCap Rate 5.56%Gross Rent Multiplier 11.95Cash on Cash 2.95%Debt Coverage Ratio 1.17Modified DCR 1.17Default Ratio (Break Even) 89.69
Return on Accumulated InvestmentAccumulated Investment $790,722 Return %Cash Flow Before Tax $23,356 2.95%+ Appreciation @ 4.0% $113,976 14.41%+ Principal Reduction $35,850 4.53%- Tax Liability @ 28.00% $16,378 2.07%= Total Return $156,804 19.83%
Proceeds from SaleEnd of Year Property Value $2,963,426Gross Equity Before Tax $776,705- 5.00 % Cost of Sale $148,171= Proceeds from Sale Before Tax $628,534
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
Annual Property Report, Year 2
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
PricePurchase Price $2,849,450Appreciated Price (BOY 2) $2,963,426Appreciated Price (EOY 2) $3,081,962
Initial InvestmentDown Payment $712,362+ Closing Costs $56,989+ Loan Points $21,371= Initial Investment $790,722
FinancingMortgage $2,222,571Points 1.0Interest Rate 4.500%Amortized Over 30.0 yearsTerm (Due Date) 30.0 yearsAnnual Payment $135,132Monthly Payment $11,261
IncomeGross Scheduled Income $247,932- Vacancy $12,396= Effective Rental Income $235,536= Annual Gross Operating Income $235,536= Monthly Gross Operating Income $19,628
ExpensesTaxes $17,320+ Insurance $8,446+ Property Management $11,772+ Maintenance & Repair $2,448+ Water $2,676+ Electric $16,980+ HOA Fees $4,740+ Security $2,160+ Elevator $2,448= Annual Operating Expenses $69,569= Monthly Operating Expenses $5,797
Net Operating IncomeAnnual Gross Operating Income $235,536
Net Operating Income Cont.- Annual Operating Expenses $69,569= Annual Net Operating Income $165,967= Monthly Net Operating Income $13,831
Cash FlowNet Operating Income $165,967- Annual Debt Service $135,132= Annual Cash Flow Before Tax $30,835= Monthly Cash Flow Before Tax $2,570- Tax Liability (Savings) @ 28 % $18,933= Annual Cash Flow After Tax $11,902= Monthly Cash Flow After Tax $992
Common IndicatorsCap Rate 5.60%Gross Rent Multiplier 11.95Cash on Cash 3.90%Debt Coverage Ratio 1.23Modified DCR 1.23Default Ratio (Break Even) 86.91IRR Before Tax (17.56%)IRR After Tax (15.67%)
Return on Accumulated InvestmentAccumulated Investment $946,374 Return %Cash Flow Before Tax $30,835 3.26%+ Appreciation @ 4.0% $118,156 12.49%+ Principal Reduction $37,496 3.96%- Tax Liability @ 28.00% $18,933 2.00%= Total Return $167,554 17.70%
Proceeds from SaleEnd of Year Property Value $3,081,962Gross Equity Before Tax $932,357- 5.00 % Cost of Sale $154,098= Proceeds from Sale Before Tax $778,259
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
Annual Property Report, Year 3
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
PricePurchase Price $2,849,450Appreciated Price (BOY 3) $3,081,962Appreciated Price (EOY 3) $3,205,238
Initial InvestmentDown Payment $712,362+ Closing Costs $56,989+ Loan Points $21,371= Initial Investment $790,722
FinancingMortgage $2,222,571Points 1.0Interest Rate 4.500%Amortized Over 30.0 yearsTerm (Due Date) 30.0 yearsAnnual Payment $135,132Monthly Payment $11,261
IncomeGross Scheduled Income $257,849- Vacancy $12,888= Effective Rental Income $244,961= Annual Gross Operating Income $244,961= Monthly Gross Operating Income $20,413
ExpensesTaxes $17,666+ Insurance $8,615+ Property Management $12,252+ Maintenance & Repair $2,497+ Water $2,676+ Electric $16,980+ HOA Fees $4,740+ Security $2,160+ Elevator $2,448= Annual Operating Expenses $71,205= Monthly Operating Expenses $5,934
Net Operating IncomeAnnual Gross Operating Income $244,961
Net Operating Income Cont.- Annual Operating Expenses $71,205= Annual Net Operating Income $173,756= Monthly Net Operating Income $14,480
Cash FlowNet Operating Income $173,756- Annual Debt Service $135,132= Annual Cash Flow Before Tax $38,624= Monthly Cash Flow Before Tax $3,219- Tax Liability (Savings) @ 28 % $21,597= Annual Cash Flow After Tax $17,027= Monthly Cash Flow After Tax $1,419
Common IndicatorsCap Rate 5.64%Gross Rent Multiplier 11.95Cash on Cash 4.88%Debt Coverage Ratio 1.29Modified DCR 1.29Default Ratio (Break Even) 84.23IRR Before Tax 2.64%IRR After Tax 0.38%
Return on Accumulated InvestmentAccumulated Investment $1,108,475 Return %Cash Flow Before Tax $38,624 3.48%+ Appreciation @ 4.0% $122,881 11.09%+ Principal Reduction $39,220 3.54%- Tax Liability @ 28.00% $21,597 1.95%= Total Return $179,128 16.16%
Proceeds from SaleEnd of Year Property Value $3,205,238Gross Equity Before Tax $1,094,458- 5.00 % Cost of Sale $160,262= Proceeds from Sale Before Tax $934,196
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
Annual Property Report, Year 4
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
PricePurchase Price $2,849,450Appreciated Price (BOY 4) $3,205,238Appreciated Price (EOY 4) $3,333,446
Initial InvestmentDown Payment $712,362+ Closing Costs $56,989+ Loan Points $21,371= Initial Investment $790,722
FinancingMortgage $2,222,571Points 1.0Interest Rate 4.500%Amortized Over 30.0 yearsTerm (Due Date) 30.0 yearsAnnual Payment $135,132Monthly Payment $11,261
IncomeGross Scheduled Income $268,163- Vacancy $13,404= Effective Rental Income $254,759= Annual Gross Operating Income $254,759= Monthly Gross Operating Income $21,230
ExpensesTaxes $18,019+ Insurance $8,787+ Property Management $12,732+ Maintenance & Repair $2,547+ Water $2,676+ Electric $16,980+ HOA Fees $4,740+ Security $2,160+ Elevator $2,448= Annual Operating Expenses $72,864= Monthly Operating Expenses $6,072
Net Operating IncomeAnnual Gross Operating Income $254,759
Net Operating Income Cont.- Annual Operating Expenses $72,864= Annual Net Operating Income $181,895= Monthly Net Operating Income $15,158
Cash FlowNet Operating Income $181,895- Annual Debt Service $135,132= Annual Cash Flow Before Tax $46,763= Monthly Cash Flow Before Tax $3,897- Tax Liability (Savings) @ 28 % $24,380= Annual Cash Flow After Tax $22,383= Monthly Cash Flow After Tax $1,865
Common IndicatorsCap Rate 5.67%Gross Rent Multiplier 11.95Cash on Cash 5.91%Debt Coverage Ratio 1.35Modified DCR 1.35Default Ratio (Break Even) 81.64IRR Before Tax 9.37%IRR After Tax 5.79%
Return on Accumulated InvestmentAccumulated Investment $1,277,293 Return %Cash Flow Before Tax $46,763 3.66%+ Appreciation @ 4.0% $127,797 10.01%+ Principal Reduction $41,021 3.21%- Tax Liability @ 28.00% $24,380 1.91%= Total Return $191,201 14.97%
Proceeds from SaleEnd of Year Property Value $3,333,446Gross Equity Before Tax $1,263,276- 5.00 % Cost of Sale $166,672= Proceeds from Sale Before Tax $1,096,604
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
Annual Property Report, Year 5
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
PricePurchase Price $2,849,450Appreciated Price (BOY 5) $3,333,446Appreciated Price (EOY 5) $3,466,790
Initial InvestmentDown Payment $712,362+ Closing Costs $56,989+ Loan Points $21,371= Initial Investment $790,722
FinancingMortgage $2,222,571Points 1.0Interest Rate 4.500%Amortized Over 30.0 yearsTerm (Due Date) 30.0 yearsAnnual Payment $135,132Monthly Payment $11,261
IncomeGross Scheduled Income $278,890- Vacancy $13,944= Effective Rental Income $264,946= Annual Gross Operating Income $264,946= Monthly Gross Operating Income $22,079
ExpensesTaxes $18,380+ Insurance $8,963+ Property Management $13,248+ Maintenance & Repair $2,598+ Water $2,676+ Electric $16,980+ HOA Fees $4,740+ Security $2,160+ Elevator $2,448= Annual Operating Expenses $74,583= Monthly Operating Expenses $6,215
Net Operating IncomeAnnual Gross Operating Income $264,946
Net Operating Income Cont.- Annual Operating Expenses $74,583= Annual Net Operating Income $190,363= Monthly Net Operating Income $15,864
Cash FlowNet Operating Income $190,363- Annual Debt Service $135,132= Annual Cash Flow Before Tax $55,231= Monthly Cash Flow Before Tax $4,603- Tax Liability (Savings) @ 28 % $27,279= Annual Cash Flow After Tax $27,952= Monthly Cash Flow After Tax $2,329
Common IndicatorsCap Rate 5.71%Gross Rent Multiplier 11.95Cash on Cash 6.98%Debt Coverage Ratio 1.41Modified DCR 1.41Default Ratio (Break Even) 79.15IRR Before Tax 12.33%IRR After Tax 8.32%
Return on Accumulated InvestmentAccumulated Investment $1,453,114 Return %Cash Flow Before Tax $55,231 3.80%+ Appreciation @ 4.0% $132,916 9.15%+ Principal Reduction $42,905 2.95%- Tax Liability @ 28.00% $27,279 1.88%= Total Return $203,773 14.02%
Proceeds from SaleEnd of Year Property Value $3,466,790Gross Equity Before Tax $1,439,097- 5.00 % Cost of Sale $173,340= Proceeds from Sale Before Tax $1,265,757
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
Annual Property Report, Year 6
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
PricePurchase Price $2,849,450Appreciated Price (BOY 6) $3,466,790Appreciated Price (EOY 6) $3,605,462
Initial InvestmentDown Payment $712,362+ Closing Costs $56,989+ Loan Points $21,371= Initial Investment $790,722
FinancingMortgage $2,222,571Points 1.0Interest Rate 4.500%Amortized Over 30.0 yearsTerm (Due Date) 30.0 yearsAnnual Payment $135,132Monthly Payment $11,261
IncomeGross Scheduled Income $290,046- Vacancy $14,508= Effective Rental Income $275,538= Annual Gross Operating Income $275,538= Monthly Gross Operating Income $22,962
ExpensesTaxes $18,747+ Insurance $9,142+ Property Management $13,776+ Maintenance & Repair $2,650+ Water $2,676+ Electric $16,980+ HOA Fees $4,740+ Security $2,160+ Elevator $2,448= Annual Operating Expenses $76,338= Monthly Operating Expenses $6,361
Net Operating IncomeAnnual Gross Operating Income $275,538
Net Operating Income Cont.- Annual Operating Expenses $76,338= Annual Net Operating Income $199,200= Monthly Net Operating Income $16,600
Cash FlowNet Operating Income $199,200- Annual Debt Service $135,132= Annual Cash Flow Before Tax $64,068= Monthly Cash Flow Before Tax $5,339- Tax Liability (Savings) @ 28 % $30,305= Annual Cash Flow After Tax $33,763= Monthly Cash Flow After Tax $2,814
Common IndicatorsCap Rate 5.75%Gross Rent Multiplier 11.95Cash on Cash 8.10%Debt Coverage Ratio 1.47Modified DCR 1.47Default Ratio (Break Even) 76.75IRR Before Tax 13.79%IRR After Tax 9.68%
Return on Accumulated InvestmentAccumulated Investment $1,636,218 Return %Cash Flow Before Tax $64,068 3.92%+ Appreciation @ 4.0% $138,228 8.45%+ Principal Reduction $44,876 2.74%- Tax Liability @ 28.00% $30,305 1.85%= Total Return $216,867 13.25%
Proceeds from SaleEnd of Year Property Value $3,605,462Gross Equity Before Tax $1,622,201- 5.00 % Cost of Sale $180,273= Proceeds from Sale Before Tax $1,441,928
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
Annual Property Report, Year 7
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
PricePurchase Price $2,849,450Appreciated Price (BOY 7) $3,605,462Appreciated Price (EOY 7) $3,749,678
Initial InvestmentDown Payment $712,362+ Closing Costs $56,989+ Loan Points $21,371= Initial Investment $790,722
FinancingMortgage $2,222,571Points 1.0Interest Rate 4.500%Amortized Over 30.0 yearsTerm (Due Date) 30.0 yearsAnnual Payment $135,132Monthly Payment $11,261
IncomeGross Scheduled Income $301,648- Vacancy $15,084= Effective Rental Income $286,564= Annual Gross Operating Income $286,564= Monthly Gross Operating Income $23,880
ExpensesTaxes $19,122+ Insurance $9,325+ Property Management $14,328+ Maintenance & Repair $2,703+ Water $2,676+ Electric $16,980+ HOA Fees $4,740+ Security $2,160+ Elevator $2,448= Annual Operating Expenses $78,141= Monthly Operating Expenses $6,512
Net Operating IncomeAnnual Gross Operating Income $286,564
Net Operating Income Cont.- Annual Operating Expenses $78,141= Annual Net Operating Income $208,423= Monthly Net Operating Income $17,369
Cash FlowNet Operating Income $208,423- Annual Debt Service $135,132= Annual Cash Flow Before Tax $73,291= Monthly Cash Flow Before Tax $6,108- Tax Liability (Savings) @ 28 % $33,465= Annual Cash Flow After Tax $39,826= Monthly Cash Flow After Tax $3,319
Common IndicatorsCap Rate 5.78%Gross Rent Multiplier 11.95Cash on Cash 9.27%Debt Coverage Ratio 1.54Modified DCR 1.54Default Ratio (Break Even) 74.42IRR Before Tax 14.57%IRR After Tax 10.47%
Return on Accumulated InvestmentAccumulated Investment $1,826,911 Return %Cash Flow Before Tax $73,291 4.01%+ Appreciation @ 4.0% $143,754 7.87%+ Principal Reduction $46,939 2.57%- Tax Liability @ 28.00% $33,465 1.83%= Total Return $230,519 12.62%
Proceeds from SaleEnd of Year Property Value $3,749,678Gross Equity Before Tax $1,812,894- 5.00 % Cost of Sale $187,484= Proceeds from Sale Before Tax $1,625,410
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
Annual Property Report, Year 8
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
PricePurchase Price $2,849,450Appreciated Price (BOY 8) $3,749,678Appreciated Price (EOY 8) $3,899,666
Initial InvestmentDown Payment $712,362+ Closing Costs $56,989+ Loan Points $21,371= Initial Investment $790,722
FinancingMortgage $2,222,571Points 1.0Interest Rate 4.500%Amortized Over 30.0 yearsTerm (Due Date) 30.0 yearsAnnual Payment $135,132Monthly Payment $11,261
IncomeGross Scheduled Income $313,714- Vacancy $15,684= Effective Rental Income $298,030= Annual Gross Operating Income $298,030= Monthly Gross Operating Income $24,836
ExpensesTaxes $19,505+ Insurance $9,511+ Property Management $14,904+ Maintenance & Repair $2,757+ Water $2,676+ Electric $16,980+ HOA Fees $4,740+ Security $2,160+ Elevator $2,448= Annual Operating Expenses $79,993= Monthly Operating Expenses $6,666
Net Operating IncomeAnnual Gross Operating Income $298,030
Net Operating Income Cont.- Annual Operating Expenses $79,993= Annual Net Operating Income $218,037= Monthly Net Operating Income $18,170
Cash FlowNet Operating Income $218,037- Annual Debt Service $135,132= Annual Cash Flow Before Tax $82,905= Monthly Cash Flow Before Tax $6,909- Tax Liability (Savings) @ 28 % $36,760= Annual Cash Flow After Tax $46,145= Monthly Cash Flow After Tax $3,845
Common IndicatorsCap Rate 5.81%Gross Rent Multiplier 11.95Cash on Cash 10.48%Debt Coverage Ratio 1.61Modified DCR 1.61Default Ratio (Break Even) 72.18IRR Before Tax 14.97%IRR After Tax 10.95%
Return on Accumulated InvestmentAccumulated Investment $2,025,512 Return %Cash Flow Before Tax $82,905 4.09%+ Appreciation @ 4.0% $149,507 7.38%+ Principal Reduction $49,094 2.42%- Tax Liability @ 28.00% $36,760 1.81%= Total Return $244,746 12.08%
Proceeds from SaleEnd of Year Property Value $3,899,666Gross Equity Before Tax $2,011,495- 5.00 % Cost of Sale $194,983= Proceeds from Sale Before Tax $1,816,512
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
Annual Property Report, Year 9
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
PricePurchase Price $2,849,450Appreciated Price (BOY 9) $3,899,666Appreciated Price (EOY 9) $4,055,654
Initial InvestmentDown Payment $712,362+ Closing Costs $56,989+ Loan Points $21,371= Initial Investment $790,722
FinancingMortgage $2,222,571Points 1.0Interest Rate 4.500%Amortized Over 30.0 yearsTerm (Due Date) 30.0 yearsAnnual Payment $135,132Monthly Payment $11,261
IncomeGross Scheduled Income $326,263- Vacancy $16,308= Effective Rental Income $309,955= Annual Gross Operating Income $309,955= Monthly Gross Operating Income $25,830
ExpensesTaxes $19,895+ Insurance $9,701+ Property Management $15,492+ Maintenance & Repair $2,812+ Water $2,676+ Electric $16,980+ HOA Fees $4,740+ Security $2,160+ Elevator $2,448= Annual Operating Expenses $81,883= Monthly Operating Expenses $6,824
Net Operating IncomeAnnual Gross Operating Income $309,955
Net Operating Income Cont.- Annual Operating Expenses $81,883= Annual Net Operating Income $228,072= Monthly Net Operating Income $19,006
Cash FlowNet Operating Income $228,072- Annual Debt Service $135,132= Annual Cash Flow Before Tax $92,940= Monthly Cash Flow Before Tax $7,745- Tax Liability (Savings) @ 28 % $40,202= Annual Cash Flow After Tax $52,738= Monthly Cash Flow After Tax $4,395
Common IndicatorsCap Rate 5.85%Gross Rent Multiplier 11.95Cash on Cash 11.75%Debt Coverage Ratio 1.69Modified DCR 1.69Default Ratio (Break Even) 70.01IRR Before Tax 15.18%IRR After Tax 11.25%
Return on Accumulated InvestmentAccumulated Investment $2,232,350 Return %Cash Flow Before Tax $92,940 4.16%+ Appreciation @ 4.0% $155,488 6.97%+ Principal Reduction $51,350 2.30%- Tax Liability @ 28.00% $40,202 1.80%= Total Return $259,576 11.63%
Proceeds from SaleEnd of Year Property Value $4,055,654Gross Equity Before Tax $2,218,333- 5.00 % Cost of Sale $202,783= Proceeds from Sale Before Tax $2,015,550
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
Annual Property Report, Year 10
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
PricePurchase Price $2,849,450Appreciated Price (BOY 10) $4,055,654Appreciated Price (EOY 10) $4,217,882
Initial InvestmentDown Payment $712,362+ Closing Costs $56,989+ Loan Points $21,371= Initial Investment $790,722
FinancingMortgage $2,222,571Points 1.0Interest Rate 4.500%Amortized Over 30.0 yearsTerm (Due Date) 30.0 yearsAnnual Payment $135,132Monthly Payment $11,261
IncomeGross Scheduled Income $339,314- Vacancy $16,968= Effective Rental Income $322,346= Annual Gross Operating Income $322,346= Monthly Gross Operating Income $26,862
ExpensesTaxes $20,293+ Insurance $9,895+ Property Management $16,116+ Maintenance & Repair $2,868+ Water $2,676+ Electric $16,980+ HOA Fees $4,740+ Security $2,160+ Elevator $2,448= Annual Operating Expenses $83,835= Monthly Operating Expenses $6,986
Net Operating IncomeAnnual Gross Operating Income $322,346
Net Operating Income Cont.- Annual Operating Expenses $83,835= Annual Net Operating Income $238,511= Monthly Net Operating Income $19,876
Cash FlowNet Operating Income $238,511- Annual Debt Service $135,132= Annual Cash Flow Before Tax $103,379= Monthly Cash Flow Before Tax $8,615- Tax Liability (Savings) @ 28 % $43,785= Annual Cash Flow After Tax $59,594= Monthly Cash Flow After Tax $4,966
Common IndicatorsCap Rate 5.88%Gross Rent Multiplier 11.95Cash on Cash 13.07%Debt Coverage Ratio 1.77Modified DCR 1.77Default Ratio (Break Even) 67.93IRR Before Tax 15.26%IRR After Tax 11.44%
Return on Accumulated InvestmentAccumulated Investment $2,447,767 Return %Cash Flow Before Tax $103,379 4.22%+ Appreciation @ 4.0% $161,708 6.61%+ Principal Reduction $53,709 2.19%- Tax Liability @ 28.00% $43,785 1.79%= Total Return $275,011 11.24%
Proceeds from SaleEnd of Year Property Value $4,217,882Gross Equity Before Tax $2,433,750- 5.00 % Cost of Sale $210,894= Proceeds from Sale Before Tax $2,222,856
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
Financing Spreadsheet
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
Year Year 1 Year 2 Year 3 Year 4 Year 5
PRICEPurchase Price $2,849,450 $2,849,450 $2,849,450 $2,849,450 $2,849,450Escalated Price (BOY) $2,849,450 $2,963,426 $3,081,962 $3,205,238 $3,333,446Escalated Price (EOY) $2,963,426 $3,081,962 $3,205,238 $3,333,446 $3,466,790Price Escalator: Appreciation 4.00 % 4.00 % 4.00 % 4.00 % 4.00 %
INITIAL INVESTMENTDown Payment $712,362 $712,362 $712,362 $712,362 $712,362+ Closing Costs + $56,989 + $56,989 + $56,989 + $56,989 + $56,989+ Other Costs + $0 + $0 + $0 + $0 + $0+ Rehab Costs + $0 + $0 + $0 + $0 + $0= Total Investment = $790,722 = $790,722 = $790,722 = $790,722 = $790,722
1st MTG - Fxd, Fully AmortizedLoan Amount $2,222,571 $2,222,571 $2,222,571 $2,222,571 $2,222,571Loan to Value (LTV) 78.00 % 78.00 % 78.00 % 78.00 % 78.00 %Interest Rate 4.500 % 4.500 % 4.500 % 4.500 % 4.500 %Amortization Period 30.0 Yrs 30.0 Yrs 30.0 Yrs 30.0 Yrs 30.0 YrsTerm (Due Date) 30.0 Yrs 30.0 Yrs 30.0 Yrs 30.0 Yrs 30.0 YrsPoints 1.0 % 1.0 % 1.0 % 1.0 % 1.0 %
Annual Principal $35,850 $37,496 $39,220 $41,021 $42,905+ Annual Interest + $99,282 + $97,636 + $95,912 + $94,111 + $92,227= Annual Debt Service = $135,132 = $135,132 = $135,132 = $135,132 = $135,132
Loan Balance (BOY) $2,222,571 $2,186,721 $2,149,225 $2,110,005 $2,068,984- Annual Principal + $35,850 + $37,496 + $39,220 + $41,021 + $42,905= Loan Balance (EOY) = $2,186,721 = $2,149,225 = $2,110,005 = $2,068,984 = $2,026,079
PRINCIPAL TRACKING1st Mortgage Loan Amount $2,222,571 $2,222,571 $2,222,571 $2,222,571 $2,222,571- 1st Mortgage Loan Balance (EOY) + $2,186,721 + $2,149,225 + $2,110,005 + $2,068,984 + $2,026,079= Principal Paid (Interest Deferred) = $35,850 = $73,346 = $112,566 = $153,587 = $196,492
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
Before-Tax Cash Flow Spreadsheet
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
Year Year 1 Year 2 Year 3 Year 4 Year 5
ANNUAL INCOMEGross Scheduled Income $238,396 $247,932 $257,849 $268,163 $278,890- Vacancy + $11,916 + $12,396 + $12,888 + $13,404 + $13,944= Effective Rental Income = $226,480 = $235,536 = $244,961 = $254,759 = $264,946+ Other Income + $0 + $0 + $0 + $0 + $0= Gross Operating Income = $226,480 = $235,536 = $244,961 = $254,759 = $264,946
ANNUAL OPERATING EXPENSESTaxes $16,980 $17,320 $17,666 $18,019 $18,380+ Insurance + $8,280 + $8,446 + $8,615 + $8,787 + $8,963+ Property Management + $11,328 + $11,772 + $12,252 + $12,732 + $13,248+ Maintenance & Repair + $2,400 + $2,448 + $2,497 + $2,547 + $2,598+ Utilities + $19,656 + $20,049 + $20,450 + $20,859 + $21,276+ Services + $9,348 + $9,535 + $9,726 + $9,920 + $10,119+ Other Expenses + $0 + $0 + $0 + $0 + $0= Annual Operating Expenses = $67,992 = $69,569 = $71,205 = $72,864 = $74,583
NET OPERATING INCOMEGross Operating Income $226,480 $235,536 $244,961 $254,759 $264,946- Annual Operating Expenses + $67,992 + $69,569 + $71,205 + $72,864 + $74,583= Net Operating Income = $158,488 = $165,967 = $173,756 = $181,895 = $190,363
ANNUAL DEBT SERVICEPrincipal and Int. 1st Mortgage $135,132 $135,132 $135,132 $135,132 $135,132
ANNUAL CASH FLOW BEFORE TAXNet Operating Income $158,488 $165,967 $173,756 $181,895 $190,363- Annual Debt Service + $135,132 + $135,132 + $135,132 + $135,132 + $135,132- Capital Additions + $0 + $0 + $0 + $0 + $0= Annual Cash Flow Before Tax = $23,356 = $30,835 = $38,624 = $46,763 = $55,231
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
After-Tax Cash Flow Spreadsheet
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
Year Year 1 Year 2 Year 3 Year 4 Year 5
ANNUAL CASH FLOW BEFORE TAXGross Scheduled Income $238,396 $247,932 $257,849 $268,163 $278,890- Vacancy + $11,916 + $12,396 + $12,888 + $13,404 + $13,944= Effective Rental Income = $226,480 = $235,536 = $244,961 = $254,759 = $264,946+ Other Income + $0 + $0 + $0 + $0 + $0= Gross Operating Income = $226,480 = $235,536 = $244,961 = $254,759 = $264,946- Annual Operating Expenses + $67,992 + $69,569 + $71,205 + $72,864 + $74,583= Net Operating Income = $158,488 = $165,967 = $173,756 = $181,895 = $190,363- Annual Debt Service + $135,132 + $135,132 + $135,132 + $135,132 + $135,132- Capital Additions + $0 + $0 + $0 + $0 + $0= Annual Cash Flow Before Tax = $23,356 = $30,835 = $38,624 = $46,763 = $55,231
REAL ESTATE TAXABLE INCOMENet Operating Income $158,488 $165,967 $173,756 $181,895 $190,363- Interest 1st Mortgage + $99,282 + $97,636 + $95,912 + $94,111 + $92,227- Points Amortization + $712 + $712 + $712 + $712 + $712- Cost Recovery (Improvements) + $0 + $0 + $0 + $0 + $0- Cost Recovery (Personal) + $0 + $0 + $0 + $0 + $0- Cost Recovery (Cap. Add.) + $0 + $0 + $0 + $0 + $0= R.E. Taxable Income (Loss) = $58,494 = $67,618 = $77,131 = $87,071 = $97,424
PASSIVE LOSS EXEMPTIONPassive Loss Exemption Available $0 $0 $0 $0 $0Passive Losses Allowed $0 $0 $0 $0 $0
ANNUAL SUSPENDED LOSSESR.E. Taxable Income (Loss) $58,494 $67,618 $77,131 $87,071 $97,424Passive Losses Allowed $0 $0 $0 $0 $0Annual Suspended Losses $0 $0 $0 $0 $0
TAX LIABILITY (SAVINGS)R.E. Taxable Income (Min 0) $58,494 $67,618 $77,131 $87,071 $97,424- Suspended Losses Allowed + $0 + $0 + $0 + $0 + $0= Adjusted R.E. Taxable Income = $58,494 = $67,618 = $77,131 = $87,071 = $97,424Tax Liability (Savings) @ 28.00% $16,378 $18,933 $21,597 $24,380 $27,279
ANNUAL CASH FLOW AFTER TAXAnnual Cash Flow Before Tax $23,356 $30,835 $38,624 $46,763 $55,231- Tax Liability (Savings) @ 28 % + $16,378 + $18,933 + $21,597 + $24,380 + $27,279= Cash Flow After Tax = $6,978 = $11,902 = $17,027 = $22,383 = $27,952
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
After-Tax Proceeds from Sale Spreadsheet
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
Year Year 1 Year 2 Year 3 Year 4 Year 5
SALES PROCEEDS BEFORE TAXSale Price (EOY) $2,963,426 $3,081,962 $3,205,238 $3,333,446 $3,466,790- Cost of Sale @ 5.00% + $148,171 + $154,098 + $160,262 + $166,672 + $173,340- 1st Mortgage Loan Balance + $2,186,721 + $2,149,225 + $2,110,005 + $2,068,984 + $2,026,079= Sale Proceeds before Tax = $628,534 = $778,639 = $934,971 = $1,097,790 = $1,267,371
BASIS AT ACQUISITIONPurchase Price $2,849,450 $2,849,450 $2,849,450 $2,849,450 $2,849,450+ Capitalized Closing Costs + $56,989 + $56,989 + $56,989 + $56,989 + $56,989+ Rehab Costs + $0 + $0 + $0 + $0 + $0+ Basis Adjustments + $0 + $0 + $0 + $0 + $0= Basis at Acquisition = $2,906,439 = $2,906,439 = $2,906,439 = $2,906,439 = $2,906,439
COST RECOVERY (CR)Annual CR (Improvements) $0 $0 $0 $0 $0+ Annual CR (Personal) + $0 + $0 + $0 + $0 + $0+ Annual CR (Cap. Add.) + $0 + $0 + $0 + $0 + $0= Annual Cost Recovery Taken = $0 = $0 = $0 = $0 = $0
Total Cost Recovery Taken $0 $0 $0 $0 $0
ADJUSTED BASIS AT SALEBasis at Beginning of Year $2,906,439 $2,906,439 $2,906,439 $2,906,439 $2,906,439+ Annual Capital Additions + $0 + $0 + $0 + $0 + $0- Annual Cost Recovery Taken + $0 + $0 + $0 + $0 + $0= Adjusted Basis at Sale = $2,906,439 = $2,906,439 = $2,906,439 = $2,906,439 = $2,906,439
GAIN (LOSS) ON SALESale Price (EOY) $2,963,426 $3,081,962 $3,205,238 $3,333,446 $3,466,790- Cost of Sale @ 5.00% + $148,171 + $154,098 + $160,262 + $166,672 + $173,340- Adjusted Basis at Sale + $2,906,439 + $2,906,439 + $2,906,439 + $2,906,439 + $2,906,439= Total Gain (Loss) = ($91,184) = $21,425 = $138,537 = $260,335 = $387,011- Total Cost Recovery Taken (LTG) + $0 + $0 + $0 + $0 + $0= Capital Gain from Apprec. (Min 0) = $0 = $21,425 = $138,537 = $260,335 = $387,011
TAXED AS ORDINARY INCOMEUnamortized Loan Points ($20,659) ($19,946) ($19,234) ($18,522) ($17,809)+ Suspended Losses (from ATCF) + $0 + $0 + $0 + $0 + $0+ Loss at Disposition - $91,184 + $0 + $0 + $0 + $0= Taxed as Ordinary Income = ($111,843) = ($19,946) = ($19,234) = ($18,522) = ($17,809)
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
After-Tax Proceeds from Sale Spreadsheet
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
Year Year 1 Year 2 Year 3 Year 4 Year 5
SALES PROCEEDS AFTER TAXSale Proceeds before Tax $628,534 $778,639 $934,971 $1,097,790 $1,267,371- Tax (Savings) Ord. Inc. @ 28.00% - $31,316 - $5,585 - $5,385 - $5,186 - $4,987- Cost Recovery Recapture @ 25.00% + $0 + $0 + $0 + $0 + $0- Federal Tax on Gain @ 15.00% + $0 + $3,214 + $20,781 + $39,050 + $58,052- State Tax on Gain @ 15.00% + $0 + $3,214 + $20,781 + $39,050 + $58,052= Sale Proceeds after Tax = $659,850 = $777,796 = $898,794 = $1,024,876 = $1,156,254
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
Equity Spreadsheet
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
Year Year 1 Year 2 Year 3 Year 4 Year 5
SALES PROCEEDS BEFORE TAXSale Price (EOY) $2,963,426 $3,081,962 $3,205,238 $3,333,446 $3,466,790- Cost of Sale @ 5.00% + $148,171 + $154,098 + $160,262 + $166,672 + $173,340- 1st Mortgage Loan Balance + $2,186,721 + $2,149,225 + $2,110,005 + $2,068,984 + $2,026,079= Sale Proceeds before Tax = $628,534 = $778,639 = $934,971 = $1,097,790 = $1,267,371
GROSS EQUITY AT PURCHASEPurchase Price $2,849,450 $2,849,450 $2,849,450 $2,849,450 $2,849,450- Loan Amount + $2,222,571 + $2,222,571 + $2,222,571 + $2,222,571 + $2,222,571= Gross Equity at Purchase = $626,879 = $626,879 = $626,879 = $626,879 = $626,879
GROSS EQUITY (EOY)Gross Equity (BOY) $626,879 $776,705 $932,357 $1,094,458 $1,263,276+ Appreciation Equity + $113,976 + $118,156 + $122,881 + $127,797 + $132,916+ Principal Paydown Equity + $35,850 + $37,496 + $39,220 + $41,021 + $42,905= Gross Equity (EOY) = $776,705 = $932,357 = $1,094,458 = $1,263,276 = $1,439,097
GROSS EQUITY PLUS RESERVESGross Equity (EOY) $776,705 $932,357 $1,094,458 $1,263,276 $1,439,097+ Reserve Balance + $0 + $0 + $0 + $0 + $0= Total Gross Equity = $776,705 = $932,357 = $1,094,458 = $1,263,276 = $1,439,097
RETURN ON GROSS EQUITY (EOY)Annual Cash Flow Before Tax $23,356 $30,835 $38,624 $46,763 $55,231div Gross Equity (EOY) $776,705 $932,357 $1,094,458 $1,263,276 $1,439,097= Return on Gross Equity = 3.01 % = 3.31 % = 3.53 % = 3.70 % = 3.84 %
NET EQUITY (EOY)Gross Equity (EOY) $776,705 $932,357 $1,094,458 $1,263,276 $1,439,097- Cost of Sale @ 5.00% + $148,171 + $154,098 + $160,262 + $166,672 + $173,340= Net Equity (EOY) = $628,534 = $778,259 = $934,196 = $1,096,604 = $1,265,757
INDICATORSCap Rate 5.56 % 5.60 % 5.64 % 5.67 % 5.71 %Gross Rent Multiplier 11.95 11.95 11.95 11.95 11.95Cash on Cash 2.95 % 3.90 % 4.88 % 5.91 % 6.98 %Debt Coverage Ratio 1.17 1.23 1.29 1.35 1.41Modified DCR 1.17 1.23 1.29 1.35 1.41Default Ratio (Break Even) 89.69 % 86.91 % 84.23 % 81.64 % 79.15 %IRR Before Tax (17.56 %) 2.64 % 9.37 % 12.33 % 13.79 %IRR After Tax (15.67 %) 0.38 % 5.79 % 8.32 % 9.68 %NPV After Tax ($184,515) ($131,736) ($86,473) ($46,458) ($11,163)
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
Equity Spreadsheet
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
Year Year 1 Year 2 Year 3 Year 4 Year 5
$ RETURN ON INVESTMENTCash Flow Before Tax $23,356 $30,835 $38,624 $46,763 $55,231+ Appreciation + $113,976 + $118,156 + $122,881 + $127,797 + $132,916+ Principal Paydown + $35,850 + $37,496 + $39,220 + $41,021 + $42,905+ Tax Liability/Savings - $16,378 - $18,933 - $21,597 - $24,380 - $27,279= Total Investment Return = $156,804 = $167,554 = $179,128 = $191,201 = $203,773
Initial Investment $790,722 $790,722 $790,722 $790,722 $790,722Return on Cash Flow Before Tax 2.95 % 3.90 % 4.88 % 5.91 % 6.98 %+ Return on Appreciation + 14.41 % + 14.94 % + 15.54 % + 16.16 % + 16.81 %+ Return on Principal Paydown + 4.53 % + 4.74 % + 4.96 % + 5.19 % + 5.43 %+ Return Tax Liability/Savings - 2.07 % - 2.39 % - 2.73 % - 3.08 % - 3.45 %= Return on Initial Investment = 19.83 % = 21.19 % = 22.65 % = 24.18 % = 25.77 %
Accumulated Investment $790,722 $946,374 $1,108,475 $1,277,293 $1,453,114Return on Cash Flow Before Tax 2.95 % 3.26 % 3.48 % 3.66 % 3.80 %+ Return on Appreciation + 14.41 % + 12.49 % + 11.09 % + 10.01 % + 9.15 %+ Return on Principal Paydown + 4.53 % + 3.96 % + 3.54 % + 3.21 % + 2.95 %+ Return Tax Liability/Savings - 2.07 % - 2.00 % - 1.95 % - 1.91 % - 1.88 %= Return on Accumulated Investment = 19.83 % = 17.70 % = 16.16 % = 14.97 % = 14.02 %
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
Equity Values Chart
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
This chart shows the Price, Net Equity, and Loan valuesfor the property at 9491 Pittsburgh Ave. Building 1 over a period of 30 years.
The lower chart axis is years.Future assumptions have been factored in.See the spreadsheet for raw data.
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
Investment Comparison Chart
9491 Pittsburgh Ave. Building 1Rancho Cucamonga CA 917302 Story Class B Office Building
This chart compares the return on a $790,722 investment in the property at 9491 Pittsburgh Ave. Building 1with a Bank CD at 1.0% and a Mutual Fund at 2.2% over a period of 30 years.
The lower chart axis is years.Future assumptions have been factored in.See the spreadsheet for raw data.
Prepared ByJeff Kane, DRE 01915649; Bridgette Young DRE 01847648, 760-518-4900 Kane Direct, 760-443-5300 Young Direct, [email protected], [email protected] Banker Commercial
This report has been prepared based on information furnished by sources deemed reliable, however no representationor warranty, either express or implied, is made to its accuracy. All dollar values have rounded to the nearest dollar.
