Owner Lease Analysis Summary

73 Hillside Way

Name RSF USF Total $ PV @ 11% PV/RSF PV/USF
Ackerman Proposal 4,000 3,800 108,242 75,523 18.88 19.87
Maxwell Proposal 4,000 3,800 72,500 38,875 9.72 10.23
Foster Proposal 4,000 3,800 108,019 73,364 18.34 19.31


     


PV/Year/RSF Comparison

73 Hillside Way


  Ackerman Proposal Maxwell Proposal Foster Proposal
  3.8 1.9 3.7


     


Owner 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 108,242 27.06 28.48
Suite     Avg Annual Effective 21,648 5.41 5.70
Rentable SF 4,000   PV @ 11% 75,523 18.88 19.87
Usable SF 3,800   Annual PV @ 11% 15,105 3.78 3.97


  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 (5,400) (5,778) (6,182) (6,615) (7,078) 0 (31,054)
+ tax 0 (1,000) (1,020) (1,040) (1,061) (1,082) 0 (5,204)
+ net TI (31,500) 0 0 0 0 0 0 (31,500)
+ Commission (10,000) 0 0 0 0 0 0 (10,000)
+ parking 0 0 0 0 0 0 0 0
+ net buyout 0 0 0 0 0 0 0 0
+ moving 0 0 0 0 0 0 0 0
- free rent 0 0 0 0 0 0 0 0
Total $ (41,500) 30,800 30,402 29,977 29,524 29,039 0 108,242
Total PV (41,500) 29,247 26,008 23,104 20,499 18,165 0 75,523
$/RSF (10.38) 7.70 7.60 7.49 7.38 7.26 0.00 27.06
PV/RSF (10.38) 7.31 6.50 5.78 5.12 4.54 0.00 18.88
$/USF (10.92) 8.11 8.00 7.89 7.77 7.64 0.00 28.48
PV/USF (10.92) 7.70 6.84 6.08 5.39 4.78 0.00 19.87


     


Total $/USF

Ackerman Proposal


  Start 2001 2002 2003 2004 2005 End
  -10.9 8.1 8.0 7.9 7.8 7.6 0.0


     


Owner 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 72,500 18.12 19.08
Suite     Avg Annual Effective 14,500 3.62 3.82
Rentable SF 4,000   PV @ 11% 38,875 9.72 10.23
Usable SF 3,800   Annual PV @ 11% 7,775 1.94 2.05


  Start 2001 2002 2003 2004 2005 End Total
Base Rent 0 32,000 32,000 38,000 38,000 38,000 0 178,000
+ op 0 0 378 782 1,215 1,678 0 4,054
- stop 0 (5,400) (5,778) (6,182) (6,615) (7,078) 0 (31,054)
+ tax 0 0 20 40 61 82 0 204
- stop 0 (1,000) (1,020) (1,040) (1,061) (1,082) 0 (5,204)
+ net TI (55,500) 0 0 0 0 0 0 (55,500)
+ Commission (10,000) 0 0 0 0 0 0 (10,000)
+ net buyout 0 0 0 0 0 0 0 0
+ parking 0 0 0 0 0 0 0 0
+ moving 0 0 0 0 0 0 0 0
- free rent 0 (8,000) 0 0 0 0 0 (8,000)
Total $ (65,500) 17,600 25,600 31,600 31,600 31,600 0 72,500
Total PV (65,500) 16,413 21,900 24,354 21,941 19,766 0 38,875
$/RSF (16.38) 4.40 6.40 7.90 7.90 7.90 0.00 18.13
PV/RSF (16.38) 4.10 5.48 6.09 5.49 4.94 0.00 9.72
$/USF (17.24) 4.63 6.74 8.32 8.32 8.32 0.00 19.08
PV/USF (17.24) 4.32 5.76 6.41 5.77 5.20 0.00 10.23


     


Total $/USF

Maxwell Proposal


  Start 2001 2002 2003 2004 2005 End
  -17.2 4.6 6.7 8.3 8.3 8.3 0.0


     


Owner 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 108,019 27.00 28.43
Suite     Avg Annual Effective 21,604 5.40 5.69
Rentable SF 4,000   PV @ 11% 73,364 18.34 19.31
Usable SF 3,800   Annual PV @ 11% 14,673 3.67 3.86


  Start 2001 2002 2003 2004 2005 End Total
Base Rent 0 26,000 27,820 29,767 31,851 34,081 0 149,519
+ op 0 0 0 0 0 0 0 0
+ tax 0 0 0 0 0 0 0 0
+ net TI (31,500) 0 0 0 0 0 0 (31,500)
+ Commission (10,000) 0 0 0 0 0 0 (10,000)
+ parking 0 0 0 0 0 0 0 0
+ net buyout 0 0 0 0 0 0 0 0
+ moving 0 0 0 0 0 0 0 0
- free rent 0 0 0 0 0 0 0 0
Total $ (41,500) 26,000 27,820 29,767 31,851 34,081 0 108,019
Total PV (41,500) 24,689 23,800 22,942 22,115 21,318 0 73,364
$/RSF (10.38) 6.50 6.96 7.44 7.96 8.52 0.00 27.00
PV/RSF (10.38) 6.17 5.95 5.74 5.53 5.33 0.00 18.34
$/USF (10.92) 6.84 7.32 7.83 8.38 8.97 0.00 28.43
PV/USF (10.92) 6.50 6.26 6.04 5.82 5.61 0.00 19.31


     


Total $/USF

Foster Proposal


  Start 2001 2002 2003 2004 2005 End
  -10.9 6.8 7.3 7.8 8.4 9.0 0.0


     


Revenue Detail

73 Hillside Way

  Ackerman
Proposal		 Maxwell
Proposal		 Foster
Proposal
Total
Start (41,500) (65,500) (41,500) (148,500)
2001 30,800 17,600 26,000 74,400
2002 30,402 25,600 27,820 83,822
2003 29,977 31,600 29,767 91,345
2004 29,524 31,600 31,851 92,975
2005 29,039 31,600 34,081 94,720
End 0 0 0 0
Total 108,242 72,500 108,019 288,761

     


Analysis Assumptions Report

73 Hillside Way














Investment Assumptions
Price of Property   Owner Representation
Date of Acquisition   1 January 2001
Holding Period   5 Years
Inflation Rate   7% 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   11% per Year
Present Value Discount Rate Before Tax   11% per Year
Present Value Discount Rate After Tax   11% 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 + op Revenue Assumptions
Annual Revenue   ($5,400.00)
Revenue Start Date   at Acquisition
Revenue Period   Until Projected Sale
Revenue Growth Method   Annual at the Inflation Rate
     
Ackerman Proposal + tax Revenue Assumptions
Annual Revenue   ($1,000.00)
Revenue Start Date   at Acquisition
Revenue Period   Until Projected Sale
Revenue Growth Method   Annual at 2% Annually
     
Ackerman Proposal + net TI Revenue Assumptions
  Remainder of TI's after Ackerman's $31,500 proposed allowance
Annual Revenue   ($31,500.00)
Revenue Start Date   at Acquisition
Revenue Growth Method   No Growth is Projected
     
Ackerman Proposal + Commission Revenue Assumptions
Annual Revenue   ($10,000.00)
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. 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.
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 + 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 - 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   Annual at the Inflation Rate
     
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 - 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   Annual at 2% Annually
     
Maxwell Proposal + net TI Revenue Assumptions
  Remaining TI's after allowances
Annual Revenue   ($55,500.00)
Revenue Start Date   at Acquisition
Revenue Growth Method   No Growth is Projected
     
Maxwell Proposal + Commission Revenue Assumptions
Annual Revenue   ($10,000.00)
Revenue Start Date   at Acquisition
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
     
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 + net TI Revenue Assumptions
  Remaining TI's after allowances
Annual Revenue   ($31,500.00)
Revenue Start Date   at Acquisition
Revenue Growth Method   No Growth is Projected
     
Foster Proposal + Commission Revenue Assumptions
Annual Revenue   ($10,000.00)
Revenue Start Date   at Acquisition
Revenue Growth Method   No Growth is Projected