| 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Incomehide | ||||||||||
| 100 Pharmacy (5000 sf) | $52,083 | $125,000 | $125,000 | $125,000 | $129,948 | $138,017 | $140,777 | $143,593 | $146,464 | $149,394 |
| 101 Lab Tech (2500 sf) | $26,042 | $62,500 | $62,500 | $62,500 | $64,974 | $69,008 | $70,389 | $71,796 | $73,232 | $74,697 |
| 102 Dentist (2500 sf) | $31,250 | $75,000 | $75,000 | $75,000 | $75,000 | $75,000 | $75,000 | $80,111 | $87,878 | $89,636 |
| 201 Medical (5000 sf) | $52,430 | $127,658 | $130,052 | $132,653 | $135,306 | $138,012 | $140,772 | $143,588 | $150,059 | $152,977 |
| 202 Medical (2500 sf) | $28,125 | $69,128 | $70,230 | $71,635 | $73,068 | $74,529 | $74,418 | $73,519 | $74,989 | $76,489 |
| 203 Medical (2500 sf) | $28,125 | $68,704 | $70,257 | $71,633 | $73,065 | $74,527 | $76,017 | $77,537 | $79,088 | $80,670 |
| Base Rental Revenue | $218,055 | $527,990 | $533,039 | $538,421 | $551,361 | $569,093 | $577,373 | $590,144 | $611,712 | $623,863 |
| Reimbursement Detailhide | ||||||||||
| Reimb Taxes | $2,656 | $6,630 | $6,890 | $7,155 | $7,032 | $7,308 | $7,589 | $7,659 | $7,933 | $7,693 |
| Reimb Insurance | $354 | $935 | $1,024 | $1,118 | $1,079 | $1,182 | $1,291 | $1,325 | $1,438 | $1,349 |
| Reimb Common Area Maintenance | $885 | $2,160 | $2,246 | $2,334 | $2,325 | $2,416 | $2,509 | $2,542 | $2,633 | $2,555 |
| Reimb Managment Fee | $6,250 | $15,375 | $16,286 | $17,225 | $17,148 | $18,144 | $19,170 | $19,559 | $20,587 | $19,749 |
| Total Reimbursements | $10,146 | $25,100 | $26,447 | $27,832 | $27,584 | $29,050 | $30,559 | $31,086 | $32,590 | $31,347 |
| Total Gross Income | $228,201 | $553,090 | $559,486 | $566,252 | $578,946 | $598,143 | $607,932 | $621,230 | $644,301 | $655,209 |
| Less: Vacancy & Credit Loss | $118,826 | $130,180 | $6,300 | $0 | $0 | $0 | $13,345 | $7,275 | $27,505 | $0 |
| Effective Income | $109,375 | $422,910 | $553,185 | $566,252 | $578,946 | $598,143 | $594,588 | $613,955 | $616,797 | $655,209 |
| Less: Expenseshide | ||||||||||
| Taxes | $12,750 | $13,005 | $13,265 | $13,530 | $13,801 | $14,077 | $14,359 | $14,646 | $14,939 | $15,237 |
| Insurance | $1,700 | $1,785 | $1,874 | $1,968 | $2,066 | $2,170 | $2,278 | $2,392 | $2,512 | $2,637 |
| Common Area Maintenance | $1,771 | $4,285 | $4,371 | $4,459 | $4,548 | $4,639 | $4,731 | $4,826 | $4,923 | $5,021 |
| Managment Fee | $12,500 | $30,375 | $31,286 | $32,225 | $33,192 | $34,187 | $35,213 | $36,269 | $37,357 | $38,478 |
| Reserve | $2,000 | $2,040 | $2,081 | $2,122 | $2,165 | $2,208 | $2,252 | $2,297 | $2,343 | $2,390 |
| Total Operating Expenses | $30,721 | $51,490 | $52,878 | $54,304 | $55,772 | $57,281 | $58,833 | $60,431 | $62,074 | $63,764 |
| Net Operating Income | $78,654 | $371,420 | $500,308 | $511,948 | $523,174 | $540,862 | $535,754 | $553,525 | $554,723 | $591,445 |
| Less: Debt Servicehide | ||||||||||
| Permanent | $109,953 | $329,858 | $329,858 | $329,858 | $329,858 | $329,858 | $329,858 | $329,858 | $329,858 | $329,858 |
| Total Debt Service | $109,953 | $329,858 | $329,858 | $329,858 | $329,858 | $329,858 | $329,858 | $329,858 | $329,858 | $329,858 |
| Less: Debt Servicehide | ||||||||||
| Construction Draw | ($50,063) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Permanent | $3,545,491 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Debt Draw & Repay | $3,495,427 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Net Operating Cash Flow | ($31,298) | $41,562 | $170,450 | $182,090 | $193,316 | $211,004 | $205,896 | $223,667 | $224,865 | $261,587 |
| Less: Capital Spendinghide | ||||||||||
| Land Purchase | $2,000,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Construction Spending | $1,200,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Hard Cost Contigency | $35,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| General Conditions | $40,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Trash Enclosures | $9,500 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Clearing & Grading | $23,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Storm Drainage | $35,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Site Concrete | $23,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Sub Base paving | $30,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Building Pad stabalization | $10,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Site Utilities | $25,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Site Electric-Lighting | $40,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Signage | $25,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Landscape & Irrigation | $20,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Contg. | $30,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Sewer Capacity | $5,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Water Fee's | $2,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Electricial Fee's | $5,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Permits-Zoning-Review Fee's | $3,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Plan Copies | $500 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Developers Liability Insurance | $12,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Architects | $65,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Civil Engineering | $22,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Landscape Design | $2,500 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Reimbursable Architects | $4,500 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Legal | $45,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Travel to site | $800 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Construction Management Fee | $7,500 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Appraisal | $4,500 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Survey | $3,500 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Title Insurance | $3,500 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| General Contigency | $30,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| TI for First Floor | $500,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Commisions for First Floor | $120,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Market TI's | $0 | $205,099 | $78,159 | $0 | $0 | $0 | $4,286 | $5,820 | $8,831 | $0 |
| Market Commissions | $0 | $65,595 | $30,188 | $0 | $0 | $0 | $4,523 | $3,245 | $9,318 | $0 |
| Total Capital Spending | $4,381,800 | $270,694 | $108,346 | $0 | $0 | $0 | $8,809 | $9,065 | $18,149 | $0 |
| Cash Flow Before Tax | ($917,671) | ($229,132) | $62,103 | $182,090 | $193,316 | $211,004 | $197,088 | $214,602 | $206,716 | $261,587 |
| Taxable Income and Taxes | ||||||||||
| (Losses Carried Forward) | ||||||||||
| Taxable Revenues | $109,375 | $422,910 | $553,185 | $566,252 | $578,946 | $598,143 | $594,588 | $613,955 | $616,797 | $655,209 |
| Less: Deducted Expenses | $30,721 | $51,490 | $52,878 | $54,304 | $55,772 | $57,281 | $58,833 | $60,431 | $62,074 | $63,764 |
| Less: Interest Expensehide | ||||||||||
| Permanent | $82,489 | $243,527 | $237,286 | $230,594 | $223,418 | $215,724 | $207,473 | $198,626 | $189,139 | $178,966 |
| Total Interest Expense | $82,489 | $243,527 | $237,286 | $230,594 | $223,418 | $215,724 | $207,473 | $198,626 | $189,139 | $178,966 |
| Less: Capital Spendinghide | ||||||||||
| Construction Spending | $11,781 | $31,416 | $31,416 | $31,416 | $31,416 | $31,416 | $31,416 | $31,416 | $31,416 | $30,107 |
| Hard Cost Contigency | $344 | $916 | $916 | $916 | $916 | $916 | $916 | $916 | $916 | $878 |
| General Conditions | $393 | $1,047 | $1,047 | $1,047 | $1,047 | $1,047 | $1,047 | $1,047 | $1,047 | $1,004 |
| Trash Enclosures | $93 | $249 | $249 | $249 | $249 | $249 | $249 | $249 | $249 | $238 |
| Clearing & Grading | $226 | $602 | $602 | $602 | $602 | $602 | $602 | $602 | $602 | $577 |
| Storm Drainage | $344 | $916 | $916 | $916 | $916 | $916 | $916 | $916 | $916 | $878 |
| Site Concrete | $226 | $602 | $602 | $602 | $602 | $602 | $602 | $602 | $602 | $577 |
| Sub Base paving | $295 | $785 | $785 | $785 | $785 | $785 | $785 | $785 | $785 | $753 |
| Building Pad stabalization | $98 | $262 | $262 | $262 | $262 | $262 | $262 | $262 | $262 | $251 |
| Site Utilities | $245 | $654 | $654 | $654 | $654 | $654 | $654 | $654 | $654 | $627 |
| Site Electric-Lighting | $393 | $1,047 | $1,047 | $1,047 | $1,047 | $1,047 | $1,047 | $1,047 | $1,047 | $1,004 |
| Signage | $245 | $654 | $654 | $654 | $654 | $654 | $654 | $654 | $654 | $627 |
| Landscape & Irrigation | $196 | $524 | $524 | $524 | $524 | $524 | $524 | $524 | $524 | $502 |
| Contg. | $295 | $785 | $785 | $785 | $785 | $785 | $785 | $785 | $785 | $753 |
| Sewer Capacity | $49 | $131 | $131 | $131 | $131 | $131 | $131 | $131 | $131 | $125 |
| Water Fee's | $20 | $52 | $52 | $52 | $52 | $52 | $52 | $52 | $52 | $50 |
| Electricial Fee's | $49 | $131 | $131 | $131 | $131 | $131 | $131 | $131 | $131 | $125 |
| Permits-Zoning-Review Fee's | $29 | $79 | $79 | $79 | $79 | $79 | $79 | $79 | $79 | $75 |
| Plan Copies | $5 | $13 | $13 | $13 | $13 | $13 | $13 | $13 | $13 | $13 |
| Developers Liability Insurance | $118 | $314 | $314 | $314 | $314 | $314 | $314 | $314 | $314 | $301 |
| Architects | $638 | $1,702 | $1,702 | $1,702 | $1,702 | $1,702 | $1,702 | $1,702 | $1,702 | $1,631 |
| Civil Engineering | $216 | $576 | $576 | $576 | $576 | $576 | $576 | $576 | $576 | $552 |
| Landscape Design | $25 | $65 | $65 | $65 | $65 | $65 | $65 | $65 | $65 | $63 |
| Reimbursable Architects | $44 | $118 | $118 | $118 | $118 | $118 | $118 | $118 | $118 | $113 |
| Legal | $442 | $1,178 | $1,178 | $1,178 | $1,178 | $1,178 | $1,178 | $1,178 | $1,178 | $1,129 |
| Travel to site | $8 | $21 | $21 | $21 | $21 | $21 | $21 | $21 | $21 | $20 |
| Construction Management Fee | $74 | $196 | $196 | $196 | $196 | $196 | $196 | $196 | $196 | $188 |
| Appraisal | $44 | $118 | $118 | $118 | $118 | $118 | $118 | $118 | $118 | $113 |
| Survey | $34 | $92 | $92 | $92 | $92 | $92 | $92 | $92 | $92 | $88 |
| Title Insurance | $34 | $92 | $92 | $92 | $92 | $92 | $92 | $92 | $92 | $88 |
| General Contigency | $295 | $785 | $785 | $785 | $785 | $785 | $785 | $785 | $785 | $753 |
| TI for First Floor | $4,909 | $13,090 | $13,090 | $13,090 | $13,090 | $13,090 | $13,090 | $13,090 | $13,090 | $12,545 |
| Commisions for First Floor | $1,178 | $3,142 | $3,142 | $3,142 | $3,142 | $3,142 | $3,142 | $3,142 | $3,142 | $3,011 |
| Market TI's | $0 | $6,837 | $16,279 | $18,884 | $18,884 | $18,884 | $18,920 | $19,364 | $19,852 | $10,180 |
| Market Commissions | $0 | $5,203 | $12,293 | $14,180 | $14,180 | $14,180 | $12,509 | $12,010 | $10,109 | $4,365 |
| Total Depreciation | $23,383 | $74,395 | $90,927 | $95,419 | $95,419 | $95,419 | $93,784 | $93,729 | $92,316 | $74,303 |
| Ordinary Income | ($27,218) | $53,498 | $172,095 | $185,935 | $204,337 | $229,719 | $234,497 | $261,169 | $273,268 | $338,176 |
| Taxable Income | $3,378 | $22,902 | $172,095 | $185,935 | $204,337 | $229,719 | $234,497 | $261,169 | $273,268 | $338,176 |
| (Cum Suspended Losses) | $30,596 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Taxes Due (- = Savings) | $1,182 | $8,016 | $60,233 | $65,077 | $71,518 | $80,402 | $82,074 | $91,409 | $95,644 | $118,362 |
| Cash Flow After Tax | ($918,853) | ($237,148) | $1,870 | $117,013 | $121,799 | $130,603 | $115,013 | $123,193 | $111,072 | $143,226 |
| Sale Proceeds: | ||||||||||
| Sale Value | $4,952,267 | $6,670,771 | $6,825,975 | $6,975,658 | $7,211,498 | $7,143,391 | $7,380,329 | $7,396,310 | $7,885,936 | $7,617,592 |
| Sale Value | $4,952,267 | $6,670,771 | $6,825,975 | $6,975,658 | $7,211,498 | $7,143,391 | $7,380,329 | $7,396,310 | $7,885,936 | $7,617,592 |
| Less: Sale Costs (4%) | $198,091 | $266,831 | $273,039 | $279,026 | $288,460 | $285,736 | $295,213 | $295,852 | $315,437 | $304,704 |
| Less: Loan Repayment | $3,518,027 | $3,431,696 | $3,339,124 | $3,239,861 | $3,133,421 | $3,019,287 | $2,896,902 | $2,765,670 | $2,624,951 | $2,474,060 |
| Sale Proceeds Before Tax | $1,236,149 | $2,972,244 | $3,213,812 | $3,456,771 | $3,789,617 | $3,838,369 | $4,188,214 | $4,334,788 | $4,945,548 | $4,838,829 |
| Less: Taxes due to Sale | $46,564 | $279,002 | $304,822 | $349,108 | $406,924 | $420,971 | $477,933 | $501,997 | $593,578 | $577,168 |
| Sale Proceeds After Tax | $1,189,586 | $2,693,242 | $2,908,990 | $3,107,663 | $3,382,694 | $3,417,398 | $3,710,281 | $3,832,790 | $4,351,969 | $4,261,661 |
| Ratio Analysis: | ||||||||||
| Profitability Ratios | ||||||||||
| Adj. Capitalization Rate | 8.48% | 10.75% | 10.75% | 10.99% | 11.36% | 11.25% | 11.61% | 11.61% | 12.33% | |
| Adj. Cash on Cash Before Tax | 4.69% | 14.73% | 14.39% | 15.28% | 16.67% | 16.27% | 17.55% | 17.52% | 20.10% | |
| Adj. Cash on Cash After Tax | -26.75% | 0.16% | 9.25% | 9.63% | 10.32% | 9.09% | 9.67% | 8.66% | 11.01% | |
| Risk Ratios | ||||||||||
| Debt Coverage Ratio | 0.715 | 1.126 | 1.517 | 1.552 | 1.586 | 1.64 | 1.624 | 1.678 | 1.682 | 1.793 |
| Breakeven Occupancy | 61.60% | 68.90% | 68.40% | 67.80% | 66.60% | 64.70% | 63.90% | 62.80% | 60.80% | 60.10% |
| Loan Balance/Property Value | 71.00% | 51.40% | 48.90% | 46.40% | 43.50% | 42.30% | 39.30% | 37.40% | 33.30% | 32.50% |
| Assumption Ratios | ||||||||||
| NOI/Property Value | 1.59% | 5.57% | 7.33% | 7.34% | 7.25% | 7.57% | 7.26% | 7.48% | 7.03% | 7.76% |
| Gross Income Multiple | 21.7 | 12.06 | 12.2 | 12.32 | 12.46 | 11.94 | 12.14 | 11.91 | 12.24 | 11.63 |
| Operating Expense Ratio | 13.50% | 9.30% | 9.50% | 9.60% | 9.60% | 9.60% | 9.70% | 9.70% | 9.60% | 9.70% |
| Analysis Measures: | ||||||||||
| IRR Before Debt | 15.5% | 27.6% | 20.4% | 17.8% | 16.6% | 15.2% | 14.8% | 14.1% | 14.2% | 13.5% |
| IRR Before Tax | 25.4% | 59.6% | 41.1% | 34.0% | 30.4% | 26.7% | 25.2% | 23.4% | 23.1% | 21.5% |
| IRR After Tax | 21.4% | 51.6% | 35.2% | 28.9% | 25.8% | 22.3% | 21.0% | 19.3% | 19.1% | 17.5% |
| NPV Before Debt @8.00% | $199,709 | $1,373,110 | $1,405,333 | $1,516,761 | $1,676,227 | $1,640,261 | $1,772,686 | $1,780,539 | $2,009,970 | $1,894,843 |
| NPV Before Tax @10.00% | $174,965 | $1,303,249 | $1,307,070 | $1,383,974 | $1,501,793 | $1,440,317 | $1,529,215 | $1,507,275 | $1,673,841 | $1,547,792 |
| NPV After Tax @8.00% | $155,666 | $1,148,158 | $1,143,773 | $1,207,264 | $1,311,713 | $1,248,935 | $1,331,188 | $1,306,270 | $1,470,746 | $1,339,255 |