813 6th Street OM_LONG_FEB2019_005

PROJECTED CASH FLOW

2019

2020

2021

2022

2023

2024

2025 2026*

LEASABLE SF

YEAR 1

YEAR 6

TOTAL SQUARE FOOTAGE:

42,264

31,195 11,069

$2.02 / $2.09 $2.09 / $2.16 $2.16 / $2.23 $2.23 / $2.30 $2.30 / $2.37 $2.37 / $2.45 $2.45 / $2.52

$2.52 $2.62

1ST - 3RD FLOORS **

Abated

$2.41 / $2.48 $2.48 / $2.55 $2.55 / $2.62 $2.62 / $2.48 $2.48/$2.55 $2.55/$2.62

4TH FLOOR **

INCOME INCOME - 1ST-3RD FLOORS

762,718

788,922

815,125

841,329

867,533

894,673

923,684

943,338

0

321,903

331,201

340,499

342,957

331,737

341,035

348,009

INCOME - 4TH FLOOR

600

3,000

3,000

3,000

3,000

3,000

3,000

3,000

Parking Income

TOTAL INCOME

$763,318

$1,113,825

$1,149,326

$1,184,828

$1,213,490

$1,229,410

$1,267,719

$1,294,347

EXPENSES REPAIRS - ELEVATOR MAINT

9,756

9,951

10,150

10,353

10,560

10,772

10,987

11,207

1,164

1,187

1,211

1,235

1,260

1,285

1,311

1,337

FEES AND LICENSES

15,132

15,435

15,744

16,059

16,380

16,707

17,042

17,382

INSURANCE EXPENSE

57,832

58,989

60,169

61,372

62,599

63,851

65,128

66,431

JANITORIAL/CLEANING EXPENSE LANDSCAPING AND GROUNDSKEEPING

2,560

2,611

2,664

2,717

2,771

2,827

2,883

2,941

29,905

32,558

33,623

34,688

35,753

36,468

37,198

37,942

MANAGEMENT FEE

144,903

144,903

146,352

147,816

149,294

150,787

152,295

153,817

PROPERTY TAXES ***

24,420

24,908

25,406

25,915

26,433

26,962

27,501

28,051

REPAIRS AND MAINTENANCE

3,175

3,239

3,303

3,369

3,437

3,506

3,576

3,647

SECURITY EXPENSE

3,927

4,006

4,086

4,167

4,251

4,336

4,422

4,511

TELEPHONE EXPENSE

86,267

87,992

89,752

91,547

93,378

95,246

97,151

99,094

UTILITIES

TOTAL EXPENSE

$379,041

$385,779

$392,460

$399,238

$406,116

$412,747

$419,494

$426,360

NET OPERATING INCOME CAPITALIZATION RATE

$384,277

$728,046

$756,866

$785,590

$807,374 $816,663

$848,225

$867,987

5.71%

5.93% 6.16%

6.40% 6.65% 6.80%

6.33%

* Contractual lease obligation through 9/30/2026. Cash flow projected to reflect a full year of term. ** Contratual base rent increases occur October of each calendar year. *** Adjusted to reflect new sale price growing 1% beginning 2021.

HALL OF JUSTICE | 8