Proposal_Brokerage_Advisory_Services_CW

First page Previous page 31 Next page Last page

PROCESS MANAGEMENT

Provide a past financial analysis you completed for another client. Describe how this analysis would be customized for the Company.

Cushman & Wakefield will create customized financial analyses to underwrite both the Tenant’s and Landlord’s perspective, creating leverage points for negotiation. • Evaluate all scenarios on a cashflow and P&L basis • Determine optimal transaction structure to align with HLT’s economic objectives and ensure long-term profitability • Examine the impact to P&L, Balance Sheet, and EPS, giving special consideration to the implied room night demand and RevPAR gains that occur during events A sample financial analysis is provided below.

Printed:May8,2019 at2:59PM

Assu

Notes Truncated NPV Cash

Landlord Perspective

Footprint

1X Capital Cash

Average AnnualCashflow (Omitting 1X Capital)

Truncated Total Cash

Landlord Renewal BreakEven Rent

Scenario

2023-2025

2023-2027 2028-2032 2033-2037

2023-2037 2023-2037

A Renew| No Downtime | $72/SF 70,000 SF -$5.9M $4.7M/Yr $5.5M/Yr $6.4M/Yr

$76.5M $43.4M

B 8 Months Downtime

70,000 SF -$13.1M $3.3M/Yr $5.9M/Yr $6.8M/Yr

$66.5M $32.1M $51.08/SF

C 15 Months Downtime

70,000 SF -$13.1M $2.6M/Yr $5.8M/Yr $6.7M/Yr

$62.2M $29.2M $45.89/SF

D 24 Months Downtime

70,000 SF -$13.1M $1.8M/Yr $5.6M/Yr $6.5M/Yr

$56.8M $25.9M $39.67/SF

AverageAnnualCashflow (Omitting1XCapital)

All-In Costs

$0.0M $10.0M $20.0M $30.0M $40.0M $50.0M $60.0M $70.0M $80.0M

$0.0M/Yr $1.0M/Yr $2.0M/Yr $3.0M/Yr $4.0M/Yr $5.0M/Yr $6.0M/Yr $7.0M/Yr

$76.5M

$6.8M/Yr

$6.7M/Yr

DRAFT

$66.5M

$6.5M/Yr

$6.4M/Yr

$62.2M

$5.9M/Yr

$5.8M/Yr

$5.6M/Yr

$56.8M

$5.5M/Yr

$4.7M/Yr

$43.4M

Printed:May8, 2019 at 2:59PM

$3.3M/Yr

$2.6M/Yr

$1.8M/Yr

$32.1M

$29.2M

$25.9M

Assumptions

Notes

Renew| No Downtime | $72/SF

8 Months Downtime

15 Months Downtime

24 Months Downtime

Truncated Total Cash

Truncated NPV Cash

1325Avenueof theAmericas

1325Avenueof theAmericas E2-E3 ProFormaNewTenant

1325Avenueof theAmericas

1325Avenueof theAmericas E2-E3 ProFormaNewTenant

Jan. 1, 2023AnalysisCommencement

E2-E3 ProFormaRenewal 70,000SF

E2-E3

ProFormaNewTenant

70,000SF Sep1,2023

70,000SF Apr1, 2024

70,000SF

RentableArea LeaseCommencement Downtime LeaseTerm LeaseExpiration

15Years Dec 31, 2037 NoDowntime Jan1,2023

Jan1,2025 24MonthsDowntime 16Years,3Months Mar 31, 2041

SquareFootage &KeyDates

16Years,3Months Nov30, 2039 8MonthsDowntime

Jun30, 2040 16Years,3Months 15MonthsDowntime

All information furnished is from sourcesdeemed reliable. Nowarrantyor representation ismade as to the accuracy thereof and same is submitted subject to errors,omissions, change inprice, rentalorother conditions,prior sale, lease,or financingorwithdrawalwithoutnotice.

Start

Duration

Rent

Start

Duration 15Mo.

Rent Free

Start

Duration 15Mo.

Rent Free

Start

Duration 15Mo.

Rent Free

Rent

Sep 2023 Dec 2024 Dec 2029 Dec 2034

Apr 2024 Jul 2025 Jul 2030 Jul 2035

Jan 2025 Apr 2026 Apr 2031 Apr 2036

60Mo. $72.00/SF 60Mo. $77.00/SF 60Mo. $82.00/SF

Jan 2023 Jan 2028 Jan 2033

BaseRent

$14.60/SF

2023OperatingExpenses BaseOperatingExpenses 2023RealEstateTaxes BaseRealEstateTaxes

2023

2024

2025

$14.60/SF

$15.11/SF

$15.64/SF

Escalations

$17.99/SF

2023

2024

2025

$17.99/SF

$18.46/SF

$19.12/SF

- $40.00/SF $44.77/SF $84.77/SF

$50.00/SF $90.00/SF $46.75/SF $186.75/SF

$3,500K $6,300K $3,273K $13,073K

$186.75/SF $46.75/SF $90.00/SF $50.00/SF

$3,500K $6,300K $3,273K $13,073K

$50.00/SF $90.00/SF $46.75/SF $186.75/SF

$3,500K $6,300K $3,273K $13,073K

1XCosts

$2,800K $3,134K $5,934K

TIAllowance Commissions Total1XCosts

1XCosts

Notes

12Mos.FreeRentAmortized@7%

Summary | Cash Flow Impact

12Mos. 2023

12Mos.

180Mos.

12Mos.

3Mos. 2041

219Mos. NPV

Total Truncated

NPV Truncated

Annuity Truncated

Total

Annuity

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

Jan. 1, 2023AnalysisCommencement

1325Avenueof the Americas

BaseRent

$4.5M

$4.5M $4.5M $4.5M $4.5M $4.8M $4.8M $4.8M $4.8M $4.8M $5.2M $5.2M $5.2M $5.2M $5.2M

$72.7M

$44.5M

$4.8M

$72.7M

$44.5M

$4.8M

Escalations

$0.0M

$0.1M $0.2M $0.2M $0.3M $0.4M $0.5M $0.6M $0.7M $0.8M $0.9M $1.0M $1.2M $1.3M $1.4M

$9.7M

$4.8M

$0.5M

$9.7M

$4.8M

$0.5M

E2-E3

1XCosts

($5.9M)

($0.6M)

($5.9M)

($0.6M)

ProFormaRenewal

($1.4M) $4.6M $4.7M $4.7M $4.8M $5.3M $5.4M $5.5M $5.6M $5.7M $6.1M $6.2M $6.4M $6.5M $6.6M $(20.42)/SF $65.26/SF $66.45/SF $67.68/SF $68.96/SF $75.27/SF $76.64/SF $78.05/SF $79.51/SF $81.03/SF $87.59/SF $89.21/SF $90.89/SF $92.63/SF $94.42/SF

$76.5M $43.4M $4.7M

Total

70,000SF

$1,093.18/SF

$619.83/SF

$66.47/SF

$1,093.18/SF

$619.83/SF

$66.47/SF

1325Avenueof the Americas E2-E3 ProFormaNewTenant 1325Avenueof the Americas E2-E3 ProFormaNewTenant 1325Avenueof the Americas E2-E3 ProFormaNewTenant

BaseRent

$0.4M $5.0M $5.0M $5.0M $5.0M $5.1M $5.4M $5.4M $5.4M $5.4M $5.4M $5.7M $5.7M $5.7M

$69.8M

$39.7M

$4.3M

$5.7M $5.3M

$80.9M

$43.3M

$4.7M

Escalations

$0.0M

$0.1M $0.2M $0.2M $0.3M $0.4M $0.5M $0.6M $0.7M $0.8M $0.9M $1.0M $1.2M $1.3M $1.4M

$9.7M

$4.8M

$0.5M

$1.5M $1.5M

$12.8M

$5.9M

$0.6M

1XCosts

($13.1M)

($12.5M)

($1.3M)

($13.1M)

($12.5M)

($1.3M)

($13.1M) $0.5M $5.2M $5.3M $5.4M $5.5M $5.6M $6.0M $6.1M $6.2M $6.3M $6.5M $6.9M $7.0M $7.2M $(186.70)/SF $6.98/SF $74.17/SF $75.40/SF $76.68/SF $77.99/SF $79.78/SF $85.77/SF $87.23/SF $88.75/SF $90.31/SF $92.35/SF $98.61/SF $100.35/SF $102.14/SF

$66.5M $32.1M $3.4M $7.3M $6.8M

$80.6M $36.7M $3.9M

Total

70,000SF

$949.82/SF

$457.96/SF

$49.11/SF $104.00/SF $97.06/SF

$1,150.88/SF

$524.18/SF

$56.34/SF

BaseRent

- $2.5M $5.0M $5.0M $5.0M $5.0M $5.2M $5.4M $5.4M $5.4M $5.4M $5.6M $5.7M $5.7M

$66.5M

$37.0M

$4.0M

$5.7M $5.7M $2.9M

$80.9M

$41.6M

$4.7M

Escalations

$0.0M $0.1M $0.2M $0.3M $0.4M $0.4M $0.5M $0.6M $0.8M $0.9M $1.0M $1.1M $1.2M $1.3M

$8.8M

$4.3M

$0.5M

$1.5M $1.6M $0.9M

$12.7M

$5.5M

$0.6M

1XCosts

($13.1M)

($12.0M)

($1.3M)

($13.1M)

($12.0M)

($1.3M)

- $2.6M $5.2M $5.3M $5.4M $5.5M $5.8M $6.0M $6.1M $6.3M $6.4M $6.7M $7.0M $7.1M - $(186.59)/SF $37.19/SF $74.42/SF $75.69/SF $77.01/SF $78.38/SF $82.29/SF $86.25/SF $87.76/SF $89.33/SF $90.95/SF $95.13/SF $99.36/SF $101.16/SF ($13.1M)

$62.2M $29.2M $3.1M $7.2M $7.3M $3.7M

$80.5M $35.1M $3.9M

Total

70,000SF

$888.34/SF

$417.83/SF

$44.81/SF $103.02/SF $104.95/SF $53.19/SF

$1,149.49/SF

$502.14/SF

$56.22/SF

BaseRent

- $3.8M $5.0M $5.0M $5.0M $5.0M $5.3M $5.4M $5.4M $5.4M $5.4M $5.7M $5.7M

$62.2M

$33.6M

$3.6M

$5.7M $5.7M $5.7M $1.4M

$80.9M

$39.5M

$4.7M

Escalations

- $0.0M $0.1M $0.2M $0.3M $0.4M $0.5M $0.6M $0.7M $0.8M $0.9M $1.0M $1.1M $1.3M

$7.7M

$3.7M

$0.4M

$1.4M $1.5M $1.7M $0.4M

$12.7M

$5.2M

$0.6M

1XCosts

($13.1M)

($11.4M)

($1.2M)

($13.1M)

($11.4M)

($1.3M)

- $3.9M $5.2M $5.3M $5.4M $5.5M $5.9M $6.1M $6.2M $6.3M $6.4M $6.8M $7.0M - $(186.59)/SF $55.23/SF $74.50/SF $75.82/SF $77.19/SF $78.60/SF $83.81/SF $86.57/SF $88.14/SF $89.76/SF $91.44/SF $96.93/SF $99.97/SF ($13.1M)

$56.8M $25.9M $2.8M $7.1M $7.3M $7.4M $1.9M

$80.5M $33.3M $3.9M

Total

70,000SF

$811.39/SF

$369.68/SF

$39.64/SF $101.83/SF $103.76/SF $105.75/SF $26.81/SF

$1,149.53/SF

$476.06/SF

$56.16/SF

StrategicAdvisoryGroup © 2019Cushman&Wakefield Page 2of 2 Conduct a financial analysis to establish the Landlord’s indifference points factoring inmarket conditions inclusive of downtime, free rent, base building work and tenant improvement allowances, to generate a lower occupancy cost for HLT. All information furnished is from sourcesdeemed reliable. Nowarrantyor representation ismade as to the accuracy thereof and same is submitted subject to errors,omissions, change inprice, rentalorother conditions,prior sale, lease,or financingorwithdrawalwithout notice.

K HLT NY HILTON LLC | CUSHMAN & WAKEFIELD | 31

Made with FlippingBook - professional solution for displaying marketing and sales documents online