United Bank for Africa- Analysis- 2019-11-07 for Real Estate

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LL Offer - 10/15/2019 575 Fifth Avenue - E30

United Bank for Africa | New York

Analysis Detail (Lessee Perspective)

Printed: Nov 7, 2019 at 3:13 PM

Analysis is truncated to Dec. 31, 2039 for common term comparison

Key Assumptions

Required Capital

Hard Construction Soft Costs

$227.25/SF $3,517K $21.69/SF $336K $51.72/SF $800K

Analysis Period

Jan. 1, 2020 - Dec. 31, 2039

Analysis Term 20 Yrs

Discount Rate 7.00%/Yr.

2020/21 2020/21

Lease Type

Direct

OpEx Base ReTax Base

$11.53/SF $20.93/SF

3.349% Pro Rata

FF&E Technology Miscellaneous

Total Rentable Area Lease Commencement

15,475 SF Jan. 1, 2020

3.349% Pro Rata

Submetered Electric Fixed Annual Increase Landlord Contribution Commissions (1.5X)

5% Mark-Up $3.00/SF

$2.14/SF $2.69/SF

$33K $42K

Lease Term

20 Yrs

None

$2,034K

Lease Expiration Analysis Truncation

Dec. 31, 2039 Dec. 31, 2039

$131.43/SF

- -

- -

$0K

$0.00/SF

Rent Schedule Initial Free Rent:

Contingency (8.0%)

Start

End

$/SF/Year

$/Year

$24.44/SF $378K $329.93/SF $5,106K

22 Mos. (1 - 22) 38 Mos. (23 - 60) 60 Mos. (61 - 120) 60 Mos. (121 - 180) 60 Mos. (181 - 240)

Jan. 1, 2020 Oct. 31, 2021 Nov. 1, 2021 Dec. 31, 2024 Jan. 1, 2025 Dec. 31, 2029 Jan. 1, 2030 Dec. 31, 2034 Jan. 1, 2035 Dec. 31, 2039

Free

Free

Total

Assumes value of LL Turnkey is $100/SF and includes soft costs.

Tranche 1: Tranche 2: Tranche 3: Tranche 4: Tranche 5: Tranche 6: Tranche 7: Tranche 8:

$83.00/SF $88.00/SF $93.00/SF $98.00/SF

$1,284K $1,362K $1,439K $1,517K

+6.0% +5.7% +5.4%

Direct Expenses

- - - - -

- - - - -

Total

12 Mos

12 Mos

12 Mos

12 Mos

12 Mos

12 Mos

12 Mos

12 Mos

12 Mos 12 Mos 12 Mos 12 Mos 12 Mos 12 Mos 12 Mos

240 Mos

Cash Flow | $/SF

2020

2021

2022

2023

2024

2025

2026

2027

2028 2029 2030 2031 2035 2036 2039

Total

NPV @ 7.0% Annuity

Base Rent Free Rent

83.00

83.00

83.00

83.00

83.00

88.00

88.00

88.00

88.00

88.00

93.00

93.00

98.00

98.00

98.00

1,810.00

955.61

88.39

1

22 Months $11.53/SF, 2020/21 Base $20.93/SF, 2020/21 Base

(83.00)

(69.17)

-

-

-

-

-

-

-

-

-

-

-

-

-

(152.17)

(143.25)

(13.25)

2

Operating Expense Real Estate Tax Miscellaneous 1

- - - -

0.20 0.19

0.61 0.19

1.03

1.47 0.10

1.93 0.60

2.40 1.40

2.89 2.23

3.39 3.09

3.92 3.97

4.46 4.89

5.02 5.84

7.46 9.99

8.12

10.26 14.74

90.09

35.69 38.96

3.30 3.60

3

- -

11.11

107.68

4

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

5

6 Gross Rent SubTotal

$14.22

$83.79 $84.03 $84.58 $90.53

$91.80 $93.12 $94.48 $95.89 $102.35 $103.86 $115.44 $117.24 $123.00

$1,855.60 $887.01

$82.05

Commercial Rent Tax Submetered Electric

5% Mark-Up 3.90% of the Gross Rent

0.12 3.15

0.68 3.26

3.40 3.37

3.41 3.49

3.44 3.61

3.68 3.74

3.73 3.87

3.79 4.01

3.85 4.15

3.91 4.29

4.16 4.44

4.23 4.60

4.71 5.28

4.79 5.46

5.03 6.06

75.84 89.08

36.33 44.52

3.36 4.12

7

8

9 Additional Cost SubTotal

$3.27

$3.94

$6.77

$6.91

$7.05

$7.42

$7.60

$7.80 $7.99 $8.20 $8.61 $8.83 $9.99 $10.25 $11.09

$164.92 329.93 (131.43)

$80.84 329.93

$7.48 30.52

Required Capital

329.93

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

10

Landlord Contribution

(131.43) $198.50 $201.78

(131.43)

(12.16) $18.36

11

12 Net Capital

$198.50 $198.50

13 Total | $/SF

$18.16 $90.02

$90.57 $90.94 $91.63 $97.95 $90.57 $90.94 $91.63 $97.95

$99.41 $100.91 $102.47 $104.09 $110.96 $112.69 $125.43 $127.48 $134.09 $99.41 $100.91 $102.47 $104.09 $110.96 $112.69 $125.43 $127.48 $134.09

$2,219.03 $1,166.36 $107.88

$89.51

Annualized Cost (Omitting 1X Costs)

12 Mos

12 Mos

12 Mos

12 Mos

12 Mos

12 Mos

12 Mos

12 Mos

12 Mos 12 Mos 12 Mos 12 Mos 12 Mos 12 Mos 12 Mos

240 Mos

Cash Flow | $K

2020

2021

2022

2023

2024

2025

2026

2027

2028 2029 2030 2031 2035 2036 2039

Total

NPV @ 7.0% Annuity

1,284K

1,284K

1,284K 1,284K 1,284K 1,362K 1,362K 1,362K 1,362K 1,362K 1,439K 1,439K 1,517K 1,517K 1,517K

28,010K 14,788K 1,368K

Base Rent Free Rent

14

(1,284K)

(1,070K)

-

-

-

-

-

-

-

-

-

-

-

-

-

(2,355K)

(2,217K)

(205K)

15

- - -

3K 3K

9K 3K

16K

23K

30K

37K 22K

45K 53K 61K 69K 78K 115K 126K 159K 35K 48K 61K 76K 90K 155K 172K 228K

1,394K 1,666K

552K 603K

51K 56K

Operating Expense Real Estate Tax Miscellaneous 1

16

- -

2K

9K

17

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

19 Gross Rent SubTotal

- $220K $1,297K $1,300K $1,309K $1,401K $1,421K $1,441K $1,462K $1,484K $1,584K $1,607K $1,786K $1,814K $1,903K $28,715K $13,726K $1,270K

2K

11K 50K

53K 52K

53K 54K

53K 56K

57K 58K

58K 60K

59K 60K 60K 64K 65K 73K 74K 78K 62K 64K 66K 69K 71K 82K 85K 94K

1,174K 1,379K

562K 689K

52K 64K

Commercial Rent Tax Submetered Electric

20

49K

21

22 Additional Cost SubTotal

$51K

$61K $105K $107K $109K $115K $118K $121K $124K $127K $133K $137K $155K $159K $172K

$2,552K $1,251K $116K

5,106K

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

5,106K 5,106K

472K

Required Capital

23

(2,034K)

(2,034K)

(2,034K)

(188K)

Landlord Contribution

24

25 Net Capital

$3,072K

-

-

-

-

-

-

-

-

-

-

-

-

-

-

$3,072K $3,072K $284K

26 Total | $K

$3,122K $281K $1,402K $1,407K $1,418K $1,516K $1,538K $1,562K $1,586K $1,611K $1,717K $1,744K $1,941K $1,973K $2,075K $34,339K $18,049K $1,670K

Annualized Cost (Omitting 1X Costs)

$1,385K $1,393K $1,402K $1,407K $1,418K $1,516K $1,538K $1,562K $1,586K $1,611K $1,717K $1,744K $1,941K $1,973K $2,075K

Strategic Advisory Group © 2019 Cushman & Wakefield

All information furnished is from sources deemed reliable. No warranty or representation is made as to the accuracy thereof and same is submitted subject to errors, omissions, change in price, rental or other conditions, prior sale, lease, or financing or withdrawal without notice.

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