Consider the following information for ABC ware house building:
Square footage: 200,000sf
Tenancy:
A Tenant- 60,000 sf paying $6.00 psf and pays his proportionate share of Real Estate Taxes only.
B tenant -50,000 sf paying $ 5.00 psf and pays his proportionate share of real estate taxes and insurance
C tenant- 90,000 sf paying $4.00 psf and pays his proportionate share of real estate taxes, insurance and capital expenses
A credit loss should be taken on 5% of ALL income
Operating expenses are as follows:
Real estate taxes- the assessed market value of the building is $ 10,000,000. Real estate taxes are 3% of that amount
Insurance – $ 0.25 per square foot
Capital expenses- $ 0.10 per square foot.
Calculate the cash flow for the building