The restaurant is rented out for an Outback on the ground floor. It occupies 1,000 square feet. The restaurant has two rent categories. One is for base rent at $30 per square foot annually. Another is for a bill back of tenant improvements for building out the kitchen, equipment and space, along with interior decoration. Tenant improvements are $50 per square foot, charged back at 8% annually over five years.
What is the tenant improvement rent charged back to the tenant annually?
Capital expenses annually are $250 per room for furniture, fixtures and equipment (FF&E) inside the rooms. Another $200 per room annually is for outside the rooms, for roof, structure, reception area and parking.
What are funds from operations?
What is the cap rate, based on funds from operations?