Consider the following cash flow statement for a property fully leased to a new tenant on a NNN basis beginning in Year1.Potential Base RentFree Rent and ConcessionsAbsorption and TurnoverVacancyTotal Rental RevenueExpense RecoveriesTotal Tenant RevenueOther RevenuesPotential gross RevenueVacancy and Collection LossEffective Gross RevenueRecoverable OpexNon Recoverable OpexTotal OpexYear 1$750,000$0$0$750,000$350,000$1,100,000$0$1,100,000$0$1,100,000$350,000$50,000$400,000Net Operating Income$700,000What would the Year 1 NOI be if there were 3-months of downtime before the tenant's lease began AND the tenant hadreceived 3-months of free base rent during the year?Group of answer choices$237,500$150,000$325,000$425,000

Charges that can be charged back to the tenant are known as the recoverable opex. These include…

Consider the following cash flow statement for a property fully leased to a new tenant on a NNN basis beginning in Year 1. Potential Base Rent Free Rent and Concessions Absorption and Turnover Vacancy Total Rental Revenue Expense Recoveries Total Tenant Revenue Other Revenues Recoverable Opex Non Recoverable Opex Total Opex Year 1 $750,000 $0 $0 $237,500 $150,000 $325,000 $425,000 $750,000 $350,000 $1,100,000 $0 Potential gross Revenue Vacancy and Collection Loss $0 Effective Gross Revenue $1,100,000 $1,100,000 $350,000 $50,000 $400,000 Net Operating Income $700,000 What would the Year 1 NOI be if there were 3-months of downtime before the tenant's lease began AND the tenant had received 3-months of free base rent during the year? Group of answer choices

Consider the following cash flow statement for a property fully leased to a new tenant on a NNN basis beginning in Year 1. Potential Base Rent Free Rent and Concessions Absorption and Turnover Vacancy Total Rental Revenue Expense Recoveries Total Tenant Revenue Other Revenues Recoverable Opex Non Recoverable Opex Total Opex Year 1 $750,000 $0 $0 $237,500 $150,000 $325,000 $425,000 $750,000 $350,000 $1,100,000 $0 Potential gross Revenue Vacancy and Collection Loss $0 Effective Gross Revenue $1,100,000 $1,100,000 $350,000 $50,000 $400,000 Net Operating Income $700,000 What would the Year 1 NOI be if there were 3-months of downtime before the tenant's lease began AND the tenant had received 3-months of free base rent during the year? Group of answer choices

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.3.3MBA

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You have been asked to develop a pro forma statement of cash flow for Betts Distribution Center, an Internet-based order fulfillment/distribution/office/warehouse property. In addition to recoverable operating expenses, the new tenant will be billed for pass throughs including insurance and property taxes, which will then be paid by the owner. The information given to you is listed below. Property Information: BETTS DISTRIBUTION CENTER Age of Improvement Rentable Space Single Tenant Financial Information: Rent 8 years old 230,000 square feet 10-year lease term, net, net Recoverable Expenses from Tenant Operating Expenses Property Taxes Insurance Other Cash Outlays: Allowances for: Recurring CAPEX/Improve Allowance $7.00 per square feet (7-year term), flat $3.00 per square feet, fixed $775,000 $53,000 $18,000 $67,500 Required: a. Develop a pro forma statement for the Betts property for a base year showing net operating income (NOI).
Calculate the NOI of a property based upon the information provided below: Building area: Average base rents: .NNN recoveries: Vacancy rate: Operating expenses . . • Percentage rent . Concessions . Annual debt service 165,720 O 315,720 O 375.720 440,220 O 478.500 O None of these 15,000 sqft $27.50 psf $4.00 psf 5.0% $4.30 psf $6,000 per year 3.0% $210,000 per year
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Please calculate capital allowance using declining balance method with the following information: Details of the Fixed Assets: Details Cost NBV Tax Written Down As at 31 Dec 2021 As at 31 Dec 2021 Value as at 1 Jan 2021Motor Vehicles 10,00,000 7,200,000 7,000,000Equipment 15,000,00 12,00,000 6,713,335Office buildings 45,000,000 36,000,000 36,450,000 Included in the cost of motor vehicle is a lorry purchased on 1 April 2021 for $2,000,000…