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REAE 5311 Property Analysis

REAE 5311 Property Analysis. By: Eddie Munoz. Subject Properties. Apartments. Class A Office. Retail. 6,000 sq ft for land @ $40 sq ft. 12,000 Built Sq. Ft 10,000 leasable Sq Ft $28.85 sq ft / yr ( dfwi ) Rent Increase: 3% 91% occupancy ( dfwi ) OI: Signage fees $12,000/ yr

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REAE 5311 Property Analysis

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  1. REAE 5311 Property Analysis By: Eddie Munoz

  2. Subject Properties Apartments Class A Office Retail • 6,000 sqft for land @ $40 sq ft. • 12,000 Built Sq. Ft • 10,000 leasable Sq Ft • $28.85 sqft/yr (dfwi) • Rent Increase: 3% • 91% occupancy (dfwi) • OI: Signage fees • $12,000/yr • Street parking • 25 yr amt. loan @ 4.5% • 6,000 sqft for land @ $40 sq ft. • 12,000 Built Sq. Ft • 10,000 leasable Sq Ft • $14 sqft/yr (Marcus & Millichap) • Rent Increase: 2%/yr • 94% occupancy (dfwi) • OI: Signage fees • $12,000/yr • Street parking • 25 yr amt. loan @5% • 6,000 sqft for land @ $40 sq ft. • 12,000 Built Sq. Ft • 10,000 leasable Sq Ft • $1.57 sqft/month • Rent Increase: 2%/yr • 94% occupancy (dfwi) • OI: Pet fees, storage fees • $3600/yr • Street Parking • 30yr amt. loan @ 4% http://www.steelheadcapital.com/rates/

  3. Apartments Pro-Forma

  4. Class A Office Pro Forma According to www.facilitiesnet.com Class A Office buildings typically incur 25-30% TOE

  5. Retail Pro-Forma

  6. Comparisons & Conclusion Retail Apartments Class A Office • $21.41 sqft/yr • Under $28.85 sqft/yr • ESP $2,424,061 • IRR 32.38% • According to Transwestern’s DFW Outlook Report: Although FW CBD’s vacancy rate is 9%, that number is declining due to increasing needs. Office jobs are on the rise particularly in the financial services industry. • Opportunity for tax abatements for businesses to migrate to Downtown FW • Best possible option for this scenario • $17.80 sqft/yr • Over $14.00 sqft/yr • ESP $1,843,818 • IRR 31.07% • According to Marcus & Millichap: the 2013 Retail Forecast calls for growth in DFW employment, decline in vacancies, and increased asking rents • 3rd Possible option • $17.71 sqft/yr • Under $18.84 sqft/yr • ESP $2,238,342 • IRR 24.4% • Increased interest in living in downtown Fort Worth; however cautious of market discrepancies (Montgomery Plaza) • 2nd Best possible option for this scenario

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