Calculate the cash flow for the building

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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

Reference no: EM131869459

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