Reference no: EM132577908
Your client owns a 4- unit industrial building with tthe following leases:
Unit 1: 10,000 sqft ,Yearly rent $10 ,lease type gross
Unit 2: 15,000 sqft yearly rent $12, gross lease type
Unit 3: 15,000 sqft , yearly rent 6$ ,lease type triple net
Unit 4: 10,000 sqft,yearly rent 8$, double net lease type
Common areas are 8,000 square feet
No lease expires within the next three years and rents are comparable to the market
The operating expenses for the building are:
Property taxes: 70,000
Insurance 15,000
Maintenance: 10000
Security 3000
Snow removal 2000
Other: 5000
The owner handles the property managment himself but estimates that it would cost about 2% of base rents if he hired a property managemnt firm. Depreciation expense is 5000$. The vacancy and credit losses on average are 1% of the total base rent. The owner has a 50,000 non amortizing mortgage on the building and pays interest of 4000$ per year.
A) What is the total base rent included in the stablized NOI of the property
B) What is the total expense recover rent included in the stablized NOI of the property
C) What is the vacancy and credit allowance included in the stablized NOI of the property
D) What are the total expenses included in the stablized NOI of the propert