AjayBowalWildcatCase

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School

University of British Columbia *

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Course

307

Subject

Finance

Date

Jan 9, 2024

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xlsx

Pages

75

Uploaded by CorporalWildcat611

Report
Property Net Leasable area 85,813 Current occupancy 77,686 Current vacancy 9.5% Rent Current market rent (2009) $21.80 psf Loan Details Year 1 projected market rent (2010) $21.00 psf LTV Annual rent increase after year 2011 Interest Rate Amortization Stabilized NOI Term Credit allowance (bad debt) vacancy allowance not used in this case Amount Payment Operating Expenses Year 1 of rent revenues Purchase Price $10,400,000 Year 1 PSF Expense Inflation 2.5% per year Management fee on outside equity Cap rate at exit Leasing costs Leasing fees new Of first year's rent Loan Amount Leasing fees renew none Initial Equity Tis (new) $10.00 r 2010 (Year 1) Investors (LP) Wildcat (GP) Rent Roll Tenant SqFt Rent Adjustment Summer Weill 9,959 $241,506 $24.25 2.0% 7 North Shore Bank 44,280 $737,262 $16.65 2.0% 3 Illinois Institute of CFAs 10,250 $214,735 $20.95 2.0% 6 Penalty Year 1 Base Rent Year 1 Base Rent psf Term Remaining
Beverly & Torres 2,844 $66,265 $23.30 2.0% 7 iFinance Dealer Services 6,741 $164,480 $24.40 2.0% 5 APQ Consulting 3,612 $90,481 $25.05 2.0% 8 Suite 102 - Vacant 2,709 $0.00 0.0% Suite 107 - Vacant 2,709 $0.00 0.0% Suite 205 - Vacant 2,709 $0.00 0.0% Deal Structure Equity Spilt - Initial Investment Investor Wildcat Equity Spilt - Additional Investment Investor Wildcat Preferred return on cash flow Investor Wildcat Promote on cash flow - split of cash flows after preferred paid Investor Wildcat Preferred return of capital Investor Wildcat Cash flow split (pari-passu)after return of capital Investor
Wildcat
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On outstanding balance Lease Expiry Lease Type 12/31/2016 Modified Gross $2 12/31/2012 approx NNN $5 25% 12/31/2015 approx NNN $5 Expense reimbursement Est Discount to market
12/31/2016 Modified Gross $2 12/31/2014 Modified Gross $2 12/31/2017 Modified Gross $2 $5 $5 $5
Q1 - Basecase - 5 Year Hold Renewal Exit Cap New Lease Post 2011 market rent increase 0 1 Year 2009 2010 Projected Rent $1,802,073.00 New Lease TIs $10.00 $5.00 Modified Gross $2 $2.00 Expenses psf $12.04 Market rent $21.00 Occupancy Summer Weill 9,959 9,959 North Shore Bank 44,280 44,280 Illinois Institute of CFAs 10,250 10,250 Beverly & Torres 2,844 2,844 iFinance Dealer Services 6,741 6,741 APQ Consulting 3,612 3,612 Suite 102 - Vacant 2,709 Suite 107 - Vacant Suite 205 - Vacant Total Occupied $ 80,395.00 Occupancy Rate 93.69% Rent Rates Summer Weill $24.25 North Shore Bank $16.65 Illinois Institute of CFAs $20.95 Beverly & Torres $23.30 iFinance Dealer Services $24.40 APQ Consulting $25.05 Suite 102 - Vacant $21.00 Suite 107 - Vacant Suite 205 - Vacant Rent Revenue Summer Weill $ 241,506.00 North Shore Bank $ 737,262.00 Illinois Institute of CFAs $ 214,735.00 Beverly & Torres $ 66,265.00 iFinance Dealer Services $ 164,480.00 APQ Consulting $ 90,481.00 expenses psf are lower than $5)
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Suite 102 - Vacant $56,889.00 Suite 107 - Vacant 0 Suite 205 - Vacant 0 Subtotal Gross Rent Revenues $ - $ 1,571,618.00 Expense Recovery Summer Weill $19,918.00 $19,918.00 North Shore Bank $221,400.00 $221,400.00 Illinois Institute of CFAs $51,250.00 $51,250.00 Beverly & Torres $5,688.00 $5,688.00 iFinance Dealer Services $13,482.00 $13,482.00 APQ Consulting $7,224.00 $7,224.00 Suite 102 - Vacant $0 $13,545 Suite 107 - Vacant $0 $0 Suite 205 - Vacant $0 $0 Subtotal Operating Expense Frecovery $318,962.00 $332,507.00 Operating Revenue (w vacancy) $ 318,962.00 $ 1,904,125.00 Operating Expenses $ 958,686.98 NOI $945,438 Credit Allowance $66,644 Projected NOI $ 878,793.65 Capital Expenditures Leasing Fees $1,138 TIs $27,090 Subtotal Capital Expenditures $28,228 CFO $ 850,565.87 Loan Payment #NAME? Net Equity Cash Flows (BTCF) #NAME? Management Fee $ 51,870.00 Funds for Distribution to Partnership #NAME? Reversion
Purchase Price $10,400,000.00 Loan Taken $6,760,000.00 Sales Price Loan Repaid Loan Prepayment Penalty Net Purchase/Reversion Equity ($3,640,000) Equity injections Purchase/Investment Equity $3,640,000 Additional property equity injections $0 Additional partnership equity injections $0 Total Partnership Equity Injected $3,640,000 Return Calculations Property (Asset) Cash Flows $ 850,565.87 Purchase/Sale $ (10,400,000.00) Total ($10,400,000) $850,566 Yield (ROA) 8.2% IRR 10.7% Equity Equity Cash Flows #NAME? Equity Invested/Reversion ($3,640,000) Total ($3,640,000) #NAME? Equity yield #NAME? IRR 16.1% Partnership Partnership Cash Flows #NAME? Partnership Invested/Reversion ($3,640,000) Total ($3,640,000) #NAME? Partnership yield #NAME? IRR 14.9% INVESTOR ANALYSIS Investor Equity Capital Account Beginning equity investment balance $3,458,000.00
Additional investment $0 Preferred return earned $276,640.00 Preferred return paid #NAME? Accrued but unpaid preferred return $45,020 Ending equity investment balance $3,458,000 $3,458,000 Wildcat Equity Capital Account Beginning equity investment balance $182,000 Additional investment Subordinated return earned Subordinated return paid Accrued but unpaid subordinated return Ending equity investment balance $182,000 $182,000 Promote cash flow distribution Investor $0 Wildcat $0 Operational Equity Cash Flow: Investor level cash flows #NAME? Wildcat cash flows (excluding fees) $0 Reversion Allocations – these occur at sale Investor return of capital (equity) Wildcat return of capital (equity) Investor unpaid accumulated return Investor additional proceeds (after return of capital) Wildcat additional proceeds (after return of capital) Reversion Proceeds – these occur at sale Investor at sale (return of and on capital/equity) Wildcat at sale (return of and on capital/equity) Total Equity Before Tax Cash Flows & Reversion Investor Operating distributions $231,620 Reversion proceeds Equity Injections -$3,458,000.00 Total - cash flows + reversion - Investor ($3,458,000) $231,620 Yield on invested equity 6.70%
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IRR - Investory 13.5% Wildcat Operating distributions $0 Reversion proceeds Equity Injections ($182,000) Total - cash flows + reversion - Wildcat ($182,000) $0 Yield on invested equity 0.00% IRR 32.8% METRICS Project Level Metrics Purchase Price Sales Price $10,400,000 $11,453,610 Partnership Metrics Investor Wildcat Inital Equity $3,458,000 $182,000 Total Equity Invested $3,458,000 $182,000 Cash Flows Received (>=$0) $1,544,795 $88,549 Total Cash Flows (Pos & Neg) $1,544,795 $88,549 Reversion Proceeds $4,524,094 $619,603 Total Net Profits $2,610,889 $526,153 Equity Multiple 1.76 3.89 Equity IRR 13.5% 32.8% Avg yield on intital equity 8.9% 9.7% Avg yield on total equity 8.9% 9.7%
0.00% 2.00% 2 3 4 5 6 2011 2012 2013 2014 2015 $1,802,073.00 $1,838,114.46 $1,874,876.75 $1,912,374.28 $1,950,621.77 $10.25 $10.51 $10.77 $11.04 $11.31 $5.00 $5.00 $5.00 $5.00 $5.00 $2.00 $2.00 $2.00 $2.00 $2.00 $12.34 $12.65 $12.97 $13.29 $13.62 $21.00 $21.42 $21.85 $22.29 $22.73 9,959 9,959 9,959 9,959 9,959 44,280 44,280 44,280 44,280 44,280 10,250 10,250 10,250 10,250 10,250 2,844 2,844 2,844 2,844 2,844 6,741 6,741 6,741 6,741 6,741 3,612 3,612 3,612 3,612 3,612 2,709 2,709 2,709 2,709 2,709 2,709 2,709 2,709 2,709 2,709 2,709 2,709 2,709 2,709 $ 83,104.00 $ 85,813.00 $ 85,813.00 $ 85,813.00 $ 85,813.00 96.84% 100.00% 100.00% 100.00% 100.00% $24.74 $25.23 $25.73 $26.25 $26.77 $16.98 $17.32 $16.39 $16.71 $17.05 $21.37 $21.80 $22.23 $22.68 $23.13 $23.77 $24.24 $24.73 $25.22 $25.73 $24.89 $25.39 $25.89 $26.41 $22.73 $25.55 $26.06 $26.58 $27.12 $27.66 $21.00 $21.00 $21.00 $21.00 $22.73 $21.00 $21.00 $21.00 $21.00 $21.00 $21.42 $21.42 $21.42 $21.42 $ 246,336.12 $ 251,262.84 $ 256,288.10 $ 261,413.86 $ 266,642.14 $ 752,007.24 $ 767,047.38 $ 725,585.36 $ 740,097.07 $ 754,899.01 $ 219,029.70 $ 223,410.29 $ 227,878.50 $ 232,436.07 $ 237,084.79 $ 67,590.30 $ 68,942.11 $ 70,320.95 $ 71,727.37 $ 73,161.91 $ 167,769.60 $ 171,124.99 $ 174,547.49 $ 178,038.44 $ 153,230.18 $ 92,290.62 $ 94,136.43 $ 96,019.16 $ 97,939.54 $ 99,898.34
$56,889.00 $56,889.00 $56,889.00 $56,889.00 $61,575.57 $56,889.00 $56,889.00 $56,889.00 $56,889.00 $56,889.00 0 $58,026.78 $58,026.78 $58,026.78 $58,026.78 $ 1,658,801.58 $ 1,747,728.83 $ 1,722,444.34 $ 1,753,457.14 $ 1,761,407.72 $19,918.00 $19,918.00 $19,918.00 $19,918.00 $19,918.00 $221,400.00 $221,400.00 $221,400.00 $221,400.00 $221,400.00 $51,250.00 $51,250.00 $51,250.00 $51,250.00 $51,250.00 $5,688.00 $5,688.00 $5,688.00 $5,688.00 $5,688.00 $13,482.00 $13,482.00 $13,482.00 $13,482.00 $13,482.00 $7,224.00 $7,224.00 $7,224.00 $7,224.00 $7,224.00 $13,545 $13,545 $13,545 $13,545 $13,545 $13,545 $13,545 $13,545 $13,545 $13,545 $0 $13,545 $13,545 $13,545 $13,545 $346,052.00 $359,597.00 $359,597.00 $359,597.00 $359,597.00 $ 2,004,853.58 $ 2,107,325.83 $ 2,082,041.34 $ 2,113,054.14 $ 2,121,004.72 $ 982,654.15 $ 1,007,220.51 $ 1,032,401.02 $ 1,058,211.05 $ 1,084,666.32 $1,022,199 $1,100,105 $1,049,640 $1,054,843 $1,036,338 $70,170 $73,756 $72,871 $73,957 $74,235 $ 952,029.55 $ 1,026,348.92 $ 976,768.88 $ 980,886.19 $ 962,103.23 $1,138 $1,161 $0 $0 $0 $27,767 $28,461 $0 $0 $0 $28,905 $29,622 $0 $0 $0 $ 923,124.52 $ 996,726.95 $ 976,768.88 $ 980,886.19 $ 962,103.23 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? $ 51,870.00 $ 51,870.00 $ 51,870.00 $ 51,870.00 $ 51,870.00 #NAME? #NAME? #NAME? #NAME? #NAME?
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$11,453,609.92 $6,126,129.02 $183,784 $5,143,697 $ 923,124.52 $ 996,726.95 $ 976,768.88 $ 980,886.19 $ 11,453,609.92 $923,125 $996,727 $976,769 $12,434,496 8.9% 9.6% 9.4% 9.4% #NAME? #NAME? #NAME? #NAME? $5,143,697 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? $5,143,697 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? $3,458,000.00 $3,458,000.00 $3,458,000.00 $3,458,000.00
$0 $0 $0 $276,640.00 $276,640.00 $276,640.00 $276,640.00 #NAME? #NAME? #NAME? #NAME? $45,020 $45,020 $45,020 $45,020 $3,458,000 $3,458,000 $3,458,000 $3,458,000 $182,000 $182,000 $182,000 $182,000 $182,000 $182,000 $182,000 $182,000 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? $3,458,000.00 $182,000 $45,020 $1,021,074 $437,603 $4,524,094 $619,603 #NAME? #NAME? #NAME? #NAME? $4,524,094 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
#NAME? #NAME? #NAME? #NAME? $619,603 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? Total Cash Flows Avg Yield IRR $4,728,072 9.1% 10.7% Share Share Total Investor Wildcat $3,640,000 95.0% 5.0% $3,640,000 95.0% 5.0% $1,633,345 94.6% 5.4% $1,633,345 94.6% 5.4% $5,143,697 88.0% 12.0% $3,137,042 83.2% 16.8% 1.86 14.9% 9.0% 9.0%
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Q2- 3 Year Hold Renewal New Lease Year Projected Rent New Lease TIs Modified NNN $5 (pay $5 even though expenses psf are lower than $5) Modified Gross $2 Expenses psf Market rent Occupancy Summer Weill North Shore Bank Illinois Institute of CFAs Beverly & Torres iFinance Dealer Services APQ Consulting Suite 102 - Vacant Suite 107 - Vacant Suite 205 - Vacant Total Occupied Occupancy Rate Rent Rates Summer Weill North Shore Bank Illinois Institute of CFAs Beverly & Torres iFinance Dealer Services APQ Consulting Suite 102 - Vacant Suite 107 - Vacant Suite 205 - Vacant Rent Revenue Summer Weill North Shore Bank Illinois Institute of CFAs Beverly & Torres iFinance Dealer Services APQ Consulting
Suite 102 - Vacant Suite 107 - Vacant Suite 205 - Vacant Subtotal Gross Rent Revenues Expense Recovery Summer Weill North Shore Bank Illinois Institute of CFAs Beverly & Torres iFinance Dealer Services APQ Consulting Suite 102 - Vacant Suite 107 - Vacant Suite 205 - Vacant Subtotal Operating Expense Frecovery Operating Revenue (w vacancy) Operating Expenses NOI Credit Allowance Projected NOI Capital Expenditures Leasing Fees TIs Subtotal Capital Expenditures CFO Loan Payment Net Equity Cash Flows (BTCF) Management Fee Funds for Distribution to Partnership Reversion
Purchase Price Loan Taken Sales Price Loan Repaid Loan Prepayment Penalty Net Purchase/Reversion Equity Equity injections Purchase/Investment Equity Additional property equity injections Additional partnership equity injections Total Partnership Equity Injected Return Calculations Property (Asset) Cash Flows Purchase/Sale Total Yield (ROA) IRR Equity Equity Cash Flows Equity Invested/Reversion Total Equity yield IRR Partnership Partnership Cash Flows Partnership Invested/Reversion Total Partnership yield IRR INVESTOR ANALYSIS Investor Equity Capital Account Beginning equity investment balance
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Additional investment Preferred return earned Preferred return paid Accrued but unpaid preferred return Ending equity investment balance Wildcat Equity Capital Account Beginning equity investment balance Additional investment Subordinated return earned Subordinated return paid Accrued but unpaid subordinated return Ending equity investment balance Promote cash flow distribution Investor Wildcat Operational Equity Cash Flow: Investor level cash flows Wildcat cash flows (excluding fees) Reversion Allocations – these occur at sale Investor return of capital (equity) Wildcat return of capital (equity) Investor unpaid accumulated return Investor additional proceeds (after return of capital) Wildcat additional proceeds (after return of capital) Reversion Proceeds – these occur at sale Investor at sale (return of and on capital/equity) Wildcat at sale (return of and on capital/equity) Total Equity Before Tax Cash Flows & Reversion Investor Operating distributions Reversion proceeds Equity Injections Total - cash flows + reversion - Investor Yield on Invested Equity
IRR - Investory Wildcat Operating distributions Reversion proceeds Equity Injections Total - cash flows + reversion - Wildcat Yield on invested equity IRR METRICS Project Level Metrics Partnership Metrics Inital Equity Total Equity Invested Cash Flows Received (>=$0) Total Cash Flows (Pos & Neg) Reversion Proceeds Total Net Profits Equity Multiple Equity IRR Avg yield on intital equity Avg yield on total equity
Exit Cap 0.00% Post 2011 market rent increase 2.00% 0 1 2 3 2009 2010 2011 2012 $1,802,073.00 $1,802,073.00 $1,838,114.46 $10.00 $10.25 $10.51 $5.00 $5.00 $5.00 $2.00 $2.00 $2.00 $12.04 $12.34 $12.65 $21.00 $21.00 $21.42 9,959 9,959 9,959 9,959 44,280 44,280 44,280 44,280 10,250 10,250 10,250 10,250 2,844 2,844 2,844 2,844 6,741 6,741 6,741 6,741 3,612 3,612 3,612 3,612 2,709 2,709 2,709 2,709 2,709 2,709 $24.25 $24.74 $25.23 $16.65 $16.98 $17.32 $20.95 $21.37 $21.80 $23.30 $23.77 $24.24 $24.40 $24.89 $25.39 $25.05 $25.55 $26.06 $21.00 $21.00 $21.00 $21.00 $21.00 $21.42 $ 241,506.00 $ 246,336.12 $ 251,262.84 $ 737,262.00 $ 752,007.24 $ 767,047.38 $ 214,735.00 $ 219,029.70 $ 223,410.29 $ 66,265.00 $ 67,590.30 $ 68,942.11 $ 164,480.00 $ 167,769.60 $ 171,124.99 $ 90,481.00 $ 92,290.62 $ 94,136.43
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$56,889.00 $56,889.00 $56,889.00 0 $56,889.00 $56,889.00 0 0 $58,026.78 $ 1,571,618.00 $ 1,658,801.58 $ 1,747,728.83 $19,918.00 $19,918.00 $19,918.00 $221,400.00 $221,400.00 $221,400.00 $51,250.00 $51,250.00 $51,250.00 $5,688.00 $5,688.00 $5,688.00 $13,482.00 $13,482.00 $13,482.00 $7,224.00 $7,224.00 $7,224.00 $13,545 $13,545 $13,545 $0 $13,545 $13,545 $0 $0 $13,545 $332,507.00 $346,052.00 $359,597.00 $ 1,904,125.00 $ 2,004,853.58 $ 2,107,325.83 $ 958,686.98 $ 982,654.15 $ 1,007,220.51 $945,438 $1,022,199 $1,100,105 $66,644 $70,170 $73,756 $ 878,793.65 $ 952,029.55 $ 1,026,348.92 $ - $ - $ - $1,138 $1,138 $1,161 $27,090 $27,767 $28,461 $28,228 $28,905 $29,622 $ 850,565.87 $ 923,124.52 $ 996,726.95 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? $ 51,870.00 $ 51,870.00 $ 51,870.00 #NAME? #NAME? #NAME?
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$10,400,000.00 $6,760,000.00 $11,628,200.90 $6,404,736.63 $192,142 ($3,640,000) $5,031,322 $3,640,000 $0 $0 $3,640,000 $ 850,565.87 $ 923,124.52 $ 996,726.95 $ (10,400,000.00) $ 11,628,200.90 ($10,400,000) $850,566 $923,125 $12,624,928 8.2% 8.9% 9.6% 12.3% #NAME? #NAME? #NAME? ($3,640,000) $5,031,322 ($3,640,000) #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? 20.0% #NAME? #NAME? #NAME? ($3,640,000) $5,031,322 ($3,640,000) #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? 18.8% $3,458,000.00 $3,458,000.00 $3,458,000.00
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$0 $0 $276,640.00 $276,640.00 $276,640.00 #NAME? #NAME? #NAME? $45,020 $45,020 $45,020 $3,458,000 $3,458,000 $3,458,000 $182,000 $182,000 $182,000 $182,000 $182,000 $182,000 $182,000 $0 #NAME? #NAME? $0 #NAME? #NAME? #NAME? #NAME? #NAME? $0 #NAME? #NAME? $3,458,000 $182,000 $45,020 $942,412 $403,891 $4,445,431 $585,891 #NAME? #NAME? #NAME? $4,445,431 -$3,458,000.00 ($3,458,000) #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
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16.4% $0 #NAME? #NAME? $585,891 ($182,000) ($182,000) $0 #NAME? #NAME? 0.00% #NAME? #NAME? 51.2% Purchase Price Sales Price Total Cash Flows Avg Yield $10,400,000 $0 $2,770,417 8.9% Share Investor Wildcat Total Investor $3,458,000 $182,000 $3,640,000 95.0% $3,458,000 $182,000 $3,640,000 95.0% $874,977 $38,604 $913,581 95.8% $874,977 $38,604 $913,581 95.8% $4,445,431 $585,891 $5,031,322 88.4% $1,862,408 $442,495 $2,304,903 80.8% 1.54 3.43 1.63 16.4% 51.2% 18.8% 8.4% 7.1% 8.4% 8.4% 7.1% 8.4%
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4 5 6 2013 2014 2015 $1,874,876.75 $1,912,374.28 $1,950,621.77 $10.77 $11.04 $11.31 $5.00 $5.00 $5.00 $2.00 $2.00 $2.00 $12.97 $13.29 $13.62 $21.85 $22.29 $22.73 9,959 9,959 9,959 44,280 44,280 44,280 10,250 10,250 10,250 2,844 2,844 2,844 6,741 6,741 6,741 3,612 3,612 3,612 2,709 2,709 2,709 2,709 2,709 2,709 2,709 2,709 2,709 $25.73 $26.25 $26.77 $16.39 $16.71 $17.05 $22.23 $22.68 $23.13 $24.73 $25.22 $25.73 $25.89 $26.41 $22.73 $26.58 $27.12 $27.66 $21.00 $21.00 $22.73 $21.00 $21.00 $21.00 $21.42 $21.42 $21.42 $ 256,288.10 $ 261,413.86 $ 266,642.14 $ 725,585.36 $ 740,097.07 $ 754,899.01 $ 227,878.50 $ 232,436.07 $ 237,084.79 $ 70,320.95 $ 71,727.37 $ 73,161.91 $ 174,547.49 $ 178,038.44 $ 153,230.18 $ 96,019.16 $ 97,939.54 $ 99,898.34
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$56,889.00 $56,889.00 $61,578.48 $56,889.00 $56,889.00 $56,889.00 $58,026.78 $58,026.78 $58,026.78 $ 1,722,444.34 $ 1,753,457.14 $ 1,761,410.63 $19,918.00 $19,918.00 $19,918.00 $221,400.00 $221,400.00 $221,400.00 $51,250.00 $51,250.00 $51,250.00 $5,688.00 $5,688.00 $5,688.00 $13,482.00 $13,482.00 $13,482.00 $7,224.00 $7,224.00 $7,224.00 $13,545 $13,545 $13,545 $13,545 $13,545 $13,545 $13,545 $13,545 $13,545 $359,597.00 $359,597.00 $359,597.00 $ 2,082,041.34 $ 2,113,054.14 $ 2,121,007.63 $ 1,032,401.02 $ 1,058,211.05 $ 1,084,666.32 $1,049,640 $1,054,843 $1,036,341 $72,871 $73,957 $74,235 $ 976,768.88 $ 980,886.19 $ 962,106.04 $ - $ - $ - $0 $0 $0 $0 $0 $0 $0 $0 $0 $ 976,768.88 $ 980,886.19 $ 962,106.04 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? $ 51,870.00 $ 51,870.00 $ 51,870.00 #NAME? #NAME? #NAME?
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$0 $ - $0
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$0 $0 $0 $0 $0
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$0 $0 $0 IRR 12.3% Share Wildcat 5.0% 5.0% 4.2% 4.2% 11.6% 19.2%
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Q3 - Flat Renewal New Lease Year Projected Rent New Lease TIs Modified NNN $5 (pay $5 even though expenses psf are lower than $5) Modified Gross $2 Expenses psf Market rent Occupancy Summer Weill North Shore Bank Illinois Institute of CFAs Beverly & Torres iFinance Dealer Services APQ Consulting Suite 102 - Vacant Suite 107 - Vacant Suite 205 - Vacant Total Occupied Occupancy Rate Rent Rates Summer Weill North Shore Bank Illinois Institute of CFAs Beverly & Torres iFinance Dealer Services APQ Consulting Suite 102 - Vacant Suite 107 - Vacant Suite 205 - Vacant Rent Revenue Summer Weill North Shore Bank Illinois Institute of CFAs Beverly & Torres iFinance Dealer Services APQ Consulting
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Suite 102 - Vacant Suite 107 - Vacant Suite 205 - Vacant Subtotal Gross Rent Revenues Expense Recovery Summer Weill North Shore Bank Illinois Institute of CFAs Beverly & Torres iFinance Dealer Services APQ Consulting Suite 102 - Vacant Suite 107 - Vacant Suite 205 - Vacant Subtotal Operating Expense Frecovery Operating Revenue (w vacancy) Operating Expenses NOI Credit Allowance Projected NOI Capital Expenditures Leasing Fees TIs Subtotal Capital Expenditures CFO Loan Payment Net Equity Cash Flows (BTCF) Management Fee Funds for Distribution to Partnership Reversion
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Purchase Price Loan Taken Sales Price Loan Repaid Loan Prepayment Penalty Net Purchase/Reversion Equity Equity injections Purchase/Investment Equity Additional property equity injections Additional partnership equity injections Total Partnership Equity Injected Return Calculations Property (Asset) Cash Flows Purchase/Sale Total Yield (ROA) IRR Equity Equity Cash Flows Equity Invested/Reversion Total Equity yield IRR Partnership Partnership Cash Flows Partnership Invested/Reversion Total Partnership yield IRR INVESTOR ANALYSIS Investor Equity Capital Account Beginning equity investment balance
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Additional investment Preferred return earned Preferred return paid Accrued but unpaid preferred return Ending equity investment balance Wildcat Equity Capital Account Beginning equity investment balance Additional investment Subordinated return earned Subordinated return paid Accrued but unpaid subordinated return Ending equity investment balance Promote cash flow distribution Investor Wildcat Operational Equity Cash Flow: Investor level cash flows Wildcat cash flows (excluding fees) Reversion Allocations – these occur at sale Investor return of capital (equity) Wildcat return of capital (equity) Investor unpaid accumulated return Investor additional proceeds (after return of capital) Wildcat additional proceeds (after return of capital) Reversion Proceeds – these occur at sale Investor at sale (return of and on capital/equity) Wildcat at sale (return of and on capital/equity) Total Equity Before Tax Cash Flows & Reversion Investor Operating distributions Reversion proceeds Equity Injections Total - cash flows + reversion - Investor Yield on Invested Equity
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IRR - Investory Wildcat Operating distributions Reversion proceeds Equity Injections Total - cash flows + reversion - Wildcat Yield on invested equity IRR METRICS Project Level Metrics Partnership Metrics Inital Equity Total Equity Invested Cash Flows Received (>=$0) Total Cash Flows (Pos & Neg) Reversion Proceeds Total Net Profits Equity Multiple Equity IRR Avg yield on intital equity Avg yield on total equity
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Exit Cap 0.00% Post 2011 market rent increase 2.00% 0 1 2 3 2009 2010 2011 2012 $1,802,073.00 $1,802,073.00 $1,838,114.46 $10.00 $10.25 $10.51 $5.00 $5.00 $5.00 $2.00 $2.00 $2.00 $12.04 $12.34 $12.65 $21.00 $21.00 $21.42 9,959 9,959 9,959 9,959 44,280 44,280 44,280 44,280 10,250 10,250 10,250 10,250 2,844 2,844 2,844 2,844 6,741 6,741 6,741 6,741 3,612 3,612 3,612 3,612 77,686 77,686 77,686 77,686 $24.25 $24.74 $25.23 $16.65 $16.98 $17.32 $20.95 $21.37 $21.80 $23.30 $23.77 $24.24 $24.40 $24.89 $25.39 $25.05 $25.55 $26.06 $ 241,506.00 $ 246,336.12 $ 251,262.84 $ 737,262.00 $ 752,007.24 $ 767,047.38 $ 214,735.00 $ 219,029.70 $ 223,410.29 $ 66,265.00 $ 67,590.30 $ 68,942.11 $ 164,480.00 $ 167,769.60 $ 171,124.99 $ 90,481.00 $ 92,290.62 $ 94,136.43
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$0.00 $0.00 $0.00 0 $0.00 $0.00 0 0 $0.00 $ 1,514,729.00 $ 1,545,023.58 $ 1,575,924.05 $19,918.00 $19,918.00 $19,918.00 $221,400.00 $221,400.00 $221,400.00 $51,250.00 $51,250.00 $51,250.00 $5,688.00 $5,688.00 $5,688.00 $13,482.00 $13,482.00 $13,482.00 $7,224.00 $7,224.00 $7,224.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $318,962.00 $318,962.00 $318,962.00 $ 1,833,691.00 $ 1,863,985.58 $ 1,894,886.05 $ 923,984.69 $ 947,084.31 $ 970,761.41 $909,706 $916,901 $924,125 $64,179 $65,239 $66,321 $ 845,527.13 $ 851,661.78 $ 857,803.62 $ - $ - $ - $0 $0 $0 $0 $0 $0 $0 $0 $0 $ 845,527.13 $ 851,661.78 $ 857,803.62 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? $ 51,870.00 $ 51,870.00 $ 51,870.00 #NAME? #NAME? #NAME?
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$10,400,000.00 $6,760,000.00 ($3,640,000) $3,640,000 $0 $0 $3,640,000 $ 845,527.13 $ 851,661.78 $ 857,803.62 $ (10,400,000.00) ($10,400,000) $845,527 $851,662 $857,804 8.1% 8.2% 8.2% 6.4% #NAME? #NAME? #NAME? ($3,640,000) ($3,640,000) #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? 4.8% #NAME? #NAME? #NAME? ($3,640,000) ($3,640,000) #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? 3.3% $3,458,000.00 $3,458,000.00 $3,458,000.00
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$0 $0 $0 $276,640.00 $276,640.00 $276,640.00 #NAME? #NAME? #NAME? $50,058 #NAME? #NAME? $3,458,000 $3,458,000 $3,458,000 $182,000 $182,000 $182,000 $182,000 $182,000 $182,000 $182,000 $0 #NAME? #NAME? $0 #NAME? #NAME? #NAME? #NAME? #NAME? $0 #NAME? #NAME? $226,582 #NAME? #NAME? -$3,458,000.00 ($3,458,000) $226,582 #NAME? #NAME? 6.55% #NAME? #NAME?
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4.5% $0 #NAME? #NAME? ($182,000) ($182,000) $0 #NAME? #NAME? 0.00% #NAME? #NAME? #NAME? Purchase Price Sales Price Total Cash Flows Avg Yield $10,400,000 $9,426,652 $4,178,314 8.0% Share Investor Wildcat Total Investor $3,458,000 $182,000 $3,640,000 95.0% $3,458,000 $182,000 $3,640,000 95.0% $1,083,587 $0 $1,083,587 100.0% $1,083,587 $0 $1,083,587 100.0% $3,116,739 $0 $3,116,739 100.0% $742,326 ($182,000) $560,326 132.5% 1.21 - 1.15 4.5% #NAME? 3.3% 6.3% 0.0% 6.0% 6.3% 0.0% 6.0%
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4 5 6 2013 2014 2015 $1,874,876.75 $1,912,374.28 $1,950,621.77 $10.77 $11.04 $11.31 $5.00 $5.00 $5.00 $2.00 $2.00 $2.00 $12.97 $13.29 $13.62 $21.85 $22.29 $22.73 9,959 9,959 9,959 44,280 44,280 44,280 10,250 10,250 10,250 2,844 2,844 2,844 6,741 6,741 6,741 3,612 3,612 3,612 77,686 77,686 77,686 $25.73 $26.25 $26.77 $16.39 $16.71 $17.05 $22.23 $22.68 $23.13 $24.73 $25.22 $25.73 $25.89 $26.41 $22.73 $26.58 $27.12 $27.66 $ 256,288.10 $ 261,413.86 $ 266,642.14 $ 725,585.36 $ 740,097.07 $ 754,899.01 $ 227,878.50 $ 232,436.07 $ 237,084.79 $ 70,320.95 $ 71,727.37 $ 73,161.91 $ 174,547.49 $ 178,038.44 $ 153,230.18 $ 96,019.16 $ 97,939.54 $ 99,898.34
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$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $ 1,550,639.56 $ 1,581,652.36 $ 1,584,916.37 $19,918.00 $19,918.00 $19,918.00 $221,400.00 $221,400.00 $221,400.00 $51,250.00 $51,250.00 $51,250.00 $5,688.00 $5,688.00 $5,688.00 $13,482.00 $13,482.00 $13,482.00 $7,224.00 $7,224.00 $7,224.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $318,962.00 $318,962.00 $318,962.00 $ 1,869,601.56 $ 1,900,614.36 $ 1,903,878.37 $ 995,030.45 $ 1,019,906.21 $ 1,045,403.87 $874,571 $880,708 $858,475 $65,436 $66,522 $66,636 $ 809,135.06 $ 814,186.64 $ 791,838.76 $ - $ - $ - $0 $0 $0 $0 $0 $0 $0 $0 $0 $ 809,135.06 $ 814,186.64 $ 791,838.76 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? $ 51,870.00 $ 51,870.00 $ 51,870.00 #NAME? #NAME? #NAME?
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$9,426,651.92 $6,126,129.02 $183,784 $3,116,739 $ 809,135.06 $ 814,186.64 $ 9,426,651.92 $809,135 $10,240,839 7.8% 7.8% #NAME? #NAME? $3,116,739 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? $3,116,739 #NAME? #NAME? #NAME? #NAME? $3,458,000.00 $3,458,000.00
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$0 $276,640.00 $276,640.00 #NAME? #NAME? #NAME? #NAME? $3,458,000 $3,458,000 $182,000 $182,000 $182,000 $182,000 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? $3,116,739 $3,116,739 $0 #NAME? #NAME? $3,116,739 #NAME? #NAME? #NAME? #NAME?
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#NAME? #NAME? $0 #NAME? #NAME? #NAME? IRR 6.4% Share Wildcat 5.0% 5.0% 0.0% 0.0% 0.0% -32.5%
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Q4 - Strong Recovery Renewal New Lease Year Projected Rent New Lease TIs Modified NNN $5 (pay $5 even though expenses psf are lower than $5) Modified Gross $2 Expenses psf Market rent Occupancy Summer Weill North Shore Bank Illinois Institute of CFAs Beverly & Torres iFinance Dealer Services APQ Consulting Suite 102 - Vacant Suite 107 - Vacant Suite 205 - Vacant Total Occupied Occupancy Rate Rent Rates Summer Weill North Shore Bank Illinois Institute of CFAs Beverly & Torres iFinance Dealer Services APQ Consulting Suite 102 - Vacant Suite 107 - Vacant Suite 205 - Vacant Rent Revenue Summer Weill North Shore Bank Illinois Institute of CFAs Beverly & Torres iFinance Dealer Services APQ Consulting
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Suite 102 - Vacant Suite 107 - Vacant Suite 205 - Vacant Subtotal Gross Rent Revenues Expense Recovery Summer Weill North Shore Bank Illinois Institute of CFAs Beverly & Torres iFinance Dealer Services APQ Consulting Suite 102 - Vacant Suite 107 - Vacant Suite 205 - Vacant Subtotal Operating Expense Frecovery Operating Revenue (w vacancy) Operating Expenses NOI Credit Allowance Projected NOI Capital Expenditures Leasing Fees TIs Subtotal Capital Expenditures CFO Loan Payment Net Equity Cash Flows (BTCF) Management Fee Funds for Distribution to Partnership Reversion
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Purchase Price Loan Taken Sales Price Loan Repaid Loan Prepayment Penalty Net Purchase/Reversion Equity Equity injections Purchase/Investment Equity Additional property equity injections Additional partnership equity injections Total Partnership Equity Injected Return Calculations Property (Asset) Cash Flows Purchase/Sale Total Yield (ROA) IRR Equity Equity Cash Flows Equity Invested/Reversion Total Equity yield IRR Partnership Partnership Cash Flows Partnership Invested/Reversion Total Partnership yield IRR INVESTOR ANALYSIS Investor Equity Capital Account Beginning equity investment balance
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Additional investment Preferred return earned Preferred return paid Accrued but unpaid preferred return Ending equity investment balance Wildcat Equity Capital Account Beginning equity investment balance Additional investment Subordinated return earned Subordinated return paid Accrued but unpaid subordinated return Ending equity investment balance Promote cash flow distribution Investor Wildcat Operational Equity Cash Flow: Investor level cash flows Wildcat cash flows (excluding fees) Reversion Allocations – these occur at sale Investor return of capital (equity) Wildcat return of capital (equity) Investor unpaid accumulated return Investor additional proceeds (after return of capital) Wildcat additional proceeds (after return of capital) Reversion Proceeds – these occur at sale Investor at sale (return of and on capital/equity) Wildcat at sale (return of and on capital/equity) Total Equity Before Tax Cash Flows & Reversion Investor Operating distributions Reversion proceeds Equity Injections Total - cash flows + reversion - Investor Yield on Invested Equity
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IRR - Investory Wildcat Operating distributions Reversion proceeds Equity Injections Total - cash flows + reversion - Wildcat Yield on invested equity IRR METRICS Project Level Metrics Partnership Metrics Inital Equity Total Equity Invested Cash Flows Received (>=$0) Total Cash Flows (Pos & Neg) Reversion Proceeds Total Net Profits Equity Multiple Equity IRR Avg yield on intital equity Avg yield on total equity
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Exit Cap 0.00% Post 2011 market rent increase 5.00% 0 1 2 3 2009 2010 2011 2012 $1,802,073.00 $1,802,073.00 $1,892,176.65 $10.00 $10.25 $10.51 $5.00 $5.00 $5.00 $2.00 $2.00 $2.00 $12.04 $12.34 $12.65 $21.00 $21.00 $22.05 9,959 9,959 9,959 9,959 44,280 44,280 44,280 44,280 10,250 10,250 10,250 10,250 2,844 2,844 2,844 2,844 6,741 6,741 6,741 6,741 3,612 3,612 3,612 3,612 2,709 2,709 2,709 2,709 2,709 2,709 $24.25 $24.74 $25.23 $16.65 $16.98 $17.32 $20.95 $21.37 $21.80 $23.30 $23.77 $24.24 $24.40 $24.89 $25.39 $25.05 $25.55 $26.06 $21.00 $21.00 $21.00 $21.00 $21.00 $22.05 $ 241,506.00 $ 246,336.12 $ 251,262.84 $ 737,262.00 $ 752,007.24 $ 767,047.38 $ 214,735.00 $ 219,029.70 $ 223,410.29 $ 66,265.00 $ 67,590.30 $ 68,942.11 $ 164,480.00 $ 167,769.60 $ 171,124.99 $ 90,481.00 $ 92,290.62 $ 94,136.43
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$56,889.00 $56,889.00 $56,889.00 0 $56,889.00 $56,889.00 0 0 $59,733.45 $ 1,571,618.00 $ 1,658,801.58 $ 1,749,435.50 $19,918.00 $19,918.00 $19,918.00 $221,400.00 $221,400.00 $221,400.00 $51,250.00 $51,250.00 $51,250.00 $5,688.00 $5,688.00 $5,688.00 $13,482.00 $13,482.00 $13,482.00 $7,224.00 $7,224.00 $7,224.00 $13,545 $13,545 $13,545 $0 $13,545 $13,545 $0 $0 $13,545 $332,507.00 $346,052.00 $359,597.00 $ 1,904,125.00 $ 2,004,853.58 $ 2,109,032.50 $ 958,686.98 $ 982,654.15 $ 1,007,220.51 $945,438 $1,022,199 $1,101,812 $66,644 $70,170 $73,816 $ 878,793.65 $ 952,029.55 $ 1,027,995.86 $ - $ - $ - $1,138 $1,138 $1,195 $27,090 $27,767 $28,461 $28,228 $28,905 $29,656 $ 850,565.87 $ 923,124.52 $ 998,339.76 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? $ 51,870.00 $ 51,870.00 $ 51,870.00 #NAME? #NAME? #NAME?
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$10,400,000.00 $6,760,000.00 ($3,640,000) $3,640,000 $0 $0 $3,640,000 $ 850,565.87 $ 923,124.52 $ 998,339.76 $ (10,400,000.00) ($10,400,000) $850,566 $923,125 $998,340 8.2% 8.9% 9.6% 13.3% #NAME? #NAME? #NAME? ($3,640,000) ($3,640,000) #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? 21.9% #NAME? #NAME? #NAME? ($3,640,000) ($3,640,000) #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? 20.8% $3,458,000.00 $3,458,000.00 $3,458,000.00
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$0 $0 $0 $276,640.00 $276,640.00 $276,640.00 #NAME? #NAME? #NAME? $45,020 $45,020 $45,020 $3,458,000 $3,458,000 $3,458,000 $182,000 $182,000 $182,000 $182,000 $182,000 $182,000 $182,000 $0 #NAME? #NAME? $0 #NAME? #NAME? #NAME? #NAME? #NAME? $0 #NAME? #NAME? $231,620 #NAME? #NAME? -$3,458,000.00 ($3,458,000) $231,620 #NAME? #NAME? 7.18% #NAME? #NAME?
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18.2% $0 #NAME? #NAME? ($182,000) ($182,000) $0 #NAME? #NAME? 0.00% #NAME? #NAME? 48.9% Purchase Price Sales Price Total Cash Flows Avg Yield $10,400,000 $13,188,815 $4,817,402 9.3% Share Investor Wildcat Total Investor $3,458,000 $182,000 $3,640,000 95.0% $3,458,000 $182,000 $3,640,000 95.0% $1,607,326 $115,348 $1,722,674 93.3% $1,607,326 $115,348 $1,722,674 93.3% $5,738,737 $1,140,165 $6,878,902 83.4% $3,888,063 $1,073,513 $4,961,576 78.4% 2.12 6.90 2.36 18.2% 48.9% 20.8% 9.3% 12.7% 9.5% 9.3% 12.7% 9.5%
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4 5 6 2013 2014 2015 $1,986,785.48 $2,086,124.76 $2,190,430.99 $10.77 $11.04 $11.31 $5.00 $5.00 $5.00 $2.00 $2.00 $2.00 $12.97 $13.29 $13.62 $23.15 $24.31 $25.53 9,959 9,959 9,959 44,280 44,280 44,280 10,250 10,250 10,250 2,844 2,844 2,844 6,741 6,741 6,741 3,612 3,612 3,612 2,709 2,709 2,709 2,709 2,709 2,709 2,709 2,709 2,709 $25.73 $26.25 $26.77 $17.36 $17.71 $18.07 $22.23 $22.68 $23.13 $24.73 $25.22 $25.73 $25.89 $26.41 $26.94 $26.58 $27.12 $27.66 $21.00 $21.00 $25.53 $21.00 $21.00 $21.00 $22.05 $22.05 $22.05 $ 256,288.10 $ 261,413.86 $ 266,642.14 $ 768,894.53 $ 784,272.42 $ 799,957.86 $ 227,878.50 $ 232,436.07 $ 237,084.79 $ 70,320.95 $ 71,727.37 $ 73,161.91 $ 174,547.49 $ 178,038.44 $ 181,599.21 $ 96,019.16 $ 97,939.54 $ 99,898.34
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$56,889.00 $56,889.00 $69,148.94 $56,889.00 $56,889.00 $56,889.00 $59,733.45 $59,733.45 $59,733.45 $ 1,767,460.18 $ 1,799,339.15 $ 1,844,115.64 $19,918.00 $19,918.00 $19,918.00 $221,400.00 $221,400.00 $221,400.00 $51,250.00 $51,250.00 $51,250.00 $5,688.00 $5,688.00 $5,688.00 $13,482.00 $13,482.00 $13,482.00 $7,224.00 $7,224.00 $7,224.00 $13,545 $13,545 $13,545 $13,545 $13,545 $13,545 $13,545 $13,545 $13,545 $359,597.00 $359,597.00 $359,597.00 $ 2,127,057.18 $ 2,158,936.15 $ 2,203,712.64 $ 1,032,401.02 $ 1,058,211.05 $ 1,084,666.32 $1,094,656 $1,100,725 $1,119,046 $74,447 $75,563 $77,130 $ 1,020,209.15 $ 1,025,162.34 $ 1,041,916.37 $ - $ - $ - $0 $0 $0 $0 $0 $0 $0 $0 $0 $ 1,020,209.15 $ 1,025,162.34 $ 1,041,916.37 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? $ 51,870.00 $ 51,870.00 $ 51,870.00 #NAME? #NAME? #NAME?
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$13,188,814.86 $6,126,129.02 $183,784 $6,878,902 $ 1,020,209.15 $ 1,025,162.34 $ 13,188,814.86 $1,020,209 $14,213,977 9.8% 9.9% #NAME? #NAME? $6,878,902 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? $6,878,902 #NAME? #NAME? #NAME? #NAME? $3,458,000.00 $3,458,000.00
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$0 $276,640.00 $276,640.00 #NAME? #NAME? $45,020 $45,020 $3,458,000 $3,458,000 $182,000 $182,000 $182,000 $182,000 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? $3,458,000.00 $182,000 $45,020 $2,235,718 $958,165 $5,738,737 $1,140,165 #NAME? #NAME? $5,738,737 #NAME? #NAME? #NAME? #NAME?
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#NAME? #NAME? $1,140,165 #NAME? #NAME? #NAME? #NAME? IRR 13.3% Share Wildcat 5.0% 5.0% 6.7% 6.7% 16.6% 21.6%
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Q5 - Financial Crsis Renewal New Lease Year Projected Rent New Lease TIs Modified NNN $5 (pay $5 even though expenses psf are lower than $5) Modified Gross $2 Expenses psf Market rent Occupancy Summer Weill North Shore Bank New Tenant 1 New Tenant 2 Vacant Illinois Institute of CFAs Beverly & Torres iFinance Dealer Services Replacement APQ Consulting Suite 102 - Vacant Suite 107 - Vacant Suite 205 - Vacant Total Occupied Occupancy Rate Rent Rates Summer Weill North Shore Bank New Tenant 1 New Tenant 2 Vacant Illinois Institute of CFAs Beverly & Torres iFinance Dealer Services replacement APQ Consulting Suite 102 - Vacant Suite 107 - Vacant Suite 205 - Vacant Rent Revenue
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Summer Weill North Shore Bank New Tenant 1 New Tenant 2 Vacant Illinois Institute of CFAs Beverly & Torres iFinance Dealer Services Replacement APQ Consulting Suite 102 - Vacant Suite 107 - Vacant Suite 205 - Vacant Subtotal Gross Rent Revenues Expense Recovery Summer Weill North Shore Bank New Tenant 1 New Tenant 2 Vacant Illinois Institute of CFAs Beverly & Torres iFinance Dealer Services Replacement APQ Consulting Suite 102 - Vacant Suite 107 - Vacant Suite 205 - Vacant Subtotal Operating Expense Frecovery Operating Revenue (w vacancy) Operating Expenses NOI Credit Allowance Projected NOI Capital Expenditures Leasing Fees TIs Subtotal Capital Expenditures
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CFO Loan Payment Net Equity Cash Flows (BTCF) Management Fee Funds for Distribution to Partnership Reversion Purchase Price Loan Taken Sales Price Loan Repaid Loan Prepayment Penalty Net Purchase/Reversion Equity Equity injections Purchase/Investment Equity Additional property equity injections Additional partnership equity injections Total Partnership Equity Injected Return Calculations Property (Asset) Cash Flows Purchase/Sale Total Yield (ROA) IRR Equity Equity Cash Flows Equity Invested/Reversion Total Equity yield IRR
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Partnership Partnership Cash Flows Partnership Invested/Reversion Total Partnership yield IRR INVESTOR ANALYSIS Investor Equity Capital Account Beginning equity investment balance Additional investment Preferred return earned Preferred return paid Accrued but unpaid preferred return Ending equity investment balance Wildcat Equity Capital Account Beginning equity investment balance Additional investment Subordinated return earned Subordinated return paid Accrued but unpaid subordinated return Ending equity investment balance Promote cash flow distribution Investor Wildcat Operational Equity Cash Flow: Investor level cash flows Wildcat cash flows (excluding fees) Reversion Allocations – these occur at sale Investor return of capital (equity) Wildcat return of capital (equity) Investor unpaid accumulated return Investor additional proceeds (after return of capital) Wildcat additional proceeds (after return of capital) Reversion Proceeds – these occur at sale
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Investor at sale (return of and on capital/equity) Wildcat at sale (return of and on capital/equity) Total Equity Before Tax Cash Flows & Reversion Investor Operating distributions Reversion proceeds Equity Injections Total - cash flows + reversion - Investor Yield on Invested Equity IRR - Investory Wildcat Operating distributions Reversion proceeds Equity Injections Total - cash flows + reversion - Wildcat Yield on invested equity IRR METRICS Project Level Metrics Partnership Metrics Inital Equity Total Equity Invested Cash Flows Received (>=$0) Total Cash Flows (Pos & Neg) Reversion Proceeds Total Net Profits Equity Multiple Equity IRR Avg yield on intital equity Avg yield on total equity
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. Exit Cap 8.90% Post 2011 market rent increase 0 1 2 3 2009 2010 2011 2012 $21.00 $21.00 $21.00 $10.00 $10.25 $10.51 $5.00 $5.00 $5.00 $2.00 $2.00 $2.00 $12.04 $12.34 $12.65 $21.00 $21.00 $21.00 9,959 9,959 9,959 44,280 44,280 44,280 10,250 10,250 10,250 2,844 2,844 2,844 3,612 3,612 3,612 $24.25 $24.74 $25.23 $16.65 $16.98 $17.32 $20.95 $21.37 $21.80 $23.30 $23.77 $24.24 $25.05 $25.55 $26.06
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$ 241,505.75 $ 246,335.87 $ 251,262.58 $ 737,262.00 $ 752,007.24 $ 767,047.38 $ 214,737.50 $ 219,032.25 $ 223,412.90 $ 66,265.20 $ 67,590.50 $ 68,942.31 $ - $ - $ - $ 90,480.60 $ 92,290.21 $ 94,136.02 $0.00 $0.00 $0.00 0 $0.00 $0.00 0 0 $0.00 $ 1,350,251.05 $ 1,377,256.07 $ 1,404,801.19 $19,918.00 $19,918.00 $19,918.00 $221,400.00 $221,400.00 $221,400.00 $51,250.00 $51,250.00 $51,250.00 $5,688.00 $5,688.00 $5,688.00 $0.00 $0.00 $0.00 $7,224.00 $7,224.00 $7,224.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $305,480.00 $305,480.00 $305,480.00 $ 1,655,731.05 $ 1,682,736.07 $ 1,710,281.19 $ 823,653.14 $ 844,244.47 $ 865,350.58 $832,078 $838,492 $844,931 $57,951 $58,896 $59,860 $ 774,127.32 $ 779,595.84 $ 785,070.77 $ - $ - $ - $0 $0 $0 $0 $0 $0 $0 $0 $0
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$ 774,127.32 $ 779,595.84 $ 785,070.77 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? $ 51,870.00 $ 51,870.00 $ 51,870.00 #NAME? #NAME? #NAME? $10,400,000.00 $6,760,000.00 ($3,640,000) $3,640,000 $0 $0 $3,640,000 $0 $0 $0 $ 774,127.32 $ 779,595.84 $ 785,070.77 $ (10,400,000.00) ($10,400,000) $774,127 $779,596 $785,071 7.4% 7.5% 7.5% 7.5% #NAME? #NAME? #NAME? ($3,640,000) ($3,640,000) #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? 7.9%
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#NAME? #NAME? #NAME? ($3,640,000) ($3,640,000) #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? 6.6% $3,458,000.00 $3,458,000.00 $3,458,000.00 $0 $0 $276,640.00 $276,640.00 $276,640.00 #NAME? #NAME? #NAME? $121,458 #NAME? #NAME? $3,458,000 $3,458,000 $3,458,000 $182,000 $182,000 $182,000 $182,000 $182,000 $182,000 $182,000 $0 #NAME? #NAME? $0 #NAME? #NAME? #NAME? #NAME? #NAME? $0 #NAME? #NAME?
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$155,182 #NAME? #NAME? -$3,458,000.00 ($3,458,000) $155,182 #NAME? #NAME? 4.49% #NAME? #NAME? 7.5% $0 #NAME? #NAME? ($182,000) ($182,000) $0 #NAME? #NAME? 0.00% 0.00% 0.00% -19.9% Purchase Price Sales Price Total Cash Flows Avg Yield $10,400,000 $10,588,910 $3,728,969 7.2% Share Investor Wildcat Total Investor $3,458,000 $182,000 $3,640,000 95.0% $3,539,387 $186,284 $3,725,670 95.0% $719,912 $0 $719,912 100.0% $4,854,222 $0 $4,854,222 100.0% $4,215,697 $63,301 $4,278,997 98.5% $1,396,222 ($122,983) $1,273,239 109.7% 1.39 0.34 1.34 7.5% -19.9% 6.6% 4.2% 0.0% 3.5% 4.1% 0.0% 3.4%
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4 5 6 2013 2014 2015 $21.00 $21.00 $21.00 $10.77 $11.04 $11.31 $2.00 $5.00 $5.00 $2.00 $2.00 $2.00 $12.97 $13.29 $13.62 $21.00 $21.50 $22.00 9,959 9,959 9,959 20,000 20,000 20,000 10,000 10,000 10,000 5,000 5,000 10,250 10,250 10,250 2,844 2,844 2,844 6,741 6,741 6,741 3,612 3,612 3,612 2,709 2,709 2,709 2,709 2,709 $25.73 $26.25 $26.77 $17.85 $18.21 $18.57 $21.00 $21.00 $21.00 $21.50 $21.50 $22.23 $22.68 $23.13 $24.73 $25.22 $25.73 $21.00 $21.00 $21.00 $26.58 $27.11 $27.66 $21.00 $21.00 $21.00 $21.50 $21.50
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$ 256,287.83 $ 261,413.59 $ 266,641.86 $ 357,000.00 $ 364,140.00 $ 371,422.80 $ 210,000.00 $ 210,000.00 $ 210,000.00 $ 107,500.00 $ 107,500.00 $ 227,881.15 $ 232,438.78 $ 237,087.55 $ 70,321.16 $ 71,727.58 $ 73,162.14 $ 141,561.00 $ 141,561.00 $ 141,561.00 $ 96,018.74 $ 97,939.11 $ 99,897.89 $56,889.00 $56,889.00 $56,889.00 $0.00 $58,243.50 $58,243.50 $0.00 $0.00 $0.00 $ 1,415,958.88 $ 1,601,852.56 $ 1,622,405.74 $19,918.00 $19,918.00 $19,918.00 $100,000.00 $100,000.00 $100,000.00 $50,000.00 $50,000.00 $50,000.00 $25,000.00 $25,000.00 $51,250.00 $51,250.00 $51,250.00 $5,688.00 $5,688.00 $5,688.00 $33,705.00 $33,705.00 $33,705.00 $7,224.00 $7,224.00 $7,224.00 $13,545 $13,545 $13,545 $0 $13,545 $13,545 $0 $0 $0 $281,330.00 $319,875.00 $319,875.00 $ 1,697,288.88 $ 1,921,727.56 $ 1,942,280.74 $ 886,984.35 $ 909,158.95 $ 931,887.93 $810,305 $1,012,569 $1,010,393 $59,405 $67,260 $67,980 $ 750,899.43 $ 945,308.14 $ 942,412.99 $ - $ - $ - $8,169 $3,315 $0 $209,455 $85,093 $0 $217,624 $88,408 $0
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$ 533,275.20 $ 856,900.34 $ 942,412.99 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? $ 51,870.00 $ 51,870.00 $ 51,870.00 #NAME? #NAME? #NAME? $10,588,909.99 $6,126,129.02 $183,784 $4,278,997 $33,800 $51,870 $85,670 $ 533,275.20 $ 856,900.34 $ 10,588,909.99 $533,275 $11,445,810 5.1% 8.2% #NAME? #NAME? $4,278,997 #NAME? #NAME? #NAME? #NAME?
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#NAME? #NAME? $4,278,997 #NAME? #NAME? #NAME? #NAME? $3,458,000.00 $3,539,386.80 $81,387 $283,150.94 $283,150.94 $0.00 $237,954.82 #NAME? #NAME? $3,539,387 $3,539,387 $182,000 $186,284 $4,284 $186,284 $186,284 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? $3,539,387 $63,301 $676,310
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$4,215,697 $63,301 #NAME? #NAME? $4,215,697 ($81,387) #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? $63,301 ($4,284) #NAME? #NAME? 0.00% 0.00% IRR 7.5% Share Wildcat 5.0% 5.0% 0.0% 0.0% 1.5% -9.7%
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