You have been asked to develop a pro forma statement of cash flow for Betts Distribution Center, an Internet-based orderfulfillment/distribution/office/warehouse property. In addition to recoverable operating expenses, the new tenant will be billed for passthroughs 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 CENTERAge of ImprovementRentable SpaceSingle TenantFinancial Information:Rent8 years old230,000 square feet10-year lease term, net, netRecoverable Expenses from TenantOperating ExpensesProperty TaxesInsuranceOther 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$67,500Required:a. Develop a pro forma statement for the Betts property for a base year showing net operating income (NOI). Required:a. Develop a pro forma statement for the Betts property for a base year showing net operating income (NOI).RentAdd:Less:BETTS DISTRIBUTION CENTERTotal operating expensesCap expenses/Improvement allowance0$000

Base rent per square feet = $7 Number of square feet = 230,000 Total base rent =…

Answered: You have been asked to develop a pro…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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