Meridian Commerce Center — development pro forma
"Synthetic sample project. Figures are internally consistent, not market data."

USES OF FUNDS,Amount,$/gross sf,% of total
Land acquisition,9000000.00,33.58,0.0911
Hard cost,64320000.00,240.00,0.6509
Hard cost contingency (5%),3216000.00,12.00,0.0325
Soft cost (24%),16208640.00,60.48,0.1640
Construction period interest,6077363.04,22.68,0.0615
Total development cost,98822003.04,368.74,1.0000

SOURCES OF FUNDS,Amount,% of total
Construction loan,57316761.76,0.5800
Sponsor equity,41505241.28,0.4200

OPERATING BASIS,Value
Net rentable area (sf),233160
Rent $/sf/yr,54.0
Vacancy,0.11
Opex $/sf/yr,16.0

STABILIZED OPERATIONS,Amount
Effective gross revenue,11205669.60
Operating expense,3730560.00
Net operating income,7475109.60

RETURNS,Value
Yield on cost,0.075642
Exit capitalisation rate,0.067500
Spread over exit cap (bps),81
Stabilised value,110742364.44
Development profit,11920361.40
Unlevered IRR,0.116702
Levered IRR,0.146714
Equity multiple,2.333

CASH FLOW,Year 0,Year 1,Year 2,Year 3,Year 4,Year 5,Year 6,Year 7
Unlevered,-98822003.04,7680675.11,7891893.68,8108920.76,8331916.08,8561043.77,8796472.47,140689803.34
Levered,-41505241.28,2550824.93,2762043.50,2979070.58,3202065.90,3431193.59,3666622.29,78243191.40