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

USES OF FUNDS,Amount,$/gross sf,% of total
Land acquisition,6800000.00,20.00,0.1463
Hard cost,31280000.00,92.00,0.6729
Hard cost contingency (5%),1564000.00,4.60,0.0336
Soft cost (16%),5255040.00,15.46,0.1130
Construction period interest,1589089.27,4.67,0.0342
Total development cost,46488129.27,136.73,1.0000

SOURCES OF FUNDS,Amount,% of total
Construction loan,30217284.03,0.6500
Sponsor equity,16270845.24,0.3500

OPERATING BASIS,Value
Net rentable area (sf),326400
Rent $/sf/yr,9.85
Vacancy,0.04
Opex $/sf/yr,2.15
Lease structure,"Triple net — $701,760/yr recovered"

STABILIZED OPERATIONS,Amount
Effective gross revenue,3086438.40
Operating expense,0.00
Net operating income,3086438.40

RETURNS,Value
Yield on cost,0.066392
Exit capitalisation rate,0.057500
Spread over exit cap (bps),89
Stabilised value,53677189.57
Development profit,7189060.30
Unlevered IRR,0.111254
Levered IRR,0.150575
Equity multiple,2.469

CASH FLOW,Year 0,Year 1,Year 2,Year 3,Year 4,Year 5,Year 6,Year 7
Unlevered,-46488129.27,3171315.46,3258526.63,3348136.11,3440209.86,3534815.63,3632023.06,67561155.86
Levered,-16270845.24,663280.89,750492.06,840101.54,932175.29,1026781.06,1123988.49,34835837.26