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CHAPTER IV - DATA ANALYSIS AND INTERPRETATION

PROPERTY #1

Name : Altamont Avenue

Type : Retail

Net Rentable Area : 60,802 SF

Value : $ 10,197,191

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Table 5.1

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CASH FLOWS

For the Years Ending

POTENTIAL GROSS REVEN

Base Rental Revenue

Absorption & Turnover Vacan

Table 5.2 Terminal Value Calculation

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Terminal Value Calculation

Valuation Term 10 Years

Year 11 NOI $1,248,948

Terminal Cap Rate 8.00%

Gross Sale Proceeds $15,611,850

Net Sale Proceeds $15,611,850 Table 5.3 Present Value Summary

Present Value Summary

Total PSF %

$6,019,044 $98.99 59.0%4,178,147 68.72 41.0%

Total Present Value $10,197,000 $167.71 100.0%

PV of Residual @ 10.0%PV of Cash Flow @ 10.0%

Interpretation:

Here we have assumed a 10 year holding period irrespective of the useful life of the asset. At the end of the 10 th year, the

property is assumed to be sold. So, the 11th year NOI is capitalized to get the Net Sale Proceeds. The capitalized value is

then discounted to get the present value. This value is added to the present value of the 10 year cash flows to get the

value of the property.

Table 5.4 NPV Sensitivity Table

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9.50% 9.75% 10.00% 10.25% 10.50%

7.50% $11,009 $10,801 $10,598 $10,400 $10,206

(181.06) (177.65) (174.31) (171.05) (167.86)

7.75% $10,792 $10,590 $10,391 $10,198 $10,009

(177.50) (174.16) (170.90) (167.72) (164.61)

8.00% $10,589 $10,391 $10,197 $10,008 $9,823

(174.16) (170.90) (167.71) (164.60) (161.56)

8.25% $10,398 $10,204 $10,015 $9,830 $9,649

(171.02) (167.83) (164.71) (161.67) (158.69)

8.50% $10,219 $10,029 $9,843 $9,662 $9,485

(168.06) (164.94) (161.89) (158.91) (155.99)

Discount Rate

TerminalCapRate

Interpretation:

The above table shows the resulting Net Present Value of the property in response to the fluctuations in Cap rate and

Discount rate due to changes in market conditions.

Table 5.5 Sensitivity Of DSCR And LTV To Changes In Interest Rates And Cap Rates

Debt Service Coverage Matrix Loan To Value Matrix

Interest Rate Debt Service DSCR Direct Cap. Rate Value LTV

5.75% $566,196 1.20 7.00% $9,746,000 82.1%

6.25% $593,702 1.15 7.50% $9,096,000 88.0%

6.75% $621,820 1.10 8.00% $8,528,000 93.8%

7.25% $650,526 1.05 8.50% $8,026,000 99.7%

7.75% $679,796 1.00 9.00% $7,580,000 105.5%

The above tables show the corresponding changes in Debt Service Coverage Ratio to the changing Interest rates and the

changes in the Loan To Value corresponding changes in Cap Rates. Clients generally require this table for their decision

making.

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Table 5.6 Lease Expiration

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TENANT SUITE

MADISON LINEN 401 480

HEBRON YESHIVA 406 536

MERCHA NT RENA ISSA NCE 503 712

BUREKHOVICH TRAVEL 504 1,575

INNO FUND CORP. 505 1,100SA LOMON ENGINEERING 803 1,125

GLAMOUR (USA), INC. 407 776

SAMUEL SANG HYON 502 2,081

SENECA TRADING, INC. 610 752

PRIMARY RESOURCE 901 2,000

KA M CONSULTING SERV ICE 410 650

WELLINK PRODUCTS 603 1,210

BEST STYLES, INC. 0604A 2,145

URBAN OUTDOOR 701 400

MA RKETING GRA PHICS, INC 707 636

C & M INTERNATIONAL 708 600

J & J CORP. 201 1,215

BEST SILVER, INC. 0205A 4,130

TIME CENTER, INC. STOR3 315

J & J CORP. STOR5 682

KI KI JEWELRY CORP 605 1,000

WENCY LLC 408 1,460

HERITAGE, INC. 810 1,275

HOWARD NOWES 405 640

K. YOUNG A SSESSARIES 508 1,800

AFRICAN ANGELS STOR4 445

STATE TO STATE RISK 802 553

CIRCLEX CORPORATION 601 1,782

BEST STYLES, INC. 0610A 460

EMPORIO PLUS, INC. 0703A 365

SECURE TRADING EST. 801 410

V ERMA NI PERFUMES STOR7BEST STYLES INC. 400 1,800

AA & TC, INC. 706 1,400

HIND FASHION, INC. 800 1,037

EARTH MECHANICAL CORP 806 1,044

UNICOM CRAFTS, INC. 809 1,063

GENESIS INTERNATIONAL STOR2 689

LUCKY SILVER INC. 404 1,000

LUCKY GEM, INC. 300 630

LUCKY GEM, INC. 301 1,295

ABLE JEWELRY CREATION 305 530

LUCKY GEM, INC. 308 5,107

TOP SALE TRADE USA 807 1,700

HAN SOL USA GROUP, INC. 704 600

BARATO TRADING STOR6 1,000

SILVER GALORE, INC. STOR8 881

GURU IMPORTS, INC. 202 625

DECENT TRADING, INC. STOR1 2,000

TOTAL 30,337 23,842 4,506 0 0 0 0 0 0 0

% of Total SF Expiring 49.89% 39.21% 7.41% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Culm ulative Expiration 49.89% 89.1% 96.5% 96.5% 96.5% 96.5% 96.5% 96.5% 96.5% 96.5%

un-2013Jun-201 un-2015un-2009 un-2010 un-2011Jun-2012For the Years Ending Jun-200 Jun-2007 un-200

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Fig 5.1 Lease Expiration Chart

Year % of NRA % of NRA Expiring CumulativeJun-2006 2006 2006 49.9% 49.9%Jun-2007 2007 2007 39.2% 89.1%Jun-2008 2008 2008 7.4% 96.5%Jun-2009 2009 2009 0.0% 96.5%

Jun-2010 2010 2010 0.0% 96.5%Jun-2011 2011 2011 0.0% 96.5%

Jun-2012 2012 2012 0.0% 96.5%Jun-2013 2013 2013 0.0% 96.5%

Jun-2014 2014 2014 0.0% 96.5%Jun-2015 2015 2015 0.0% 96.5%

Interpretation

The above chart depicts the percentage of Net Rentable Area completing the first lease

rollover. Table 6 shows the total square foot of first rollover of each tenant.

The information was obtained from the lease agreements. Whenever there is a lease

rollover, there is a probability of either the tenant renewing the lease or vacating. This risk is

shown above. Here 96.5 % gets rolled over within 3 years, hence the risk is high.

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Table 5.7 Rent Roll

Tenant Suite No. SF % of Total Rent/SF Annual % of Annual

SF Income Income

Credit Tenants

J & J CORP. STOR5 682 1.1% $138.56 $94,501 4.5%

J & J CORP. 0201 1,215 2.0% $13.00 $15,790 0.7%

Credit Tenants Total/Average 1,897 3.1% $58.14 $110,291 5.2%

Non-Credit Tenants

DECENT TRADING, INC. STOR1 1,487 2.4% $196.98 $292,903 13.9%

GENESIS INTERNATIONAL STOR2 1,000 1.6% 156.60 156,600 7.4%

TIME CENTER, INC. STOR3 315 0.5% 197.78 62,300 2.9%

AFRICAN ANGELS STOR4 445 0.7% 321.35 143,002 6.8%

BARATO TRADING STOR6 881 1.4% 194.10 170,998 8.1%

VERMANI PERFUMES STOR7 1,800 3.0% 53.17 95,706 4.5%

SILVER GALORE, INC. STOR8 625 1.0% 115.20 72,000 3.4%

GURU IMPORTS, INC. 0202 2,000 3.3% 24.90 49,800 2.4%

BEST SILVER, INC. 0205A 4,130 6.8% 11.14 45,998 2.2%

LUCKY GEM, INC. 0300 1,295 2.1% 24.68 31,961 1.5%

LUCKY GEM, INC. 0301 530 0.9% 24.68 13,080 0.6%

ABLE JEWELRY CREATION 0305 5,107 8.4% 24.08 122,977 5.8%

LUCKY GEM, INC. 0308 1,700 2.8% 24.68 41,956 2.0%BEST STYLES INC. 0400 1,400 2.3% 24.86 34,804 1.6%

MADISON LINEN 0401 480 0.8% 12.71 6,100 0.3%

GLAMOUR LINE INC. 0402 500 0.8% 25.20 12,600 0.6%

DYNAMIC AIRCONDITIONING 0403 400 0.7% 29.63 11,850 0.6%

LUCKY SILVER INC. 0404 630 1.0% 28.57 17,999 0.9%

HOWARD NOWES 0405 640 1.1% 23.46 15,013 0.7%

HEBRON YESHIVA 0406 536 0.9% 11.63 6,231 0.3%

GLAMOUR (USA), INC. 0407 776 1.3% 12.23 9,490 0.4%

WENCY LLC 0408 1,460 2.4% 18.08 26,397 1.2%

KAM CONSULTING SERVICE 0410 650 1.1% 11.51 7,479 0.4%

SAMUEL SANG HYON 0502 2,081 3.4% 12.58 26,186 1.2%

MERCHANT RENAISSANCE 0503 712 1.2% 12.80 9,114 0.4%

BUREKHOVICH TRAVEL 0504 1,575 2.6% 12.42 19,555 0.9%

INNO FUND CORP. 0505 1,100 1.8% 13.02 14,317 0.7%

K. YOUNG ASSESSARIES 0508 1,800 3.0% 19.86 35,756 1.7%CIRCLEX CORPORATION 0601 1,782 2.9% 25.59 45,595 2.2%

WELLINK PRODUCTS 0603 1,210 2.0% 14.91 18,045 0.9%

BEST STYLES, INC. 0604A 2,145 3.5% 11.67 25,032 1.2%

KI KI JEWELRY CORP 0605 1,000 1.6% 13.65 13,650 0.6%

SENECA TRADING, INC. 0610 752 1.2% 12.65 9,510 0.5%

BEST STYLES, INC. 0610A 460 0.8% 27.18 12,502 0.6%

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P.O.M. PLANNING SERVICE 0700 1,042 1.7% 19.58 20,402 1.0%

URBAN OUTDOOR 0701 400 0.7% 13.08 5,233 0.2%

METRO OFFICE FURNITURE 0702 630 1.0% 20.95 13,199 0.6%

EMPORIO PLUS, INC. 0703A 365 0.6% 29.59 10,800 0.5%

HAN SOL USA GROUP, INC. 0704 1,000 1.6% 28.60 28,600 1.4%

AA & TC, INC. 0706 1,037 1.7% 26.04 27,003 1.3%MARKETING GRAPHICS, INC 0707 636 1.0% 12.92 8,215 0.4%

C & M INTERNATIONAL 0708 600 1.0% 12.92 7,750 0.4%

HIND FASHION, INC. 0800 1,044 1.7% 23.18 24,202 1.1%

SECURE TRADING EST. 0801 410 0.7% 26.95 11,049 0.5%

1220 BROADWAY BUSINESS 0801A 1,032 1.7% 27.91 28,803 1.4%

STATE TO STATE RISK 0802 553 0.9% 25.50 14,102 0.7%

SALOMON ENGINEERING 0803 1,125 1.9% 13.01 14,637 0.7%

EARTH MECHANICAL CORP 0806 1,063 1.7% 29.54 31,399 1.5%

TOP SALE TRADE USA 0807 600 1.0% 23.00 13,800 0.7%

UNICOM CRAFTS, INC. 0809 689 1.1% 26.27 18,098 0.9%

HERITAGE, INC. 0810 1,275 2.1% 22.74 28,996 1.4%

PRIMARY RESOURCE 0901 2,000 3.3% 9.93 19,867 0.9%

Non-Credit Total/Average 58,905 96.9% $34.00 $2,002,661 94.8%

Total/Average 60,802 100.0% $34.75 $2,112,952 100.0%

Interpretation:

The above table shows whether the tenants are credit tenants or not. This information was

searched from websites such as Standard & Poors, Moodys and Fitch to find out the credit

rating of each tenant. Then they are rated as credit and non-credit based on the credit rating

table. A credit tenant generally is an anchor tenant who attracts customers to the property.

His lease lasts long and he is a credit worthy tenant. The area occupied by the tenant and

the income generated by them is also shown in the table.

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