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PAGE 16
GENERAL PARAMETERS - ASSUMPTIONS
START DATE:
October 1, 2016
INFLATION:
3.0%
YEARS OF ANALYSIS:
10
MARKET RENT GROWTH:
3.0%
GENERAL VACANCY LOSS:
5.0%
CAPITAL RESERVE:
$0.20
FINANCIAL OVERVIEW
New Renewal
Weighted
RENEWAL PROBABILITY:
25%
75%
N/A
DOWNTIME:
6 months 0 months
1.50 months
New
Renewal
Weighted
BASE RENT (PER SF)
$10.00
$10.00
$10.00
RATE CHANGES (ANNUAL)
3.0%
3.0%
3.0%
TERM (MOS)
63.00
60.00
60.75
FREE RENT (MOS)
3.00
0.00
0.75
TENANT IMPROVEMENTS
$5.00
$0.00
$1.25
LEASING COMMISSIONS
6.00%
4.00%
4.50%
REIMBURSEMENTS
Net
MARKET RATES - 1ST FLOOR SUITES
7/6/2016
Start Date:
Date
Square
Rate
Steps Term Free
T.I.
L.C.
Inflation:
Building
Suite
Leased
Feet
(psf)
(psf)
(Mos)
Rent (Mos.)
(psf)
(%)
Years of Analysis:
Cottleville
102-103
12/01/16
2,459
$10.00
3.0% 63
3.0
$5.00
6.00%
Market Rent Growth:
Cottleville
108
11/01/16
1,234
$10.00
3.0% 63
3.0
$5.00
6.00%
General Vacancy Loss:
Cottleville
116
02/01/17
1,220
$10.00
3.0% 63
3.0
$5.00
6.00%
Capital Reserve:
Cottleville
212
04/01/17
1,616
$6.00
3.0% 63
3.0
$5.00
6.00%
New
Renewal
Weighted
Renewal Probability:
25%
75%
N/A
Downtime:
6 months
0 months
1.50 months
Year
2016
3,693
Debt:
Option 1
Option 2
Option 3
2017
2,836
Loan to Value:
65.0%
Totals
6,529
Interest Rate:
4.00%
Amortization:
30 Years
Loan Fee:
1.00%
Exit Cap Rate:
9.00%
New
Renewal
Weighted
Base MLA
Base Rent (per S.F.)
$10.00
$10.00
$10.00
Rate Changes (Annual)
3.0%
3.0%
$0.03
Term (Mos)
63.00
60.00
60.75
Free Rent (Mos)
3.00
0.00
0.75
Tenant Improvements
$5.00
$0.00
$1.25
Leasing Commissions
6.00%
4.00%
4.5
Reimbursements
New
Renewal
Weighted
New
Renewal
Weighted
Base MLA
Base MLA
Base Rent (per S F.)
$6.00
$6.00
6.00
Base Rent (per S.F.)
$13.00
$13.00
$13.00
Rate Changes (Annual)
3.0%
3.0%
$0.03
Rate Changes (Annual)
3.0%
3.0%
$0.03
Term (Mos)
63.00
60.00
60.75
Term (Mos)
63.00
60.00
60.75
Free Rent (Mos)
3.00
0.00
0.75
Free Rent (Mos)
3.00
0.00
0.75
Tenant Improvements
$5.00
$0.00
$1.25
Tenant Improvements
$5.00
$0.00
$1.25
Leasing Commissions
6.00%
4.00%
4.50%
Leasing Commissions
6.00%
4.00%
4.50%
Reimbursements
Reimbursements
Notes to Assumptions
- Analysis assumes Health Care Solution Team has already expanded its space and extended its lease.
- CKE Properties lease start and expiration dates are approximate based on its expected move in date.
- The JB Hamilton space is separately owned. It therefore only pays NNN charges to Cottleville's ownership.
Cottleville
O'Fallon, MO
58,204 SF
General Parameters
Market Rates - Lower Level Suites
Market Rates - Outlots
Net
Available Space Lease-up
Available Office Space Lease-up Assumptions
October 1, 2016
Market Rates - 1st Floor Suites
Net
$0.20
5.0%
3.0%
10
3.0%
Net
3,693
2,836
6,529
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2016
2017
Totals
DO NOT INCLUDE IN OM
7/6/2016
Start Date:
Date
Square
Rate
Steps Term Free
T.I.
L.C.
Inflation:
Building
Suite
Leased
Feet
(psf)
(psf)
(Mos)
Rent (Mos.)
(psf)
(%)
Years of Analysis:
Cottleville
102-103
12/01/16
2,459
$10.00
3.0% 63
3.0
$5.00
6.00%
Market Rent Growth:
Cottleville
108
11/01/16
1,234
$10.00
3.0% 63
3.0
$5.00
6.00%
General Vacancy Loss:
Cottleville
116
02/01/17
1,220
$10.00
3.0% 63
3.0
$5.00
6.00%
Capital Reserve:
Cottleville
212
04/01/17
1,616
$6.00
3.0% 63
3.0
$5.00
6.00%
New
Renewal
Weight d
Renewal Probability:
25%
75%
N/A
Downtime:
6 months
0 months
1.50 months
Year
2016
3,693
Debt:
Option 1
Option 2
Option 3
2017
2,836
Loan to Value:
65.0%
Totals
6,529
Interest Rate:
4.00%
Amortization:
30 Years
Loan Fee:
1.00%
Exit Cap Rate:
9.00%
New
Renewal
Weighted
Base MLA
Base Rent (per S.F.)
$10.00
$10.00
$10.00
Rate Changes (Annual)
3.0%
3.0%
$0.03
Term (Mos)
63.00
60.00
60.75
Free Rent (Mos)
3.00
0.00
0.75
Tenant Improvements
$5.00
$0.00
$1.25
Leasing Commis ions
6.00%
4.00%
4.50%
Reimbursements
New
Renewal
Weighted
New
Renewal
Weighted
Base MLA
Base MLA
Base Rent (per S.F.)
$6.00
$6.00
$6.00
Base Rent (per S.F.)
$13.00
$13.00
$13.00
Rate Changes (Annual)
3.0%
3.0%
$0.03
Rate Changes (Annual)
3.0%
3.0%
$0.03
Term (Mos)
63.00
60.00
60.75
Term (Mos)
63.00
60.00
60.75
Free Rent (Mos)
3.00
0.00
0.75
Free Rent (Mos)
3.00
0.00
0.75
Tenant Improvements
$5.00
$0.00
$1.25
Tenant Improvements
$5.00
$0.00
$1.25
Leasing Commissions
6.00%
4.00%
4.50%
Leasing Commissions
6.00%
4.00%
4.50%
Reimbursements
Reimbursements
Notes to Assumptions
- Analysis assumes Health Care Solution Team has already expanded its space and extended its lease.
- CKE Properties lease start and expiration dates are approximate based on its expected move in date.
- The JB Hamilton space is separately owned. It therefore only pays NNN charges to Cottleville's ownership.
Cottleville
O'Fallon, MO
58,204 SF
General Parameters
Market Rates - Lower Level Suites
Market Rates - Outlots
Net
Available Space L ase-up
Available Office Space Lease-up Assumptions
October 1, 2016
Market Rates - 1st Floor Suites
Net
$0.20
5.0%
3.0%
10
3.0%
Net
3,693
2,836
6,529
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2016
2017
Totals
DO NOT INCLUDE IN OM
N w
Ren w l
Weighted
BASE RENT (PER SF)
$6.00
$6.00
$6.00
RATE CHANGES (ANNUAL)
3.0%
3.0%
3.0%
TERM (MOS)
63.00
60.00
60.75
FREE RENT (MOS)
3.00
0.00
0.75
TENANT IMPROVEMENTS
$5.00
$0.00
$1.25
LEASING COMMISSIONS
6.00%
4.00%
4.50%
REIMBURSEMENTS
Net
MARKET RATES - LOWER LEVEL SUITES
New
Renewal
Weighted
BASE RENT (PER SF)
$13.00
$13.00
$13.00
RATE CHANGES (ANNUAL)
3.0%
3.0%
3.0%
TERM (MOS)
63.00
60.00
60.75
FREE RENT (MOS)
3.00
0.00
0.75
TENANT IMPROVEMENTS
$5.00
$0.00
$1.25
LEASING COMMISSIONS
6.00%
4.00%
4.50%
REIMBURSEMENTS
Net
Notes:
- Analysis assumes Health Care Solution Team has already expanded its space and extended its
lease.
- CKE Properties lease start and expiration dates are approximate based on its expected move in
date.
- The JB Hamilton space is separately owned. It therefore only pays NNN charges to Cottleville’s
ownership.
MARKET RATES - OUTLOTS