EX-99.59 25 d283359dex9959.htm CALCULATION OF CHANGES IN VALUE USING THE DISCOUNTED CASH FLOW METHOD Calculation of Changes in Value Using the Discounted Cash Flow Method

Exhibit 99.59

Calculation of Illustrative Exchange Values Using the Discounted Cash Flow Method to

Allocate Residual Value

The following is a calculation of illustrative exchange values using the discounted cash flow method to allocate residual value based on the projections that were used to calculate the preliminary exchange values shown in this prospectus/consent solicitation (except that the projections used for purposes of this calculation are for a longer time period).

The valuations based on the discounted cash flow method, as set forth below, were calculated by the independent valuer based on information provided by the management of the supervisor. The supervisor requested the independent valuer in June 2012 to calculate the exchange values using the discounted cash flow methodology on this basis solely for illustrative purposes to show participants the effect of the different methods.

The tables that follow also include a summary of projections that were utilized by the independent valuer in calculating the exchange values using the discounted cash flow method described above. The projections were prepared solely for the purpose of determining the relative values among the subject LLCs, the private entities and the management companies and to establish exchange values to facilitate the consolidation and should not be relied upon for any other purpose, including without limitation, as an indicator of future performance of the company, the properties, the subject LLCs or the private entities. The projections should not be relied upon in determining the market value or the estimated value of the company after giving effect to the consolidation and the IPO. The actual performance of the properties may be materially different from these projections because of changes in market conditions and many other factors.

Neither the subject LLCs nor the supervisor as a matter of course make public projections as to future performance, earnings or other results beyond the current fiscal year, and the supervisor is especially reluctant to disclose projections for extended periods due to the unpredictability of the underlying assumptions and estimates. The projections with respect to the properties were presented by the independent valuer based on the information provided by management of the supervisor and analysis performed by the independent valuer and reviewed and approved by management of the supervisor.

These projections were not prepared in accordance with published guidelines of the SEC or the guidelines established by the American Institute of Certified Public Accountants for preparation and presentation of financial projections. This information is not fact and should not be relied upon as being necessarily indicative of future results, and readers of this prospectus/consent solicitation are cautioned not to place undue reliance on the prospective financial information. Neither the company’s independent registered public accounting firm nor any other independent accountants have examined, compiled or otherwise applied procedures to the projections presented herein or express an opinion or any other form of assurance on them. The summary of the projection is being included in this prospectus/consent solicitation solely because the projections were used by the independent valuer in calculating the illustrative exchange values using the discounted cash flow method to allocate residual value.

The projections were based on numerous assumptions that may prove to be wrong. Important factors that may affect actual results and cause the projections to not be achieved include, but are not limited to, risks and uncertainties relating to the company and other factors described under “Risk Factors” and “Forward-Looking Statements.” The projections also reflect assumptions as to certain business decisions that are subject to change. As a result, actual results may differ materially from those contained in the projections. Accordingly, there can be no assurance that the projections will be realized.

Certain of the prospective financial information set forth herein may be considered non-U.S. GAAP financial measures. The independent valuer believed this information could be useful in valuing the properties. Non-U.S. GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with U.S. GAAP, and non-U.S. GAAP financial measures may not be comparable to similarly titled amounts used by other companies.

The inclusion of the summary of the projections in this prospectus/consent solicitation should not be regarded as an indication that any of the company, the subject LLCs or the supervisor or their respective affiliates, advisors or representatives considered the projections to be predictive of actual future events, and the projections should not be relied upon as such. None of the company, the subject LLCs or the supervisor or their respective affiliates, advisors, officers, directors, partners or representatives can give you any assurance that actual results will not differ from the projections, and none of them undertakes any obligation to update or otherwise revise or reconcile the projections to reflect circumstances existing after the date the projections were generated or to reflect the occurrence of future events even in the event that any or all of the assumptions underlying the projections are shown to be in error. None of the company, the supervisor and the subject LLCs intend to make publicly available any update or other revision to the projections. None of the company, the supervisor and the subject LLCs or their respective affiliates, advisors, officers, directors, partners or representatives has made or makes any representation to any participant or other person regarding the company’s or the subject LLCs ultimate performance compared to the information contained in the projections or that forecasted results will be achieved. None of the subject LLCs, the private entities, the management companies or any of their affiliates has made any representation to the company concerning the projections.


    Appraised
Property
Value
    Debt
Obligations
    Cash for
Improvements
    Present
Value of
Supervisory
Fees
    Unpaid
Cash
Overrides
    Total
Exchange
Value
    Per
$ 1000
Original
Investment, etc
        Check     Check  

Empire State Building

                   

Empire State Building Associates L.L.C.

                   

JV

    1,306,500,000        (124,750,000     7,000,000        (5,137,451     —          1,183,612,549        32,380      after VC     1,183,612,549        —     

DCF

    1,458,000,000        (189,000,000     7,000,000        (5,137,451     —          1,270,862,549        34,760      after VC     1,270,862,549        —     

Empire State Building Company L.L.C.

                   

JV

    1,223,500,000        (64,250,000     7,000,000        (4,113,518     —          1,162,136,482            1,162,136,482        —     

DCF

    1,072,000,000        —          7,000,000        (4,113,518     —          1,074,886,482            1,074,886,482        —     

One Grand Central Place

                   

60 East 42nd Street Associates L.L.C.

                   

JV

    359,500,000        (45,155,119     —          (1,275,348     —          313,069,533        40,266          313,069,533        —     

DCF

    392,000,000        (90,310,237     —          (1,275,348     —          300,414,415        38,639          300,414,415        —     

Lincoln Building Associates L.L.C.

                   

JV

    344,500,000        (45,155,119     —          (2,739,564     (618,000     295,987,317            295,987,317        —     

DCF

    312,000,000        —          —          (2,739,564     (618,000     308,642,436            308,642,436        —     

250 West 57th St.

                   

250 West 57th St. Associates L.L.C.

                   

JV

    186,000,000        (22,212,606     —          (722,787       163,064,607        40,966      after VC     163,064,607        —     

DCF

    197,000,000        (44,425,212     —          (722,787       151,852,001        38,163      after VC     151,852,001        —     

Fisk Building Associates L.L.C.

                   

JV

    175,000,000        (22,212,606     —          (729,597     (909,000     151,148,797            151,148,797        —     

DCF

    164,000,000        —          —          (729,597     (909,000     162,361,403            162,361,403        —     

CHECK:

                   

Empire State Building

                   

JV

    2,530,000,000        (189,000,000     14,000,000        (9,250,970     —          2,345,749,030           

DCF

    2,530,000,000        (189,000,000     14,000,000        (9,250,970     —          2,345,749,030           

One Grand Central Place

                   

JV

    704,000,000        (90,310,237     —          (4,014,913     (618,000     609,056,850           

DCF

    704,000,000        (90,310,237     —          (4,014,913     (618,000     609,056,850           

250 West 57th St.

                   

JV

    361,000,000        (44,425,212     —          (1,452,383     (909,000     314,213,405           

DCF

    361,000,000        (44,425,212     —          (1,452,383     (909,000     314,213,405           


DCF   Appraised value of
property interest
    Debt Obligation     Cash for
improvements
    PV of
Supervisory
Fees
    Unpaid Cash
Overrides
    Net Value  

Empire State Land Associates L.L.C. (Fee Owner)

    1,458,000,000        (189,000,000     7,000,000        (5,137,451     —          1,270,862,549   

Empire State Building Company L.L.C. (Operating Lessee)

    1,072,000,000          7,000,000        (4,113,518       1,074,886,482   

60 East 42nd St. Associates L.L.C. (Fee Owner)

    392,000,000        (90,310,237       (1,275,348       300,414,415   

Lincoln Building Associates L.L.C. (Operating Lessee)

    312,000,000            (2,739,564     (618,000     308,642,436   

250 West 57th St. Associates L.L.C. (Fee Owner)

    197,000,000        (44,425,212       (722,787       151,852,001   

Fisk Building Associates L.L.C. (Operating Lessee)

    164,000,000            (729,597     (909,000     162,361,403   
JV                                 Net Value  

Empire State Land Associates L.L.C. (Fee Owner)

              1,183,612,549   

Empire State Building Company L.L.C. (Operating Lessee)

              1,162,136,482   

60 East 42nd St. Associates L.L.C. (Fee Owner)

              313,069,533   

Lincoln Building Associates L.L.C. (Operating Lessee)

              295,987,317   

250 West 57th St. Associates L.L.C. (Fee Owner)

              163,064,607   

Fisk Building Associates L.L.C. (Operating Lessee)

              151,148,797   


DCF    % of Net
Value
    Per $1000      % change
per $1000
    % change
NV
    check  

Empire State Land Associates L.L.C. (Fee Owner)

     54.18     35,764         8.10     7.37     1,270,862,549   

Empire State Building Company L.L.C. (Operating Lessee)

     45.82          -7.51     1,074,886,482   

60 East 42nd St. Associates L.L.C. (Fee Owner)

     49.32     36,683         -5.87     -4.04     300,414,415   

Lincoln Building Associates L.L.C. (Operating Lessee)

     50.68          4.28     308,642,436   

250 West 57th St. Associates L.L.C. (Fee Owner)

     48.33     33,418         -6.45     -6.88     151,852,001   

Fisk Building Associates L.L.C. (Operating Lessee)

     51.67          7.42     162,361,403   
JV    % of Net
Value
    Per $1000                     

Empire State Land Associates L.L.C. (Fee Owner)

     50.46     33,085          

Empire State Building Company L.L.C. (Operating Lessee)

     49.54         

60 East 42nd St. Associates L.L.C. (Fee Owner)

     51.40     38,972          

Lincoln Building Associates L.L.C. (Operating Lessee)

     48.60         

250 West 57th St. Associates L.L.C. (Fee Owner)

     51.90     35,722          

Fisk Building Associates L.L.C. (Operating Lessee)

     48.10         


Summary Comparison of Results

Utilizing Different Valuation Methods

 

One Grand Central Place

     60 East 42nd St.
Associates L.L.C.
(Fee Owner)
    Lincoln Building
Associates L.L.C.
(Operating Lessee)
    Total  

JV Method

      

Property Value

         704,000,000   

Less: Shared Debt Obligations

         (90,310,237

Less: PV of Base Rent

         (15,000,000

Plus: Cash for Improvements

         —     
  

 

 

   

 

 

   

 

 

 

Total Allocable Value

     299,344,882        299,344,882        598,689,763   

Less: After-Tax PV of Supervisory Fees

     (1,275,348     (2,739,564     (4,014,913

Less: Unpaid Cash Override

     —          (618,000     (618,000

Less: Unshared Debt Obligations

     —          —          —     

Plus: PV of Base Rent

     15,000,000        —          15,000,000   
  

 

 

   

 

 

   

 

 

 

Amount to Allocate for Capital Transaction

     313,069,533        295,987,317        609,056,850   

Long-term DCF Method Estimate

      

Asset Value

     392,000,000        312,000,000        704,000,000   

Less: Debt

     (90,310,237       (90,310,237
  

 

 

   

 

 

   

 

 

 

Total Allocable Value

     301,689,763        312,000,000        613,689,763   

Less: After-Tax PV of Supervisory Fees

     (1,275,348     (2,739,564     (4,014,913

Less: Unpaid Cash Override

     —          (618,000     (618,000
  

 

 

   

 

 

   

 

 

 

Amount to Allocate for Capital Transaction

     300,414,415        308,642,436        609,056,850   

Variance

     (12,655,119     12,655,119        —     


Summary Comparison of Results

Utilizing Different Valuation Methods

 

 

250 W57th Street

 

     250 West 57th  St.
Associates L.L.C.
(Fee Owner)
    Fisk Building
Associates L.L.C.
(Operating Lessee)
    Total  

JV Method

      

Property Value

         361,000,000   

Less: Shared Debt Obligations

         (44,425,212

Less: PV of Base Rent

         (11,000,000

Plus: Cash for Improvements

         —     
  

 

 

   

 

 

   

 

 

 

Total Allocable Value

     152,787,394        152,787,394        305,574,788   

Less: After-Tax PV of Supervisory Fees

     (722,787     (729,597     (1,452,383

Less: Unpaid Cash Override

     —          (909,000     (909,000

Less: Unshared Debt Obligations

     —          —          —     

Plus: PV of Base Rent

     11,000,000        —          11,000,000   
  

 

 

   

 

 

   

 

 

 

Amount to Allocate for Capital Transaction

     163,064,607        151,148,797        314,213,405   

Long-term DCF Method Estimate

      

Asset Value

     197,000,000        164,000,000        361,000,000   

Less: Debt

     (44,425,212       (44,425,212
  

 

 

   

 

 

   

 

 

 

Total Allocable Value

     152,574,788        164,000,000        316,574,788   

Less: After-Tax PV of Supervisory Fees

     (722,787     (729,597     (1,452,383

Less: Unpaid Cash Override

     —          (909,000     (909,000
  

 

 

   

 

 

   

 

 

 

Amount to Allocate for Capital Transaction

     151,852,001        162,361,403        314,213,405   

Variance

     (11,212,606     11,212,606        —     


Summary Comparison of Results

Utilizing Different Valuation Methods

 

 

Empire State Building

 

     Empire State Land
Associates L.L.C.
(Fee Owner)
    Empire State
Building Company
L.L.C.
(Operating Lessee)
    Total  

JV Method

      

Property Value

         2,530,000,000   

Less: Shared Debt Obligations

         (128,500,000

Less: PV of Base Rent

         (83,000,000

Plus: Cash for Improvements

         14,000,000   
  

 

 

   

 

 

   

 

 

 

Total Allocable Value

     1,166,250,000        1,166,250,000        2,332,500,000   

Less: After-Tax PV of Supervisory Fees

     (5,137,451     (4,113,518     (9,250,970

Less: Unpaid Cash Override

     —          —          —     

Less: Unshared Debt Obligations

     (60,500,000     —          (60,500,000

Plus: PV of Base Rent

     83,000,000        —          83,000,000   
  

 

 

   

 

 

   

 

 

 

Amount to Allocate for Capital Transaction

     1,183,612,549        1,162,136,482        2,345,749,030   

Long-term DCF Method Estimate

      

Asset Value

     1,458,000,000        1,072,000,000        2,530,000,000   

Less: Debt

     (189,000,000       (189,000,000
  

 

 

   

 

 

   

 

 

 

Total Allocable Value

     1,269,000,000        1,072,000,000        2,341,000,000   

Plus: Cash for Improvements

     7,000,000        7,000,000        14,000,000   

Less: After-Tax PV of Supervisory Fees

     (5,137,451     (4,113,518     (9,250,970

Less: Unpaid Cash Override

     —          —          —     
  

 

 

   

 

 

   

 

 

 

Amount to Allocate for Capital Transaction

     1,270,862,549        1,074,886,482        2,345,749,030   

Variance

     87,250,000        (87,250,000     —     


Summary Comparison of Results

Utilizing Different Valuation Methods

 

 

Variances

   Fee Owner     Operating Lessee     Total  

One Grand Central Place

     (12,655,119     12,655,119        —     

250 W57th Street

     (11,212,606     11,212,606        —     

Empire State Building

     87,250,000        (87,250,000     —     
  

 

 

   

 

 

   

 

 

 

Total

     63,382,276        (63,382,276     —     


One Grand Central Place

Long-term DCF Method Estimate

 

For the Years Ending

         1
Year 1
Jun-2013
    2
Year 2
Jun-2014
    3
Year 3
Jun-2015
    4
Year 4
Jun-2016
    5
Year 5
Jun-2017
    6
Year 6
Jun-2018
 
 

Total Potential Gross Revenue

       56,397,290        61,792,045        65,585,022        72,254,423        78,897,641        82,768,110   
 

General Vacancy

       0        0        0        0        (987,084     (1,210,784
 

Collection Loss

       (563,974     (617,920     (655,850     (722,544     (788,976     (827,681
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Effective Gross Revenue

       55,833,316        61,174,125        64,929,172        71,531,879        77,121,581        80,729,645   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Operating Expenses

              
 

Payroll

       2,034,156        2,095,178        2,158,035        2,222,777        2,289,459        2,358,144   
 

Cleaning

       4,612,713        4,751,095        4,893,626        5,040,437        5,191,649        5,347,400   
 

Utilities

       5,673,495        5,843,700        6,019,010        6,199,582        6,385,569        6,577,135   
 

Security

       1,055,749        1,087,424        1,120,044        1,153,647        1,188,255        1,223,905   
 

Repairs & Maintenance

       2,306,357        2,375,547        2,446,815        2,520,218        2,595,826        2,673,698   
 

Management Fee

       558,332        611,742        649,292        715,319        771,216        807,296   
 

Professional Fees/Admin

       1,317,918        1,357,455        1,398,180        1,440,124        1,483,329        1,527,827   
 

Real Estate Taxes

       10,944,562        11,329,263        11,727,487        12,139,708        12,566,418        13,008,128   
 

Bid Tax

       207,967        207,967        207,967        207,967        207,967        207,967   
 

Insurance

       649,316        668,796        688,859        709,524        730,812        752,735   
 

Other

       0        0        0        0        0        0   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Operating Expenses

       29,360,565        30,328,167        31,309,315        32,349,303        33,410,500        34,484,235   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Net Operating Income

       26,472,751        30,845,958        33,619,857        39,182,576        43,711,081        46,245,410   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Leasing & Capital Costs

              
 

Tenant Improvements

       6,569,183        3,261,395        3,804,489        2,479,044        2,134,663        1,477,221   
 

Leasing Commissions

       3,552,640        1,821,923        2,439,469        2,134,377        1,864,322        1,508,788   
 

PB Work

       2,774,998        971,001        0        0        0        0   
 

Base Building

       990,000        875,500        1,039,681        502,656        810,366        869,455   
 

Capital Improvements

       5,796,175        4,612,002        2,861,928        1,906,704        1,862,561        1,132,231   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Leasing & Capital Costs

       19,682,996        11,541,821        10,145,567        7,022,781        6,671,912        4,987,695   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Cash Flow Before Debt Service

     $ 6,789,755      $ 19,304,137      $ 23,474,290      $ 32,159,795      $ 37,039,169      $ 41,257,715   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Fixed Rents

              
 

Basic Rent

       24,000        24,000        24,000        24,000        24,000        24,000   
 

Primary Additional Rent

       1,053,800        1,053,800        1,053,800        1,053,800        1,053,800        1,053,800   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Fixed Rent

       1,077,800        1,077,800        1,077,800        1,077,800        1,077,800        1,077,800   
 

Overage Rent

              
 

Total Income

       55,833,316        61,174,125        64,929,172        71,531,879        77,121,581        80,729,645   
 

Total Operating Expense

       (29,360,565     (30,328,167     (31,309,315     (32,349,303     (33,410,500     (34,484,235
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Net Operating Income

       26,472,751        30,845,958        33,619,857        39,182,576        43,711,081        46,245,410   

Less:

 

Total Capital Expenses

       (19,682,996     (11,541,821     (10,145,567     (7,022,781     (6,671,912     (4,987,695

Less:

 

Total Fixed Rent

       (1,077,800     (1,077,800     (1,077,800     (1,077,800     (1,077,800     (1,077,800
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Income Subject to Ovg Rent

       5,711,955        18,226,337        22,396,490        31,081,995        35,961,369        40,179,915   
 

Exclusion

       —          —          —          —          —          —     
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Remainder for Overage

       5,711,955        18,226,337        22,396,490        31,081,995        35,961,369        40,179,915   
 

Overage Rent %

       50.00     50.00     50.00     50.00     50.00     50.00
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Overage Rent @ 50%

       2,855,978        9,113,169        11,198,245        15,540,998        17,980,685        20,089,958   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

PV to Fee

              
 

Basic rent

       24,000        24,000        24,000        24,000        24,000        24,000   
 

Additional/Primary Rent

       1,053,800        1,053,800        1,053,800        1,053,800        1,053,800        1,053,800   
 

Overage Rent

       2,855,978        9,113,169        11,198,245        15,540,998        17,980,685        20,089,958   
 

Future Fee Simple Value (see below)

              
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Cash Flow to Fee

       3,933,778        10,190,969        12,276,045        16,618,798        19,058,485        21,167,758   
 

Discount Rate

     7.51     3,659,158        8,817,757        9,880,353        12,441,849        13,272,265        13,712,065   
 

PV to Fee

     392,000,000               

PV to Operator

              
 

Cash Flow Before Debt Service

       6,789,755        19,304,137        23,474,290        32,159,795        37,039,169        41,257,715   
 

Fixed Rents

       (1,077,800     (1,077,800     (1,077,800     (1,077,800     (1,077,800     (1,077,800
 

Overage Rent

       (2,855,978     (9,113,169     (11,198,245     (15,540,998     (17,980,685     (20,089,958
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Cash Flow to Operator

       2,855,978        9,113,169        11,198,245        15,540,998        17,980,685        20,089,958   
 

Discount Rate

     8.01     2,644,301        7,812,350        8,888,293        11,420,982        12,234,519        12,656,565   
 

PV to Operator

     312,000,000               
 

Combined Value

     704,000,000               

Future Fee Simple Value

              
 

Cash Flow Before Debt Service

       6,789,755        19,304,137        23,474,290        32,159,795        37,039,169        41,257,715   
 

Reversion

              
 

Net Operating Income

              
 

Average NOI

              
 

Cap Rate

     5.75            
 

Value

              
 

Selling Expense

     2.50            
 

Net Sale Proceeds

              
 

Fee Simple Value Today

              
 

Cash Flow Before Debt Service

       6,789,755        19,304,137        23,474,290        32,159,795        37,039,169        41,257,715   
 

Net Sale Proceeds

       —          —          —          —          —          —     
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total

       6,789,755        19,304,137        23,474,290        32,159,795        37,039,169        41,257,715   
 

Discount Rate

     7.00            
 

Fee Simple Value Today

     704,000,000               
 

Future Fee Simple Value

              
 

Fee Simple Value Today

     704,000,000               
 

Growth Rate

       3.00     3.00     3.00     3.00     3.00     3.00
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Future Fee Simple Value

       725,120,000        746,873,600        769,279,808        792,358,202        816,128,948        840,612,817   

 

Page 1 of 12


One Grand Central Place

Long-term DCF Method Estimate

 

For the Years Ending          7
Year 7
Jun-2019
    8
Year 8
Jun-2020
    9
Year 9
Jun-2021
    10
Year 10
Jun-2022
    11
Year 11
Jun-2023
    12
Year 12
Jun-2024
 
 

Total Potential Gross Revenue

       85,038,275        87,122,602        89,613,692        93,613,669        95,718,565        99,416,289   
 

General Vacancy

       (749,328     (499,322     (255,996     (1,126,404     (286,009     (574,077
 

Collection Loss

       (850,383     (871,226     (896,136     (936,137     (957,185     (994,164
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Effective Gross Revenue

       83,438,564        85,752,054        88,461,560        91,551,128        94,475,371        97,848,048   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Operating Expenses

              
 

Payroll

       2,428,886        2,501,755        2,576,807        2,654,111        2,733,734        2,815,747   
 

Cleaning

       5,507,820        5,673,056        5,843,246        6,018,545        6,199,101        6,385,072   
 

Utilities

       6,774,449        6,977,684        7,187,013        7,402,624        7,624,703        7,853,443   
 

Security

       1,260,621        1,298,438        1,337,393        1,377,515        1,418,839        1,461,405   
 

Repairs & Maintenance

       2,753,912        2,836,528        2,921,625        3,009,272        3,099,551        3,192,537   
 

Management Fee

       834,386        857,520        884,616        915,511        944,755        978,479   
 

Professional Fees/Admin

       1,573,664        1,620,873        1,669,499        1,719,585        1,771,171        1,824,307   
 

Real Estate Taxes

       13,465,364        13,938,672        14,428,615        14,935,780        15,383,856        15,845,370   
 

Bid Tax

       207,967        207,967        207,967        207,967        207,967        207,967   
 

Insurance

       775,317        798,576        822,534        847,211        872,626        898,804   
 

Other

       0        0        0        0        0        0   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Operating Expenses

       35,582,386        36,711,069        37,879,315        39,088,121        40,256,303        41,463,131   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Net Operating Income

       47,856,178        49,040,985        50,582,245        52,463,007        54,219,068        56,384,917   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Leasing & Capital Costs

              
 

Tenant Improvements

       1,893,030        2,168,759        2,400,417        2,855,603        4,158,029        3,095,434   
 

Leasing Commissions

       1,673,923        2,092,501        2,521,548        3,118,052        3,107,509        2,486,525   
 

PB Work

       0        0        0        0        0        0   
 

Base Building

       1,050,767        1,303,666        1,165,427        1,213,440        0        0   
 

Capital Improvements

       507,913        244,028        124,935        0        0        0   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Leasing & Capital Costs

       5,125,633        5,808,954        6,212,327        7,187,095        7,265,538        5,581,959   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Cash Flow Before Debt Service

     $ 42,730,545      $ 43,232,031      $ 44,369,918      $ 45,275,912      $ 46,953,530      $ 50,802,958   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Fixed Rents

              
 

Basic Rent

       24,000        24,000        24,000        24,000        24,000        24,000   
 

Primary Additional Rent

       1,053,800        1,053,800        1,053,800        1,053,800        1,053,800        1,053,800   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Fixed Rent

       1,077,800        1,077,800        1,077,800        1,077,800        1,077,800        1,077,800   
 

Overage Rent

              
 

Total Income

       83,438,564        85,752,054        88,461,560        91,551,128        94,475,371        97,848,048   
 

Total Operating Expense

       (35,582,386     (36,711,069     (37,879,315     (39,088,121     (40,256,303     (41,463,131
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Net Operating Income

       47,856,178        49,040,985        50,582,245        52,463,007        54,219,068        56,384,917   

Less:

 

Total Capital Expenses

       (5,125,633     (5,808,954     (6,212,327     (7,187,095     (7,265,538     (5,581,959

Less:

 

Total Fixed Rent

       (1,077,800     (1,077,800     (1,077,800     (1,077,800     (1,077,800     (1,077,800
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Income Subject to Ovg Rent

       41,652,745        42,154,231        43,292,118        44,198,112        45,875,730        49,725,158   
 

Exclusion

       —          —          —          —          —          —     
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Remainder for Overage

       41,652,745        42,154,231        43,292,118        44,198,112        45,875,730        49,725,158   
 

Overage Rent %

       50.00     50.00     50.00     50.00     50.00     50.00
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Overage Rent @ 50%

       20,826,373        21,077,116        21,646,059        22,099,056        22,937,865        24,862,579   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

PV to Fee

              
 

Basic rent

       24,000        24,000        24,000        24,000        24,000        24,000   
 

Additional/Primary Rent

       1,053,800        1,053,800        1,053,800        1,053,800        1,053,800        1,053,800   
 

Overage Rent

       20,826,373        21,077,116        21,646,059        22,099,056        22,937,865        24,862,579   
 

Future Fee Simple Value (see below)

              
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Cash Flow to Fee

       21,904,173        22,154,916        22,723,859        23,176,856        24,015,665        25,940,379   
 

Discount Rate

     7.51     13,198,550        12,417,689        11,847,429        11,240,041        10,833,763        10,885,098   
 

PV to Fee

     392,000,000               

PV to Operator

              
 

Cash Flow Before Debt Service

       42,730,545        43,232,031        44,369,918        45,275,912        46,953,530        50,802,958   
 

Fixed Rents

       (1,077,800     (1,077,800     (1,077,800     (1,077,800     (1,077,800     (1,077,800
 

Overage Rent

       (20,826,373     (21,077,116     (21,646,059     (22,099,056     (22,937,865     (24,862,579
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Cash Flow to Operator

       20,826,373        21,077,116        21,646,059        22,099,056        22,937,865        24,862,579   
 

Discount Rate

     8.01     12,148,051        11,383,093        10,823,908        10,231,401        9,832,649        9,867,789   
 

PV to Operator

     312,000,000               
 

Combined Value

     704,000,000               

Future Fee Simple Value

              
 

Cash Flow Before Debt Service

       42,730,545        43,232,031        44,369,918        45,275,912       
 

Reversion

              
 

Net Operating Income

               54,219,068        56,384,917   
 

Average NOI

             56,135,838       
 

Cap Rate

     5.75           5.75    
            

 

 

     
 

Value

             976,275,443       
 

Selling Expense

     2.50           (24,406,886    
            

 

 

     
 

Net Sale Proceeds

             951,868,557       
            

 

 

     
 

Fee Simple Value Today

              
 

Cash Flow Before Debt Service

       42,730,545        43,232,031        44,369,918        45,275,912       
 

Net Sale Proceeds

       —          —          —          951,868,557       
      

 

 

   

 

 

   

 

 

   

 

 

     
 

Total

       42,730,545        43,232,031        44,369,918        997,144,469       
 

Discount Rate

     7.00            
 

Fee Simple Value Today

     704,000,000               
 

Future Fee Simple Value

              
 

Fee Simple Value Today

     704,000,000               
 

Growth Rate

       3.00     3.00     3.00     3.00     3.00     3.00
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Future Fee Simple Value

       865,831,201        891,806,137        918,560,321        946,117,131        974,500,645        1,003,735,664   

 

Page 2 of 12


One Grand Central Place

Long-term DCF Method Estimate

 

For the Years Ending

         13
Year 13
Jun-2025
    14
Year 14
Jun-2026
    15
Year 15
Jun-2027
    16
Year 16
Jun-2028
    17
Year 17
Jun-2029
    18
Year 18
Jun-2030
 
 

Total Potential Gross Revenue

       102,086,505        103,914,693        108,654,094        112,176,841        115,889,589        118,411,146   
 

General Vacancy

       (564,146     (292,277     (1,100,593     (1,131,121     (1,145,943     (847,513
 

Collection Loss

       (1,020,864     (1,039,148     (1,086,540     (1,121,770     (1,158,895     (1,184,112
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Effective Gross Revenue

       100,501,495        102,583,268        106,466,961        109,923,950        113,584,751        116,379,521   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Operating Expenses

              
 

Payroll

       2,900,218        2,987,224        3,076,843        3,169,148        3,264,220        3,362,149   
 

Cleaning

       6,576,626        6,773,926        6,977,142        7,186,455        7,402,051        7,624,111   
 

Utilities

       8,089,047        8,331,720        8,581,669        8,839,120        9,104,293        9,377,424   
 

Security

       1,505,246        1,550,405        1,596,917        1,644,825        1,694,168        1,744,992   
 

Repairs & Maintenance

       3,288,313        3,386,964        3,488,570        3,593,230        3,701,025        3,812,056   
 

Management Fee

       1,005,015        1,025,833        1,064,669        1,099,240        1,135,849        1,163,795   
 

Professional Fees/Admin

       1,879,034        1,935,408        1,993,468        2,053,273        2,114,871        2,178,318   
 

Real Estate Taxes

       16,320,731        16,810,353        17,314,663        17,834,103        18,369,128        18,920,200   
 

Bid Tax

       207,967        207,967        207,967        207,967        207,967        207,967   
 

Insurance

       925,769        953,544        982,149        1,011,612        1,041,961        1,073,221   
 

Other

       0        0        0        0        0        0   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Operating Expenses

       42,697,966        43,963,344        45,284,057        46,638,973        48,035,533        49,464,233   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Net Operating Income

       57,803,529        58,619,924        61,182,904        63,284,977        65,549,218        66,915,288   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Leasing & Capital Costs

              
 

Tenant Improvements

       3,442,304        3,828,412        2,961,988        2,247,346        2,085,268        3,465,255   
 

Leasing Commissions

       2,738,454        3,324,233        2,544,360        3,643,130        2,242,507        2,985,877   
 

PB Work

       0        0        0        0        0        0   
 

Base Building

       0        0        0        0        0        0   
 

Capital Improvements

       0        0        0        0        0        0   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Leasing & Capital Costs

       6,180,758        7,152,645        5,506,348        5,890,476        4,327,775        6,451,132   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Cash Flow Before Debt Service

     $ 51,622,771      $ 51,467,279      $ 55,676,556      $ 57,394,501      $ 61,221,443      $ 60,464,156   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Fixed Rents

              
 

Basic Rent

       24,000        24,000        24,000        24,000        24,000        24,000   
 

Primary Additional Rent

       1,053,800        1,053,800        1,053,800        1,053,800        1,053,800        1,053,800   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Fixed Rent

       1,077,800        1,077,800        1,077,800        1,077,800        1,077,800        1,077,800   
 

Overage Rent

              
 

Total Income

       100,501,495        102,583,268        106,466,961        109,923,950        113,584,751        116,379,521   
 

Total Operating Expense

       (42,697,966     (43,963,344     (45,284,057     (46,638,973     (48,035,533     (49,464,233
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Net Operating Income

       57,803,529        58,619,924        61,182,904        63,284,977        65,549,218        66,915,288   

Less:

 

Total Capital Expenses

       (6,180,758     (7,152,645     (5,506,348     (5,890,476     (4,327,775     (6,451,132

Less:

 

Total Fixed Rent

       (1,077,800     (1,077,800     (1,077,800     (1,077,800     (1,077,800     (1,077,800
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Income Subject to Ovg Rent

       50,544,971        50,389,479        54,598,756        56,316,701        60,143,643        59,386,356   
 

Exclusion

       —          —          —          —          —          —     
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Remainder for Overage

       50,544,971        50,389,479        54,598,756        56,316,701        60,143,643        59,386,356   
 

Overage Rent %

       50.00     50.00     50.00     50.00     50.00     50.00
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Overage Rent @ 50%

       25,272,486        25,194,740        27,299,378        28,158,351        30,071,822        29,693,178   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

PV to Fee

              
 

Basic rent

       24,000        24,000        24,000        24,000        24,000        24,000   
 

Additional/Primary Rent

       1,053,800        1,053,800        1,053,800        1,053,800        1,053,800        1,053,800   
 

Overage Rent

       25,272,486        25,194,740        27,299,378        28,158,351        30,071,822        29,693,178   
 

Future Fee Simple Value (see below)

              
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Cash Flow to Fee

       26,350,286        26,272,540        28,377,178        29,236,151        31,149,622        30,770,978   
 

Discount Rate

     7.51     10,285,199        9,538,954        9,583,833        9,184,628        9,102,601        8,364,218   
 

PV to Fee

     392,000,000               

PV to Operator

              
 

Cash Flow Before Debt Service

       51,622,771        51,467,279        55,676,556        57,394,501        61,221,443        60,464,156   
 

Fixed Rents

       (1,077,800     (1,077,800     (1,077,800     (1,077,800     (1,077,800     (1,077,800
 

Overage Rent

       (25,272,486     (25,194,740     (27,299,378     (28,158,351     (30,071,822     (29,693,178
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Cash Flow to Operator

       25,272,486        25,194,740        27,299,378        28,158,351        30,071,822        29,693,178   
 

Discount Rate

     8.01     9,287,049        8,572,269        8,599,928        8,213,068        8,121,086        7,424,499   
 

PV to Operator

     312,000,000               
 

Combined Value

     704,000,000               

Future Fee Simple Value

              
 

Cash Flow Before Debt Service

              
 

Reversion

              
 

Net Operating Income

       57,803,529             
 

Average NOI

              
 

Cap Rate

     5.75            
 

Value

              
 

Selling Expense

     2.50            
 

Net Sale Proceeds

              
 

Fee Simple Value Today

              
 

Cash Flow Before Debt Service

              
 

Net Sale Proceeds

              
 

Total

              
 

Discount Rate

     7.00            
 

Fee Simple Value Today

     704,000,000               
 

Future Fee Simple Value

              
 

Fee Simple Value Today

     704,000,000               
 

Growth Rate

       3.00     3.00     3.00     3.00     3.00     3.00
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Future Fee Simple Value

       1,033,847,734        1,064,863,166        1,096,809,061        1,129,713,333        1,163,604,733        1,198,512,875   

 

Page 3 of 12


One Grand Central Place

Long-term DCF Method Estimate

 

For the Years Ending

              19
Year 19
Jun-2031
    20
Year 20
Jun-2032
    21
Year 21
Jun-2033
    22
Year 22
Jun-2034
    23
Year 23
Jun-2035
    24
Year 24
Jun-2036
 
 

Total Potential Gross Revenue

          121,313,818        124,703,109        129,328,803        133,265,161        137,163,746        138,871,487   
 

General Vacancy

          (482,700     (729,434     (913,274     (886,616     (938,882     0   
 

Collection Loss

          (1,213,139     (1,247,030     (1,293,289     (1,332,651     (1,371,638     (1,388,715
         

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Effective Gross Revenue

          119,617,979        122,726,645        127,122,240        131,045,894        134,853,226        137,482,772   
         

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Operating Expenses

                 
 

Payroll

          3,463,012        3,566,904        3,673,910        3,784,128        3,897,650        4,014,581   
 

Cleaning

          7,852,835        8,088,420        8,331,072        8,581,006        8,838,434        9,103,589   
 

Utilities

          9,658,744        9,948,508        10,246,964        10,554,372        10,871,004        11,197,132   
 

Security

          1,797,345        1,851,264        1,906,801        1,964,006        2,022,927        2,083,614   
 

Repairs & Maintenance

          3,926,419        4,044,211        4,165,536        4,290,504        4,419,218        4,551,795   
 

Management Fee

          1,196,179        1,227,267        1,271,222        1,310,459        1,348,532        1,374,829   
 

Professional Fees/Admin

          2,243,667        2,310,977        2,380,308        2,451,715        2,525,267        2,601,024   
 

Real Estate Taxes

          19,487,808        20,072,440        20,674,613        21,294,853        21,933,697        22,591,709   
 

Bid Tax

          207,967        207,967        207,967        207,967        207,967        207,967   
 

Insurance

          1,105,417        1,138,580        1,172,736        1,207,920        1,244,157        1,281,480   
 

Other

          0        0        0        0        0        0   
         

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Operating Expenses

          50,939,393        52,456,538        54,031,129        55,646,930        57,308,853        59,007,720   
         

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Net Operating Income

          68,678,586        70,270,107        73,091,111        75,398,964        77,544,373        78,475,052   
         

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Leasing & Capital Costs

                 
 

Tenant Improvements

          3,225,328        4,373,071        5,217,191        3,711,818        4,258,354        6,070,230   
 

Leasing Commissions

          3,641,092        4,585,435        3,557,858        3,144,497        3,440,353        5,158,959   
 

PB Work

          0        0        0        0        0        0   
 

Base Building

          0        0        0        0        0        0   
 

Capital Improvements

          0        0        0        0        0        0   
         

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Leasing & Capital Costs

          6,866,420        8,958,506        8,775,049        6,856,315        7,698,707        11,229,189   
         

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Cash Flow Before Debt Service

        $ 61,812,166      $ 61,311,601      $ 64,316,062      $ 68,542,649      $ 69,845,666      $ 67,245,863   
         

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Fixed Rents

                 
 

Basic Rent

          24,000        24,000        24,000        24,000        24,000        24,000   
 

Primary Additional Rent

          1,053,800        1,053,800        1,053,800        1,053,800        1,053,800        1,053,800   
         

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Fixed Rent

          1,077,800        1,077,800        1,077,800        1,077,800        1,077,800        1,077,800   
 

Overage Rent

                 
 

Total Income

          119,617,979        122,726,645        127,122,240        131,045,894        134,853,226        137,482,772   
 

Total Operating Expense

          (50,939,393     (52,456,538     (54,031,129     (55,646,930     (57,308,853     (59,007,720
         

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Net Operating Income

          68,678,586        70,270,107        73,091,111        75,398,964        77,544,373        78,475,052   

Less:

 

Total Capital Expenses

          (6,866,420     (8,958,506     (8,775,049     (6,856,315     (7,698,707     (11,229,189

Less:

 

Total Fixed Rent

          (1,077,800     (1,077,800     (1,077,800     (1,077,800     (1,077,800     (1,077,800
         

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Income Subject to Ovg Rent

          60,734,366        60,233,801        63,238,262        67,464,849        68,767,866        66,168,063   
 

Exclusion

          —          —          —          —          —          —     
         

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Remainder for Overage

          60,734,366        60,233,801        63,238,262        67,464,849        68,767,866        66,168,063   
 

Overage Rent %

          50.00     50.00     50.00     50.00     50.00     50.00
         

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Overage Rent @ 50%

          30,367,183        30,116,901        31,619,131        33,732,425        34,383,933        33,084,032   
         

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

PV to Fee

                 
 

Basic rent

          24,000        24,000        24,000        24,000        24,000        24,000   
 

Additional/Primary Rent

          1,053,800        1,053,800        1,053,800        1,053,800        1,053,800        1,053,800   
 

Overage Rent

          30,367,183        30,116,901        31,619,131        33,732,425        34,383,933        33,084,032   
 

Future Fee Simple Value (see below)

                 
         

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Cash Flow to Fee

          31,444,983        31,194,701        32,696,931        34,810,225        35,461,733        34,161,832   
 

Discount Rate

     7.51        7,950,725        7,336,815        7,153,277        7,083,962        6,712,753        6,015,244   
 

PV to Fee

     392,000,000                  

PV to Operator

                 
 

Cash Flow Before Debt Service

          61,812,166        61,311,601        64,316,062        68,542,649        69,845,666        67,245,863   
 

Fixed Rents

          (1,077,800     (1,077,800     (1,077,800     (1,077,800     (1,077,800     (1,077,800
 

Overage Rent

          (30,367,183     (30,116,901     (31,619,131     (33,732,425     (34,383,933     (33,084,032
         

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Cash Flow to Operator

          30,367,183        30,116,901        31,619,131        33,732,425        34,383,933        33,084,032   
 

Discount Rate

     8.01        7,030,256        6,455,547        6,275,218        6,198,443        5,849,877        5,211,536   
 

PV to Operator

     312,000,000                  
 

Combined Value

     704,000,000                  

Future Fee Simple Value

                 
 

Cash Flow Before Debt Service

                 
 

Reversion

                 
 

Net Operating Income

                 
 

Average NOI

                 
 

Cap Rate

     5.75               
 

Value

                 
 

Selling Expense

     2.50               
 

Net Sale Proceeds

                 
 

Fee Simple Value Today

                 
 

Cash Flow Before Debt Service

                 
 

Net Sale Proceeds

                 
 

Total

                 
 

Discount Rate

     7.00               
 

Fee Simple Value Today

     704,000,000                  
 

Future Fee Simple Value

                 
 

Fee Simple Value Today

     704,000,000                  
 

Growth Rate

          3.00     3.00     3.00     3.00     3.00     3.00
         

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Future Fee Simple Value

          1,234,468,261        1,271,502,309        1,309,647,378        1,348,936,800        1,389,404,904        1,431,087,051   

 

Page 4 of 12


One Grand Central Place

Long-term DCF Method Estimate

 

For the Years Ending

         25
Year 25
Jun-2037
    26
Year 26
Jun-2038
    27
Year 27
Jun-2039
    28
Year 28
Jun-2040
    29
Year 29
Jun-2041
    30
Year 30
Jun-2042
 
 

Total Potential Gross Revenue

       145,073,505        151,118,499        155,680,811        158,599,152        162,196,021        166,040,551   
 

General Vacancy

       (1,123,248     (1,918,544     (1,696,094     (785,187     (650,350     (386,699
 

Collection Loss

       (1,450,736     (1,511,184     (1,556,809     (1,585,992     (1,621,960     (1,660,405
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Effective Gross Revenue

       142,499,521        147,688,771        152,427,908        156,227,973        159,923,711        163,993,447   
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
 

Operating Expenses

              
 

Payroll

       4,135,020        4,259,067        4,386,841        4,518,446        4,653,999        4,793,619   
 

Cleaning

       9,376,695        9,657,997        9,947,737        10,246,169        10,553,554        10,870,161   
 

Utilities

       11,533,047        11,879,040        12,235,408        12,602,473        12,980,546        13,369,963   
 

Security

       2,146,123        2,210,506        2,276,820        2,345,125        2,415,481        2,487,944   
 

Repairs & Maintenance

       4,688,350        4,828,999        4,973,868        5,123,086        5,276,778        5,435,081   
 

Management Fee

       1,424,995        1,476,887        1,524,279        1,562,279        1,599,238        1,639,933   
 

Professional Fees/Admin

       2,679,057        2,759,427        2,842,212        2,927,476        3,015,301        3,105,761   
 

Real Estate Taxes

       23,269,461        23,967,542        24,686,571        25,427,168