Page 21 - Advancial Federal Credit Union - February 2020

HYPOTHETICAL FINANCIAL ANALYSIS

CURRENT EXISTING PLANNED

SCENARIO 1 SCENARIO 2 SCENARIO 3 SCENARIO 4 SCENARIO 5
2200 ROSS AVE 2401 CEDAR SPRINGS 1900 ROUTH ST 2601 OLIVE ST 3500 MCKINNEY AVE

KEY ASSUMPTIONS
PREMISES SIZE TOTAL OCCUPANCY COST AND NPV COMPARISON (PRE-TAX)
Premises Size RSF 200,000 RSF 200,000 RSF 200,000 RSF 200,000 RSF 200,000 RSF
$140,000,000
TIME FRAME
Lease Start 10/1/2022 10/1/2022 10/1/2022 10/1/2022 10/1/2022
10 years 10 years 10 years 10 years 10 years
Lease Term 0 months 0 months 0 months 0 months 0 months $120,000,000
Lease Expiration 9/30/2032 9/30/2032 9/30/2032 9/30/2032 9/30/2032

RENT SCHEDULE
Initial Annual Rent (PSF) $26.00 NNN $34.00 NNN $40.00 NNN $41.50 NNN $43.00 NNN $100,000,000
Annual Increase 2% 2% 2% 2% 2%
Rent Abatement 10 years gross 10 years gross 10 years gross 10 years gross 10 years gross
$80,000,000
OPERATING EXPENSES
Operating and Real Estate Taxes PRSF $13.40 $17.00 $15.50 $17.50 $18.00
(2022) $60,000,000
Gross Rent (PRSF) $39.40 $51.00 $55.50 $59.00 $61.00

CAPITAL EXPENDITURES $40,000,000
Tenant Improvements Requirement $70.00 $85.00 $85.00 $85.00 $85.00
Tenant Improvements Allowance $70.00 $85.00 $85.00 $85.00 $85.00
Total Out-of-Pocket Costs $0.00 $0.00 $0.00 $0.00 $0.00 $20,000,000 $80,126,047 $52,435,660 $103,705,923 $67,866,729 $112,764,898 $73,795,505 $119,907,401 $78,469,543 $81,127,680
FINANCIAL METRICS $123,969,214
TOTAL OCCUPANCY COST
Total Pre-Tax Occupancy Cost $80,126,047 $103,705,923 $112,764,898 $119,907,401 $123,969,214 $0
SCENARIO
SCENARIO SCENARIO SCENARIO SCENARIO
Differential (%) Baseline 29% 41% 50% 55%
TOTAL PRE-TAX OCCUPANCY COST PRE-TAX NET PRESENT VALUE AT %
PRE-TAX NET PRESENT VALUE AT 8%
NPV Total Revenue $52,435,660 $67,866,729 $73,795,505 $78,469,543 $81,127,680
Differential (%) Baseline 29% 41% 50% 55%

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