Financial- Argus Financial Assumptions Model

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lltl~/9 i FRI 1 i: 30 F:i.l ~03 223 4606 MEL~ IN M.~RF~ COMP.~NIES ASSUMPTIONS 11/14/97 A~tGUS Financial Model (212 PM) Five Story- 258 subsurface stalis-Private Tenant in Speculative Space -WITI~ INCREASED CONTINGENCY Assumes Marion County occupies 82,959 sf. Aa additiona12,633 sf is assessed for Y= interest in the first floor conferenee room. Assutncs a 0% vacancy rate. -Assumes Salem Area Traasit's share ofthe project is $ 9;844,000. ~... ,f>::;> •r•,^,icz' -:ex< ~i::~sF; r~~ ..i.. ..J~i- :,~,: -as~~ .,,.~ ~:y-. - ~ ..~*35<° •:~~:~.'• .;:1;:~sG':;<.:~~`'' ~ ~~3~~~` ; `£~~:~.~~~,,, :.; w~;~~~,...,.~:~,,..........~.~.~,,~~~.,~..,<~n....,.,.......,..~.~,,,.... ,~`..,...~r~. ,~~~:. -Expenses are assumed to be $.254 / mo. per rentable sf ($ 3.41 annually). The County reimburses expenses escalated over base year cxpenses_ -The model assumes 238 stalls subsurface and ~9 above grsde parlQng srall,a. -The modcl assumes County controls 277 stalls and generates ~ 40/ mo. per s1a11 on all spaccs and escalates at 4% annually. -Assumes a 63~% blcnded interest rate on a standard 25-year amortizaxi.on schedule. -Tlie exempt portion of the blended interest rate is 5.79%. -Assumes the County gays expense escalation over. base year. Assumes Mari.on County leases out 28,96~ sf of speculative space. Assnmes the space is leased tu a non-exempt tenant. The model assutnes a 0% vacanty rate at building completion. Assumes a$1.6d per sf rem on the speculative space. Tenart pays escal.ations o~ er basc year ~penses. -Leasing commissiou is calcul.ated at 6°/a forthe first fi~e years 3% forthe second five years. -The non-esempt portion of the blended interest rate is 8%. Assumes Salem Area Tiansit controls 24,193 sf of o,ff.~.ce. r1u addrtional 2,633 sf is asscssed for'/: interest in the first floor conference room. -Assumes Transit pays ~ 9,344,OOQ cash for their iuterest and pays no rent. -Expenses aze assum.cd to be $.284 / mo. Pe,-r rernable sf ($ 3.41 anaually} in year two. Transit reimburses thcir prorata share of these expenses. 8 ~ -The model assumes that Lransit controls 40 subsuiface parking sta]ls.