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CONSULTATION (continued)
<br />TECHNIQUE TWO - LEASE VS. CONTRACT RENT/OWNERSHIP ANALYSIS
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<br />Income Stream (I.ease Scenario)-
<br />Office I.ease Income: 114,557 SF x 1.47/SF = $168,399
<br />Parking Lease Income: 277 Spaces x 47.22/Space = 13.080
<br />Total Monthly Income $181,479
<br />Present Value Analysis-
<br />Monthly Income Stream: x Pt~eseut Value of One per Period* = Present Value
<br />$181,479 x 137.9544 (7.596) _ ~25,035,827
<br />Cost per Square Foot $218.54/SF
<br />$181,479 z 153.5146 (6.349b) _ $27,859,676
<br />Cost per Square Foot $243.19/SF
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<br />Income Stream (Contract Scenario)-
<br />p~{~ ~n~ ~~~; 114,557 SF x ~1.30/SF = $148,924
<br />Parldng Contract Income: 277 Spaces x~40/Space = ~ S 11.080
<br />Total Monthly lncome ~160,004
<br />Present Value Analysis-
<br />Monthly Income Streaai: x Present Value of One per Period* = Present Value
<br />5160,004 x 137.9544 (7.596) _ $22,073,256
<br />I.ess Reversion: ~20,826,149 x .152539 = (~ .176.8001
<br />Total $18,896,456
<br />Cost per Square Foot $164.95/SF
<br />$160,004 z 153.5146(6.3496) _ ~24,562,950
<br />Less Reversion: ~20,826,149 x .202249 = ~ •212•06g
<br /> Total = $20,350,882
<br /> Cost r Square Foot $177.65/SF
<br />* Beginning of Period Payments for 26 years
<br />c9sos2 14
<br />PALMER, GROTH & PIETKA, INC. .
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