The project consists of a Discounted Cash Flow Analysis done for the Owner of a Toronto Office Centre property in order to do a proper valuation of the property. The property size was 65000sf, with two tenants occupying 14000sf and 31000sf. The rest of 2000sf are vacant and presumed to be leased in small 2500sf over a period of 7 months. The period of the analysis is for 5 years, using a discounted rate of 13%. The purchase price was estimated at $6,600,000 and the resale price was calculated at a conservative increase of approx. 5% per year.
Please see below the reports for the project:

1. Property Summary - Please click here to see the report

2. Cash Flows - Please click here to see the report

3. Reimbursed Expenses - Please click here to see the report

4. Loan Summary and Mortgage - Please click here to see the report

5. Sources and Uses - Please click here to see the report

6. Resale - Please click here to see the report 

7. Detailed PV Unleveraged -Please click here to see the report 

8. Detailed PV Leveraged - Please click here to see the report 

Please click here to see the Development Analysis Report for this project. 

1. An Internal Rate of Return of 10% for a Holding Period of 10 years
2. A $8,000,000 mortgage
3. The Projected Sale Price at the end of the holding period to be calculated based on a constant year after year appreciation of 3%.

1. An Internal Rate of Return of 12% for a Holding Period of 10 years
2. Buy for cash, $0 mortgage
3. The Projected Sale Price at the end of the holding period to be calculated based on an approx 4% constant increase year after year.

1. An Internal Rate of Return of 12% for a Holding Period of 10 years
2. Reluctant at the beginning to take any mortgage or loan, he agreed to a $1,800,000 mortgage.
3. The Projected Sale Price at the end of the holding period to be calculated based on a constant year after year appreciation of 3%.

1. Property bought 7 years ago.
2. Today's Improvements worth $3,910,000
3. Initial Land Value was $1,250,000.
4. Today's Mortgage Balance is $4,023,720, @ 6% rate and 18 remaining to amortize.
5. Expenditures Before today $200,000
6. Expenditures after today $200,000
7. Today's Selling Price $7,150,000
8. Owner's Tax bracket 37%
9. Holding period 10 years.

This was a Buy vs. Lease Analysis done for a client who was considering both, buying or leasing an industrial unit. For the analysis, there were considered tow different, but similar (in terms of size, location, price range, layout, specs) industrial units.
The analysis considered for the buying option, of approx. 5500sf unit with a purchase price of $850,000 with a mortgage of $300,000 @6.5% interest rate amortized over 20 years and a total operating cost for the first year of approx. $59700. For the Discounted Cash Flow Analysis, a 10 years holding period was considered, 13% discount rate an approx. $1,385,000 sale price, approx. $76,000 sale expenses, a 35%tax bracket for the client.
For the lease, a $8/sf basic rent with a $4.50/sf TMI and a $30/parking space per month for 12 parking spaces was considered.
The calculations were done before and after taxes, but the client wanted the after tax calculations to be considered,so based on those numbers, the advise for the client was to lease due to negative NPV.

Please click here to see the consolidated report only with after tax analysis. Detailed reports with before tax analysis, goal seeking analysis can be generated and delivered, as requested.