Case 2 - State 0 Main - Part I - Pro Forma - Students' Version - 24

Real Estate Investments I
Case #2: State & Main - Part I

1/25/24
Broker-Provided Portion of Case Questions
State & Main Shopping Center Anywhere, Illinois
Offering Summary 94,022 Square Feet
1/1/24
Property: State & Main Shopping Center
Location: State & Main

Anywhere, Illinois
Building Size: 94,022 s.f.
Tenant Units: 21
Parcel Size: +/- 8.11 acres (353,446 square feet)
Parking Spaces: 505 5.37 :1 Ratio

(406 Spaces on the site and 99 spaces are leased for employee and valet parking)
Age: Originally constructed in 2013
Current Occupancy: 57.34%
Vacant SF: 40,109 s.f.
Calendar 2024 Pro Forma

Income: In-Place+OFS Stabilized
Base Rent $846,357 $1,414,888
Expense Reimbursements 271,826 493,470
Other Income 4,872 4,872
Overage Rent 19,746 19,746
Vacancy/Credit Loss 0 (86,440)
Gross Operating Income 1,142,801 1,846,536
Operating expenses:
Real Estate Taxes (233,126) (233,126)
CAM (197,816) (197,816)
Insurance (8,537) (8,537)
Management Fee 3.00% of EGI (34,284) (55,396)
Non Recoverable (79,830) (75,508)
Total Operating Expenses (553,593) (570,383)
Net Operating Income before Building Reserve 589,208 1,276,153
Building Reserve @ $.10/sf (9,402) (9,402)
Net Operating Income after Building Reserve $579,806 $1,266,751
Notes:
[1] Calendar Year 2024 In-Place NOI is estimated as follows:
* Assumes only leases currently in-place and three out-for-signature leases (A Design Shop - Suite 8;
Charles Schwab-Expansion - Suite 21; Bacino's-Early Renewal - Suite 24) at the center with no
additional lease-up of vacant space and no additional credit loss or vacancy deduction.
* Leases which expire during these twelve months are assumed to renew at current option or existing
terms.
* Additionally, Real Estate Taxes are based on actual 2022 (payable in 2023). Assessed Value of
$10.68 million and have not been adjusted to reflect fair market value.
[2] Calendar Year 2024 Stabilized NOI is estimated as follows:
* Assumes a static, full occupancy proforma with existing in-place leases and all vacancy leased for a
full year at market rates obtained from the current management and leasing team.
* A 5% credit loss deduction is shown on all minimum rent, percentage rent and recoveries.
Educational Illustration Only

Not for Distribution Real Estate Investments I Page 2
Operating Statement - Tenants In-Place & Out for Signature: January 1, 2024 to December 31, 2024 94,022 Square Feet
% of Prorata Lease Base Rent Expense Recoveries Overage Gross

Unit Tenant Size (SF) Center Share End Annual Monthly PSF R/E Tax CAM Total Rent Income
2 Available 11,180 11.89% 11.89% $0 $0 $0.00 $0 $0 $0 $0 $0
3 Available 12,866 13.68% 13.68% $0 $0 $0.00 $0 $0 $0 $0 $0
4 Honey Baked Hams 3,910 4.16% 4.16% 12/31/24 $76,245 $6,354 $19.50 $9,586 $10,007 $19,593 $0 $95,838
5-6 Home Savings of America 3,870 4.12% 4.12% 12/31/25 $75,465 $6,289 $19.50 $9,596 $9,905 $19,500 $0 $94,965
7 Available 1,720 1.83% 1.83% $0 $0 $0.00 $0 $0 $0 $0 $0
8 A Design Shoppe (OFS) 2,440 2.60% 2.60% 12/31/28 $32,940 $2,745 $13.50 $6,050 $6,245 $12,295 $0 $45,235
9 Cobblestone Shoe Repair 1,000 1.06% 1.06% 12/31/27 $18,249 $1,521 $18.25 $2,479 $2,559 $5,039 $0 $23,288
10 Provincial Staffing Services 1,000 1.06% 1.06% 12/31/24 $15,750 $1,313 $15.75 $2,460 $2,460 $4,920 $0 $20,670
11 Moda Boutique 2,440 2.60% 2.60% 12/31/28 $29,280 $2,440 $12.00 $6,050 $6,245 $12,295 $0 $41,575
12 Chesapeake Bagel Bakery 1,720 1.83% 1.83% 12/31/28 $33,970 $2,831 $19.75 $4,265 $4,402 $8,667 $0 $42,637
13 Ogden Cleaners 1,290 1.37% 1.37% 12/31/26 $23,865 $1,989 $18.50 $3,199 $3,302 $6,500 $0 $30,365
14 Rizzi Florist 3,010 3.20% 3.20% 12/31/24 $40,635 $3,386 $13.50 $7,463 $7,704 $15,167 $0 $55,802
16 Mario Tricoci Salon & Day Spa 9,685 10.30% 10.30% 12/31/35 $141,396 $11,783 $14.60 $24,014 $24,787 $48,801 $0 $190,197
18 Available 11,083 11.79% 11.79% $0 $0 $0.00 $0 $0 $0 $0 $0
19 Airline Ticket Center 2,430 2.58% 2.58% 12/31/25 $53,460 $4,455 $22.00 $5,957 $6,219 $12,177 $0 $65,637
20 Available 3,260 3.47% 3.47% $0 $0 $0.00 $0 $0 $0 $0 $0
21 Charles Schwab 3,633 3.86% 3.86% 12/31/29 $49,809 $4,151 $13.71 $8,907 $9,298 $18,205 $0 $68,013
22 Shapes Bar & Billiards 4,107 4.37% 4.37% 12/31/31 $49,284 $4,107 $12.00 $10,183 $10,511 $20,695 $0 $69,979
23 Fannie May Candies 1,000 1.06% 1.06% 12/31/24 $24,000 $2,000 $24.00 $2,452 $2,559 $5,011 $0 $29,011
24 Bacino's 6,378 6.78% 6.78% 12/31/33 $97,009 $8,084 $15.21 $15,636 $16,324 $31,960 $840 $129,809
25 TGI Friday's 6,000 6.38% 6.38% 12/31/25 $85,000 $7,083 $14.17 $20,983 $10,020 $31,003 $18,906 $134,909
Total 94,022 100% $846,357 $70,530 $139,279 $132,548 $271,826 $19,746 $1,137,929
REVENUE EXPENSES & NOI

$/SF $/SF $/SF
Base Rent $846,357 $9.00 $9.00 Operating Expenses:
Real Estate Taxes (233,126) ($2.48)
Recoveries $0.00 CAM (197,816) ($2.10)
Real Estate Taxes 139,279 1.48 $1.48 Insurance (8,537) ($0.09)
Common Area Maintenance 132,548 1.41 $1.41 Management Fee (34,284) ($0.36)
Total Recoveries 271,826 2.89 $2.89 Non Recoverable (79,830) ($0.85)
Other Income 4,872 0.05 Total Operating Expenses (553,593) ($5.89)
Percentage Rent 19,746 0.21 $0.21
Scheduled Operating Income 1,142,801 12.15 $12.15 Net Operating Income Before Reserves 589,208 6.27
Less: Vacancy/Credit Loss 0.00% 0 0.00 $0.00 Building Reserve at $0.10 PSF (9,402) (0.10)
Gross Operating Income $1,142,801 $12.15 $12.15 Net Operating Income After Reserves $579,806 $6.17
Notes:
[1] Calendar Year 2024 In-Place NOI is estimated as follows:
Assumes only leases currently in-place and three out-for-signature leases (A Design Shop - Suite 8; Charles Schwab-Expansion - Suite 21; Bacino's-Early Renewal - Suite 24) at
*
the center with no additional lease-up of vacant space and no additional credit loss or vacancy deduction.
* Leases which expire during these twelve months are assumed to renew at current option or existing terms.
* Additionally, Real Estate Taxes are based on actual 2022 (payable in 2023). Assessed Value of $10.68 million and have not been adjusted to reflect fair market value.
Educational Illustration Only - Not for Distribution Real Estate Investments I Page 3
Operating Statement - Stabilized: January 1, 2024 to December 31, 2024 94,022 Square Feet
% of Prorata Lease Base Rent Expense Recoveries Overage Gross

Unit Tenant Size (SF) Center Share End Annual Monthly PSF R/E Tax CAM Total Rent Income
2 Available 11,180 11.89% 11.89% $145,340 $12,112 $13.00 $27,721 $31,124 $58,845 $0 $204,185
3 Available 12,866 13.68% 13.68% $128,660 $10,722 $10.00 $31,901 $35,818 $67,719 $0 $196,379
4 Honey Baked Hams 3,910 4.16% 4.16% 12/31/24 $76,245 $6,354 $19.50 $9,586 $10,885 $20,471 $0 $96,716
5-6 Home Savings of America 3,870 4.12% 4.12% 12/31/25 $75,465 $6,289 $19.50 $9,596 $10,774 $20,369 $0 $95,834
7 Available 1,720 1.83% 1.83% $34,400 $2,867 $20.00 $4,265 $4,788 $9,053 $0 $43,453
8 A Design Shop (OFS) 2,440 2.60% 2.60% 12/31/28 $32,940 $2,745 $13.50 $6,050 $6,793 $12,843 $0 $45,783
9 Cobblestone Shoe Repair 1,000 1.06% 1.06% 12/31/27 $18,249 $1,521 $18.25 $2,479 $2,784 $5,263 $0 $23,512
10 Provincial Staffing Services 1,000 1.06% 1.06% 12/31/24 $15,750 $1,313 $15.75 $2,460 $2,460 $4,920 $0 $20,670
11 Moda Boutique 2,440 2.60% 2.60% 12/31/28 $29,280 $2,440 $12.00 $6,050 $6,793 $12,843 $0 $42,123
12 Chesapeake Bagel Bakery 1,720 1.83% 1.83% 12/31/28 $33,970 $2,831 $19.75 $4,265 $4,788 $9,053 $0 $43,023
13 Ogden Cleaners 1,290 1.37% 1.37% 12/31/26 $23,865 $1,989 $18.50 $3,199 $3,591 $6,790 $0 $30,655
14 Rizzi Florist 3,010 3.20% 3.20% 12/31/24 $40,635 $3,386 $13.50 $7,463 $8,380 $15,843 $0 $56,478
16 Mario Tricoci Salon & Day Spa 9,685 10.30% 10.30% 12/31/35 $141,396 $11,783 $14.60 $24,014 $26,962 $50,976 $0 $192,372
18 Available 11,083 11.79% 11.79% $188,411 $15,701 $17.00 $27,480 $30,854 $58,334 $0 $246,745
19 Airline Ticket Center 2,430 2.58% 2.58% 12/31/25 $53,460 $4,455 $22.00 $5,957 $6,765 $12,722 $0 $66,182
20 Available 3,260 3.47% 3.47% $71,720 $5,977 $22.00 $8,083 $9,076 $17,159 $0 $88,879
21 Charles Schwab 3,633 3.86% 3.86% 12/31/29 $49,809 $4,151 $13.71 $8,907 $10,114 $19,021 $0 $68,829
22 Shapes Bar & Billiards 4,107 4.37% 4.37% 12/31/31 $49,284 $4,107 $12.00 $10,183 $11,434 $21,617 $0 $70,901
23 Fannie May Candies 1,000 1.06% 1.06% 12/31/24 $24,000 $2,000 $24.00 $2,452 $2,784 $5,235 $0 $29,235
24 Bacino's 6,378 6.78% 6.78% 12/31/33 $97,009 $8,084 $15.21 $15,636 $17,756 $33,392 $840 $131,241
25 TGI Friday's 6,000 6.38% 6.38% 12/31/25 $85,000 $7,083 $14.17 $20,983 $10,020 $31,003 $18,906 $134,909
Total 94,022 100% $1,414,888 $117,907 $238,728 $254,742 $493,470 $19,746 $1,928,104
REVENUE EXPENSES/NOI
$/SF $/SF $/SF
Base Rent $1,414,888 $15.05 $15.05 Operating Expenses:
Real Estate Taxes ($233,126) ($2.48)
Recoveries $0.00 CAM (197,816) ($2.10)
Real Estate Taxes 238,728 2.54 $2.54 Insurance (8,537) ($0.09)
Common Area Maintenance 254,742 2.71 $2.71 Management Fee (55,396) ($0.59)
Total Recoveries 493,470 5.25 $5.25 Non Recoverable (75,508) ($0.80)
Other Income 4,872 0.05 Total Operating Expenses (570,383) ($6.07)
Percentage Rent 19,746 0.21 $0.21
Scheduled Operating Income 1,932,976 20.56 $20.56 Net Operating Income Before Reserves 1,276,153 13.57
Less: Vacancy/Credit Loss 5.00% (86,440) (0.92) ($0.92) Building Reserve at $0.10 PSF (9,402) (0.10)
Gross Operating Income $1,846,536 $19.64 $19.64 Net Operating Income After Reserves $1,266,751 $13.47
Notes:
[1] Calendar Year 2024 Stabilized NOI is estimated as follows:
* Assumes a static, full occupancy proforma with existing in-place leases and all vacancy leased for a full year at market rates obtained from the current management and leasing
team.
* A 5% credit loss deduction is shown on all minimum rent, percentage rent and recoveries.
Cap Rate Matrix 94,022 Square Feet
Calendar 2024 Pro-Forma

In-Place Stabilized
Total PSF Total PSF
Net Operating Income $589,208 $6.27 $1,276,153 $13.57
(Before Reserves)
Estimated Estimated
Cap Rate Value PSF Cap Rate Value PSF
6.50% $9,064,737 $96.41 7.50% $17,015,372 $180.97
6.75% $8,729,006 $92.84 7.75% $16,466,489 $175.13
7.00% $8,417,256 $89.52 8.00% $15,951,912 $169.66
7.25% $8,127,006 $86.44 8.25% $15,468,520 $164.52
7.50% $7,856,106 $83.56 8.50% $15,013,564 $159.68
7.75% $7,602,683 $80.86 8.75% $14,584,605 $155.12
8.00% $7,365,099 $78.33 9.00% $14,179,477 $150.81
8.25% $7,141,914 $75.96 9.25% $13,796,248 $146.73
8.50% $6,931,858 $73.73 9.50% $13,433,189 $142.87

Rent Roll 94,022 Square Feet
% of Lease Dates Rent Base Rent % Break- Lease Extension Options Expense Recoveries
Unit Tenant Size (SF) Center Start End Change Annual Monthly PSF Rate Point Term Rent/Yr Taxes CAM Insur. Mgmt Admin
2 Available 11,180 11.89% $0 $0.00
3 Available 12,866 13.68% $0 $0.00
4 Honey Baked Hams 3,910 4.16% 1/1/14 12/31/24 $76,245 $6,354 $19.50 1 @ 5-Year Y1-2 $20.50 Pro-Rata Pro-Rata Pro-Rata Pro-Rata
Y3-5 $21.50 In-CAM In-CAM
5-6 Home Savings of America 3,870 4.12% 1/1/19 12/31/25 $72,950 $6,079 $18.85 1 @ 3-Year Y1 $20.50 Pro-Rata Pro-Rata Pro-Rata Pro-Rata
1/1/24 $75,465 $6,289 $19.50 Y2 $21.00 In-CAM In-CAM
1/1/25 $77,400 $6,450 $20.00 Y3 $21.50
7 Available 1,720 1.83% $0 $0.00
8 A Design Shoppe (OFS) 2,440 2.60% 1/1/24 12/31/28 $29,280 $2,440 $12.00 Pro-Rata Pro-Rata Pro-Rata Pro-Rata
This lease is currently "Out for Signature" but is included in this 1/1/25 $30,500 $2,542 $12.50 In-CAM In-CAM
analysis in both the In-Place and Stabilized proformas.
1/1/26 $31,720 $2,643 $13.00
1/1/27 $32,940 $2,745 $13.50
1/1/28 $34,160 $2,847 $14.00
9 Cobblestone Shoe Repair 1,000 1.06% 1/1/18 12/31/27 $18,000 $1,500 $18.00 Pro-Rata Pro-Rata Pro-Rata Pro-Rata
1/1/24 $18,249 $1,521 $18.25 In-CAM In-CAM
1/1/25 $18,500 $1,542 $18.50
1/1/26 $18,750 $1,563 $18.75
1/1/27 $19,000 $1,583 $19.00
10 Provincial Staffing Services 1,000 1.06% 1/1/20 12/31/24 $15,750 $1,313 $15.75 Pro-Rata Pro-Rata Pro-Rata Pro-Rata
In-CAM In-CAM
11 Moda Boutique 2,440 2.60% 12/31/23 12/31/28 $29,280 $2,440 $12.00 8.00% $400,000 Pro-rata Pro-rata Pro-rata Pro-rata
1/1/25 $30,500 $2,542 $12.50 $412,000 In-CAM In-CAM
1/1/26 $31,720 $2,643 $13.00 $424,360
1/1/27 $32,940 $2,745 $13.50 $437,090
Unit Tenant Size (SF) Center Start End Change Annual Monthly PSF Rate Point Term Rent/Yr Taxes CAM Insur. Mgmt Admin
1/1/28 $34,160 $2,847 $14.00 $450,203
12 Chesapeake Bagel Bakery 1,720 1.83% 1/1/19 12/31/28 $33,970 $2,831 $19.75 1 @ 5-Year Y1 $21.00 Pro-rata Pro-rata Pro-rata Pro-rata
Tenant is assumed to sign an agreement to increase minimum rent 1/1/25 $35,690 $2,974 $20.75 Y2 $21.50 In-CAM In-CAM
by $1.75 psf for the duration of the term. The minimum rents on the
rent roll have been adjusted to include the $1.75 increase. 1/1/27 $37,410 $3,118 $21.75 Y3 $22.00
Y4 $22.50
Y5 $23.00
13 Ogden Cleaners 1,290 1.37% 1/1/15 12/31/26 $23,865 $1,989 $18.50 Pro-rata Pro-rata Pro-rata Pro-rata
1/1/25 $24,833 $2,069 $19.25 In-CAM In-CAM
1/1/26 $25,800 $2,150 $20.00
14 Rizzi Florist 3,010 3.20% 1/1/20 12/31/24 $37,926 $3,161 $12.60 1 @ 5-Year Y1 $16.00 Pro-rata Pro-rata Pro-rata Pro-rata
1/1/24 $40,635 $3,386 $13.50 Y2 $16.50 In-CAM In-CAM
Y3 $17.00
Y4 $17.50
Y5 $18.00
16 Mario Tricoci Salon & Day Spa 9,685 10.30% 1/1/15 12/31/35 $141,396 $11,783 $14.60 Pro-rata Pro-rata Pro-rata Pro-rata
Tenant recently relocated from space 20 to space 16. In-CAM In-CAM
18 Available 11,083 11.79% $0 $0.00
19 Airline Ticket Center 2,430 2.58% 1/1/21 12/31/25 $53,460 $4,455 $22.00 1 @ 5-Year MKT Pro-rata Pro-rata Pro-rata Pro-rata
In-CAM In-CAM
20 Available 3,260 3.47% $0 $0.00
21 Charles Schwab 3,633 3.86% 1/1/16 12/31/29 $49,809 $4,151 $13.71 1 @ 5-Year MKT Pro-rata Pro-rata Pro-rata Pro-rata
Tenant is assumed to sign an expansion thereby increasing it's total 1/1/25 $78,618 $6,552 $21.64 In-CAM In-CAM
square footage by 1,600 sf to 3,633, with minimum rent changing,
effective as of the Rent Change date.
Unit effective as of the Rent ChangeSize

Tenant date.(SF) Center Start End Change Annual Monthly PSF Rate Point Term Rent/Yr Taxes CAM Insur. Mgmt Admin
22 Shapes Bar & Billiards 4,107 4.37% 1/1/24 12/31/31 $49,284 $4,107 $12.00 1 @ 7-Year Y1 $16.00 Pro-rata Pro-rata Pro-rata Pro-rata
Tent pays rent commencing Lease Start date and will open for 1/1/25 $50,311 $4,193 $12.25 3% Annual In-CAM In-CAM
business one month later.
Tenant has the right to terminate after 36 months, with notice given 1/1/26 $51,338 $4,278 $12.50 Rent Increases
after 30 months and the payment of a six month termination fee.
1/1/27 $52,364 $4,364 $12.75
1/1/28 $53,391 $4,449 $13.00
1/1/29 $54,418 $4,535 $13.25
1/1/30 $55,445 $4,620 $13.50
1/1/31 $56,471 $4,706 $13.75
23 Fannie May Candies 1,000 1.06% 1/1/15 12/31/24 $24,000 $2,000 $24.00 8.00% $300,000 Pro-rata Pro-rata Pro-rata Pro-rata
In-CAM In-CAM
24 Bacino's 6,378 6.78% 1/1/14 12/31/33 $97,009 $8,084 $15.21 6.00% $2,000,000 Pro-rata Pro-rata Pro-rata Pro-rata
1/1/29 $112,954 $9,413 $17.71 $2,200,000 In-CAM In-CAM

Bacino's is projected to sign a 10-year early renewal reducing minimum rent to $15.21 psf
from $24.00 for the first 5 years of the term and increasing to $17.71
for the second 5 years.
25 TGI Friday's 6,000 6.38% 1/1/15 12/31/25 $85,000 $7,083 $14.17 3.00% $2,833,332 4 @ 5-Year TBD See Capped
Estimated 1/1/26 $113,963 $9,497 $18.99 3.00% $3,798,776 See Note Note at
During the renewal terms, the annual base rent shall be an amount equal to the average $1.67 psf
total rent (i.e. base rent plus percentage rent) paid by tenant during the last two lease years
of the original term or renewal term immediately preceding. The estimated rent change
above is calculated by adding the actual percentage rent paid in the prior calendar year
($28,963) to the minimum rent paid in the prior calendar year ($85,000) to arrive at the new
estimated minimum rent of $113,963 and the new breakpoint of $3,798,776. Tenant is
separately assessed for real estate taxes and pays landlord in July and October.
Total 94,022 100%
Income & Expense Analysis 94,022 Square Feet
2022 2023 CY 2024 CY 2024

Budget Plan In-Place Stabilized
Income
Rental Income
Minimum Rent $1,223,089 $1,240,889 $846,357 $1,414,888
Overage Rent 0 19,746 19,746
Total Rental Income 1,223,089 1,240,889 866,102 1,434,633
Expense Recoveries
Common Area Maintenance 157,566 203,772 132,548 254,742
Real Estate Tax 142,507 207,792 139,279 238,728
Total Expense Recoveries 300,073 411,564 271,826 493,470
Other Income
Operating Account Interest 4,800 4,800 4,872 4,872
Other Income 4,800 4,800 4,872 4,872
Total Gross Income 1,527,962 1,657,253 1,142,801 1,932,976

Vacancy Expense/Credit Loss 0 0 0 (86,440)
Total Gross Income 1,527,962 1,657,253 1,142,801 1,846,536
Expenses
Utilities (21,500) (21,894) (21,894) (21,894)
HVAC Repairs (21,000) (12,000) (12,000) (12,000)
Repairs & Maintenance (73,776) (55,742) (55,742) (55,742)
Janitorial & Landscaping (45,447) (44,506) (44,506) (44,506)
Parking & Roads (66,560) (50,244) (50,244) (50,244)
Administrative (12,768) (13,430) (13,430) (13,430)
Management Fee (42,809) (43,430) (34,284) (34,284)
Insurance (7,957) (8,537) (8,537) (8,537)
Real Estate Taxes (226,336) (233,126) (233,126) (233,126)
Non Recoverable Expenses (72,884) (79,830) (79,830) (75,508)
Total Expenses (591,037) (562,739) (553,593) (570,383)
Net Operating Income $936,925 $1,094,514 $589,208 $1,276,153
Cap Rate Matrix

6.75% $13,880,370 $8,729,006 $18,905,969
7.00% $13,384,643 $8,417,256 $18,230,756
7.25% $12,923,103 $8,127,006 $17,602,109
7.50% $12,492,333 $7,856,106 $17,015,372
7.75% $12,089,355 $7,602,683 $16,466,489
8.00% $11,711,563 $7,365,099 $15,951,912
8.25% $11,356,667 $7,141,914 $15,468,520

Expense Detail 94,022 Square Feet
2022 2023 CY 2024 CY 2024

PSF Budget PSF Plan Adjustments Adjusted In Place Stabilized
Utilities
Electric Expense $0.09 8,050 $0.09 8,211 8,211 8,211 8,211
Water & Sewer Expense $0.14 13,450 $0.15 13,683 13,683 13,683 13,683
Total Central Utility/HVAC $0.23 21,500 $0.23 21,894 0 21,894 21,894 21,894
HVAC Repairs $0.22 21,000 $0.13 12,000 12,000 12,000 12,000
Repairs & Maintenance

Bulbs & Ballasts $0.06 6,000 $0.02 2,200 2,200 2,200 2,200
Electrical Repairs $0.01 800 $0.01 1,000 1,000 1,000 1,000
Roof Contract Repairs $0.11 10,500 $0.07 6,750 6,750 6,750 6,750
Building Life Safety $0.04 3,420 $0.04 3,300 3,300 3,300 3,300
Painting Supplies & Materials $0.05 4,500 $0.02 1,500 1,500 1,500 1,500
Other Repairs & Maintenance $0.52 48,556 $0.44 40,992 40,992 40,992 40,992
Total Repairs & Maintenance $0.78 73,776 $0.59 55,742 0 55,742 55,742 55,742
Janitorial & Landscaping

Trash Removal $0.12 11,400 $0.13 11,880 11,880 11,880 11,880
Mowing/Grounds $0.21 19,957 $0.22 20,356 20,356 20,356 20,356
Plant Materials $0.15 14,090 $0.13 12,270 12,270 12,270 12,270
Total Janitorial & Landscaping $0.48 45,447 $0.47 44,506 0 44,506 44,506 44,506
Parking & Roads

Contract Sweeping $0.14 12,960 $0.14 13,344 13,344 13,344 13,344
Maintenance & Repairs $0.04 4,000 $0.02 1,650 1,650 1,650 1,650
Signage $0.15 14,200 $0.00 250 250 250 250
Snow Removal $0.38 35,400 $0.37 35,000 35,000 35,000 35,000
Total Parking & Roads $0.71 66,560 $0.53 50,244 0 50,244 50,244 50,244
Administrative
Payroll Expense $0.11 10,644 $0.12 11,196 11,196 11,196 11,196
Benefits Expense $0.02 2,124 $0.02 2,234 2,234 2,234 2,234
Total Administrative $0.14 12,768 $0.14 13,430 0 13,430 13,430 13,430
Management Fee $0.46 42,809 $0.46 43,430 43,430 34,284 [2] 55,396 [2]
Total Recoverable Expenses $3.02 283,860 $2.57 241,246 0 241,246 232,100 253,212
Insurance $0.08 7,957 $0.09 8,537 8,537 8,537 8,537
Real Estate Taxes [3] $2.41 226,336 $2.48 233,126 233,126 233,126 233,126
Non Recoverable Expenses

Electric Expense [4] $0.04 3,300 $0.04 3,372 3,372 3,372 0
Gas Expense [4] $0.01 920 $0.01 950 950 950 0
Other Repairs & Maintenance $0.02 1,500 $0.01 1,000 1,000 1,000 1,000
Other Parking/Roads [5] $0.62 58,728 $0.72 67,524 67,524 67,524 67,524
Other Leasing Expense $0.02 1,500 $0.00 0 0 0 0
Legal Fees $0.03 2,400 $0.03 2,400 2,400 2,400 2,400
Postage Expense $0.01 804 $0.01 804 804 804 804
Telephone Expense $0.01 612 $0.01 660 660 660 660
Other General Office $0.01 720 $0.01 720 720 720 720
Other Admin Expense $0.03 2,400 $0.03 2,400 2,400 2,400 2,400
Total Non Recoverable Expenses $0.78 72,884 $0.85 79,830 0 79,830 79,830 75,508
Total Expenses $6.29 $591,037 $5.99 $562,739 $0 $562,739 $553,593 $570,383
Notes:
[1] Calendar Year 2024 expenses are based upon the 2024 Plan as provided by the Owner:
[2] Management Fees have been adjusted to reflect a market management fee of 3.0% of effective gross income.
[3] Real Estate Taxes in the Township are reassessed every four years; however, assessed values are reviewed each year and adjustments can be made. The last
quadrennial reassessment took place for the 2020 taxes (payable 2021). The next quadrennial reassessment is scheduled to take place for the 2024 taxes
(payable 2025).
[4] Non-recoverable Electric and Gas expenses are budgeted for the vacant spaces and have been removed from the 2024 stabilized pro forma.
[5] The lease payment for the 99 additional parking spaces increases to $67,524 on 1/1/2024.

Common Area Maintenance Recoveries - In-Place & Out for Signature Tenants 94,022 Square Feet
CAM Expenses Tenants Cap or Tenants Tenants

Pro-Rata HVAC Janitorial & Parking Mgmt Total Pro-Rata Base CAM CAM
Unit Tenant Size (SF) Notes Share Utilities Repairs R&M Landscaping & Roads Admin Fee Insurance CAM Share Year Payable PSF
2 Available 11,180 11.89% 0 0 0 0 0 0 0 0 0 0 0 $0.00
3 Available 12,866 13.68% 0 0 0 0 0 0 0 0 0 0 0 $0.00
4 Honey Baked Hams 3,910 4.16% 21,894 12,000 55,742 44,506 50,244 13,430 34,284 8,537 240,637 10,007 10,007 $2.56
5-6 Home Savings of America 3,870 4.12% 21,894 12,000 55,742 44,506 50,244 13,430 34,284 8,537 240,637 9,905 9,905 $2.56
7 Available 1,720 1.83% 0 0 0 0 0 0 0 0 0 0 0 $0.00
8 A Design Shoppe (OFS) 2,440 2.60% 21,894 12,000 55,742 44,506 50,244 13,430 34,284 8,537 240,637 6,245 6,245 $2.56
9 Cobblestone Shoe Repair 1,000 1.06% 21,894 12,000 55,742 44,506 50,244 13,430 34,284 8,537 240,637 2,559 2,559 $2.56
10 Provincial Staffing Services 1,000 [1] 1.06% 21,894 12,000 55,742 44,506 50,244 13,430 34,284 8,537 240,637 2,559 2,460 2,460 $2.46
11 Moda Boutique 2,440 2.60% 21,894 12,000 55,742 44,506 50,244 13,430 34,284 8,537 240,637 6,245 6,245 $2.56
12 Chesapeake Bagel Bakery 1,720 1.83% 21,894 12,000 55,742 44,506 50,244 13,430 34,284 8,537 240,637 4,402 4,402 $2.56
13 Ogden Cleaners 1,290 1.37% 21,894 12,000 55,742 44,506 50,244 13,430 34,284 8,537 240,637 3,302 3,302 $2.56
14 Rizzi Florist 3,010 3.20% 21,894 12,000 55,742 44,506 50,244 13,430 34,284 8,537 240,637 7,704 7,704 $2.56
16 Mario Tricoci Salon & Day Spa 9,685 10.30% 21,894 12,000 55,742 44,506 50,244 13,430 34,284 8,537 240,637 24,787 24,787 $2.56
18 Available 11,083 11.79% 0 0 0 0 0 0 0 0 0 0 0 $0.00
19 Airline Ticket Center 2,430 2.58% 21,894 12,000 55,742 44,506 50,244 13,430 34,284 8,537 240,637 6,219 6,219 $2.56
20 Available 3,260 3.47% 0 0 0 0 0 0 0 0 0 0 0 $0.00
21 Charles Schwab 3,633 3.86% 21,894 12,000 55,742 44,506 50,244 13,430 34,284 8,537 240,637 9,298 9,298 $2.56
22 Shapes Bar & Billiards 4,107 4.37% 21,894 12,000 55,742 44,506 50,244 13,430 34,284 8,537 240,637 10,511 10,511 $2.56
23 Fannie May Candies 1,000 1.06% 21,894 12,000 55,742 44,506 50,244 13,430 34,284 8,537 240,637 2,559 2,559 $2.56
24 Bacino's 6,378 6.78% 21,894 12,000 55,742 44,506 50,244 13,430 34,284 8,537 240,637 16,324 16,324 $2.56
25 TGI Friday's 6,000 [2] 6.38% 21,894 12,000 55,742 44,506 50,244 13,430 34,284 8,537 240,637 15,356 10,020 10,020 $1.67
Totals 94,022 100.00% 132,548
Notes:
[1] Provincial Staffing Services has a combined CAM, Tax, and Insurance cap of $4.92 psf. This cap has been split equally ($2.46) between CAM and Tax recoveries to insure that tenants total recoveries do not exceed $4.92
psf.
[2] TGI Friday's CAM is capped at $1.67 per square foot.
Common Area Maintenance Recoveries - Stabilized 94,022 Square Feet
CAM Expenses Tenants Cap or Tenants Tenants

Pro-Rata Janitorial & Parking Mgmt Total Pro-Rata Base CAM CAM
Unit Tenant Size (SF) Notes Share Utilities Repairs R&M Landscaping & Roads Admin Fee Insurance CAM Share Year Payable PSF
2 Available 11,180 11.89% 21,894 12,000 55,742 44,506 50,244 13,430 55,396 8,537 261,749 31,124 31,124 $2.78
3 Available 12,866 13.68% 21,894 12,000 55,742 44,506 50,244 13,430 55,396 8,537 261,749 35,818 35,818 $2.78
4 Honey Baked Hams 3,910 4.16% 21,894 12,000 55,742 44,506 50,244 13,430 55,396 8,537 261,749 10,885 10,885 $2.78
5-6 Home Savings of America 3,870 4.12% 21,894 12,000 55,742 44,506 50,244 13,430 55,396 8,537 261,749 10,774 10,774 $2.78
7 Available 1,720 1.83% 21,894 12,000 55,742 44,506 50,244 13,430 55,396 8,537 261,749 4,788 4,788 $2.78
8 A Design Shoppe (OFS) 2,440 2.60% 21,894 12,000 55,742 44,506 50,244 13,430 55,396 8,537 261,749 6,793 6,793 $2.78
9 Cobblestone Shoe Repair 1,000 1.06% 21,894 12,000 55,742 44,506 50,244 13,430 55,396 8,537 261,749 2,784 2,784 $2.78
10 Provincial Staffing Services 1,000 [1] 1.06% 21,894 12,000 55,742 44,506 50,244 13,430 55,396 8,537 261,749 2,784 2,460 2,460 $2.46
11 Moda Boutique 2,440 2.60% 21,894 12,000 55,742 44,506 50,244 13,430 55,396 8,537 261,749 6,793 6,793 $2.78
12 Chesapeake Bagel Bakery 1,720 1.83% 21,894 12,000 55,742 44,506 50,244 13,430 55,396 8,537 261,749 4,788 4,788 $2.78
13 Ogden Cleaners 1,290 1.37% 21,894 12,000 55,742 44,506 50,244 13,430 55,396 8,537 261,749 3,591 3,591 $2.78
14 Rizzi Florist 3,010 3.20% 21,894 12,000 55,742 44,506 50,244 13,430 55,396 8,537 261,749 8,380 8,380 $2.78
16 Mario Tricoci Salon & Day Spa 9,685 10.30% 21,894 12,000 55,742 44,506 50,244 13,430 55,396 8,537 261,749 26,962 26,962 $2.78
18 Available 11,083 11.79% 21,894 12,000 55,742 44,506 50,244 13,430 55,396 8,537 261,749 30,854 30,854 $2.78
19 Airline Ticket Center 2,430 2.58% 21,894 12,000 55,742 44,506 50,244 13,430 55,396 8,537 261,749 6,765 6,765 $2.78
20 Available 3,260 3.47% 21,894 12,000 55,742 44,506 50,244 13,430 55,396 8,537 261,749 9,076 9,076 $2.78
21 Charles Schwab 3,633 3.86% 21,894 12,000 55,742 44,506 50,244 13,430 55,396 8,537 261,749 10,114 10,114 $2.78
22 Shapes Bar & Billiards 4,107 4.37% 21,894 12,000 55,742 44,506 50,244 13,430 55,396 8,537 261,749 11,434 11,434 $2.78
23 Fannie May Candies 1,000 1.06% 21,894 12,000 55,742 44,506 50,244 13,430 55,396 8,537 261,749 2,784 2,784 $2.78
24 Bacino's 6,378 6.78% 21,894 12,000 55,742 44,506 50,244 13,430 55,396 8,537 261,749 17,756 17,756 $2.78
25 TGI Friday's 6,000 [2] 6.38% 21,894 12,000 55,742 44,506 50,244 13,430 55,396 8,537 261,749 16,703 10,020 10,020 $1.67
Totals 94,022 100.00% 254,742
Notes:
[1] Provincial Staffing Services has a combined CAM, Tax, and Insurance cap of $4.92 psf. This cap has been split equally ($2.46) between CAM and Tax recoveries to insure that tenants total recoveries do not exceed $4.92
psf.
[2] TGI Friday's CAM is capped at $1.67 per square foot.
Real Estate Tax Recoveries 94,022 Square Feet
Total Pro-Rata Cap or Tenants Tenants

Tax Pro-Rata Tax Share Base Taxes Taxes
Unit Tenant Size (SF) Notes Denominator Share Expense of Taxes Year Payable PSF
2 Available 11,180 94,022 11.89% $233,126 $27,721 $27,721 $2.48
3 Available 12,866 94,022 13.68% $233,126 $31,901 $31,901 $2.48
4 Honey Baked Hams 3,910 95,092 4.11% $233,126 $9,586 $9,586 $2.45
5-6 Home Savings of America 3,870 94,022 4.12% $233,126 $9,596 $9,596 $2.48
7 Available 1,720 94,022 1.83% $233,126 $4,265 $4,265 $2.48
8 A Design Shoppe (OFS) 2,440 94,022 2.60% $233,126 $6,050 $6,050 $2.48
9 Cobblestone Shoe Repair 1,000 94,022 1.06% $233,126 $2,479 $2,479 $2.48
10 Provincial Staffing Services 1,000 [1] 94,022 1.06% $233,126 $2,479 2,460 2,460 $2.46
11 Moda Boutique 2,440 94,022 2.60% $233,126 $6,050 $6,050 $2.48
12 Chesapeake Bagel Bakery 1,720 94,022 1.83% $233,126 $4,265 $4,265 $2.48
13 Ogden Cleaners 1,290 94,022 1.37% $233,126 $3,199 $3,199 $2.48
14 Rizzi Florist 3,010 94,022 3.20% $233,126 $7,463 $7,463 $2.48
16 Mario Tricoci Salon & Day Spa 9,685 94,022 10.30% $233,126 $24,014 $24,014 $2.48
18 Available 11,083 94,022 11.79% $233,126 $27,480 $27,480 $2.48
19 Airline Ticket Center 2,430 95,092 2.56% $233,126 $5,957 $5,957 $2.45
20 Available 3,260 94,022 3.47% $233,126 $8,083 $8,083 $2.48
21 Charles Schwab 3,633 95,092 3.82% $233,126 $8,907 $8,907 $2.45
22 Shapes Bar & Billiards 4,107 94,022 4.37% $233,126 $10,183 $10,183 $2.48
23 Fannie May Candies 1,000 95,092 1.05% $233,126 $2,452 $2,452 $2.45
24 Bacino's 6,378 95,092 6.71% $233,126 $15,636 $15,636 $2.45
25 TGI Friday's 6,000 [2] 94,022 6.38% $0 $0 $20,983 $3.50
Total 94,022 99.79% $238,728
Notes:
[1] Provincial Staffing Services has a combined CAM, Tax, and Insurance cap of $4.92 psf. This cap has been split equally ($2.46) between CAM and
Tax recoveries to insure that tenants total recoveries do not exceed $4.92 psf.
[2] TGI Friday's is separately assessed for real estate taxes and pays landlord in July and October.
[3] Real Estate Taxes in the Township are reassessed every four years; however, assessed values are reviewed each year and adjustments can be
made. The last quadrennial reassessment took place for the 2020 taxes (payable 2021). The next quadrennial reassessment is scheduled to take
place for the 2024 taxes (payable 2025).
Tenant Lease Expiration Schedule 94,022 Square Feet
Lease 2029 to
Tenant SF Date Avail. 2024 2025 2026 2027 2028 2034 2035 +
Available 11,180 11,180
Available 12,866 12,866
Honey Baked Hams 3,910 12/31/24 3,910
Home Savings of America 3,870 12/31/25 3,870
Available 1,720 1,720
A Design Shoppe (OFS) 2,440 12/31/28 2,440
Cobblestone Shoe Repair 1,000 12/31/27 1,000
Provincial Staffing Services 1,000 12/31/24 1,000
Moda Boutique 2,440 12/31/28 2,440
Chesapeake Bagel Bakery 1,720 12/31/28 1,720
Ogden Cleaners 1,290 12/31/26 1,290
Rizzi Florist 3,010 12/31/24 3,010
Mario Tricoci Salon & Day Spa 9,685 12/31/35 9,685
Available 11,083 11,083
Airline Ticket Center 2,430 12/31/25 2,430
Available 3,260 3,260
Charles Schwab 3,633 12/31/29 3,633
Shapes Bar & Billiards 4,107 12/31/31 4,107
Fannie May Candies 1,000 12/31/24 1,000
Bacino's 6,378 12/31/33 6,378
TGI Friday's 6,000 12/31/25 6,000

Total SF 94,022 40,109 8,920 12,300 1,290 1,000 6,600 14,118 9,685
% of GLA 42.7% 9.5% 13.1% 1.4% 1.1% 7.0% 15.0% 10.3%
Cummulative % of GLA 42.7% 52.1% 65.2% 66.6% 67.7% 74.7% 89.7% 100.0%

Tenant Sales & Occupancy Costs 94,022 Square Feet
CY 2024 Est.
Unit TENANT SIZE (SF) 2023 6.00% Increase
11 Moda Boutique 2,440 $275,000 $291,500
Sales PSF $113 $119
% Change N/A 6.00%
Breakpoint $400,000
Overage Factor 8.00%
Estimated Percentage Rent $0
Estimated Occupancy Costs $29,011
Estimated Health Ratio 9.95%
23 Fannie May Candies 1,000 $237,345 $251,586

Sales PSF $237 $252
% Change N/A 6.00%
Breakpoint June 23 to May 24 $300,000
24 Bacino's 6,378 $1,900,000 $2,014,000

Sales PSF $298 $316
% Change N/A 6.00%
Breakpoint $2,000,000
25 TGI Friday's 6,000 $3,798,776 $4,026,702

Sales PSF $633 $671
% Change N/A 6.00%
Estimated Percentage Rent $18,906
During the renewal terms, the annual base rent shall be an amount equal to the average total rent (i.e., base rent plus
percentage rent) paid by tenant during the last two lease years of the original term or renewal term immediately
preceding.
The estimated rent change, commencing 1/1/2026, is calculated by adding the actual percentage rent paid in calendar
year 2022 ($28,963) to the minimum rent paid in calendar year 2022 ($85,000) to arrive at the new estimated minimum
rent of $113,963 and the new breakpoint of $3,798,776.
Health Ratio = Tenants Annual Occupancy Costs/Tenants Annual Sales

Real Estate Tax Analysis 94,022 Square Feet
Taxes Estimated Market Assessed Equalization Equalized Real Estate R.E. Tax
Payable Tax Year Parcel Number Description Market Value Factor Value Factor Value Tax Rate Tax per SF
2020 2019 08-08-200-048 Building A $4,484,400 33.33% $1,494,800 1.0000 $1,494,800 6.5076% $97,276 $1.03
2020 2019 08-08-200-049 Parking Lot $1,953,630 33.33% $651,210 1.0000 $651,210 6.5076% $42,378 $0.45
2020 2019 08-08-200-050 TGI Fridays $924,780 33.33% $308,260 1.0000 $308,260 6.5076% $20,060 $0.21
2020 2019 08-08-200-051 Building C $1,692,360 33.33% $564,120 1.0000 $564,120 6.5076% $36,711 $0.39
2020 2019 08-08-200-052 Building B $804,420 33.33% $268,140 1.0000 $268,140 6.5076% $17,449 $0.19
$9,859,590 $3,286,530 $213,874 $2.27
2021 2020 08-08-200-048 Building A $4,650,300 33.33% $1,550,100 1.0000 $1,550,100 6.3572% $98,543 $1.05
2021 2020 08-08-200-049 Parking Lot $2,025,930 33.33% $675,310 1.0000 $675,310 6.3572% $42,931 $0.46
2021 2020 08-08-200-050 TGI Fridays $959,010 33.33% $319,670 1.0000 $319,670 6.3572% $20,322 $0.22
2021 2020 08-08-200-051 Building C $1,755,000 33.33% $585,000 1.0000 $585,000 6.3572% $37,190 $0.40
2021 2020 08-08-200-052 Building B $834,180 33.33% $278,060 1.0000 $278,060 6.3572% $17,677 $0.19
$10,224,420 $3,408,140 $216,662 $2.30
2022 2021 08-08-200-048 Building A $4,780,500 33.33% $1,593,500 1.0000 $1,593,500 6.2720% $99,944 $1.06
2022 2021 08-08-200-049 Parking Lot $2,082,660 33.33% $694,220 1.0000 $694,220 6.2720% $43,541 $0.46
2022 2021 08-08-200-050 TGI Fridays $985,890 33.33% $328,630 1.0000 $328,630 6.2720% $20,612 $0.22
2022 2021 08-08-200-051 Building C $1,804,140 33.33% $601,380 1.0000 $601,380 6.2720% $37,719 $0.40
2022 2021 08-08-200-052 Building B $857,550 33.33% $285,850 1.0000 $285,850 6.2720% $17,929 $0.19
$10,510,740 $3,503,580 $219,745 $2.34
2023 2022 08-08-200-048 Building A $4,861,770 33.33% $1,620,590 1.0000 $1,620,590 6.0953% $98,780 $1.05
2023 2022 08-08-200-049 Parking Lot $2,118,060 33.33% $706,020 1.0000 $706,020 6.0953% $43,034 $0.46
2023 2022 08-08-200-050 TGI Fridays $1,002,660 33.33% $334,220 1.0000 $334,220 6.0953% $20,372 $0.22
2023 2022 08-08-200-051 Building C $1,834,800 33.33% $611,600 1.0000 $611,600 6.0953% $37,279 $0.40
2022 08-08-200-052 Building B $872,130 33.33% $290,710 1.0000 $290,710 6.0953% $17,720 $0.19
$10,689,420 $3,563,140 $217,184 $2.31
Notes:
Real Estate Taxes in the Township are reassessed every four years; however, assessed values are reviewed each year and adjustments can be made. The last quadrennial
reassessment took place for the 2020 taxes (payable 2021). The next quadrennial reassessment is scheduled to take place for the 2024 taxes (payable 2025).
This page is used to check different areas of the workbook to insure that
numbers and totals appearing in more than one place in the work book.
Check column C Error Messages.

An OK in the column means that the totals are equal on separate pages.
Square Footage
InPlace OK
Stable OK
Rent Roll OK
Expiration OK
Expiration OK
Net Operating Income

In-Place
Summary OK
I&E OK
Stabilized
Summary OK
I&E OK
Expenses
In-Place
I&E OK
Expense Detail OK
Stabilized
I&E OK
Expense Detail OK
Recoveries
CAM In-Place OK
CAM Stabilized OK
Real Estate Taxes OK
Circular References
Mgmt Fee In-Place OK
Mgmt Fee Stable OK
Matrix
In-Place NOI OK
Stable NOI OK
Page 17
State & Main Shopping Center
Anywhere, Illinois
Major Assumptions Aggressive Conservative

Leasing & Operations:
Start Date 1/1/24 1/1/24
Market: Base Rent/sq.ft.:
(a ) (b ) (c )
Less than or equal to cutoff $25.00 $18.00
(a ) (b ) (c )
More than cutoff $22.00 $14.00
Cutoff (sq.ft.) 5,000 5,000
(d )
Lease Renewal Probability 75% 50%
(e )
Downtime 6 months 12 months
Tenant Improvement Costs/sq.ft.:
New (or Non-Renewing) Tenants $5.00 $7.50
Renewing Tenants $5.00 $5.00
Leasing Commissions (as a % of base rent):
(f )
New (or Non-Renewing) Tenants 15% 15%
(g )
Renewing Tenants 10% 10%
"Free" Rent:
(h )
New (or Non-Renewing) Tenants 12 months 12 months
(h )
Renewing Tenants 0 months 12 months
Vacancy & Collection Allowance:
(i )
Year 1 25.00% 35.00%
Year 2 20.00% 25.00%
Year 3 10.00% 20.00%
Thereafter 7.50% 15.00%
Property Taxes: Assessed Value $25,000,000 $16,000,000
Property Taxes: Millage Rate 2.1%
Annual Growth Rates:

(j )
Base Rent 3.00% 1.50%
Other Income 3.00% 1.50%
Tenant Sales 3.00% 1.50%
(k )
Real Estate Taxes 3.00% 1.50%
CAM 3.00% 1.50%
Insurance 3.00% 1.50%
Non-Recoverable Expenses 3.00% 1.50%
Building Reserves 3.00% 1.50%
Valuation:
(l )
Initial Acquisition Expenses $150,000 $250,000
Building Reserves per Square Foot $0.15 $0.25
Disposition Costs 1.5% 1.50%
(m )
Discount Rate 10.0% 11.0%
(n )
Reversionary Capitalization Rate 7.5% 8.5%
Notes:
(a )
Beginning in 2024. (Accordingly, the rental rates for the currently vacant spaces as shown in the broker's
presentation (see Stable tab) should be ignored.) Further assume that all lease renewal options are exercised.
(b )
Tenant reimbursements (or recoveries) include property taxes and CAM. (In previous class discussions,
property taxes have been subsumed in CAM. Here, property taxes are shown separately from CAM,
which is a prevalent approach in practice.)
(c )
All new leases are assumed to be signed with a 5-year maturity. 5
(d )
Represents the probability that, upon lease expiration, the current tenant will decide renew its lease.
(e )
Applies only to non-renewing tenants.
(f )
Though based on a commission schedule of: 5%, 4%, 3%, 2% and 1% (for a 5-year lease), the leasing
commisions (like the TIs) are paid prior to lease commencement (and, therefore, are shown in the year
prior to lease commencement for financial modeling purposes). However, with regard to the out-for-
signature leases, assume that the Seller is responsible for the (TIs and) leasing commissions on such spaces.
(g )
Equal to two-thirds of the commission schedule for new tenants.
(h )
Applies only to base rents (recoveries are still to be paid by the tenant).
(i )
Applies to all rents (including recoveries ), superseding the downtime associated with vacating tenants.
(j )
Beginning in 2026; this delay in rent growth is applicable to the 'Conservative' case only.
(k )
Applies to stabilized property taxes. (Recall that the Assessor's Office will be informed of the price you
paid for the property.) To avoid excessive iterations, assume – for purposes of the property tax valuation
only – that the stabilized assessed value is $16 million under the 'Conservative' assummptions and $25 million
under the 'Aggressive' assumptions. For simplicity, assume that the tax liability equals 2.1% of the assessed value.
(l )
For convenience, assume this money is spent in its entirety on day one.
(m )
Applies to all pre-tax, pre-debt service cash flows.
(n)
Based upon forecasted NOI, excluding "free" rent (if any) as adjusted for vacancy and collection allowances.
Anywhere, Illinois
Comparison of Aggressive and Conservative Underwritings
Amount Percentage Elasticity *

Property Valuation Using the Aggressive Assumptions 100.0% N.A.
Differences Due to:
Market Rents
Leasing Renewal Probability
Leasing Downtime
Tenant Improvements
Leasing Commissions
Free Rent
Vacancy & Collection Allowance
Growth Rates
Acquisition & Initial Transaction Costs
Discount Rate
Reversionary Capitalization Rate
Other & Joint Effects
Total Differences N.A.
Property Valuation Using the Conservative Assumptions
* Recall the definition of elasticity: h = (Dq /q )/(Dp /p ) = (Dq /Dp )/(p /q ); from a theoretical perspective,
point elasticity applies when the function is known and the changes are infinitesimally small. Here, we will use
arc elasticity (when the equation is unknown) to provide us with some coarse sensitivity of our parameter assumptions.
Normally, such an approach might apply to the quantity demanded as a result of a price change. Our usage is not
typical. Our quantity demanded will be the value of the property and our price change will be the change in input
parameters (e.g. , market rents). Therefore, the definitions are for our purposes:
Dq = change in valuation and q = the Aggressive valuation, and

Dp = change in input parameter and p = the Aggressive input parameter.
Real Estate Investments I
Case #2: State & Main - Part I
January 25, 2024
Team Members:
{type names here }
In submitting this Solution Set, we pledge that we have not violated the BOOTH HONOR CODE.
Anywhere, Illinois
#1. Pro Forma Cash Flows using In-Place (& Out-for-Signature) Tenants
2024 2025 2026 2027 2028 2029 Totals
Base Rent
Current Lease $76,245 $0 $0 $0 $0 $0 $76,245
Lease Extension 0 80,155 80,155 84,065 84,065 84,065 412,505
Renewal Lease 0 0 0 0 0 0 0
Free Rent 0 0 0 0 0 0 0
Total Base Rent 76,245 80,155 80,155 84,065 84,065 84,065 488,750
Recoveries
Real Estate Taxes 13,973 13,973 13,973 13,973 13,973 13,973 83,837
Common Area Maintenance 8,735 8,742 8,746 8,756 8,760 8,765 52,504
Total Recoveries 22,708 22,715 22,719 22,729 22,733 22,738 136,342
Other Income 4,945 5,019 5,095 5,171 5,249 5,327 30,806
Percentage Rent 15,513 17,274 20,057 23,686 27,370 31,109 135,007
Gross Potential Rent 119,410 125,163 128,025 135,650 139,417 143,239 790,905
Less: Vacancy/Credit Loss 0 0 0 0 0 0 0
Gross Operating Income 119,410 125,163 128,025 135,650 139,417 143,239 790,905
Operating Expenses:
Real Estate Taxes 336,000 336,000 336,000 336,000 336,000 336,000 2,016,000
CAM 197,816 197,816 197,816 197,816 197,816 197,816 1,186,896
Insurance 8,537 8,537 8,537 8,537 8,537 8,537 51,222
Management Fee 3,688 3,866 3,954 4,190 4,306 4,424 24,430
Non Recoverable 75,508 75,508 75,508 75,508 75,508 75,508 453,048
Total Operating Expenses 621,549 621,727 621,815 622,051 622,167 622,285 3,731,596
Net Operating Income (502,139) (496,564) (493,790) (486,401) (482,751) (479,046) (2,940,691)
543,854 535924.71 501,694
Capital Expenditures
Leasing Commissions 0 0 0 0 0 0 0
Tenant Improvements #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0 #DIV/0!
Building Reserves 0 0 0 0 0 0 0
Total #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0 #DIV/0!
Net Cash Flow before Debt Service #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! ($479,046) #DIV/0!
As Compared to "Now" Assumptions:

Gross Operating Income 152.99% 132.62% 124.35% 117.07% 117.09% 117.10% 126.87%
'Total Operating Expenses 97.48% 97.48% 97.48% 97.48% 97.48% 97.48% 97.48%
Net Operating Income 89.74% 91.38% 92.31% 93.13% 92.98% 92.83% 92.06%
Net Cash Flow before Debt Service #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 92.83% #DIV/0!
Anywhere, Illinois
#2. Pro Forma Cash Flows under the Conservative Assumptions
2024 2025 2026 2027 2028 2029 Totals
Base Rent
Current Lease $76,245 $0 $0 $0 $0 $0 $76,245
Lease Extension 0 80,155 80,155 84,065 84,065 84,065 412,505
Free Rent 0 0 0 0 0 0 0
Total Base Rent 76,245 80,155 80,155 84,065 84,065 84,065 488,750
Recoveries
Other Income 4,945 5,019 5,095 5,171 5,249 5,327 30,806
Percentage Rent 15,513 17,274 20,057 23,686 27,370 31,109 135,007
Scheduled Operating Income 120,079 125,832 128,694 136,319 140,085 143,908 794,916
Less: Vacancy/Credit Loss (42,028) (31,458) (25,739) (20,448) (21,013) (21,586) (162,271)
Operating Expenses:
CAM 197,816 197,816 197,816 197,816 197,816 197,816 1,186,896
Insurance 8,537 8,537 8,537 8,537 8,537 8,537 51,222
Management Fee 19,765 19,942 20,031 20,266 20,383 20,501 120,887
Non Recoverable 75,508 75,508 75,508 75,508 75,508 75,508 453,048
Tenant Improvements 0 0 0 0 0 0 0
Total 0 0 0 0 0 0 0
Net Cash Flow before Debt Service ($559,574) ($543,430) ($534,937) ($522,256) ($519,171) ($516,040) ($3,195,408)
Income Yield #REF! #REF! #REF! #REF! #REF! #REF! #REF!
Cash-on-Cash Yield #REF! #REF! #REF! #REF! #REF! #REF! #REF!

Anywhere, Illinois
#6. Pro Forma Cash Flows under the Aggressive Assumptions
2024 2025 2026 2027 2028 2029 Totals
Base Rent
Current Lease $76,245 $0 $0 $0 $0 $0 $76,245
Lease Extension 0 80,155 80,155 84,065 84,065 84,065 412,505
Free Rent 0 0 0 0 0 0 0
Total Base Rent 76,245 80,155 80,155 84,065 84,065 84,065 488,750
Recoveries
Other Income 5,018 5,169 5,324 5,483 5,648 5,817 32,460
Percentage Rent 19,951 27,206 34,679 42,377 50,305 58,471 232,989
Scheduled Operating Income 132,699 144,030 151,667 163,450 171,553 179,899 943,297
Less: Vacancy/Credit Loss (33,175) (28,806) (15,167) (12,259) (12,866) (13,492) (115,765)
Operating Expenses:
CAM 197,816 197,816 197,816 197,816 197,816 197,816 1,186,896
Insurance 8,537 8,537 8,537 8,537 8,537 8,537 51,222
Management Fee 25,750 26,099 26,335 26,699 26,950 27,207 159,041
Non Recoverable 75,508 75,508 75,508 75,508 75,508 75,508 453,048
Tenant Improvements 0 0 0 0 0 0 0
Total 0 0 0 0 0 0 0
Net Cash Flow before Debt Service ($733,086) ($717,737) ($696,696) ($682,370) ($675,124) ($667,662) ($4,172,675)
Income Yield #REF! #REF! #REF! #REF! #REF! #REF! #REF!
Cash-on-Cash Yield #REF! #REF! #REF! #REF! #REF! #REF! #REF!
{As you complete your analysis, you can revise the formulae above to link to your estimate of contributed capital (i.e ., acquisition basis).}
Anywhere, Illinois
Discounted Cash Flow/Valuation Estimate
#4. Using the "Conservative" Assumptions

Present
Value of
Cash Flow from Discount Future
Year Operations Sale Total Rate Cash Flow
1 ($559,574) ($559,574) 0.90090 ($504,121)
2 (543,430) (543,430) 0.81162 (441,060)
3 (534,937) (534,937) 0.73119 (391,141)
4 (522,256) (522,256) 0.65873 (344,026)
5 (519,171) (519,171) 0.59345 (308,103)
Total ($2,679,368) $0 ($2,679,368) ($1,988,451)
#8. Using the "Aggressive" Assumptions

Present
Value of
Cash Flow from Discount Future
Year Operations Sale Total Rate Cash Flow
1 ($733,086) ($733,086) 0.90909 ($666,442)
2 (717,737) (717,737) 0.82645 (593,171)
3 (696,696) (696,696) 0.75131 (523,438)
4 (682,370) (682,370) 0.68301 (466,068)
5 (675,124) (675,124) 0.62092 (419,199)
Total ($3,505,013) $0 ($3,505,013) ($2,668,317)
Appendix I: Lease-by-Lease Analysis – "In-Place" Assumptions

Anywhere, Illinois
As of January 1, 2024
Educational Illustration Only Real Estate Investments I Not for Distribution

Anywhere, Illinois
Escalated Values under the"In-Place" Assumptions
Assumed Growth Rate
Base Rent 2024 2025 2026 2027 2028 2029

Large Tenant $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Small Tenannt $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
"Free" Rent (as a % of First-Year Rent) 0% 0% 0% 0% 0% 0%
Vacancy & Collection Loss
Operating Expenses
Real Estate Taxes $336,000 $336,000 $336,000 $336,000 $336,000 $336,000
CAM $197,816 $197,816 $197,816 $197,816 $197,816 $197,816
Insurance $8,537 $8,537 $8,537 $8,537 $8,537 $8,537
Management Fee $3,688 $3,866 $3,954 $4,190 $4,306 $4,424
Non Recoverable $75,508 $75,508 $75,508 $75,508 $75,508 $75,508
Capital Expenses
Leasing Commissions 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Tenant Improvements $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Building Reserves $0 $0 $0 $0 $0
Notes to Students:
Insert appropriate percentages in D6 and D14:I14 – using the Conservative assumptions.
Insert appropriate dollar amount in D26 – using the Conservative assumptions.
Anywhere, Illinois
Five-Year Lease-by-Lease Analysis - Using In-Place (and Out-for-Signature) Tenants Only
Rental Revenues:
Tenant Unit #4: Honey Baked Hams
Summary Information: Percentage
Square Footage: Total of Total
Net 3,910 4.2%
Lease Commencement Date 1/1/14
Lease Expiration Date 12/31/24 Given to you as an example,
Base Rent/Sq. Ft.: to facilitate your completing
the information for the
Current Lease $19.50
remaining tenants.
Lease Extension 1 $20.50
Financial Information: 2023 2024 2025 2026 2027 2028 2029
Base Rent:
Current Lease $76,245
Lease Extension $80,155 $80,155 $84,065 $84,065 $84,065
Lease Renewal
Percentage Rent
"Free" Rent
Share of RE Taxes 13,973 13,973 13,973 13,973 13,973 13,973
Share of CAM + Insurance + Management Fee 8,735 8,742 8,746 8,756 8,760 8,765
Total Rental Payments 98,953 102,870 102,874 106,794 106,798 106,803
Leasing Commissions
Tenant Improvements

Anywhere, Illinois
Tenant Unit #5-6: Home Savings of America
Net
Lease Commencement Date
Lease Expiration Date
Base Rent/Sq. Ft.:
Current Lease 1
Current Lease 2
Lease Extension 1
Lease Extension 2
Lease Extension 3
Renewal Lease
Base Rent:
Current Lease $0 $0
Lease Extension $0 $0 $0
Renewal Lease
Percentage Rent
"Free" Rent
Share of RE Taxes 0 0 0 0 0
Share of CAM + Insurance + Management Fee 0 0 0 0 0
Total Rental Payments 0 0 0 0 0 0
Leasing Commissions $0
Tenant Improvements #DIV/0!

Anywhere, Illinois
Tenant Unit #8: A Design Shoppe (OFS)
Net
Base Rent/Sq. Ft.:
Current Lease 1
Current Lease 2
Current Lease 3
Current Lease 4
Current Lease 5
Renewal Lease
Base Rent:
Current Lease $0 $0 $0 $0 $0
Lease Extension
Renewal Lease
Percentage Rent
"Free" Rent
Leasing Commissions $0 $0
Tenant Improvements $0 #DIV/0!

Anywhere, Illinois
Tenant Unit #9: Cobblestone Shoe Repair
Net
Base Rent/Sq. Ft.:
Current Lease 1
Current Lease 2
Current Lease 3
Current Lease 4
Renewal Lease
Base Rent:
Current Lease $0 $0 $0 $0
Lease Extension
Renewal Lease
Percentage Rent
"Free" Rent
Share of RE Taxes 0 0 0 0
Share of CAM + Insurance + Management Fee 0 0 0 0

Anywhere, Illinois
Tenant Unit #10: Provincial Staffing Services
Net
Base Rent/Sq. Ft.:
Current Lease
Renewal Lease
Base Rent:
Current Lease $0
Lease Extension
Renewal Lease
Percentage Rent
"Free" Rent
Share of RE Taxes 0
Share of CAM + Insurance + Management Fee 0

Anywhere, Illinois
Tenant Unit #11: Moda Boutique
Net
Base Rent/Sq. Ft.:
Current Lease 1
Current Lease 2
Current Lease 3
Current Lease 4
Current Lease 5
Renewal Lease
Base Rent:
Lease Extension
Renewal Lease
Percentage Rent 0 0 0 0 0
"Free" Rent

Anywhere, Illinois
Tenant Unit #12: Chesapeake Bagel Bakery
Net
Base Rent/Sq. Ft.:
Current Lease 1
Current Lease 2
Current Lease 3
Current Lease 4
Current Lease 5
Lease Extension 1
Base Rent:
Lease Extension $0
Renewal Lease
Percentage Rent
"Free" Rent
Share of RE Taxes 0 0 0 0 0 0
Share of CAM + Insurance + Management Fee 0 0 0 0 0 0
Leasing Commissions
Tenant Improvements

Anywhere, Illinois
Tenant Unit #13: Ogden Cleaners
Net
Base Rent/Sq. Ft.:
Current Lease 1
Current Lease 2
Current Lease 3
Renewal Lease
Base Rent:
Current Lease $0 $0 $0
Lease Extension
Renewal Lease
Percentage Rent
"Free" Rent
Share of RE Taxes 0 0 0
Share of CAM + Insurance + Management Fee 0 0 0

Anywhere, Illinois
Tenant Unit #14: Rizzi Florist
Net
Base Rent/Sq. Ft.:
Current Lease
Lease Extension 1
Lease Extension 2
Lease Extension 3
Lease Extension 4
Lease Extension 5
Base Rent:
Current Lease $0
Lease Extension $0 $0 $0 $0 $0
Renewal Lease
Percentage Rent
"Free" Rent
Leasing Commissions
Tenant Improvements

Anywhere, Illinois
Tenant Unit #16: Mario Tricoci Salon & Day Spa
Net
Base Rent/Sq. Ft.:
Current Lease
Renewal Lease NA
Base Rent:
Current Lease $0 $0 $0 $0 $0 $0
Lease Extension
Renewal Lease
Percentage Rent
"Free" Rent 0
Leasing Commissions
Tenant Improvements

Anywhere, Illinois
Tenant Unit #19: Airline Ticket Center
Net
Base Rent/Sq. Ft.:
Current Lease
Renewal Lease
Base Rent:
Current Lease $0 $0
Lease Extension
Renewal Lease
Percentage Rent
"Free" Rent
Share of RE Taxes 0 0
Share of CAM + Insurance + Management Fee 0 0

Anywhere, Illinois
Tenant Unit #21: Charles Schwab
Net
Base Rent/Sq. Ft.:
Current Lease 1
Current Lease 2
Base Rent:
Current Lease $0 $0 $0 $0 $0 $0
Lease Extension
Renewal Lease
Percentage Rent
"Free" Rent 0
Tenant Improvements $0

Anywhere, Illinois
Tenant Unit #22: Shapes Bar & Billiards
Net
Base Rent/Sq. Ft.:
Current Lease 1
Current Lease 2
Current Lease 3
Current Lease 4
Current Lease 5
Current Lease 6
Base Rent:
Current Lease $0 $0 $0 $0 $0 $0
Lease Extension
Renewal Lease
Percentage Rent
"Free" Rent
Leasing Commissions
Tenant Improvements

Anywhere, Illinois
Tenant Unit #23: Fannie May Candies
Net
Base Rent/Sq. Ft.:
Current Lease
Renewal Lease
Base Rent:
Current Lease $0
Lease Extension
Renewal Lease
Percentage Rent 0
"Free" Rent
Share of RE Taxes 0
Share of CAM + Insurance + Management Fee 0

Anywhere, Illinois
Tenant Unit #24: Bacino's
Net
Base Rent/Sq. Ft.:
Current Lease
Lease Extension
Base Rent:
Lease Extension $0
Renewal Lease
Percentage Rent 0 0 995 2,810 4,653 6,522
"Free" Rent
Total Rental Payments 0 0 995 2,810 4,653 6,522

Anywhere, Illinois
Tenant Unit #25: TGI Friday's
Net
Base Rent/Sq. Ft.:
Current Lease
Lease Extension
Base Rent:
Current Lease $0 $0
Lease Extension $0 $0 $0 $0
Renewal Lease
Percentage Rent 15,513 17,274 19,061 20,876 22,717 24,586
"Free" Rent
Leasing Commissions
Tenant Improvements

Anywhere, Illinois
Total Space 2023 2024 2025 2026 2027 2028 2029

Base Rent:
Current Lease $76,245 $0 $0 $0 $0 $0
Lease Extension 0 80,155 80,155 84,065 84,065 84,065
Renewal Lease 0 0 0 0 0 0
Percentage Rent 15,513 17,274 20,057 23,686 27,370 31,109
"Free" Rent 0 0 0 0 0 0
Share of RE Taxes 13,973 13,973 13,973 13,973 13,973 13,973
Total Rental Payments $114,465 $120,144 $122,930 $130,480 $134,168 $137,912
Leasing Commissions $0 $0 $0 $0 $0 $0 $0
Tenant Improvements $0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! $0
Occupied (and Out-for-Signature) Space 2023 2024 2025 2026 2027 2028 2029
Base Rent:
Current Lease $76,245 $0 $0 $0 $0 $0
Lease Extension 0 80,155 80,155 84,065 84,065 84,065
Percentage Rent 15,513 17,274 20,057 23,686 27,370 31,109
"Free" Rent 0 0 0 0 0 0
Share of RE Taxes 13,973 13,973 13,973 13,973 13,973 13,973
Tenant Improvements $0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! $0

Appendix II: Lease-by-Lease Analysis – Conservative Assumptions

Anywhere, Illinois

Anywhere, Illinois
Weighted-Average Year-One Leasing Rates under the Conservative Assumptions
Large Tenants Renewal Leasing Tenant Free

Rents Commissions Improvements Rent Downtime
Tenant
Renews
Lease
Expiration
100% Tenant
Vacates
Weighted Average $0.00 0.0% $0.00 0 Months 0 Months
Small Tenants
Tenant
0% Renews
Lease
Expiration
100% Tenant
Vacates
Notes to Students:
Insert appropriate percentages in B9, G8, G12, G20 and G24 – using the Conservative assumptions.
Insert appropriate dollar amounts in E8, E12, E20 and E24 – using the Conservative assumptions.
Insert appropriate number of months in K8, K12, K20 and K25 and M8, M12, M20 and M25 – using the Conservative
assumptions.
Anywhere, Illinois
Escalated Values under the Conservative Assumptions
Assumed Growth Rate
Base Rent 2024 2025 2026 2027 2028 2029

Large Tenant $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Small Tenannt $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Operating Expenses
CAM $197,816 $197,816 $197,816 $197,816 $197,816 $197,816
Insurance $8,537 $8,537 $8,537 $8,537 $8,537 $8,537
Management Fee $19,765 $19,942 $20,031 $20,266 $20,383 $20,501
Non Recoverable $75,508 $75,508 $75,508 $75,508 $75,508 $75,508
Capital Expenses
Notes to Students:
Insert appropriate percentages in D6, D14:I14 – using the Conservative assumptions.
Insert the (total) dollar amount in D26 – using the Conservative assumptions.
CY 2024 Est.
11 Moda Boutique 2,440 $275,000 $283,312
Sales PSF $113 $116
% Change N/A 3.02%
Breakpoint $400,000

Sales PSF $237 $245
% Change N/A 3.02%
24 Bacino's 6,378 $1,900,000 $1,957,428

Sales PSF $298 $307
% Change N/A 3.02%
25 TGI Friday's 6,000 $3,798,776 $3,913,594

Sales PSF $633 $652
% Change N/A 3.02%
preceding.

Anywhere, Illinois
Five-Year Lease-by-Lease Analysis - Using the Conservative Assumptions
Rental Revenues:
Tenant Unit #2: Available
Net
Base Rent/Sq. Ft.:
Current Lease $0.00
Renewal Lease $0.00
Base Rent:
Lease Extension
Renewal Lease 0
Percentage Rent
"Free" Rent 0 0
Tenant Improvements $0 $0

Anywhere, Illinois

Net
Base Rent/Sq. Ft.:
Current Lease $0.00
Renewal Lease $0.00
Base Rent:
Lease Extension
Renewal Lease 0
Percentage Rent
"Free" Rent 0 0

Anywhere, Illinois

Net 3,910 4.2%
Lease Expiration Date 12/31/24
Base Rent/Sq. Ft.:
Base Rent:
Lease Extension $80,155 $80,155 $84,065 $84,065 $84,065
Lease Renewal
Percentage Rent
"Free" Rent
Share of RE Taxes 13,973 13,973 13,973 13,973 13,973 13,973
Leasing Commissions
Tenant Improvements

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Current Lease 1 $0.00
Renewal Lease $0.00
Base Rent:
Current Lease $0 $0
Renewal Lease $0
Percentage Rent
"Free" Rent 0

Anywhere, Illinois

Net
Base Rent/Sq. Ft.:
Current Lease $0.00
Renewal Lease $0.00
Base Rent:
Lease Extension
Renewal Lease $0
Percentage Rent
"Free" Rent 0 0

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Renewal Lease $0.00
Base Rent:
Lease Extension
Renewal Lease $0
Percentage Rent
"Free" Rent 0

Anywhere, Illinois
Net 0 0.0%
Base Rent/Sq. Ft.:
Renewal Lease $0.00
Base Rent:
Lease Extension
Renewal Lease $0 $0
Percentage Rent
"Free" Rent 0

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Current Lease $0.00
Renewal Lease $0.00
Base Rent:
Current Lease $0
Lease Extension
Renewal Lease $0 $0 $0 $0 $0
Percentage Rent
"Free" Rent 0

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Renewal Lease $0.00
Base Rent:
Lease Extension
Renewal Lease $0
"Free" Rent 0

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Base Rent:
Lease Extension $0
Renewal Lease
Percentage Rent
"Free" Rent
Leasing Commissions
Tenant Improvements

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Renewal Lease $0.00
Base Rent:
Lease Extension
Renewal Lease $0 $0 $0
Percentage Rent
"Free" Rent 0

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Current Lease $0.00
Base Rent:
Current Lease $0
Renewal Lease
Percentage Rent
"Free" Rent
Leasing Commissions
Tenant Improvements

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Current Lease $0.00
Renewal Lease NA
Base Rent:
Current Lease $0 $0 $0 $0 $0 $0
Lease Extension
Renewal Lease
Percentage Rent
"Free" Rent 0
Leasing Commissions
Tenant Improvements

Anywhere, Illinois

Net
Base Rent/Sq. Ft.:
Current Lease $0.00
Renewal Lease $0.00
Base Rent:
Lease Extension
Renewal Lease $0
Percentage Rent
"Free" Rent 0 0

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Current Lease $0.00
Renewal Lease $0.00
Base Rent:
Current Lease $0 $0
Lease Extension
Renewal Lease $0 $0 $0 $0
Percentage Rent
"Free" Rent 0

Anywhere, Illinois

Net
Base Rent/Sq. Ft.:
Current Lease $0.00
Renewal Lease $0.00
Base Rent:
Lease Extension
Renewal Lease $0
Percentage Rent
"Free" Rent 0 0

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Base Rent:
Current Lease $0 $0 $0 $0 $0 $0
Lease Extension
Renewal Lease
Percentage Rent
"Free" Rent 0

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Base Rent:
Current Lease $0 $0 $0 $0 $0 $0
Lease Extension
Renewal Lease
Percentage Rent
"Free" Rent
Leasing Commissions
Tenant Improvements

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Current Lease $0.00
Renewal Lease $0.00
Base Rent:
Current Lease $0
Lease Extension
Percentage Rent 0
"Free" Rent 0

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Current Lease $0.00
Lease Extension $0.00
Base Rent:
Lease Extension $0
Renewal Lease
Percentage Rent 0 0 995 2,810 4,653 6,522
"Free" Rent
Total Rental Payments 0 0 995 2,810 4,653 6,522

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Current Lease $0.00
Base Rent:
Current Lease $0 $0
Renewal Lease
Percentage Rent 15,513 17,274 19,061 20,876 22,717 24,586
"Free" Rent
Leasing Commissions
Tenant Improvements

Anywhere, Illinois
Total Space 2023 2024 2025 2026 2027 2028 2029

Base Rent:
Current Lease $76,245 $0 $0 $0 $0 $0
Lease Extension 0 80,155 80,155 84,065 84,065 84,065
Percentage Rent 15,513 17,274 20,057 23,686 27,370 31,109
"Free" Rent 0 0 0 0 0 0
Share of RE Taxes 13,973 13,973 13,973 13,973 13,973 13,973
Tenant Improvements $0 $0 $0 $0 $0 $0 $0
Base Rent:
Current Lease $76,245 $0 $0 $0 $0 $0
Lease Extension 0 80,155 80,155 84,065 84,065 84,065
Percentage Rent 15,513 17,274 20,057 23,686 27,370 31,109
"Free" Rent 0 0 0 0 0 0
Share of RE Taxes 13,973 13,973 13,973 13,973 13,973 13,973

Appendix III: Lease-by-Lease Analysis – Aggressive Assumptions

Anywhere, Illinois

Anywhere, Illinois
Weighted-Average Year-One Leasing Rates under the Aggressive Assumptions
Large Tenants Renewal Leasing Tenant Free

Rents Commissions Improvements Rent Downtime
Tenant
Renews
Lease
Expiration
100% Tenant
Vacates
Small Tenants
Tenant
0% Renews
Lease
Expiration
100% Tenant
Vacates
Differences - Now v . Then $0.00 0.00% $0.00 0 Months 0 Months
Notes to Students:
Insert appropriate percentages in B9, G8, G12, G20 and G24 – using the Aggressive assumptions.
Insert appropriate dollar amounts in E8, E12, E20 and E24 – using the Aggressive assumptions.
Insert appropriate number of months in K8, K12, K20 and K25 and M8, M12, M20 and M25 – using the Aggressive
assumptions.
Anywhere, Illinois
Escalated Values under the Aggressive Assumptions
Assumed Growth Rate
Base Rent 2024 2025 2026 2027 2028 2029

Large Tenant $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Small Tenannt $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Operating Expenses
CAM $197,816 $197,816 $197,816 $197,816 $197,816 $197,816
Insurance $8,537 $8,537 $8,537 $8,537 $8,537 $8,537
Management Fee $25,750 $26,099 $26,335 $26,699 $26,950 $27,207
Non Recoverable $75,508 $75,508 $75,508 $75,508 $75,508 $75,508
Capital Expenses
Notes to Students:
Insert appropriate percentages in D6, D14:I14 – using the Aggressive assumptions.
Insert the (total) dollar amount in D26 – using the Aggressive assumptions.
CY 2024 Est.
11 Moda Boutique 2,440 $275,000 $291,748
Sales PSF $113 $120
% Change N/A 6.09%
Breakpoint $400,000

Sales PSF $237 $252
% Change N/A 6.09%
24 Bacino's 6,378 $1,900,000 $2,015,710

Sales PSF $298 $316
% Change N/A 6.09%
25 TGI Friday's 6,000 $3,798,776 $4,030,121

Sales PSF $633 $672
% Change N/A 6.09%
preceding.

Anywhere, Illinois
Five-Year Lease-by-Lease Analysis - Using the Aggressive Assumptions
Rental Revenues:
Net 0 0.0%
Base Rent/Sq. Ft.:
Current Lease $0.00
Renewal Lease $0.00
Base Rent:
Lease Extension
Renewal Lease $0
Percentage Rent
"Free" Rent 0 0

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Current Lease $0.00
Renewal Lease $0.00
Base Rent:
Lease Extension
Renewal Lease $0
Percentage Rent
"Free" Rent 0 0

Anywhere, Illinois

Net 3,910 4.2%
Base Rent/Sq. Ft.:
Base Rent:
Lease Extension $80,155 $80,155 $84,065 $84,065 $84,065
Lease Renewal
Percentage Rent
"Free" Rent
Share of RE Taxes 21,833 21,833 21,833 21,833 21,833 21,833
Leasing Commissions
Tenant Improvements

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Renewal Lease $0.00
Base Rent:
Current Lease $0 $0
Renewal Lease $0
Percentage Rent
"Free" Rent 0

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Current Lease $0.00
Renewal Lease $0.00
Base Rent:
Lease Extension
Renewal Lease $0
Percentage Rent
"Free" Rent 0 0

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Renewal Lease $0.00
Base Rent:
Lease Extension
Renewal Lease $0
Percentage Rent
"Free" Rent 0

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Renewal Lease $0.00
Base Rent:
Lease Extension
Renewal Lease $0 $0
Percentage Rent
"Free" Rent 0

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Current Lease $0.00
Renewal Lease $0.00
Base Rent:
Current Lease $0
Lease Extension
Percentage Rent
"Free" Rent 0

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Renewal Lease $0.00
Base Rent:
Lease Extension
Renewal Lease $0
"Free" Rent 0

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Base Rent:
Lease Extension $0
Renewal Lease
Percentage Rent
"Free" Rent
Leasing Commissions
Tenant Improvements

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Renewal Lease $0.00
Base Rent:
Lease Extension
Renewal Lease $0 $0 $0
Percentage Rent
"Free" Rent 0

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Current Lease $0.00
Base Rent:
Current Lease $0
Renewal Lease
Percentage Rent
"Free" Rent
Leasing Commissions
Tenant Improvements

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Current Lease $0.00
Renewal Lease NA
Base Rent:
Current Lease $0 $0 $0 $0 $0 $0
Lease Extension
Renewal Lease
Percentage Rent
"Free" Rent 0
Leasing Commissions
Tenant Improvements

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Current Lease $0.00
Renewal Lease $0.00
Base Rent:
Lease Extension
Renewal Lease $0
Percentage Rent
"Free" Rent 0 0

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Current Lease $0.00
Renewal Lease $0.00
Base Rent:
Current Lease $0 $0
Lease Extension
Renewal Lease $0 $0 $0 $0
Percentage Rent
"Free" Rent 0

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Current Lease $0.00
Renewal Lease $0.00
Base Rent:
Lease Extension
Renewal Lease $0
Percentage Rent
"Free" Rent 0 0

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Base Rent:
Current Lease $0 $0 $0 $0 $0 $0
Lease Extension
Renewal Lease
Percentage Rent
"Free" Rent

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Base Rent:
Current Lease $0 $0 $0 $0 $0 $0
Lease Extension
Renewal Lease
Percentage Rent
"Free" Rent
Leasing Commissions
Tenant Improvements

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Current Lease $0.00
Renewal Lease $0.00
Base Rent:
Current Lease $0
Lease Extension
Percentage Rent 0
"Free" Rent 0

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Current Lease $0.00
Base Rent:
Lease Extension $0
Renewal Lease
Percentage Rent 943 4,571 8,308 12,157 16,122 20,206
"Free" Rent
Total Rental Payments 943 4,571 8,308 12,157 16,122 20,206

Anywhere, Illinois

Net 0 0.0%
Base Rent/Sq. Ft.:
Current Lease $0.00
Base Rent:
Current Lease $0 $0
Renewal Lease
Percentage Rent 19,008 22,636 26,371 30,219 34,183 38,265
"Free" Rent
Leasing Commissions
Tenant Improvements

Anywhere, Illinois
Total Space 2023 2024 2025 2026 2027 2028 2029

Base Rent:
Current Lease $76,245 $0 $0 $0 $0 $0
Lease Extension 0 80,155 80,155 84,065 84,065 84,065
Percentage Rent 19,951 27,206 34,679 42,377 50,305 58,471
"Free" Rent 0 0 0 0 0 0
Share of RE Taxes 21,833 21,833 21,833 21,833 21,833 21,833
Base Rent:
Current Lease $76,245 $0 $0 $0 $0 $0
Lease Extension 0 80,155 80,155 84,065 84,065 84,065
Percentage Rent 19,951 27,206 34,679 42,377 50,305 58,471
"Free" Rent 0 0 0 0 0 0
Share of RE Taxes 21,833 21,833 21,833 21,833 21,833 21,833

Case 2 - State 0 Main - Part I - Pro Forma - Students' Version - 24

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Case 2 - State 0 Main - Part I - Pro Forma - Students' Version - 24

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Real Estate Investments I

Case #2: State & Main - Part I

Location: State & Main

Building Size: 94,022 s.f.

Parcel Size: +/- 8.11 acres (353,446 square feet)

Parking Spaces: 505 5.37 :1 Ratio

Age: Originally constructed in 2013

Current Occupancy: 57.34%

Vacant SF: 40,109 s.f.

Calendar 2024 Pro Forma

Educational Illustration Only

% of Prorata Lease Base Rent Expense Recoveries Overage Gross

REVENUE EXPENSES & NOI

% of Prorata Lease Base Rent Expense Recoveries Overage Gross

Calendar 2024 Pro-Forma

Educational Illustration Only

2 Available 11,180 11.89% $0 $0.00

3 Available 12,866 13.68% $0 $0.00

Y3-5 $21.50 In-CAM In-CAM

1/1/24 $75,465 $6,289 $19.50 Y2 $21.00 In-CAM In-CAM

1/1/25 $77,400 $6,450 $20.00 Y3 $21.50

7 Available 1,720 1.83% $0 $0.00

1/1/27 $32,940 $2,745 $13.50

1/1/28 $34,160 $2,847 $14.00

1/1/24 $18,249 $1,521 $18.25 In-CAM In-CAM

1/1/25 $18,500 $1,542 $18.50

1/1/26 $18,750 $1,563 $18.75

1/1/27 $19,000 $1,583 $19.00

1/1/25 $30,500 $2,542 $12.50 $412,000 In-CAM In-CAM

1/1/26 $31,720 $2,643 $13.00 $424,360

1/1/27 $32,940 $2,745 $13.50 $437,090

1/1/28 $34,160 $2,847 $14.00 $450,203

1/1/25 $24,833 $2,069 $19.25 In-CAM In-CAM

1/1/26 $25,800 $2,150 $20.00

1/1/24 $40,635 $3,386 $13.50 Y2 $16.50 In-CAM In-CAM

Tenant recently relocated from space 20 to space 16. In-CAM In-CAM

18 Available 11,083 11.79% $0 $0.00

20 Available 3,260 3.47% $0 $0.00

Unit effective as of the Rent ChangeSize

1/1/28 $53,391 $4,449 $13.00

1/1/29 $54,418 $4,535 $13.25

1/1/30 $55,445 $4,620 $13.50

1/1/31 $56,471 $4,706 $13.75

1/1/29 $112,954 $9,413 $17.71 $2,200,000 In-CAM In-CAM

Total 94,022 100%

2022 2023 CY 2024 CY 2024

Total Gross Income 1,527,962 1,657,253 1,142,801 1,932,976

Net Operating Income $936,925 $1,094,514 $589,208 $1,276,153

Cap Rate Matrix

Educational Illustration Only

2022 2023 CY 2024 CY 2024

HVAC Repairs $0.22 21,000 $0.13 12,000 12,000 12,000 12,000

Repairs & Maintenance

Janitorial & Landscaping

Parking & Roads

Insurance $0.08 7,957 $0.09 8,537 8,537 8,537 8,537

Non Recoverable Expenses

Total Expenses $6.29 $591,037 $5.99 $562,739 $0 $562,739 $553,593 $570,383

Educational Illustration Only