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MNov. "
<br /> Redwood City Incentive Zoning/Community Benefits Program 9.A. - Page 23
<br /> Figure 3 Low-Rise Office/Flex Pro Forma Analysis
<br /> DEVELOPMENT PROGRAM ASSUMPTIONS
<br /> Site(Square Feet) 185,000
<br /> FAR 0.5
<br /> Gross Building Area(Square Feet) 92,500
<br /> Rentable Area(Square Feet) 90% of GBA 83,250
<br /> Structured Parking Spaces 0
<br /> Suface Parking Spaces 231
<br /> BUILDING VALUE
<br /> Gross Potential Rent(FS) $3.00 per SF/Month $2,997,000
<br /> Losses to Vacancy 5.0% of GPR -$149,850
<br /> Collection Losses 0.0% of GPR $0
<br /> Losses to Concessions 0.0% of GPR $0
<br /> Other Revenue(Parking) $0 per Space/Month $0
<br /> Gross Revenue $2,847,150
<br /> Operating Expenses $1.00 per SF/Month -$999,000
<br /> Net Operating Income $1,848,150
<br /> Building Value 6.00% Capitalization Rate $30,802,500
<br /> Disposition Cost 3.0% of Building Value -$924,075
<br /> Net Building Value $29,878,425
<br /> PROJECT COSTS
<br /> Construction Costs
<br /> Basic Site Work $20 per site SF $3,700,000
<br /> Building Direct Cost $180 Cost/SF(GBA) $16,650,000
<br /> Structured Parking Direct Cost $20,000 per Space $0
<br /> Total Construction Cost $20,350,000
<br /> Soft Costs
<br /> Architecture and Engineering 6.0% of Construction Cost $1,221,000
<br /> Other Professional Services 6.0% of Construction Cost $1,221,000
<br /> Permits and Fees $13 per Square Foot(GBA) $1,202,500
<br /> Taxes and Insurance 2.0% of Construction Cost $407,000
<br /> Financing 4.0% of Construction Cost $814,000
<br /> Marketing/Leasing 3.0% of 10-Year Lease Value $854,145
<br /> Developer Fee(overhead) 4.0% of Construction Cost $814,000
<br /> Total Soft Costs $6,533,645
<br /> Other Project Costs
<br /> Development Contingency 10.0% of Hard and Soft Costs $2,688,365
<br /> Land Cost 20.0% of Building Value $6,160,500
<br /> Developer ROI 10.0% of All Project Costs $3,573,251
<br /> Total Other Costs $12,422,115
<br /> Total Project Cost $39,305,760
<br /> COMMUNITY BENEFITS
<br /> Estimate of Potential Community Benefits Value -$9,427,335
<br /> Per Square Foot(GBA) -$101.92
<br /> P:\141000s\141053RedwoodCity\Deliverable\Financial Analysis Memo 11 2614.docx
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