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November 26, 2014
<br /> 9.A. - Page 24 icentive Zoning/Community Benefits Program Page 8
<br /> Figure 4 Mid-Rise Office Center Analysis
<br /> DEVELOPMENT PROGRAM ASSUMPTIONS
<br /> Site(Square Feet) 75,000
<br /> FAR 4.0
<br /> Gross Building Area(Square Feet) 300,000
<br /> Rentable Area(Square Feet) 90% of GBA 270,000
<br /> Structured Parking Spaces 900
<br /> Suface Parking Spaces 0
<br /> BUILDING VALUE
<br /> Gross Potential Rent(FS) $6.25 per SF/Month $20,250,000
<br /> Losses to Vacancy 5.0% of GPR -$1,012,500
<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 $19,237,500
<br /> Operating Expenses $2.00 per SF/Month -$6,480,000
<br /> Net Operating Income $12,757,500
<br /> Building Value 6.00% Capitalization Rate $212,625,000
<br /> Disposition Cost 3.0% of Building Value -$6,378,750
<br /> Net Building Value $206,246,250
<br /> PROJECT COSTS
<br /> Construction Costs
<br /> Basic Site Work $20 per site SF $1,500,000
<br /> Building Direct Cost $260 Cost/SF(GBA) $78,000,000
<br /> Structured Parking Direct Cost $20,000 per Space $18,000,000
<br /> Total Construction Cost $97,500,000
<br /> Soft Costs
<br /> Architecture and Engineering 1.0% of Construction Cost $975,000
<br /> Other Professional Services 1.0% of Construction Cost $975,000
<br /> Permits and Fees $13 per Square Foot(GBA) $3,900,000
<br /> Taxes and Insurance 2.0% of Construction Cost $1,950,000
<br /> Financing 4.0% of Construction Cost $3,900,000
<br /> Marketing/Leasing 3.0% of 10-Year Lease Value $5,771,250
<br /> Developer Fee(overhead) 4.0% of Construction Cost $3,900,000
<br /> Total Soft Costs $21,371,250
<br /> Other Project Costs
<br /> Development Contingency 10.0% of Hard and Soft Costs $11,887,125
<br /> Land Cost 20.0% of Building Value $42,525,000
<br /> Developer ROI 10.0% of All Project Costs $17,328,338
<br /> Total Other Costs $71,740,463
<br /> Total Project Cost $190,611,713
<br /> COMMUNITY BENEFITS
<br /> Estimate of Potential Community Benefits Value $15,634,538
<br /> Per Square Foot(GBA) $52.12
<br /> P:\141000s\141053RedwoodCity\Deliverable\Financial Analysis Memo 11 2614.docx
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