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Mr . Robert Delaney <br /> Page 3 <br /> December 3, 1982 <br /> Gross Rent $261 ,645 x 7.0 GRM = $1 ,831 ,515 <br /> Excess Land Contribution - 4.5 Acres = 490,050 <br /> Market Approach Conclusion $2,321 ,565 <br /> REVISED INCOME APPROACH ( 12/3/82) <br /> The principal modification in the Income Approach has been to adjust <br /> the rentals from an average $4. 50 PSF to $5 .25 PSF. The Bus System <br /> Park and Fenced Storage rentals were also revised upward. <br /> Operating expenses developed a 16% ratio of effective gross income <br /> down 2% from the previous report . The principal reason for the <br /> reduction in the ratio is property taxes . The property taxes have <br /> been reduced by the Garfield County Assessor to coincide with a <br /> corrected land area. Property taxes reported in the previous report <br /> reflected a larger land area in the Assessor's calculations. <br /> The Capitalization Rate has been revised to reflect financing at a <br /> 14.75% interest rate, which is up 2.75% from the earlier report. <br /> Gross Income: <br /> Mine Services Building - 16,350 SF x $5.25 PSF = $ 85,837 <br /> Truck Terminal Building - 19,780 SF x $5.25 PSF = 103, 845 <br /> Bus System Storage - 91 ,908 SF x $.40 PSF = 36,763 <br /> Fenced Storage - 176,000 SF x $.20 PSF = 35,200 <br /> Gross Income Estimate $261 ,645 <br /> Less Vacancy and Collection Loss (7.5%) $-19 z623 <br /> Effective Gross Income $242,022 <br /> Operating Expenses: <br /> Taxes $ 15,000 <br /> Insurance 4,000 <br /> Maintenance ( .20 PSF) 71226 <br /> Management (5%) 122119 <br /> Total Expenses $ 38,345 $ 38L345 (16%) <br /> Net Income to Real Estate $203, 677 <br />