RDA Reso 2000-025 - Laserfiche WebLink

Home

• Indirect costs (exclusive of financing costs) are estimated at approximately 54,291,000, or $21 per square foot of rentable area, and include architecture and engineering, insurance, bonds, estimated fees and permits, DFSUundergrounding fees, general administrative expenses, and leasing commissions. ▪ The financing cost estimates are based on 524.74 million in construction financing at 10.0% for 15 months, and financing fees of 2.0 points. The financing cost, including fees, is projected to be approximately 52238,800. As can be seen in Table 1, direct costs are estimated at approximately 521,266,000 and indirect and financing costs at 56,579,800, for a total cost, excluding land costs and Developer profit, of $27,845,300. B. Net Income Table 2 presents the projected net operating income for the Project. The income assumptions used are based upon discussions of lease terms provided by the Developer. In addition, it is assumed that the layout and size of the tenancies must be in accordance with the proposed Conceptual Site Plan. The major assumptions behind the rental estimates are as follows: ▪ The Developer has negotiated a lease with a key office tenant for two of the three buildings (Buildings A and C) at S27 /sq.ft. per year full service (52.25 /sq.ft. per month); • Estimated rental income of 52320 / sq.ft. per year (full service) for the remaining office tenants in Building B (52.35 per sq.ft. per month); and ▪ Estimated rental income of $24 /sq.ft. per year (triple net) for the 2,700 sq.ft. restaurant (52.00 per sq.ft. per month). • In regards to the projected net income, generally speaking, downtown San Leandro area is untested for construction of a multi -story Class A office building. More specifically, the Corporation Yard site itself has been vacant for more than 10 years and the last multi -story building in this area was developed approximately 10 years ago. The projected rent at 527 per sq.ft. full service is based on an executed lease with a key tenant that will occupy 146,332 sq.ft. of net rentable area comprising more than three - quarters of the rentable office space (146,832 sq.ft. out of 194,000 sq.ft.). The commitment of this tenant is critical to the Project being financed. Also, the projected rent at 528.20 for the third building (Building B) is based on the Developer's projection of market rents and seems reasonable. Therefore, we have accepted the Developer's projection of rents. 290 Keyser Marston Associates, Inc. 19096.026 \002- 001.doc Page 12