Feasibility Report for Prototype Plans for a Multi-Storey Manufacturing Plant in the South End Urban Renewal Area

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TOTAL COST $2,130,000.
Project Cost Not Including Land - $14.80/sq. ft.
- 74 OPTIMUM EXPENSE ANALYSIS Mortgage - $2,340,000 at 5-3/4% for 20 years - 8.5 constant $190,000.
Operating Cost - heat, power, repairs § maintenance at $l/sq.ft. 144,000.
Management § Brokerage 20,000.
Taxes @ 231 of gross revenue 75,000.
Total Expenses Not Including Land $429,000.
Land Value - $128,000 x 6% ($2/sq. ft.) 7,700.
Total Including Land $436,700.
Proposed Rent - $3.05/sq. ft.
- 75 NOTES TO EXPENSE ANALYSIS Mo
...rtgage It is assumed that the developer would be able to obtain a mortgage equivalent to 100% of his project cost with the land providing the equity.
This might be the equivalent of 90% conventional financing.
Operating Gost Experience indicates that a typical operating cost for this type of building including heat, power, repairs and maintenance is $l/sq. ft. To show the range, however, on the minimum expense analysis we have adjusted this figure to 50* a foot.
Management S Brokerage On any multi-tenanted building there will be a continuing management responsibility and also a continued brokerage responsibility as vacancies occur.


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