Pathways

to Community Ownership - Net Operating Income

Annual Income from Rents
Family Dollar
RCC
19,000 remaining square feet
Annual max income
Revenue lost to vacancy
Gross income from rents

$39,680.00
$24,000.00
$140,600.00
$204,280.00
-$32,560.00
$171,720.00

Annual Expenses
Management
Insurance
Maintenance
Utilities
Taxes
Reserves
Total expenses

$8,586.00
$7,920.00
$39,600.00
$8,800.00
$0.00
$15,400.00
$80,306.00

Net Operating Income before Debt Service

$91,414.00

Assumptions
Sq footage of grocery store/comm'y space
Grocery store rent per yr
Family Dollar sq footage
Family Dollar rent per yr
Total sq footage of center
Remaining sq footage
Annual sq ft rental price
Vacancy rate
management costs
Insurance per sq ft
Maintenance per sq ft
Utilities per sq ft
Reserve per sq ft
Fund for Democratic Communities

15,000
$24,000.00
10,000
$40,000.00
44,000
19,000
$7.40
10%
5%
$0.18
$0.90
$0.20
$0.35

If community owns as a non-profit land trust, then no taxes due. Otherwise $26,184

see assumptions used by New bessemer Associates in 5/20 submission

likely given long-term leases signed by Family Dollar and RCC
see assumptions used in Michael Watts 4/23 report to City
see assumptions used in Michael Watts 4/23 report to City
see assumptions used in Michael Watts 4/23 report to City
see assumptions used in Michael Watts 4/23 report to City
see assumptions used in Michael Watts 4/23 report to City
f4dc.org

Pathways to Community Ownership - 3 scenarios

Scenario 1
$1,900,000
5
2018
40
2058
2058
$400,000
$250,000
$150,000
$1,500,000
$800,000
$700,000
$91,414

Scenario 2
$1,900,000
10
2023
15
2038
2038
$950,000
$800,000
$150,000
$950,000
$500,000
$450,000
$91,414

Scenario 3
$1,900,000
10
2023
20
2043
N/A
$950,000
$800,000
$150,000
$950,000
$950,000
$0
$91,414

Annual Debt Service

Years 1-15
Years 16-20
Years 21-40

$58,174
$58,174
$35,000

$74,381
$0
$0

$69,082
$69,082
$0

Annual NOI after debt service

Years 1-15
Years 16-20
Years 21-40

$33,240
$33,240
$56,414

$17,033
$91,414
$91,414

$22,332
$22,332
$91,414

Accumulated Cash relative to purchase date

Year 5
Year 10
Year 20
Year 40

$166,200
$332,399
$664,798
$1,793,078

$85,164
$170,327
$712,561
$2,997,911

$111,661
$223,323
$446,646
$2,274,926

Accumulated cash by year

2023
2028
2038
2058

$166,200
$332,399
$664,798
$1,793,078

$0
$85,164
$255,491
$2,540,841

$0
$111,661
$334,984
$1,817,856

Purchase Price of Shopping center

Years to save down payment
Year of purchase
Years to pay off (Term)
Year paid off
Last year City is owed money
Initial Equity Stake
Amount of down payment from RCC
Amount of down payment - other sources
Amount of Financing Needed
Financing from Self Help @ 4%
Financing from City @ 0%
Annual NOI before debt service

Fund for Democratic Communities

f4dc.org