PropCalc Pro
Retail CRE Underwriting
๐ Terramere Plaza โ Arlington, IL
Purchase Price
$5.80M
going-in
Equity to Raise
$3.77M
total capital
As-Is NOI
$302,701
operating
Going-In Cap
7.70%
as-is / price
Stabilized Cap
7.31%
vacancy-adj.
Break-Even Occ.
71.4%
covers DS+OpEx
Yield on Cost
4.97%
NOI/total cost
DSCR
1.71x
debt coverage
Levered IRR
14.1%
equity return
LP Equity Multiple
1.82x
7-yr hold
Deal Overview
Terramere Plaza ยท as-is snapshot
Sources of Capital
Senior Loan Amount$2,320,000
Seller Carry$0
Total Equity Raised$3,770,000
TOTAL SOURCES$6,090,000
Uses of Capital
Purchase Price$5,800,000
Acquisition Fee (1%)$58,000
Deal Costs (Closing/DD/Loan)$145,000
Initial Reserves$87,000
Yr1 TI/LC Shortfall$0
Memo: Initial CapEx$100,000
TOTAL PROJECT COST$6,090,000
TOTAL EQUITY TO RAISE$3,770,000
Gross Rent (Annual)
$699,610
Total Recoveries
$73,522
Effective Gross Income
$734,475
Total OpEx (incl. Mgmt)
($431,774)
Net Operating Income
$302,701
Valuation NOI (5% vac)
$287,566
Annual Debt Service
($185,200)
Cash Flow Pre-Tax
$117,501
Cash-on-Cash Yr1
3.12%
Yield on Cost
4.97%
DSCR
1.71x
Debt Yield
13.1%
Break-Even Occupancy
71.4%
LTV at Closing
40.0%
Price / SF
$140.97
Loan Summary
| Loan Amount | $2,320,000 |
| Rate / Amort | 6.25% / 25yr |
| Monthly Payment | $15,433 |
| Annual Debt Service | $185,200 |
Depreciation Reference
| Est. Building Value (80%) | $4,640,000 |
| Straight-Line (39yr) | $118,974/yr |
| Consult tax advisor. Actual treatment varies by cost segregation, bonus/accelerated depreciation elections, and individual investor tax position. | |
Rent Roll
Click any cell to edit ยท 25 suite capacity
Full Rent Roll
Summary Mode
Hybrid Mode
| Suite | Tenant | SF | Base Rent/yr | Mo. Rent | Ann. Rec. | Lease Type | Lease End | Mo. Until Exp. | Mo. Until Incr. | Incr. Freq (mo) | Ann. Incr. % | % of Recov. | Rent/SF | Options |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| TOTAL (25 suites) | 41,147 SF | $699,610 | $58,301 | $73,522 | ||||||||||
Tenant Renewal Assumptions
25 rows ยท Suite & Tenant auto-populate from Rent Roll ยท probability-weighted TI/LC/downtime
| Suite | Tenant | Mkt Rent PSF | Renewal Prob. | Downtime (mo) | New TI $/SF | New LC % | New Lease (yr) | Renewal TI $/SF | Renewal LC % | On Renewal: Escalation | On Renewal: Lease Type |
|---|
Operating Expenses
20-line itemized or summary ยท REA income = negative entry
Itemized (20-line)
Summary Entry
Enter expenses exactly as shown in the OM or due diligence materials. These are the seller's historical figures and serve as your baseline. The Pro Forma grows these forward at your expense growth rate assumption. REA income should be entered as a negative number (credit). Management fee โ if included by the seller โ enter it here and toggle the reconciliation option in the sidebar.
| Expense Item | Annual Amount | $/SF |
|---|---|---|
| Total Operating Expenses (Seller's Data) | $395,050 | $9.60 |
10-Year Project Pro Forma
Annual summary ยท 7-year hold ยท vacancy factor for valuation only
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 โ | Year 8 | Year 9 | Year 10 | |
|---|---|---|---|---|---|---|---|---|---|---|
| INCOME | ||||||||||
| Gross Potential Rent (GPR) | $699,610 | $720,598 | $742,216 | $764,482 | $787,417 | $811,039 | $835,370 | $860,431 | $886,244 | $912,831 |
| Expense Recoveries (CAM/Tax/Ins) | $73,522 | $74,992 | $76,492 | $78,022 | $79,582 | $81,174 | $82,797 | $84,453 | $86,142 | $87,865 |
| Potential Total Income | $773,132 | $795,590 | $818,708 | $842,504 | $866,999 | $892,213 | $918,167 | $944,884 | $972,386 | $1,000,696 |
| General Vacancy (5% โ valuation only) | [n/a cash] | [n/a cash] | [n/a cash] | [n/a cash] | [n/a cash] | [n/a cash] | [n/a cash] | [n/a cash] | [n/a cash] | [n/a cash] |
| Effective Gross Income (EGI) | $773,132 | $795,590 | $818,708 | $842,504 | $866,999 | $892,213 | $918,167 | $944,884 | $972,386 | $1,000,696 |
| OPERATING EXPENSES | ||||||||||
| Mgmt Fee โ Buyer (5% EGI) | ($38,657) | ($39,780) | ($40,935) | ($42,125) | ($43,350) | ($44,611) | ($45,908) | ($47,244) | ($48,619) | ($50,035) |
| Less: Seller Mgmt Fee in OpEx | $21,754 | $21,754 | $21,754 | $21,754 | $21,754 | $21,754 | $21,754 | $21,754 | $21,754 | $21,754 |
| Net Mgmt Fee Adjustment | ($16,903) | ($18,026) | ($19,181) | ($20,371) | ($21,596) | ($22,857) | ($24,154) | ($25,490) | ($26,865) | ($28,281) |
| Total Operating Expenses (from OpEx table) | ($395,050) | ($402,951) | ($411,010) | ($419,230) | ($427,615) | ($436,167) | ($444,891) | ($453,788) | ($462,864) | ($472,121) |
| Total OpEx (incl. net mgmt adj.) | ($411,953) | ($420,977) | ($430,191) | ($439,601) | ($449,211) | ($459,024) | ($469,045) | ($479,278) | ($489,729) | ($500,402) |
| NET OPERATING INCOME (NOI) | $361,179 | $374,613 | $388,517 | $402,903 | $417,788 | $433,189 | $449,122 | $465,606 | $482,657 | $500,294 |
| ๐ Implied Property Value (NOI รท Exit Cap) | $4,815,720 | $4,994,840 | $5,180,227 | $5,372,040 | $5,570,507 | $5,775,853 | $5,988,293 | $6,208,080 | $6,435,427 | $6,670,587 |
| Valuation NOI (5% vacancy adj.) | $343,120 | $355,882 | $369,091 | $382,758 | $396,899 | $411,530 | $426,666 | $442,326 | $458,524 | $475,279 |
| LTV (Loan Balance รท Implied Value) | 47.8% | 45.9% | 44.2% | 42.4% | 40.6% | 38.8% | 37.1% | 35.4% | 33.7% | 32.0% |
| CAPITAL EXPENDITURES | ||||||||||
| Tenant Improvements (TI) | $0 | $0 | ($112,500) | ($56,250) | ($38,000) | $0 | $0 | $0 | $0 | $0 |
| Leasing Commissions (LC) | $0 | $0 | ($44,902) | ($22,451) | ($15,600) | $0 | $0 | $0 | $0 | $0 |
| Initial CapEx (Renovation) | ($100,000) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Capital Costs | ($100,000) | $0 | ($157,402) | ($78,701) | ($53,600) | $0 | $0 | $0 | $0 | $0 |
| CASH FLOW BEFORE DEBT | $261,179 | $374,613 | $231,115 | $324,202 | $364,188 | $433,189 | $449,122 | $465,606 | $482,657 | $500,294 |
| FINANCING | ||||||||||
| Senior Debt Service (P+I) | ($185,200) | ($185,200) | ($185,200) | ($185,200) | ($185,200) | ($185,200) | ($185,200) | ($185,200) | ($185,200) | ($185,200) |
| Seller Carry Payment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| NET CASH FLOW | $75,979 | $189,413 | $45,915 | $139,002 | $178,988 | $247,989 | $263,922 | $280,406 | $297,457 | $315,094 |
| RESERVES & DISTRIBUTIONS | ||||||||||
| Replacement Reserves ($/SF/yr) | ($41,147) | ($41,147) | ($41,147) | ($41,147) | ($41,147) | ($41,147) | ($41,147) | ($41,147) | ($41,147) | ($41,147) |
| Bank Covenant Funding | ($0) | ($0) | ($0) | ($0) | ($0) | ($0) | ($0) | ($0) | ($0) | ($0) |
| Asset Management Fee (GP) | ($87,000) | ($87,000) | ($87,000) | ($87,000) | ($87,000) | ($87,000) | ($87,000) | ($87,000) | ($87,000) | ($87,000) |
| Cash Available for Distribution | ($52,168) | $61,266 | ($82,232) | $10,855 | $50,841 | $119,842 | $135,775 | $152,259 | $169,310 | $186,947 |
| ENDING CASH BALANCE (Reserves Accumulated) | ||||||||||
| Annual Addition to Cash Balance | $41,147 | $41,147 | $41,147 | $41,147 | $41,147 | $41,147 | $41,147 | $41,147 | $41,147 | $41,147 |
| Ending Cash Balance (EOY) | $128,147 | $169,294 | $210,441 | $251,588 | $292,735 | $333,882 | $375,029 | $416,176 | $457,323 | $498,470 |
| LOAN BALANCES (EOY) | ||||||||||
| Senior Loan Balance | $2,281,500 | $2,240,800 | $2,197,800 | $2,152,400 | $2,104,500 | $2,053,900 | $2,000,500 | $1,944,100 | $1,884,500 | $1,821,600 |
| Seller Carry Balance | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| REFINANCE ANALYSIS | ||||||||||
| Refi Valuation (Valuation NOI รท Cap) | โ | โ | $4,921,213 | โ | โ | โ | โ | โ | โ | โ |
| New Loan Amount (55% LTV) | โ | โ | $2,706,667 | โ | โ | โ | โ | โ | โ | โ |
| Old Loan Payoff | โ | โ | ($2,197,800) | โ | โ | โ | โ | โ | โ | โ |
| Net Refi Proceeds โ Investors | โ | โ | $508,867 | โ | โ | โ | โ | โ | โ | โ |
| EXIT ANALYSIS (Year 7 Hold) | ||||||||||
| Gross Sale Price (NOI รท Exit Cap) | โ | โ | โ | โ | โ | โ | $5,988,293 | โ | โ | โ |
| Selling Costs (6%) | โ | โ | โ | โ | โ | โ | ($359,298) | โ | โ | โ |
| Final Loan Payoff | โ | โ | โ | โ | โ | โ | ($2,000,500) | โ | โ | โ |
| + Ending Cash Balance Returned | โ | โ | โ | โ | โ | โ | $375,029 | โ | โ | โ |
| TOTAL DISTRIBUTABLE POOL (Sale) | โ | โ | โ | โ | โ | โ | $4,003,524 | โ | โ | โ |
Returns & Equity Waterfall
All invested capital = LP capital ยท GP earns promote + admin fee only
LP IRR
14.1%
levered equity return
LP Equity Multiple
1.82x
total return on capital
Avg Annual Return
11.7%
annualized ยท 7-yr hold
Unlevered IRR
11.4%
project-level pre-debt
Annual Distribution Detail
| Yr 0 | Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 | Yr 6 | Yr 7 โ | Total | |
|---|---|---|---|---|---|---|---|---|---|
| EQUITY & CASH FLOWS | |||||||||
| Total Project Equity (LP Capital) | ($3,770,000) | โ | โ | โ | โ | โ | โ | โ | ($3,770,000) |
| Cash Available for Distribution (CAD) | โ | ($52,168) | $61,266 | $45,915 | $10,855 | $50,841 | $119,842 | $135,775 | $372,326 |
| Capital Event Proceeds (Refi Yr3 + Sale Yr7) | โ | โ | โ | $508,867 | โ | โ | โ | $4,003,524 | $4,512,391 |
| PREFERRED RETURN TRACKING (LP only ยท 6% on outstanding capital balance) | |||||||||
| Beginning Capital Balance | โ | $3,770,000 | $3,770,000 | $3,770,000 | $3,261,133 | $3,261,133 | $3,261,133 | $3,261,133 | โ |
| Pref Accrued This Year (6%) | โ | $226,200 | $226,200 | $226,200 | $195,668 | $195,668 | $195,668 | $195,668 | $1,461,272 |
| Pref Paid from Operating CAD | โ | ($0) | $61,266 | $45,915 | $10,855 | $50,841 | $119,842 | $135,775 | $424,494 |
| Unpaid Pref Accumulator (Beginning of Year) | โ | $0 | $226,200 | $391,134 | $0 | $0 | $0 | $0 | โ |
| Pref Paid from Capital Events | โ | โ | โ | $508,867 | โ | โ | โ | $718,494 | $1,227,361 |
| Unpaid Pref Accumulator (End of Year) | โ | $226,200 | $391,134 | $0 | $0 | $0 | $0 | $0 | โ |
| TARGET RETURN CATCHUP (hard hurdle ยท capital events only ยท applies if Target % > Pref %) | |||||||||
| Catchup Accrued This Year | โ | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Catchup Paid from Capital Events | โ | โ | โ | $0 | โ | โ | โ | $0 | $0 |
| Target % = Pref % (6% = 6%) ยท No catchup in this scenario ยท Would activate if Target > Pref | |||||||||
| RETURN OF CAPITAL (LP ยท 100% ยท after pref + catchup satisfied) | |||||||||
| Cash Applied to Return of Capital | โ | โ | โ | $0 | โ | โ | โ | $3,261,133 | $3,261,133 |
| Ending Capital Balance Outstanding | โ | $3,770,000 | $3,770,000 | $3,261,133 | $3,261,133 | $3,261,133 | $3,261,133 | $0 | โ |
| LP/GP PROMOTE SPLIT (remaining cash after pref + catchup + capital return) | |||||||||
| Remaining Operating Cash to Split | โ | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Remaining Capital Event Cash to Split | โ | โ | โ | $0 | โ | โ | โ | $23,897 | $23,897 |
| Total Cash Available for Split | โ | $0 | $0 | $0 | $0 | $0 | $0 | $23,897 | $23,897 |
| LP Share (25%) | โ | $0 | $0 | $0 | $0 | $0 | $0 | $5,974 | $5,974 |
| GP Share (75%) | โ | $0 | $0 | $0 | $0 | $0 | $0 | $17,923 | $17,923 |
| TOTAL LP DISTRIBUTIONS | |||||||||
| TOTAL LP DISTRIBUTION | ($3,770,000) | $0 | $61,266 | $554,782 | $10,855 | $50,841 | $119,842 | $4,121,376 | $1,148,962 |
LP Summary
LP Return Summary
| Total Capital Invested | $3,770,000 |
| Total Capital Returned | $3,770,000 |
| Total Pref + Profits Paid | $1,657,829 |
| Total LP Cash Distributions | $5,427,829 |
| LP IRR | 14.1% |
| LP Equity Multiple | 1.82x |
| Avg Annualized Return | 11.7% |
GP Compensation Summary
| Acquisition Fee (Yr 0) | $58,000 |
| Annual AM Fee ร 7 years | $609,000 |
| GP Share of Operating CAD | $0 |
| GP Share of Capital Events | $17,923 |
| Total GP Cash Flow | $684,923 |
| GP Avg Annual Revenue | $97,846 |
Exit Cap Rate Sensitivity
Investor View
Individual investor returns ยท enter any investment amount to see their specific picture
Investor Details
$
Ownership of LP Pool: 2.65% ย ยทย Total LP Pool: $3,770,000
Investor IRR
14.1%
Equity Multiple
1.82x
Total Distributions
$182,000
Avg Annual Return
11.7%
Return Breakdown โ Sample Investor ($100,000)
| Capital Invested | ($100,000) |
| Total Capital Returned | $100,000 |
| Total Preferred Return Paid | $43,951 |
| Share of Promote (LP %) | $159 |
| Total Distributions | $182,000 |
| Net Profit | $82,000 |
Note โ Sponsor as LP Investor
If a sponsor invests their own capital into the deal, they participate in the LP pool proportionally to their investment โ shown above. Their GP promote and admin fee are separate and additional to their LP return. Use the GP Compensation summary on the Returns & Waterfall tab to show the full GP picture alongside this LP view.
Stress Test โ Sensitivity Analysis
Select any two variables ยท output metric of your choice ยท base case highlighted
โ
Base case highlighted. Green = better than base case. Orange = within 15% of base case. Red = materially worse. Engine-driven values will populate once math engine is live โ current values are illustrative.
Presentation Summary
Investor-ready deal overview ยท export to PDF with options
Terramere Plaza
Arlington, IL ยท Retail Strip Center ยท 41,147 SF ยท 21 tenants
Prepared by Rychen Jones ยท 02/18/2026
Purchase Price
$5,800,000
Going-In Cap Rate
7.70%
Levered IRR (7-yr)
14.1%
Investment Highlights
โฆ 89.3% occupied neighborhood retail center ยท 21-tenant mix
โฆ Dunkin' NNN anchor provides cash flow stability
โฆ 3 vacant suites represent near-term value-add upside
โฆ Conservative 40% LTV ยท 1.71x DSCR ยท 71.4% break-even occupancy
โฆ Year 3 refi returns $508,867 to investors ยท reduces cost basis
โฆ 7-year exit at 7.5% cap ยท $5.99M gross sale price
โฆ Dunkin' NNN anchor provides cash flow stability
โฆ 3 vacant suites represent near-term value-add upside
โฆ Conservative 40% LTV ยท 1.71x DSCR ยท 71.4% break-even occupancy
โฆ Year 3 refi returns $508,867 to investors ยท reduces cost basis
โฆ 7-year exit at 7.5% cap ยท $5.99M gross sale price
LP Return Summary
| Total Equity Raised | $3,770,000 |
| Unlevered Project IRR | 11.4% |
| Levered IRR | 14.1% |
| LP Equity Multiple | 1.82x |
| LP Avg. Annualized Return | 11.7% |
| Year 3 Refi Proceeds to Investors | $508,867 |
| Total Distributable Pool at Sale | $4,003,524 |
Generated by PropCalc Pro ยท For informational purposes only ยท Forward-looking projections involve inherent uncertainty ยท Consult qualified financial and legal advisors before making investment decisions