Commercial Mortgage Model Strictly Confidential

Rent Roll
Analysis
Risk Rating
Pricing

Notes
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© Corporate Finance Institute®. All rights reserved.

Rent Roll

Tenant Leased Area Lease Lease

Unit # Tenant Type (sqft) Type Term (yrs)
101 National Corp. 101 National 3,339 Triple Net 10
102 Regional Corp. 102 Regional 1,696 Triple Net 5
103 Local Corp. 103 Local 1,487 Triple Net 3
104 Local Corp. 104 Local 868 Triple Net 5
201 Regional Corp. 201 Regional 2,363 Triple Net 15
202 Regional Corp. 202 Regional 1,407 Triple Net 3
203 Local Corp. 203 Local 2,792 Triple Net 4
204 Local Corp. 204 Local 1,879 Triple Net 3

15,831
 Expiry Months Left Lease Rate Annual Rental Recoveries Annual Annual Other
Date On Lease ($/sqft) Income ($/sqft) Recoveries income
Jul/31/2026 66 $27.25 $90,987.75 $8.40 $28,047.60 $0.00
Feb/28/2025 49 $25.75 $43,672.00 $8.40 $14,246.40 $0.00
Oct/31/2022 21 $23.50 $34,944.50 $8.40 $12,490.80 $0.00
May/31/2023 28 $24.00 $20,832.00 $8.40 $7,291.20 $0.00
Jun/30/2031 125 $27.75 $65,573.25 $8.40 $19,849.20 $331.00
Apr/30/2022 15 $23.00 $32,361.00 $8.40 $11,818.80 $0.00
Jul/30/2023 30 $23.75 $66,310.00 $8.40 $23,452.80 $0.00
Apr/30/2023 27 $23.25 $43,686.75 $8.40 $15,783.60 $0.00
0 $0.00 $0.00
0 $0.00 $0.00
0 $0.00 $0.00
0 $0.00 $0.00
0 $0.00 $0.00
0 $0.00 $0.00
0 $0.00 $0.00
$25.16 $398,367.25 $8.40 $132,980.40 $331.00
Total Annual Tenant Inducements
Income & Comments
$119,035.35
$57,918.40
$47,435.30
$28,123.20
$85,753.45
$44,179.80
$89,762.80
$59,470.35
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$531,678.65
© Corporate Finance Institute®. All rights reserved.

Analysis Date: 1/30/2021 Borrower:

Property Description Comments

Property Type Multi-Family Residential
Land Use Classification NA Per Appraisal
Zoning NA Per Appraisal
Year Built 2000
Actual Age 21 Years Current Year - Built In Year
Effective Age 20 Years
Economic Life 50 Years
Remaining Economic Life 29 Years Economic Life - Actual Age
Level of Deferred Maintenance Per Appraisal
Location Based on census metropolitan population data

Land Size Comments

Land Size 24453 Sqft Per Appraisal
Net Rentable Area 15831 Sqft Should mirror rent roll rentable area.

Proposed Loan Terms Comments

Loan Amount
Payments per Year 12
Amortization 300 Months
Amortization should be lower than the remaining economic life of the p
Test Interest Rate
interest rate is higher than actual rates extended to clients.
Term
Debt Service Obligation $0
Minimum DSCR 1.20

Calculations

Assumptions Debt Service Coverage Ratio Actual

Expense Normalization Base Rental Income $398,367
Vacancy Allowance 4.00% Recoveries $132,980
Repairs & Maintenance 3.00% Other $331
Management Fee 4.00% Gross Income $531,679
CAPEX Reserve 1.00% Vacancy (4%) $21,267
Actual Expenses Effective Gross Income $510,412
Total Expenses (per Income Statement) Operating Expenses $0
Depreciation & Amortization Repairs & Maintenance $0
Interest Management Fee $0
Actual Repairs & Maintenance CAPEX Reserve (1%) $0
Actual Management Fee Expense Sub Total $0
Loan-to-Value Assumptions Net Operating Income (NOI) $510,412
Market Cap Rate 5.00% Debt Service Obligation $0
Test Cap Rate 4.75% DSCR NA

Tenant Analysis

Tenant Quality $ Income % Income Sqft % Sqft % Wt.

Government $0 0.00% 0 0.00% 0.00%
National $119,035 22.39% 3,339 21.09% 22.39%
Regional $187,852 35.33% 5,466 34.53% 35.33%
Local $224,792 42.28% 7,026 44.38% 42.28%
Vacant $0 0.00% 0 0.00% 0.00%

Lease Maturity Vacant <1 Year 2 Years 3 Years 4 Years 5 Years

Annual Income 0.00% 0.00% 17.23% 33.36% 0.00% 10.89%
Sqft 0.00% 0.00% 18.28% 34.99% 0.00% 10.71%
Max Interest Term

Sensitivity Analysis

LTV (Actual NOI) LTV (Normalized NOI)

Cap Rate Property Value LTV Cap Rate Property Value LTV
4.00% $12,760,288 0.00% 4.00% $11,739,465 0.00%
4.50% $11,342,478 0.00% 4.50% $10,435,080 0.00%
5.00% $10,208,230 0.00% 5.00% $9,391,572 0.00%
LTV 5.50% $9,280,209 0.00% 5.50% $8,537,792 0.00%
Analysis
6.00% $8,506,858 0.00% 6.00% $7,826,310 0.00%
6.50% $7,852,485 0.00% 6.50% $7,224,286 0.00%
7.00% $7,291,593 0.00% 7.00% $6,708,265 0.00%
7.50% $6,805,487 0.00% 7.50% $6,261,048 0.00%
8.00% $6,380,144 0.00% 8.00% $5,869,732 0.00%

DSCR
Vacancy Rate Stabilized NOI DSCR
3.00% $474,895.37 #DIV/0!
5.00% $464,261.80 #DIV/0!
7.00% $453,628.22 #DIV/0!
DSCR 9.00% $442,994.65 #DIV/0!
Analysis
11.00% $432,361.08 #DIV/0!
13.00% $421,727.51 #DIV/0!
15.00% $411,093.93 #DIV/0!
17.00% $400,460.36 #DIV/0!
19.00% $389,826.79 #DIV/0!
 ABC Property Corp.

ABC Property Corp.

Revenue

Expenses

ion data

remaining economic life of the property. Test

Earnings Before Taxes
extended to clients.

Income Taxes

Net Earnings

Normalized Loan-to-Value (LTV) Actual Normalized

$398,367 Cap Rate 5.00% 4.75%
$132,980 Property Value @ NOI $10,208,230 $9,885,865
$331 NOI per Sqft (NRA) $32.24 $29.66
$531,679 Loan Amount $0 $0
$21,267 LTV 0.00% 0.00%
$510,412 Max Supportable Loan $10,633,573 $9,782,887
$0
$15,312
$20,416
$5,104
$40,833
$469,579
 $0
NA

Score
2.00
1.50
1.25
1.00
0.00

> 5 Years
38.52%
36.02%
53 Months
ABC Property Corp. 20X1
$USD

Revenue
Rental 398,759
Recoveries 132,920
531,679

Expenses
Advertising and Promotion 711
Depreciation 74,217
Insurance 977
Interest and Bank Charges 177
Interest on Long Term Debt 87,904
Management Fees 16,119
Professional Fees 108
Property Taxes 45,906
Repairs and Maintenance 12,368
Utilities 9,398
247,886

Earnings Before Taxes 283,793

Income Taxes 70,948

Net Earnings 212,845

Debt Service A B
NOI $200,000 $200,000
Min. DSCR 1.2 1.3
DSCR $166,667 $153,846
Interest Rate 5.0% 5.0%
Amortization 25 25
PV $2,348,991 $2,168,299
© Corporate Finance Institute. All rights reserved.

Risk Rating

Risk Rating Rating Input Rating

Tenant Quality 1.20 3
Lease Maturity 38.52% 4
Building Condition 0 na
Location 0 na
Cash Flow Coverage NA na
Guarantees & Access to Capital NA 6
Total
Risk Rating

Risk Rating Criteria Scorecard

Parameters 6 5
Tenant Quality <1.00 1.00
Lease Maturity 0% 20%
Building Condition Significant Deferrals -
Location Rural (<10,000) -
Cash Flow Coverage (DSCR) <1.00 1.00
Guarantees & Access to Capital No Guarantees <10% of Total Funded Debt

Notes on Environmental Condition:

No environmental contaminants, or PCAs identified. Phase I ESA will be included in this submission

Notes on Building Condition:

Building is in good condition, with nearly 30 years of projected economic life. Some deferred maintenance noted in appraisal and during s
with risk rating noted accordingly

Notes on Personal or Corporate Guarantees:

Guarantor has strong adjusted personal net worth of >6MM; statement of net worth will be included in this submission
 Wt. Rating Risk Rating
0.50 1 Very Low Risk
0.67 2 Low Risk
na 3 Moderate Risk
na 4 Cautionary
na 5 Unsatisfactory
1.00 6 Unacceptable
2.17
Low Risk (2)

Decision Rule
4 3 2
1.10 1.20 1.30
30% 40% 50%
Some Deferrals Nearly New -
Small Metro (10,000 - 100,000) Metro (100,000 - 1MM) -
1.15 1.35 1.55
10-30% of Total Funded Debt 30-50% of Total Funded Debt 50-70% of Total Funded Debt

sion

ntenance noted in appraisal and during sight visit,

ed in this submission
 Probability of Default Capital Ratio Spread over COF
0.50% 25.0% 1.25%
1.00% 50.0% 2.00%
1.50% 75.0% 2.75%
2.50% 100.0% 4.50%
5.00% 125.0% 7.00%
10.00% 150.0% NA

Weighting
1 Wt % Wt
1.40 1 16.7%
60% 1 16.7%
New 1 16.7%
Large Metro (1MM+) 1 16.7%
1.75 1 16.7%
>70% Total Funded Debt 1 16.7%
6
© Corporate Finance Institute. All rights reserved.

Pricing

General Assumptions
Risk Rating Low Risk (2) Loss Given Default
General Fees LTV = 0-20% 0%
General Expenses LTV = 20-40% 20%
Cost of Funds (COF) 2.25% LTV = 40-60% 40%
Capital Requirement 10% LTV = 60-75% 60%
Recommended Grid Pricing 4.25%
Client Interest Rate

Commercial Mortgage
Loan Amount $0 Capital Requirement
Projected Average Amount Outstanding $0 Allocated Capital
Normalized Loan-to-Value 0.00% Capital Ratio
Interest Rate 0.00% Adjusted Capital
Cost of Funds (COF) 2.25%
General Fees $0.00
General Expenses $0.00
Default Probability 1.00%
Loss Given Default (LGD) 10.00%
Risk-Adjusted Return - RAROC
10%
15%
20%
25%

10%
-
50%
-

na
© Corporate Finance Institute®. All rights reserved.

Model Admin

Password to Unlock Admin: CFIUNLOCK

Property Type Test Cap Rate Minimum DSC Test Vacancy

Multi-Family Residential 4.75% 1.20 4.00%
Office 5.50% 1.25 5.00%
Industrial - Light 5.50% 1.25 5.00%
Industrial - Heavy 7.00% 1.40 6.50%
Retail - Standalone 6.50% 1.35 6.00%
Retail - Shopping Center 6.00% 1.30 5.50%
Special Use 8.00% 1.50 8.00%

Tenant Type Lease Type

Government Triple Net
National Double Net
Regional Single Net
Local Modified Gross
Vacant Gross
Percentage
Month-to-Month

Level of Deferred Maintenance Location

New Rural (<10,000)
Nearly New Small Metro (10,000 - 100,000)
Some Deferrals Metro (100,000 - 1MM)
Significant Deferrals Large Metro (1MM+)

Risk Rating Score

1
2
3
4
5
6
Recommended Amortization
300
300
300
240
240
300
180