Type of leases (e.g., full service or gross, modified gross, or triple
net-NNN)
Number of truck bays, type of rail service area
Ceiling height
Parking spaces
Percentage of office finish-out to warehouse space
Percentage of air-conditioned warehouse space
Financial Summar y
The financial summary section of the executive summary features key
economic data found in the Property Economics section of the loan
request package such as purchase price, loan-to-value, annual NOI,
annual operating expenses, debt coverage ratio, and average rent per
square foot. As previously mentioned at the beginning of this chap-
ter, the loan request package itself has a complete section dedicated
to property economics cash flow, and loan analysis, so it’s not neces-
sary to include full page rent rolls, cash flow schedules, or financial
statements. The goal here is to underscore key financial statistics for
easy reference. The following list is a sample of key financial data
most often highlighted in an executive summary:
?
Purchase price
? Purchase price per unit (apartments) or per SF
(commercial)
? Average rent per SF per year (commercial)
? Average rent per month per unit (apartments)
? Gross Potential Rental Income (GPI)
? Triple net recoveries or utility expense reimbursements
? Other or miscellaneous income
? Actual vacancy rate
? Market vacancy rate
Preparing the Loan Request Package
57

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