Please complete Module 6 tabs in the Excel and answer all the questions below. T

Please complete Module 6 tabs in the Excel and answer all the questions below.
This next week…it is all about risk assessment NOT predicting the future. It is impossible to determine today if and when Harford County will choose to exercise its early termination clause. All that we do know is that the risk is real.
Ask yourself…at the stated purchase price and assuming Harford County invokes the early termination clause…
1. can you survive (pay more equity into the deal to service debt and pay TI’s and LC’s) this downside scenario?
2. If the answer is “yes” then how will your lender view this risk when sizing the loan?
3. You may decide based on this analysis to change your offering price or adjust your repositioning plan for FO.
4. Finally, what is the impact on your JV structure relative to this risk?
Complete tab Module 6 tenant rollover and then reference the “four” key rollover variables into GTI’s DCF.
1. Paste update your groups cash flow tab below. In doing so…remember there is ONE rollover analysis for each tenant but there could be multiple rollovers for each tenant as leases expire.
2. What is the impact of rollover on the stated returns? Do we see cash flow deficits and if so how will they be funded? Do we now need to revisit our purchase price? If so make those necessary adjustments.
3. WHAT IS THE BASIS FOR RENEWAL PROBABILITY AND DOES ONE GO ABOUT ARRIVING AT THIS %. WHAT ARE ELEMENTS THAT GO INTO DECIDING THIS.