Executive Summary
Output version 2 - Jan 19 2026
Catoctin Circle
Net Operating Income
$1,053,564
Direct Cap Value
$19,155,709
@ 5.50% Cap
DCF Value
$17,559,400
@ 6.00% Exit Cap
Unlevered IRR
5.47%
Levered IRR
5.08%
DSCR
1.88x
Equity Multiple
1.16x
Operating Statement
Output version 2 - Jan 19 2026
Income
| Gross Potential Rent | $1,305,000 |
| Less: Vacancy (5.0%) | ($65,250) |
| Less: Credit Loss (1.0%) | ($13,050) |
| Plus: Other Income | $0 |
| Effective Gross Income | $1,226,700 |
Operating Expenses
| Insurance | $40,000 |
| Real Estate Taxes | $35,000 |
| Repairs & Maintenance (3.0% of EGI) | $36,801 |
| Utilities (2.0% of EGI) | $24,534 |
| Management Fee (3.0%) | $36,801 |
| Total Expenses | $173,136 |
Net Operating Income
| Effective Gross Income | $1,226,700 |
| Less: Total Operating Expenses | ($173,136) |
| Net Operating Income (NOI) | $1,053,564 |
Capital Costs
| Tenant Improvements (TI) ($5.00/SF) | $250,000 |
| Leasing Commissions (LC) | $2 |
| Capital Expenditures (CapEx) | $85,000 |
| Total Capital Costs | $335,002 |
Valuation Analysis
Output version 2 - Jan 19 2026
Direct Capitalization Approach
| Year 1 NOI | $1,053,564 |
| Going-In Cap Rate | 5.50% |
| Indicated Value | $19,155,709 |
Discounted Cash Flow Approach
| Hold Period | 3 years |
| Exit Year NOI | $1,118,051 |
| Exit Cap Rate | 6.00% |
| Reversion Value | $18,634,176 |
| Less: Sales Costs (2.0%) | ($372,684) |
| Net Sale Proceeds | $8,603,822 |
| DCF Implied Value | $17,559,400 |
Investment Returns
| Initial Investment (Based on DCF Value) | $17,559,400 |
| Less: Loan Amount | ($9,657,670) |
| Initial Equity Required | $7,901,730 |
| Unlevered IRR | 5.47% |
| Levered IRR | 5.08% |
| Unlevered Equity Multiple | 1.17x |
| Levered Equity Multiple | 1.16x |
Debt Analysis
Output version 2 - Jan 19 2026
Loan Summary
| Loan Amount | $9,657,670 |
| Loan-to-Value (LTV) | 55.0% |
| Interest Rate | 5.80% |
| Amortization Period | 30 years |
| Annual Debt Service | $560,145 |
| Debt Service Coverage Ratio (DSCR) | 1.88x |
| Loan Balance at Exit | $9,657,670 |
Assumptions
Output version 2 - Jan 19 2026
Property Information
| Property Name | Catoctin |
| Address | Catoctin Circle |
| Asset Type | office |
| Gross Area | 50,000 SF |
| Year Built | 1996 |
Operating Assumptions
| Vacancy Rate | 5.0% |
| Credit Loss | 1.0% |
| Management Fee | 3.0% |
Valuation Assumptions
| Going-In Cap Rate | 5.50% |
| Exit Cap Rate | 6.00% |
| Sales Costs | 2.0% |
| Hold Period | 3 years |
| Discount Rate | 8.0% |
| NOI Growth Rate | 2.0% |
Financing Assumptions
| Loan Amount | $9,657,670 |
| Interest Rate | 5.80% |
| Amortization | 30 years |
| Loan Term | 10 years |
Cash Flow Projection
Output version 2 - Jan 19 2026
Annual Cash Flows
| Year | NOI | Capital Costs | Debt Service | Cash Flow (Before Debt) | Cash Flow (After Debt) |
|---|---|---|---|---|---|
| 1 | $1,053,564 | ($335,002) | $560,145 | $718,562 | $158,417 |
| 2 | $1,074,635 | ($335,002) | $560,145 | $739,633 | $179,488 |
| 3 | $1,096,128 | ($335,002) | $560,145 | $761,126 | $200,981 |
Monthly Cash Flows
| Period | NOI | Capital Costs | Debt Service | Cash Flow (Before Debt) | Cash Flow (After Debt) |
|---|---|---|---|---|---|
| Y1 M1 | $87,797 | ($27,917) | $46,679 | $59,880 | $13,201 |
| Y1 M2 | $87,797 | ($27,917) | $46,679 | $59,880 | $13,201 |
| Y1 M3 | $87,797 | ($27,917) | $46,679 | $59,880 | $13,201 |
| Y1 M4 | $87,797 | ($27,917) | $46,679 | $59,880 | $13,201 |
| Y1 M5 | $87,797 | ($27,917) | $46,679 | $59,880 | $13,201 |
| Y1 M6 | $87,797 | ($27,917) | $46,679 | $59,880 | $13,201 |
| Y1 M7 | $87,797 | ($27,917) | $46,679 | $59,880 | $13,201 |
| Y1 M8 | $87,797 | ($27,917) | $46,679 | $59,880 | $13,201 |
| Y1 M9 | $87,797 | ($27,917) | $46,679 | $59,880 | $13,201 |
| Y1 M10 | $87,797 | ($27,917) | $46,679 | $59,880 | $13,201 |
| Y1 M11 | $87,797 | ($27,917) | $46,679 | $59,880 | $13,201 |
| Y1 M12 | $87,797 | ($27,917) | $46,679 | $59,880 | $13,201 |
| Y2 M1 | $89,553 | ($27,917) | $46,679 | $61,636 | $14,957 |
| Y2 M2 | $89,553 | ($27,917) | $46,679 | $61,636 | $14,957 |
| Y2 M3 | $89,553 | ($27,917) | $46,679 | $61,636 | $14,957 |
| Y2 M4 | $89,553 | ($27,917) | $46,679 | $61,636 | $14,957 |
| Y2 M5 | $89,553 | ($27,917) | $46,679 | $61,636 | $14,957 |
| Y2 M6 | $89,553 | ($27,917) | $46,679 | $61,636 | $14,957 |
| Y2 M7 | $89,553 | ($27,917) | $46,679 | $61,636 | $14,957 |
| Y2 M8 | $89,553 | ($27,917) | $46,679 | $61,636 | $14,957 |
| Y2 M9 | $89,553 | ($27,917) | $46,679 | $61,636 | $14,957 |
| Y2 M10 | $89,553 | ($27,917) | $46,679 | $61,636 | $14,957 |
| Y2 M11 | $89,553 | ($27,917) | $46,679 | $61,636 | $14,957 |
| Y2 M12 | $89,553 | ($27,917) | $46,679 | $61,636 | $14,957 |
| Y3 M1 | $91,344 | ($27,917) | $46,679 | $63,427 | $16,748 |
| Y3 M2 | $91,344 | ($27,917) | $46,679 | $63,427 | $16,748 |
| Y3 M3 | $91,344 | ($27,917) | $46,679 | $63,427 | $16,748 |
| Y3 M4 | $91,344 | ($27,917) | $46,679 | $63,427 | $16,748 |
| Y3 M5 | $91,344 | ($27,917) | $46,679 | $63,427 | $16,748 |
| Y3 M6 | $91,344 | ($27,917) | $46,679 | $63,427 | $16,748 |
| Y3 M7 | $91,344 | ($27,917) | $46,679 | $63,427 | $16,748 |
| Y3 M8 | $91,344 | ($27,917) | $46,679 | $63,427 | $16,748 |
| Y3 M9 | $91,344 | ($27,917) | $46,679 | $63,427 | $16,748 |
| Y3 M10 | $91,344 | ($27,917) | $46,679 | $63,427 | $16,748 |
| Y3 M11 | $91,344 | ($27,917) | $46,679 | $63,427 | $16,748 |
| Y3 M12 | $91,344 | ($27,917) | $46,679 | $63,427 | $16,748 |
Rent Roll
Output version 2 - Jan 19 2026
Tenant Schedule
| Tenant | Area (SF) | Rent/SF | Annual Rent | Lease End |
|---|---|---|---|---|
| BIG Tenant | 45,000 | $29.00 | $1,305,000 | 2030-10-02 |
| Total | 45,000 | — | $1,305,000 |
This analysis is for informational purposes only and does not constitute a certified appraisal or investment advice.