Assignments are due on Wednesday, March 13th before class (3.00 pm). Objective: Build a proforma in excel to analyze a real estate development. Create a cash flow for the operating period and answer the questions asked at the end. TMU Developments ("TMU") purchased a 3.5 acre vacant site for $5M in Toronto to develop a retail plaza. The company came up with a concept of 50,000 sf plaza consisting of 5 units. Consistent with the market demand for newly built retail space in good locations, TMU received good rental rates while negotiating leases with prospective tenants. Following are the rents per square foot as per the 10 year leases signed with different tenants: Each tenant will pay additional rent of $250 per month for pylon signs over the lease term. Assume the same pylon sign rent for the 11 th year. Operating expenses for the first year of operations are $10 per square foot. As this will be a newly constructed plaza, TMU is not including a structural reserve for the first five years but is including the reserve based on 1% of Effective Gross Income per annum thereafter. Leasing Costs will be applied in 10th year when the leases mature. TMU assumes average market rent, operating expenses and leasing costs will increase every year by 3% as mentioned above.PLE-635: Feasibility Analysis of Development Assignment - 1 School of Urban and Regional Planning Proforma Analysis Winter 2023 Total Points - 30 Development Period Below are the development costs for the plaza: It will take 2 years for the development to complete and TMU assumed average loan outstanding at 50% to calculate financing costs. Based on the information provided above, answer the following questions: 1) What is the value of the retail plaza after completion based on Direct Capitalization approach and Discounted Cash Flow approach based on 10 year holding period? (20 points) 2) What is the total cost of developing the plaza? Calculate the yield generated by this development. (10 points).