CLIENT SUCCESS STORIES

Mill Creek Residential received a proposal from a multi-unit restaurant company to occupy a 7,500 square foot vacant space in a new-construction residential building. The proposal involved a large tenant improvement allowance. To gain comfort that the new tenant had a reasonable chance of success in the space, Mill Creek Residential contracted with RDS to review the financial projections of the restaurant tenant.

RDS prepared an analysis of the tenant’s financial projections to determine the the following parameters:

• Development cost: It was determined that the proposed development cost was consistent with other similar style and market segment restaurants in the Washington, DC area;

• Income and expense projections: It was determined that the projections were reasonable for a similar type and market segment restaurant in the Washington, DC area. Specific parameters analyzed and benchmarked to National Restaurant Association Data were: sales, cost of goods sold, payroll, direct operating expense, marketing expense, administrative and general expenses, repairs and maintenance. In addition, RDS determined that the proposed rent would not put undue burden on the tenant.

  Overall, RDS determined that the projections were reasonable and consistent with similar type and market segment restaurants in the Washington, DC area. Mill Creek Residential made and offer of lease and is now very happy with its new tenant in the Falls Church, VA building.