The document discusses a case study about Vincent Colmo and Daniel Delconte who partnered to form River Triangle Associates (RTA) to invest in real estate properties. It describes their Steel Street project, a 6-story office building renovation in Pittsburgh that ran into cost overruns and leasing issues. Their options are analyzed, with providing leasing incentives and contributing more equity identified as the best approaches to improve the project returns. Sensitivity analysis is also conducted to understand the impact of variables like vacancy rates, rental rates, costs, and financing changes.

1. Steel Street Case Study Ruthie Americus & Anil Cheerla

4. Pros/Cons

6. Renovation Schedule & Funding Sources

15. Original Pro Forma Levered Returns Initial Outlay 2009 2010 2011 2012 2013 Initial Equity $ (563,885) Building Renovations $ (794,000) Annual Cash Flow $ 71,787 $ 197,256 $ 232,108 $ 232,108 $ 232,108 Sales Proceeds - Mortgage Repayment $ 3,175,871 Total Cash Flows $ (1,357,885) $ 71,787 $ 197,256 $ 232,108 $ 232,108 $ 3,407,979 Annual ROE 5.29% 14.53% 17.09% 17.09% 17.09% IRR 28.16%

16. Modified Pro Form with Leasing Bonus Levered Returns Initial Outlay 2009 2010 2011 2012 2013 Initial Equity $ (563,885) Building Renovations $ (794,000) Annual Cash Flow $ 71,787 $ 37,256 $ 72,108 $ 232,108 $ 232,108 Sales Proceeds - Mortgage Repayment $ 3,175,871 Total Cash Flows $ (1,357,885) $ 71,787 $ 37,256 $ 72,108 $ 232,108 $ 3,407,979 Annual ROE 5.29% 2.74% 5.31% 17.09% 17.09% IRR 24.44%