Now that we have the operating expenditures calculated, we can go ahead and calculate the expense reimbursements. So for this, we're gonna have to go back to our Calcs page. And here we have the pro rata for expense reimbursement for the triple net leased area. And we're gonna go ahead and pick up that 40%. That's the pro rata share of the net leaseable area that the triple net tenant has. And that's going to be anchored absolutely because it's not gonna move up or down. And we can then go ahead and apply that to the expenses that are reimbursable. And in the case of the triple net lease tenant, that will be the sum of everything except the non-reimbursable expenses. And this, however, is income to the landlord or owner. So we have to reverse that from the negative. Now, the triple net leases, the N or the net can either be the net of taxes, net of insurance, or net of operating expenses. The triple net, of course, covers all three of those. The single net could be any one of the three. Typically, it's the taxes that are going be reimbursed. So we're going to do the same thing here. We're gonna go over to our calcs and we're going to pick up the 35% for expense reimbursement. Again, they're pro rata and we will apply that after we anchor it to the taxes. So they will pay 35% of the taxes back to the landlord or tenant in the form of reimbursement. And then lastly, we have the full service gross. And that's the easy one because they're not responsible for any reimbursement, unless, of course, we're using a base stop year calculation, which we're not in this model. So that will be applying this 0% regardless, of course, of their pro rata because zero is what the lease indicates times the sum of all of these, or we could just link it to the zero. It's really, it's going to be zero, so it doesn't really matter. And that therefore gives us our total expense reimbursements. And now that we have that income, we can also go ahead and calculate our effective gross revenue, sometimes called effective gross income or EGI. And this is going to be the sum of the net rental revenue and the expense reimbursements. So we can go ahead and copy this across now, proving the need, of course, for that outer anchor column. And the last thing that we will wanna do here is calculate our net operating income. And the net operating income is, of course, going to be the net of the effective gross revenue or EGI and the total other income or expense. In this case, we're not showing other income, we're showing only the operating expenses here. But in theory, there could be some additional income if they had parking revenue or storage revenue, et cetera. And that will give us our net operating income, which we can copy across. And I think I'll use an anchor column here.

And this is showing, of course, stability in the income until we hit the next year. And then we see an increase. And that continues on into the model. Now that we have the net operating income, let's go back to our deal terms and calculate our implied going in cap rate 'cause that was something we said that we couldn't actually calculate at the time. So the implied going in cap rate is going to be the forward net operating income of the year beyond the date of purchase divided by the purchase price. So that's gonna be the sum of all of the net operating income from months one through 12 divided by the purchase price.

And that gives us an implied going in cap rate of 5.6%.