Project Name Sponsor
Address 55 Broad
Timeline
Close on Land 1-Jan-08
Construction Period Begin 1-May-08
Construction Period End 1-Nov-11
Permanent Loan Take Out 1-Nov-11
Lease Up Begin 1-Oct-08
First Unit Completion Date 1-Nov-08
Begin Occupancy 1-Nov-08
Last Delivery Date 1-Feb-10
Stabilization Date 1-Nov-09
Sale Date 1-May-16
Unit Completion Schedule
# of Months From Const. start to first delivery 6
Units Complete/Month 20
# of Months to Complete 15.00
Completion/Month 6.67%
Lease-Up
Lease Up Rate/Month (Units) 20
Lease Up Absoption Rate/Month (%) 6.67%
# of Months prior to First Unit Completion that Lease Up begins 1
Equity Structure
Parternship Structure
Number of Parnters 3
Sponsor Sponsor
Capital Partner 1 CapInvestor 1
Capital Parnter 2 CapInvestor 2
Equity Tier 1 Pref
Tiered Structure
Benchmarks Input 0.00%
Sponsor 20.00% 20.00%
CapInvestor 1 40.00% 40.00%
CapInvestor 2 40.00% 40.00%
Debt
Predevelopment Loan
Predevelopment Loan Yes
Debt Amount $1,781,266
Length of Hold (Months) 4
interest Rate 8.00%
LTV 60.00%
Construction Loan
Construction Loan Yes
Debt Amount $73,876,903
Length of Hold (Months) 30
Interest Rate 7.50%
LTC 75.00%
Paydown Loan w/ NOI Yes
Cost
Cost Assumptions % of Total Total
Land Cost 10.00% $9,969,005
Soft Costs 30.70% $30,609,425
Hard Cst 59.30% $59,111,618
Total 100.00% $99,690,048
Breakdown
Total Land Acquisition and Title 10.00% $9,969,005
Total Due Diligence 0.10% $100,000
Total Legal 0.13% $125,000
Total Financing (Excluding Interest) 27.18% $27,093,359
Total Interest 10.73% $10,694,977
Total Taxes Insurance & HOA Fees 12.52% $12,483,139
Total Municipal Permits and Fees 2.25% $2,246,888
Total Architecture, Engineering & Survey 0.96% $960,000
Total Consultants 1.66% $1,650,000
Total Furniture, Fixtures & Equipment 0.42% $415,000
Total Marketing, Sales & Leasing Costs 0.15% $150,000
Total Misc. Soft Costs and Reserves (Excluding Lease-Up Income) 0.22% $220,800
Total Lease-Up Income (applied to project costs) -3.70% -$3,692,153
Total Owner/Developer Overhead Fees 3.81% $3,795,246
Total Contingency 2.88% $2,869,362
Total Hard Costs 30.70% $30,609,425
0.00%
Total Project Costs 100.00% $99,690,048
Financing Requirements % of Total Total
Construction Loan 74.11% $73,876,903
Equity 25.89% $25,813,145
Project Costs 100.00% $99,690,048
1st Year Stabilized Income
Gross Potential Income
Total Losses
Total Other Income
Effective Income
Payroll
Repairs & Maintenance
Administrative & Marketing
Utilities
Insurance
Property Taxes
Replacement Reserve
Managmenet Fee
Asset Managmenet Fee
Total Operating Expenses
NOI / CFBDS
Permenant Loan Debt Service
Cash Flow Available After Debt Service
Return on Costs (NOI / Project Costs)
Cash on Cash Return (CFADS / Equity)
Debt Service Coverage Ratio -
Revenue
Rent/Month $/Month # of Units
Studio 0 0
One Bed/One Bath $1,500.00 300
One Bed/One Bath/One Half Bath 0 0
Two Bed/Two Bath 0 0
Two Bed/Two Bath/One Half Bath 0 0
Three Bed/Two Bath 0 0
Three Bed/Two Bath/One Half Bath 0 0
Other 0 0
Other 0 0
Other 0 0
Other 0 0
Other 0 0
Other 0 0
Other 0 0
Other 0 0
Other 0 0
Other 0 0
Other 0 0
Total 1500 300
Avg Rent Average Rent Avg. Rent
Unit / Month Unit / Year SF / Month
$1,500 $18,000 $2.50
Rent Growth/Year
Auxillary Revenue Base Rent/Month # of Units
Parking Security Fee $0 0
Garage Parking $0 0
Storage $100 200
Water Income $0 0
Non-Refundable Deposits $0 0
Premium Line Items
Top Story $0 0
First Story $0 0
Courtyard, Convservation or Pond View $0 0
Pool View $0 0
Short Term Lease $0 0
Other $0 0
Other $0 0
Expenses
Use different expense levels for Lease-Up Period Yes
Expenses- (Lease-Up)
Fixed Expense Trends
Real Estate Taxes $100,000
Insurance $0.00
Common Area Utilities $30,000
Other $0.00
Other $0.00
Other $0.00
Variable Expense Trends
Management Fee (% of EGI) 2.00%
Asset Management Fee (% of EGI) 4.00%
Payroll $0.00
Repairs & Maintenance $550,000
Administrative & Marketing $0.00
Replacement Reserves $0.00
Utilities $0.00
Utilities Reimbursement $0.00
Other $0.00
Total Expenses (Without Management FEEs) $0.00
Expenses- (Stabilization) 1-Jan-08
Fixed Expenses Trends
Real Estate Taxes $150,000 0.00%
Insurance $0.00 0.00%
Common Area Utilities $40,000 0.00%
Other $0.00 0.00%
Other $0.00 0.00%
Other $0.00 0.00%
Variable Expenses Trends
Management Fee (% of EGI) 5.00% 5.00%
Asset Management Fee (% of EGI) 0.00% 0.00%
Payroll $100,000 0.00%
Repairs & Maintenance $0.00 0.00%
Administrative & Marketing $0.00 0.00%
Replacement Reserves $0.00 0.00%
Utilities $500,000 0.00%
Utilities Reimbursement $0.00 0.00%
Other $0.00 0.00%
Total Expenses (Without Management FEEs) $790,000
Sale
Sale Date 1-May-16
Terminal Cap Rate 7.00%
Sales Expense (Brokerage & Legal) 0.00%
Sale Price $109,350,824
Sales Cost $0
Depreciation Recapture Tax $0
Capital Gains Tax $0
Gross Sale Proceeds $109,350,824
Mortgage Balance ($69,727,439)
Net Sales Proceeds $39,623,384
Occupancy
Months in Between Lease Up and Occupancy 1
Occupancy/Month (Units) 20
Occupancy/Month (%) 6.67%
Number of Months to Stabilization From C/O 15.00
Stabilization
Stabilization Level 85%
# of Months Between Const. Start Date and Stabilization 18
Tier 3 IRR Tier 5
Tier 2 IRR Hurdle Hurdle Tier 4 IRR Hurdle Balance
5.00% 15.00% 25.00% Balance
20.00% 10.00% 30.00% 20.00%
40.00% 45.00% 35.00% 40.00%
40.00% 45.00% 35.00% 40.00%
PSF Per Unit
$33.23 $33,230
$102.03 $102,031
$197.04 $197,039
$332.30 $332,300
$33.23 $33,230
$0.33 $333
$0.42 $417
$90.31 $90,311
$35.65 $35,650
$41.61 $41,610
$7.49 $7,490
$3.20 $3,200
$5.50 $5,500
$1.38 $1,383
$0.50 $500
$0.74 $736
-$12.31 -$12,307
$12.65 $12,651
$9.56 $9,565
$102.03 $102,031
$332.30 $332,300
PSF Per Unit
$246.26 $246,256
$86.04 $86,044
$332.30 $332,300
SF Rent Total Rent/Year
$0 $0 $0
$1,000 $1,500 $450,000
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$1,000 $1,500 $450,000
Avg. Rent Average
Unit SF / Year Unit Size
$30.00 600
1-Jan-08 1-Jan-09 1-Jan-10 1-Jan-11 1-Jan-12 1-Jan-13
0% 5% 7% 5% 7% 5%
Total Rent
$0 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%
$0 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%
$20,000 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%
$0 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%
$0 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%
$0 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%
$0 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%
$0 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%
$0 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%
$0 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%
$0 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%
$0 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%
1-Jan-09 1-Jan-10 1-Jan-11 1-Jan-12 1-Jan-13 1-Jan-14 1-Jan-15
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
Return Analysis
Return Analysis
Unlevered Project IRR 7.61%
Levered Project IRR 17.89%
1-Jan-14 1-Jan-15 1-Jan-16
5% 5% 5%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
1-Jan-16 1-Jan-17 1-Jan-18
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
5.00% 5.00% 5.00%
0.00% 0.00% 0.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
