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RENTAL FINANCIAL QUICK SHEET
<br />Project: Apartments (aa, Ramsey Town Center Prepared By: Ryan D. Cronk
<br />Location: Ramsey, MN Date: 01/07/10
<br />Urbanworks - Concept A - 12-22-2009
<br />Unit Number Unit Living Rent/
<br />RENTAL INCOME SF of Units Mix Rents Monthly Annual Area SF SF USES OF FUNDS Total /Unit /SF
<br />Studio 650 37 15% 815 30,155 361,860 24,050 1.25 To Purchase Land - -
<br />One bedroom/One bath 750 111 45% 940 104,340 1,252,080 83,250 1.25 Hard Construction Costs 28,927,350 117,115 131.52
<br />One bedroom/One bath Den 950 37 15% 1,190 44,030 528,360 35,150 1.25 Contingency-INCULDED 0% - - -
<br />One bedroom/One bath 0% - - - - - Builder Fee - INCLUDED 0%
<br />One bedroom/One bath 0% Builder Overhead - INCLUDED 0% - - -
<br />One bedroom/One bath 0% Total Hard Construction Cost 28,927,350 117,115 131.52
<br />Demo Existing Buildings - - -
<br />Two Bedroom/ Two Bath 1,250 62 25% 1,560 96,720 1,160,640 77,500 1.25 Architectural & Engineering
<br />Two Bedroom/ Two Bath 0% - - Architectural and Engineering Fees 5% 1,446,368 5,856 6.58
<br />Two Bedroom/ Two Bath - 0% Architectural Services Fees 115,000 466 0.52
<br />Two Bedroom/ Two Bath 0% Construction Period Costs
<br />Two Bedroom/ Two Bath 0% Real Estate Attorney 35,000 142 0.16
<br />Two Bedroom/ Two Bath - 0% - - Legal & Accounting Fees 125,000 506 0.57
<br />TOTAL 890 247 100% $1,114 $275,245 S3,302,940 219,950 $1.25 Title, Recording & Lender Inspections 50,000 202 0.23
<br />Vacancy 6.00% ($16,515) ($198,176) Construction Interest 6.25% 100.00% 1,248,438 5,054 5.68
<br />EFFECTIVE RENTAL INCOME $258,730 $3,104,764 Mezzanine Interest 0 00% 2 - -
<br />Financing Fee - F&C 0.25% 49,938 202 0.23
<br />Number Financing Fee - Loan Fees 1 25% 249,688 1,011 1.14
<br />OR INCOME of Units Rents Monthly Annual Financing Fee - Other 0 00% - - -
<br />Garages 0 100.00 Furnishings and Equipment 275,000 1,113 1.25
<br />Fireplaces 0 30.00 Other Period Costs
<br />Premiums Views 0 20.00 Taxes 25,000 101 0.11
<br />Laundry 0 2.00 Lease-upIncentive$300 74,100 300 0.34
<br />Vaulted Ceilings 0 50.00 Working Capital 250,000 1,012 1 14
<br />Ancillary Income 0 17.37 - Capitalized Lease -up Marketing - - -
<br />Miscellaneous 247 50.92 12,577 150,930 City Connection and Impact Fees 2,551,463 10,330 11.60
<br />TOTAL 12,577 150,930 Market Study 6,000 24 0 03
<br />Vacancy 6.00% (755) (9,056) Appraisal & Market Study 6,500 26 0.03
<br />EFFECTIVE OTHER INCOME $11,823 $141,874 Insurance 75,000 304 0.34
<br />Ramsey Developer Fee 175,000 709 0.80
<br />TOTAL EFFECTIVE INCOME $270,553 $3,246,638 I Organizational (e.g. Partnership) 35,000 142 0.16
<br />Development Contingency 5 00% 1,446,368 5,856 6.58
<br />OPERATING EXPENSES Unit/Year Annual Total Development Cost 37,166,211 150,470 168.98
<br />Operating Expenses 2,955 729,885 Developer Overhead 5 00% 1,795,889 7,271 $8.16
<br />Property Insurance 198 48,906 TOTAL USES 38,962,099 157,741 177.14
<br />Property Taxes 1,200 296,400
<br />TOTAL OPERATING EXPENSES 4,353 1,075,191 SOURCES OF FUNDS Total /Unit /SF
<br />Replacement Reserves 150 37,050 General Partner Equity 9.59% 3,737,099 15,130 16.99
<br />TOTAL EXPENSES Percentage of Gross Income 34.16% 4,503 1,112,241 Limited Partner Equity 0.00% - -
<br />Construction Loan 51.27% 19,975,000 80,870 90.82
<br />INET OPERATING INCOME $2,134,397 I Other Equity Source 0.00% 0.00% - -
<br />TIF / MUNICIPAL MONIES 39.14% 15,250,000 61,741 69 33
<br />Value Cap Rate on TOTAL SOURCES 38,962,099 157,741 177.14
<br />ECONOMIC VALUE Calculation Construction
<br />Net Operating Income $2,134,397 Max
<br />Market Capitalization Rate 750% UNDERWRITING LTV/Cost Loan
<br />Income Based Value $28,458,622 Income Base Value 28,458,622 70% 19,921,035
<br />Total Development Cost 38,962,099 5.48% Total Development Cost (Less Subsidy) 23,712,099 85% 20,155,284
<br />SHORTFALL (15,250,000) Debt Service Coverage at 6.50% Interest Rate 1,778,664 1 20 25,317,323
<br />Net Total Development Cost 23,712,099 9.00%
<br />$4,746,523 I The Lesser of80%LTP, 90% of Development Cost or 1.20 DSC 19,921,035
<br />Debt Service Sensitivity (a) 1.20 DSC
<br />Amortization Period (years)
<br />Permanent Interest Rate
<br />Annual Debt Service
<br />Max Loan Amount
<br />40 40 40 40 40
<br />6.00% 6.25% 6 50% 6 75% 7.00%
<br />1,778,664 1,778,664 1,778,664 1,778,664 1,778,664
<br />$26,938,989 $26,107,391 $25,317,323 $24,566,224 $23,851,711
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