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1 ► i ► 1 ► ► ► 1 ► 1 1 ► ► 1 1 ► ► ► <br />RENTAL FINANCIAL QUICK SHEET <br />Project: Apartments C)o, Ramsey Town Center Prepared By: Ryan D. Cronk <br />Location: Ramsey, MN Date: 01/07/10 <br />Urbanworks - Concept C - 12-22-2009 - Buildings B&C <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 38 15% 815 30,970 371,640 24,700 1.25 To Purchase Land - <br />One bedroom/One bath 750 113 45% 940 106,220 1,274,640 84,750 1.25 Hard Construction Costs 26,386,018 104,706 117.64 <br />One bedroom/One bath Den 950 38 15% 1,190 45,220 542,640 36,100 1.25 Contingency -INCULDED 0'1 <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 26,386,018 104,706 117.64 <br />Demo Existing Buildings - - <br />Two Bedroom/ Two Bath 1,250 63 25% 1,560 98,280 1,179,360 78,750 1.25 Architectural & Engineering <br />Two Bedroom/ Two Bath - 0% - Architectural and Engineering Fees 5% 1,319,301 5,235 5.88 <br />Two Bedroom/ Two Bath 0% Architectural Services Fees 115,000 456 0.51 <br />Two Bedroom/ Two Bath 0% - Construction Period Costs <br />Two Bedroom/ Two Bath 0% Real Estate Attorney 35,000 139 0.16 <br />Two Bedroom/ Two Bath - 0% - Legal & Accounting Fees 125,000 496 0.56 <br />TOTAL 890 252 100% $1,114 $280,690 $3,368,280 224,300 $1.25 Title, Recording & Lender Inspections 50,000 198 0.22 <br />Vacancy 6.0(Y% ($16,841) ($202,097) Construction Interest 6.25% 100.00°% 1,280,313 5,081 5 71 <br />EFFECTIVE RENTAL INCOME $263,849 $3,166,183 Mezzanine Interest 0.00% 2 <br />Financing Fee - F&C 0.25% 51,213 203 0.23 <br />Number Financing Fee - Loan Fees 1.25% 256,063 1,016 1.14 <br />OVER INCOME of Units Rents Monthly Annual Financing Fee - Other 0.00% - Garages 0 100 00 Furnishings and Equipment 275,000 1,091 1 23 <br />Fireplaces 0 30.00 Other Period Costs <br />Premiums Views 0 20.00 Taxes 25,000 99 0 11 <br />Laundry 0 2.00 Lease -up Incentive $300 75,600 300 0.34 <br />Vaulted Ceilings 0 5000 Working Capital 250,000 992 1.11 <br />Ancillary Income 0 17.37 - - Capitalized Lease -up Marketing - - <br />Miscellaneous 252 50 92 12,832 153,985 City Connection and Impact Fees 2,603,1 12 10,330 11.61 <br />TOTAL 12,832 153,985 Market Study 6,000 24 0.03 <br />Vacancy 6.00% (770) (9,239) Appraisal & Market Study 6,500 26 0.03 <br />EFFECTIVE OTHER INCOME $12,062 $144,746 Insurance 75,000 298 0.33 <br />Ramsey Developer Fee 175,000 694 0.78 <br />TOTAL EH. ECTIVE INCOME $275,911 $3,310,929 I Organizational (e.g. Partnership) 35,000 139 0.16 <br />Development Contingency 5.00% 1,319,301 5,235 5.88 <br />OPERATING EXPENSES Unit/Year Annual Total Development Cost 34,463,419 136,760 153.65 <br />Operating Expenses 2,955 744,660 Developer Overhead 5.00% 1,659,155 6,584 $7.40 <br />Property Insurance 198 49,896 TOTAL USES 36,122,575 143,344 161.05 <br />Property Taxes 1,200 302,400 <br />TOTAL OPERATING EXPENSES 4,353 1,096,956 SOURCES OF FUNDS Total /Unit /SF <br />Replacement Reserves 150 37,800 General Partner Equity 10.21% 3,687,575 14,633 16.44 <br />TOTAL EXPENSES Percentage of Gross Income 34.27% 4,503 1,134,756 Limited Partner Equity 0.00% - <br />Construction Loan 56.71% 20,485,000 81,290 91.33 <br />NET OPERATING INCOME $2,176,173 , Other Equity Source 0.00% 0.00% - - <br />TIF / MUNICIPAL MONIES 33 08% 11,950,000 47,421 53.28 <br />Value Cap Rate on TOTAL SOURCES 36,122,575 143,344 161.05 <br />ECONOMIC VALUE Calculation Construction <br />Net Operating Income $2,176,173 Max <br />Market Capitalization Rate 7.50% UNDERWRITING LTV/Cost Loan <br />Income Based Value $29,015,643 Income Base Value 29,015,643 70% 20,310,950 <br />Total Development Cost 36,122,575 6.02% Total Development Cost (Less Subsidy) 24,172,575 85% 20,546,689 <br />SHORTFALL (11,950,000) Debt Service Coverage at 6.50% Interest Rate 1,813,478 1 20 25,812,859 <br />Net Total Development Cost 24,172,575 9.00% <br />$4,843,068 ITheLesser of80%LTV, 90%ofDevelopment Cost or1.20DSC 20,310,950I <br />Debt Service Sensitivity 4 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 />1,813,478 1,813,478 1,813,478 1,813,478 1,813,478 <br />$27,466,265 $26,618,391 $25,812,859 $25,047,058 $24,318,560 <br />