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i ► ► ► ► ► t ► ► > ► ► ► ► ► ► <br />RENTAL FINANCIAL QUICK SHEET <br />Project: Apartments @ Ramsey Town Center Prepared By: Ryan D. Cronk <br />Location. Ramsey, MN Date: 01/07/10 <br />Urbanworks - Concept D - 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 22,061,616 87,546 98.36 <br />One bedroom/One bath Den 950 38 15% 1,190 45,220 542,640 36,100 1.25 Contingency -INCULDED 0% - - <br />One bedroom/One bath - 0% - - - - Builder Fee - INCLUDED 0% <br />One bedrooni/One bath - 0% - Builder Overhead - INCLUDED 0% - - - <br />One bedroom/One bath - 0% Total Hard Construction Cost 22,061,616 87,546 98.36 <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% 1,103,081 4,377 4.92 <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 Attomey 35,000 139 0.16 <br />Two Bedroom/ Two Bath - 0% - - - Legal & Accounting Fees 1255,000 496 0.56 <br />TOTAL 890 252 100 % $1,114 $280,690 53,368,280 224,300 $1.25 Title, Recording & Lender Inspections 50,000 198 0.22 <br />Vacancy 6.00% ($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 />O'�INCOME of Units Rents Monthly Annual Financing Fee - Other 0 00% - - <br />ages 0 100.00 Furnishings and Equipment 275,000 1,091 1.23 <br />Fireplaces 0 3000 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 50.00 Working Capital 250,000 992 1.11 <br />Ancillary Income 0 17.37 - Capitalized Lease -up Marketing <br />Miscellaneous 252 5092 12,832 153,985 City Connection and Impact Fees 2,603,112 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 EFFECTIVE INCOME $275,911 $3,310,929 I Organizational (e.g. Partnership) 35,000 139 0.16 <br />Development Contingency 5.00% 1,103,081 4,377 4.92 <br />OPERATING EXPENSES Unit/Year Annual Total Development Cost 29,706,577 117,883 132.44 <br />Operating Expenses 2,955 744,660 Developer Overhead 5.00% 1,421,313 5,640 $6.34 <br />Property Insurance 198 49,896 TOTAL USES 31,127,890 123,523 138.78 <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 11.91% 3,707,890 14,714 16.53 <br />TOTAL EXPENSES Percentage of Gross Income 34.27% 4,503 1,134,756 Limited Partner Equity 0.00% - - - <br />Construction Loan 65.81% 20,485,000 81,290 91.33 <br />NET OPERATING INCOME $2,176,173 1 Other Equity Source 0.00% 0.00% - - - <br />TIF / MUNICIPAL MONIES 22.28 % 6,935,000 27,520 30.92 <br />Value Cap Rate on TOTAL SOURCES 31,127,890 123,523 138.78 <br />ECONOMIC VALUE Calculation Construction <br />Net Operating Income $2,176,173 Max <br />Market Capitalization Rate 750% 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 31,127,890 6.99% Total Development Cost (Less Subsidy) 24,192,890 85% 20,563,957 <br />SHORTFALL (6,935,000) Debt Service Coverage at 6 50% Interest Rate 1,813,478 1.20 25,812,859 <br />Net Total Development Cost 24,192,890 9.00% <br />$4,822,752 !The Lesser of80%LTV, 90% of Development Cost or 1.20 DSC 20,310,950 <br />Debt Service Sensitivity na, 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 />