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<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
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