04/19/13

Memorial Units

Year Built:

1950

Acres:

0.07
Rents at 00/00/10

# of Units
18
0
0
0
0
0
0
0
0
0
0
18

Unit Type
2/1
1/1
2/2
2/2
3/2

Sq. Ft.
700
0
0
0
0
0
0
0
0
0
0
700

Total Sq. Ft.

12,600

12,600

Current
Effective
Rents
$500
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$500

Abbey
Pro Forma
Current Rents
Rents
Per Sq. Ft.
$825
$0.714
$30
$30
$30
$30
$30
$30
$30
$30
$30
$30
$825
$0.714
$30 avg rent increase

Revenues:
Market Rents/Gross Potential Rents
Loss or Gain to Lease
Less: Vacancy Loss - Apts
Less: Vacancy Loss - Employees
Less: Non Revenue Units / Lost Rent (Model/Office/Maint. Shop/Storage Unit)
Less: Concessions (Up-front or pro-rated)
Less: A/R Net (Delinquent Rent or Bad Debt Exp + Prior Month Collections)
Net Rental Revenue

New Rents
Per Sq. Ft
$1.179

$1.179

0.00%
0.00%
0.00%
0.00%
0.00%
0.00%

-1.00%
-6.00%
-1.00%
-1.00%
-1.00%
-1.00%

100.00%

89.00%

and 0 Months
at 00/31/12
Annualized
$9,000

Pro Forma
Stabilized Rents
Total
$14,850

Stabilized
Per Unit
Data
750

$9,000
x12

$14,850
x12

825

108,000

178,200
(1,782)
(10,692)
(1,782)
(1,782)
(1,782)
(1,782)

825
(8)
(50)
(8)
(8)
(8)
(8)

108,000

158,598

734

0
0
6,480

0
0
360

165,078

9,171

3,600
12,737
1,500
0
6,480
0
2,500
0
0
3,240
0
0
13,206
450
10,200
2,988
2,700
0
0
3,600
3,870
3,600
3,600

200
708
83
0
360
0
139
0
0
180
0
0
734
25
850
166
150
0
0
200
215
200
200

Laundry Income
Garage or Carport Income
Other Misc. Income (Utility Reimbursements or Income shown in Operating Costs Section)
Total Income

108,000

Less: Operating Costs

Insurance Expense (Property & Liability)
Property Real Estate Taxes
270,000
100.0%
270,000
0.047174
12,737
Other Taxes (Personal Property / also any consultant fees)
Water & Sewer Expense
Water & Sewer Reimbursements (collected from residents)
Refuse/Trash Removal Expense
Refuse Reimbursements (colleced from residents monthly)
Gas Expense
Gas Reimbursement (collected from residents monthly)
Electric Expense (Common Area/Electric Vacant/Electric Billed to residents)
Electric Reimbursement (collected from residents)
City Revenue Tax / Franchise Tax or Other Local Fees Paid
0.000%
Management Fees (Property Management only)
0.00%
8.00%
Legal Fees / Professional Fees/Association Fees
Payroll Expense (including Worker's Comp Insurance, but NOT Employee-Apartments)
Advertising Expense
General and Administrative Expense
Cable expense (BULK Only)
Cable income (BULK deals only where fees are collected monthly from residents; Revenue Share deals shown in Other Income)
Contract Services (Alarm monitoring, Pest Control, Landscaping H Any expense requiring a service contract to be signed)
Turnkey Expense (Painting, Apt. Cleaning, Carpet Clean, Punch Repairs)
Repairs and Maintenance
Replacement Reserve
$200 / unit
(assumption for capital expenses)
Total Expenses

00 / unit

Cap Rates Used for Valuation

Valuation of Real Esate

Less First Mortgage

Less Mez debt / 2nd Mortgage

16,667 / unit
23.81 / sq. ft.
18.12% LTV
27.75% LTV

Interest Rate
7.00%
14.00%

Loan Amount
235,000
360,000

Amort Period
30
30

72,069 / unit
102.96 / sq. ft.

1.30 DSC
20,000 / unit
16,667 / unit
3,832 / unit
00 / unit

Total Cost in Investments

PAID @ Closing

36.00%
1
300,000

7.00%
1,297,239

1,037,792

(18,762)
(51,186)
20,859

10.45%

360,000
300,000
68,970
0
0
728,970

Profit from Investment

31,571 / unit

568,269

Profit per Unit

31,571 / unit

7,443 / unit

1,297,239

Cash Required at Closing

4,126

40,498 / unit

40,498 / unit
-33,056 / unit

5,045

72,069 / unit

Total Funds Required

Less: Loan Proceeds

74,271

Value after Repositioning Asset

57.85 / sq. ft.

90,807

45.87% LTV

Costs of Repositioning (Projected renovation budget)

Purchase Price
Closing Costs
Additional Property Contingency
Negative Cash Flow

Prior Year 2
as of
12/31/2010
54,000

Notes:
Interest Only Baloon
Balloon

Cash flow

Prior Year 1
as of
12/31/2011
45,000

108,000

4,126 / unit

Net Operating Income

00 Months
through
00/31/2012
Annualized

81.6% LTC
18.4%

728,970
(595,000)
133,970

656,073