*Prepared by James R.

Pearson,
Table of Contents Real Estate Investment Analysis Broker, BS/BA RELUE

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Section and Sheet Titles

1. Model Schematic' Wksh1

2. A. Dashboard Input Sheet Wksh2

3. Dashboard Input Sheet Wksh3

a. Construction Cost Analysis

4. Asset Description Wksh4

5. Real Estate Investment Analysis Wksh5

6. Ten Year Net Present Value Analysis Wksh6

7. Sensitivity Analysis Wksh7

8. Five Year IRR Analysis Wksh8

9. Amortization Wksh9

10. Summary Wksh10

My email address jpearson@dkcdevelopment.com

My Phone Number402-708-2829

* The basis of this model was formulated by my involvement with Finance 3.0. It is with deep gratitude and appreciation to the extremely inteligent people

from this group who contributed deeply to my understanding. Thank you

deep gratitude and appreciation to the extremely inteligent people
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Schematic

Asset Description

Revenue

Vacancy

Expenses

Inflation

Construction Costs

10 year NPV

Five Year IRR Analysis

Real Estate Investment Analysis

Sensitivity Analysis

Amortization

Summary

Misc.
Back to Table of Contents
Back Forward Analysis of Existing Retail Center for Acquisition
Fill Cells that are Blue Black Calculates Automatically

Dashboard Input - Revenue & Expense Terms of Financing Investor's Tax Bracket: 38%
Land in Acres 25.00 Interest Rate 7.00% Capital Gain Tax Rate: Varies on Tax Payer 20%
Land Square Feet 1,089,000 Amortization 25 300 CGT Rate on Recaptured Depreciation 25%
Price per Square foot (land) $ -
Purchase Price/ Acquisition Estimated (best case) $ 4,339,192 Points 1% 0.5% Expected Capital Improvements: $ -
Price per Square foot (Improvements) $ 15.73 Balloon (YRS.) 10 5 Approx. Buying Costs: as % of total 3%
Price per Acre n/a Loan To Value 75% 80% Approx. Sales Costs: as % of total 3%
Outlots $ 1 Equity Contribution 25% 20% Equity Yield Rate 10%
Number of Buildings 2 Total Source of Funds 100% 100% Estimated Term of Ownership (Years) 10
Number of Units/Tenants 39 DCR 1.2 Depreciation 39.5
Square Feet Improvements 275,861 Projected Holding Period YRS. 10 5 Inflation
Number of Stories 1 Payments per Year 12 4 4% 2% 2% 1%
Number of Garage Buildings 0 Vacancy 7% 5% Present Value Discount Factor
Secured Parking Bldgs. 0 Expenses percent Increase 1% 10.0% 9.75% 9.50% 9%
Clubhouse Square Feet 0 Lease Term (Yrs) 15 Reserve for Replacements (EGI) 0%
Other amenities Option Two - Five Yr. Capital Improvements (Annual %) 0%

Base Annual Rental Occupied Spaces Annual Sales Terms of Present Leases Projections of Income Stream
Bay Tenant Type Space Type Lease SF Base Rental Rent/SF % Rent $ 2,007 $ 2,008 % Inc Lease Starts Lease Ends 2009 2010 2011 2012 2013 2014 2015 2016
A1 Vacant-Proposed HyVee 34,500 $ 6.00 Vacant $ - $ - $ - $ 138,000 $ 207,000 $ 207,000 $ 207,000 $ 207,000
A2 Dollar Tree-Poposed HV In Line Gross 12,000 $ 69,000 $ 5.75 No $ 1,020,260 $ 1,050,712 2.98% 8/9/2005 8/31/2010 $ 69,000 $ 69,000 $ - $ 48,000 $ 72,000 $ 72,000 $ 72,000 $ 72,000 Note 1
A3 Vacant-Proposed HyVee 34,774 $ 6.00 Vacant $ - $ - $ - $ 139,096 $ 208,644 $ 208,644 $ 208,644 $ 208,644
B Herbergers Anchor Gross 55,282 $ 221,100 $ 4.00 2% above $11 M $ 7,334,394 $ 6,950,282 -5.24% 8/31/1989 1/31/2010 $ 221,100 $ 221,100 $ 227,733 $ 227,733 $ 227,733 $ 227,733 $ 227,733 $ 234,565 Note 2
C JC Penney Anchor Gross 34,372 $ 130,300 $ 3.79 1.5% above $6.5 M $ 4,969,028 $ 4,819,662 -3.01% 4/14/1990 4/30/2010 $ 130,300 $ 130,300 $ 154,674 $ 154,674 $ 154,674 $ 154,674 $ 154,674 $ 159,314 Note 3
2 Vanity In Line Gross 2,279 $ 35,910 $ 15.76 6% $ 427,124 $ 598,496 40.12% 7/23/2002 M-T-M $ 35,910 $ 35,910 $ 35,910 $ 35,910 $ 35,910 $ 36,987 $ 36,987 $ 36,987 Note 4
8 Maurices In Line Gross 5,000 $ 60,000 $ 7.18 5% above $1.2 M $ 760,164 $ 755,611 -0.60% 8/18/1990 1/31/2013 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000
9 Vacant In Line 1,600 $ 12.00 Vacant $ - $ - $ 19,200 $ 19,200 $ 19,200 $ 19,776 $ 19,776 $ 19,776 Note 5
10 TT Chicago Sandwich In Line Temp 706 $ 7,081 $ 10.03 No $ - $ - 0.00% 11/1/2007 M-T-M $ 7,081 $ 7,081 $ 7,294 $ 7,294 $ 7,512 $ 7,512 $ 7,512 $ 7,738 Note 6
12 Armed Forces Recruiting In Line Gross 1,907 $ 51,489 $ 27.00 No $ - $ - 0.00% 33,208 M-T-M $ 51,489 $ 51,489 $ 51,489 $ 51,489 $ 51,489 $ 51,489 $ 51,489 $ 51,489 Note 7
14 TT Donna's Country Crt In Line Temp 1,756 $ 7,200 $ 4.10 No $ - $ - 0.00% 39,447 M-T-M $ 7,200 $ 7,200 $ 7,200 $ 7,200 $ 8,780 $ 8,780 $ 8,780 $ 9,043 Note 8
16 Tradehome Shoes In Line Gross 2,235 $ 26,820 $ 12.00 5% > $536,000 $ 510,375 $ 620,816 21.64% 3/3/1990 1/31/2010 $ 26,820 $ 26,820 $ 26,820 $ 26,820 $ 26,820 $ 26,820 $ 26,820 $ 26,820 Note 9
18 Coach House Gifts/General In Line Gross 3,458 $ 41,392 $ 7.76 5%>$827845 $ 700,719 $ 668,579 -4.59% 4/4/1990 12/31/2010 $ 41,392 $ 41,392 $ 41,392 $ 42,634 $ 42,634 $ 42,634 $ 43,913 $ 43,913 Note 10
22 TT Cellular Specialist In Line Temp 638 $ 15,599 $ 24.45 10%>$156000 $ - $ - 0% 9/1/2008 M-T-M $ 15,599 $ 15,599 $ 15,599 $ 15,599 $ 15,599 $ 15,599 $ 15,599 $ 15,599 Note 11
24 Sears Portrait Studio In Line Gross 1,558 $ 33,533 $ 21.52 6%>$558,283 $ 228,490 $ 202,749 -11.27% 4/1/2002 M-T-M $ 33,533 $ 33,533 $ 33,533 $ 33,533 $ 33,533 $ 33,533 $ 33,533 $ 33,533 Note 12
26 Regis In Line Gross 900 $ 14,850 $ 16.50 6%>$247500 $ 247,818 $ 253,044 2.11% 4/4/1990 4/30/2010 $ 14,850 $ 14,850 $ 14,850 $ 14,850 $ 14,850 $ 14,850 $ 14,850 $ 15,296 Note 13
27 Theisen Vending Company In Line Temp 0 $ 4,394 $ - No $ - $ - 0.00% M-T-M M-T-M $ 4,394 $ 4,394 $ 4,394 $ 4,394 $ 4,394 $ 4,394 $ 4,394 $ 4,394 Note14
28 Hibbetts Sporting Goods In Line Gross 5,000 $ 47,500 $ 9.50 4%>$1,187,500 $ 740,123 $ 791,999 7.01% 10/22/2004 10/31/2009 $ 47,500 $ 47,500 $ 47,500 $ 47,500 $ 47,500 $ 47,500 $ 47,500 $ 47,500 Note15
36 Vacant In Line 3,592 $ 12.00 Vacant $ - $ - $ 43,104 $ 43,104 $ 43,104 $ 43,104 $ 43,104 Note 16
38 Bath & Body In Line Gross 2,395 $ 22,992 $ 9.60 8%>$287400 $ 716,200 $ 660,159 -7.82% 10/25/1997 M-T-M $ 22,992 $ 22,992 $ 22,992 $ 22,992 $ 22,992 $ 22,992 $ 23,682 $ 23,682 Note 17
40 Influent In Line M-T-M 2,794 $ 39,116 $ 14.00 No $ - $ - 0.00% 11/21/2005 M-T-M $ 39,116 $ 40,290 $ 40,290 $ 40,290 $ 40,290 $ 40,290 $ 41,498 $ 41,498 Note 18
44 Fresenius Medical Care In Line Gross 7,197 $ 64,773 $ 9.00 No $ - $ - 0.00% 4/15/2008 4/30/2013 $ 64,773 $ 64,773 $ 64,773 $ 64,773 $ 64,773 $ 66,716 $ 66,716 $ 66,716 Note 19
46 Iowa Hearing Aid Centers In Line Gross 986 $ 9,968 $ 10.11 No $ - $ - 0.00% 12/2/2006 12/31/2009 $ 9,968 $ 9,968 $ 9,968 $ 9,968 $ 9,968 $ 10,268 $ 10,268 $ 10,268 Note 20
48 Shoe Doctor In Line Gross 1,490 $ 11,995 $ 8.05 5%>$240000 $ - $ - 0.00% 4/4/1990 M-T-M $ 11,995 $ 11,995 $ 11,995 $ 11,995 $ 11,995 $ 11,995 $ 11,995 $ 11,995 Note 21
52 Vacant 570 $ 15.00 Vacant $ - $ - $ 8,550 $ 8,550 $ 8,550 $ 8,550 $ 8,550 $ 8,550 Note 22
54 GNC In Line Gross 895 $ 15,215 $ 17.00 5%>$304,300 $ 203,674 $ 209,652 2.94% 7/8/2004 7/31/2009 $ 15,215 $ 15,215 $ 15,215 $ 15,215 $ 15,215 $ 15,215 $ 16,128 $ 16,128 Note 23
56 Country Friends In Line Temp 1,366 $ 7,199 $ 5.27 No $ - $ - 0.00% M-T-M M-T-M $ 7,199 $ 7,559 $ 7,937 $ 8,334 $ 8,750 $ 9,188 $ 9,647 $ 10,129 Note 24
58 Vacant - Propsd Hastings 3,337 $ 12.00 Vacant $ - $ - $ - $ - $ 40,044 $ 40,044 $ 40,044 $ 40,044 Note 25
60 Nail Time In Line Gross 1,000 $ 25,900 $ 25.90 8%>$323750 $ 33,549 $ 34,537 2.94% 11/4/1998 9/30/2013 $ 25,900 $ 25,900 $ 25,900 $ 25,900 $ 25,900 $ 25,900 $ 25,900 $ 25,900 Note 26
62 Claires In Line Gross 1,401 $ 30,822 $ 22.00 8%>$385,275 $ 396,721 $ 359,496 -9.38% 1/24/2006 1/31/2016 $ 30,822 $ 30,822 $ 30,822 $ 30,822 $ 30,822 $ 30,822 $ 30,822 $ 30,822 Note 27
66 Gardner Collier Jewerly In Line Gross 1,825 $ 26,006 $ 14.25 4%>$650,156. $ 367,114 $ 373,551 1.75% 4/2/1990 4/30/2009 $ 26,006 $ 26,006 $ 26,006 $ 26,006 $ 26,006 $ 26,006 $ 26,006 $ 26,006 Note 28
68 Vacant 803 $ 15.00 $ - $ - $ 12,045 $ 12,045 $ 12,045 $ 12,045 $ 12,045 $ 12,045 Note 29
72 Radio Shack In Line Gross 1,996 $ 24,451 $ 11.52 3%>$815,032 $ 619,161 $ 652,118 5.32% 4/7/1990 6/30/2011 $ 24,451 $ 24,451 $ 24,451 $ 24,451 $ 24,451 $ 24,451 $ 24,451 $ 24,451 Note 30
76 Vacant- Proposed Buckle 5,988 $ 10.00 $ - $ - $ - $ 59,880 $ 59,880 $ 59,880 $ 59,880 $ 59,880 Note 31
80 Christian Book & Gift In Line Gross 3,000 $ 36,750 $ 12.25 No $ - $ - 0.00% $ 36,750 $ 36,750 $ 36,750 $ 36,750 $ 36,750 $ 36,750 $ 36,750 $ 36,750 Note 32
82 Christopher & Banks In Line Gross 3,811 $ 53,354 $ 14.00 5%>$1067080 $ 545,953 $ 529,618 -2.99% 10/30/1991 1/31/2012 $ 53,354 $ 53,354 $ 53,354 $ 53,354 $ 53,354 $ 53,354 $ 53,354 $ 53,354 Note 33
100 Vacant-Propsd Dollar Tree 23,500 $ 5.75 $ - $ - $ - $ 126,125 $ 126,125 $ 126,125 $ 126,125 $ 126,125 Note 34
101 Good Will In Line Gross 6,350 $ 63,500 $ 10.00 No $ - $ - 0.00% 3/12/2004 3/31/2010 $ 63,500 $ 63,500 $ 63,500 $ 63,500 $ 63,500 $ 63,500 $ 63,500 $ 63,500 Note 35
103 Anytime Fitness In Line Gross 3,600 $ 41,400 $ 11.50 No $ - $ - 0.00% 3/6/2009 3/31/2014 $ 41,400 $ 41,400 $ 41,400 $ 41,400 $ 41,400 $ 41,400 $ 41,400 $ 41,400 Note 36
$ 1,239,608 $ 1,243,152 $ 1,243,534 $ 1,799,378 $ 2,004,186 $ 2,008,519 $ 2,013,069 $ 2,025,957

Annual Base Rent Income Extracts from actual Income and Expense Statements
Occupied Units 61% 167,197 $ 1,239,608 $ 7.41 Base rent $ 1,239,608 Inline $ 14,145 ATM $ 104
Straight Line Income $ 12,630 $ 0.08 Straight Line $ 12,630 Entertainment $ 1,966 Trash $ 900
Percentage Rent Income $ 43,305 $ 0.26 Percentage Rent $ 43,305 Show $ 2,050 Sign i $ 2,344
Overage Rental Income $ 34,925 $ 0.21 Overage Rent $ 34,925 Parking $ 1,500 Ancillary $ 541
Misc. Income $ 105,908 $ 0.63 Storage $ 6,225 Llate fees $ 225
Gross Rental Income $ 1,436,377 $ 8.59 Total Income $ 1,330,468 Special $ 21,152 Misc $ 79
CAM & Net Recovery $ 545,361 $ 3.26 Other $ 2,013 Total Other Income $ 105,908
Gross Potential Income @ 61% Occupancy $ 1,981,738 $ 11.85 Misc rent $ 7,608 Coke Machine $ 8,537
Vacant 39% 108,664 Kiosk $ 35,313 Utilities Temp Tenants $ 1,206
Total Space 100% 275,861

Projected Vacancies actual and during revitalization

Vacant 2009 2010 2011 2012
A-1 34,500 34,500 34,500
A-2 12,000
A-3 34,774 34,774 34,774
9 1,600 1,600
36 3,592 3,592 3,592
52 570 570
58 3,337 3,337 3,337 3,337
68 803 803
76 5,998 5,998 5,998
 100 23,500 23,500 23,500
Total Square Feet 108,674 108,674 117,701 3,337
Ratio 39% 39% 43% 1%

Actual Actual Revitalization Proforma

Years in Analysis 2009 2010 2011 2012 2013 2014 2015 2016
Expenses from Operations Extracted from Actual Income and Expense Statements Occupancy SF 167,187 167,187 158,160 272,524 275,861 275,861 275,861 275,861
Item Amount % to EGI $/foot Year One Year Two Year Three Line Item Quincy Mall I Quincy Mall III Combined Vacancy SF 108,674 108,674 117,701 3,337 - - - -
Total Cam Charges $ 646,686 $ - $ - Total Cam Expense $ 600,301 $ 46,385 646,686 Total SF 275,861 275,861 275,861 275,861 275,861 275,861 275,861 275,861
Total Other $ 30,140 $ - $ - Total Other $ 27,428 $ 2,712 30,140 Vacancy used for Analysis 39% 39% 43% 20% 20% 20% 20% 20%
Real Estate Taxes $ 563,105 $ - $ - Real Estate Taxes $ 491,174 $ 71,931 563,105
Insurance $ 83,811 $ - $ - Insurance $ 75,999 $ 7,812 83,811
Non-reimbursables $ 50,509 $ - $ - Non-reimbursables $ 40,443 $ 10,066 50,509
$ - $ - Totals $ 1,235,345 $ 138,906 1,374,251 $ 4.98
Total Expenses $ 1,374,251 96% $ 4.98 $ 1,374,251 $ 1,401,736 $ 1,443,788.10 Acquisition and Revitalization Proforma
Total Tenant Rental $ 1,239,608 $ 1,243,152 $ 1,243,534 $ 1,799,378 $ 2,004,186 $ 2,008,519 $ 2,013,069 $ 2,025,957
Other Income $ 196,768 $ 196,768 $ 196,768 $ 287,900 $ 320,670 $ 321,363 $ 322,091 $ 324,153
CAM and Nets Collected Per Tenant Rent Roll 2008 Gross Rental Income $ 1,436,377 $ 1,439,920 $ 1,440,303 $ 2,087,278 $ 2,324,855 $ 2,329,882 $ 2,335,159 $ 2,350,111
Tenant Square Feet CAM + Nets $/sf 2008 2009 2010 Vacancy Percentage 39% 39% 43% 20% 20% 20% 20% 20%
A1 Vacant-Proposed HyVee 34,500 CAM CAM CAM Vacancy in Dollars Used Actual from Operations $ 417,456 $ 464,971 $ 465,976 $ 467,032 $ 467,032
A2 Dollar Tree-Poposed HV 12,000 $ - $ - Effective Gross Income $ 1,436,377 $ 1,439,920 $ 1,440,303 $ 1,669,823 $ 1,859,884 $ 1,863,905 $ 1,868,128 $ 1,883,079
A3 Vacant-Proposed HyVee 34,774 CAM Recovery $ 545,361 $ 545,361 $ 545,361 $ 1,149,424 $ 1,183,906 $ 1,219,423 $ 1,256,006 $ 1,293,686
B Herbergers 55,282 $ 44,254 $ 0.80 Gross Potential $ 1,981,738 $ 1,985,281 $ 1,985,664 $ 2,819,246 $ 3,043,791 $ 3,083,329 $ 3,124,134 $ 3,176,765
C JC Penney 34,372 $ 16,809 $ 0.49
2 Vanity 2,279 $ - $ - Expenses Ratio 69% 71% 73% 52% 49% 50% 50% 50%
8 Maurices 5,000 $ 30,799 $ 6.16 Expenses in Dollars $ 1,374,251 $ 1,401,736 $ 1,443,788 $ 1,472,664 $ 1,502,117 $ 1,532,159 $ 1,562,803 $ 1,594,059
9 Vacant 1,600
10 TT Chicago Sandwich 706 $ - $ - Net Income $ 607,487 $ 583,545 $ 541,876 $ 1,346,582 $ 1,541,673 $ 1,551,169 $ 1,561,331 $ 1,582,706
12 Armed Forces Recruiting 1,907 $ - $ -
14 Donna's Country Crt 1,756 $ - $ - cam recovery billings $ 182,608 Purchase Scenario First Year NOI (Prior to Revitalization)
16 Tradehome Shoes 2,235 $ 13,508 $ 6.04 cam rec. accrual $ 24,446
18 General Novelty 3,458 $ 19,962 $ 5.77 mgmt fee rec $ 2,709 Estimated Value @ 10% $ 6,074,869
22 TT Cellular Specialist 638 $ - trash $ 18,131 12% $ 5,062,391
24 Sears Portrait Studio 1,558 $ 28,015 $ 17.98 ins billings $ 18,099 14% $ 4,339,192
26 Regis 900 $ 8,009 $ 8.90 ins accrual $ 22,057 15% $ 4,049,913
27 Theisen Vending 0 tax billings $ 218,581 18% $ 3,374,927
28 Hibbetts Sporting Goods 5,000 $ 24,525 $ 4.91 tax accrual $ 712
36 Vacant 3,592 utility $ 8,061
38 Bath & Body 2,395 $ 3,001 $ 1.25 cam under/over $ 49,958
40 Influent 2,794 $ 545,361
44 Fresenius Medical Care 7,197 $ 30,443 $ 4.23
46 Iowa Hearing Aid Center 986 $ 5,305 $ 5.38
48 Shoe Doctor 1,490 $ -
52 Vacant 570
54 GNC 895 $ 5,627 $ 6.29
56 Country Friends 1,366 $ - 61% pays for 40% of total expenses Terminal Value Calculator for Discounted Cash Flow method
58 Vacant - Propsd Hastings 3,337 PARTICULARS DATA
60 Nail Time 1,000 $ 11,181 $ 11.18 Profit in the terminal year $ 607,847
62 Claires 1,401 $ 8,898 $ 6.35 53% is covered by operations Growth rate % 0%
66 Gardner Collier Jewerly 1,825 $ 14,714 $ 8.06 Discount rate % Market Capitalization 12%
68 Vacant 803 Number of years to last year of DCF 1
72 Radio Shack 1,996 $ 14,198 $ 7.11 Expected rate of Return Investor 12%
76 Vacant- Proposed Buckle 5,988
80 Christian Book & Gift 3,000 $ - Item Value Year
82 Christopher & Banks 3,811 $ 20,453 $ 5.37 Terminal Vaue EOY $ 5,065,392 1
100 Vacant-Propsd Dollar Tree 23,500 Discounted Value BOY $ 4,522,671 PV
101 Good Will 6,350 $ 1,588 $ 0.25
103 Anytime Fitness 3,600 $ 16,704 $ 4.64
61% Occupied Space 167,197 $ 317,993 $ 1.90
Other $ 227,368 $ 1.36
Total CAM + Nets Collected $ 545,361 $ 3.26 40% of Expenses
39% Vacant Space 108,664
100% Total SF 275,861
 2017 2018
275,861 275,861

275,861 275,861
20% 20%

$ 2,127,255 $ 2,233,618
$ 340,361 $ 357,379
$ 2,467,616 $ 2,590,997
20% 20%
$ 493,523 $ 518,199
$ 1,974,093 $ 2,072,797
$ 1,332,497 $ 1,372,472
$ 3,306,590 $ 3,445,269

49% 48%
$ 1,625,940 $ 1,658,459

$ 1,680,650 $ 1,786,811
Table of Contents Dashboard Input - Cost Analysis
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Project Development Budget - Site Plan # 3 Fill cells that are Blue
Project Location:
Project Name: Black calculates automatically
Acres: 25.00 1,089,000
GLA: 275,861 275,861
Out Lots: 1

HARD COSTS: Identify Lot Acreage Square Feet Cost/SF Land Cost to Impv. Cost
Land 25 1,089,000 $ - $ - $ - $0 $ -
Improvements 275,861 $ 16.39 $ 4,522,671.13 $ 4,522,671

Overall Site Development Work

Utilities/Connect $ 0.02 $ 20,000
Site Improvements $ 0.18 $ 200,000
MEP $ 0.01 $ 13,000
Geotech $ 0.01 $ 10,000
TCEQ $ 0.02 $ 25,000
City Fees $ 0.03 $ 30,000
$ - $ -
$ - $ -
$ - $ -
$ - $ -
Total Site Costs $ 1.08 $ 298,000 $ 220,000 $ 298,000
Hard Costs
Improvements 275,861 $ 10.00 $ 2,758,610
$ -
$ -
$ - $ -
$ - $ -
275,861 $ 2,758,610
Subtotal Hard Costs $ 10.00 $ 2,758,610 $ 2,758,610

FINANCING
Loan Fee $ 1,900,000 1.00% $ 19,000

Subtotal $ 0.07 $19,000 $ 19,000

SOFT COSTS:
Architectural $ 0.11 $ 29,000
Engineering $ 0.15 $ 40,000
Real Estate Taxes $ 0.05 $ 15,000
Legal $ 0.04 $ 10,000
Contingency $ 0.30 $ 82,758
Closing Costs $ - $ -
Development Fee $ 1.14 $ 313,561
Administration/Misc. $ 0.30 $ 82,758
Marketing, Mgmt, Misc $ 0.00 $ 500
Interest Carry $ 0.36 $ 99,750
Leasing Fees $ 150,000
TI Allowance and Tenants Rep. $ 2,758,610
$ 12.98 $ 3,581,938 $3,581,938

Total Project Development Costs $ 40.53 $ 11,180,219

Loan Request 80% $ 8,944,175
TIF 0%
Equity 20% $ 2,236,044
100% $ 11,180,219
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2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Unit Mix S.F. YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10
Gross Rental Income 275,861 $ 1,239,608 $ 1,243,152 $ 1,243,534 $ 1,799,378 $ 2,004,186 $ 2,008,519 $ 2,013,069 $ 2,025,957 $ 2,127,255 $ 2,233,618 $ 2,345,299
Other Income $ 196,768 $ 196,768 $ 196,768 $ 287,900 $ 320,670 $ 321,363 $ 322,091 $ 324,153 $ 340,361 $ 357,379
Gross Rental Income $ 1,436,377 $ 1,439,920 $ 1,440,303 $ 2,087,278 $ 2,324,855 $ 2,329,882 $ 2,335,159 $ 2,350,111 $ 2,467,616 $ 2,590,997
Vacancy $ - $ - $ - $ 417,456 $ 464,971 $ 465,976 $ 467,032 $ 467,032 $ 493,523 $ 518,199
Effective Gross Income $ 1,436,377 $ 1,439,920 $ 1,440,303 $ 1,669,823 $ 1,859,884 $ 1,863,905 $ 1,868,128 $ 1,883,079 $ 1,974,093 $ 2,072,797
CAM & Net Recovery $ 545,361 $ 545,361 $ 545,361 $ 1,149,424 $ 1,183,906 $ 1,219,423 $ 1,256,006 $ 1,293,686 $ 1,332,497 $ 1,372,472
Gross Potential $ 1,981,738 $ 1,985,281 $ 1,985,664 $ 2,819,246 $ 3,043,791 $ 3,083,329 $ 3,124,134 $ 3,176,765 $ 3,306,590 $ 3,445,269
Expenses $ 1,374,251 $ 1,401,736 $ 1,443,788 $ 1,472,664 $ 1,502,117 $ 1,532,159 $ 1,562,803 $ 1,594,059 $ 1,625,940 $ 1,658,459

NET OPERATING INCOME $ 607,487 $ 583,545 $ 541,876 $ 1,346,582 $ 1,541,673 $ 1,551,169 $ 1,561,331 $ 1,582,706 $ 1,680,650 $ 1,786,811 $ 1,278,383
Tenth Year NOI $ 1,822,547
Terminal Cap Rate 12%
Estimated Sales Price $ 15,187,890
Less: 6% Sales Costs $ (911,273)
Estimate of Reversion $ 14,276,617
Gross Cash Flows & Reversion $ 607,487 $ 583,545 $ 541,876 $ 1,346,582 $ 1,541,673 $ 1,551,169 $ 1,561,331 $ 1,582,706 $ 1,680,650 $ 16,063,427

Present Values $ 11,033,277

Estimated Purchase Price $ 4,522,671
Max Loan to Purchase @ 75% $ 3,392,003
Equity Required $ 1,130,668

Present PV $ 11,033,277
Max Loan @ 75% of NPV $ 8,274,958
Equity Required $ 2,758,319

Debt Service Annual $287,688 $287,688 $287,688 $287,688 $287,688 $287,688 $287,688 $287,688 $287,688 $287,688
Cash Flows (average) $ 319,799 $ 295,858 $ 254,188 $ 1,058,895 $ 1,253,986 $ 1,263,482 $ 1,273,643 $ 1,295,019 $ 1,392,962 $ 1,499,123
Debt Coverage Ratio (average) 2.11 2.03 1.88 4.68 5.36 5.39 5.43 5.43 5.84 6.21
Break-even Occupancy (average) 84% 85% 87% 62% 59% 59% 59% 59% 58% 56%
Simple Cash on Cash 28.28% 26.17% 22.48% 93.65% 110.91% 111.75% 112.65% 114.54% 123.20% 132.59%
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REAL ESTATE INVESTMENT ANALYSIS
Cost/Purchase 100% $ 4,339,192 Value
Requested Loan Amount 75% $ 3,254,394 Market Cost Capit. of NOI
Down Payment: 20% $ 1,084,798 $ - $ 4,339,192 $ 11,033,277 Value
TIF $ - #DIV/0! $ 1,130,668 $ 2,758,319 Equity
Partnership $ 1,084,798 #DIV/0! $ 3,208,524 $ 8,274,958 Loan
Interest Rate on Loan: 7.00% #DIV/0! 74% 75% Ratio
Term of Loan: Years 300
Improvement Ratio: % of bldg to total Property Value n/a
Vacancy/Collection losses: 0%
No. Yrs. of Depreciation: (39.5 for Commercial)) 39.5
Scheduled Annual Gross Rental Income: $ 1,439,920

RESULTS 5 year sale

Cost $ 4,339,192 Interest % 7.00% Land #VALUE! $ -
Equity $ 1,084,798 No. Yrs. 300 Improvement n/a $ 4,339,192
Loan Amount $ 3,254,394 Mo. P&I $ 23,974 No. Yrs. 39.5
Buyer Costs $ - Annual P&I $ 287,688 Deprec/Year $ 109,853
Cap Improvements $ -

ANNUAL OPERATING INCOME Yr.1 Yr. 2 Yr. 3 Yr. 4 Yr. 5

Increase in income 2.00% 2.00% 2.00% 2.00% 2.00%
Gross Rental Income $ 1,239,608 $ 1,243,152 $ 1,243,534 $ 1,799,378 $ 2,004,186
Other Income $ 196,768 $ 196,768 $ 196,768 $ 287,900 $ 320,670
Gross Rental Income $ 1,436,377 $ 1,439,920 $ 1,440,303 $ 2,087,278 $ 2,324,855
Vacancy $ - $ - $ - $ 417,456 $ 464,971
EFFECTIVE GROSS INCOME $ 1,436,377 $ 1,439,920 $ 1,440,303 $ 1,669,823 $ 1,859,884
Cam & Net Recovery $ 545,361 $ 545,361 $ 545,361 $ 1,149,424 $ 1,183,906
Gross Potential $ 1,981,738 $ 1,985,281 $ 1,985,664 $ 2,819,246 $ 3,043,791

ANNUAL OPERATING EXPENSES Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5

(Increase in expenses) 0.00% 0.00% 0.00% 0.00%

TOTAL OPERATING EXPENSES $ 1,374,251 $ 1,401,736 $ 1,443,788 $ 1,472,664 $ 1,502,117

Op. Expenses as % of EGI 69% 71% 73% 52% 49%
NET OPERATING Income $ 607,487 $ 583,545 $ 541,876 $ 1,346,582 $ 1,541,673

CASH FLOW (BEFORE TAXES) Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5

Net Operating Income $ 607,487 $ 583,545 $ 541,876 $ 1,346,582 $ 1,541,673
-Yrly. P & I $ 287,688 $ 287,688 $ 287,688 $ 287,688 $ 287,688
Reserve For Replacements 0.00% $ - $ - $ - $ - $ -
CASH FLOW (BEFORE TAXES & Reserve For Replacement) $ 319,799 $ 295,858 $ 254,188 $ 1,058,895 $ 1,253,986

9
TAX BENEFIT Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5
Net Operating Income $ 607,487 $ 583,545 $ 541,876 $ 1,346,582 $ 1,541,673
-Annual Interest $ 373,406 $ 232,045 $ 228,023 $ 223,710 $ 219,085
-Annual Depreciation $ 109,853 $ 109,853 $ 109,853 $ 109,853 $ 109,853
Taxable Income $ 124,228 $ 241,647 $ 204,000 $ 1,013,020 $ 1,212,736
Investor's Tax Bracket 38% 38% 38% 38% 38% 38%
TAX BENEFIT $ (47,207) $ (91,826) $ (77,520) $ (384,948) $ (460,840)
Reserve For Replacement $ - $ - $ - $ - $ -
Cash Flow After Tax Benefit $ 77,022 $ 149,821 $ 126,480 $ 628,072 $ 751,896

MORTGAGE PRINCIPAL REDUCTION Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5

Start of Yr. Balance
(Internal mathematical $ 3,254,394 $
3,489,654 3,340,112 $
3,741,922 3,284,469
4,012,426 $ 3,224,805 $$
4,302,484 3,160,826
4,613,511
-End of Yr. Balance $ 3,340,112 $ 3,284,469 $ 3,224,805 $ 3,160,826 $ 3,092,223
TOTAL PRINCIPAL REDUCTION $ (85,718) $ 55,643 $ 59,665 $ 63,978 $ 68,603

PROPERTY APPRECIATION (Cost) Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5

(Increase nAnnually) 4% 4% 4% 4% 4% 4%
Start of Year Value $ 4,339,192 $ 4,512,760 $ 4,693,270 $ 4,881,001 $ 5,076,241
End of Year Value $ 4,512,760 $ 4,693,270 $ 4,881,001 $ 5,076,241 $ 5,279,291
TOTAL ANNUAL APPRECIATION $ 173,568 $ 180,510 $ 187,731 $ 195,240 $ 203,050

FINANCIAL ANALYSIS
RETURN ON INITIAL EQUITY (Assume Initial Equity = Down Payment + Capital Improvement)
Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5
Cash Flow (Before Taxes) $ 319,799 $ 295,858 $ 254,188 $ 1,058,895 $ 1,253,986
Tax Benefit $ (47,207) $ (91,826) $ (77,520) $ (384,948) $ (460,840)
Debt Reduction $ (85,718) $ 55,643 $ 59,665 $ 63,978 $ 68,603
Appreciation $ 173,568 $ 180,510 $ 187,731 $ 195,240 $ 203,050
RETURN ON INITIAL EQUITY $ $ 360,442 $ 440,185 $ 424,064 $ 933,165 $ 1,064,799

INITIAL EQUITY:
Down Payment $ 1,084,798 $ 1,084,798 $ 1,084,798 $ 1,084,798 $ 1,084,798
Capital Improvement $ - $ - $ - $ - $ -
TOTAL INITIAL EQUITY $ 1,084,798 $ 1,084,798 $ 1,084,798 $ 1,084,798 $ 1,084,798
% RETURN ON INITIAL EQUITY 33% 41% 39% 86% 98%

RETURN ON TOTAL EQUITY (Assume Total Equity = Start of Year Value - Start of Year Loan Balance)
Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5
Cash Flow (Before Taxes) $ 319,799 $ 295,858 $ 254,188 $ 1,058,895 $ 1,253,986
Tax Benefit $ (47,207) $ (91,826) $ (77,520) $ (384,948) $ (460,840)
Debt Reduction $ (85,718) $ 55,643 $ 59,665 $ 63,978 $ 68,603
Appreciation $ 173,568 $ 180,510 $ 187,731 $ 195,240 $ 203,050
$ RETURN ON TOTAL EQUITY $ 360,442 $ 440,185 $ 424,064 $ 933,165 $ 1,064,799

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TOTAL EQUITY: (Appreciation to Year end Debt Balance)
Beginning of Year Value inc. Cap. Imp. (3%) $ 4,339,192 $ 4,512,760 $ 4,693,270 $ 4,881,001 $ 5,076,241
Begining of Year Balance $ 3,254,394 $ 3,340,112 $ 3,284,469 $ 3,224,805 $ 3,160,826
TOTAL EQUITY $ 1,084,798 $ 1,172,648 $ 1,408,801 $ 1,656,196 $ 1,915,415

% RETURN ON TOTAL EQUITY 33% 38% 30% 56% 56%

ESTIMATED SALE PROCEEDS (AFTER EXPENSES & TAXES)

Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5
ADJUSTED COST BASIS
Original Basis $ 4,339,192 $ 4,339,192 $ 4,339,192 $ 4,339,192 $ 4,339,192
+ Capital Improvements` $ - $ - $ - $ - $ -
+ Sales Costs 3% $ 135,383 $ 140,798 $ 146,430 $ 152,287 $ 158,379
- Accum. Depreciation $ 109,853 $ 219,706 $ 329,559 $ 439,412 $ 549,265
= ADJUSTED COST BASIS $ 4,364,722 $ 4,260,284 $ 4,156,063 $ 4,052,067 $ 3,948,306

True CAPITAL GAIN Less Depreciation

Sales Price 14% $ 4,339,192 $ 4,168,181 $ 3,870,540 $ 9,618,445 $ 11,011,953
Non adjusted cost $ 4,474,575 $ 4,479,990 $ 4,485,622 $ 4,491,479 $ 4,497,571
True Gain or loss $ (135,383) $ (311,810) $ (615,082) $ 5,126,966 $ 6,514,383

CAPITAL GAIN for tax purposes

Sales Price $ 4,512,760 $ 4,693,270 $ 4,881,001 $ 5,076,241 $ 5,279,291
- Adjusted Cost Basis $ 4,364,722 $ 4,260,284 $ 4,156,063 $ 4,052,067 $ 3,948,306
CAPITAL GAIN (tax purposes) $ 148,038 $ 432,986 $ 724,938 $ 1,024,174 $ 1,330,985

CAPITAL GAIN TAX

Capital Gain for tax purposes $ 148,038 $ 432,986 $ 724,938 $ 1,024,174 $ 1,330,985
= Tax on Capital Gain $ 387 $ (7,435) $ (40,627) $ 1,135,246 $ 1,440,193

EST. NET SALE PROCEEDS (after tax)

Sales Price $ 4,512,760 $ 4,693,270 $ 4,881,001 $ 5,076,241 $ 5,279,291
- Sales Costs $ 135,383 $ 140,798 $ 146,430 $ 152,287 $ 158,379
- Ending Loan Balance $ 3,340,112 $ 3,284,469 $ 3,224,805 $ 3,160,826 $ 3,092,223
= Proceeds Before Taxes $ 1,037,265 $ 1,268,003 $ 1,509,766 $ 1,763,127 $ 2,028,689
- Capital Gain Tax $ 387 $ (7,435) $ (40,627) $ 1,135,246 $ 1,440,193
EST NET SALE PROCEEDS (afterTax) $ 1,037,652 $ 1,275,438 $ 1,550,393 $ 627,881 $ 588,496

Yearly Cash Flow Summary

Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5
Net Operating Income $ 607,487 $ 583,545 $ 541,876 $ 1,346,582 $ 1,541,673
First Mortgage Annual Payment $ 287,688 $ 287,688 $ 287,688 $ 287,688 $ 287,688
Cash Flow after Debt Service $ 319,799 $ 295,858 $ 254,188 $ 1,058,895 $ 1,253,986 $ 3,182,725
Debt Service Coverage Ratio 2.11 2.03 1.88 4.68 5.36

11
Break even analysis for investment property

Rentable area 275,861

Potential income $ 1,243,152
Annual operating expenses #REF!
Annual debt service $ 287,688
Breakeven #REF!

Net Present Value Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Yr. 6 Yr. 7 Yr. 8 Yr. 9 Yr. 10
Tenth Year NOI
Terminal Cap Rate 14.0%
Estimated Sales Price
Less: 3% Sales Costs $ 12,029,211
Estimate of Reversion $ 1,702,132
Gross Cash Flows & Reversion $ 607,487 $ 583,545 $ 541,876 $ 1,346,582 $ 1,541,673 $ 1,572,507 $ 1,603,957 $ 1,636,036 $ 1,668,757 $ 13,731,343
Present Values at 7.0% Discount (10 years) $ 9,093,677

Reversion Net Operating Income $ 1,541,673

Terminal Cap Rate 10.00%
Gross Sales Price (Year 5) $ 15,416,735
Selling Costs 3%
Net Sales Price $ 14,954,233
Remaining First Mortgage Balance $ 3,092,223
Capital Loan Balance $ -
Return Of Equity $ 1,084,798
Capital Gain $ 10,777,211
Total Cash after P/O of debt $ 11,862,009 Tax Bracket
After Tax Impact Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Total 30% 35% 40% 45% 50%
Net Operating Income $ 607,487 $ 583,545 $ 541,876 $ 1,346,582 $ 1,541,673 Benefit $ 838,688 $ 978,470 $ 1,118,251 $ 1,258,033 $ 1,397,815
-Annual Interest $ 373,406 $ 232,045 $ 228,023 $ 223,710 $ 219,085
-Annual Depreciation $ 109,853 $ 109,853 $ 109,853 $ 109,853 $ 109,853
Taxable Income $124,228 $241,647 $204,000 $1,013,020 $1,212,736 $2,795,631

Five Year Leveraged IRR Analysis

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Cash Flow after Debt Service $ 319,799 $ 295,858 $ 254,188 $ 1,058,895 $ 1,253,986 $ 3,182,725
Net Sales Price $ 14,954,233
Remaining Mortgage $ (3,092,223)
Equity $ 1,084,798
Net Cash Flow Less Equity 73.30% $ (1,084,798) $ 319,799 $ 295,858 $ 254,188 $ 1,058,895 $ 1,253,986 $ 15,044,734 73.30%
After Tax + Captial Gains 30.92% $ (3,182,725) $ 77,022 $ 149,821 $ 126,480 $ 628,072 $ 751,896 $ 12,946,807 30.92%
Cash on Cash Return
Five Year Leveraged IRR (Project) #VALUE!
Cash On Cash Return (Accumulative) 293%
Thisreportisbasedoncertainassumptions.Theprojectionsareestimatesonly
Anyoneusingorrelyingonthisreportisadvisedtoseekcompetentlegal,financial,and/ortaxadvice.

12
$ 1,736,175
14%
12,401,248
(372,037)

$9,093,677

13
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Terms of Financing & Amortization

Rate 7.00%
Years 25
Payments/year 12
Total payments 300
Loan Amount $3,392,003
Payments Per Month Per Year Effective Rate Constant test for constant calculation
Interest $ 19,787 $ 237,440 7.00% 0.07000000 Pymt (Int. Rate/12,Term*12,-1)*12
Principal $ 4,187 $ 50,247 1.48% 0.01481350
Total $ 23,974 $ 287,688 8.48% 0.0848135 0.08481%
Principal Interest Total Equity Build-up Annually)
EOY 1 $ 3,340,112 $ 53,880 $ 233,808 $ 287,688 $ 53,880 1.61%
EOY 2 $ 3,284,469 $ 57,775 $ 229,913 $ 287,688 $ 57,775 1.76%
EOY 3 $ 3,224,805 $ 61,951 $ 225,736 $ 287,688 $ 61,951 1.92%
EOY 4 $ 3,160,826 $ 66,430 $ 221,258 $ 287,688 $ 66,430 2.10%
EOY 5 $ 3,092,223 $ 71,232 $ 216,456 $ 287,688 $ 71,232 2.30%
EOY 6 $ 3,018,661 $ 76,381 $ 211,306 $ 287,688 $ 76,381 2.53%
EOY 7 $ 2,939,781 $ 81,903 $ 205,785 $ 287,688 $ 81,903 2.79%
EOY 8 $ 2,855,198 $ 87,824 $ 199,864 $ 287,688 $ 87,824 3.08%
EOY 9 $ 2,764,501 $ 94,173 $ 193,515 $ 287,688 $ 94,173 3.41%
EOY 10 $ 2,667,247 $ 100,980 $ 186,707 $ 287,688 3.79%
EOY 11 $ 2,562,963 $ 108,280 $ 179,407 $ 287,688 21.37% % paid off
EOY 12 $ 2,451,141 $ 116,108 $ 171,580 $ 287,688
EOY 13 $ 2,331,234 $ 124,501 $ 163,186 $ 287,688
EOY 14 $ 2,202,660 $ 133,501 $ 154,186 $ 287,688
EOY 15 $ 2,064,791 $ 143,152 $ 144,535 $ 287,688
EOY 16 $ 1,916,955 $ 153,501 $ 134,187 $ 287,688
EOY 17 $ 1,758,433 $ 164,597 $ 123,090 $ 287,688
EOY 18 $ 1,588,450 $ 176,496 $ 111,192 $ 287,688
EOY 19 $ 1,406,180 $ 189,255 $ 98,433 $ 287,688
EOY 20 $ 1,210,733 $ 202,936 $ 84,751 $ 287,688
EOY 21 $ 1,001,158 $ 217,607 $ 70,081 $ 287,688
EOY 22 $ 776,432 $ 233,337 $ 54,350 $ 287,688
EOY 23 $ 535,461 $ 250,205 $ 37,482 $ 287,688
EOY 24 $ 277,070 $ 268,293 $ 19,395 $ 287,688
EOY 25 $ (0) $ 287,688 $ (0) $ 287,688
EOY 26 $ (297,100) $ 308,485 $ (20,797) $ 287,688
EOY 27 $ (615,676) $ 330,785 $ (43,097) $ 287,688
EOY 28 $ (957,283) $ 354,698 $ (67,010) $ 1,516,993
EOY 29 $ (1,323,585) $ 380,339 $ (92,651) $ 287,688
EOY 30 $ (1,716,366) $ 394,614,993,360 $ (394,614,705,672) $ 287,688
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2. Asset Description

IDENTIFICATION OF THE SUBJECT PROPERTY

SUMMARY OF SALIENT FACTS AND CONCLUSIONS

PROPERTY LOCATION Lakeview Site

LAND AREA 1.5 Acres

GROSS BUILDING AREAS: 11,000 square feet

5,000 square feet outside play area

ZONING DESIGNATION

CONCLUSIONS
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Financials - Five-Year Leveraged IRR Analysis Based on Cost of Improvements plus Land
Assumptions:
Lease Space 275,861
% Leased 100%
Loan % 7.00%
Loan to Value #REF!
Term - Years 25
Foot Print Sq/Ft 275,861 Based On Cost
Lease Term(s) 15 Loan To Cost
Renewals Two - Five Yr. Requested Loan Amt. 49% $ 3,254,394
CAP rate 8% Other 0% $ -
Partnership Contribution 16% $ 1,084,798
Building Construction Costs Total Source of Funds 65% $ 4,339,192
Hard Costs $3,056,610
Soft Costs $3,600,938

Land $0
Total $ 6,657,548
First Mortgage
Mortgage Amount $ 3,254,394
Interest Rate 7.00%
Amortization Period 25
Loan Amount Year 1 Year 2 Year 3 Year 4 Year 5
Beginning Balance $ 3,254,394 $ 3,340,112 $ 3,284,469 $ 3,222,518 $ 3,156,088
Annual Payments $ 287,688 $ 287,688 $ 287,688 $ 287,688 $ 287,688
Portion to Interest $ 233,808 $ 229,913 $ 225,736 $ 221,258 $ 216,456
Portion to Principal $ 53,880 $ 57,775 $ 61,951 $ 66,430 $ 71,232
Ending Balance $ 3,340,112 $ 3,284,469 $ 3,222,518 $ 3,156,088 $ 3,084,856
Revenue Year 1 Year 2 Year 3 Year 4 Year 5
Gross Annual Rent $ 1,239,608 $ 1,243,152 $ 1,243,534 $ 1,799,378 $ 2,008,519
Vacancy $ 196,768 $ 196,768 $ 196,768 $ 287,900 $ 320,670
Effective Gross Income $ 1,436,377 $ 1,439,920 $ 1,440,303 $ 2,087,278 $ 2,329,189
CAM Reimbursement $ - $ - $ - $ 417,456 $ 464,971
Effective Total Revenue $ 1,436,377 $ 1,439,920 $ 1,440,303 $ 2,504,734 $ 2,794,160
Expenses #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Net Operating Income #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Yearly Cash Flow Summary Year 1 Year 2 Year 3 Year 4 Year 5
Net Operating Income #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
First Mortgage Annual Payment $ 287,688 $ 287,688 $ 287,688 $ 287,688 $ 287,688
Cash Flow #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Reversion Net Operating Income #VALUE!
Terminal Cap Rate 8.0%
Value of NOI #VALUE!
Selling Costs 3%
Net Sales Price #VALUE!
Remaining First Mortgage Balance $ 3,084,856
Capital Loan Balance $ -
Return Of Equity $ 1,084,798
Capital Gain #VALUE!
Five Year Leveraged IRR Analysis
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Equity $ (1,084,798)
Cash Flow after Debt Service $ 319,799 $ 295,858 $ 254,188 $ 1,058,895 $ 1,253,986
Net Sales Price
Remaining Mortgage
Net Cash Flow $ (1,084,798) $ 319,799 $ 295,858 $ 254,188 $ 1,058,895 $ 1,253,986
Net after return of Equity $ -
Cash on Cash Return (5 yr cumulative with initial equity) #VALUE!
$ (3,084,856)
100% Partner $ (1,084,798) $ 319,799 $ 295,858 $ 254,188 $ 1,058,895 $ 1,253,986 #VALUE!
0% $ - $ - $ - $ - $ -
Total $ (1,084,798) $ 319,799 $ 295,858 $ 254,188 $ 1,058,895 $ 1,253,986 #VALUE!
29.48% 27.27% 23.43% 97.61% 115.60%
Five Year Leveraged IRR (Project) #VALUE!
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Sensitivity Analysis 275,861 #REF!

Occupancy Rate Analysis

Percent Leased Occupied Space Gross Income Vacancy Effective Gross Inc CAM Reimb. Total Expenses NOI Debt Service Cash Flow DSC Brk Even
100.0% 275,861 #REF! #REF! #REF! $ - $ - #REF! $ (287,688) #REF! #REF! #REF!
97.0% 267,585 #REF! #REF! #REF! $ - $ - #REF! $ (287,688) #REF! #REF! #REF!
95.0% 254,206 #REF! #REF! #REF! $ - $ - #REF! $ (287,688) #REF! #REF! #REF!
92.0% 253,792 #REF! #REF! #REF! $ - $ - #REF! $ (287,688) #REF! #REF! #REF!
90.0% 248,275 #REF! #REF! #REF! $ - $ - #REF! $ (287,688) #REF! #REF! #REF!
88.0% 242,758 #REF! #REF! #REF! $ - $ - #REF! $ (287,688) #REF! #REF! #REF!
85.0% 234,482 #REF! #REF! #REF! $ - $ - #REF! $ (287,688) #REF! #REF! #REF!
83.0% 228,965 #REF! #REF! #REF! $ - $ - #REF! $ (287,688) #REF! #REF! #REF!
80.0% 220,689 #REF! #REF! #REF! $ - $ - #REF! $ (287,688) #REF! #REF! #REF!
78.0% 215,172 #REF! #REF! #REF! $ - $ - #REF! $ (287,688) #REF! #REF! #REF!
76.0% 209,654 #REF! #REF! #REF! $ - $ - #REF! $ (287,688) #REF! #REF! #REF!
73.0% 201,379 #REF! #REF! #REF! $ - $ - #REF! $ (287,688) #REF! #REF! #REF!

Rental Rate Sensitivity Analysis 275,861

Rental Rate Gross Income Vacancy Effective Gross Inc CAM Recovery Total Income Operating Exp NOI Debt Service Cash Flow DSC
$ 24.00 $ 6,620,664 $ (331,033) $ 6,289,631 - 6,289,631 - 6,289,631 (287,688) 6,001,943 21.86
$ 23.75 $ 6,551,699 $ (327,585) $ 6,224,114 - 6,224,114 - 6,224,114 (287,688) 5,936,426 21.63
$ 23.50 $ 6,482,734 $ (324,137) $ 6,158,597 - 6,158,597 - 6,158,597 (287,688) 5,870,909 21.41
$ 23.25 $ 6,413,768 $ (320,688) $ 6,093,080 - 6,093,080 - 6,093,080 (287,688) 5,805,392 21.18
$ 23.00 $ 6,344,803 $ (317,240) $ 6,027,563 - 6,027,563 - 6,027,563 (287,688) 5,739,875 20.95
$ 22.75 $ 6,275,838 $ (313,792) $ 5,962,046 - 5,962,046 - 5,962,046 (287,688) 5,674,358 20.72
$ 22.50 $ 6,206,873 $ (310,344) $ 5,896,529 - 5,896,529 - 5,896,529 (287,688) 5,608,841 20.50
$ 22.25 $ 6,137,907 $ (306,895) $ 5,831,012 - 5,831,012 - 5,831,012 (287,688) 5,543,324 20.27
$ 22.00 $ 6,068,942 $ (303,447) $ 5,765,495 - 5,765,495 - 5,765,495 (287,688) 5,477,807 20.04
$ 21.75 $ 5,999,977 $ (299,999) $ 5,699,978 - 5,699,978 - 5,699,978 (287,688) 5,412,290 19.81
$ 21.50 $ 5,931,012 $ (296,551) $ 5,634,461 - 5,634,461 - 5,634,461 (287,688) 5,346,773 19.59
$ 21.25 $ 5,862,046 $ (293,102) $ 5,568,944 - 5,568,944 - 5,568,944 (287,688) 5,281,256 19.36
$ 21.00 $ 5,793,081 $ (289,654) $ 5,503,427 - 5,503,427 - 5,503,427 (287,688) 5,215,739 19.13
$ 20.75 $ 5,724,116 $ (286,206) $ 5,437,910 - 5,437,910 - 5,437,910 (287,688) 5,150,222 18.90
$ 20.50 $ 5,655,151 $ (282,758) $ 5,372,393 - 5,372,393 - 5,372,393 (287,688) 5,084,705 18.67
$ 20.25 $ 5,586,185 $ (279,309) $ 5,306,876 - 5,306,876 - 5,306,876 (287,688) 5,019,188 18.45
$ 20.00 $ 5,517,220 $ (275,861) $ 5,241,359 - 5,241,359 - $ 5,241,359 (287,688) $ 4,953,671 18.22

Interest Rate Sensitivity Analysis

Interest Rate NOI Avg 10yr NPV Debt Service Cash Flow DSC
6.00% $ - $ (203,520) $ (203,520) 0.00
7.00% $ - $ (237,440) $ (237,440) 0.00
7.50% $ - $ (254,400) $ (254,400) 0.00
7.75% $ - $ (322,240) $ (322,240) 0.00
8.00% $ - $ (271,362) $ (271,362) 0.00
8.50% $ - $ (288,321) $ (288,321) 0.00
9.00% $ - $ (305,280) $ (305,280) 0.00
9.50% $ - $ (322,240) $ (322,240) 0.00
10.00% $ - $ (339,200) $ (339,200) 0.00

Mortgage Equity Method (Ellwood)

Loan Amortization 300
Loan Interest Rate 7.00%
Loan to Value Percent 75%
Equity Yield Rate 10% Mortgage Rate 7.00% Equity Dividend 10%
Projection Term (mths) 120 Term 25 DCR 1.2
Annual Appreciation 2.00% L/V Ratio 75% Equity Portion 25%
Annual Depreciation 39.5
Projected Holding (yrs) 5 Portion Ratio Rate Weighted Avg.
Constant to Term 8.0415% Debt 0.75 0.07389 0.05541
Percent Loan Pd Off 21.3666% Equity 0.25 0.10000 0.02500
Sinking Fund Fctr 6.275% Weighted Rate 0.08041
NOI $ - Less Equity Build-up Factor 0.014814
Change in Property Value (Yrly) 4.0% Derived Capitalization Rate 0.065601
Change in Income (yrly) #REF! Estimated Value $ -
Derived Cap Rate 6.5601%

Mortgage Constant
Pymt (Int. Rate/12,Term*12,-1)*12 Max. Loan Amount based on Debt Coverage Ratio
Constant 0.0738860641
P & I /Loan Amount Annual NOI $ -
Prin & Int. $ 23,973.97 Loan Constant 0.084814
Loan Amount $3,392,003 Debt Coverage 1.25 1.20 1.15
Constant 0.08481 Max Loan $ - $ - $ -
1.00000000
Net Income Capitalization Rate Debt Coverage Ratio Technique
Interest Rate 7.00%
Annual NOI $ - DCR 1.2 LTV 0.75
Loan Amort (mnths) 360 Mort Constant 0.0738860641
Loan to Value 75%
Debt Coverage 0 Debt Coverage Cap Rate Calculation
Loan Constant 0.100000 ((DCR*LTV)*Mort. Constant)= Cap Rate
DCR Cap Rate 0.06650
Indicated Value $ - Derived Value from NOI $ -
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IRR After Return Of Equity Before Taxes 73.30%

After Tax Return Assuming 45% Tax Bracket 30.92%
Five Year leveraged Cash on Cash #VALUE!

Reversion Net Operating Income:

NOI $ 1,541,673
Terminal Cap Rate 10.00%
Gross Sales Price $ 15,416,735
Selling Costs 3%
Selling Costs $ 462,502
Net Sales Price $ 14,954,233
Original First Mortgage Balance $ 3,254,394
Remaining First Mortgage Balance $ (3,092,223)
Return Of Equity $ (1,084,798)
Net Cash Flow Before Taxes Less Equity $ 12,946,807
Cash on Cash Return During Period #VALUE!

Five Year Leveraged IRR Analysis

Annual Cash Flow After Debt Service-Yr. 5 $ 1,253,986
Net Sales Price $ 14,954,233
Remaining Mortgage $ (3,092,223)
Return of Equity $ (1,084,798)
Five Year Leveraged IRR Less Equity 73.30%
After Tax + Capital Gains 30.92%

11/20/2017 DKC Realty, LLC