1 Numberowmts 2 Square Eootage 3 Percentage of Total 5E stage 1d: Development costs Gross Total Usaoie Apt 9 Retail 50 50 57 75,595 70,425 54,425 100% 91% For Sale Condos 3 5,000 9% 4 Development costs\" 5 Land $16.53 per gross $1,251,500 $1,144,877.45 $105,622.55 5 Land Carry: 3.55% for 12 months' $27,415 $25,092 $2,335 7 Approval Fees $1 17 per gross $88,800 581,234 51 $7,555 9 Environmental Remediation $1.45 per gross $110,574 $101,154 $9,420 9 Construction Hard Costs $913.77 per gross $7,475,741 $5,339,754 $535,937 10 Soft Costs' 11 Architecture & Engineer 5 05% on hard cost $378,000 $345,795 $32,204 12 Legal & Other $228,910 (estimate) $229,910 $209,403 $19,502 13 Appraisal gt Title $10,393 (estimate) $10,883 $9,955 $927 14 Marketing $1,225 per total units $73,500 $57,230 $5,252 15 Taxes During Construction $50,000 (estimate) $50,000 $45,740 $4,250 15 insurance During Construction $19,500 (estimate) $19,800 $18,113 $1,687 17 Total soft Costs $751,093 $595,251 $54,242 19 Contingency 2.32% of hard costs $210,825 $192,354 $17,951 19 Total Development Cost before Interest and Operating Reserve $9,925,951 $9,031,215 $945,735 20 Estimate of Construction lnterest' 21 Construction Loan $5,917,332' 22 Construction interest 12% 23 Construction Period 12 24 Average Draw 55% 25 Estimated Construction Loan interest $539,555 $493,587 90 $45,957 99 25 Total Project cost Before Operating Reserves $10,455,507 $9,574,904 $291,703 27 Estimate of Operating Reserve\" 29 Gross Potential Rent (Monthly) $74,350 29 tease-Up Period (Months until stabii) 5 30 Average Occupancy During tease uP 55% 31 Estimated Rent during Lease Up $290,004 32 Estimated Operating Expenses During tease up $159,549 5 5 15 53 3.55% 1 17 1 45 93 77 stage 1e: SummaryAnalvsi's a. simple Ratios Net Operating income (Noi) Total Proiect Cost Less, Development Subsidies Prcject Cost After Subsidies Less, Development Cost of For Sale Condos Total Adjusted Cost for lnoome Property Only overall Return, overall Cap Rate or yield on cost (Moi/Total Adjusted Cost) NOl Annual Debt Service\" Cash Throw off (cm or BTCE) Total Adjusted Cost for income Property Only Permanent Mortgage' Equity Cash On Cash Return [Era/Equity) Development Profit for Apartments] retail NOl Overall Cap Rate at sale Capitalized Value (Moi/Cap Rate) Less: Total Adjusted Cost Development Profit $523,945 510,751,194 62,475,934) $8,274,210 ($854,785) $7,419,425 7.1% $523,945 $435,521 $87,324 $7,419,425 $6,234,882 $1,184,544 7.4% $523,945 5.00% $8,732,419 $7,419,425 $1,312,993 a Annual Debt Service reflects the total mortgage principal amount of $5,234,382, which excludes financing the FornSale Condominiums. b Mortgage excludes nancing of ine For-Sale Condominiums Also, if applicable, the Mortgage amount is capped so as (0 not exceed the Total Proiect Cost after Subsidies. B C E _ _ _G _ H_ l 6 Land Carry| 3.65% for 12 months $27,418 $25,082 $2,336 7 Approval Fees $1.17 per gross $88,800 $81,234.61 $7,565 8 Environmental Remediation $1.46 per gross $110,574 $101,154 $9,420 9 Construction Hard Costs $98.77 per gross $7,476,741 $6,839,754 $636,987 10 Soft Costs: 11 Architecture 8 Engineer 5.05% on hard cost $373,000 $345,796 $32,204 12 Legal 8 Other $228,910 (estimate) $228,910 $209,408 $19,502 13 Appraisal 8t Title $10,883 (estimate) $10,883 58,956 5927 14 Marketing $1,225 per total units $73,500 $67,238 $6,262 15 Taxes During Construction $50,000 (estimate) $50,000 $45,740 $4,260 16 insurance During Construction $19,800 (estimate) $19,800 $18,113 $1,687 17 Total Soft Costs $761,093 $696,251 $64,842 18 Contingencv 2.82% of hard costs $210,825 $182,864 $17,961 19 Total Development Cost before Interest and Operating Reserve $9,926,951 $9,081,216 $845,735 20 Estimate of Construction Interest' 21 Construction Loan $6,917,382V 22 Construction Interest 12% 23 Construction Period 12 24 Average Draw 65% 25 Estimated Construction Loan lriterest $539,556 $493,587.90 $45,967.89 26 Total Project Cost Before Operating Reserves $10,466,507 $9,574,804 $891,703 27 Estimate of Operating Reserve1 28 Gross Potential Rent (Monthly) $74,360 29 Lease-Up Period (Months until stabil) 6 30 Average Occupancy During Lease UP 65% 31 Estimated Rent during Lease Up $290,004 32 Estimated Operating Expenses During Lease up $159,649 33 NOI During Lease UP $130,355 34 Construction Interest During Lease UP $415,042.91 35 First Vear Operating Reserve Required $284,688 $260,433 $24,254 36 Total Project Costs $10,751,194 $9,835,238 $915,957 37 Less: Development Cost Subsi s' ($2,476,984) ($2,415,812) ($61,172) 38 Total Project Costs after Subsidies $3,274,210 $7,419,426 $854,785 $ 3.65% 1.17 1.46 98.77 L M Overall Return, Overall Cap Rate or yield on cost (MOI/Total Adjusted Cost) NOl Annual Debt Service3 Cash Throw Off (CTO or BTCF) Total Adjusted Cost for Income Property Only Permanent Mortgageb Equity Cash On Cash Return (Clo/Equity) Development Profit for Apartments/retail NOl Overall Cap Rate at Sale Capitalized Value (NOl/Cap Rate) Less: Total Adjusted Cost Development Profit 7.1% $523,945 $436,621 $87,324 $7,419,426 $6,234,882 $1,184,544 7.4% $523,945 6.00% $8,732,419 $7,419,426 $1,312,993 a Annual Debt Service reflects the total mortgage principal amount of $6,234,882, which excludes financing the ForsSale Condominiums. b Mormage excludes nancing of the For-Sale Condominiums Also, if applicable, the Mortgage amount is capped so as to not exceed the Total Project Cost after Subsidies