Develop A Yield On Cost Exhibit 14: Project Timeline Demolition Land Acquistion 12/31/2012 Hard Construction 9/30/2013 $2.500.550 Construccion Loan Payoff 831.2014 Completed Asset blue 831.2011 !? External Cust $75.000 TA Hard ssratruction costars Hansed with a sortir donar. Ish-zd-TW CELTIS perfor the demolter, twcht bewont drowned to be shy pod over the more from Sepinber 2013 through August 2014 to cover the writing wd.co con Sat, qui 1.25 of hard cocco (excluding denne med sebe Baronac over de andre twenty merchu. UMOWA UNIVERSITY BLOOMINGTON Develop A Yield On Cost Assume that Lenard can finance hard development costs with a construction loan that charges 6% interest to be repaid upon project completion. - The first draw on the construction loan is made to pay for the demolition, with twelve subsequent draws evenly spread to cover the remaining hard construction costs (excluding demolition). W NOWA UNIVERSITY BLOOMINGTON Exhibit 16: "Cuncnt Incama Statement Develop A Yield On Cost rogram Warisma 1953 SIXI PM VI 4 The case use a below-the-line cash flow calculation Translate "Current" NOI into the NOI at completion X.55.15 13 Carrek Cari . I LIKI . You may assume that the property's net operating income (NOI) is growing at 3% per year. You may assume that property CapEx is 20% of NOL TO 1119 . LE Irun 15.3 Develop A Yield On Cost Suppose instead you were considering developing to a yield on cost. You would be willing to make an investment into the development project as long as the annual cash flow of the property was at least 5.2% of the total development cost Cash flow is measured at project completion and the timing of development costs is Ignored (except for when calculating construction loan interest). - Development costs include both hard and soft costs, as well as interest on any construction loan - What is the supportable site acquisition cost? The supportable site soquisition cost is therefore the amount a developer can spend on the land such that the property cash flow at least 5.2% of the total project cost including land, hard and soft development costs, and construction financing TIT NUOVERSITY DOVUTOV Develop A Yield On Cost Assume that Lenard can finance hard development costs with a construction loan that charges 6% interest to be repaid upon project completion. The first draw on the construction loan is made to pay for the demolition, with twelve subsequent draws evenly spread to cover the remaining hard construction costs (excluding demolition). Develop A Yield On Cost d) Revenue Group Income Parking come Vecincylon (20) Credito (1) 420.400.00 17.550.00 19.00 1459) 432.571.50 Exper Rele Comeone Commons Common seng The case use a below-the-line cash flow calculation Translate "Current" NOI into the Nol at completion You may assume that the property's net operating income (NOI) is growing at 3% per year You may assume that property CapEx is 20% NI Lupin E 36.72525 1.500.00 2.000.00 2.600.00 800.00 1,800.00 M. 400 DO 1.000.00 2.400.00 2.100.00 2.000.00 Garbage HVAC were con General Unido 10,000.00 0.72 271,104 Develop A Yield On Cost Suppose instead you were considering developing to a yield on cost. - You would be willing to make an investment into the development project as long as the annual cash flow of the property was at least 5.2% of the total development cost - Cash flow is measured at project completion and the timing of development costs is ignored (except for when calculating construction loan interest). Development costs include both hard and soft costs, as well as interest on any construction loan. What is the supportable site acquisition cost? The supportable site acquisition cost is therefore the amount a developer can spend on the land such that the property cash flow is at least 5.2% of the total project cost, including land, hard and soft development costs, and construction financing. Develop A Yield On Cost Exhibit 14: Project Timeline Demolition Land Acquistion 12/31/2012 Hard Construction 9/30/2013 $2.500.550 Construccion Loan Payoff 831.2014 Completed Asset blue 831.2011 !? External Cust $75.000 TA Hard ssratruction costars Hansed with a sortir donar. Ish-zd-TW CELTIS perfor the demolter, twcht bewont drowned to be shy pod over the more from Sepinber 2013 through August 2014 to cover the writing wd.co con Sat, qui 1.25 of hard cocco (excluding denne med sebe Baronac over de andre twenty merchu. UMOWA UNIVERSITY BLOOMINGTON Develop A Yield On Cost Assume that Lenard can finance hard development costs with a construction loan that charges 6% interest to be repaid upon project completion. - The first draw on the construction loan is made to pay for the demolition, with twelve subsequent draws evenly spread to cover the remaining hard construction costs (excluding demolition). W NOWA UNIVERSITY BLOOMINGTON Exhibit 16: "Cuncnt Incama Statement Develop A Yield On Cost rogram Warisma 1953 SIXI PM VI 4 The case use a below-the-line cash flow calculation Translate "Current" NOI into the NOI at completion X.55.15 13 Carrek Cari . I LIKI . You may assume that the property's net operating income (NOI) is growing at 3% per year. You may assume that property CapEx is 20% of NOL TO 1119 . LE Irun 15.3 Develop A Yield On Cost Suppose instead you were considering developing to a yield on cost. You would be willing to make an investment into the development project as long as the annual cash flow of the property was at least 5.2% of the total development cost Cash flow is measured at project completion and the timing of development costs is Ignored (except for when calculating construction loan interest). - Development costs include both hard and soft costs, as well as interest on any construction loan - What is the supportable site acquisition cost? The supportable site soquisition cost is therefore the amount a developer can spend on the land such that the property cash flow at least 5.2% of the total project cost including land, hard and soft development costs, and construction financing TIT NUOVERSITY DOVUTOV Develop A Yield On Cost Assume that Lenard can finance hard development costs with a construction loan that charges 6% interest to be repaid upon project completion. The first draw on the construction loan is made to pay for the demolition, with twelve subsequent draws evenly spread to cover the remaining hard construction costs (excluding demolition). Develop A Yield On Cost d) Revenue Group Income Parking come Vecincylon (20) Credito (1) 420.400.00 17.550.00 19.00 1459) 432.571.50 Exper Rele Comeone Commons Common seng The case use a below-the-line cash flow calculation Translate "Current" NOI into the Nol at completion You may assume that the property's net operating income (NOI) is growing at 3% per year You may assume that property CapEx is 20% NI Lupin E 36.72525 1.500.00 2.000.00 2.600.00 800.00 1,800.00 M. 400 DO 1.000.00 2.400.00 2.100.00 2.000.00 Garbage HVAC were con General Unido 10,000.00 0.72 271,104 Develop A Yield On Cost Suppose instead you were considering developing to a yield on cost. - You would be willing to make an investment into the development project as long as the annual cash flow of the property was at least 5.2% of the total development cost - Cash flow is measured at project completion and the timing of development costs is ignored (except for when calculating construction loan interest). Development costs include both hard and soft costs, as well as interest on any construction loan. What is the supportable site acquisition cost? The supportable site acquisition cost is therefore the amount a developer can spend on the land such that the property cash flow is at least 5.2% of the total project cost, including land, hard and soft development costs, and construction financing