Using the annual payroll estimate of $150,000 and the financial positions in Exhibits 6 and 7, what will be the monthly rents in the proposed development? Are these calculations reasonable?

Exhibit 6: All Market-Rent Properties: Operating Income and Expense Data, 2016 Garden Total $Per Unit Sq. Ft. GPR $Per 96 of Sq. Ft.GPR Mid and High Rise $Per Unit Sq. Ft. GPR $Per %of $Per $Per %of Unit Revenues Gross Potential Rent Rent Revenue Collected Losses to Vacancy Collection Losses Losses to Concessions Other Revenue Total Revenue Operating Expenses Salaries and Personnel Insurance $13,517 $12,566 $726 $82 $143 $787 $13,353 $14.47 $13.45 $0.78 $0.09 $0.15 $0.84 $14.30 100.0% 93.0% 5.4% 0.6% 1.1% 5.8% 98.8% $12,561 $11,690 $669 $82 $118 $714 $12,405 $13.39 $12.46 $0.71 $0.09 $0.13 $0.76 $13.22 100.0% 93.1% 5.3% 0.7% 0.9% 5.7% 98.8% $19,113 $17,688 $1,058 $81 $286 $1,211 $18,899 $21.00 $19.43 $1.16 $0.09 $0.31 $1.33 $20.76 100.0% 92.5% 5.5% 0.4% 1.5% 6.3% 98.9% axes Utilities Management Fees Administrative Marketing Contract Services Repair and Maintenance Total Operating Expenses $1,284 $259 $1,575 $330 $364 $265 $174 $355 $487 $5,094 $1.37 $0.28 $159 $0.35 $0.39 $0.28 $0.19 $0.38 $0.52 $5.45 9.5% 1.9% 11.6% 2.4% 2.7% 2.0% 1.3% 2.6% 3.6% 37.7% $1,240 $251 $1,408 $301 $344 $248 $157 $324 $476 $4,748 $1.32 $0.27 $1.50 $0.32 $0.37 $0.26 $0.17 $0.34 $0.51 $5.06 9.9% 2.0% 11.2% 2.4% 2.7% 2.0% 1.2% 2.6% 3.8% 37.8% $1,540 $302 $2,550 S502 $483 $369 $277 $541 $548 $7,112 $1.69 $0.33 $2.80 $0.55 $0.53 $0.41 $0.30 $0.59 $0.60 $7.81 8.1% 1.6% 13.3% 2.6% 2.5% 1.9% 1.4% 2.8% 2.9% 37.2% Net Operating Income $8,259 $8.84 61.1% $7,656 $8.16 61.0% $11,787 $12.95 61.7% Capital Expenditures $1,181 $1.26 8.7% $1,127 $1.20 9.0% $1,490 $1.64 7.8% Exhibit 6: All Market-Rent Properties: Operating Income and Expense Data, 2016 Garden Total $Per Unit Sq. Ft. GPR $Per 96 of Sq. Ft.GPR Mid and High Rise $Per Unit Sq. Ft. GPR $Per %of $Per $Per %of Unit Revenues Gross Potential Rent Rent Revenue Collected Losses to Vacancy Collection Losses Losses to Concessions Other Revenue Total Revenue Operating Expenses Salaries and Personnel Insurance $13,517 $12,566 $726 $82 $143 $787 $13,353 $14.47 $13.45 $0.78 $0.09 $0.15 $0.84 $14.30 100.0% 93.0% 5.4% 0.6% 1.1% 5.8% 98.8% $12,561 $11,690 $669 $82 $118 $714 $12,405 $13.39 $12.46 $0.71 $0.09 $0.13 $0.76 $13.22 100.0% 93.1% 5.3% 0.7% 0.9% 5.7% 98.8% $19,113 $17,688 $1,058 $81 $286 $1,211 $18,899 $21.00 $19.43 $1.16 $0.09 $0.31 $1.33 $20.76 100.0% 92.5% 5.5% 0.4% 1.5% 6.3% 98.9% axes Utilities Management Fees Administrative Marketing Contract Services Repair and Maintenance Total Operating Expenses $1,284 $259 $1,575 $330 $364 $265 $174 $355 $487 $5,094 $1.37 $0.28 $159 $0.35 $0.39 $0.28 $0.19 $0.38 $0.52 $5.45 9.5% 1.9% 11.6% 2.4% 2.7% 2.0% 1.3% 2.6% 3.6% 37.7% $1,240 $251 $1,408 $301 $344 $248 $157 $324 $476 $4,748 $1.32 $0.27 $1.50 $0.32 $0.37 $0.26 $0.17 $0.34 $0.51 $5.06 9.9% 2.0% 11.2% 2.4% 2.7% 2.0% 1.2% 2.6% 3.8% 37.8% $1,540 $302 $2,550 S502 $483 $369 $277 $541 $548 $7,112 $1.69 $0.33 $2.80 $0.55 $0.53 $0.41 $0.30 $0.59 $0.60 $7.81 8.1% 1.6% 13.3% 2.6% 2.5% 1.9% 1.4% 2.8% 2.9% 37.2% Net Operating Income $8,259 $8.84 61.1% $7,656 $8.16 61.0% $11,787 $12.95 61.7% Capital Expenditures $1,181 $1.26 8.7% $1,127 $1.20 9.0% $1,490 $1.64 7.8%