Name of Session | SpeakersElevating Elite EducationEnter Check In Code by 10:10 a.m.

Check In Code: C3A8

Elevating Elite EducationPresented by: CCIM Indiana Chapter

May 3, 201810 11:45 AM

Introductions Moderator: Steve Martin, CCIM (2019 President-Elect) Jacque Haynes, CCIM (Past President)

Midland Atlantic Properties Rob Lukemeyer, CCIM (Past President)

Senior Vice President Baseline Commercial David Martin, CCIM

Senior Vice President MBRE Healthcare Laurie Schultz, CCIM (2018 Chapter President)

Principal & Co-Founder Avenue Development

Todays Topics Why CCIM? Investment Terminology Market Analysis

Q & A Investment Analysis Investment Decisions

Q & A

WHY CCIM? WHATS IN IT FOR ME?

INVESTMENT TERMINOLOGY

Cap Rate Lower is Better?V (Value) = I (Income) / R (Rate)

I = R x V R = I / V

Definition:A Rate of Capitalization applied to one year of NOI

Derived from Market comparables of similar Assets ( when available)

Rate is Composed of 2 basic elements (1) Annual Rate of return on the

investment ( referred to as Opportunity cost or discount rate) and;

(2) Capital Recovery Rate ( the annual rate of return of the Investment). Includes factor for risk.

Investment Terminology The Basics NOI Net Operating Income

TVM Time Value of Money

IRR Internal Rate of Return

NPV Net Present Value

Investment Terminology Decision Analysis ADS Annual Debt Service

DCR Debt Coverage Ratio (NOI / ADS)

LTV Loan to Value

CFBT Cash Flow Before Tax

CFAT Cash Flow After Tax

Investment Terminology Investor Return

Cash on Cash CFBT / Initial Equity Investment

Leveraged C / C NOI Interest / Equity Investment

= Equity Yield is Greater than Unleveraged Yield

MARKET ANALYSISHEALTHCARESENIOR LIVING

Case Studies

Healthcare Providers Require Strong Real Estate Analytics

Assess the markets current and projected demographics including age distribution, household income and spending, insurance coverage, and health behaviors and indicators

PATIENTDEMOGRAPHIC

S

SERVICECAPACITY

MARKETDYNAMICS

PHYSICIANWORKFORCE

COMPETITIVELANDSCAPE

INDUSTRYTRENDS

Develop target market shares and projected healthcare market volumes and use rates by service category (inpatient, outpatient, and ancillary services) to assess overall capacity for medical services

Conduct a physician workforce analysis assessing the current and projected surplus or deficit of physicians within the service area by specialty

Profile the current healthcare providers and medical services located within the service area including competitive positioning, market penetration, and physician alignment

Evaluate fundamental market drivers such as community engagement, regulatory constraints, and economic activities

Assess the applicability and implications of national and regional healthcare trends on the local market including value-based care programs, care coordination initiatives, and reimbursement changes and pressures

SITE ASSESSMENT MARKET ASSESSMENT OVERVIEW

CCIM Site To Do Business

Site Assessment AAA, CO Service A MOBs potential

service area was defined by a 10-minute drive time radius around proposed location based on review of market dynamics, likely capturablepopulation, and likely travel patterns.

SITE ASSESSMENT COMPETITIVE LANDSCAPE

The aaa service area can be characterized as highly competitive with major health systems targeting the area for growth initiatives and greater market penetration. XXX has the greatest market share, driven by the proximity of XXXXXX Medical Center, followed by XXXX

Market share is well distributed with no dominant hospital capturing more than one-third market share; typically, this distribution pattern not only enhances

competition but also leads to the greatest potential opportunity for market share increase. Note: XXXX market share is not reflective of the opening of XXXX Hospital Level III trauma hospital (51 inpatient beds, opened August 2017) and 15,000 sq. ft. ambulatory surgery center (opened September 2017).

SITE ASSESSMENT COMPETITIVE LANDSCAPE

AAA, BBB, CCC, and DDDD Community Hospital have all invested heavily in the area with hospitals, physicians, and ambulatory care centers. Below is a summary of each systems service area footprint and an assessment of recent initiatives and system strategy.

Both xxx Health (focused more North in aaa, bbb, and ccc region) and yyy (focused more Southeast in ddd and xxx) can be considered nearby, but penetration in the aaa services area has been minimal, if any, to-date. However, proximity and growth opportunity suggests that could change to new investment in the future.

Xxx Community Hospital implements a variety of ambulatory care center models, but with no standard template, across the market, with different types within 10 minutes of Erie.

SITE ASSESSMENT SERVICE AREA BY ZIP CODE & MARKET SHARE

SITE ASSESSMENT SERVICE AREA BY ZIP CODE & MARKET SHARE

19

While household median incomes in both service areas are significantly lower than the State of Utah, they are projected to increase by around 13%, slightly ahead of the state overall

ZIP codes 84770 and 84780 are have the lowest median household incomes and decrease the overall service area averages

Health care spending by household trends comparably to household income, with households just north of Ivins, Utah spending the most on health care annually ($7,147)

Household Summary

Median Household Income Health CareEstimated Percent Spending

Geographic Area 2016 2021 Change 2016

ZIP Code84738 $58,850 $65,582 11.4% $5,63484765 $64,449 $70,126 8.8% $5,71984770 $46,439 $52,525 13.1% $4,42384780 $52,659 $58,836 11.7% $4,96984783 $57,903 $67,297 16.2% $7,14784790 $58,674 $66,848 13.9% $5,463

Ivins Service Area $50,076 $56,352 12.5% $4,761

St. George Service Area $52,993 $59,889 13.0% $4,972

State of Utah $64,649 $71,877 11.2% $5,297

Source: The Nielsen Company and the Bureau of Labor Stati s tics

Site Assessment: Household Income and Health Care Spending

Market Analysis- Retail Demographics

Market Analysis- Retail Market Profile

Market Analysis- Retail Market Profile

Market Analysis- Pet Supply Demand

Senior Living Market Analysis

Map Competition Demographics

Drive Time Custom Variables

Custom Variables

Site Analysis

Site Target

Competition

Heat Map Why is the Site Not in the Heat Map??

Final Site Selection

Senior Living Row

Market Analysis During Development Find Unmet Need Zoning/Entitlements Lending Investors Client & Partner Success

Q & AMARKET ANALYSIS

INVESTMENT ANALYSISCase Studies

Return Metrics (Cap Rate Comparison)

Shopping Center Cash Flow (Before Taxes)38,373 SF

Cash Flow Statement

Year 1 2 3 4 5 6 7 8 9 10 11Year Ending: 1 Dec-2016 Dec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026

INCOME psf

Base Rental Revenue $16.67 $639,535 $658,272 $688,031 $726,960 $746,158 $758,634 $776,396 $837,740 $885,153 $920,523 $943,544

Absorption & Turnover Vacancy ($0.20) (7,505) - (17,161) - (2,355) (2,830) (12,287) (15,418) (9,540) (9,320) (3,202)

Base Rent Abatements ($0.26) (10,007) - (12,282) - (2,355) (2,264) (2,675) (19,965) (7,632) (7,456) (2,562)

Scheduled Base Rental Revenue $16.21 $622,023 $658,272 $658,588 $726,960 $741,448 $753,540 $761,434 $802,357 $867,981 $903,747 $937,780

OTHER INCOME

Expense Reimbursement Revenue $6.42 246,338 254,301 253,828 265,814 271,198 275,631 278,148 283,622 292,598 299,130 307,450

GROSS POTENTIAL INCOME $22.63 $868,361 $912,573 $912,416 $992,774 $1,012,646 $1,029,171 $1,039,582 $1,085,979 $1,160,579 $1,202,877 $1,245,230

General Vacancy ($0.72) (27,530) (36,503) (20,022) (39,711) (38,245) (38,450) (29,788) (28,638) (37,265) (39,168) (46,735)

EFFECTIVE GROSS INCOME $21.91 $840,831 $876,070 $892,394 $953,063 $974,401 $990,721 $1,009,794 $1,057,341 $1,123,314 $1,163,709 $1,198,495

EXPENSES

Utilities $0.66 25,312 25,819 26,335 26,862 27,399 27,947 28,506 29,076 29,657 30,251 30,856

Housekeeping $0.21 8,164 8,327 8,494 8,664 8,837 9,014 9,194 9,378 9,566 9,757 9,952

Snow Removal $0.61 23,460 23,929 24,408 24,896 25,394 25,902 26,420 26,948 27,487 28,037 28,598

Maintenance $0.53 20,416 20,825 21,241 21,666 22,099 22,541 22,992 23,452 23,921 24,399 24,887

Repairs $0.07 2,564 2,616 2,668 2,721 2,776 2,831 2,888 2,946 3,004 3,065 3,126

Real Estate Taxes $3.11 119,340 121,727 124,161 126,645 129,177 131,761 134,396 137,084 139,826 142,622 145,475

Insurance $0.19 7,154 7,297 7,443 7,592 7,744 7,899 8,057 8,218 8,382 8,550 8,721

Management Fees $0.66 25,225 26,282 26,772 28,592 29,232 29,722 30,294 31,720 33,699 34,911 35,955

Association Fees $0.45 17,134 17,477 17,826 18,183 18,546 18,917 19,296 19,682 20,075 20,477 20,886

N/R Expenses $0.00 134 - 272 - - 49 213 266 164 159 54

TOTAL EXPENSES $6.49 $248,903 $254,299 $259,620 $265,821 $271,204 $276,583 $282,256 $288,770 $295,781 $302,228 $308,510

NET OPERATING INCOME $15.43 $591,928 $621,771 $632,774 $687,242 $703,197 $714,138 $727,538 $768,571 $827,533 $861,481 $889,985

CAPITAL ITEMS

Tenant Improvements $1.00 38,276 - 18,609 - 3,533 3,381 3,545 29,516 11,229 10,918 3,733

Leasing Commissions $0.29 11,138 - 28,532 - 5,316 5,384 6,038 47,469 26,075 23,743 6,092

Capital Reserve $0.10 3,837 3,837 3,837 3,837 3,837 3,837 3,837 3,837 3,837 3,837 3,837

TOTAL CAPITAL ITEMS $1.39 $53,251 $3,837 $50,978 $3,837 $12,686 $12,602 $13,420 $80,822 $41,141 $38,498 $13,662

NET CASH FLOW BEFORE DEBT SERVICE $14.04 $538,677 $617,934 $581,796 $683,405 $690,511 $701,536 $714,118 $687,749 $786,392 $822,983 $876,323

DEBT SERVICE - Consolidated Debt DSCR

Principal Payments on NOI $132,757 $138,856 $145,235 $151,907 $158,885 $166,185 $173,819 $181,804 $190,156 $198,892

Interest Payments 1.48 x $266,956 $260,857 $254,478 $247,806 $240,827 $233,528 $225,893 $217,908 $209,556 $200,820

Loan Fees On FCF $59,927 $0 $0 $0 $0 $0 $0 $0 $0 $0

TOTAL DEBT SERVICE 1.35 x $459,639 $399,712 $399,712 $399,712 $399,712 $399,712 $399,712 $399,712 $399,712 $399,712

NET CASH FLOW AFTER DEBT SERVICE $79,038 $218,222 $182,084 $283,693 $290,799 $301,824 $314,406 $288,037 $386,680 $423,271

Hospital Need

DEVELOPMENT CYCLE

Compare to Market RentDevelopment Budget

INVESTMENT DECISIONSLEASE VS OWN- INDUSTRIALON-CAMPUS MOBDEBT & EQUITY

Case Studies

LEASE VS. PURCHASE (INDUSTRIAL)The Age Old Question.

LEAS

E

LEAS

E

PURC

HASE

PURC

HASE

PURCHASEL

EASE VS.

Investment Return- Deal ProfilesCORE: Class A, long-term hold Stabilized property Low risk, predictable and

creditworthy cash flow

VALUE-ADD: More speculative Management issues Deferred maintenance Rollover / renewal risk Lease up / absorption required

CORE PLUS: Many core characteristics Some element of extra

risk Renewal or rent reset Non-credit tenant Secondary market

OPPORTUNISTIC: Most speculative Development

IRR 9% 12%-15% 16%-20%

20%+

Leverage 45% 75%

Operational Intensity Lower Higher

Healthcare Case StudyMultiple Task Assignment

Prominent Health System Doubled in size over the past 4 years Capital constrained

Consultations: Develop new 130,000 SF MOB Solve Campus Parking Issues Monetization Strategy (Sale Leaseback)

multiple existing MOBs on campus Key physician joint ventures in existing

MOBs on campus Help resolve possible Non-compliant

stark issues to manage Competitionchallenging turf Physician Group acquisitions need for space time

sensitive

Existing Hospital / Physician Joint Ventures

1

2 3

4

Hospital / Physician JV

Hospital / Physician JV

MBRE Owned

Land Tract, 22 Acres

Consolidation of Cancer Services to New Medical Office BuildingAnd Back-Fill Strategy

Expansion of Services in the New MOB

Current & New MOB Space Demand

ABC Building130,000 sq. ft.

Tenant A12,900 sq. ft.

Expansion Space3,000 sq. ft.

Electrophysiology4,100 sq. ft.

Tenant B 20,300 sq. ft.

Tenant C8,800

Tenant D2,800 sq. ft.

Cardiac Services (29,300 sq. ft.):Heart Institute ExpansionElectrophysiologyCardiac Rehab (5,100 sq. ft.)CV Imaging (4,200 sq. ft.)

Physician Practice Relo/Expan (31,900 sq. ft):WomensWomens Specialist Gynecology

Remaining Tenants (31,950 sq. ft.):Medical Staff AdministrationPhysicians LoungeSleep LabLinaccInternal MedicineNephrology

The vacated spaced is expected to be subleased, but will likely have some carrying costs as the timing of existing lease terminations and construction/ and renovation will cause delays in transitioning, approx. $254K in FY2020.

Incremental Rental Expense - $752k, Capital Requirements - $5.3M

Current & New MOB Space Demand

Square Footage Summary Current Sq. Ft Future Sq. Ft. Sq. Ft. DiffIncremental

Rental ExpenseIncremental Depreciation

Incremental Operating Expense

Sublease Cost

(FY 2020)Capital

beyond TIAHospitalPFH Cancer Administration 1,637 3,000 1,363 4,212$ 20,000$ 24,212$ 13,388$ 300,000$ PFH Wellness Center 4,073 5,000 927 2,864$ 33,333$ 36,198$ 33,310$ 500,000$ PFH Infusion Center 2,999 3,000 1 3$ 20,000$ 20,003$ 24,526$ 300,000$ PFH Radiation Oncology (Not Linacc) 8,817 9,000 183 565$ 60,000$ 60,565$ 72,107$ 900,000$ PFH Women's Imaging 6,373 6,500 127 311$ 43,333$ 43,644$ 52,119$ 650,000$ PFH Boutique/Caf/Retail/Pharmacy - 2,000 2,000 45,200$ 13,333$ 58,533$ -$ 200,000$ PFH Lab Draw/STAT Lab - 1,000 1,000 22,600$ 6,667$ 29,267$ -$ 100,000$ PFH PET/CT - 3,500 3,500 79,100$ 23,333$ 102,433$ -$ 350,000$ PFH Timeshare - 1,500 1,500 33,900$ 10,000$ 43,900$ -$ 150,000$

Hospital Subtotal 23,899 34,500 10,601 188,756$ 230,000$ 418,756$ 195,450$ 3,450,000$

PMCC/PHIPMCC Breast/GYN Surgery Clinic 6,915 7,000 85 208$ 46,667$ 46,875$ 58,407$ 700,000$ PMCC Lung Surgery/Pulm Nodule Clinic - 3,000 3,000 67,800$ 20,000$ 87,800$ -$ 300,000$ Piedmont Heart Institute (expansion) - 2,999 2,999 60,430$ 23,992$ 84,422$ -$ 359,880$ Piedmont Heart Institute - EP - 4,073 4,073 82,071$ 32,584$ 114,655$ -$ 488,760$

PMCC/PHI Subtotal 6,915 17,072 10,157 210,509$ 123,243$ 333,752$ 58,407$ 1,848,640$

Totals 30,814 51,572 20,758 399,265$ 353,243$ 752,508$ 253,857$ 5,298,640$

Square Footage Summary

New Medical Office Building

Total Square Footage for Piedmont Healthcare

Estimated Commencement: July 2019

As of Date: 11/07/2017

Square FootageHospital Physician PracticesOverall Totals

Existing ServicesNew ServicesTotalExisting ServicesNew ServicesTotalExisting ServicesNew ServicesTotal

Current Sq. Ft.23,899- 023,8996,915- 06,91530,814- 030,814

Future Sq. Ft.26,5008,00034,5009,9997,07317,07236,49915,07351,572

Net Sq. Ft. Increase2,6018,00010,6013,0847,07310,1575,68515,07320,758

Square Footage SummaryCurrent Sq. FtFuture Sq. Ft.Sq. Ft. DiffIncremental Rental ExpenseIncremental DepreciationIncremental Operating ExpenseSublease Cost (FY 2020)Capital beyond TIA

Hospital

PFH Cancer Administration1,6373,0001,363$ 4,212$ 20,000$ 24,212$ 13,388$ 300,000

PFH Wellness Center4,0735,000927$ 2,864$ 33,333$ 36,198$ 33,310$ 500,000

PFH Infusion Center2,9993,0001$ 3$ 20,000$ 20,003$ 24,526$ 300,000

PFH Radiation Oncology (Not Linacc)8,8179,000183$ 565$ 60,000$ 60,565$ 72,107$ 900,000

PFH Women's Imaging6,3736,500127$ 311$ 43,333$ 43,644$ 52,119$ 650,000

PFH Boutique/Caf/Retail/Pharmacy- 02,0002,000$ 45,200$ 13,333$ 58,533$ - 0$ 200,000

PFH Lab Draw/STAT Lab- 01,0001,000$ 22,600$ 6,667$ 29,267$ - 0$ 100,000

PFH PET/CT- 03,5003,500$ 79,100$ 23,333$ 102,433$ - 0$ 350,000

PFH Timeshare- 01,5001,500$ 33,900$ 10,000$ 43,900$ - 0$ 150,000

Hospital Subtotal23,89934,50010,601$ 188,756$ 230,000$ 418,756$ 195,450$ 3,450,000

PMCC/PHI

PMCC Breast/GYN Surgery Clinic6,9157,00085$ 208$ 46,667$ 46,875$ 58,407$ 700,000

PMCC Lung Surgery/Pulm Nodule Clinic- 03,0003,000$ 67,800$ 20,000$ 87,800$ - 0$ 300,000

Piedmont Heart Institute (expansion)- 02,9992,999$ 60,430$ 23,992$ 84,422$ - 0$ 359,880

Piedmont Heart Institute - EP- 04,0734,073$ 82,071$ 32,584$ 114,655$ - 0$ 488,760

PMCC/PHI Subtotal6,91517,07210,157$ 210,509$ 123,243$ 333,752$ 58,407$ 1,848,640

Totals30,81451,57220,758$ 399,265$ 353,243$ 752,508$ 253,857$ 5,298,640

Capital Expense Summary

New Medical Office Building

Capital Requirements for Piedmont Healthcare

Estimated Commencement: July 2019

As of Date: 11/07/2017

Capital Expense SummaryHospital Physician PracticesOverall Totals

Existing ServicesNew ServicesTotalExisting ServicesNew ServicesTotalExisting ServicesNew ServicesTotal

Tenant Improvement Allowance$ 1,590,000$ 480,000$ 2,070,000$ 420,000$ 180,000$ 600,000$ 2,010,000$ 660,000$ 2,670,000

Capital Expense$ 4,240,000$ 1,280,000$ 5,520,000$ 1,479,880$ 968,760$ 2,448,640$ 5,719,880$ 2,248,760$ 7,968,640

PFH Net Capital Required$ 2,650,000$ 800,000$ 3,450,000$ 1,059,880$ 788,760$ 1,848,640$ 3,709,880$ 1,588,760$ 5,298,640

Operating Expense Summary

New Medical Office Building

Financial Impact to Piedmont Healthcare

Estimated Commencement: July 2019

As of Date: 11/07/2017

HospitalAnnual Hospital Operating Expense ImpactExisting ServicesNew ServicesFY 2020FY 2021FY 2022FY 2023FY 2024FY 2025FY 2026FY 2027FY 2028FY 2029FY 2030FY 2031FY 2032FY 2033FY 2034Total

Hospital - Net Rent Increase$ 7,956$ 180,800$ 188,756$ 193,475$ 198,312$ 203,269$ 208,351$ 213,560$ 218,899$ 224,371$ 229,981$ 235,730$ 241,623$ 247,664$ 253,856$ 260,202$ 266,707$ 3,384,755

Hospital - Additional Annual Depreciation$ 176,667$ 53,333$ 230,000$ 230,000$ 230,000$ 230,000$ 230,000$ 230,000$ 230,000$ 230,000$ 230,000$ 230,000$ 230,000$ 230,000$ 230,000$ 230,000$ 230,000$ 3,450,000

Vacated Space Not Offset by Sublease $ 195,450$ - 0$ 195,450$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ 195,450

Total Annual Hospital Impact$ 380,072$ 234,133$ 614,206$ 423,475$ 428,312$ 433,269$ 438,351$ 443,560$ 448,899$ 454,371$ 459,981$ 465,730$ 471,623$ 477,664$ 483,856$ 490,202$ 496,707$ 7,030,205

PMCCAnnual PMCC Operating Expense ImpactExisting ServicesNew ServicesFY 2020FY 2021FY 2022FY 2023FY 2024FY 2025FY 2026FY 2027FY 2028FY 2029FY 2030FY 2031FY 2032FY 2033FY 2034Total

PMCC - Net Rent Increase$ 208$ 67,800$ 68,008$ 69,708$ 71,451$ 73,237$ 75,068$ 76,945$ 78,869$ 80,840$ 82,861$ 84,933$ 87,056$ 89,233$ 91,464$ 93,750$ 96,094$ 1,219,519

PMCC - Additional Annual Depreciation$ 46,667$ 20,000$ 66,667$ 66,667$ 66,667$ 66,667$ 66,667$ 66,667$ 66,667$ 66,667$ 66,667$ 66,667$ 66,667$ 66,667$ 66,667$ 66,667$ 66,667$ 1,000,000

Vacated Space Not Offset by Sublease $ 58,407$ - 0$ 58,407$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ 58,407

Total Annual PMCC Impact$ 105,282$ 87,800$ 193,082$ 136,375$ 138,118$ 139,904$ 141,735$ 143,612$ 145,535$ 147,507$ 149,528$ 151,600$ 153,723$ 155,899$ 158,130$ 160,417$ 162,761$ 2,277,926

PHIAnnual PHI Operating Expense ImpactExisting ServicesNew ServicesFY 2020FY 2021FY 2022FY 2023FY 2024FY 2025FY 2026FY 2027FY 2028FY 2029FY 2030FY 2031FY 2032FY 2033FY 2034Total

PHI - Net Rent Increase$ 60,430$ 82,071$ 142,501$ 146,063$ 149,715$ 153,458$ 157,294$ 161,227$ 165,257$ 169,389$ 173,623$ 177,964$ 182,413$ 186,973$ 191,648$ 196,439$ 201,350$ 2,555,314

PHI- Additional Annual Depreciation$ 23,992$ 32,584$ 56,576$ 56,576$ 56,576$ 56,576$ 56,576$ 56,576$ 56,576$ 56,576$ 56,576$ 56,576$ 56,576$ 56,576$ 56,576$ 56,576$ 56,576$ 848,640

Vacated Space Not Offset by Sublease $ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0

Total Annual PHI Impact$ 84,422$ 114,655$ 199,077$ 202,639$ 206,291$ 210,034$ 213,870$ 217,803$ 221,833$ 225,965$ 230,199$ 234,540$ 238,989$ 243,549$ 248,224$ 253,015$ 257,926$ 3,403,954

TotalAnnual Total Operating Expense ImpactExisting ServicesNew ServicesFY 2020FY 2021FY 2022FY 2023FY 2024FY 2025FY 2026FY 2027FY 2028FY 2029FY 2030FY 2031FY 2032FY 2033FY 2034Total

Total - Net Rent Increase$ 68,594$ 330,671$ 399,265$ 409,246$ 419,478$ 429,965$ 440,714$ 451,732$ 463,025$ 474,600$ 486,465$ 498,627$ 511,093$ 523,870$ 536,967$ 550,391$ 564,151$ 7,159,588

Total- Additional Annual Depreciation$ 247,325$ 105,917$ 353,243$ 353,243$ 353,243$ 353,243$ 353,243$ 353,243$ 353,243$ 353,243$ 353,243$ 353,243$ 353,243$ 353,243$ 353,243$ 353,243$ 353,243$ 5,298,640

Vacated Space Not Offset by Sublease $ 253,857$ - 0$ 253,857$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ 253,857

Total Annual Operating Expense Impact$ 569,776$ 436,588$ 1,006,365$ 762,489$ 772,720$ 783,207$ 793,956$ 804,974$ 816,267$ 827,843$ 839,708$ 851,870$ 864,335$ 877,113$ 890,210$ 903,634$ 917,393$ 12,712,085

Assumes 2.5% rent escalation each year; Assumes Opex consistent with current space

Hospital Services

New Medical Office Building

Financial Impact to Piedmont Fayette Hospital

Estimated Commencement: July 2019

As of Date: 11/07/2017

Square FootageExisting ServicesNew ServicesTotal

Current Sq. Ft.23,899- 023,899

Future Sq. Ft.26,5008,00034,500

Net Sq. Ft. Increase2,6018,00010,601

Capital Expense SummaryExisting ServicesNew ServicesTotal

Tenant Improvement Allowance$ 1,590,000$ 480,000$ 2,070,000

Capital Expense$ 4,240,000$ 1,280,000$ 5,520,000

PFH Net Capital Required$ 2,650,000$ 800,000$ 3,450,000

Annual Operating Expense ImpactExisting ServicesNew ServicesFY 2020FY 2021FY 2022FY 2023FY 2024FY 2025FY 2026FY 2027FY 2028FY 2029FY 2030FY 2031FY 2032FY 2033FY 2034Totals

Net Rent Increase$ 7,956$ 180,800$ 188,756$ 193,475$ 198,312$ 203,269$ 208,351$ 213,560$ 218,899$ 224,371$ 229,981$ 235,730$ 241,623$ 247,664$ 253,856$ 260,202$ 266,707$ 3,384,755

Additional Annual Depreciation$ 176,667$ 53,333$ 230,000$ 230,000$ 230,000$ 230,000$ 230,000$ 230,000$ 230,000$ 230,000$ 230,000$ 230,000$ 230,000$ 230,000$ 230,000$ 230,000$ 230,000$ 3,450,000

Total Annual Impact$ 184,622$ 234,133$ 418,756$ 423,475$ 428,312$ 433,269$ 438,351$ 443,560$ 448,899$ 454,371$ 459,981$ 465,730$ 471,623$ 477,664$ 483,856$ 490,202$ 496,707$ 6,834,755

Assumes 2.5% rent escalation each year; Assumes Opex consistent with current space

Relocating Occupants to New MOBFrom Where?Current Sq. Ft.Future Sq. Ft.Net Sq. Ft. IncreaseCurrent Rate per Sq. Ft.Future Rate per Sq. Ft.Rent Increase per Sq. Ft.Net Rent IncreaseTIA per Sq. Ft.Tenant Improvement AllowanceConstruction cost/Sq. Ft.Capital ExpensePFH Net Capital RequiredAverage Useful Life (years)Additional Annual Depreciation

Existing Services

PFH Cancer AdministrationBldg 12671,6373,0001,363$ 19.51$ 22.60$ 3.09$ 4,212$ 60.00$ 180,000$ 160.00$ 480,000$ 300,00015$ 20,000

PFH Wellness CenterBldg 12674,0735,000927$ 19.51$ 22.60$ 3.09$ 2,864$ 60.00$ 300,000$ 160.00$ 800,000$ 500,00015$ 33,333

PFH Infusion CenterBldg 12672,9993,0001$ 19.51$ 22.60$ 3.09$ 3$ 60.00$ 180,000$ 160.00$ 480,000$ 300,00015$ 20,000

PFH Radiation Oncology (Not Linacc)Bldg 12678,8179,000183$ 19.51$ 22.60$ 3.09$ 565$ 60.00$ 540,000$ 160.00$ 1,440,000$ 900,00015$ 60,000

PFH Women's ImagingBldg 12796,3736,500127$ 20.15$ 22.60$ 2.45$ 311$ 60.00$ 390,000$ 160.00$ 1,040,000$ 650,00015$ 43,333

Existing Services Subtotal23,89926,5002,601$ 7,956$ 1,590,000$ 4,240,000$ 2,650,000$ 176,667

New Services

PFH Boutique/Caf/Retail/PharmacyN/A- 02,0002,000$ - 0$ 22.60$ 22.60$ 45,200$ 60.00$ 120,000$ 160.00$ 320,000$ 200,00015$ 13,333

PFH Lab Draw/STAT LabN/A- 01,0001,000$ - 0$ 22.60$ 22.60$ 22,600$ 60.00$ 60,000$ 160.00$ 160,000$ 100,00015$ 6,667

PFH PET/CTN/A- 03,5003,500$ - 0$ 22.60$ 22.60$ 79,100$ 60.00$ 210,000$ 160.00$ 560,000$ 350,00015$ 23,333

PFH TimeshareN/A- 01,5001,500$ - 0$ 22.60$ 22.60$ 33,900$ 60.00$ 90,000$ 160.00$ 240,000$ 150,00015$ 10,000

New Services Subtotal- 08,0008,000$ 180,800$ 480,000$ 1,280,000$ 800,000$ 53,333

Totals23,89934,50010,601$ 188,756$ 2,070,000$ 5,520,000$ 3,450,000$ 230,000

Lease Term DatesDate

PFH Cancer Administration9/30/21

PFH Wellness Center9/30/21

PFH Infusion Center9/30/21

PFH Radiation Oncology (Not Linacc)9/30/21

PFH Women's Imaging7/31/23

PMCC Services moving to New MOB

New Medical Office Building

Financial Impact to PMCC/PHI

Estimated Commencement: July 2019

As of Date: 11/07/2017

Square FootageExisting ServicesNew ServicesTotal

Current Sq. Ft.6,915- 06,915

Future Sq. Ft.7,0003,00010,000

Net Sq. Ft. Increase853,0003,085

Capital Expense SummaryExisting ServicesNew ServicesTotal

Tenant Improvement Allowance$ 420,000$ 180,000$ 600,000

Capital Expense$ 1,120,000$ 480,000$ 1,600,000

PFH Net Capital Required$ 700,000$ 300,000$ 1,000,000

Annual Operating Expense ImpactExisting ServicesNew ServicesFY 2020FY 2021FY 2022FY 2023FY 2024FY 2025FY 2026FY 2027FY 2028FY 2029FY 2030FY 2031FY 2032FY 2033FY 2034Totals

Net Rent Increase$ 208$ 67,800$ 68,008$ 69,708$ 71,451$ 73,237$ 75,068$ 76,945$ 78,869$ 80,840$ 82,861$ 84,933$ 87,056$ 89,233$ 91,464$ 93,750$ 96,094$ 1,219,519

Additional Annual Depreciation$ 46,667$ 20,000$ 66,667$ 66,667$ 66,667$ 66,667$ 66,667$ 66,667$ 66,667$ 66,667$ 66,667$ 66,667$ 66,667$ 66,667$ 66,667$ 66,667$ 66,667$ 1,000,000

Total Annual Impact$ 46,875$ 87,800$ 134,675$ 136,375$ 138,118$ 139,904$ 141,735$ 143,612$ 145,535$ 147,507$ 149,528$ 151,600$ 153,723$ 155,899$ 158,130$ 160,417$ 162,761$ 2,219,519

Assumes 2.5% rent escalation each year; Assumes Opex consistent with current space

Relocating Occupants to New MOBFrom Where?Current Sq. Ft.Future Sq. Ft.Net Sq. Ft. IncreaseCurrent Rate per Sq. Ft.Future Rate per Sq. Ft.Rent Increase per Sq. Ft.Net Rent IncreaseTIA per Sq. Ft.Tenant Improvement AllowanceConstruction cost/Sq. Ft.Capital ExpensePFH Net Capital RequiredAverage Useful Life (years)Additional Annual Depreciation

Existing Services

PMCC Breast/GYN Surgery ClinicBldg 12796,9157,00085$ 20.15$ 22.60$ 2.45$ 208$ 60.00$ 420,000$ 160.00$ 1,120,000$ 700,00015$ 46,667

- 0$ - 0$ - 0$ 60.00$ - 0$ 160.00$ - 0$ - 015$ - 0

- 0$ - 0$ - 0$ 60.00$ - 0$ 160.00$ - 0$ - 015$ - 0

- 0$ - 0$ - 0$ 60.00$ - 0$ 160.00$ - 0$ - 015$ - 0

- 0$ - 0$ - 0$ 60.00$ - 0$ 160.00$ - 0$ - 015$ - 0

Existing Services Subtotal6,9157,00085$ 208$ 420,000$ 1,120,000$ 700,000$ 46,667

New Services

PMCC Lung Surgery/Pulm Nodule ClinicN/A- 03,0003,000$ - 0$ 22.60$ 22.60$ 67,800$ 60.00$ 180,000$ 160.00$ 480,000$ 300,00015$ 20,000

- 0- 0$ - 0$ - 0$ - 0$ 60.00$ - 0$ 160.00$ - 0$ - 015$ - 0

- 0- 0$ - 0$ - 0$ - 0$ 60.00$ - 0$ 160.00$ - 0$ - 015$ - 0

- 0- 0$ - 0$ - 0$ - 0$ 60.00$ - 0$ 160.00$ - 0$ - 015$ - 0

New Services Subtotal- 03,0003,000$ 67,800$ 180,000$ 480,000$ 300,000$ 20,000

Totals6,91510,0003,085$ 68,008$ 600,000$ 1,600,000$ 1,000,000$ 66,667

Lease Term DatesDate

PMCC Breast/GYN Surgery Clinic7/31/23

PMCC Lung Surgery/Pulm Nodule ClinicN/A

PHI Services expanding in 1267

1267 Medical Office Building

Financial Impact to PMCC/PHI

As of Date: 11/07/2017

Square FootageExisting ServicesNew ServicesTotal

Current Sq. Ft.- 0- 0- 0

Future Sq. Ft.2,9994,0737,072

Net Sq. Ft. Increase2,9994,0737,072

Capital Expense SummaryExisting ServicesNew ServicesTotal

Tenant Improvement Allowance$ - 0$ - 0$ - 0

Capital Expense$ 359,880$ 488,760$ 848,640

PFH Net Capital Required$ 359,880$ 488,760$ 848,640

Annual Operating Expense ImpactExisting ServicesNew ServicesFY 2020FY 2021FY 2022FY 2023FY 2024FY 2025FY 2026FY 2027FY 2028FY 2029FY 2030FY 2031FY 2032FY 2033FY 2034Totals

Net Rent Increase$ 60,430$ 82,071$ 142,501$ 146,063$ 149,715$ 153,458$ 157,294$ 161,227$ 165,257$ 169,389$ 173,623$ 177,964$ 182,413$ 186,973$ 191,648$ 196,439$ 201,350$ 2,555,314

Additional Annual Depreciation$ 23,992$ 32,584$ 56,576$ 56,576$ 56,576$ 56,576$ 56,576$ 56,576$ 56,576$ 56,576$ 56,576$ 56,576$ 56,576$ 56,576$ 56,576$ 56,576$ 56,576$ 848,640

Total Annual Impact$ 84,422$ 114,655$ 199,077$ 202,639$ 206,291$ 210,034$ 213,870$ 217,803$ 221,833$ 225,965$ 230,199$ 234,540$ 238,989$ 243,549$ 248,224$ 253,015$ 257,926$ 3,403,954

Assumes 2.5% rent escalation each year; Assumes Opex consistent with current space

Relocating Occupants to New MOBFrom Where?Current Sq. Ft.Future Sq. Ft.Net Sq. Ft. IncreaseCurrent Rate per Sq. Ft.Future Rate per Sq. Ft.Rent Increase per Sq. Ft.Net Rent IncreaseTIA per Sq. Ft.Tenant Improvement AllowanceConstruction cost/Sq. Ft.Capital ExpensePFH Net Capital RequiredAverage Useful Life (years)Additional Annual Depreciation

Existing Services

Piedmont Heart Institute (expansion)Bldg 1267- 02,9992,999$ 20.15$ 20.15$ - 0$ 60,430$ - 0$ - 0$ 120.00$ 359,880$ 359,88015$ 23,992

- 0$ - 0$ - 0$ - 0$ - 0$ 120.00$ - 0$ - 015$ - 0

- 0$ - 0$ - 0$ - 0$ - 0$ 120.00$ - 0$ - 015$ - 0

- 0$ - 0$ - 0$ - 0$ - 0$ 120.00$ - 0$ - 015$ - 0

- 0$ - 0$ - 0$ - 0$ - 0$ 120.00$ - 0$ - 015$ - 0

Existing Services Subtotal- 02,9992,999$ 60,430$ - 0$ 359,880$ 359,880$ 23,992

New Services

Piedmont Heart Institute - EPN/A- 04,0734,073$ - 0$ 20.15$ 20.15$ 82,071$ - 0$ - 0$ 120.00$ 488,760$ 488,76015$ 32,584

- 0- 0$ - 0$ - 0$ - 0$ - 0$ - 0$ 120.00$ - 0$ - 015$ - 0

- 0- 0$ - 0$ - 0$ - 0$ - 0$ - 0$ 120.00$ - 0$ - 015$ - 0

- 0- 0$ - 0$ - 0$ - 0$ - 0$ - 0$ 120.00$ - 0$ - 015$ - 0

New Services Subtotal- 04,0734,073$ 82,071$ - 0$ 488,760$ 488,760$ 32,584

Totals- 07,0727,072$ 142,501$ - 0$ 848,640$ 848,640$ 56,576

Subleases

Anticipated Subleases for Vacated Space

Impact of Vacated and Subleased Space

Estimated Commencement: July 2019

As of Date: 11/07/2017

BldgOpening DateTerm DateRemaining TermCurrent TenantFuture Sublease TenantSq. Ft. Current Rental RateAnnual Rental ExpenseRemaining Term ExpenseSublease DateSublease TermSubleasedSq. Ft.Subleased Rental RateSubleased Rental ExpenseSublease OffsetNet Impact

12677/1/199/30/212.25PFH Oncology AdministrationSouthern Crescent Women's 1,637$ 19.51$ 31,938$ 71,92612/1/191.831,637$ 19.51$ 31,938$ 58,538$ (13,388)

12677/1/199/30/212.25PFH Wellness CenterPHI - EP Services4,073$ 19.51$ 79,464$ 178,95812/1/191.834,073$ 19.51$ 79,464$ 145,648$ (33,310)

12677/1/199/30/212.25PFH InfusionPHI Expansion2,999$ 19.51$ 58,510$ 131,76912/1/191.832,999$ 19.51$ 58,510$ 107,243$ (24,526)

12677/1/199/30/212.25PFH RadiationPeachtree City GYN8,817$ 19.51$ 172,020$ 387,39812/1/191.838,817$ 19.51$ 172,020$ 315,291$ (72,107)

12797/1/197/31/234.08PFH Breast ImagingClayton State6,373$ 19.51$ 124,337$ 507,90912/1/193.676,373$ 19.51$ 124,337$ 455,790$ (52,119)

12797/1/197/31/234.08PMCC Breast/GYN Surgery ClinicClayton State6,915$ 20.15$ 139,337$ 569,18312/1/193.676,915$ 20.15$ 139,337$ 510,776$ (58,407)

30,814$ 605,607$ 1,847,14230,814$ 605,607$ 1,593,285$ (253,857)

Notes

Use1265 Bldg Current SF1267 Bldg Current SF1279 Bldg Current SFNew SFTotal SFCurrent Location1265 Bldg1267 Bldg1279 Bldg New MOB

PMCC Pulmonology5232052321265523200

PFH Heart Failure Clinic19940199412651994

PHC IS18150181512651815

PFH Employee Center29380293812652938

PFH Case Management25240252412652524

PMCC Hospitalists35803581265358

PFH Sleep Lab63370633712676337

PMCC Internal Medicine78680786812677868

PFH Medical Staff Administration79650796512677965

PFH Oncology Administration16371363300012673000Backfill w/ Southern Crescent Women's (1637 SF)

PFH Wellness Center4073927500012675000Backfill w/ PHI - EP (4073 SF)Incremental Cost

PFH Cardiac Rehab51050510512675105

MD Sleep Quarters276502765126739040Backfill w/ Women's Specialist (2765 SF); Move Sleep Quarters to 1265 Bldg (3904 SF)

CV Imaging42270422712674227

PHI1289812898126712898

PHI - EP (expansion)3500350012673500Potential Ste. 5300 & 4300

PFH Infusion29991300012673000Backfill w/ PHI Expansion

PFH Radiation8817183900012679000Backfill w/ Peachtree City Gyn per Michael

MSO&MD Lounge31130311312673113

LINAC33710337112673371

PMCC Lung Surgery/Pulm Nodule Clinic30003000New3000Incremental Cost

PFH Breast Imaging6373127650012796500LED: 7/31/23; Backfill with Clayton State (13,288 SF)?Incremental Cost

PMCC Breast/GYN Surgery Clinic691585700012797000LED: 7/31/23; Backfill with Clayton State (13,288 SF)?Incremental Cost

PFH Timeshare15001500New1500

PFH PET/CT35003500New3500

PFH Boutique/Caf/Retail Pharmacy20002000New2000

PFH Lab Draw/STAT10001000New1000

Excess Occupancy9479947955750

TOTAL PHC243407117513288171861259892434054384044500

North Atlanta Surgical464646464646

Atlanta ID Group454145414541

Lung Care Specialists216921692169

Scott A. Wolfe: Scott A. Wolfe:Need to verify,

M&O interviews had them terminating their lease in 1265

Summit Endoscopy 685068506850

Digestive Healthcare115741157411574

Southern Crescent ENT390439040

Ortho Atlanta201282012820128

PH FCU140414041404

CHOA158521585215852

Clayton State013288

Atlanta Vascular284128410Relocated to 1233 Hwy 54

Nephrology Consultants of GA323432343234

Piedmont Cancer Institute1169411694011694Backfill w/ Southern Crescent Womens

Pain Consultants694969490Relocated to 1233 Hwy 54

Women's Specialists of Fayette833727651110211102Expand into MD Sleep Quarters

TBD35510

Non Piedmont SF7106833055671644984613288

Total Building SF954081042309150410423090000

UsesLand 1,050,000Land Soft Costs 103,000Building Shell 11,500,000Building Interior Finish (FF&E) 390,000Hard Contingency Cost 596,019Residential Appliances 30,375Architect and Engineering 529,600Other Fees (Impact, TAP, Permit, etc) 338,032Soft Cost Contingency 33,392Construction Interest 261,245Free Rent Interest Expense 264,803Third Party Reports 9,000Title 3,500Course of Construction insurance 46,122Brokerage Fee 115,000Lender Financing Fee 1.00% 122,939Lender Legal 40,000 177,939Lender 3rd Party Inspector 15,000Borrower Legal 15,000Equity Legal (TBD) 0JV Partnership 25,000Accounting 10,000CON Attorney 37,190Partnership Expenses 50,000Marketing 5,000Signage expenses 10,250Travel 40,000Developer Fee 796,000Total $16,436,467

Development Financing- (Lender Analysis)

Sizing $23,963,090 (value)Lesser of75% LTC Max $12,293,99175% LTV Max $17,972,318

Debt Service PaymentRate 4.25%Term 25yearsPV $ 12,293,900

PMT $ (807,888)Interest Only $ 522,491

$ 261,245.38

SourcesConstruction Loan (75% LTC) 12,293,900Borrower Equity 4,142,567Tota l $16,436,467

Interest Carry Costs Real $$$-Importance of Contractor

Meeting Schedule!

Development Equity Financing

Deal Level Cash Flow (EOY 2 Sale) 4/1/2017 11/1/2018 10/31/2019 10/30/2020 XIRRCash (4,475,872)$ -$ 575,956$ 7,568,300$ 18.61%Pref 10% 969,772$ (393,817)$ 2,698,611$ LP Owner 88.8%; 70% (3,975,872)$ -$ 511,449$ 6,214,609$ 16.20%GP A 5.6%; 15% (250,000)$ -$ 32,254$ 676,845$ 34.35%GP B 5.6%; 15% (250,000)$ -$ 32,254$ 676,845$ 34.35%

Why Is the Ownership % Different?

Investor Return Hurdles

Sale XIRR

HG EquitySale

$ 3,975,872Initial 2018EOY2EOY3

OP Equity$ 17,500,000$ 18,528,530$ 18,899,100

$ 250,000.0011.4311.43

Avenue Equity8.75%8.75%

$ 250,000.00Contingency Unused

Loan$ 625,000.00

$ 11,927,301

Interest Only PaymentRate4%

$ 417,455.55

Lease Payment (Year 1)

$ 993,411

Debt Payment

($815,995)EOY1EOY2EOY3

4/1/1711/1/1810/31/1910/30/2010/30/2110/30/2210/30/23

REVENUE$ (3,975,872)$ 993,411$ 1,621,246$ 1,653,671$ 1,686,745$ 1,720,480

DEBT SERVICE$ (417,456)$ (801,425.99)$ (815,995)$ (815,995)$ (815,995)

EOY1EOY2EOY3IRRXIRRXNPV

Project4/1/1711/1/1810/31/1910/30/2010/30/2110/30/2210/30/23

CASH FLOW- Lease$ (4,475,872)$ 575,956$ 819,820$ 837,676$ 870,749$ 904,484

INITIAL SALE 2018$ (4,475,872)$6,197,69938%22.77%$ 1,347,982

SALE EOY 2$ (4,475,872)$ - 0$ 575,956$ 7,568,30023%18.61%$ 2,620,529

SALE EOY 3$ (4,475,872)$ - 0$ 575,956$ 819,820$ 7,956,72622%18.48%$ 3,404,449

Deal Level Cash Flow (EOY 2 Sale)4/1/1711/1/1810/31/1910/30/20XIRR

Cash$ (4,475,872)$ - 0$ 575,956$ 7,568,30018.61%

Pref 10%$ 969,772$ (393,817)$ 2,698,611

LP Owner 88.8%; 70%$ (3,975,872)$ - 0$ 511,449$ 6,214,60916.20%

GP A 5.6%; 15%$ (250,000)$ - 0$ 32,254$ 676,84534.35%

GP B 5.6%; 15%$ (250,000)$ - 0$ 32,254$ 676,84534.35%

Americare NPVXNPV11/1/1811/1/1911/1/2011/1/21

Initial Purchase$ 17,500,000$ 17,500,000

Purchase EOY 2$ 19,582,802$ - 0$ 993,411$ 20,149,776

Purchase EOY 3$ 20,723,351$ - 0$ 993,411$ 1,621,246$ 20,552,772

6/30/219/30/2112/31/213/31/226/30/229/30/22

$ 73,000$ 73,000$ - 0$ - 0$ - 0$ (292,000)

5/1/1812/31/193/31/206/30/209/30/2012/31/203/31/21

$ - 0$ - 0$ - 0$ - 0$ - 0$ 73,000$ 73,000

HG XIRR (with 4 years interest only)0.0%6/30/219/30/2112/31/213/31/226/30/229/30/22

$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0

5/1/1812/31/193/31/206/30/209/30/2012/31/203/31/21

$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0

HG XIRR (with 3 years interest only)ERROR:#NUM!

$ (1,392,000)

$ - 0$ - 0

160000

$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,392,000

$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0

Investor XIRRERROR:#NUM!

OLD

HG Equity

$ 3,975,872

Loan

$ 11,927,301

Interest Only Payment

$ 417,455.55

Lease Payment (Year 1)

$ 993,411

Debt Payment

($815,995)

Loan Terms:Construction I/O (36mos)

Mini-Perm (25yr)

Progress:Construction (18mos)Lease Operations

Lease Terms:Lease Yr1Lease Yr2Lease Yr3Lease Yr4Lease Yr5

Start:4/1711/18 - 10/1911/19 - 10/2011/20 - 10/2111/21 - 10/2211/21 - 10/23

I/O End:4/18/20

012345

Cap Rate9.09%9.17%

Rent MultipleN/a1110.9

REVENUE$ (3,975,872)$ 993,411$ 1,621,246$ 1,653,671$ 1,686,745$ 1,720,480

DEBT SERVICE$ (417,456)$ (801,425.99)$ (815,995)$ (815,995)$ (815,995)

4/1/1710/1/199/30/209/30/219/30/229/30/23

CASH FLOW$ (3,975,872)$ 575,956$ 819,820$ 837,676$ 870,749$ 904,484

Sale Price$ 17,833,710$ 18,025,017$ - 0$ - 0

CASH FLOW AFTER SALE (Yr 2)$ (3,975,872)$ 575,956$ 6,873,480

CASH FLOW AFTER SALE (Yr 2)$ (3,975,872)$ 575,956$ 819,820$ 7,082,642

IRR (project)39%32%

XIRR (project)20.17%19.56%

Cash Flow after Debt Service$ 575,956$ 819,820$ 837,676

HG Pref of 10%$ (993,968)$ (418,012)$ - 0$ (1,411,980)HG

HG Additional Payoff$ - 0HG

Cash Flow available for Splits$ - 0$ (418,012)$ 401,808$ 837,676

HG Split at 78%$ 313,410$ 653,387$ (966,797)HG

HG Avenue Split at 11%$ 44,199$ 92,144

OP Split at 11%$ 44,199$ 92,144

HG Remaining Principal Payback$ 3,975,872

Net Sale Proceeds$ 6,873,480

5/1/1810/1/2010/1/2110/1/2210/2/22

HG Cash Flow (w/o LP Fee)$ (3,975,872)$ 993,968$ 731,423$ 653,387$ 5,424,676$ (5,424,676)HG

HG IRR23.37%

HG XIRR18.20%

HG Net Profits$ 3,827,582

HG Cash Flow (w/ LP Fee)$ (3,975,872)$ 1,156,495$ 731,423$ 653,387$ 5,424,676

HG IRR (w/LP fee)24.72%

HG XIRR (w/LP fee)19.01%

Avenue Cash Flow - Annual$ - 0$ 44,199$ 92,144$ 1,448,804

Avenue Cash Flow - Cumulative$ - 0$ 44,199$ 136,343$ 1,585,147$ (1,585,147)AVE

$ (9,388,601)Check

5/1/1812/31/193/31/206/30/209/30/2012/31/203/31/216/30/219/30/2112/31/213/31/226/30/229/30/22

$ (3,975,872)$ 248,492$ 248,492$ 248,492$ 248,492$ 255,856$ 255,856$ 255,856$ 255,856$ 163,347$ 163,347$ 163,347$ 5,296,023

HG XIRR (with 4 years interest only)19.2%

5/1/1812/31/193/31/206/30/209/30/2012/31/203/31/216/30/219/30/2112/31/213/31/226/30/229/30/22

$ (3,975,872)$ 248,492$ 248,492$ 248,492$ 248,492$ 182,856$ 182,856$ 182,856$ 182,856$ 163,347$ 163,347$ 163,347$ 5,588,023

HG XIRR (with 3 years interest only)18.9%

160000$ 4,196,023

$ 46,385$ 79,517$ 79,517$ 79,517$ 59,638

$ (4,022,257)$ 168,975$ 248,492$ 248,492$ 248,492$ 103,338$ 182,856$ 182,856$ 182,856$ 83,829$ 163,347$ 163,347$ 1,332,362

Investor XIRR-5.5%

Control

2100 NW Barry Road Model05/08/18

Asset SummaryConstruction Financing AssumptionsExit AssumptionsCIRC1

Asset Name / Address2100 NW Barry RoadFinancing QuarterQ0Hold PeriodQ40

City, StateKansas City, MOFinancing Fee1.50%$58.0230Exit Date03/31/27

Year Built 2017Equity Reserve$5,026$5,026FTM Economic Occupancy100.0%

Size (Land Acres / Building SF)5.95 Acres61,139Max Financing Proceeds$11,727Forward Exit Cap Rate (ex-free rent)8.25%

Number of Stories1Total Financing Proceeds$11,440Gross Exit ValueExit NOI = 1,890.222,912

Number of Beds90All-in LTC70.0%Per Bed / PSF$254,577374.8

Future Funding %100.0%Sales Cost2.00%

RateLIBOR +3.500%

Acquisition SummaryI/O Period20 QuartersGeneral Assumptions / MLAs

Land Purchase Price1,050Amortization30 YearsFloorsYoCRent/YrRent PSFStepsLCsAbate.Term

CON Purchase Price900Fixed / FloatingFixedNNN Operator Lease9.5%$1,589$26.002.0% Ann. Inc.0.00 Quarters15 Yrs8.25%

Total Purchase Price1,950LIBOR Floor/CapQ120.02.00%

Per Acre327,731Equity Guarantee Reserve0.00.0Lease Commencement DateQ69/30/18

Q0 Funding$1,950.0Maturity Date03/31/21LC Payment DateQ69/30/18

Q1 Funding0.0ReimbursementsNNN

Q2 Funding0.0Refinancing Assumptions (HUD)

Q3 Funding0.0Refinancing Quarter03/31/21Q16

Q4 Funding0.0Issuance Cost1.50%General Vacancy & Credit Loss 0.0

2020All-In Capital Required (Txn + Shortfalls)16,516FTM Nominal NOI1,678.5Inflation3.0%

Per SF270.14Cap Rate8.25%

Stabilized Cap Rate (2020)10.0%Financing Valuation20,345.2

Acquisition Date / Land Closing Date03/31/1703/31/17PSF332.77Cash Flow SummaryLeasing Commissions

LTV83.6%Mar-18Mar-19Mar-20Mar-21Mar-22RentLC

Sources and Uses at Option ClosingDebt Amount$17,000Economic NOI--1,1821,6001,6321,664Year 1$1,589$0.00

Sources$%Debt Yield9.9%Yield--7.4%10.0%10.2%10.4%Year 21,6210.0

Equity2,000100.0%Rate5.500%Year 31,6540.0

Land Acquisition Financing----I/O Period0 QuartersUnlevered CF(11,850)(112)1,6001,6321,664Year 41,6870.0

Total Sources2,000100.0%Amortization35 YearsYield(80.3%)(0.7%)10.0%10.2%10.4%MLAYear 51,7200.0

UsesMRT0.0--Year 61,7550.0

Purchase Price1,95097.5%Quarterly Debt Service (w/Ammo)273.9Levered CF--7229426,197569Year 71,7900.0

Unlevered Costs502.5%Maturity Date03/31/27Yield(135.6%)(13.8%)19.1%12.5%11.2%Year 81,8260.0

Land Loan Levered Costs----Year 91,8620.0

Lender Reserves----Total Capitalization SummaryEconomic Occ.--75.0%100.0%100.0%100.0%Year 101,9000.0

Upfront CapEx----Equity Required at Closing2,000Year 111,9380.0

Interest Reserve----Plus: Future Equity Funding Needs3,076Debt Yield--10.3%14.0%9.6%9.9%Year 121,9760.0

Working Capital----Plus: Capitalized Development Fee--DSCR0.00x2.01x2.54x2.20x1.52xYear 132,0160.0

Total Uses2,000100.0%All-In Equity Required5,076Year 142,0560.0

Avenue Senior Living21.7%1,100Year 152,0970.0

Limited Partners78.3%3,976Partnership SummaryYear 160.00.0

GP NameAvenue Senior LivingYear 170.00.0

Return SummaryTotal Debt (Including EB-5)11,440Avenue GP Investment %$55010.8%Year 180.00.0

Unlevered IRR / CFx12.3%All-In LTC (excluding Capitalized Development Fee)69.3%OnPointe GP Investment %Cash Invest$55010.8%Year 190.00.0

Unlevered CFx2.33xPartner Investment %$500$1,10021.7%Year 200.00.0

Less: Equity Guarantee Reserve0.0LP Investment %$3,676$3,97678.3%Total$27,487$0.00

Deal-LevelAsset Management Fee (GAV Post Construction)$66.10.4%

Levered IRR25.2%Total CapitalizationWARNING16,516Pref Return--

Levered CFx3.62xBed / PSF$183,512270.1Promote--

Nominal Profit13,294.0Second Hurdle0.00x10.0%

Promote30.0%

Land Acquisition Financing

Amount3/31/17--

LTC--

Rate4.000%

I/O Period40 Quarters

Amortization30 Years

Fixed / FloatingFixed

LIBOR Floor/CapQ120.02.00%

Y4 Interest Rate CapQ120.00.0

Extension/Maturity DateQ12Q1603/31/21

Fee (Extension/Upfront)0.25%0.25%1.00%

Exit Fee--

2100 NW Barry Road Sensitivity Analysis

Deal-Level Unlevered Sensitivity Analysis Exit Cap Rate

Exit Cap Rate / Implied PSF Pricing

7.50% / $412/SF7.75% / $399/SF8.00% / $386/SF8.25% / $375/SF8.50% / $364/SF

7.50%7.75%8.00%8.25%8.50%

Unlevered12.3% / 2.33x13.0% / 2.47x12.8% / 2.42x12.5% / 2.37x12.3% / 2.33x12.0% / 2.29x

Levered25.2% / 3.62x25.2% / 3.62x25.2% / 3.62x25.2% / 3.62x25.2% / 3.62x25.2% / 3.62x

Deal-Level Levered Sensitivity Analysis YoC Lease Rate vs. Exit Cap Rate

Exit Cap Rate / Implied PSF Pricing

YoC Lease Rate7.50% / $412/SF7.75% / $399/SF8.00% / $386/SF8.25% / $375/SF8.50% / $364/SF

25.2% / 3.62x7.50%7.75%8.00%8.25%8.50%

9.00%9.00%25.2% / 3.62x25.2% / 3.62x25.2% / 3.62x25.2% / 3.62x25.2% / 3.62x

9.25%9.25%25.2% / 3.62x25.2% / 3.62x25.2% / 3.62x25.2% / 3.62x25.2% / 3.62x

9.50%9.50%25.2% / 3.62x25.2% / 3.62x25.2% / 3.62x25.2% / 3.62x25.2% / 3.62x

9.75%9.75%25.2% / 3.62x25.2% / 3.62x25.2% / 3.62x25.2% / 3.62x25.2% / 3.62x

10.00%10.00%25.2% / 3.62x25.2% / 3.62x25.2% / 3.62x25.2% / 3.62x25.2% / 3.62x

EB-5 Financing Assumptions

Financing QuarterQ0

Total Financing Proceeds0.0

All-in LTC69.3%

Financing Fee--$100.00.0

Financing Fee %ERROR:#DIV/0!

Rate5.000%

I/O Period20 Quarters

Amortization0 Years

Fixed / FloatingFixed

LIBOR Floor/CapQ120.0167847.63%

Maturity Date03/31/27

CFs

2100 NW Barry Road Quarterly Cash Flow Summary2100 NW Barry Road Annual Cash Flow Summary

Calendar Quarter Type:412341234123412341234123412341234123412341234

Calendar Year:201720172017201720182018201820182019201920192019202020202020202020212021202120212022202220222022202320232023202320242024202420242025202520252025202620262026202620272027202720272028Calendar Year:20172018201920202021202220232024202520262027

Year Counter:0.001.001.001.001.002.002.002.002.003.003.003.003.004.004.004.004.005.005.005.005.006.006.006.006.007.007.007.007.008.008.008.008.009.009.009.009.0010.0010.0010.0010.0011.0011.0011.0011.00Year Counter:0.001.002.003.004.005.006.007.008.009.0010.00

Quarter Counter:Q0Q1Q2Q3Q4Q5Q6Q7Q8Q9Q10Q11Q12Q13Q14Q15Q16Q17Q18Q19Q20Q21Q22Q23Q24Q25Q26Q27Q28Q29Q30Q31Q32Q33Q34Q35Q36Q37Q38Q39Q40Q41Q42Q43Q44Quarter Counter:Q0Q4Q8Q12Q16Q20Q24Q28Q32Q36Q40

03/31/1706/30/1709/30/1712/31/1703/31/1806/30/1809/30/1812/31/1803/31/1906/30/1909/30/1912/31/1903/31/2006/30/2009/30/2012/31/2003/31/2106/30/2109/30/2112/31/2103/31/2206/30/2209/30/2212/31/2203/31/2306/30/2309/30/2312/31/2303/31/2406/30/2409/30/2412/31/2403/31/2506/30/2509/30/2512/31/2503/31/2606/30/2609/30/2612/31/2603/31/2706/30/2709/30/2712/31/2703/31/2803/31/1703/31/1803/31/1903/31/2003/31/2103/31/2203/31/2303/31/2403/31/2503/31/2603/31/27

UNLEVERED CASH FLOW SUMMARYUNLEVERED CASH FLOW SUMMARY

Base Rental Revenue397397397397397397397397397405405405405413413413413422422422422430430430430439439439439447447447447456456456456466466466466475475475Base Rental Revenue1,5891,5891,6131,6461,6781,7121,7461,7811,8171,853

Less: Absorption & Turnover Vacancy(397)(397)(397)(397)(397)------------------------------------------------------------------------------Less: Absorption & Turnover Vacancy(1,589)(397)----------------

Less: Base Rent Abatements----------------------------------------------------------------------------------------Less: Base Rent Abatements--------------------

Scheduled Base Rental Revenue----------397397397397405405405405413413413413422422422422430430430430439439439439447447447447456456456456466466466466475475475Scheduled Base Rental Revenue--1,1921,6131,6461,6781,7121,7461,7811,8171,853

Plus: Other Revenue----------------------------------------------------------------------------------------Plus: Other Revenue--------------------

Total Potential Gross Revenue----------397397397397405405405405413413413413422422422422430430430430439439439439447447447447456456456456466466466466475475475Total Potential Gross Revenue--1,1921,6131,6461,6781,7121,7461,7811,8171,853

Less: General Vacancy ----------------------------------------------------------------------------------------Less: General Vacancy --------------------

Effective Gross Revenue----------397397397397405405405405413413413413422422422422430430430430439439439439447447447447456456456456466466466466475475475Effective Gross Revenue--1,1921,6131,6461,6781,7121,7461,7811,8171,853

Economic Occupancy----------100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%Economic Occupancy--75.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%

Less: Operating Expenses----------------------------------------------------------------------------------------Less: Operating Expenses--------------------

Nominal Net Operating Income----------397397397397405405405405413413413413422422422422430430430430439439439439447447447447456456456456466466466466475475475Nominal Net Operating Income--1,1921,6131,6461,6781,7121,7461,7811,8171,853

$0.20Less: Capital Reserves ($0.20/SF/Year)----------(3)(3)(3)(3)(3)(3)(3)(3)(3)(3)(3)(4)(4)(4)(4)(4)(4)(4)(4)(4)(4)(4)(4)(4)(4)(4)(4)(4)(4)(4)(4)(4)(4)(4)(4)(4)(4)(4)(4)Less: Capital Reserves ($0.20/SF/Year)--(10)(13)(14)(14)(15)(15)(15)(16)(16)

Economic Net Operating Income----------394394394394402402402402410410410410418418418418426426426426435435435435444444444444452452452452461461461461471471471Economic Net Operating Income--1,1821,6001,6321,6641,6971,7311,7661,8011,837

NOI Yield on All-In Costs----------10%10%10%10%10%10%10%10%10%10%10%10%10%10%10%10%11%11%11%11%11%11%11%11%11%11%11%11%11%11%11%11%11%11%11%11%12%12%12%NOI Yield on All-In Costs--7.4%10.0%10.2%10.4%10.6%10.8%11.0%11.2%11.4%

Less: Leasing Commissions----------------------------------------------------------------------------------------Less: Leasing Commissions--------------------

Less: CapEx - Pre-Development(909)----------------------------------------------------------------------------------------Less: CapEx - Pre-Development--------------------

Less: CapEx - Development--(1,450)(2,545)(4,287)(3,568)(1,294)------------------------------------------------------------------------------Less: CapEx - Development(11,850)(1,294)----------------

Unlevered Asset-Level Cash Flow(909)(1,450)(2,545)(4,287)(3,568)(1,294)394394394394402402402402410410410410418418418418426426426426435435435435444444444444452452452452461461461461471471471Unlevered Asset-Level Cash Flow(11,850)(112)1,6001,6321,6641,6971,7311,7661,8011,837

Cash-on-Cash Yield on All-In Costs(133.1%)(147.4%)(153.2%)(96.7%)(32.2%)9.8%9.8%9.8%9.8%10.0%10.0%10.0%10.0%10.2%10.2%10.2%10.2%10.4%10.4%10.4%10.4%10.6%10.6%10.6%10.6%10.8%10.8%10.8%10.8%11.1%11.1%11.1%11.1%11.3%11.3%11.3%11.3%11.5%11.5%11.5%11.5%11.7%11.7%11.7%Cash-on-Cash Yield on All-In Costs(80.3%)(0.7%)10.0%10.2%10.4%10.6%10.8%11.0%11.2%11.4%

Gross Land Purchase Price(1,950)----------------------------------------------------------------------------------------Gross Land Purchase Price(1,950)--------------------

Plus: Upfront CapEx------------------------------------------------------------------------------------------Plus: Upfront CapEx----------------------

Working Capital------------------------------------------------------------------------------------------Working Capital----------------------

Plus: Closing Costs(50)----------------------------------------------------------------------------------------Plus: Closing Costs(50)--------------------

Net Purchase Price(2,000)----------------------------------------------------------------------------------------Net Purchase Price(1,950)--------------------

Gross Exit Price--------------------------------------------------------------------------------22,912Gross Exit Price--------------------22,912

Less: Future TI/LC Costs----------------------------------------------------------------------------------Less: Future TI/LC Costs----------------------

2.0%Less: Sale Costs (2.0%)--------------------------------------------------------------------------------(458)Less: Sale Costs (2.0%)--------------------(458)

Net Exit Price--------------------------------------------------------------------------------22,454Net Exit Price--------------------22,454

Deal-Level Unlevered Cash Flow(2,909)(1,450)(2,545)(4,287)(3,568)(1,294)39439439439440240240240241041041041041841841841842642642642643543543543544444444444445245245245246146122,915--------Deal-Level Unlevered Cash Flow(2,909)(11,850)(112)1,6001,6321,6641,6971,7311,7661,80124,290

Unlevered IRR12.3%Unlevered IRR12.3%

Unlevered CFx2.33xUnlevered CFx2.33

LIBOR0.82%1.02%1.22%1.39%1.54%1.62%1.71%1.87%2.04%2.18%2.27%2.33%2.38%2.42%2.45%2.49%2.52%2.55%2.59%2.63%2.66%2.68%2.70%2.71%2.73%2.76%2.80%2.85%2.88%2.88%2.85%2.80%2.76%2.75%2.77%2.81%

LEVERED CASH FLOW SUMMARYLEVERED CASH FLOW SUMMARY

Levered Closing Costs--------------------------------(255)------------------------------------------Levered Closing Costs--------(255.0)------------

Development Loan Fees(230)--------------------------------------------------------------------------Development Loan Fees(229.6)--------------------

Equity Reserve Funding(5,026)--------------------------------------------------------------------------Equity Reserve Funding(5,026.0)--------------------

Equity Reserve Draw3,0891,450487----------------------------------------------------------------------Equity Reserve Draw3,088.71,937.3------------------

Equity Guarantee Reserve----------------------------------------------------------------------------Equity Guarantee Reserve----------------------

Lender Reserves----------------------------------------------------------------------------Lender Reserves----------------------

ReFi MRT----------------------------------------------------------------------------ReFi MRT----------------------

Future Interest Rate Caps----------------------------------------------------------------------------Future Interest Rate Caps----------------------

EB-5 Expenses----------------------------------------------------------------------------EB-5 Expenses

Extension Fees------------------------(29)--------------------------------------------------Extension Fees------(28.6)--------------

Land Acquisition LoanLand Acquisition Loan

Beginning Balance----------------------------------------------------------------------------Beginning Balance----------------------

Issuance----------------------------------------------------------------------------Issuance----------------------

Principal----------------------------------------------------------------------------Principal----------------------

Interest----------------------------------------------------------------------------Interest----------------------

Debt Service----------------------------------------------------------------------------Debt Service----------------------

Repayment at Maturity / Sale----------------------------------------------------------------------------Repayment at Maturity / Sale----------------------

Ending Balance----------------------------------------------------------------------------Ending Balance----------------------

Development LoanDevelopment Loan

Beginning Balance------2,0576,37010,01811,44011,44011,44011,44011,44011,44011,44011,44011,44011,44011,440------------------------------------------Beginning Balance--6,37011,44011,44011,440------------

Issuance--2,0574,3133,6481,422----------------------------------------------------------------Issuance6,3705,070------------------

Principal----------------------------------------------------------------------------Principal----------------------

Interest------(25)(80)(128)(149)(154)(157)(157)(157)(157)(157)(184)(185)(186)(186)------------------------------------------Interest--(105)(588)(629)(740)------------

Debt Service------(25)(80)(128)(149)(154)(157)(157)(157)(157)(157)(184)(185)(186)(186)------------------------------------------Debt Service--(105)(588)(629)(740)------------

Repayment at Maturity / Sale--------------------------------(11,440)------------------------------------------Repayment at Maturity / Sale--------(11,440)------------

Ending Balance----2,0576,37010,01811,44011,44011,44011,44011,44011,44011,44011,44011,44011,44011,440--------------------------------------------Ending Balance6,37011,44011,44011,440--------------

EB-5 FinancingEB-5 Financing

Beginning Balance----------------------------------------------------------------------------Beginning Balance----------------------

Issuance----------------------------------------------------------------------------Issuance----------------------

Actual Draw----------------------------------------------------------------------------

Principal----------------------------------------------------------------------------Principal----------------------

Interest----------------------------------------------------------------------------Interest----------------------

Debt Service----------------------------------------------------------------------------Debt Service----------------------

Repayment at Maturity / Sale----------------------------------------------------------------------------Repayment at Maturity / Sale----------------------

Ending Balance----------------------------------------------------------------------------Ending Balance----------------------

ReFi LoanReFi Loan

Beginning Balance----------------------------------17,00016,96016,91916,87816,83616,79416,75116,70716,66316,61816,57316,52716,48016,43316,38516,33716,28716,23716,18716,13516,08316,03115,97715,923--------Beginning Balance----------17,00016,83616,66316,48016,28716,083

Issuance------------------------------17,000--------------------------------------------------------Issuance--------17,000------------

Principal----------------------------------(40)(41)(41)(42)(42)(43)(44)(44)(45)(45)(46)(47)(47)(48)(49)(49)(50)(51)(51)(52)(53)(53)(54)(55)--------Principal----------(164)(173)(183)(193)(204)(215)

Interest----------------------------------(234)(233)(233)(232)(231)(231)(230)(230)(229)(229)(228)(227)(227)(226)(225)(225)(224)(223)(223)(222)(221)(220)(220)(219)--------Interest----------(932)(922)(913)(902)(892)(880)

Debt Service----------------------------------(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)--------Debt Service----------(1,096)(1,096)(1,096)(1,096)(1,096)(1,096)

Repayment at Maturity / Sale--------------------------------------------------------------------------------(15,868)--------Repayment at Maturity / Sale--------------------(15,868)

Ending Balance--------------------------------17,00016,96016,91916,87816,83616,79416,75116,70716,66316,61816,57316,52716,48016,43316,38516,33716,28716,23716,18716,13516,08316,03115,97715,923----------Ending Balance--------17,00016,83616,66316,48016,28716,083(0)

Consolidated Debt Consolidated Debt

Beginning Balance------2,0576,37010,01811,44011,44011,44011,44011,44011,44011,44011,44011,44011,44011,44017,00016,96016,91916,87816,83616,79416,75116,70716,66316,61816,57316,52716,48016,43316,38516,33716,28716,23716,18716,13516,08316,03115,97715,923--------Beginning Balance----10,01811,44011,44017,00016,83616,66316,48016,28716,083

Issuance----2,0574,3133,6481,422--------------------17,000--------------------------------------------------------Issuance--10,0181,422--17,000------------

Principal----------------------------------(40)(41)(41)(42)(42)(43)(44)(44)(45)(45)(46)(47)(47)(48)(49)(49)(50)(51)(51)(52)(53)(53)(54)(55)--------Principal----------(164)(173)(183)(193)(204)(215)

Interest------(25)(80)(128)(149)(154)(157)(157)(157)(157)(157)(184)(185)(186)(186)(234)(233)(233)(232)(231)(231)(230)(230)(229)(229)(228)(227)(227)(226)(225)(225)(224)(223)(223)(222)(221)(220)(220)(219)--------Interest--(105)(588)(629)(740)(932)(922)(913)(902)(892)(880)

Debt Service------(25)(80)(128)(149)(154)(157)(157)(157)(157)(157)(184)(185)(186)(186)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)(274)--------Debt Service--(105)(588)(629)(740)(1,096)(1,096)(1,096)(1,096)(1,096)(1,096)

Repayment at Maturity / Sale--------------------------------(11,440)----------------------------------------------(15,868)--------Repayment at Maturity / Sale--------(11,440)----------(15,868)

Ending Balance----2,0576,37010,01811,44011,44011,44011,44011,44011,44011,44011,44011,44011,44011,44017,00016,96016,91916,87816,83616,79416,75116,70716,66316,61816,57316,52716,48016,43316,38516,33716,28716,23716,18716,13516,08316,03115,97715,923----------Ending Balance--10,01811,44011,44017,00016,83616,66316,48016,28716,083(0)

Deal-Level Levered CF(5,076)----------2452402372372452452162182252245,5281361441441441441531531531521611611611611701701701701791791791781881886,773--------Deal-Level Levered CF(5,076)--7229426,1975696026366707057,327

Levered Cash-on-Cash Yield on All-In Costs--(162.1%)(339.8%)(287.5%)(112.1%)19.3%19.0%18.7%18.7%19.3%19.3%17.0%17.2%17.8%17.7%(2.5%)10.7%11.4%11.4%11.4%11.4%12.0%12.0%12.0%12.0%12.7%12.7%12.7%12.7%13.4%13.4%13.4%13.4%14.1%14.1%14.1%14.1%14.8%14.8%14.8%Levered Cash-on-Cash Yield on All-In Costs(135.6%)(13.8%)19.1%12.5%11.2%11.9%12.5%13.2%13.9%14.6%

NOI Debt Yield--------13.8%13.8%13.8%13.8%14.1%14.1%14.1%14.1%14.3%14.3%9.6%9.7%9.9%9.9%9.9%10.0%10.2%10.2%10.2%10.3%10.5%10.5%10.6%10.6%10.8%10.9%10.9%10.9%11.2%11.2%11.3%11.3%11.6%11.6%11.6%NOI Debt Yield--10.3%14.0%9.6%9.9%10.2%10.5%10.8%11.2%11.6%

NOI DSCR0.00x0.00x0.00x2.64x2.57x2.51x2.50x2.56x2.56x2.56x2.19x2.22x2.21x2.20x1.50x1.53x1.53x1.53x1.53x1.56x1.56x1.56x1.56x1.59x1.59x1.59x1.59x1.62x1.62x1.62x1.62x1.65x1.65x1.65x1.65x1.68x1.68x1.68xNOI DSCR0.00x2.01x2.54x2.20x1.52x1.55x1.58x1.61x1.64x1.68x

Levered IRR25.2%Levered IRR25.2%

Levered CFx3.62xLevered CFx3.62

Nominal Profit13,294Nominal Profit13,294

ERROR:#REF!

Unlevered GAV(2,909.1)(4,359.0)(6,903.7)(11,191.1)(14,758.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)

Total Financing Costs During Construction229.60.00.025.280.3128.30.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

EB-5 Reserve Account

Beg. Balance0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

Issuance0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

Funding0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

Ending Balance0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

Pref

Avenue Senior Living

Investment Level Cash Flows

03/31/1706/30/1709/30/1712/31/1703/31/1806/30/1809/30/1812/31/1803/31/1906/30/1909/30/1912/31/1903/31/2006/30/2009/30/2012/31/2003/31/2106/30/2109/30/2112/31/2103/31/2206/30/2209/30/2212/31/2203/31/2306/30/2309/30/2312/31/2303/31/2406/30/2409/30/2412/31/2403/31/2506/30/2509/30/2512/31/2503/31/2606/30/2609/30/2612/31/2603/31/2706/30/2709/30/2712/31/2703/31/28

Deal-Level Levered CF(5,076)----------2452402372372452452162182252245,5281361441441441441531531531521611611611611701701701701791791791781881886,773--------

Less: Asset Management Fee0.00.00.00.00.0(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)(16)0.00.00.00.0

Adj. Deal-Level Levered CF(5,076)----------2292242212212292292002022092085,5121201281281281281371371371361451451451451541541541541631631631621721726,757--------

Preferred Return + ROC

Beginning Balance--5,0765,0765,0765,0765,0765,0764,8474,6234,4024,1813,9523,7243,5243,3223,1122,904--------------------------------------------------------

Investments5,076----------------------------------------------------------------------------------------

--Preferred Return Accrual (0%)------------------------------------------------------------------------------------------

Distributions------------(229)(224)(221)(221)(229)(229)(200)(202)(209)(208)(2,904)--------------------------------------------------------

Ending Balance5,0765,0765,0765,0765,0765,0764,8474,6234,4024,1813,9523,7243,5243,3223,1122,904----------------------------------------------------------

CF Check(5,076)----------2292242212212292292002022092082,904--------------------------------------------------------

IRR--

CFx1.00x

Distributions Preferred Return

78.3%LP (78%)(3,976)----------1791761731731791791571581641632,274--------------------------------------------------------

21.7%Avenue Senior Living (22%)(1,100)----------50494848505043444545629--------------------------------------------------------

CF Remaining After Pref--------------------------------2,6091201281281281281371371371361451451451451541541541541631631631621721726,757--------

Second Hurdle (GO Share)

Beginning Balance--3,9764,0754,1774,2824,3894,4984,4324,3674,3034,2374,1644,0894,0353,9773,9133,847--------------------------------------------------------

Investments3,976----------------------------------------------------------------------------------------

10.0%Preferred Return Accrual (10%)--99102104107110112111109108106104102101999896--------------------------------------------------------

0.00xPreferred Return Accrual (0.0x)------------(179)(355)(528)(701)(880)(1,059)(1,216)(1,374)(1,538)(1,701)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)(3,976)

Distributions From ROC + Pref------------(179)(176)(173)(173)(179)(179)(157)(158)(164)(163)(2,274)--------------------------------------------------------

Distributions--------------------------------(1,669)--------------------------------------------------------

Ending Balance3,9764,0754,1774,2824,3894,4984,4324,3674,3034,2374,1644,0894,0353,9773,9133,847----------------------------------------------------------

CF Check(3,976)----------1791761731731791791571581641633,944--------------------------------------------------------

IRR10.0%

CFx1.42x

Distributions Second Hurdle

78.3%LP (78%)--------------------------------1,669--------------------------------------------------------

21.7%Avenue Senior Living (22%)--------------------------------462--------------------------------------------------------

--Avenue Senior Living Promote (0%)------------------------------------------------------------------------------------------

CF Remaining After Second Hurdle--------------------------------4781201281281281281371371371361451451451451541541541541631631631621721726,757--------

Distributions Thereafter

54.8%LP (55%)--------------------------------26266707070707575757580808079848484848989898994943,705--------

15.2%Avenue Senior Living (15%)--------------------------------7218191919192121212122222222232323232525252526261,025--------

30.0%Avenue Senior Living Promote (30%)--------------------------------14336383838384141414144444443464646464949494951512,027--------

LP Summary Cashflows

Investment(3,976)----------------------------------------------------------------------------------------

ROC + Preferred Return------------1791761731731791791571581641632,274--------------------------------------------------------

Second Hurdle--------------------------------1,669--------------------------------------------------------

Thereafter--------------------------------26266707070707575757580808079848484848989898994943,705--------

Cumulative LP CF(3,976)----------1791761731731791791571581641634,20566707070707575757580808079848484848989898994943,705--------

LP IRR21.5%

LP CFx2.88x

LP Profit7,482

Asset Mgt. Fee562

Promote3,180

GAV Calculation(2,909.1)(4,359.0)(6,903.7)(11,191.1)(14,758.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)(16,052.7)

Dev_Budget

Development Proforma

Assumptions

Project SummaryFinancing and Income Assumptions

Site Acreage5.95Loan to Cost %0%

Gross Bldg SF61,139Development Financing Term (mos)0

Approx. GSF per Bed679Development Financing Rate0.000%

Lot Coverage Ratio0.24Financing Points0.00%

No. Beds90Avg % Outstanding, Development0%

No. Floors1Development Loan0.0

Parking Spaces59Equity Requirement$16,753,172

Parking Ratio0.97

Land Price per Acre$327,731

Per AcreABSOLUTETotalTotal PSF

LAND1,950,0001,950,00031.89

SOFT COSTS

LAND SOFT COSTSPer Sq. Ft. (PSF)ABSOLUTETotalTotal PSF

Title Work-8,5008,5000.14

Survey-16,00016,0000.26

Geotechnical Study-8,5008,5000.14

Phase I Environmental-8,5008,5000.14

Phase II Environmental-- 0

Offsite Engineering- 0- 0

Zoning/Entitlement Services20,00020,0000.33

Legal Land Expenses20,00020,0000.33

Transfer/Other Land Taxes3,0003,0000.05

Brokerage Commission- 0- 0

Development Plan20,00020,0000.33

TOTAL LAND SOFT COSTS$ 104,5001.71

ARCHITECTURAL AND ENGINEERINGPer Sq. Ft. (PSF)ABSOLUTETotalTotal PSF

Architect Services -460,000460,0007.52

-- 0

-- 0- 0

Marston Rd Engineering25,00025,0000.41

Site Engineering-54,00054,0000.88

Landscape Engineering-15,00015,0000.25

Construction Project Management-80,00080,0001.31

-- 0

Total A & E$ 634,00010.37

DEVELOPMENT COSTSPer Sq. Ft. (PSF)ABSOLUTETotalTotal PSF

Accounting-10,00010,0000.16

Legal

General15,00015,0000.25

JV Partnership25,00025,0000.41

CON Attny37,19037,1900.61

Permits-

Building Permit (see below)-- 0- 0

Comm. Plan Review & Building Permit-25,00025,0000.41

PLAT & Other Civil Fees-26,72226,7220.44

Marketing-5,0005,0000.08

Signage-10,25010,2500.17

Travel-40,00040,0000.65

Impact Fees-

Zoning Fee- 0- 0

Parkland Impact Fee30,36030,3600.50

Arterial Street Impact Fee2,5002,5000.04

Erosion Fee1,2601,2600.02

Utility Capacity Fees

Sanitary Sewer55,00055,0000.90

Drainage Fee50,00050,0000.82

Water Tap Fee50,00050,0000.82

Water Meter Fee2,5002,5000.04

Reclamation Tap Fee- 0- 0

Service Expansion Fee- 0- 0

Electrical Setup Fee40,00040,0000.65

Misc. Development Fee- 0- 0

- 0

Other Development Soft Costs

City / Local Use Tax- 0- 0

County Use Tax- 0- 0

TOTAL DEVELOPMENT COSTS$ 425,7826.96

FINANCING COSTSPer Sq. Ft. (PSF)ABSOLUTETotalTotal PSF

Development Loan Interest-235,690235,6903.85233786.22128456

Title Recording & Insurance-3,5003,5000.06

Loan Fees-174,273174,2732.85171602.41123049

Appraisal-9,0009,0000.15

Course-of-Construction Insurance (B/Risk)-45,49245,4920.74

Other Financing Costs-- 0- 0

TOTAL FINANCING COSTS$ 467,9557.65

HARD COSTSPer Sq. Ft. (PSF)ABSOLUTETotalTotal PSF

GC - Bldg & Site Cost-185.11PSF11,317,545185.11

Special Inspection Testing-0.0025,0000.41

-0.00- 0

-0.00- 0

0.00- 0

-0.00- 0

Residential Appliances-0.50PSF30,3750.50

FF&E -6.38PSF390,0006.38

- 0

TOTAL HARD COSTS$ 11,762,920192.40

PROJECT COST SUMMARY

TotalTotal PSFTotal/Bed

LAND COST$1,950,000$31.89$21,667

TOTAL SOFT COSTS1,164,28219.0412,936

SOFT COST CONTINGENCY3%34,9280.57388

TOTAL HARD COSTS11,762,920192.40130,699

HARD COST CONTINGENCY5%588,1469.626,535

FINANCING FEES467,9557.655,199

TOTAL COSTS PRIOR TO FEES15,968,231261.18177,425

DEVELOPMENT FEE669,94110.967,444676,747AVE

HG EQUITY PLACEMENT FEE115,0001.881,278169,187135,349

TOTAL PROJECT COSTS (PRE-PARTNERSHIP EXPENSES)$16,753,172$274.02$186,146253,780203,024

PARTNERSHIP EXPENSES$50,000$0.82$556253,780203,024

TOTAL PROJECT COSTS (POST-PARTNERSHIP EXPENSES)$16,803,172$274.84$186,702

Budget for PR Mortgage (Not Including Entitlement Value)$15,903,172

Capitalized Development Fee25%0.0

$ 16,803,172

DEV CASH FLOW v2

KANSAS CITY, MO I - ONPOINTE & AVENUE DEVELOPMENT CASH FLOW

ERROR:#N/AERROR:#N/AERROR:#N/AERROR:#N/AQ0Q1Q2Q3Q4Q5Q6Q7

3/31/166/30/169/30/1612/31/163/31/176/30/179/30/1712/31/173/31/186/30/189/30/1812/31/18

201620172018

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4

LAND ACQUISITION

EARNEST MONIES, EXTENSIONS0.0$0$0$0$0$0$0$0$0$0

0.0%0.0%

LAND CLOSING$1,950,000$0$0$0$1,950,000$0$0$0$0$0

0.0%0.0%

SOFT COSTS

LAND$104,5000.00.00.0$96,383$1,015$1,015$1,015$5,073

100.0%0.0%0.0%0.0%92.2%1.0%1.0%1.0%4.9%

LEGAL & ACCOUNTING$87,1900.00.00.0$63,411$7,926$7,926$7,926

100.0%0.0%0.0%0.0%72.7%9.1%9.1%9.1%

PARTNERSHIP EXPENSES$50,0000.0$50,000

100.0%0.0%0.0%0.0%100.0%0.0%0.0%0.0%0.0%0.0%

ARCHITECTURAL & ENGINEERING$634,0000.00.00.0$227,518$238,616$167,866

100.0%0.0%0.0%0.0%35.9%37.6%26.5%

PERMITS & FEES$338,5910.00.00.0$316,887$4,341$4,341$4,341$4,341$4,341

100.0%0.0%0.0%0.0%93.6%1.3%1.3%1.3%1.3%1.3%

HARD COSTS

GC BUILDING / SITE COSTS$11,342,545$1,134,255$2,268,509$3,969,891$3,402,764$567,127

100.0%10.0%20.0%35.0%30.0%5.0%

GC GENERAL CONDITIONS / PROFIT0.00.00.00.00.00.0

100.0%10.0%20.0%35.0%30.0%5.0%

ALLOWANCES / CONDITIONS$30,375$1,519$1,519$12,150$12,150$3,038

100.0%5.0%5.0%40.0%40.0%10.0%

FIXTURES, FURNISHINGS & EQUIPMENT$390,000$390,000

WARNING100.0%100.0%

FINANCING COSTS$467,9550.00.00.0$229,5940.00.0$25,171$80,316$128,300

99.0%0.0%0.0%0.0%49.1%0.0%0.0%5.4%17.2%27.4%

CONTINGENCY

HARD / SOFT COSTS$623,0740.0$37,384$62,307$93,461$124,615$143,307$161,999

100.0%0.0%6.0%10.0%15.0%20.0%23.0%26.0%

DEVELOPMENT FEE$669,9410.0$167,485$167,485$167,485

75.0%0.0%25.0%25.0%25.0%

$16,688,171

TOTAL OUTFLOWSQUARTERLY0.00.00.0$3,138,663$1,449,979$2,544,637$4,312,593$3,647,950$1,422,2900.0

CUMMULATIVE0.00.00.0$3,138,663$4,588,642$7,133,279$11,445,872$15,093,822$16,516,112$16,516,112

CHECK WARNING

115,000

CapEx Timing0.00.00.0$909,069$1,449,979$2,544,637$4,287,423$3,567,634$1,293,9900.00.0

0.19003643250.08779175950.15406998210.26111432080.22087219430.08611531080

0.27782819210.24186174160.41518430290.48198651510.30698750510.0861153108

DEV CASH FLOW Internal

KANSAS CITY, MO I - ONPOINTE & AVENUE DEVELOPMENT CASH FLOW

ERROR:#N/AERROR:#N/AERROR:#N/AERROR:#N/AQ0Q1Q2Q3Q4Q5Q6Q7

3/31/166/30/169/30/1612/31/163/31/176/30/179/30/1712/31/173/31/186/30/189/30/1812/31/18

201620172018

Q1Q2Q3Q4JanFebMarAprilMayJuneJulyAugustSeptOctNovDecJanFebMarAprilMayJuneJulyOct

LAND ACQUISITION

EARNEST MONIES, EXTENSIONS$75,000

0.0%0.0%

LAND CLOSING$1,950,000$0$1,050,000$0$0$0

0.0%0.0%

SOFT COSTS

LAND$104,5000.00.00.0$96,383$1,015$1,015$1,015$5,073

100.0%0.0%0.0%0.0%92.2%1.0%1.0%1.0%4.9%

LEGAL & ACCOUNTING$87,1900.00.00.0$63,411$4,011$3,924$3,924$4,011$2,616$2,616$2,703

100.0%0.0%0.0%0.0%72.7%4.6%4.5%4.5%4.6%3.0%3.0%3.1%

PARTNERSHIP EXPENSES$50,0000.0$50,000

100.0%0.0%0.0%0.0%100.0%0.0%0.0%0.0%0.0%0.0%

ARCHITECTURAL & ENGINEERING$634,0000.00.00.0$412,100$82,420$44,380$12,680$12,680$6,340$6,340$6,340$6,340$6,340$6,340$6,340$6,340$6,340$12,680

100.0%0.0%0.0%0.0%65.0%13.0%7.0%2.0%2.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%2.0%

PERMITS & FEES$338,5920.00.00.0$316,888$4,341$4,341$4,341$4,341$4,341

100.0%0.0%0.0%0.0%93.6%1.3%1.3%1.3%1.3%1.3%

HARD COSTS

GC BUILDING / SITE COSTS$11,342,545$385,647$374,304$374,304$759,951$759,951$748,608$1,315,735$1,327,078$1,327,078$1,134,255$1,134,255$1,134,255$567,127

100.0%3.4%3.3%3.3%6.7%6.7%6.6%11.6%11.7%11.7%10.0%10.0%10.0%5.0%

Course of Construction Insurance$45,492$45,492

100.0%100.0%

ALLOWANCES / CONDITIONS$30,375$1,519$1,519$3,645$4,253$4,253$4,253$4,253$3,645$3,038

100.0%5.0%5.0%12.0%14.0%14.0%14.0%14.0%12.0%10.0%

FIXTURES, FURNISHINGS & EQUIPMENT$390,000$195,000$195,000

100.0%50.0%50.0%

FINANCING COSTS$422,4630.00.00.0$105,616$50,696$16,899$16,899$16,899$16,899$16,899$12,674$12,674$16,899$21,123$21,123$16,899$16,899$63,369

100.0%0.0%0.0%0.0%25.0%12.0%4.0%4.0%4.0%4.0%4.0%3.0%3.0%4.0%5.0%5.0%4.0%4.0%15.0%

CONTINGENCY

HARD / SOFT COSTS$623,0740.0$37,384$24,923$49,846$43,615$43,615$37,384$43,615$47,354$47,354$42,369$47,977$47,354$47,977$62,307

100.0%0.0%6.0%4.0%8.0%7.0%7.0%6.0%7.0%7.6%7.6%6.8%7.7%7.6%7.7%10.0%

DEVELOPMENT FEE/EQUITY FEE$784,9410.0$282,485$167,485$167,485

76.8%0.0%36.0%21.3%19.5%

$16,803,172

TOTAL OUTFLOWSMONTHLY0.00.00.00.0$2,376,884$217,006$477,708$457,739$451,421$1,032,602$1,019,584$978,722$1,393,719$1,404,538$1,403,865$1,218,288$1,209,099$1,209,115$885,421$15,735,712

CUMMULATIVE0.00.00.00.0$2,376,884$2,593,890$3,071,598$3,529,337$3,980,758$5,013,360$6,032,944$7,011,667$8,405,386$9,809,924$11,213,789$12,432,077$13,641,176$14,850,291$15,735,712

PRE-DEVELOPMENT FUNDS$600,000CHECK

PRE-DEVELOPMENT PREPAYMENT RETURNED TO AVENUE$ 100,000.00(16,842,144)

CASH REQUIRED FROM HG$1,676,883.60$217,006$477,708$457,739$346,615

CUMMULATIVE CASH FROM HG$ 500,000$2,176,883.60$2,393,889.87$2,871,597.58$3,329,336.79$3,675,952

CapEx Timing0.00.00.0$1,208,652$465,834ERROR:#REF!$1,548,530$1,202,237ERROR:#REF!0.00.0

ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!

ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!

Land Closing Costs

61,139

2100 NW Barry Road

Projected Closing Costs

ItemAmount ($000s)$/SFComments

Asset Purchase Price$1,95031.89

Upfront CapEx Capital--

Total Unlevered Closing Costs

Acquisition Fee----

Equity Sourcing Fee$0----

Joint Venture $500.82

Due Diligence/Misc----

Total Unlevered Closing Costs500.8

Land Loan Levered Closing Cost

Appraisal--

Mtg Broker Fee----0.50%

3Y Interest Rate Cap----1.50%1% Interest Rate Cap

Upfront Fee----

Lender Legal Expenses & Other----

Mtg Title Ins----

Mortgage Tax------

Total Levered Closing Costs----

Reserves

6 Months RE Taxes----

12 Months Insurance----

Interest Reserve----

Working Capital

AScanlan: AS:2 months Opex net of RE taxes and insurance----

Total Reserves----

Total JV CLOSING COSTS$50$0.82

LIBOR

0DateRate

12/31/20160.73622%

1/31/20170.76568%

2/28/20170.78908%

3/31/20170.82220%

1 Month LIBOR Forward Curve 4/30/20170.88045%

November 14, 20165/31/20170.93978%

6/30/20171.02321%

Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any 7/31/20171.10057%

irregularity or inaccuracy of BBA LIBOR8/31/20171.15631%

9/30/20171.21974%

10/31/20171.27458%

11/30/20171.32791%

12/31/20171.39387%

1/31/20181.45100%

2/28/20181.50187%

3/31/20181.54343%

4/30/20181.57646%

5/31/20181.59830%

6/30/20181.62284%

7/31/20181.64698%

8/31/20181.67310%

9/30/20181.71311%

10/31/20181.75740%

11/30/20181.81269%

12/31/20181.87151%

1/31/20191.92563%

2/28/20191.98980%

3/31/20192.04407%

4/30/20192.08644%

5/31/20192.13378%

6/30/20192.17800%

7/31/20192.21141%

8/31/20192.24306%

9/30/20192.26892%

10/31/20192.29145%

11/30/20192.31435%

12/31/20192.33234%

1/31/20202.34911%

2/29/20202.36560%

3/31/20202.37871%

4/30/20202.39208%

5/31/20202.40505%

6/30/20202.41649%

7/31/20202.42902%

8/31/20202.44119%

9/30/20202.45165%

10/31/20202.46584%

11/30/20202.47625%

12/31/20202.48678%

1/31/20212.50056%

2/28/20212.51041%

3/31/20212.52075%

4/30/20212.53311%

5/31/20212.54288%

6/30/20212.55248%

7/31/20212.56588%

8/31/20212.57618%

9/30/20212.58743%

10/31/20212.60190%

11/30/20212.61307%

12/31/20212.62539%

1/31/20222.64002%

2/28/20222.64904%

3/31/20222.65905%

4/30/20222.67068%

5/31/20222.67706%

6/30/20222.68352%

7/31/20222.69088%

8/31/20222.69516%

9/30/20222.70028%

10/31/20222.70555%

11/30/20222.70885%

12/31/20222.71391%

1/31/20232.71971%

2/28/20232.72440%

3/31/20232.73090%

4/30/20232.74016%

5/31/20232.74804%

6/30/20232.75921%

7/31/20232.77202%

8/31/20232.78344%

9/30/20232.79987%

10/31/20232.81569%

11/30/20232.83023%

12/31/20232.84714%

1/31/20242.86104%

2/29/20242.87199%

3/31/20242.87986%

4/30/20242.88450%

5/31/20242.88482%

6/30/20242.88166%

7/31/20242.87587%

8/31/20242.86469%

9/30/20242.85211%

10/31/20242.83890%

11/30/20242.81975%

12/31/20242.80317%

1/31/20252.78835%

2/28/20252.77173%

3/31/20252.76059%

4/30/20252.75402%

5/31/20252.74790%

6/30/20252.74736%

7/31/20252.75077%

8/31/20252.75800%

9/30/20252.76801%

10/31/20252.78148%

11/30/20252.79830%

12/31/20252.81449%

1/31/20262.