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Name of Session | SpeakersElevating Elite EducationEnter Check In Code by 10:10 a.m.
Check In Code: C3A8
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Elevating Elite EducationPresented by: CCIM Indiana Chapter
May 3, 201810 11:45 AM
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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
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Todays Topics Why CCIM? Investment Terminology Market Analysis
Q & A Investment Analysis Investment Decisions
Q & A
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WHY CCIM? WHATS IN IT FOR ME?
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INVESTMENT TERMINOLOGY
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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.
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Investment Terminology The Basics NOI Net Operating Income
TVM Time Value of Money
IRR Internal Rate of Return
NPV Net Present Value
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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
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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
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MARKET ANALYSISHEALTHCARESENIOR LIVING
Case Studies
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Healthcare Providers Require Strong Real Estate Analytics
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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
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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.
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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).
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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.
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SITE ASSESSMENT SERVICE AREA BY ZIP CODE & MARKET SHARE
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SITE ASSESSMENT SERVICE AREA BY ZIP CODE & MARKET SHARE
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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
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Market Analysis- Retail Demographics
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Market Analysis- Retail Market Profile
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Market Analysis- Retail Market Profile
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Market Analysis- Pet Supply Demand
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Senior Living Market Analysis
Map Competition Demographics
Drive Time Custom Variables
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Custom Variables
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Site Analysis
Site Target
Competition
Heat Map Why is the Site Not in the Heat Map??
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Final Site Selection
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Senior Living Row
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Market Analysis During Development Find Unmet Need Zoning/Entitlements Lending Investors Client & Partner Success
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Q & AMARKET ANALYSIS
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INVESTMENT ANALYSISCase Studies
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Return Metrics (Cap Rate Comparison)
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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
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Hospital Need
DEVELOPMENT CYCLE
Compare to Market RentDevelopment Budget
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INVESTMENT DECISIONSLEASE VS OWN- INDUSTRIALON-CAMPUS MOBDEBT & EQUITY
Case Studies
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LEASE VS. PURCHASE (INDUSTRIAL)The Age Old Question.
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LEAS
E
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LEAS
E
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PURC
HASE
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PURC
HASE
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PURCHASEL
EASE VS.
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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
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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
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Existing Hospital / Physician Joint Ventures
1
2 3
4
Hospital / Physician JV
Hospital / Physician JV
MBRE Owned
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Land Tract, 22 Acres
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Consolidation of Cancer Services to New Medical Office BuildingAnd Back-Fill Strategy
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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
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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.