1. 1177 Sixth Avenue, 5th Floor, New York, NY 10036 | T 212.776.4058 | F 212.881.9650 | www.anikaequities.com
Equity-To-Ground Sale For New Developments
SAMPLE EQUITY-TO-GROUND SALE/LEASEHOLD
DEBT STRUCTURE FOR NEW DEVELOPMENTS

2. 1177 Sixth Avenue, 5th Floor, New York, NY 10036 | T 212.776.4058 | F 212.881.9650 | www.anikaequities.com
Equity-To-Ground Sale For New Developments
STRUCTURE AND TERMS
A SAMPLE DEVELOPMENT
GENERAL BENEFITS
PROPERTY TYPES AND MARKETS

3. 1177 Sixth Avenue, 5th Floor, New York, NY 10036 | T 212.776.4058 | F 212.881.9650 | www.anikaequities.com
Equity-To-Ground Sale For New Developments
RETURNS AT PROPERTY STABILIZATION
PROPERTY ASSUMPTIONS
Cap Rate 6.75%
Value 80,764,444$
Purchase Cost 72,000,000$
Total Cost Basis 73,885,351$
Total Equity 4,173,964$
FINANCING ASSUMPTIONS
Initial Loan Amount 56,535,111$
Loan to Value 70.0%
Total Interest Rate 4.90%
Amortization 30 years
Payment 3,600,563$
Loan Constant 6.37%
I/O Period 2 years
GROUND LEASE ASSUMPTIONS
Land Value Allocation 40%
Land Value 48,000,000$
Annual Ground Rent 2,280,000$
(% of Est. Land Value) 4.75%
Annual Rent Increases 3.00%
EXIT VALUE 7.25% 84,632,053$
Year 2 Year 3 Year 4 Year 5 Year 6
Net Operating Income - Leasehold 7,800,000$ 8,034,000$ 8,275,020$ 8,523,271$ 8,778,969$
Annual Groundlease Rent (Pre-Paid Year 1) 2,348,400 2,418,852 2,491,418 2,566,160 2,643,145
NET OPERATING INCOME - LEASEHOLD 5,451,600$ 5,615,148$ 5,783,602$ 5,957,111$ 6,135,824$
Ground Lease Coverage Ratio 3.32x 3.32x 3.32x 3.32x 3.32x
Yield on Cost 7.6% 7.8% 8.0% 8.3% 8.5%
Yield on All-In Cost Basis 7.4% 7.6% 7.8% 8.1% 8.3%
UNLEVERAGED NET CASH FLOW - LEASEHOLD 5,451,600$ 5,615,148$ 5,783,602$ 5,957,111$ 6,135,824$
Outstanding Principal Balance 56,535,111 56,535,111 55,725,313 54,874,354 53,987,668
Interest Payments (2,808,696) (2,790,765) (2,749,605) (2,713,877)
Principal Payments 0 (809,798) (850,958) (886,686)
Total Senior Debt (2,808,696) (3,600,563) (3,600,563) (3,600,563)
DSCR Senior Debt 1.94x 1.56x 1.61x 1.65x
LEVERAGED NET CASH FLOW (4,173,964)$ 2,642,904$ 2,014,585$ 2,183,039$ 2,356,547$
Annual Cash on Cash Return 63.3% 48.3% 52.3% 56.5%
Average Annual Cash on Cash Return 63.3% 55.8% 54.6% 55.1%
Exit Value 84,632,053$

4. 1177 Sixth Avenue, 5th Floor, New York, NY 10036 | T 212.776.4058 | F 212.881.9650 | www.anikaequities.com
Equity-To-Ground Sale For New Developments
David Eyzenberg Partner
TEL 212 776-4058 x104 | MOBILE 917 701-2814
FAX 212 881-9650 | david.eyzenberg@anikaequities.com
Yolanda Li Acquisition Associate
TEL 212 776-4058 x102 | MOBILE 917 913-9596
FAX 212 881-9650 | yli@anikaequities.com
EQUITY-TO-GROUND SALE
LEASEHOLD DEBT STRUCTURE
Da
TEL 212 776-4058 x10 | MOBILE 917 -
FAX 212 881-9650 | d @anikaequities.com
TEL 212 776-4058 x10 | MOBILE -
FAX 212 881-9650 | @anikaequities.com
Acquisition Associate