Hassan

1. Sir Thomas Circle
Apartments
Sea Shore, NJ
www.northeastdevelopment

2. Real Estate at the Jersey Shore!

3. Investment Overview
Real Estate at the Jersey Shore!
• Sir Thomas Circle Apartments is a 96 unit
multifamily community located in Sea
Shore, New Jersey which is in Cape May
County.
• The property consists entirely of two-
bedroom/two-bathroom units with
approximately 925 rentable square feet
• Property amenities include an on-site
laundry facility, patio/balcony, covered
parking and a pool
• The property received new roofs in 2007
and 75 of the air-conditioning units have
recently been replaced
• There are three unit types which include
basic, partial upgrade and a full upgrade

4. Investment Highlights
Real Estate at the Jersey Shore!
• Fully Stabilized
• Recently Upgraded
• Recession-Resistant County
• Surrounded by Large Employment Centers
• Close Proximity to New Jersey’s Best
Beaches
• Proven Developer Sponsor

5. Transaction Summary
Real Estate at the Jersey Shore!
Summary Terms
Price 4,100,000
Down Payment (25%) 1,025,000
Price / Unit 42,708
Price / SF 46
Number of Units 96
Rentable Square Feet 88,800
Number of Buildings 7
Year Built 1983
Lot Size 4.7 acres
Financial Data
CAP Rate - Current 8.01%
GRM - Current 6.40
Net Operating Income - Current 419,244
New Cash Flow After Debt Service - Current 132,894
Total Return - Current 227,894
CAP Rate - Pro Forma 10.14%
GRM - Pro Forma 4.47
Net Operating Income - Pro Forma 436,291
Net Cash Flow After Debt Service - Pro Forma 100,324
Total Return - Pro Forma 245,003

6. Property Summary
Real Estate at the Jersey Shore!

7. Occupancy
Real Estate at the Jersey Shore!

8. Rents
Real Estate at the Jersey Shore!

9. Property Location
Real Estate at the Jersey Shore!
Sir Thomas Circle Apartments

10. Property Location (cont’d)
Real Estate at the Jersey Shore!
Sir Thomas Circle Apartments

11. Financial Model
Real Estate at the Jersey Shore!
Revenue
Gross Rent $835,800 $835,800 $860,874 $886,700 $913,301 $940,700
Gross Rent per unit $8,706 $8,706 $8,967 $9,236 $9,514 $9,799
Monthly rent per unit $726 $726 $747 $770 $793 $817
Monthly rent per sf $0.78 $0.78 $0.81 $0.83 $0.86 $0.88
Loss to Lease ($16,716) ($25,074) ($25,826) ($17,734) ($18,266) ($18,814)
Vacancy Loss ($58,506) ($56,751) ($58,453) ($60,828) ($62,652) ($64,532)
Concession Loss ($25,074) ($22,619) ($23,298) ($24,244) ($24,971) ($25,721)
Other Losses ($8,358) ($8,358) ($8,609) ($8,867.00) ($9,133) ($9,407)
Other Income $70,000 $70,000 $72,100 $74,263 $76,491 $78,786
Total Revenue $0 $797,146 $792,998 $816,788 $849,290 $874,769 $901,012
Expenses
Administrative ($43,132) ($43,132) ($44,426) ($45,759) ($47,132) ($48,545)
Advertising ($20,000) ($20,000) ($20,600) ($21,218) ($21,855) ($22,510)
Mgmt Fee (4%) ($31,886) ($31,720) ($32,672) ($33,972) ($34,991) ($36,040)
Contract Services ($20,000) ($20,000) ($20,600) ($21,218) ($21,855) ($22,510)
Repairs/Maintenance ($20,000) ($20,000) ($20,600) ($21,218) ($21,855) ($22,510)
Make Ready/Turnover ($15,000) ($15,000) ($15,450) ($15,914) ($16,391) ($16,883)
Payroll ($90,000) ($90,000) ($92,700) ($95,481) ($98,345) ($101,296)
Utilities ($50,000) ($50,000) ($51,500) ($53,045) ($54,636) ($56,275)
Property Taxes ($25,000) ($25,000) ($25,750) ($26,523) ($27,318) ($28,138)
Insurance ($47,252) ($47,252) ($48,670) ($50,130) ($51,634) ($53,183)
Reserves ($300 / Unit) ($24,000) ($24,000) ($24,000) ($24,720) ($25,462) ($26,225) ($27,012)
Total Expenses ($24,000) ($386,270) ($386,104) ($397,687) ($409,938) ($422,236) ($434,903)
Expense Ratio #DIV/0! 48.5% 48.7% 48.7% 48.3% 48.3% 48.3%
NOI ($24,000) $410,876 $406,894 $419,101 $439,353 $452,533 $466,109
Unleveraged Yield (0.4%) 7.4% 7.4% 7.6% 8.0% 8.2% 8.4%
Debt Service ($219,060) ($282,231) ($282,231) ($282,231) ($282,231)
Property Cash Flow $187,834 $136,870 $157,122 $170,303 $183,879
Cash-on-Cash Yield 16.5% 12.0% 13.8% 15.0% 16.1%
LP IRR 13%
LP Equity Multiple 1.6x

12. Offer
Real Estate at the Jersey Shore!
• Participating Series A Preferred
– Cash/PIK Preferred Return: 8.0%
– Equity Participation: 65%
• Developer Co-Investment: 25%
• Management Fee: 0.5%

13. Management
Real Estate at the Jersey Shore!
Michael Phillips, CEO
• Born in Florida, 3-time
entrepreneur, 10 years of real
estate experience
• Partner at Boos Development
Group. Also worked in
investment banking with JP
Morgan (Associate), and real
estate private equity with
Lubert Adler (VP)
• Mike graduated from
Georgetown and completed his
MBA at Wharton
Northeast Development Corp.