This document provides a detailed overview of the financial analysis and underwriting process for a typical real estate development project, and highlights important features such as Performance Metrics, Capitalization, Sources & Uses, Development Budget, Annual & Quarterly Cash Flows / Proforma, Monte Carlo Simulation, Waterfall Structure, and more.
This document provides an overview on real estate development and financial feasibility.
Topics Covered:
Development - Process, Ecosystem, Model, Flowchart, Risk vs Value, Development Risk, Development Cycle, Key Categories of Tasks
Economic Feasibility - Financial, Development Budget, Static Analysis, Loan-to-Cost, Debt Cover & Default Ratio Approaches, Detailed Proforma & Analysis
This real estate financial consulting book lists / exhibits some of the advisory work we typically do.
• Evaluation of Lease, Sublease, Purchase, or Sale-Leaseback
• Occupancy Cost Analysis
• Lease Comparison Analysis
• Space Consolidation Scenarios
• Cash and GAAP Perspectives
• Impact of Purchase or Lease Transactions on Financial Statements
• Comparison of Portfolio Value vs. Outstanding Obligation
• Portfolio Analysis vs. Business Strategy
• Own vs. Lease Decision
• Operating vs. Capital Lease
• Evaluation and Assessment of Investment Opportunities
• Valuation of Individual Assets or Real Estate Portfolios
• Development Analysis and Project Financial Feasibility
• Optimal Holding Period Analysis
• Benchmarking Based on Key Measurement Metrics
• Detailed Sensitivity or What If Analysis
• Review and Preparation of Lease Abstracts
• Preparation of Detailed Cash Flows
• Market Research
Real Estate Development Case PresentationDaniel Mandel
In one week, my group (Nurulauni Saniman, Maike Zhang, Yuhua Zhou) and I analyzed a development case with an existing office building and adjacent vacant land for development. Group created a 20-minute investor presentation analyzing the macro economy, purchase price of entire site and adjacent vacant land, and optimization of the capital structure to reduce the weighted average cost of capital for the project.
Real Estate Acquisition Case PresentationDaniel Mandel
In one week, my group (Nurulauni Saniman, Maike Zhang, Yuhua Zhou) and I analyzed an acquisition case and created a 15-minute investor presentation with a complicated Excel distribution waterfall. Presentation highlighted an analysis of linkages, market, sources and uses, financial returns, sensitivity analysis, and risk mitigation.
This document provides an overview on real estate development and financial feasibility.
Topics Covered:
Development - Process, Ecosystem, Model, Flowchart, Risk vs Value, Development Risk, Development Cycle, Key Categories of Tasks
Economic Feasibility - Financial, Development Budget, Static Analysis, Loan-to-Cost, Debt Cover & Default Ratio Approaches, Detailed Proforma & Analysis
This real estate financial consulting book lists / exhibits some of the advisory work we typically do.
• Evaluation of Lease, Sublease, Purchase, or Sale-Leaseback
• Occupancy Cost Analysis
• Lease Comparison Analysis
• Space Consolidation Scenarios
• Cash and GAAP Perspectives
• Impact of Purchase or Lease Transactions on Financial Statements
• Comparison of Portfolio Value vs. Outstanding Obligation
• Portfolio Analysis vs. Business Strategy
• Own vs. Lease Decision
• Operating vs. Capital Lease
• Evaluation and Assessment of Investment Opportunities
• Valuation of Individual Assets or Real Estate Portfolios
• Development Analysis and Project Financial Feasibility
• Optimal Holding Period Analysis
• Benchmarking Based on Key Measurement Metrics
• Detailed Sensitivity or What If Analysis
• Review and Preparation of Lease Abstracts
• Preparation of Detailed Cash Flows
• Market Research
Real Estate Development Case PresentationDaniel Mandel
In one week, my group (Nurulauni Saniman, Maike Zhang, Yuhua Zhou) and I analyzed a development case with an existing office building and adjacent vacant land for development. Group created a 20-minute investor presentation analyzing the macro economy, purchase price of entire site and adjacent vacant land, and optimization of the capital structure to reduce the weighted average cost of capital for the project.
Real Estate Acquisition Case PresentationDaniel Mandel
In one week, my group (Nurulauni Saniman, Maike Zhang, Yuhua Zhou) and I analyzed an acquisition case and created a 15-minute investor presentation with a complicated Excel distribution waterfall. Presentation highlighted an analysis of linkages, market, sources and uses, financial returns, sensitivity analysis, and risk mitigation.
What You Really Need to Know about Commercial Real Estate UnderwritingColleen Beck-Domanico
Prudent real estate underwriting uses quantitative analysis. However, real estate math isn't just a black‐and‐white exercise, nor is it simple formula lending. Many qualitative judgments feed into your estimates of property cash flow, coverage, and value that come from quantitative analysis. Your analysis should be completed in the context of the qualitative credit risk assessment. Doing so will avoid over‐advancing on potentially weak property cash flow streams that will jeopardize repayment prospects and bank portfolio quality. This presentation looks at quantitative analysis and integrating qualitative factors; underwriting guidelines; regulatory guidance; and value and cash flow analyses.
As the markets for real estate usually remain stable in many areas of in the world, opportunities continue to exist for the development of real estate projects. This lecture is designed to analyze the real estate development process primarily from the perspective of the developer. The lecture concentrates on the development of a real estate project from its conceptual ideas until the operational start-up, and from the initiation of the concept designs until the project is defined.
The lecture examines most of the phases of the development process, from idea inception through studying the various available options for the use of the lands and estimating the projects' costs and income to determine the best and optimum commercial use of the lands. This includes an overview about the development of the project's financial feasibility of real estate development, which involves the identification and evaluation of critical assumptions related to the creation, construction, and operation of economically viable commercial real estate projects.
The lecture is introductory in scope and assumes attendants have little or no experience with the development process.
An understanding of the real estate development process benefits not only potential developers, but investors, lenders, builders, public sector participants, and end-users of the products as well.
Before you start writing your real estate business plan, spend as much time as you can to reading through some samples of real estate business plans. Not only will that give you a good idea of what it is you’re aiming for, but it will also show you the different sections that different entrepreneurs include and the language they use to write about themselves and their future plans.
We have created a sample real estate business plan example for you to get a good idea about how a perfect real estate business plan should look like and what details you should include in your business plan.
Source: https://upmetrics.co/template/real-estate-business-plan-example
The company DAO Family on the crowdfunding platform Rontgen seeks to raise €2M. The funds will be used to refinance the bank loan and to create additional working capital for the apartments to be fully finished. Investors will get a 7% annual return. These slides are a detailed presentation of the investment opportunity.
Real Estate PowerPoint Templates Bundle PowerPoint Presentation Slides SlideTeam
Are you a property agent? Do not have a plan from where to begin? Here SlideTeam has come up with content ready real estate PowerPoint templates bundle presentation slides that will provide necessary information to land developers. Our predesigned property development PowerPoint templates are fully editable and can be customized according to your needs. This professionally created land expansion PPT presentation comprises variety of slides like market snapshot, executive summary, major investments, average price, property demands & opportunities, market summary, market analysis infographic, sales growth, home sales, price index, land mortgage rates, REO & short sales, investments, leaseholder, land tenure etc. You can use this property market analysis PowerPoint presentation for topics like real property, residential premises, residential trends, land development, premises investing, real estate economics, land appraisal, estate industry overview etc. Clinch your business deal with our real estate PowerPoint templates bundle presentation templates. Hurry up! Download now. Hearts burst with joy due to our Real Estate PowerPoint Templates Bundle PowerPoint Presentation Slides. Folks experience immense bliss.
Land development refers to altering the landscape in any number of ways like changing landforms from a natural or semi-natural state for a purpose such as housing or subdividingreal estate into lots, typically for the purpose of building homes.
Alternaty - Alternative Real Estate - Capability statement Alternaty
Alternaty is a boutique real estate firm providing a suite of consulting services throughout the development lifecycle. Headquarter in HCMC Vietnam, with associates in Thailand, Myanmar and Indonesia.
We specialise in the early stages of planning and development when accurate and detailed advisory adds significant value for the whole development and maximises the returns for developers, investors or any players involved throughout the development process.
See you at http://blog.alternaty.com/
OECD presentation on Land Value Capture Research, made at the Land Value Capture Research Symposium, at the Lincoln Institute of Land Policy, 15-17 August 2017, by Abel Schumann, Regional Development Policy Division, OECD.
More information at http://www.oecd.org/cfe/regional-policy/
"Cassady Corner" Development Plan for the City of Bexley, OhioScott Ulrich
This presentation was prepared for a real estate studio class at The Ohio State University. The class matched City & Regional Planning students with MBA students to prepare a development and financing plan for the redevelopment of an aging commercial strip corridor in Bexley, Ohio.
A Stream of Construction Management which covers Time Value of Money and Equivalence of Alternatives by Various Methods also includes basic idea of Benefit to Cost Ratio.
What You Really Need to Know about Commercial Real Estate UnderwritingColleen Beck-Domanico
Prudent real estate underwriting uses quantitative analysis. However, real estate math isn't just a black‐and‐white exercise, nor is it simple formula lending. Many qualitative judgments feed into your estimates of property cash flow, coverage, and value that come from quantitative analysis. Your analysis should be completed in the context of the qualitative credit risk assessment. Doing so will avoid over‐advancing on potentially weak property cash flow streams that will jeopardize repayment prospects and bank portfolio quality. This presentation looks at quantitative analysis and integrating qualitative factors; underwriting guidelines; regulatory guidance; and value and cash flow analyses.
As the markets for real estate usually remain stable in many areas of in the world, opportunities continue to exist for the development of real estate projects. This lecture is designed to analyze the real estate development process primarily from the perspective of the developer. The lecture concentrates on the development of a real estate project from its conceptual ideas until the operational start-up, and from the initiation of the concept designs until the project is defined.
The lecture examines most of the phases of the development process, from idea inception through studying the various available options for the use of the lands and estimating the projects' costs and income to determine the best and optimum commercial use of the lands. This includes an overview about the development of the project's financial feasibility of real estate development, which involves the identification and evaluation of critical assumptions related to the creation, construction, and operation of economically viable commercial real estate projects.
The lecture is introductory in scope and assumes attendants have little or no experience with the development process.
An understanding of the real estate development process benefits not only potential developers, but investors, lenders, builders, public sector participants, and end-users of the products as well.
Before you start writing your real estate business plan, spend as much time as you can to reading through some samples of real estate business plans. Not only will that give you a good idea of what it is you’re aiming for, but it will also show you the different sections that different entrepreneurs include and the language they use to write about themselves and their future plans.
We have created a sample real estate business plan example for you to get a good idea about how a perfect real estate business plan should look like and what details you should include in your business plan.
Source: https://upmetrics.co/template/real-estate-business-plan-example
The company DAO Family on the crowdfunding platform Rontgen seeks to raise €2M. The funds will be used to refinance the bank loan and to create additional working capital for the apartments to be fully finished. Investors will get a 7% annual return. These slides are a detailed presentation of the investment opportunity.
Real Estate PowerPoint Templates Bundle PowerPoint Presentation Slides SlideTeam
Are you a property agent? Do not have a plan from where to begin? Here SlideTeam has come up with content ready real estate PowerPoint templates bundle presentation slides that will provide necessary information to land developers. Our predesigned property development PowerPoint templates are fully editable and can be customized according to your needs. This professionally created land expansion PPT presentation comprises variety of slides like market snapshot, executive summary, major investments, average price, property demands & opportunities, market summary, market analysis infographic, sales growth, home sales, price index, land mortgage rates, REO & short sales, investments, leaseholder, land tenure etc. You can use this property market analysis PowerPoint presentation for topics like real property, residential premises, residential trends, land development, premises investing, real estate economics, land appraisal, estate industry overview etc. Clinch your business deal with our real estate PowerPoint templates bundle presentation templates. Hurry up! Download now. Hearts burst with joy due to our Real Estate PowerPoint Templates Bundle PowerPoint Presentation Slides. Folks experience immense bliss.
Land development refers to altering the landscape in any number of ways like changing landforms from a natural or semi-natural state for a purpose such as housing or subdividingreal estate into lots, typically for the purpose of building homes.
Alternaty - Alternative Real Estate - Capability statement Alternaty
Alternaty is a boutique real estate firm providing a suite of consulting services throughout the development lifecycle. Headquarter in HCMC Vietnam, with associates in Thailand, Myanmar and Indonesia.
We specialise in the early stages of planning and development when accurate and detailed advisory adds significant value for the whole development and maximises the returns for developers, investors or any players involved throughout the development process.
See you at http://blog.alternaty.com/
OECD presentation on Land Value Capture Research, made at the Land Value Capture Research Symposium, at the Lincoln Institute of Land Policy, 15-17 August 2017, by Abel Schumann, Regional Development Policy Division, OECD.
More information at http://www.oecd.org/cfe/regional-policy/
"Cassady Corner" Development Plan for the City of Bexley, OhioScott Ulrich
This presentation was prepared for a real estate studio class at The Ohio State University. The class matched City & Regional Planning students with MBA students to prepare a development and financing plan for the redevelopment of an aging commercial strip corridor in Bexley, Ohio.
A Stream of Construction Management which covers Time Value of Money and Equivalence of Alternatives by Various Methods also includes basic idea of Benefit to Cost Ratio.
Property Development Finance Guide-20 Steps to Success-Blueray Capital.pdfBlueray Capital
20 key steps, important terminology and metrics to secure development finance for your UK property development project. A useful development finance guide by Blueray Capital.
Capital budgeting decisions are much vital than the decisions on management of working capital as these decisions requires careful analysis of the expected costs and benefits to be derived from each capital expenditure on acquisition of land, building, equipments and for permanent additions to working capital associated with the plant expansion.
The level of investments that maximizes the present value of the firm is simultaneously determined by the interaction of supply and demand forces under conditions of uncertainty
Sheet1Total initial investment$100millionPeriod10yearsProject plan 1leasing of trucks (Estimations)Leasing costs$750,000expected returns$100,000Period9yearsPayback period = cost of the project/annual cash flowspayback period = 7.5yearsThe project would be worth undertaking since the payback period is 7.5 years while the project will take 9 years.NPVAssuming required rate of return = 10%Cash flows$100,000Initial investment$750,000NPV = ($174,097.62)The NPV of leasing truck project is negative thsu according to this techniques, it is not profitable to undertake such a project.Project plan 2Introduction of new trailer partsAssuming required rate of return = 10%Expected annual cash flows$850,000Initial costs$4,600,000NPV$622,882.04The project is worth undertakingPayback periodExpected annual cash flows$850,000Initial costs$4,600,000Period10yearsPayback period = 5.4117647059The project should be undertaken.Project plan 3Starting a new outletAssuming required rate of return = 10%Expected annual cash flows$7,780,000Initial costs$38,600,000NPV$9,204,732.08The project is worth undertakingPayback periodExpected annual cash flows$7,780,000Initial costs$38,600,000Period10yearsPayback period = 4.9614395887The project should be undertaken.
Sheet2
Sheet3
Capital planning cycle
Eugene Douglass
Tiffany Simons
Angeline Petion
AIU Online
1
Introduction
A capital plan analyze all the expected projects to be carried out by the UPC Company for a period of 10 years given the amount of $100 million is to be used for the projects.
A workable plan should be developed in order to ensure the set budget is met and proper use of the funds.
Any additional funds needed would be obtained from the sale of fleet of trucks.
2
Capacity condition and need assessment
For proper implementation of the capital plan, the company management team should have a well drawn plan for each project extent and the conditions necessary for the project to be successful.
Different projects require differing needs and thus the company should have a well established requirements for each project to be undertaken.
This stage takes care of the various projects requirement in advance before the start of the capital plan.
3
…
Having clear knowledge of the needs of each specific project makes easy for the projects to deliver as expected.
It make available all the skilled man power for the expected projects and the resources.
Project proposal discussions and management
Capital plan project proposal entails giving the summary of the proposed projects to be carried out.
UPC Company intends to maintain competitive in the market.
The objectives of undertaking the projects would be to improve the company products and services provided.
…
Management is obligated to undertake project monitoring during the 10 year capital plan.
The company capital structure is 30% debt and 70% equity, hence for future funding, the company may decide to issue its shares to the public or borrow.
Capital .
Em inglês, essas diretrizes chamadas de Princípios do Equador", foram criadas por instituições financeiras de vários países do mundo, com o objetivo de criar condições para a concessão de crédito. Essas condições forçam que o projeto seja ambiental e socialmente sustentável.
Once, project idealisation takes shape, an elaborate feasibility study of the project becomes essential. Basis of this study, a project owner determines whether the idea is feasible and then plans to attract investment and formulate an investment proposal. To establish that the project is worthy of investment, preparation of a Detailed Project Report or DPR becomes necessary.
1RUNNING HEAD Genesis Energy Capital Plan Report2Genesi.docxeugeniadean34240
1
RUNNING HEAD: Genesis Energy Capital Plan Report
2
Genesis Energy Capital Plan Report
Genesis Energy Capital Plan Report
Module 5 Assignment 2
Argosy University Online
Katrina Caver
The decision on capital outlays is among the most significant a firm has to make. A decision to build a new plant or expand into a foreign market may influence the performance of the firm over the next ten years. The capital budgeting decision includes the planning of expenditures for a project with a life of at least one year and usually considerably longer. Capital budgeting assists with the decision making of how a firm should invest its capital.
Different capital budgeting alternatives that are used includes the payback period, which calculates the amount of time it will take before the cumulative net cash flows are equal to the initial cost of the investment (Argosy Online University, 2012); accounting rate of return (return on investment, An indicator of profitability that is measured by dividing the accounting net income by the amount invested (AccountingCoach, 2004-2015)); discounted payback period(examines the time that is required to cover the investment of the project considering the present value of all the cash inflows); net present value(measures the present value of all the cash inflow from the project and compare the same with the initial investment); profitability index(measures the present value of cash inflows at the required rate of cash inflows at the rate of return that is required to for the initial cash outflow for the investment. However, if the present value of cash inflows is positive, then the project is accepted; if the project is negative, then the project is not accepted.
Upon evaluating the capital budget, the outcomes include cost of debt at eight percent, cost of equity at ten percent, short-term interest rate at eight percent, long-term interest rate at nine percent, and long-term equity interest rate at ten percent. Operating projections for a project is utilized to establish a forecast for cash flows that would underpin calculations of net present value, internal rates of return, payback period, and other investment metrics. The purpose of forecasting cash flows is to capture the incremental effect of a proposed project. Each project’s cash flow forecasts does not include depreciation expenses and cost that would be incurred regardless of whether a given project was undertaken or not. High, medium, and low risks categories for each division were associated with a corresponding discount rate set by the capital budgeting committee in consultation with the corporate treasurer.
The weighted average cost of capital is another method to evaluate proposed projects and capital budgeting. By computing a weighted average, the company can decide the interest for every dollar that is invested. Cost of capital assist with the determination of the minimum rate of return a company is expected to make from the project. Wei.
Sample Project Proforma. The property is a City of Commerce, CA industrial property currently active for sale as of 07/13.
The property meets our buying criteria guidelines.
Current property key characteristics:
90,000 sq ft
50% coverage
16' ceiling clearance
20+ dock high loading
Urban infill location
Market rent analysis compliant
340
Capital
Budgeting
Techniques:
Certainty and Risk
Chapter Across the Disciplines
Why This Chapter Matters To You
Accounting: You need to understand cap-
ital budgeting techniques in order to
develop good estimates of the relevant
cash flows associated with a proposed
capital expenditure and to appreciate how
risk may affect the variability of cash
flows.
Information systems: You need to under-
stand capital budgeting techniques,
including how risk is measured in those
techniques, in order to design decision
modules that help reduce the amount of
work required in analyzing proposed capi-
tal projects.
Management: You need to understand
capital budgeting techniques in order to
understand the decision criteria used to
accept or reject proposed projects; how to
apply capital budgeting techniques when
capital must be rationed; and behavioral
and risk-adjustment approaches for deal-
ing with risk, including international risk.
Marketing: You need to understand capi-
tal budgeting techniques in order to
understand how proposals for new prod-
ucts and expansion of existing product
lines will be evaluated by the firm’s deci-
sion makers and how risk of proposed pro-
jects is treated in capital budgeting.
Operations: You need to understand capi-
tal budgeting techniques in order to
understand how proposals for the acquisi-
tion of new equipment and plants will be
evaluated by the firm’s decision makers,
especially when capital must be rationed.
9
LEARNING GOALS
Calculate, interpret, and evaluate the
payback period.
Apply net present value (NPV) and
internal rate of return (IRR) to relevant
cash flows to choose acceptable
capital expenditures.
Use net present value profiles to
compare the NPV and IRR techniques
in light of conflicting rankings.
Discuss two additional considerations
in capital budgeting—recognizing
real options and choosing projects
under capital rationing.
Recognize sensitivity analysis and
scenario analysis, decision trees, and
simulation as behavioral approaches
for dealing with project risk, and the
unique risks that multinational
companies face.
Understand the calculation and
practical aspects of risk-adjusted
discount rates (RADRs).
LG6
LG5
LG4
LG3
LG2
LG1
CHAPTER 9 Capital Budgeting Techniques: Certainty and Risk 341
Capital Budgeting Techniques
When firms have developed relevant cash flows, as demonstrated in Chapter 8,
they analyze them to assess whether a project is acceptable or to rank projects. A
number of techniques are available for performing such analyses. The preferred
approaches integrate time value procedures, risk and return considerations, and
valuation concepts to select capital expenditures that are consistent with the
firm’s goal of maximizing owners’ wealth. This section and the following one
focus on the use of these techniques in an environment of certainty. Later in the
chapter, we will look at capital budgeting under uncertain circumstances.
We will use one basic problem to .
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500 acres of brilliance await you here at Riverview City which offers modern living, effortless convenience, and a beautiful natural setting. It is a mega township by Magarpatta City in Loni Kalbhor, Pune. Enjoy easy access to work, schools, and fun while experiencing a perfect work-life balance.
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Urbanrise Paradise on Earth - Unveiling Unprecedented Luxury in Exquisite Vil...JagadishKR1
Immerse yourself in the epitome of luxury living at Urbanrise Paradise on Earth. These opulent 4 BHK villas, nestled off the prestigious Kanakapura Road in Bangalore, redefine elegance and sophistication. With meticulous craftsmanship, breathtaking design, and unparalleled amenities, Urbanrise Paradise on Earth offers a sanctuary where every moment is infused with luxury and serenity. Experience a life of grandeur and indulgence at this exclusive residential enclave.
Sense Levent Kagithane Catalog - Listing TurkeyListing Turkey
Sense Levent offers a luxurious living experience in the heart of Istanbul’s vibrant Levent district.
This cutting-edge development seamlessly integrates modern design with natural elements, featuring live evergreen plants maintained by an advanced irrigation system, ensuring lush greenery year-round.
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Lixin Azarmehr, a Los Angeles-based real estate development trailblazer, co-founded JL Real Estate Development (JL RED) in 2015 and serves as its CEO. Her expertise has propelled the firm to specialize in luxury residential and mixed-use commercial projects, with a portfolio that features upscale retail spaces and sophisticated care facilities.
Brigade Insignia offers meticulously designed apartments with modern architecture and premium finishes. The project features spacious 3,3.5,4 and 5 BHK units, each thoughtfully planned to provide maximum comfort, natural light, and ventilation.
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One FNG by Group 108 Sector 142 Noida Construction UpdateOne FNG
One FNG by Group 108 is launching a new commercial project in Sector 142 Noida. Office space and high street retail shops on the FNG and Noida Expressway. For more information visit the website https://www.onefng.com/
Need MCA leads? No sweat! MCAs are great for small biz funding. Learn how to snag top-notch leads: businesses needing cash, with repayment ability, decision-makers, and accurate contacts. Use content, social ads, lead platforms, partnerships, and capture processes for quality leads.
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Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szet...Volition Properties
=== Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szeto) ===
Ever been curious about Real Estate Investing in the US?? At Volition, for the past 14 years, we have been focused on helping investors invest in over $250M of real estate and generate $100M of wealth in the Toronto market, but we are always open to learning more about other business models and learning from other investors.
The US has always been an intriguing market to invest in. But the US is a big place… if you’re interested in investing in the US, you probably have a lot of questions, like:
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Website: https://www.infinitywealth.ca/
Facebook: https://www.facebook.com/iwinrealestate and https://www.facebook.com/ErwinSzetoOfficial
Podcast: https://www.truthaboutrealestateinvesting.ca/
Instagram: https://www.instagram.com/iwinrealestate/ and https://www.instagram.com/erwinszeto/
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Elegant Evergreen Homes - Luxury Apartments Redefining Comfort in Yelahanka, ...JagadishKR1
Experience unmatched luxury at Elegant Evergreen Homes, offering exquisite 2, 3, and 4 BHK apartments in the serene locality of Yelahanka, Bangalore. These meticulously crafted homes blend modern design with timeless elegance, providing a harmonious living environment. Enjoy top-tier amenities and a prime location, making Elegant Evergreen Homes the ideal choice for discerning homeowners.
Omaxe Sports City Dwarka stands out as a premier residential and recreational destination, offering a blend of luxury and sports-centric living. Located in the thriving area of Dwarka, this project by Omaxe Limited is designed to cater to modern lifestyle needs while promoting a healthy, active living environment.
Simpolo Tiles & Bathware
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You can also share this visualiser with others to help them design their space.
Committed to delighting customers with world-class ceramic products and services. Make Simpolo synonymous with the best quality and set new benchmarks of excellence for all stakeholders. Pursue best business practices with utmost integrity to make Simpolo an exciting organisation to work with, for vendors, channel partners, investors and employees alike.
Gain worldwide recognition in the field of ceramic building products through Research and Innovation and bring an enhanced lifestyle within reach for every household.
The KA Housing - Catalogue - Listing TurkeyListing Turkey
Welcome to KA Housing, a distinguished real estate development nestled in the heart of Eyüpsultan, one of Istanbul’s most promising districts.
Just 10 minutes from the bustling city center, Eyüpsultan offers a serene escape with the convenience of urban living. The direct metro line ensures seamless connectivity to all parts of Istanbul, making it an ideal location for residents who seek both tranquility and vibrancy.
KA Housing boasts unparalleled accessibility, with proximity to Istanbul Airport only 30 minutes away, facilitating easy international travel. Effortless city access is guaranteed by direct metro and transportation links to Istanbul’s cultural and commercial hubs. Quick access to key metro lines connects you to every corner of the city within minutes, making commuting and exploring the city hassle-free.
The development offers luxurious living spaces with a range of unit layouts from 1+1 to 4+1, designed with meticulous attention to detail. Each unit features balconies or terraces, providing stunning vistas of Istanbul and enhancing the living experience. High-quality materials and superior craftsmanship ensure durability and elegance, while sound-proof insulation and high ceilings (2.95 m) offer comfort and sophistication.
Residents of KA Housing enjoy exclusive on-site amenities, including a state-of-the-art gym, outdoor swimming pool, yoga area, and walking paths. Entertainment options abound with a private cinema, children’s playground, and a variety of dining options including a café and restaurant. Security and convenience are paramount with 24/7 security, a dedicated carpark garage, and an IP intercom system.
KA Housing represents a prime investment opportunity with limited availability in a high-demand area, ensuring enduring value and potential for lucrative returns. Homes in this development provide exceptional value without compromising on quality, offering affordable luxury for discerning buyers. The construction is of the highest quality, built to the latest seismic and disaster resistance standards, ensuring safety and resilience.
The community and surroundings of KA Housing are enriched by close proximity to prestigious universities such as Haliç University, Bilgi University, and Istanbul Ticaret University, making it an ideal location for students and academics. The development is adjacent to the Alibeyköy stream leading into the Halic waters, offering serene natural escapes amidst lush greenery. Residents can enjoy the cultural richness of the area, surrounded by historical and cultural landmarks that blend leisure, nature, and culture seamlessly.
https://listingturkey.com/property/the-ka-housing/
The SVN® organization shares a portion of their new weekly listings via their SVN Live® Weekly Property Broadcast. Visit https://svn.com/svn-live/ if you would like to attend our weekly call, which we open up to the brokerage community.
Torun Center Residences Istanbul - Listing TurkeyListing Turkey
THERE IS LIFE IN ITS CENTER!
The most energetic spot of the city that will add utterly different pleasures to your life, with a park that will make Istanbul breathe, delighting indoor and outdoor bistros, cafes, restaurants, the brand-new Food Hall concept, where dozens of unique tastes are served together, market area, cinema, theater, fitness club, SPA and event venue...
All the pleasures that will enrich your lives are awaiting you on the most beautiful side of the city, at Torun Center Residences. In Mecidiyeköy, where the heart of Istanbul beats, business, life and entertainment opportunities are located at the exact center, at Torun Center, the most beautiful side of the city.
Penthouse apartments and different styles of flats from 1 + 1 to 4 + 1, from 100 to 425 square meters in a 42-story residence tower, have been designed for those who want to live in the center of magnificence. Torun Center is the redefinition of a better life with specially landscaped floor gardens, apartment options with private balconies, and automatic glass systems equipped with Trickle Ventilation that offers clean air comfort.
Business and life in the same place
Excellent service
Torun Center has many delightful details, from a swimming pool to sunbathing and resting terrace. With 24/7 concierge services, 24/7 security, valet, technical service, closed-circuit camera system (CCTV), central heating and cooling system, it makes your life easier.
Delightful details
The two-story Torun Center Lounge, with its indoor and outdoor seating areas, children's playroom, private dining and TV lounge, promises unforgettable memories to you and your loved ones with its unique Istanbul view.
Neighboring to the most pleasant square of Istanbul
A few steps from the Torun Center Residences, you can reach the city's most modern city square and open the doors of a quality city life. Torun Center Residences brings together on the same project the long-awaited city life for Istanbul and gourmet restaurants, cafes, gym and SPA, and state-of-the-art cinema and Artı Stage, hosting the most famous plays of the season.
Located at the intersection of alternative public transportation options such as the metro and Metrobus, Torun Center comes to the fore as the most accessible office for both sides of Istanbul. With a central location and rich transportation lines, Torun Center offices make life easier for employees and increase productivity.
Rixos Tersane Istanbul Residences Brochure_May2024_ENG.pdfListing Turkey
Tersane Suites Residences is a luxurious real estate project located in the heart of Istanbul, next to the beautiful Golden Horn. This unique development offers hotel concept residences with Rixos management, making it the perfect choice for both homeowners and investors.
The Tersane Suites Residences offers a wide range of options, from studio apartments to spacious four-bedroom units, all designed to the highest standard. The suites are finished with high-quality materials and feature modern, open-plan living spaces, fully-equipped kitchens, and large balconies with stunning views of the city and sea.
One of the standout features of Tersane Suites Residences is the Rixos management, which provides a truly exclusive and upscale living experience. Residents will have access to a range of luxury amenities, including a fitness center, spa, and indoor and outdoor swimming pools. Plus, the on-site restaurants and cafes provide a taste of the local and international cuisine.
The Tersane Suites Residences also offers a great opportunity for investors, as it provides a rental guarantee program. This means that investors can enjoy a steady income stream, with the peace of mind that their property is being managed by a reputable and experienced team.
The location of Tersane Suites Residences is also unbeatable, with easy access to the city’s main transportation links and within close proximity to the historic center, making it the perfect base for exploring all that Istanbul has to offer.
Green Homes, Islamabad Presentation .pdfticktoktips
Green Homes Islamabad offers beautifully designed 5, 8, and 10 Marla homes near the airport and motorway. Enjoy luxury, convenience, and high rental returns in a prime location.
1.
Real Estate Financial Advisory
FINANCIAL STUDY
Prepared for
Client Name
Client Company Name
Date
Private & Confidential
SAMPLE
2. Client Company Name
Property Name / Address Financial Study
EXECUTIVE SUMMARY
Page 1 of 11
Date
Client Company Name (“Client”)
Client Name (“Client Contact”)
Address
PURPOSE OF REPORT:
Ploutus Advisors, LLC was commissioned by the Client, per engagement letter and agreement dated _____________,
to conduct a financial analysis for a proposed _______ unit apartment (for-rent) residential development project to be
located at __________________________. This report includes a detailed financial analysis of a potential development
scenario as presented by the Client to Ploutus Advisors, LLC. The development scenario analyzed as part of this report
is as follows:
_____________ rentable square feet of total project area which includes _______ market-rate rental
apartments and __________ rentable square feet of retail
This report has been prepared for the Client as a development program financial assessment document to enable and/or
lay a roadmap for further discussion, refinement, and/or modification of the proposed development program.
OVERVIEW:
The following table summarizes a few of the key asset or project level results for the proposed development scenario:
KEY METRICS
Total Project Cost $________MM
Cost Per Unit $___________
Levered Project Level IRR (5-Year) _____%
Unlevered Project Level IRR (5-Year) _____%
Cash-on-Cash Yield at Stabilization _____%
Profit (Levered) $________MM
Multiple (Levered) ______x
SAMPLE
3. Client Company Name
Property Name / Address Financial Study
EXECUTIVE SUMMARY
Page 2 of 11
The total required equity is $______MM. During the development phase, $______MM is sourced via construction loan
draws, and $______MM is accrued in the form of construction interest. Post development, upon stabilization of the
project, the construction loan balance is repaid through permanent loan financing of $_______MM plus cash from
operations. The analysis assumes a five (5) year investment horizon from development to exit. Per the development
budget, approved by the Client, the land and pre-development cost accounts for _____% of the total budget. Hard and
soft cost account for ______% and ______% of the total budget, respectively.
The asset or project level cash flows are further distributed based on a joint-venture waterfall / partnership structure
(“JV”). The terms used for a potential JV with an equity partner are as follows:
Equity Contribution: Developer (“Sponsor”) _____% and Investors (“LP” or Limited Partners”) _____%
Distribution: First, all invested equity to earn an IRR of _____% distributed pro-rata (“Hurdle Rate”)
Thereafter, all invested equity to earn ______% of the remaining cash flow distributed pro-rata,
and Sponsor to earn ______% of the remaining cash flow (“Promote”)
All distributions are made pari-passu
Based on the above proposed waterfall structure, the Limited Partners are projected to receive a five (5) year levered
IRR of ______% and multiple of ______x.
Results are on the following page and for detailed financial analysis refer to Appendix.
SAMPLE
4. Client Company Name
Property Name / Address Financial Study
EXECUTIVE SUMMARY
Page 3 of 11
CAPITALIZATION:
KEY PERFORMANCE METRICS:
SAMPLE
5. Client Company Name
Property Name / Address Financial Study
EXECUTIVE SUMMARY
Page 4 of 11
STATIC FINANCIALS:
CASH FLOW:
SAMPLE
6. Client Company Name
Property Name / Address Financial Study
EXECUTIVE SUMMARY
Page 5 of 11
BUILDING AREA AND BUDGET COST BREAKDOWN:
MONTE CARLO SIMULATION (MCS) RESULT:
ASSUMPTIONS:
The analysis is based on the following general assumptions as outlined below:
1) Development Program The development program includes ______ apartment units with an average unit area of
approximately ______ SF. The unit breakdown is as follows: ____% are studios, ____%
are 1 bed / 1 bath, ____% are 2 bed / 2 bath and _____% are 3 bed / 3 bath.
The project also includes ______ SF of retail at the podium level. Parking provides for
____ stalls on two levels; ____ spaces at-grade and ____ spaces below-grade. The
total rentable area of the project is _______ SF, and estimated gross building area is
______ SF.
2) Project Timeline Land Acquisition and Development – First 2 Years (24 months)
Lease-Up – Year 3 (12 months)
First Fully Stabilized Period – Year 4
Reversion – Year 5
3) Development Budget The land acquisition cost is $______MM. The hard cost is estimated to be $_____/SF
SAMPLE
7. Client Company Name
Property Name / Address Financial Study
EXECUTIVE SUMMARY
Page 6 of 11
based on estimated gross building area. The total development cost pre-financing is
estimated to be $_____MM or $_____/SF based on estimated gross building area.
4) Rents Apartment – The weighted average monthly per square foot rent is projected to be
$_____. Based on the comparables, for-rent properties in the subject area currently
have an average monthly per square foot rent of $_____. For Q1 2015, the downtown
_________ apartment market measured an average rent of $_____ and occupancy of
_______%.
Retail – For the retail component, the analysis assumes a NNN monthly per square foot
rent of $______.
Other Income – Parking revenue of $_____ per month per unit at a pay rate of _____%,
plus a combined pet and/or cable fee of $_____ per month per unit at a pay rate of
______% are included in the analysis.
Rents are projected to escalate at _____% per year.
5) Operating Expenses Operating expenses for the apartments stabilize at ______% of effective gross income
(“EGI”), equating to $_____ per month per unit. Operating expenses include a combined
annual property plus asset management fee _____% of EGI.
Operating expenses are projected to escalate at _____% per year and real estate taxes
escalate at _____% per year.
6) Absorption Pre-leasing is assumed to begin in Quarter 8. _____% of the units are projected to be
pre-leased. Thereafter, absorption is assumed at the rate of ____ apartment units per
quarter. Stabilized vacancy is assumed as ______%.
7) Capitalization (Cap) Rate Stabilized value for evaluation of permanent debt is determined using a cap rate of
_____%. The exit cap at reversion is assumed to be _____%.
8) Leverage The construction loan is assumed for a period of _____ months at an annual interest
rate of ____%. An operating reserve is assumed for shortfalls during the lease-up
phase.
Maximum permanent loan financing is determined as the lesser of loan amount based
on (i) loan-to-value of ______%, and (ii) debt service coverage ratio of _____x with an
annual interest rate of _____% based on a ____ year amortization period.
SAMPLE
8. Client Company Name
Property Name / Address Financial Study
EXECUTIVE SUMMARY
Page 7 of 11
RECOMMENDATIONS:
To further substantiate many of the key assumptions used herein, the Client is advised to explore the following steps:
(i) Conduct an in-depth review, and further value engineering, to refine and validate the development budget
based on drawings with input from the architect, project manager, and general contractor.
(ii) Conduct an apartment absorption study to ascertain current inventory level, competitive supply, absorption
trends, future demand projections, future rental and vacancy trends, and the ability of submarket to absorb
the planned project.
GENERAL METHODOLOGY:
This report includes an income-based analysis. In order to estimate the potential total return that may be generated by
the project, a reversion, or sale, of the project is assumed. The sale value is calculated by applying an exit cap rate to
the total net operating income (NOI). Key development cost assumptions and market research information used to
conduct the financial feasibility analysis are complied from sources deemed reliable and/or provided by the Client.
REPORT CONTENT:
The financial analysis as part of this report comprises of the following components:
1. Result: Project level details such as:
a. Capitalization: Breakdown of sources and uses
b. Key Performance Metrics: Unlevered (without debt) and levered (with debt) - profit, invested equity,
multiple, and internal rate of return (IRR)
c. Cash Flow: Annual cash flows, unlevered, levered and cumulative with payback
d. Cost Breakdown: Distribution of land, hard, and soft costs
e. Static Financials: Summary of total project cost, stabilized value, and cash-on-cash yield
f. Monte Carlo Simulation (MCS)1: Estimate of probabilities for levered IRR based on a sample size of
1,000 IRR values either being less than, between, or greater than pre-defined IRR limits
2. Cash Flows: Annual and quarterly proforma cash flows, and monthly development cost distribution are
included. The annual proforma also shows the cash flows on both an unlevered and a levered basis.
3. Development Budget: Detailed budget with breakdown for each major cost category; land, hard and soft.
Further, the development budget also lists itemized costs for major cost categories.
1 Monte Carlo Simulation (MCS): The levered IRR output of the financial analysis is subjected to a simulation test. The model generates 1,000 random levered
IRR values based on the assumption that the levered IRR has a standard deviation of 20.0%. The result of the MCS is displayed on the Result page.
SAMPLE
9. Client Company Name
Property Name / Address Financial Study
EXECUTIVE SUMMARY
Page 8 of 11
4. Financial Highlights: Projected stabilized value, maximum permanent debt estimate, and sources and uses for
the development period.
5. Rent Roll & Comparables: Rent roll, breakdown of units by type, list of comparable rental properties, and data
on the downtown Los Angeles market-rate rental residential market.
6. Waterfall: Proposed partnership or JV structure showing equity contribution and distribution of cash flows
between prospective LP investors and the developer.
SAMPLE
10. Client Company Name
Property Name / Address Financial Study
EXECUTIVE SUMMARY
Page 9 of 11
BIO:
Adnan Tapia
Adnan began his real estate career in 1993 and has over a period of 18 years worked on 16+ million square feet or
US$2.5 billion worth of US and India focused real estate transactions across several product types (office, industrial,
retail, residential, hospitality, mixed-use, land) and life cycles in areas such as real estate private equity, financial
consulting, acquisitions and development.
Currently, Adnan is a Principal at Ploutus Advisors; a boutique real estate investment and advisory firm based in Los
Angeles where he helps identify, underwrite and evaluate real estate investment and development opportunities for
investor clients, facilitates and advises on cross-border US-India real estate investment opportunities, and provides
unbiased conflict-free corporate real estate financial consulting to owners and users of real estate. At Ploutus Advisors,
Adnan has helped advise clients on over $200 million in real estate projects. Prior to Ploutus Advisors, Adnan co-
managed the western US operations for UrbanAmerica (UA); an institutional urban real estate private equity firm that
originated over US$2.0 billion in commercial and residential transactions throughout the US. During his tenure at UA,
Adnan helped source, underwrite, evaluate, structure and present to investment committee potential acquisition and
development joint venture opportunities. He played a key role on several projects; one such being the US$485 million
acquisition of a 3.1 million square foot office portfolio. Further, he also assisted senior management in the pursuit and
development of strategic business relationships as well as with internal fund operations. Prior to UA, Adnan worked at
global real estate services firm Cushman & Wakefield (C&W) where he evaluated and structured complex transactions,
and consulted on acquisition, disposition, real estate development, corporate leasing and critical internal operation-
related assignments. Adnan has advised clients such as O’Melveny Myers, Alaska Airlines, Sempra Energy, Warner
Bros., Washington Mutual (now part of JP Morgan Chase) and City National Bank among several others. Adnan started
his real estate career in India, where he has worked on over 550 acres of land transactions and 1.3 million square feet of
real estate development projects.
§ MBA in Banking and Finance, Case Western Reserve University, Ohio (nominated to the Honor Society of Beta
Gamma Sigma)
§ Master in Engineering, Cornell University, New York
§ Bachelor in Civil Engineering, University of Pune, India
§ California Real Estate Broker License
§ Lecturer, UCLA Extension: Course – Real Estate Development, Construction and Management
§ Member ULI, NAIOP, Cornell Real Estate Council (CREC)
Specialties: Real Estate Investment, Acquisitions, Development, Due Diligence, Underwriting & Financial Modeling,
Business Development & Transaction Origination, Structuring & Negotiation, Joint Ventures, Financing
SAMPLE
11. Client Company Name
Property Name / Address Financial Study
EXECUTIVE SUMMARY
Page 10 of 11
CONTACT:
Adnan Tapia
Principal
Ploutus Advisors, LLC
1875 Century Park East, Suite 700
Century City, CA 90067
Tel: +1.424.274.3561
Fax: +1.424.288.5624
Email: atapia@ploutusadvisors.com
DISCLAIMER:
This report is based on inputs from third parties and/or sources deemed reliable. This report and its contents are only for
informational purposes, and for use only by the intended recipient (“Client”). The information contained herein may be subject to
errors and/or omissions. The Client should not solely rely on information contained herein and is hereby advised to conduct its own
due diligence and consult with other advisors prior to making any investment decision. This analysis does not purport to be all-
inclusive, or to contain all of the information that prospective investors, lenders, and/or other stakeholders may desire. Further, the
findings and recommendations of this report may be subject to changes due to supply, demand, cost, and/or other changes related
to the real estate product type, general macro and/or micro economic environment, and/or other parameters that are beyond the
scope of this assignment and/or control of Ploutus Advisors, LLC. It should be noted that all financial projections are provided for
general reference and informational purposes only in that they are based on assumptions relating to the general economy,
competition, and other factors beyond the control of Ploutus Advisors, LLC and, therefore, are subject to material variation. There
may be other elements to the project not analyzed herein that have significant tax and accounting implications, in addition to other
factors that may impact the results of this report. Ploutus Advisors, LLC urges the Client to consult with their auditors, legal and/or
tax advisors in order to fully evaluate and validate any such impact. Ploutus Advisors, LLC, and its officers, principals, owners,
representatives and/or employees (collectively, “Ploutus Advisors, LLC”) do not make any representations, and do not provide any
guarantees and/or warranties, expressed or implied, as to the accuracy and/or completeness of the report, its financial analysis
and/or any of its contents. No independent demographic, econometric, market research, or development cost study was conducted
by Ploutus Advisors, LLC as part of this analysis. No legal commitments and/or obligations shall arise by reason of this report or
any of its contents. This report should not be used as the sole investment decision-making tool, and is not meant to replace or
substitute an offering memorandum or private placement memorandum.
SAMPLE
12. Client Company Name
Property Name / Address Financial Study
EXECUTIVE SUMMARY
Page 11 of 11
APPENDIX
DETAILED FINANCIALS
SAMPLE
13. CLIENT NAME
Property Name / Address
FINANCIAL HIGHLIGHTS
ESTIMATE OF PROFORMA STABILIZED VALUE Year 4 MAXIMUM DEBT LIMIT
Gross Potential Rent $12,384,720 Permanent Loan Terms
Less: Vacancy, Loss-to-Lease, Concessions $681,160 Interest Rate 5.000%
Plus: Other Income $133,488 Amortization Period 30 Years
Effective Gross Income (EGI) $11,837,048
Operating Expenses 33.8% $3,997,897 (i) Debt Based on Loan to Value (LTV)
Net Operating Income (NOI) - Apartments $7,839,152 Maximum LTV Percentage 70.00%
Net Operating Income (NOI) - Retail $698,649 Maximum Loan Based on LTV for Income Property $113,837,342
Net Operating Income (NOI) - Total $8,537,801
Capitalization Rate 5.25% (ii) Debt Based on Debt Coverage Ratio (DCR)
Stabilized Value of Income Property $162,624,774 Monthly NOI $711,483
Maximum DSCR 1.25
Maximum Monthly Payment (Annual NOI/DSCR/12) $569,187
Maximum Loan Based on DCR for Income Property $106,029,020
Maximum Loan = Lesser of (i) LTV Result or (ii) DCR Result
Maximum Loan for Income Property $106,029,020
SOURCES & USES - DEVELOPMENT PERIOD TOTAL Year 0 Year 1 Year 2
USES
Total Development Costs, Excluding Interest $126,359,752 $14,767,068 $40,635,153 $70,957,532
Plus: Construction Loan - Capitalized Interest $5,056,459 $0 $445,073 $4,611,386
Total Capital Costs $131,416,211 $14,767,068 $41,080,225 $75,568,918 (i)
Cash Flow from Operations
Net Operating Income (NOI) $0 $0 $0 $0
Less: Construction Loan Interest Accrued During Operations $0 $0 $0 $0
Cash Flow from Operations After Interest $0 $0 $0 $0 (ii)
TOTAL USES $131,416,211 $14,767,068 $41,080,225 $75,568,918 (i) - (ii)
SOURCES
Construction Loan Funding
Construction Loan: Net Draws $97,356,026 $0 $26,398,495 $70,957,532
Plus: Construction Loan - Net Accrued Interest $5,056,459 $0 $445,073 $4,611,386
Net Construction Loan Funding $102,412,485 $0 $26,843,568 $75,568,918
Plus: Equity Sources $29,003,726 $14,767,068 $14,236,658 $0
Plus: Additional Equity Required $0 $0 $0 $0
Less: Positive Cash Flow After Interest - Distributed $0 $0 $0 $0
Less: Cash Proceeds from Construction Loan Takeout $0 $0 $0 $0
TOTAL SOURCES $131,416,211 $14,767,068 $41,080,225 $75,568,918
TOTAL NET PROJECT COST - INITIAL TO LEASE-UP EQUITY RECONCILIATION
Capital Costs Total Development Costs, Excluding Interest $126,359,752
Total Development Cost, Excluding Interest $126,359,752 Plus: Construction Loan - Net Accrued Interest $5,056,459
Interest Accrued During Construction $5,056,459 Total Project Cost (Capital Costs Plus Operating Reserve) $131,416,211
Total Capital Costs $131,416,211 (a) Less: Construction Loan Draws 74.1% $97,356,026
Less: Net Accrued Interest $5,056,459
Operating Reserve Equity Contribution Required $29,003,726
Operating Loss During Lease-Up $0
Interest Accrued During Operating Period $6,207,323
Interest Paid During Operating Period ($4,679,774)
Total Operating Reserve Funded by Construction Loan $1,527,549 (b)
Total Net Project Costs
Total Project Cost (Capital Costs Plus Operating Reserve) $132,943,760 (a) + (b)
Less: Positive Cash Flow After Interest $0
Net Project Cost (Through Lease-Up) $132,943,760
Appendix: Page 1
SAMPLE
14. CLIENT NAME
Property Name / Address
WATERFALL / PARTNERSHIP STRUCTURE - DEVELOPER TEAM & LP INVESTOR
SUMMARY OF CONTRIBUTION & DISTRIBUTION
EQUITY Percent DISTRIBUTION Percent Percent PROFIT Percent Percent LP IRR
Development Team Equity Pro-Rata $2,900,373 10.00% $6,746,863 10.00% 9.33% $3,846,490 10.00% 8.88%
Limited Partner Equity Pro-Rata $26,103,353 90.00% $60,721,763 90.00% 83.99% $34,618,410 90.00% 79.96% 20.7%
Subtotal $29,003,726 100.00% $67,468,625 100.00% 93.32% $38,464,899 100.00% 88.85%
Development Team Promote $0 0.00% $4,828,670 6.68% $4,828,670 11.15%
Total $29,003,726 $72,297,295 100.00% $43,293,570 100.00%
PROFORMA SUMMARY Total Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Levered Cash Flow $43,293,570 ($14,767,068) ($14,236,658) $0 $814,411 $542,879 $70,940,005 $0 $0
Equity Invested $29,003,726 $14,767,068 $14,236,658 $0 $0 $0 $0 $0 $0
Cash Available For Distribution $72,297,295 $0 $0 $0 $814,411 $542,879 $70,940,005 $0 $0
Multiple 2.5x
Levered Asset Level IRR 22.5%
CASH FLOW DISTRIBUTION Total Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Tier 1: IRR HURDLE 12.00%
Development Team Equity 10.00% ($1,476,707) ($1,423,666) $0 $81,441 $54,288 $4,679,665 $0 $0
Limited Partner Equity 90.00% ($13,290,361) ($12,812,992) $0 $732,970 $488,591 $42,116,989 $0 $0
Total 100.00% $19,150,219 ($14,767,068) ($14,236,658) $0 $814,411 $542,879 $46,796,654 $0 $0
Cash Flow For Next Tier $24,143,351 $0 $0 $0 $0 $0 $24,143,351 $0 $0
Tier 2: BALANCE SPLIT
Development Team Equity 8.00% 10.00% $0 $0 $0 $0 $0 $1,931,468 $0 $0
Limited Partner Equity 72.00% 90.00% $0 $0 $0 $0 $0 $17,383,213 $0 $0
Development Team Promote 20.00% $0 $0 $0 $0 $0 $4,828,670 $0 $0
Total 100.00% $24,143,351 $0 $0 $0 $0 $0 $24,143,351 $0 $0
Appendix: Page 2
SAMPLE
15. CLIENT NAME
Property Name / Address
WATERFALL / PARTNERSHIP STRUCTURE - DEVELOPER TEAM & LP INVESTOR
SUMMARY OF CONTRIBUTION & DISTRIBUTION
EQUITY Percent DISTRIBUTION Percent Percent PROFIT Percent Percent LP IRR
Development Team Equity Pro-Rata $2,900,373 10.00% $6,746,863 10.00% 9.33% $3,846,490 10.00% 8.88%
Limited Partner Equity Pro-Rata $26,103,353 90.00% $60,721,763 90.00% 83.99% $34,618,410 90.00% 79.96% 20.7%
Subtotal $29,003,726 100.00% $67,468,625 100.00% 93.32% $38,464,899 100.00% 88.85%
Development Team Promote $0 0.00% $4,828,670 6.68% $4,828,670 11.15%
Total $29,003,726 $72,297,295 100.00% $43,293,570 100.00%
PROFORMA SUMMARY Total Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
RESULT
Limited Partner
Cash Flow Equity $34,618,410 ($13,290,361) ($12,812,992) $0 $732,970 $488,591 $59,500,202 $0 $0
Equity Draws $26,103,353 $13,290,361 $12,812,992 $0 $0 $0 $0 $0 $0
Distribution $60,721,763 $0 $0 $0 $732,970 $488,591 $59,500,202 $0 $0
Profit: $34,618,410 79.96%
Equity: $26,103,353 90.00%
Distribution $60,721,763 83.99%
Multiple: 2.3x
Levered IRR: 20.7% Share of Total
Development Team
Cash Flow Equity + Promote $8,675,160 ($1,476,707) ($1,423,666) $0 $81,441 $54,288 $11,439,804 $0 $0
Equity Draws $2,900,373 $1,476,707 $1,423,666 $0 $0 $0 $0 $0 $0
Equity Balance $1,476,707 $3,077,577 $3,446,887 $3,779,072 $4,178,273 $0 $0 $0
Distribution $11,575,533 $0 $0 $0 $81,441 $54,288 $11,439,804 $0 $0
Profit: $8,675,160 20.04%
Equity: $2,900,373 10.00%
Distribution $11,575,533 16.01%
Multiple: 4.0x
Levered IRR: 35.8% Share of Total
Appendix: Page 3
SAMPLE
16. CLIENT NAME
Property Name / Address
RENT ROLL & COMPARABLES
RENT ROLL
Apartment Unit Pricing Number Percent of Area Per Unit Total Area Rent Per SF Monthly Rent Annual
Type of Units Total Units RSF / Unit RSF $/RSF/Month $/Unit/Month Rent
Studio Market 50 13.9% 400 20,000 $4.50 $1,800 $1,080,000
1 Bed / 1 Bath Market 100 27.8% 610 61,000 $4.10 $2,500 $3,000,000
2 Bed / 2 Bath (T1) Market 100 27.8% 775 77,500 $3.74 $2,900 $3,480,000
2 Bed / 2 Bath (T2) Market 60 16.7% 900 54,000 $3.56 $3,200 $2,304,000
3 Bed / 3 Bath Market 50 13.9% 1,250 62,500 $2.88 $3,600 $2,160,000
Apartment - Subtotal / Average 360 100.0% 764 275,000 $3.64 $2,783 $12,024,000
Other
Retail 1 NNN 10 800 8,000 $3.50 $2,800 $336,000
Retail 2 NNN 10 900 9,000 $3.50 $3,150 $378,000
Other - Subtotal 20 17,000 $714,000
Total Rentable Area = 292,000 SF Annual Gross Rent = $12,738,000
50
100
100
60
50
Apartment Units By Type
Studio 1 Bed / 1 Bath 2 Bed / 2 Bath (T1) 2 Bed / 2 Bath (T2) 3 Bed / 3 Bath
Appendix: Page 6
SAMPLE
17. CLIENT NAME
Property Name / Address
RENT ROLL & COMPARABLES
RENT COMPARABLES
Unit Type Address Property Name Unit Area SF Monthly Rent Weight * Rent / SF Proximity
1 Bed / 1 Bath (2 Beds) xxxx xxxx 689 $3,500 10.0% $5.08 0.20 Mi.
2 Bed / 2 Bath (4 Beds) 1,141 $4,000 10.0% $3.51
3 Bed / 3 Bath (6 Beds) 1,309 $5,500 10.0% $4.20
1 Bed / 1 Bath xxxx xxxx 695 $2,500 5.0% $3.60 1.20 Mi.
1 Bed / 1 Bath xxxx xxxx 773 $2,500 8.0% $3.24 1.60 Mi.
2 Bed / 2 Bath 1,027 $3,500 8.0% $3.41
2 Bed / 2 Bath xxxx xxxx 1,125 $2,875 5.0% $2.56 0.90 Mi.
3 Bed / 2 Bath 1,535 $3,200 5.0% $2.08
Studio xxxx xxxx 450 $1,600 5.0% $3.56 0.80 Mi.
2 Bed / 2 Bath 1,200 $3,000 5.0% $2.50
Studio xxxx xxxx 600 $2,000 5.0% $3.33 0.80 Mi.
2 Bed / 2 Bath 1,000 $3,000 5.0% $3.00
Studio xxxx xxxx 570 $1,900 9.5% $3.33 1.00 Mi.
1 Bed / 1 Bath 700 $2,475 9.5% $3.54
Total / Avg 915 100.0% $3.49
Source: www.apartments.com as of July 2015
* Weight for each comparable is assigned based on potential tenant profile, proximity, size and quality of product
SUBMARKET - MARKET RATE RENTAL RESIDENTIAL
Item Q1 2015 Q1 2014 Item # of Units
Occupancy Rate 95.0% 95.0% Current Inventory 16,600
Rent / SF / Month $3.25 $3.00 Under Construction 7,860
Avg Rent / Month $3,185 $2,940 When Complete 24,460
Source: XYZ Co Proposed 8,810
Appendix: Page 7
SAMPLE
18. CLIENT NAME
Property Name / Address
DEVELOPMENT BUDGET
ESTIMATED BUILDING GROSS AREA 365,000 SF COST
$ Amount
PRE-DEVELOPMENT COST
(1) Land / Existing Property
1 Land Value / Value of Existing Property $32.88 / SF $12,000,000
2 Real Estate Fees (Broker, Acquisition, Finder) None 0.00% $0.00 / SF $0
3 Title Policy Seller Pays 0.00% $0.00 / SF $0
4 Transfer Taxes Seller Pays 0.00% $0.00 / SF $0
5 Legal / Due Diligence 0.71% $0.23 / SF $85,000
6 Off-Site Improvements 0.28% $0.09 / SF $33,333
7 Miscellaneous Fees 0.14% $0.05 / SF $16,667
Subtotal 1.13% $33.25 / SF $12,135,000
(2) Eng Fees / Entitlement
1 Appraisal Fees $0.41 / SF $150,000
2 Demolition Cost $1.92 / SF $700,000
3 Market Study $0.27 / SF $100,000
4 Planning & Zoning Fee - PUD Approval $0.41 / SF $150,000
5 Lot Line Adjustment - Parcel Maps/Plats $0.27 / SF $100,000
6 Entitlement Consultant w/Planning & Zoning $0.00 / SF $0
7 Financial Consultant $0.07 / SF $25,000
8 Special Development Fees $0.00 / SF $0
9 Traffic Study $0.07 / SF $25,000
10 Geotechnical Survey $0.02 / SF $7,000
11 Environmental Survey - Phase I $0.02 / SF $7,500
12 Environmental Survey - Phase II $0.02 / SF $7,500
13 ALTA Survey $0.03 / SF $10,000
14 Flood Certificate / Inspection Fee $0.00 / SF $0
15 Hazardous Material Remediation $0.00 / SF $0
Subtotal $3.51 / SF $1,282,000
PRE-DEVELOPMENT COSTS % Total: 10.6% $36.76 /SF $13,417,000
HARD COST
(1) Building
1 Foundations $19.18 / SF $7,000,000
2 Substructure (Slab on Grade; Basement Excavation; Basement Walls) $35.62 / SF $13,000,000
3 Superstructure (Floor & Roof Construction; Stair Construction) $82.19 / SF $30,000,000
4 Exterior Closure (Walls; Doors/Windows) $19.18 / SF $7,000,000
5 Roofing $2.05 / SF $750,000
6 Interior Construction (Partitions; Interior Finishes; Doors/Windows) $8.22 / SF $3,000,000
7 Elevators $2.14 / SF $780,000
8 Mechanical (Plumbing; HVAC; Fire Protection; Other) $7.40 / SF $2,700,000
9 Electrical $4.66 / SF $1,700,000
10 Equipment (Fixed/Movable Equipment; Furnishings) $1.85 / SF $675,000
Subtotal $182.48 / SF $66,605,000
(2) Parking
1 At Grade Parking 272 Stalls $15,000 / Stall = $4,080,000
2 Below Grade Parking 272 Stalls $35,000 / Stall = $9,520,000
Subtotal 544 Stalls $13,600,000
(3) Sitework
Sitework $4,500,000
(4) TIA (Retail / Commercial)
Tenant Improvement Allowance 17,000 SF x $20.00 / SF = $340,000
Subtotal $340,000
(5) Contingency
Hard Cost Contingency 10.0% $23.30 / SF $8,504,500
HARD COST - CONSTRUCTION % Total: 74.0% $256.30 /SF $93,549,500
Appendix: Page 8
SAMPLE
19. CLIENT NAME
Property Name / Address
DEVELOPMENT BUDGET
ESTIMATED BUILDING GROSS AREA 365,000 SF COST
$ Amount
SOFT COST
(1) Design & Consultants
1 Architect $4.11 / SF $1,500,000
2 MEP & Fire Protection $1.37 / SF $500,000
3 Structural $1.10 / SF $400,000
4 ADA $0.27 / SF $100,000
5 Surveyor $0.21 / SF $75,000
6 Civil $0.19 / SF $70,000
7 Exterior Skin $0.00 / SF $0
8 Landscaping $0.55 / SF $200,000
9 Restaurant & Kitchen $0.00 / SF $0
10 Roofing & Waterproofing $0.05 / SF $20,000
11 Swimming Pool & Equipment $0.04 / SF $15,000
12 Vertical Transportation $0.03 / SF $10,000
13 Parking $0.08 / SF $30,000
14 Acoustical $0.03 / SF $10,000
15 Audio Visual $0.01 / SF $5,000
16 Telecommunications / Data $0.04 / SF $15,000
17 Security $0.04 / SF $15,000
18 Contingency 5.00% $0.41 / SF $148,250
Subtotal % of HC: 3.33% $8.53 / SF $3,113,250
(2) Miscellaneous Development Cost
1 Site Security During Construction $0.55 / SF $200,000
2 Utility Consumption $0.14 / SF $50,000
3 Drawing / Printing $0.03 / SF $10,000
4 Team Meeting / Catering $0.01 / SF $5,000
Subtotal % of HC: 0.28% $0.73 / SF $265,000
(3) Permits & Fees
1 Building Permit Fee 0.37% $0.96 / SF $349,936
2 Plan Check Fee 0.09% $0.24 / SF $87,484
3 Grading Permit 0.10% $0.26 / SF $93,316
4 Water & Sewer Tap Fees 0.00% $0.00 / SF $0
5 State Imposed Fees 0.00% $0.00 / SF $0
6 School Impact Fees 0.50% $1.28 / SF $466,582
7 Other Misc. Permits & Fees 0.25% $0.64 / SF $233,291
Subtotal % of HC: 1.32% $3.37 / SF $1,230,609
(4) Testing & Inspections
1 Soils Testing $0.05 / SF $20,000
2 Concrete Testing / Reinforcing Inspec $0.04 / SF $15,000
3 Masonry Testing / Inspection $0.04 / SF $15,000
4 Steel Testing / Inspections $0.10 / SF $35,000
5 Fireproofing Testing / Inspections $0.07 / SF $25,000
6 Building Envelope / Window Wall Testing $0.05 / SF $20,000
Subtotal % of HC: 0.14% $0.36 / SF $130,000
(5) Legal & Accounting
1 Due Diligence / Purchase Agreement $0.14 / SF $50,000
2 Development / Construction Agreement $0.08 / SF $30,000
3 Consultant / Broker Agrmt / CC&Rs $0.08 / SF $30,000
4 Real Estate Tax Consultant / Audits / Accounting $0.05 / SF $20,000
5 Miscellaneous $0.01 / SF $5,000
Subtotal % of HC: 0.14% $0.37 / SF $135,000
Appendix: Page 9
SAMPLE
20. CLIENT NAME
Property Name / Address
DEVELOPMENT BUDGET
ESTIMATED BUILDING GROSS AREA 365,000 SF COST
$ Amount
(6) Insurance During Construction
1 Builders Risk Insurance (Hard Cost) Based on HC $0.30 /$100/Yr x 24 Mths $561,297
2 Builders Risk Insurance (Soft Cost) Based on SC $0.35 /$100/Yr x 24 Mths $36,552
3 General Liablility Wrap-up Policy % of HC 1.50% $1,403,243
4 Earthquake Insurance % of HC 0.00% $0
5 Professional Insurance - e.g.: CPPIC $50,000
6 Commercial Umbrella w/Constructn $0
7 Force Majeure w/Owner $0
Subtotal % of HC: 2.19% $5.62 / SF $2,051,091
(7) Taxes During Construction
1 Property Taxes 1.25% $1.58 / SF $577,728
2 Sales Tax w/Constructn $0.00 / SF $0
Subtotal % of HC: 0.62% $1.58 / SF $577,728
(8) Marketing / Leasing Office
1 Leasing Office (Staff/Equip/Furn/Trailer) $0.14 / SF $50,000
2 Model Room Construction $0.21 / SF $75,000
3 Model Room Furniture $0.07 / SF $25,000
4 Marketing (Print/Media Advt/PR) $0.14 / SF $50,000
5 Leasing Commissions (Retail/Commercial) 4.00% 60 Mths $0.39 / SF $142,800
6 Other $0.01 / SF $5,000
Subtotal % of HC: 0.37% $0.95 / SF $347,800
(9) Developer, Contractor, PM Fees & Escalations
1 Developer / Contractor Fee 6.0% $15.38 / SF $5,612,970
2 Project Management Fee (Hard Cost, Net of Contingency) 2.0% $4.66 / SF $1,700,900
3 Escalations 3.3% $9.06 / SF $3,305,416
Subtotal % of HC: 11.35% $29.09 / SF $10,619,286
(10) Soft Cost Contingency
Soft Cost Contingency 5.0% $2.53 / SF $923,488
SOFT COST % Total: 15.3% $53.13 /SF $19,393,252
TOTAL COST, PRE-FINANCING 100.0% $346.19 /SF $126,359,752
Appendix: Page 10
SAMPLE
21. CLIENT NAME
Property Name / Address
PROFORMA
ANNUAL CASH FLOW TOTAL Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
LEASE-UP
Stabilized Sale
DEVELOPMENT COST
Pre-Development Cost $13,417,000 $13,417,000 $0 $0 $0 $0 $0 $0 $0
Hard Cost $93,549,500 $7,800 $35,201,923 $58,339,776 $0 $0 $0 $0 $0
Soft Cost $19,393,252 $1,342,268 $5,433,229 $12,617,755 $0 $0 $0 $0 $0
$126,359,752 $14,767,068 $40,635,153 $70,957,532 $0 $0 $0 $0 $0
OPERATING CASH FLOW Yr 5 Onwards Yr 4 - $/SF/Mo Yr 1-7 Total
Gross Potential Revenue 3.00% $3.53 $63,837,049 $0 $0 $0 $12,024,000 $12,384,720 $12,756,262 $13,138,949 $13,533,118
Less: Loss-to-Lease 0.25% $0.00 $98,571 $0 $0 $0 $0 $0 $31,891 $32,847 $33,833
Less: Vacancy 5.00% $0.18 $5,897,252 $0 $0 $0 $3,306,600 $619,236 $637,813 $656,947 $676,656
Less: Concessions, Allowance, Bad Debt 0.50% $0.02 $319,185 $0 $0 $0 $60,120 $61,924 $63,781 $65,695 $67,666
Effective Rental Income $3.34 $57,522,040 $0 $0 $0 $8,657,280 $11,703,560 $12,022,777 $12,383,460 $12,754,964
Other Income 3.00% $0.04 $665,384 $0 $0 $0 $106,920 $133,488 $137,493 $141,617 $145,866
Effective Gross Income (EGI) $3.38 $58,187,424 $0 $0 $0 $8,764,200 $11,837,048 $12,160,269 $12,525,077 $12,900,830
Operating Expenses 3.00% $1.14 $20,513,374 $0 $0 $0 $3,787,665 $3,997,897 $4,117,834 $4,241,369 $4,368,610
Net Operating Income - Apartments $2.24 $37,674,051 $0 $0 $0 $4,976,535 $7,839,152 $8,042,436 $8,283,709 $8,532,220
Net Other Income - Retail 3.00% $0.20 $3,440,537 $0 $0 $0 $517,650 $698,649 $719,608 $741,197 $763,433
Net Operating Income (NOI) $2.44 $41,114,587 $0 $0 $0 $5,494,185 $8,537,801 $8,762,044 $9,024,905 $9,295,652
Less: Construction Interest Paid During Operations $4,679,774 $0 $0 $0 $4,679,774 $0 $0 $0 $0
Less: Annual Debt Service $13,391,342 $0 $0 $0 $0 $6,695,671 $6,695,671 $0 $0
Plus: Operating Reserve Funded by Construction Loan $0 $0 $0 $0 $0 $0 $0 $0 $0
Levered Cash Flow Before Tax - From Operations $4,722,914 $0 $0 $0 $814,411 $1,842,130 $2,066,373 $0 $0
Cash-on-Cash Yield 2.8% 6.4% 7.1%
EQUITY
Equity - Initial ($29,003,726) ($14,767,068) ($14,236,658) $0 $0 $0 $0 $0 $0
Equity - Additional Required $0 $0 $0 $0 $0 $0 $0 $0 $0
Equity - Initial and Additional Required ($29,003,726) ($14,767,068) ($14,236,658) $0 $0 $0 $0 $0 $0
CONSTRUCTION LOAN
Loan Draw - Net Funded $97,356,026 $0 $26,398,495 $70,957,532 $0 $0 $0 $0 $0
Interest Accrued - Net $6,584,008 $0 $445,073 $4,611,386 $1,527,549 $0 $0 $0 $0
Construction Loan Ending Balance $103,940,035 $0 $26,843,568 $102,412,485 $103,940,035 $0 $0 $0 $0
Net Cash Flow After Debt $814,411 $0 $0 $0 $814,411 $0 $0 $0 $0
Development Cost, Excluding Construction Loan Interest and Operating Reserves
DEVELOPMENT PERIOD OPERATING PERIOD
Appendix: Page 11
SAMPLE
22. CLIENT NAME
Property Name / Address
PROFORMA
ANNUAL CASH FLOW TOTAL Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
LEASE-UP
Stabilized Sale
DEVELOPMENT PERIOD OPERATING PERIOD
PERMANENT FINANCING Month Start 0 0 0 0 1 13 0 0
Max Loan Amount Per Stabilized Value $106,029,020 Month End 0 0 0 0 12 24 0 0
Construction Loan Ending Balance $103,940,035 Loan Draw $103,940,035 $0 $0 $0 $0 $103,940,035 $0 $0 $0
Permanent Loan Amount * $103,940,035 Loan Fees $1,299,250 $0 $0 $0 $0 $1,299,250 $0 $0 $0
* Minimum of Max Loan & Construction Loan Ending Bal. Debt Service / Year $13,391,342 $0 $0 $0 $0 $6,695,671 $6,695,671 $0 $0
Debt Service / Month $0 $0 $0 $0 $557,973 $557,973 $0 $0
Proceeds from Construction Takeout $0 Opening Loan Balance $0 $0 $0 $0 $103,940,035 $102,406,539 $0 $0
Interest Paid / Year $10,245,895 $0 $0 $0 $0 $5,162,176 $5,083,719 $0 $0
Interest Rate 5.00% Principal Paid / Year $3,145,447 $0 $0 $0 $0 $1,533,495 $1,611,952 $0 $0
Amortization 30.00 Yrs Closing Loan Balance $0 $0 $0 $0 $102,406,539 $100,794,588 $0 $0
Loan Fees 1.25% Loan Payoff $100,794,588 $0 $0 $0 $0 $0 $100,794,588 $0 $0
Financing - Beginning of Year 4 Cash Proceeds from Refinancing $0 $0 $0 $0 $0 $0 $0 $0 $0
Debt Service Coverage 1.29x na na na 1.28x 1.31x na na
Debt Yield Ratio 8.4% na na 8.3% 8.6% na na
REVERSION Sale In Exit Cap Rate Price Per Unit
Sale Price Year 5 5.00% $501,384 $180,498,106 $0 $0 $0 $180,498,106 $0 $0
Less: Cost of Sale 6.00% $10,829,886 $0 $0 $0 $10,829,886 $0 $0
Adjusted Sale Price $169,668,220 $0 $0 $0 $169,668,220 $0 $0
Less: Loan Payoff / Remaining Mortgage Balance $100,794,588 $0 $0 $0 $100,794,588 $0 $0
Levered Cash Flow Before Tax - From Sale $68,873,632 $0 $0 $0 $68,873,632 $0 $0
Unlevered Cash Flow $66,102,497 ($14,767,068) ($40,635,153) ($70,957,532) $5,494,185 $8,537,801 $178,430,264 $0 $0
Levered Cash Flow $43,293,570 ($14,767,068) ($14,236,658) $0 $814,411 $542,879 $70,940,005 $0 $0
Appendix: Page 12
SAMPLE
25. CLIENT NAME
Property Name / Address
PROFORMA
QUARTERLY CASH FLOW
Time 0 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5 Quarter 6 Quarter 7 Quarter 8
Year 1 Year 1 Year 1 Year 1 Year 2 Year 2 Year 2 Year 2
PRE-DEV DEVELOPMENT
OPERATING INCOME / (LOSS)
Total Number of Apartment Units 360 Units PreLease Start: Quarter 8 Pre Leasing
Apartments Leased Per Quarter 108 # PreLd Occ at Open: 30.00% 0 0 0 0 0 0 0 108
Cumulative Apartments Leased 84 Units/Qtr To Stabilization: 3 Quarters 0 0 0 0 0 0 0 108
Vacancy Due to Lease-Up (% of Gross Potential) - (Qtr-to-Qtr Avg) 85.0%
Stabilized Vacancy (% of Gross Potential) 5.00% 0.0%
Overall Apartment Vacancy Rate (% of Gross Potential) 85.0%
Gross Potential Revenue
Gross Annual Rent Escalation
Less: Loss-to-Lease
Loss-to-Lease as % of Gross Potential Rent
Less: Vacancy
Vacancy as % of Gross Potential Rent
Less: Concessions, Allowance, Bad Debt
Other as % of Gross Potential Rent
Effective Rental Income
Other Income
Pet Fee & Cable Income $25.00/Mo Pay Rate = 30.00%
Parking Income $75.00/Mo Pay Rate = 30.00%
Miscellaneous Income
Other Income
Effective Gross Income (EGI)
Appendix: Page 15
SAMPLE
26. CLIENT NAME
Property Name / Address
PROFORMA
QUARTERLY CASH FLOW
OPERATING INCOME / (LOSS)
Total Number of Apartment Units 360 Units PreLease Start: Quarter 8
Apartments Leased Per Quarter 108 # PreLd Occ at Open: 30.00%
Cumulative Apartments Leased 84 Units/Qtr To Stabilization: 3 Quarters
Vacancy Due to Lease-Up (% of Gross Potential) - (Qtr-to-Qtr Avg)
Stabilized Vacancy (% of Gross Potential) 5.00%
Overall Apartment Vacancy Rate (% of Gross Potential)
Gross Potential Revenue
Gross Annual Rent Escalation
Less: Loss-to-Lease
Loss-to-Lease as % of Gross Potential Rent
Less: Vacancy
Vacancy as % of Gross Potential Rent
Less: Concessions, Allowance, Bad Debt
Other as % of Gross Potential Rent
Effective Rental Income
Other Income
Pet Fee & Cable Income $25.00/Mo Pay Rate = 30.00%
Parking Income $75.00/Mo Pay Rate = 30.00%
Miscellaneous Income
Other Income
Effective Gross Income (EGI)
Quarter 9 Quarter 10 Quarter 11 Quarter 12 Quarter 13 Quarter 14 Quarter 15 Quarter 16
Year 3 Year 3 Year 3 Year 3 Year 4 Year 4 Year 4 Year 4
LEASE-UP FIRST STABILIZED YEAR
84 84 84 0 0 0 0 0
192 276 360 360 360 360 360 360
58.3% 35.0% 11.7% 0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 5.0% 5.0% 5.0% 5.0% 5.0%
58.3% 35.0% 11.7% 5.0% 5.0% 5.0% 5.0% 5.0%
$3,006,000 $3,006,000 $3,006,000 $3,006,000 $3,096,180 $3,096,180 $3,096,180 $3,096,180
0.00% 0.00% 0.00% 3.00% 0.00% 0.00% 0.00%
$0 $0 $0 $0 $0 $0 $0 $0
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
$1,753,500 $1,052,100 $350,700 $150,300 $154,809 $154,809 $154,809 $154,809
58.3% 35.0% 11.7% 5.0% 5.0% 5.0% 5.0% 5.0%
$15,030 $15,030 $15,030 $15,030 $15,481 $15,481 $15,481 $15,481
0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
$1,237,470 $1,938,870 $2,640,270 $2,840,670 $2,925,890 $2,925,890 $2,925,890 $2,925,890
$4,320 $6,210 $8,100 $8,100 $8,343 $8,343 $8,343 $8,343
$12,960 $18,630 $24,300 $24,300 $25,029 $25,029 $25,029 $25,029
$0 $0 $0 $0 $0 $0 $0 $0
$17,280 $24,840 $32,400 $32,400 $33,372 $33,372 $33,372 $33,372
$1,254,750 $1,963,710 $2,672,670 $2,873,070 $2,959,262 $2,959,262 $2,959,262 $2,959,262
Appendix: Page 16
SAMPLE
27. CLIENT NAME
Property Name / Address
PROFORMA
QUARTERLY CASH FLOW
Time 0 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5 Quarter 6 Quarter 7 Quarter 8
Year 1 Year 1 Year 1 Year 1 Year 2 Year 2 Year 2 Year 2
PRE-DEV DEVELOPMENT
Operating Expenses
Controllable Expenses
Payroll $1,300 / Unit / Year
R&M $200 / Unit / Year
Turnover $210 / Unit / Year
Recreational Amenities $100 / Unit / Year
Contracts & Landscaping $1,250 / Unit / Year
Leasing / Marketing $200 / Unit / Year
Admin (Office, Other G&A) $250 / Unit / Year
Utilities $600 / Unit / Year
Controllable - Subtotal
Non-Controllable
Real Estate Taxes 1.250% of Project Cost
Insurance - Property $800 / Unit / Year
Management Fees 4.00% of EGI - (Property + Asset Management)
Reserves $250 / Unit / Year
Non-Controllable - Subtotal
Total Operating Expenses
Operating Expenses as % of EGI
Net Operating Income (NOI) - Apartments
Other Income (NNN) - Retail
Retail Vacancy Rate
Net Income - Retail
Net Operating Income (NOI)
Net Cash Flow Before Debt - Initial to Stabilization ($14,767,068) ($10,151,113) ($9,894,150) ($4,645,315) ($15,944,574) ($32,505,390) ($26,027,532) ($9,493,883) ($2,930,726)
Appendix: Page 17
SAMPLE
28. CLIENT NAME
Property Name / Address
PROFORMA
QUARTERLY CASH FLOW
Operating Expenses
Controllable Expenses
Payroll $1,300 / Unit / Year
R&M $200 / Unit / Year
Turnover $210 / Unit / Year
Recreational Amenities $100 / Unit / Year
Contracts & Landscaping $1,250 / Unit / Year
Leasing / Marketing $200 / Unit / Year
Admin (Office, Other G&A) $250 / Unit / Year
Utilities $600 / Unit / Year
Controllable - Subtotal
Non-Controllable
Real Estate Taxes 1.250% of Project Cost
Insurance - Property $800 / Unit / Year
Management Fees 4.00% of EGI - (Property + Asset Management)
Reserves $250 / Unit / Year
Non-Controllable - Subtotal
Total Operating Expenses
Operating Expenses as % of EGI
Net Operating Income (NOI) - Apartments
Other Income (NNN) - Retail
Retail Vacancy Rate
Net Income - Retail
Net Operating Income (NOI)
Net Cash Flow Before Debt - Initial to Stabilization
Quarter 9 Quarter 10 Quarter 11 Quarter 12 Quarter 13 Quarter 14 Quarter 15 Quarter 16
Year 3 Year 3 Year 3 Year 3 Year 4 Year 4 Year 4 Year 4
LEASE-UP FIRST STABILIZED YEAR
$117,000 $117,000 $117,000 $117,000 $120,510 $120,510 $120,510 $120,510
$18,000 $18,000 $18,000 $18,000 $18,540 $18,540 $18,540 $18,540
$18,900 $18,900 $18,900 $18,900 $19,467 $19,467 $19,467 $19,467
$9,000 $9,000 $9,000 $9,000 $9,270 $9,270 $9,270 $9,270
$112,500 $112,500 $112,500 $112,500 $115,875 $115,875 $115,875 $115,875
$18,000 $18,000 $18,000 $18,000 $18,540 $18,540 $18,540 $18,540
$22,500 $22,500 $22,500 $22,500 $23,175 $23,175 $23,175 $23,175
$54,000 $54,000 $54,000 $54,000 $55,620 $55,620 $55,620 $55,620
$369,900 $369,900 $369,900 $369,900 $380,997 $380,997 $380,997 $380,997
$394,874 $394,874 $394,874 $394,874 $402,772 $402,772 $402,772 $402,772
$72,000 $72,000 $72,000 $72,000 $74,160 $74,160 $74,160 $74,160
$50,190 $78,548 $106,907 $114,923 $118,370 $118,370 $118,370 $118,370
$22,500 $22,500 $22,500 $22,500 $23,175 $23,175 $23,175 $23,175
$539,564 $567,923 $596,281 $604,297 $618,477 $618,477 $618,477 $618,477
$909,464 $937,823 $966,181 $974,197 $999,474 $999,474 $999,474 $999,474
72.5% 47.8% 36.2% 33.9% 33.8% 33.8% 33.8% 33.8%
$345,286 $1,025,887 $1,706,489 $1,898,873 $1,959,788 $1,959,788 $1,959,788 $1,959,788
$178,500 $178,500 $178,500 $178,500 $183,855 $183,855 $183,855 $183,855
58.3% 35.0% 11.7% 5.0% 5.0% 5.0% 5.0% 5.0%
$74,375 $116,025 $157,675 $169,575 $174,662 $174,662 $174,662 $174,662
$419,661 $1,141,912 $1,864,164 $2,068,448 $2,134,450 $2,134,450 $2,134,450 $2,134,450
$419,661 $1,141,912 $1,864,164 $2,068,448 $2,134,450 $2,134,450 $2,134,450 $2,134,450
Appendix: Page 18
SAMPLE
29. CLIENT NAME
Property Name / Address
PROFORMA
QUARTERLY CASH FLOW
Time 0 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5 Quarter 6 Quarter 7 Quarter 8
Year 1 Year 1 Year 1 Year 1 Year 2 Year 2 Year 2 Year 2
PRE-DEV DEVELOPMENT
TOTAL
A] Estimated Construction Interest
Max Construction Loan Estimate $106,029,020
Construction Interest - Annual Rate 6.00%
Construction Period 24 Months
Average Draw 60.00%
Est. Construction Loan Interest $7,634,089
Total Project Cost (Before Operating Reserve) (a) $133,993,842
B] Estimated Operating Reserve (During Lease-Up)
Lease-Up Period (Months until Stabilization) 9 Months
Estimated EGI During Lease-Up $6,573,150
Estimated OpEx During Lease-Up $2,840,749
NOI During Lease-Up $3,732,401 (i)
Est. Construction Interest During Lease-Up $4,771,306 (ii)
Operating Reserve Required (During Lease-Up) (b) = (ii)-(i) $1,038,905
Estimated Total Project Costs (a) + (b) $135,032,746
Maximum Loan Balance $106,029,020
Equity Required $29,003,726 $14,767,068 $10,151,113 $4,085,545 $0 $0 $0 $0 $0 $0
C] Construction Loan Account and Interest Calculation
Beginning Balance (i) $0 $0 $5,852,170 $10,620,107 $26,843,568 $59,995,401 $87,118,071 $97,989,930
(a) Loan Draw & Releases
Construction Draw - Initial Request (ii) $97,356,026 $0 $0 $5,808,605 $4,645,315 $15,944,574 $32,505,390 $26,027,532 $9,493,883 $2,930,726
Operating Deficit (iii) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Trial Balance (i)+(ii)+(iii) = (iv) $103,940,035 $0 $0 $5,808,605 $10,497,485 $26,564,682 $59,348,957 $86,022,933 $96,611,954 $100,920,656
Additional Equity Required (v) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Construction Draw - Net Funded (iv)+(v)-(i) = $97,356,026 $0 $0 $5,808,605 $4,645,315 $15,944,574 $32,505,390 $26,027,532 $9,493,883 $2,930,726
Ending Balance Before Interest (iv) + (v) = (vi) $0 $0 $5,808,605 $10,497,485 $26,564,682 $59,348,957 $86,022,933 $96,611,954 $100,920,656
Avg Loan Balance Before Interest [(i)+(vi)] / 2 = (vii) $0 $0 $2,904,303 $8,174,827 $18,592,395 $43,096,262 $73,009,167 $91,865,013 $99,455,293
(b) Total Construction Loan Interest 6.00% $0 $0 $43,565 $122,622 $278,886 $646,444 $1,095,138 $1,377,975 $1,491,829
Interest Accrued During Construction Period (viii) $5,056,459 $0 $0 $43,565 $122,622 $278,886 $646,444 $1,095,138 $1,377,975 $1,491,829
Interest Accrued During Operating Period (ix) $6,207,323 $0 $0 $0 $0 $0 $0 $0 $0 $0
Interest Paid from Operations (x) ($4,679,774) $0 $0 $0 $0 $0 $0 $0 $0 $0
Trial Ending Balance (vi)+(viii)+(ix)+(x) = (xi) $103,940,035 $0 $0 $5,852,170 $10,620,107 $26,843,568 $59,995,401 $87,118,071 $97,989,930 $102,412,485
Additional Equity Required (xii) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Interest Accrued - Net (viii)+(ix)+(x)+(xii) = (xiii) $6,584,008 $0 $0 $43,565 $122,622 $278,886 $646,444 $1,095,138 $1,377,975 $1,491,829
Ending Balance (xi)+(xii) = (xiv) $103,940,035 $0 $0 $5,852,170 $10,620,107 $26,843,568 $59,995,401 $87,118,071 $97,989,930 $102,412,485
Total Additional Equity Required (v)+(xii) = (xv) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Cash Flow After Debt (Year 1 to Year 3) $814,411 $0 $0 $0 $0 $0 $0 $0 $0 $0
Appendix: Page 19
SAMPLE
30. CLIENT NAME
Property Name / Address
PROFORMA
QUARTERLY CASH FLOW
TOTAL
A] Estimated Construction Interest
Max Construction Loan Estimate $106,029,020
Construction Interest - Annual Rate 6.00%
Construction Period 24 Months
Average Draw 60.00%
Est. Construction Loan Interest $7,634,089
Total Project Cost (Before Operating Reserve) (a) $133,993,842
B] Estimated Operating Reserve (During Lease-Up)
Lease-Up Period (Months until Stabilization) 9 Months
Estimated EGI During Lease-Up $6,573,150
Estimated OpEx During Lease-Up $2,840,749
NOI During Lease-Up $3,732,401 (i)
Est. Construction Interest During Lease-Up $4,771,306 (ii)
Operating Reserve Required (During Lease-Up) (b) = (ii)-(i) $1,038,905
Estimated Total Project Costs (a) + (b) $135,032,746
Maximum Loan Balance $106,029,020
Equity Required $29,003,726
C] Construction Loan Account and Interest Calculation
Beginning Balance (i)
(a) Loan Draw & Releases
Construction Draw - Initial Request (ii) $97,356,026
Operating Deficit (iii) $0
Trial Balance (i)+(ii)+(iii) = (iv) $103,940,035
Additional Equity Required (v) $0
Construction Draw - Net Funded (iv)+(v)-(i) = $97,356,026
Ending Balance Before Interest (iv) + (v) = (vi)
Avg Loan Balance Before Interest [(i)+(vi)] / 2 = (vii)
(b) Total Construction Loan Interest 6.00%
Interest Accrued During Construction Period (viii) $5,056,459
Interest Accrued During Operating Period (ix) $6,207,323
Interest Paid from Operations (x) ($4,679,774)
Trial Ending Balance (vi)+(viii)+(ix)+(x) = (xi) $103,940,035
Additional Equity Required (xii) $0
Interest Accrued - Net (viii)+(ix)+(x)+(xii) = (xiii) $6,584,008
Ending Balance (xi)+(xii) = (xiv) $103,940,035
Total Additional Equity Required (v)+(xii) = (xv) $0
Net Cash Flow After Debt (Year 1 to Year 3) $814,411
Quarter 9 Quarter 10 Quarter 11 Quarter 12 Quarter 13 Quarter 14 Quarter 15 Quarter 16
Year 3 Year 3 Year 3 Year 3 Year 4 Year 4 Year 4 Year 4
LEASE-UP FIRST STABILIZED YEAR
$0 $0 $0 $0
$102,412,485 $103,529,012 $103,940,035 $103,940,035
$0 $0 $0 $0
$0 $0 $0 $0
$102,412,485 $103,529,012 $103,940,035 $103,940,035
$0 $0 $0 $0
$0 $0 $0 $0
$102,412,485 $103,529,012 $103,940,035 $103,940,035
$102,412,485 $103,529,012 $103,940,035 $103,940,035
$1,536,187 $1,552,935 $1,559,101 $1,559,101
$0 $0 $0 $0
$1,536,187 $1,552,935 $1,559,101 $1,559,101
($419,661) ($1,141,912) ($1,559,101) ($1,559,101)
$103,529,012 $103,940,035 $103,940,035 $103,940,035
$0 $0 $0 $0
$1,116,527 $411,023 $0 $0
$103,529,012 $103,940,035 $103,940,035 $103,940,035
$0 $0 $0 $0
$0 $0 $305,063 $509,347
Notes: Construction Loan Account and Interest Calculation
(i) Construction Draws are provided by the lender as construction
progresses. In the event that the draw request, together with the
carried balance of the construction loan, exceeds the maximum
draw limit, then additional equity is required to maintain the
construction loan balance at the maximum draw limit. The net
construction draw amount is the amount borrowed after
additional equity is contributed, if any. Also note that any
operating deficits that need to be funded by the lender are
requested and included as part of the draw.
(ii) Accrued interest is added to the overall balance of the
construction loan. In the event that the accrued interest, together
with the carried balance of the construction loan, exceeds the
maximum draw limit, then additional equity is required to maintain
the construction loan balance at the maximum draw limit. The net
accrued interest amount is the amount accrued after additional
equity is contributed, if any.
Appendix: Page 20
SAMPLE
39.
Ploutus Advisors, LLC
1875 Century Park East, Suite 700
Century City
CA 90067
Tel: 424.274.3561
Fax: 424.288.5624
Email: info@ploutusadvisors.com
SAMPLE