SEEKING JOINT-VENTURE PARTICIPATION

Transcription

1 SEEKING JOINT-VENTURE PARTICIPATION To-Be-Built 72-Unit Apt Project HUD 221d4 Loan Market Rent 3-Story Garden Style Multifamily Community Representative Photo Trophy Location in Post Falls, Idaho Experienced Sponsor-Developer Representative Photo

2 TABLE OF CONTENTS EXECUTIVE SUMMARY Joint-Venture Investor s Highlights Funding and Project Timelines Project Capitalization FINANCIAL SUMMARY Pro Forma Unit Mix Financial Analysis Cost Depiction (Pro Forma) Revenue Depiction (Pro Forma) LOCATION-PROPERTY OVERVIEW Location - Property Maps HUD Market at a Glance Link to Feasibility Study SPONSOR-DEVELOPER PROJECT LIST

3 EXECUTIVE SUMMARY Joint Venture Investor s Highlights Stabilized Net Operating Income: $ 713,723 (Pro Forma) Cap Rate Range Stabilized Valuation 5.75% $12,412,573 Current Market Valuation 6.00% $11,895, % $11,419, % $10,980,353 Total Development Cost: $9.76M Requested Capital-Participation Amount: $1.63M Excellent Opportunity for JV-partners to capitalize on the strong demand for new multifamily projects North Idaho MSA. Demand for this product type is fueling historically low cap rates. Sponsor-Developer is experienced and reliable. North Idaho market offers current Zero-Vacancy coupled with 5-yr solid growth potential. Trade area is growing robustly with strong demographics and vigorous development. Site-Property is superbly equipped with excellent access-visibility, increasing traffic counts, freeway proximity, and burgeoning residential developments.

4 EXECUTIVE SUMMARY Funding and Project Timelines Land-Purchase Contingencies: 90-Day Feasibility Contingency: Start Date: Sep 21, 2016 One (1) 90-day Feasibility Extension Final Date: Mar 21, 2017 Capital Participation Parameters Funding Start Date: January 1, 2017 Funding Payback Date: April 1, 2019 Estimated Duration: 810 Days (27 mo) Sep Land Land-Purchase Time Line Dec Purchase Purchase Time Time Line Line Jan 1, 2017 Development Commences Jan 1, 2017 Funding Commitment Date Funding Funding Funding Time Time Time Line Line Line Development Development-Stabilization Jul Building Permits Mar Apr Construction Completion (CO) Stabilization-Refinance Refinance Refinance TimeLine TimeLine TimeLine Dec % Occupancy Apr Stabilized Refinance Funding Apr Equity Recovery Date Apr Funding Payback Date

5 EXECUTIVE SUMMARY Project Capitalization Sources of Project Capital (Pro Forma) Construction Loan (83.3% of Cost) $ 8,130,000 Joint-Venture Capital (17.7% of Cost) $ 1,630,000 Total Project Capital $ 9,760,000 Uses of Project Capital (Pro Forma) Purchase Land $ 720,000 Construction & Reserves $ 8,670,000 Capitalization-Loan Placements $ 200,000 HUD Fees $ 170,000 Total Application of Capital $ 9,760,000

6 FINANCIAL SUMMARY No of Units % of Total Units Unit Type Avg. Size (SF) Net Rentable Area (SF) Pro Forma Unit Mix Mkt. Rent/SF Avg. Mkt. Rent/ Unit Annual Total % 1/ ,150 $1.65 $1,070 $398, % 2/ ,250 $1.41 $1,337 $240, % 2/2 1,050 15,750 $1.30 $1,367 $246, % 3/2 1,250 13,750 $1.24 $1,545 $203, % All ,900 $1.46 $1,260 $1,088,700

7 FINANCIAL SUMMARY Cost Depiction (Pro Forma) Land $ 720,000 Direct Building Cost $ 6,918,683 $96,092 per unit Indirect Building Cost $ 1,751,317 including Reserves HUD Fees $ 170,000 Capitalization Cost $ 200,000 Financial Analysis ` Total Cost $ 9,760,000 Revenue Depiction (Pro Forma) Scheduled Revenue $ 1,088,700 Vacancy Allowance (5%) $ 54,435 Pet/Miscellaneous Income $ 22,860 Stabilized Income (Gross) $ 1,057,125 Stabilized Expenses (32.48%) $ 343,402 Stabilized Net Operating Income (NOI) $ 713,723

8 LOCATION PROPERTY OVERVIEW Area Maps

9 LOCATION PROPERTY OVERVIEW Neighborhood Map

10 LOCATION PROPERTY OVERVIEW Site Map

11 LOCATION PROPERTY OVERVIEW Parcel Map

12 LOCATION PROPERTY OVERVIEW Click For: HUD Feasibility Study Click For: Project Exhibits HUD Market At A Glance Page 1

13 LOCATION PROPERTY OVERVIEW HUD Market At A Glance Page 2

14 Sponsor-Developer Project List

15 Application for Multifamily Housing Project U.S. Department of Housing and Urban Development Office of Housing See Instructions on page 7 Federal Housing Commissioner OMB No (Exp. 7/31/94) Public reporting burden for this collection of information is estimated to average 64 hours per response, including the time for reviewing instructio ns, searching existing data sources, gathering and maintaining data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Reports Management Officer, Office of Information Policies and Systems, U.S. Department of Housing and Urban Development, Washington, D.C and to the Office of Management and Budget, Paperwork Reduction Project ( ), Washington, D.C Do not send this completed form to either of these addressees. Privacy Act Statement. The U.S. Housing Act of 1937, as amended, authorizes the Department of Housing an Urban Development (HUD) to collect all this information. The Housing and Community Development Act of 1987, 42 U.S. C 3543 authorizes HUD to collect Social Security Numbers (SSN). Providing the SSN is mandatory for the sponso r mortgagor, borrower, and the owner. Failure to provide the SSN could result in disapproval of participation in this HUD Program and/or delay action on the proposal. Submission of the SSN by all other participants is vo luntary. The information is authorized by 24 CFR and is being collected by HUD to facilitate the evaluation of multiple participation. The SSN is used as a unique identifier. HUD may disclose this information to Fede ral, State and local agencies when relevant to civil, criminal, or regulatory investigations and prosecutions. It will not be otherwise disclosed or released outside of HUD, except as required and permitted by law. Section A - Project Identification 1. Name of Project 2. HUD Project Number (Mortgage Ins. or Sec. 202) TBD 3. HUD Project Number (Section 8) Tullamore Crossing Apartments Section B - Purpose of Application To: The Assistant Secretary for Housing-Federal Housing Commissioner: Application is being made pursuant to Item (a): 1, 2, 3 of section M, Page 3 hereof. The undersigned desire(s) to participate, with respect to the property and Program(s) described below. Therefore, it is requested that you give consideration to the information presented herein, for the purpose of loaning and/or approving: Mortgage Insurance 221(d)(4) Mortgagor: PM NP LD B-S Other a Feasiblity Letter (Rehab.) Direct Loan Section 202 Financing: Conventional GNMA Bond State Agency a SAMA Letter (New Const.) Housing Asst. Pymnts. Sec. 8 Other a Conditional Commitment a Preliminary Proposal Mortgage/Loan Amount: $6,914,000 a Firm Commitment a Final Proposal Interest Rate: Permanent 4.50% Construction 4.50% Section C - Location and Description of Property 1. Street Address 2. Municipality 3. County 4. State & Zip Code 5. Congressional Dist E. Poleline Avenue Post Falls Kootenai ID TBD 6. Type of Project 7. Number of Units 8. No. of Buildings 9. List Accessory Buildings 10. List Recreation Facilities Proposed Existing Rehabilitation Revenue: 72 Clubhouse 3,100 sq ft Yr. Built: Non-Revenue: 0 Total: 72 3 Sq. Ft. Sq. Ft. 12. Type of Buildings 12. No. of Stories 13. No. of Elevators 14. Type of Foundation Elevator Walkup Row (T.H.) Slab on Grade Crawl Space Partial Bsmt Detached Semi-Detached 3 Full Basement 15. Structural System 16. Floor System 17. Exterior Finish 18. Heating A/C System 19. Air conditioning System TBD Engineered wood/carpet Hardiboard TBD TBD Section D - Information Concerning Land or Property 1. Date 2. Price 3. Additional Cost 4. Total Cost 5. Outstanding Balance 6. Relationship between Seller and Buyer, Business, Acquired Purchase Paid or Accrued Personal or Other (attach a cost Optioned Option breakdown) None $ 720,000 $ 720,000 $ 720, Site Area 8. Zoning (if recently changed, Submit evidence) 9. If leasehold, show annual ground rent 10. Lease term, remaining yr acres CCS w/spec Use Permit for Hi-Density Residential N/A N/A 10. Off Site Facilities Public Community At site Feet from Site 11. Unusual Site Features 12. Special Assessments NOT APPLICABLE Water ft. None Poor Drainage a. Prepayable Non-prepayable Sewer ft. Cuts Retaining Walls b. Principal Balance Paving ft. Fill Rock Foundations c. Annual Payment Gas Erosion ft. High Water Table d. Remaining Terms yrs. Electric ft. Other Previous Editions Are Obsolete. form HUD (10/92) Page 1 of 8 ref. Handbook

16 Section E - Estimate of Income PBE Not in No. of No. of Units Living Area Rent ($) Unit Rent Total Monthly Unit Type Living Units Assisted (Sq. Ft.) Composition of Units *(Sec. F-1) per Mo. ($) Unit Rent ($) 1BR Bedroom/1bath 900 $27,900 $1.38 2BR Bedroom/2Bath 1,125 $16,875 $1.18 2BR 15 1,050 2 Bedroom/2Bath 1,150 $17,250 $1.10 3BR 11 1,250 3 Bedroom/2 Bath 1,300 $14,300 $1.04 Employee(s) Liv. Unit(s) 0 Totals Total Estimated Monthly Rentals for All Living Units $76, Number of Parking Spaces 4. Parking and Other Income (Not Included in Rent) Attended Garages per month = $0 $0 Surface parking 0 Storage per month = $0 $0 Self Park Pet Rent per month = $0 $450 Covered stalls/garages 0 Other Late fees, etc. per month = $0 $15 Total Spaces 0 Total Ancillary Income $ % 5. Commercial Space (Describe) Area-Ground Level sq. $0.00 per sq. ft./mo. = $0 Total Commercial $0 6. Total Estimated Monthly Gross Income at 100 Percent Occupancy $ 76, Total Annual Rent (Item 6 times 12 months) $ 921, Gross Floor Area 9. Net Rentable Residential Area 10. Net Rentable Commercial Area 67,000 Sq. Ft. 63,900 0 Sq. Ft. Section F - Equipment and Services (Check Items Included in the Rent, Listed Below) Other Balcony & Patio Section F-1 - Utilities (Not in Rent) Equipment Services Gas Elect. Oil *Personal Benefit Expenses (PBE) Range and Oven Microwave Oven Carpet Drapes Heat Hot Water Check Utilities and Services Not Included in the Rent and Paid Directly by the Tenant. Refrigerator Swimming Pool Cooking Electricity Heating Gas Laundry Facilities Air Conditioning Equip. Decorating Repairs Water In Common Area Trash Compactor In Living Unit Disposal Other L.U. Hookup Only Air Conditioning Lights, etc. in Units Cold Water Other Parking Remarks

17 Section G - Estimate of Replacement Cost Section H - Annual Income Computations Land Improvements 1. Estimated Project Gross Income 1. Unusual Land Improvements (Line 7, Sec. E, Pg.2) $921, Other Land Improvements $0 2. Occupancy (Entire Project) 93% 3. Total Land Improvements $0 3. Effective Gross Income (Line 1 x Line 2) $856,976 Structures 4. Total Project Expenses (Line 30, Section I) $350, Main Buildings $5,034,590 Estimate inc Site 5. Net Income to Project (Line 3 minus Line 4) $506, Accessory Buildings/Club House & amentities $0 6. Expense Ratio (Line 4 divided by Line 3) 40.9% 6. Garages & Carports $0 Section I - Estimate of Annual Expense 7. All Other Buildings - Contingency $0 Administrative 8. Total Structures $5,034, Advertising $5, Subtotal (Line 3 plus Line 8) $5,034, Management Fee 6.3% $31, General Requirements Inc in Hard Costs 0.00% $0 3. Other / Legal / Office $9, Subtotal (Line 9 plus Line 10) $5,034, Total Administrative $47,266 Fees 12. Builder's General Overhead Inc in Hard Costs 0.0% $0 Operating 13. Builder's Profit None per BSPRA 0.0% $0 5. Elevator Maintenance Exp. $0 14. Subtotal (Sum of Lines 11 through 13) $5,034, Heat $0 15. Bond Premium Estimate $65, Fuel - Domestic Hot water $0 16. Other Fees $703, Lighting and Misc. Power $9, Estimated Total Cost of Construction $5,803, Water & sewer $44, Architect's Fee - Design 75% 4.1% $207, Gas $0 19. Architect's Fee - Supervisory 25% 0.0% $0 11. Garbage and Trash Removal $9, Total For All Improvements 12. Payroll $77,616 (Sum of Lines 17 through 19) $6,010, Other & snow removal $0 21. Cost Per Gross Square Foot $ Total Operating $141,696 (Line 20 divided by Item 8, Section E) 22. Construction Time 12 Months Plus 2 = 14 Months Maintenance Charges and Financing During Construction 15. Decorating / Cleaning $0 23. Interest 4.50% on 16. Repairs $19,368 $3,457,000 $181, Exterminating $0 24. Taxes $81, Insurance $12, Insurance $31,134 Bldr's Risk 19. Ground Expense $11, HUD/FHA Mtg. Ins. Pre. 1.30% $89, Other (security, etc.) $0 27. HUD/FHA Exam. Fee 0.30% $20, Total Maintenance $43, HUD/FHA Inspection Fee 0.50% $34, Replacement Res.: New Const. = (.006 x Line 8, 29. Financing Fee 1.00% $69,140 Sec. G Total Struct.) Rehab = (.004 x Mort/Loan $25, Permanent Placement Fee / Syndication 1.00% $69,140 Requested in Sec. M) 31. GNMA fee 0.09% $6, Subtotal Expenses (Sum of Lines 4, 14, 21 and 22) $257, Lender Legal 0.00% $32, Real Estate: Est. Assessed Value = Title & Recording: $30, Total Charges and Financing $645,601 at $xx.xx per $1000 = 81,000 Legal, Organization and Audit Fee 25. Personal Prop. Est. Assessed Value 35. Legal $28,500 $ Organization $46,200 at $ per $1000 = 37. Cost Certification Audit Fee $10, Employee Payroll Taxes $0 38. Total Legal, Organization and Audit Fee $84, Other $1,944 Wifi 39. Builder's and Sponsor's Profit and Risk 10.00% $674, Misc $9,720 Turnover 40. Consultant Fee (NP only) $0 29. Total Taxes $82, Supplemental Management Fund $0 30. Total Expenses (Line 23 plus Line 29) $350, Contingency Reserve (Rehabilitation Only) 0.0% $0 31. Avg. exp. per unit per annum (PUPA) 43. Relocation Expenses (Rehabilitation Only) $0 (Line 30 divided by Total Item 7 Sec. C) $4, Other $0 45. Total Estimated Development Cost (Lines through 44) $7,414, Land (Estimated Market Price of Site) 47. Total Estimated Replacement Cost of Project (Line 45 plus Line 46) 8,134, Average Cost Per Living Unit $102,986 (Line 45 divided by Total in Sec. C, Item 7) $720,000 $9,700 per unit Page 3 of 8 form HUD-92013

18 Section J - Total Settlement Requirements 1. Development Costs (Line 45, Section G) $7,414,977 Funds Available for Cash Requirements 2. Cash Req. for Land Debt/Acquisition $720, Source of Cash: 3. Subtotal (Lines 1 + 2) $8,134,977 a. BSPRA $674, Mortgage Amount $6,914,000 b. Equity injection by borrower $966, Development/Cash (Lines 3 minus 4) $1,220,977 c. Line of credit for IOD &WC $0 6. Initial Operating Deficit est 6 mo DS $208,967 d. Owners "Other Fees" paid $66,000 Pre-development ex 7. Discount Costs $0 Subtotal (a + b + c) $1,706, Interest Yield Costs $0 16. Source of Fees and Grants: $1,706, Working Capital (4% of Mortgage Amount) $276,560 a. $0 10. Min. Capital Investment (Sec. 202) $0 b. $0 11. Off-Site Construction Costs $0 c. $0 12. Non-Mortgagable Relocation Expenses $0 Subtotal (a + b + c) $0 13. Other $0 17. Total Cash, Fees and Grants 14. Total Estimated Cash Required (Sum of Items 15 plus 16) $1,706,504 (Sum of Lines 5 through 13) $1,706,504 Note: Line 17 must equal or exceed Line 14 $1,706,504

19 APPLICATION ADDENDUM to Tullamore Crossing Apartments HUD 221(d)(4) Application for Mortgage Insurance - New Const. MORTGAGE AMOUNT DETERMINATION Estimated Net Earnings (from H-5) $506,375 85% Limitation 85.0% Net Earnings Available for Debt Service $430,418 Maximum Mortgage based on DSC $7,120,529 Total Estimate Replacement Cost of Project (from G-47) $8,134,977 85% Limitation 85.0% Maximum Mortgage based on Replacement Costs $6,914,731 Per Unit Cost Limits - Non-Elevator Base (2014) # of Units Total 0 Bedrooms $53,928 0 $0 1 Bedrooms $61, $1,916,482 2 Bedrooms $75, $1,127,640 3 Bedrooms $97, $1,458,765 4 Bedrooms $106, $1,174, $5,677,181 Multiplier ID 267% $15,158,073 Warranted Price of Land $0 100% $720,000 Site Not Attributable to Dwelling Use $0 100% $0 Parking Spaces $0 100% $0 Maximum Mortgage based on Statutory Limits $15,878,073 Mortgage Amount (Lesser of above calculations) $6,914,731 $0 Rounding $6,914,000 MORTGAGE PAYMENT CALCULATION Amount Term (yrs) Rate Pymt w/o MIP MIP Total Debt Service $6,914, % $31, $3, $34, Annual Debt Service on HUD Gtyd Mortgage $372,993 $417, Surplus $88,440 $0.22 WORKING CAPITAL REQUIREMENT Current Working Capital None 4% of Mortgage Amount (from above) $276,560 Working Capital Required $276,560 Initial Operating Deficit $208,967

20 Cash at Closing $966,416 IOD and Working Capital Reimbursement Net Cash Invested $723,652 NOI at 93% Occupied $506,375 Debt Service $417,934 Net Cash Flow $88,440 NOI at 95% Occupied $524,804 Debt Service $417,934 Net Cash Flow $106,870 ROI Cash Flow Analysis Letter of Credit $0 Cash Invested $ 966,416 Subtotal $966,416 Reimbursement of WC & IOD (50%) $242,764 Net Cash Invested $723,652 Net Cash Flow $106,870 ROI (including land) 15% $242,764 Assumes 50% Returned