LIHTC Advisors. Wentworth Apartments EXCLUSIVE OFFERING. 24 Units 96 East Hayden Avenue Evanston, WY 82930

Transcription

1 LIHTC Advisors Wentworth Apartments 24 Units 96 East Hayden Avenue Evanston, WY EXCLUSIVE OFFERING

2 LIHTC Advisors W. Explorer Drive Suite 200 Boise, ID CONFIDENTIALITY & DISCLAIMER Jordan Skyles (phone) (direct) (fax) John Nicolas (phone) (direct) (fax) The information contained in this package is confidential and is intended for review solely by the person receiving it directly from LIHTC Advisors. It should not be copied, distributed, nor made available to any person without the written consent from LIHTC Advisors. The information in this package has been obtained from sources we believe reliable. However, LIHTC Advisors has not verified and will not verify, any of the information contained herein and makes no guarantee, warranty, or representation about it. It is the sole responsibility of any interested parties to independently confirm the accuracy and completeness of the information provided herein. All prospective clients must conduct their own due diligence and take appropriate measures to verify all information. Jeff Irish (phone) (direct) (fax) In Cooperation with: Greg Thomas WY Broker of Record Thomas & Moorehead (cell) 2 LIHTC ADVISORS WENTWORTH 24 UNITS

3 Wentworth Apartments 24 Units 96 East Hayden Ave Evanston, WY Table of Contents PROPERTY OVERVIEW Description Area Highlights Summary Area Maps FINANCIAL ANALYSIS Executive Summary Income & Expenses Cash Flow Summary Unit Mix Income & Rent Limits Historical AMI, MAX Rent, & FMR COMPARABLE PROPERTIES Rent Comparables Map Rental & Occupancy Statistics Rent Comparable Details DEMOGRAPHIC ANALYSIS Demographic Analysis 3 LIHTC ADVISORS WENTWORTH 24 UNITS

4 Property Overview HIGHLIGHTS Section 42 LIHTC Property Built & Placed into Service in Minutes to Evanston Airport and 5 Minutes to Interstate 80 Favorable WCDA HOME Financing that can be Assumed by New Buyer Within an Hour and a Half from Salt Lake City 4 LIHTC ADVISORS WENTWORTH 24 UNITS

5 Property Description Wentworth Apartments is a 24-unit apartment community located in Evanston, Wyoming. The property offers a mix of one, two, and three bedroom floor plans to income qualifying residents. Less than two hours away from Salt Lake City, UT, Wentworth represents an appealing opportunity to acquire a well maintained asset with potential for operational upside. Wentworth was built and placed in service in 2000 under the Section 42 Low- Income Housing Tax Credit program (LIHTC) and is out of its initial tax credit compliance period. There is an existing regulatory agreement in place which requires all units to be rented to income qualifying residents earning no more than income limits which are provided by Wyoming Community Development Authority (WCDA). Please see the Property summary page and Unit Mix page for further details. The qualified purchaser can be a non-profit or for-profit entity that agrees to maintain the affordable housing units and to fulfill all requirements of the regulatory agreement and any extended use periods. Residents benefit from a multitude of amenities including on-site leasing office, community room, playground, and garages. Unit amenities include full appliance package, walk-in closet, extra storage, and private patio/balcony. The owner pays water, sewer, and trash expenses. COMMUNITY AMENITIES Community Room On-Site Leasing Office Garages Playground UNIT AMENITIES Full Appliance Package Open Floor Plan Walk-In Closets Patio/ Balcony 5 LIHTC ADVISORS WENTWORTH 24 UNITS

6 Area Highlights Evanston is a growing community, and the surrounding areas are also expanding. Between 1990 and 2000, Evanston grew at a rate of 5.5%. Since 2000, it has had a population growth of 5.17%, while the county population is approximately 20,200. Evanston is the eighth largest city in Wyoming. Evanston is nestled in the Bear River Valley and framed to the south by the majestic High Uinta Mountains. Approximately one hour east of Salt Lake City, Utah on Interstate 80, Evanston enjoys an unparalleled quality of life. Compared to the rest of the country, the unemployment rate in Evanston is 5.50% compared to the U.S. average of 4.5%, as of March Wyoming is a land of wide-open spaces, breathtaking views, and has an abundance and diversity of wildlife found no where else. Evanston is home to an abundance of outdoor recreation including, hunting, fishing, camping, rafting, and hot springs. The Largest employment industries in Evanston are Educational, health and social services at 26%, Retail Trade at % and Agriculture, forestry, fishing and hunting, and mining at 11.87%. ECONOMY Recent job growth is Positive. Evanston jobs have Increased by 1.7% since January COST OF LIVING Evanston s cost of living is 3% lower than the Wyoming average and 7% lower than the national average. POPULATION Evanston s population is 12,090 people. REAL ESTATE The median home cost in Evanston is $173,000. Median rent is $678 a month. SOURCE: homefacts.com, areavibes.com NEIGHBORHOOD AMENITIES LOCATION HIGHLIGHTS TOP EMPLOYMENT INDUSTRIES Aspen Elementary School (1.3 miles) Horizon Jr/Sr High School (2.9 miles) Walmart (2.1 miles) Population: 12,090 Eighth Largest City in WY Located and hour and a half from Salt Lake City Education, Health, & Social Services Retail Trade Agriculture, Forestry, Fishing, Hunting, & Mining 6 LIHTC ADVISORS WENTWORTH 24 UNITS

7 Property Summary NAME & LOCATION Property Name Wentworth Apartments Property Address 96 East Hayden Avenue Evanston, WY SECTION 42 LIHTC RESTRICTIONS Placed in Service 2000 End of Initial Compliance Period 12/31/2014 End of WCDA Compliance Period 12/31/2034 End of WCDA Extended Use Period 12/31/2049 End of HOME Affordability Period 12/31/2043 SITE INFORMATION Assessor s Parcel Number R Number of Units 24 Number of Buildings 4 (Including Office) Number of Stories 2 Rentable Square Feet 24,616 Year Built 2000 Lot Size 1.85 Acres Density Units/Acre Type of Ownership Fee Simple Landscaping Mature Trees, Shrubs & Grass Topography Relatively Flat UTILITIES Water City of Evanston Electric Rocky Mountain Power Gas Questar Gas CONSTRUCTION Exterior Vinyl Siding Roof Composite Shingle # OF UNITS RENTABLE SF PLACED IN SERVICE LOT SIZE 24 24, acres 7 LIHTC ADVISORS WENTWORTH 24 UNITS

8 Aerial Map 8 LIHTC ADVISORS WENTWORTH 24 UNITS

9 Local Map Wentworth Apartments A Aspen Cinemas (0.8 miles) B C Aspen Elementary School (1.3 miles) Uinta County Services (1.7 miles) K D Uinta Meadows Elementary School (2.3 miles) J E Horizon Jr/Sr High School (2.9 miles) F Smith s Grocery Store (2.7 miles) I G Overthrust Ball Fields (2.7 miles) H Evanston Middle School (2.2 miles) G H I Subway, Costa Vida, McDonald s, Arby s (2.0 miles) J K Walmart (2.1 miles) Post Office (2.5 miles) E F D C B A 9 LIHTC ADVISORS WENTWORTH 24 UNITS

10 Local Map Overthrust Ball Fields Horizon Jr/High School Uinta Elementary School Aspen Elementary School Aspen Cinemas WENTWORTH APARTMENTS 10 LIHTC ADVISORS WENTWORTH 24 UNITS

11 Regional Map Ogden, UT (78 miles) Salt Lake City, UT (83 miles) Provo, UT (100 miles) Rock Springs, WY (104 miles) 11 LIHTC ADVISORS WENTWORTH 24 UNITS

12 Financial Analysis LIST PRICE PRICE/UNIT PRICE/SF PROFORMA NOI PROFORMA NOI/UNIT PROFORMA CAP RATE $650,000 $27,083 $26.41 $52,965 $2, % 12 LIHTC ADVISORS WENTWORTH 24 UNITS

13 Executive Summary PROPERTY INFORMATION Name Wentworth Apartments Address 96 East Hayden Ave City, State, Zip Evanston, WY County Uinta County Year Built 2000 Placed In Service 2000 End of Initial Tax Credit Compliance Period End of WCDA Compliance Period December 31, 2014 December 31, 2034 End of WCDA Extended Use Period December 31, 2049 End of HOME Affordability Period December 31, 2043 Total Number of Units 24 Net Rentable Square Feet 24,616 SF FINANCIAL SUMMARY PRICING FIGURES - WITH DEBT ASSUMPTION High LIST PRICE $650,000 Price per Unit $27,083 Price per SF $26.41 PROFORMA 10-Year All Cash IRR%* 7.31% PROFORMA 10-Year Leveraged Cash IRR%* 16.52% Closing Cost $9,750 Capital Expense $24,000 Total Acquisition Cost $683,750 * IRR Analysis assumes 1.50% in Closing Costs, $1,000 per unit in Capital Expense, 8.00% exit cap, with a 6.00% cost of sale. 13 LIHTC ADVISORS WENTWORTH 24 UNITS

14 Executive Summary FINANCING PROPOSED NEW FINANCING Program Conventional Loan to Value % 80.00% Interest Rate 4.75% Amortization Period (Years) 30 Loan Amount $290,630 Annual Debt Service - P&I $18,193 DEBT ASSUMPTION Program WCDA HOME Original Loan Amount $375,000 Interest Rate 1.00% 1st Amortizing Payment Month Jun 2000 Maturity Date May 2040 Amortization Period (Years) 40 Assumed Loan Amount $229,370 *Analysis assumes New Financing with an assumption of the existing WDCA HOME loan. Total Acquisition Cost $683,750 Total New /Assumable Amount $520,000 Loan 1.00% $5,200 Down Payment $168,950 HOME Loan Debt Service $11,379 Total Year 1 Debt Service $29,571 Year 1 PROFORMA Debt Coverage Ratio 1.79 VITAL DATA PROFORMA CAP Rate 8.15% NOI $52,965 Year 1 Debt Service $29,571 Net Cash Flow After Debt Service $23,393 Cash on Cash % 13.85% 14 LIHTC ADVISORS WENTWORTH 24 UNITS

15 Income & Expenses OPERATIONAL ANALYSIS YE 2016 PER UNIT 2017 YTD REVENUE (JUNE) /YE 2016 EXPENSES PER UNIT PROFORMA PER UNIT INCOME Rent Income $129,753 $0.44 $119,954 $0.41 $127,261 $0.43 Subsidy Income $12,892 $0.04 $29,328 $0.10 $31,115 $0.11 Gain (Loss) to Lease 0.00% $0 $0 0.00% $0 $0 0.00% $0 $0 POTENTIAL RENTAL INCOME $142,645 $5,944 $149,282 $6,220 $158,376 $6,599 (1) % Increase over Prior Year 4.65% 6.09% Economic Loss Vacancy Loss 6.86% ($9,792) ($408) 3.78% ($5,638) ($235) 4.00% ($6,335) ($264) (2) Bad Debt 0.00% $0 $0 0.00% $0 $0 0.00% $0 $0 Concessions 0.11% ($150) ($6) 0.20% ($294) ($12) 0.00% $0 $0 Total Economic Loss 6.97% ($9,942) ($414) 3.97% ($5,932) ($247) 4.00% ($6,335) ($264) NET RENTAL INCOME $132,703 $5,529 $143,350 $5,973 $152,041 $6,335 Other Income Garage Rental $2,150 $90 $2,400 $100 $2,460 $103 Late Fee $680 $28 $2,520 $105 $2,583 $108 Misc. Other Income $3,080 $128 $1,484 $62 $1,521 $63 Total Other Income $5,910 $246 $6,404 $267 $6,564 $274 EFFECTIVE GROSS INCOME $138,613 $5,776 $149,754 $6,240 $158,605 $6,609 EXPENSES FIXED OPERATIONAL EXPENSE Total Real Estate Property Taxes 2% $3,078 $128 2% $3,078 $128 2% $3,570 $149 (3) Total Property Insurance Expense 3% $3,521 $147 2% $3,521 $147 2% $3,609 $150 Total Property Utility Expense 11% $15,675 $653 10% $15,675 $653 10% $16,067 $669 TOTAL FIXED OPERATIONAL EXP 16% $22,274 $928 15% $22,274 $928 15% $23,246 $969 VARIABLE OPERATIONAL EXPENSE Total Maint. Contract Services 2% $3,080 $128 2% $3,080 $128 2% $3,157 $132 Total Repairs & Maintenance 24% $33,316 $1,388 22% $33,316 $1,388 12% $19,200 $800 (4) Total Administrative Expenses 6% $8,769 $365 6% $8,769 $365 4% $6,528 $272 (5) Total Leasing & Marketing 1% $715 $30 0% $715 $30 0% $733 $31 Total Payroll and Salary Expenses 25% $35,181 $1,466 23% $35,181 $1,466 23% $36,061 $1,503 Property Management Fee 6.21% $8,608 $ % $8,608 $ % $9,516 $397 TOTAL VARIABLE OPERATIONAL EXP 65% $89,669 $3,736 60% $89,669 $3,736 47% $75,195 $3,133 TOTAL FIXED & VARIABLE EXPENSES 81% $111,943 $4,664 75% $111,943 $4,664 62% $98,441 $4,102 Reserves & Replacements $7,200 $300 $7,200 $300 $7,200 $300 TOTAL OPERATING EXPENSES 86% $119,143 $4,964 80% $119,143 $4,964 67% $105,641 $4,402 NET OPERATING INCOME $19,470 $811 $30,611 $1,275 $52,965 $2, LIHTC ADVISORS WENTWORTH 24 UNITS

16 Comments to Income & Expenses NOTES TO PROFORMA (1) Potential Rental Income: Rents from 7/1/2017 Rent Roll annualized. Unit B202 has been been occupied by the maintenance staff in the past but was now approved to rent at the 45% Set-Aside level and the Manager is currently seeking applicants. (2) (3) (4) (5) Vacancy: Analysis uses a 4.0% vacancy factor going forward. Real Estate Taxes: See notes below. Repairs & Maintenance: Analysis assumes a reduction based on expenses observed at comparable LIHTC Properties. Administrative: Proforma assumes that the cost of an audit will no longer be required after a sale. REAL ESTATE TAX ANALYSIS Parcel #: Proforma Sale Price Reassess To Total Market Value $446,324 $552,500 $650, % Exemptions $0 $0 Value after Exemptions $446,324 $552,500 Assessment Ratio 9.50% 9.50% Assessed Value $42,401 $52,488 Tax Rate 6.801% 6.801% Ad Valorem Taxes $2,884 $3,570 Sales Tax Credit $0 $0 Total Taxes Due $2,884 $3,570 Notes The Income Approach is currently being used to evaluate the property. Analysis estimates taxes by reassessing to 85% of the List Price and applying the mill rate seen in LIHTC ADVISORS WENTWORTH 24 UNITS

17 Cash Flow PROPERTY CASH FLOW ANALYSIS - ASSUMPTIONS YEAR 1 OPERATIONS BASED ON Proforma Gross Potential Rent Growth NA 1.00% 1.00% 1.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Other Income Growth NA 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% Loss to Lease 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Vacancy 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% Bad Debt 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Concessions 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Property Taxes NA 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Insurance NA 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% Utilities NA 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% Property Management Fee 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% Other Expenses NA 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% Replacement Reserves NA 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% CASH FLOW SUMMARY Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 INCOME Rent Income $158,376 $159,960 $161,559 $163,175 $166,438 $169,767 $173,163 $176,626 $180,158 $183,761 Gain (Loss) to Lease $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 POTENTIAL RENTAL INCOME $158,376 $159,960 $161,559 $163,175 $166,438 $169,767 $173,163 $176,626 $180,158 $183,761 Economic Operational Loss Vacancy Loss ($6,335) ($6,398) ($6,462) ($6,527) ($6,658) ($6,791) ($6,927) ($7,065) ($7,206) ($7,350) Bad Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Concessions $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Operational Loss ($6,335) ($6,398) ($6,462) ($6,527) ($6,658) ($6,791) ($6,927) ($7,065) ($7,206) ($7,350) NET RENTAL INCOME $152,041 $153,561 $155,097 $156,648 $159,781 $162,977 $166,236 $169,561 $172,952 $176,411 Total Other Income $6,564 $6,728 $6,896 $7,069 $7,246 $7,427 $7,612 $7,803 $7,998 $8,198 EFFECTIVE GROSS INCOME $158,605 $160,290 $161,993 $163,717 $167,026 $170,403 $173,848 $177,363 $180,950 $184,609 OPERATIONAL EXPENSES FIXED OPERATIONAL EXPENSE Total Real Estate Property Taxes $3,570 $3,677 $3,787 $3,901 $4,018 $4,138 $4,262 $4,390 $4,522 $4,658 Total Property Insurance Expense $3,609 $3,699 $3,792 $3,887 $3,984 $4,083 $4,185 $4,290 $4,397 $4,507 Total Property Utility Expense $16,067 $16,469 $16,880 $17,302 $17,735 $18,178 $18,633 $19,098 $19,576 $20,065 TOTAL FIXED OPERATIONAL EXP $23,246 $23,845 $24,459 $25,089 $25,736 $26,400 $27,080 $27,779 $28,495 $29,230 VARIABLE OPERATIONAL EXPENSE Total Maint. Contract Services $3,157 $3,236 $3,317 $3,400 $3,485 $3,572 $3,661 $3,753 $3,846 $3,943 Total Repairs & Maintenance $19,200 $19,680 $20,172 $20,676 $21,193 $21,723 $22,266 $22,823 $23,393 $23,978 Total Administrative Expenses $6,528 $6,691 $6,859 $7,030 $7,206 $7,386 $7,571 $7,760 $7,954 $8,153 Total Leasing & Marketing $733 $751 $770 $789 $809 $829 $850 $871 $893 $915 Total Payroll and Salary Expenses $36,061 $36,962 $37,886 $38,833 $39,804 $40,799 $41,819 $42,865 $43,936 $45,035 Property Management Fee $9,516 $9,617 $9,720 $9,823 $10,022 $10,224 $10,431 $10,642 $10,857 $11,077 TOTAL VARIABLE OPERATIONAL EXP $75,195 $76,938 $78,723 $80,552 $82,518 $84,534 $86,598 $88,713 $90,880 $93,100 TOTAL FIXED & VARIABLE EXPENSE $98,441 $100,783 $103,182 $105,641 $108,255 $110,933 $113,678 $116,492 $119,375 $122,330 Replacement Reserves $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 TOTAL OPERATING EXPENSES $105,641 $107,983 $110,382 $112,841 $115,455 $118,133 $120,878 $123,692 $126,575 $129,530 PROPERTY NET OPERATING INCOME $52,965 $52,307 $51,611 $50,876 $51,572 $52,270 $52,970 $53,672 $54,375 $55,078 1ST MTG DEBT SERVICE EXPENSES New Debt-First Mortgage $18,193 $18,193 $18,193 $18,193 $18,193 $18,193 $18,193 $18,193 $18,193 $18,193 WCDA HOME Assumed Loan $11,379 $11,379 $11,379 $11,379 $11,379 $11,379 $11,379 $11,379 $11,379 $11,379 TOTAL 1ST MTG DEBT SERVICE $29,571 $29,571 $29,571 $29,571 $29,571 $29,571 $29,571 $29,571 $29,571 $29,571 CASH FLOW AFTER DEBT SERVICE $23,393 $22,736 $22,040 $21,304 $22,000 $22,699 $23,399 $24,100 $24,803 $25,507 DEBT SERVICE COVERAGE RATIO INDICATED CAPITALIZATION RATE 8.15% 8.05% 7.94% 7.83% 7.93% 8.04% 8.15% 8.26% 8.37% 8.47% 17 LIHTC ADVISORS WENTWORTH 24 UNITS

18 Unit Mix UNIT TYPE SET-ASIDE NUMBER OF UNITS UNIT SIZE (RSF) ASKING RENT ASKING RENT PSF MAX TC RENT CURRENT UA MAX NET TC RENT 1 BR 1 BTH 40% $481 $0.64 $575 $94 $481 1 BR 1 BTH 45% $553 $0.74 $647 $94 $553 1 BD UNIT TOTAL 4 2,984 $2,068 $2,444 $2,068 1 BD UNIT AVERAGE 746 $517 $0.69 $611 $517 2 BR 1 BTH 35% $495 $0.52 $604 $109 $495 2 BR 1 BTH 40% HOME $460 $0.49 $569 $109 $460 2 BR 1 BTH 45% $640 $0.68 $777 $109 $668 2 BD UNIT TOTAL 12 11,376 $6,635 $8,111 $6,803 2 BD UNIT AVERAGE 948 $553 $0.58 $676 $567 3 BD 2 BTH 35% 1 1,282 $575 $0.45 $698 $123 $575 3 BD 2 BTH 40% HOME 4 1,282 $505 $0.39 $628 $123 $505 3 BD 2 BTH 45% 3 1,282 $715 $0.56 $897 $123 $774 3 BD UNIT TOTAL 8 10,256 $4,740 $5,901 $4,917 3 BD UNIT AVERAGE 1,282 $593 $0.46 $738 $615 TOTAL 24 24,616 $13,443 $16,456 $13,788 AVERAGE 1,026 $560 $0.55 $686 $ LIHTC ADVISORS WENTWORTH 24 UNITS

19 Uinta County Effective Year: 2017 Area Median Income: $66,300 Wentworth Apartments is a Section 42 LIHTC property which means that federal tax credits were given to help finance the property. The property currently is required to hold the maximum rent charged at or below a level considered appropriate for the households that have incomes at or below 35%, 40%, and 45% of the local Area Median Income (AMI) for the county. Tax Credit Property Income Limits INCOME 35% 40% 45% 1 Person $18,795 $21,480 $24,165 2 Person $21,490 $24,560 $27,630 3 Person $24,185 $27,640 $31,095 4 Person $26,845 $30,680 $34,515 5 Person $29,015 $33,160 $37,305 6 Person $31,150 $35,600 $40,050 7 Person $33,320 $38,080 $42,840 Tax Credit Maximum Allowable Rents Set Aside Unit Type # of Units Max Rent UA Max Net Rent 40% 1 BD 2 $575 $94 $481 45% 1 BD 2 $647 $94 $553 35% 2 BD 1 $604 $109 $495 40% HOME 2 BD 5 $569 $109 $460 45% 2 BD 6 $777 $109 $668 35% 3 BD 1 $698 $123 $575 40% HOME 3 BD 4 $628 $123 $505 45% 3 BD 3 $897 $123 $774 Asking Rents to Net Max Tax Credit Rents Unit Breakdown By Unit Type $640 $620 $615 39% 15% $600 $580 $560 $553 $567 $593 46% $540 $520 $500 $517 $517 $480 1 BD 2 BD 3 BD $460 1 BD 2 BD 3 BD Asking Rent Net Max Rent 19 LIHTC ADVISORS WENTWORTH 24 UNITS

20 AMI Growth Rate Year AMI % Change 2012 $68, $73, % 2014 $75, % 2015 $76, % 2016 $75,000 (2.22%) 2017 $66,300 (11.60%) 3 Yr Avg (4.21%) 5 Yr Avg (0.57%) $78,000 $76,000 $74,000 $72,000 $70,000 $68,000 $66,000 $64,000 $62,000 $60, *The high watermark year is 2015 at $76,700 Max Allowable LIHTC Rent Growth- 2BD/ 60% Year Rent % Change 2012 $ $ % 2014 $1, % 2015 $1, % 2016 $1, % 2017 $1, % 3 Yr Avg 0.39% 5 Yr Avg 1.40% $1,060 $1,040 $1,020 $1,000 $980 $960 $940 $ SOURCE: novoco.com 20 LIHTC ADVISORS WENTWORTH 24 UNITS

21 FMR Averages Year FMR Avg. % Change 2012 $ $ % 2014 $883 (3.81%) 2015 $ % 2016 $ % 2017 $914 (5.25%) 3 Yr Avg 1.30% 5 Yr Avg 3.66% $1,170 $1,070 $970 $870 $770 $670 $ Fair Market Rents Year 2BD 3BD 4BD 2012 $584 $798 $ $677 $947 $1, $651 $911 $1, $660 $923 $1, $711 $965 $1, $713 $958 $1,070 SOURCE: novoco.com 21 LIHTC ADVISORS WENTWORTH 24 UNITS

22 Rent Comparables WENTWORTH OCCUPANCY COMPS AVERAGE OCCUPANCY WENTWORTH RENT/SF COMPS AVERAGE RENT/SF 92% 89% $0.55 $ LIHTC ADVISORS WENTWORTH 24 UNITS

23 Rent Comparables Map D B A C Wentworth Apts. C South Valley Apts. A Rocky Point Apts. D Classic Lodge Apts. B Dewal Apts. 23 LIHTC ADVISORS WENTWORTH 24 UNITS

24 Occupancy & Rent per SF Occupancy- 89% Average 95% 90% 85% 80% 75% 70% 65% * A B C D Rent Per SF- $0.93 Average $1.10 $1.00 $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 * A B C D Wentworth Apts. C South Valley Apts. A Rocky Point Apts. D Classic Lodge Apts. B Dewal Apts. 24 LIHTC ADVISORS WENTWORTH 24 UNITS

25 Rent Comparables WENTWORTH 24 UNITS OCCUPANCY: 92% YEAR BUILT: East Hayden Avenue Evanston, WY Unit Type # of Units Rent SF Rent Per SF 1BD 1BTH- 40% 2 $ $0.64 1BD 1BTH- 45% 2 $ $0.74 2BD 1BTH- 35% 1 $ $0.52 2BD 1BTH- 40% HOME 5 $ $0.49 2BD 1BTH- 45% 6 $ $0.68 3BD 2BTH- 35% 1 $575 1,282 $0.45 3BD 2BTH- 40% HOME 4 $505 1,282 $0.39 3BD 2BTH- 45% 3 $715 1,282 $0.56 TOTALS/AVG. 24 $560 1,026 $0.55 A ROCKY POINT 23 UNITS OCCUPANCY: 96% YEAR BUILT: 1982 REHABBED: 2010 Unit Type # of Units Rent SF Rent Per SF 1BD 1BTH 4 $ $1.11 2BD 1BTH 17 $ $0.99 3BD 1BTH 2 $ $0.90 TOTALS/AVG. 23 $ $0.99 *LIHTC Property with 60% Units 215 Feather Way Evanston, WY Distance to Subject: 4.3 miles 25 LIHTC ADVISORS WENTWORTH 24 UNITS

26 Rent Comparables B DEWAL 24 UNITS OCCUPANCY: 97% YEAR BUILT: 1997 Unit Type # of Units Rent SF Rent Per SF 1BD 1BTH 12 $ $1.00 2BD 1BTH 12 $ $0.98 TOTALS/AVG. 24 $ $0.99 *LIHTC Property with 60% Units 550 Cheyenne Drive Evanston, WY Distance to Subject: 2.0 miles C SOUTH VALLEY 120 UNITS OCCUPANCY: 91% YEAR BUILT: 1980 Unit Type # of Units Rent SF Rent Per SF 1BD 1BTH 5 $ $0.62 2BD 1BTH 114 $ $0.57 3BD 1BTH 1 $655 1,050 $0.62 TOTALS/AVG. 120 $ $ South Valley Drive Evanston, WY Distance to Subject: 0.2 miles 26 LIHTC ADVISORS WENTWORTH 24 UNITS

27 Rent Comparables D CLASSIC LODGE 122 UNITS OCCUPANCY: 70% YEAR BUILT: 1982 Unit Type # of Units Rent SF Rent Per SF STUDIO 97 $ $1.39 1BD 1BTH 14 $ $0.97 2BD 1BTH 11 $800 1,080 $0.74 TOTALS/AVG. 122 $ $ Bear River Drive Evanston, WY Distance to Subject: 3.0 miles 27 LIHTC ADVISORS WENTWORTH 24 UNITS

28 Demographics EVANSTON MEDIAN HOME COST EVANSTON MEDIAN RENT EVANSTON UNEMPLOYMENT RATE $173,000 $ % (5/2017) EVANSTON JOB GROWTH 1.7% (since 1/2017) SOURCE: homefacts.com, areavibes.com 28 LIHTC ADVISORS WENTWORTH 24 UNITS

29 Demographic Analysis POPULATION 1 MILE 3 MILES 5 MILES 2017 Estimated Population 2,850 11,507 12,864 Population Growth % 0.22% 0.41% HOUSEHOLDS 2017 Estimated Households 993 4,256 4,753 Household Growth % 0.64% 0.83% INCOME 2017 Household Income: Average $82,017 $70,510 $69, Household Income: Median $60,469 $54,115 $53,618 HOUSEHOLD INCOME LEVELS BY POPULATION 1,400 1,200 1, Under $25,000 $25,000- $50,000 $50,000- $75,000 $75,000- $100,000 $100,000- $125,000 $125,000- $150,000 $150,000- $200,000 $200,000+ OWNER 70% RENTER 30% OCCUPIED 87% VACANT 13% SOURCE: CoStar 29 LIHTC ADVISORS WENTWORTH 24 UNITS

30 LIHTC Advisors