, Downtown Des Moines in the Marina District, on-site parking, secure building, tons of amenities, close 200th Link. Walking distance to all major services, restaurants, Waterfront Beach Park, Des Moines Marina. Several studios, 1 bedrooms and 1 bedrooms w/den and several two bedrooms, outdoor courtyard with hot tub. Sky Lounge on the Penthouse with big screen T.V., lounge, water features, huge roof-top terrace & even open grass area. Chad@REISinvest.com John T Lewis Director of Development 253.678.1031 John@REISinvest.com 1100 Dexter Ave N #100 Seattle, WA 98109 (253) 228-0444 (p) (253) 759-8033 (f)
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Property Description Marina 87 multifamily Welcome to the NEXT up-coming Waterfront Community! AmmGen Development Group L.L.C. (AmmGen) owns a site in downtown Des Moines a block and a half up from the Des Moines Marina, Beach Park & Beach Park Events Center. AmmGen has reviewed the site for development of an 87 unit apartment building with 2,500 square feet in retail. The current plan is to build a high-end five floor wood-frame apartment building, over a concrete parking garage. The units themselves will have higher-end counters, fixtures and the top two floors facing west have sweeping marine views. Floor two contains a 2,710 square foot open courtyard facing west containing hot tub, trellis covered garden area and bar for special occasions. The fifth floor has a Sky Lounge with large screen T.V., lounge area, wi-fi and a large deck looking out over the water (410 square feet). From the Sky Lounge, one may take a spiral staircase up to the rooftop terrace. Which some consider the highlight of the Marina Club. With a 15,000 square foot area dedicated to enjoying the great outdoors with lush planters, lounge areas,indoor hot tub & sauna, cabana's, outdoor kitchen and barbecue area. The Marina Club is the tallest building in the area so all tenants will have territorial views. The lot itself is 23,520 square feet. (ALTA survey available). The zoning (DC) allows building up to a height of 55 feet on sites over 20,000 square feet in a narrow four block area within the Marina District. All utilities are to the site. The site is relatively level, sloping slightly towards the marina to the West from 7th Ave. to the alley behind (3 foot drop). The parking spaces total 88. Full floor parking in basement and two thirds of the floor at 7th Ave. level behind the retail and office. Set up a tour to view your own private club. page 3 of 68
Property Photos Des Moines 2016, 2017 projects & attractions! Des Moines Marina District & Waterfront! Marina 2015 4th of July fireworks show on pier! Des Moines FAA Headquarters rendering. The Sounder 200th St. Link Extension rendering. Waterfront Farmers Market & Car Show! Waterfront Beach Park & Event Center! Waterfront Wedding Receptions available! page 4 of 68
Aerial Map page 5 of 68
Location Map page 6 of 68
Maps and Aerials Highlighted Site Map Topography Map page 7 of 68
Maps and Aerials USGS Topgraphy Map page 8 of 68
Regional Map page 9 of 68
Executive Summary ACQUISITION COSTS Purchase Price, Points and Closing Costs $28,913,319 Investment - Cash $13,068,319 First Loan $15,895,000 INVESTMENT INFORMATION Purchase Price $28,709,369 Price per Unit $329,993 Price per Sq. Ft. $416.08 Income per Unit $27,147 Expenses per Unit ($9,443) INCOME, EXPENSES & CASH FLOW Gross Scheduled Income $2,361,780 Total Vacancy and Credits ($104,745) Operating Expenses ($821,567) Net Operating Income $1,435,468 Debt Service ($966,452) Cash Flow Before Taxes $469,017 FINANCIAL INDICATORS Cash on Cash Return Before Taxes 3.59% Debt Coverage Ratio 1.49 Capitalization Rate 5.00% Gross Rent Multiplier 12.16 Gross Income / Square Feet $34.23 Gross Expenses / Square Feet ($11.91) Operating Expense Ratio 36.40% page 10 of 68
Resale Report NET PROCEEDS FROM SALE Adjusted Basis Basis At Acquisition $28,754,369 -Depreciation $19,951,745 Adjusted Basis at Sale $8,802,624 Capital Gain Sale Price $58,403,879 -Sale Expenses ($1,168,078) -Adjusted Basis at Sale $8,802,624 Gain or (Loss) $48,433,177 -Depreciation (limited to gain) $19,951,745 Capital Gain from Appreciation $28,481,432 Ordinary Taxable Income Unamortized Loan Costs/Fees ($52,983) Interest Earned on Capital Reserves $11,010 Sales Proceeds After Tax Sale Price $58,403,879 -Sale Expenses $1,168,078 -Mortgage Balance $7,771,021 +Balance of Capital Reserves $61,010 +Balance of Replacement Reserves $1,000,000 Sale Proceeds Before Tax $50,525,789 -Tax On Depreciation $4,987,936 -Tax On Capital Gain Sale Proceeds After Tax $45,537,853 page 11 of 68
Unit Mix Report UNIT MIXES Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly 4 (studio) small 435 $1,065 $4,260 $1,065 $4,260 24 (studio) medium 450 $1,147 $27,528 $1,139 $27,324 4 (studio) large 465 $1,185 $4,740 $1,186 $4,744 4 (1 bd) small 600 $1,530 $6,120 $1,357 $5,428 2 (1 bd) medium 610 $1,555 $3,110 $1,452 $2,904 8 (1 bd) large 635 $1,619 $12,954 $1,524 $12,192 2 (1 bd) extra large 645 $1,645 $3,290 $1,555 $3,110 1 (1 bd) max 750 $1,913 $1,913 $1,400 $1,400 8 (1 bd + den) small 800 $2,040 $16,320 $1,760 $14,080 4 (1 bd + den) 810 $1,985 $7,940 $1,985 $7,940 4 (1 bd + den) large 825 $2,065 $8,260 $2,005 $8,020 2 (1 bd + den) larger 875 $2,231 $4,463 $2,109 $4,218 3 (1 bd + den) super 880 $2,244 $6,732 $2,288 $6,864 4 (1 bd+ den) 900 $2,295 $9,180 $2,196 $8,784 4 (2 bd) small 1015 $2,588 $10,353 $2,132 $8,528 8 (2 bd) medium 1105 $2,817 $22,536 $2,486 $19,888 1 (2 bd) large 1035 $2,639 $2,639 $2,070 $2,070 87 60,005 $152,337 $141,754 UNIT MIX UNIT MIX SQUARE FEET UNIT MIX INCOME (studio) small (studio) medium (studio) large (1 bd) small (1 bd) medium (1 bd) large (1 bd) extra large (1 bd) max (1 bd + den) small (1 bd + den) medium (1 bd + den) large (1 bd + den) larger (studio) small (studio) medium (studio) large (1 bd) small (1 bd) medium (1 bd) large (1 bd) extra large (1 bd) max (1 bd + den) small (1 bd + den) medium UNIT MIX MARKET INCOME (1 bd + den) large (1 bd + den) larger (1 bd + den) super large (1 (studio) bd+ den) small maxipad (2 (studio) bd) small medium (2 (studio) bd) medium large (2 (1 bd) large small (1 bd + den) super large (1 (studio) bd+ den) small maxipad (2 (studio) bd) small medium (2 (studio) bd) medium large (2 (1 bd) large small (1 bd) medium (1 bd) medium (1 bd) large page 12 of 68 (1 bd) large
Internal Rate of Return Analysis BEFORE TAX IRR Time Future Cash Flows Initial Investment ($13,068,319) End of Year 1 $469,017 End of Year 11 $1,140,221 End of Year 2 $526,981 End of Year 12 $1,219,723 End of Year 3 $586,818 End of Year 13 $1,301,758 End of Year 4 $648,585 End of Year 14 $1,386,404 End of Year 5 $712,342 End of Year 15 $1,473,740 End of Year 6 $778,150 End of Year 16 $1,563,849 End of Year 7 $846,072 End of Year 17 $1,656,815 End of Year 8 $916,172 End of Year 18 $1,752,725 End of Year 9 $988,517 End of Year 19 $1,851,670 End of Year 10 $1,063,177 End of Year 20* $52,479,532 IRR = 11.19% * ($1,953,742 + $50,525,789) AFTER TAX IRR Time Future Cash Flows Initial Investment ($13,068,319) End of Year 1 $469,017 End of Year 11 $1,140,221 End of Year 2 $526,981 End of Year 12 $1,219,723 End of Year 3 $586,818 End of Year 13 $1,301,758 End of Year 4 $648,585 End of Year 14 $1,386,404 End of Year 5 $712,342 End of Year 15 $1,473,740 End of Year 6 $778,150 End of Year 16 $1,563,849 End of Year 7 $846,072 End of Year 17 $1,656,815 End of Year 8 $916,172 End of Year 18 $1,752,725 End of Year 9 $988,517 End of Year 19 $1,851,670 End of Year 10 $1,063,177 End of Year 20* $47,491,595 IRR = 10.82% * ($1,953,742 + $45,537,853) page 13 of 68
Pro Forma Income/Expense INCOME Actual Per Unit Market Per Unit Gross Potential Rent $1,828,041 $21,012 $1,701,048 $19,552 Less: Vacancy ($104,745) ($1,204) $0 $0 Misc. Income $266,880 $3,068 $1,404,288 $16,141 Effective Gross Income $1,990,176 $22,876 $3,105,336 $35,694 OPERATING EXPENSES Actual Per Unit Market Per Unit Property Management Fee $101,567 $1,167 $0 $0 Replacement Reserves $50,000 $575 $0 $0 Management Fees $0 $0 $89,000 $1,023 Total Expenses ($151,567) ($1,742) ($89,000) ($1,023) Net Operating Income $1,838,609 $21,133 $3,016,336 $34,671 page 14 of 68
Pro Forma Income/Expense UNIT MIX & ANNUAL SCHEDULED INCOME Type Units Actual Total Market Total TOTALS 87 $1,828,041 $1,701,048 INVESTMENT SUMMARY Price: $28,709,369 Year Built: 2016 Units: 87 Price/Unit: $329,993 RSF: 69,000 Price/RSF: $416.08 ANNUALIZED INCOME Actual Market Gross Potential Rent $1,828,041 $1,701,048 Less: Vacancy ($104,745) $0 Misc. Income $266,880 $1,404,288 Effective Gross Income $1,990,176 $3,105,336 Less: Expenses ($151,567) ($89,000) Net Operating Income $1,838,609 $3,016,336 Debt Service ($966,452) ($966,452) Net Cash Flow after Debt Service $872,158 $2,049,884 Principal Reduction $256,422 $256,422 Total Return $1,128,580 $2,306,307 Lot Size: 23,520 sf Floors: 6 Parking Spaces: 1.001-1 Cap Rate: 6.4% Market Cap Rate: 10.51% GRM: 13.7 Market GRM: 9.25 FINANCING SUMMARY Loan Amount: $15,895,000 ANNUALIZED EXPENSES Actual Market Property Management Fee $101,567 $0 Replacement Reserves $50,000 $0 Management Fees $0 $89,000 Total Expenses $151,567 $89,000 Expenses Per RSF $2.20 $1.29 Expenses Per Unit $1,742 $1,023 Down Payment: $12,814,369 Loan Type: Fixed Interest Rate: 4.5% Term: 30 years Monthly Payment: $80,538 DCR: 1.9 page 15 of 68
Cash Flow Analysis Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 GROSS SCHEDULED INCOME $2,361,780 $2,432,633 $2,505,612 $2,580,781 $2,658,204 $2,737,950 $2,820,089 $2,904,691 $2,991,832 $3,081,587 Turnover Vacancy ($104,745) ($107,887) ($111,124) ($114,458) ($117,891) ($121,428) ($125,071) ($128,823) ($132,688) ($136,668) Total Operating Expenses ($821,567) ($831,314) ($841,219) ($851,286) ($861,519) ($871,920) ($882,494) ($893,245) ($904,175) ($915,290) NET OPERATING INCOME $1,435,468 $1,493,432 $1,553,269 $1,615,037 $1,678,794 $1,744,602 $1,812,524 $1,882,624 $1,954,969 $2,029,628 Loan Payment ($966,452) ($966,452) ($966,452) ($966,452) ($966,452) ($966,452) ($966,452) ($966,452) ($966,452) ($966,452) NET CASH FLOW (b/t) $469,017 $526,981 $586,818 $648,585 $712,342 $778,150 $846,072 $916,172 $988,517 $1,063,177 Cash On Cash Return b/t 3.59% 4.03% 4.49% 4.96% 5.45% 5.95% 6.47% 7.01% 7.56% 8.14% Footnotes: b/t = before taxes;a/t = after taxes page 16 of 68
Cash Flow Analysis Description Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 GROSS SCHEDULED INCOME $3,174,035 $3,269,256 $3,367,334 $3,468,354 $3,572,404 $3,679,576 $3,789,964 $3,903,662 $4,020,772 $4,141,396 Turnover Vacancy ($140,769) ($144,992) ($149,341) ($153,822) ($158,436) ($163,189) ($168,085) ($173,128) ($178,321) ($183,671) Total Operating Expenses ($926,594) ($938,090) ($949,782) ($961,676) ($973,776) ($986,087) ($998,612) ($1,011,358) ($1,024,329) ($1,037,531) NET OPERATING INCOME $2,106,672 $2,186,175 $2,268,210 $2,352,856 $2,440,192 $2,530,300 $2,623,266 $2,719,177 $2,818,122 $2,920,194 Loan Payment ($966,452) ($966,452) ($966,452) ($966,452) ($966,452) ($966,452) ($966,452) ($966,452) ($966,452) ($966,452) NET CASH FLOW (b/t) $1,140,221 $1,219,723 $1,301,758 $1,386,404 $1,473,740 $1,563,849 $1,656,815 $1,752,725 $1,851,670 $1,953,742 Cash On Cash Return b/t 8.73% 9.33% 9.96% 10.61% 11.28% 11.97% 12.68% 13.41% 14.17% 14.95% Footnotes: b/t = before taxes;a/t = after taxes page 17 of 68
Financial Indicators Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Gross Rent Multiplier 12.16 12.28 12.40 12.52 12.63 12.74 12.85 12.96 13.07 13.17 Capitalization Rate 5.00% 5.20% 5.41% 5.63% 5.85% 6.08% 6.31% 6.56% 6.81% 7.07% Cash On Cash Return b/t 3.59% 4.03% 4.49% 4.96% 5.45% 5.95% 6.47% 7.01% 7.56% 8.14% Cash On Cash Return a/t 3.59% 4.03% 4.49% 4.96% 5.45% 5.95% 6.47% 7.01% 7.56% 8.14% Debt Coverage Ratio 1.49 1.55 1.61 1.67 1.74 1.81 1.88 1.95 2.02 2.10 Gross Income per Sq. Ft. $34.23 $35.26 $36.31 $37.40 $38.52 $39.68 $40.87 $42.10 $43.36 $44.66 Expenses per Sq. Ft. ($11.91) ($12.05) ($12.19) ($12.34) ($12.49) ($12.64) ($12.79) ($12.95) ($13.10) ($13.27) Net Income Multiplier 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 Operating Expense Ratio 36.40% 35.76% 35.13% 34.52% 33.91% 33.32% 32.75% 32.18% 31.62% 31.08% Loan To Value Ratio 54.47% 51.46% 48.57% 45.81% 43.15% 40.61% 38.16% 35.81% 33.54% 31.36% Footnotes: b/t = before taxes; a/t = after taxes page 18 of 68
Financial Indicators Description Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Gross Rent Multiplier 13.27 13.37 13.47 13.57 13.66 13.75 13.84 13.93 14.02 14.10 Capitalization Rate 7.34% 7.61% 7.90% 8.20% 8.50% 8.81% 9.14% 9.47% 9.82% 10.17% Cash On Cash Return b/t 8.73% 9.33% 9.96% 10.61% 11.28% 11.97% 12.68% 13.41% 14.17% 14.95% Cash On Cash Return a/t 8.73% 9.33% 9.96% 10.61% 11.28% 11.97% 12.68% 13.41% 14.17% 14.95% Debt Coverage Ratio 2.18 2.26 2.35 2.43 2.52 2.62 2.71 2.81 2.92 3.02 Gross Income per Sq. Ft. $46.00 $47.38 $48.80 $50.27 $51.77 $53.33 $54.93 $56.57 $58.27 $60.02 Expenses per Sq. Ft. ($13.43) ($13.60) ($13.76) ($13.94) ($14.11) ($14.29) ($14.47) ($14.66) ($14.85) ($15.04) Net Income Multiplier 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 Operating Expense Ratio 30.55% 30.03% 29.51% 29.01% 28.52% 28.04% 27.57% 27.11% 26.66% 26.22% Loan To Value Ratio 29.26% 27.24% 25.28% 23.39% 21.57% 19.81% 18.10% 16.45% 14.86% 13.31% Footnotes: b/t = before taxes; a/t = after taxes page 19 of 68
Cumulative Analysis Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Equity (appreciation) ($1) $1,159,281 $2,356,020 $3,591,369 $4,866,511 $6,182,670 $7,541,101 $8,943,103 $10,390,009 $11,883,196 Equity (loan reduction) $256,422 $524,625 $805,148 $1,098,559 $1,405,449 $1,726,438 $2,062,172 $2,413,330 $2,780,621 $3,164,784 CASH FLOW (a/t) $469,017 $995,998 $1,582,816 $2,231,401 $2,943,743 $3,721,894 $4,567,966 $5,484,138 $6,472,655 $7,535,832 Totals - To Date $725,439 $2,679,903 $4,743,984 $6,921,329 $9,215,704 $11,631,001 $14,171,239 $16,840,571 $19,643,285 $22,583,813 Invested Capital ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ROIC - To Date 5.55% 20.51% 36.30% 52.96% 70.52% 89.00% 108.44% 128.87% 150.31% 172.81% Footnotes: a/t = after taxes; ROIC = Return On Invested Capital page 20 of 68
Cumulative Analysis Description Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Equity (appreciation) $13,424,081 $15,014,123 $16,654,827 $18,347,742 $20,094,464 $21,896,638 $23,755,958 $25,674,169 $27,653,069 $29,694,510 Equity (loan reduction) $3,566,596 $3,986,868 $4,426,446 $4,886,218 $5,367,113 $5,870,099 $6,396,193 $6,946,456 $7,521,997 $8,123,979 CASH FLOW (a/t) $8,676,053 $9,895,776 $11,197,534 $12,583,938 $14,057,678 $15,621,527 $17,278,342 $19,031,067 $20,882,738 $22,836,480 Totals - To Date $25,666,730 $28,896,767 $32,278,807 $35,817,899 $39,519,255 $43,388,265 $47,430,493 $51,651,692 $56,057,803 $60,654,968 Invested Capital ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ROIC - To Date 196.40% 221.12% 247.00% 274.08% 302.41% 332.01% 362.94% 395.24% 428.96% 464.14% Footnotes: a/t = after taxes; ROIC = Return On Invested Capital page 21 of 68
Detailed General Expenses Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total Expenses ($821,567) ($831,314) ($841,219) ($851,286) ($861,519) ($871,920) ($882,494) ($893,245) ($904,175) ($915,290) Property Management Fee ($101,567) ($104,614) ($107,752) ($110,985) ($114,314) ($117,743) ($121,276) ($124,914) ($128,661) ($132,521) Replacement Reserves ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) Speed Analysis Expenses ($670,000) ($676,700) ($683,467) ($690,302) ($697,205) ($704,177) ($711,219) ($718,331) ($725,514) ($732,769) page 22 of 68
Detailed General Expenses Description Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Total Expenses ($926,594) ($938,090) ($949,782) ($961,676) ($973,776) ($986,087) ($998,612) ($1,011,358) ($1,024,329) ($1,037,531) Property Management Fee ($136,497) ($140,592) ($144,810) ($149,154) ($153,629) ($158,237) ($162,985) ($167,874) ($172,910) ($178,098) Replacement Reserves ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) Speed Analysis Expenses ($740,097) ($747,498) ($754,973) ($762,522) ($770,148) ($777,849) ($785,628) ($793,484) ($801,419) ($809,433) page 23 of 68
Annual Property Operating Data Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Rental Income $2,094,900 $2,157,747 $2,222,479 $2,289,154 $2,357,828 $2,428,563 $2,501,420 $2,576,463 $2,653,757 $2,733,369 commercial and sky lounge $126,720 $130,522 $134,437 $138,470 $142,624 $146,903 $151,310 $155,850 $160,525 $165,341 parking $89,760 $92,453 $95,226 $98,083 $101,026 $104,056 $107,178 $110,393 $113,705 $117,116 vending and AC rentals $18,960 $19,529 $20,115 $20,718 $21,340 $21,980 $22,639 $23,318 $24,018 $24,738 storage $23,340 $24,040 $24,761 $25,504 $26,269 $27,057 $27,869 $28,705 $29,566 $30,453 office rent reis sales and MGMT $8,100 $8,343 $8,593 $8,851 $9,117 $9,390 $9,672 $9,962 $10,261 $10,569 GROSS SCHEDULED INCOME $2,361,780 $2,432,633 $2,505,612 $2,580,781 $2,658,204 $2,737,950 $2,820,089 $2,904,691 $2,991,832 $3,081,587 Turnover Vacancy ($104,745) ($107,887) ($111,124) ($114,458) ($117,891) ($121,428) ($125,071) ($128,823) ($132,688) ($136,668) GROSS OPERATING INCOME $2,257,035 $2,324,746 $2,394,488 $2,466,323 $2,540,313 $2,616,522 $2,695,018 $2,775,868 $2,859,144 $2,944,919 Expenses Property Management Fee ($101,567) ($104,614) ($107,752) ($110,985) ($114,314) ($117,743) ($121,276) ($124,914) ($128,661) ($132,521) Replacement Reserves ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) Speed Analysis Expenses ($670,000) ($676,700) ($683,467) ($690,302) ($697,205) ($704,177) ($711,219) ($718,331) ($725,514) ($732,769) TOTAL OPERATING EXPENSES ($821,567) ($831,314) ($841,219) ($851,286) ($861,519) ($871,920) ($882,494) ($893,245) ($904,175) ($915,290) NET OPERATING INCOME $1,435,468 $1,493,432 $1,553,269 $1,615,037 $1,678,794 $1,744,602 $1,812,524 $1,882,624 $1,954,969 $2,029,628 page 24 of 68
Annual Property Operating Data Description Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Rental Income $2,815,370 $2,899,832 $2,986,826 $3,076,431 $3,168,724 $3,263,786 $3,361,700 $3,462,551 $3,566,427 $3,673,420 commercial and sky lounge $170,301 $175,410 $180,672 $186,093 $191,675 $197,426 $203,348 $209,449 $215,732 $222,204 parking $120,630 $124,249 $127,976 $131,816 $135,770 $139,843 $144,038 $148,360 $152,810 $157,395 vending and AC rentals $25,481 $26,245 $27,032 $27,843 $28,679 $29,539 $30,425 $31,338 $32,278 $33,246 storage $31,367 $32,308 $33,277 $34,276 $35,304 $36,363 $37,454 $38,577 $39,735 $40,927 office rent reis sales and MGMT $10,886 $11,212 $11,549 $11,895 $12,252 $12,620 $12,998 $13,388 $13,790 $14,203 GROSS SCHEDULED INCOME $3,174,035 $3,269,256 $3,367,334 $3,468,354 $3,572,404 $3,679,576 $3,789,964 $3,903,662 $4,020,772 $4,141,396 Turnover Vacancy ($140,769) ($144,992) ($149,341) ($153,822) ($158,436) ($163,189) ($168,085) ($173,128) ($178,321) ($183,671) GROSS OPERATING INCOME $3,033,266 $3,124,264 $3,217,992 $3,314,532 $3,413,968 $3,516,387 $3,621,879 $3,730,535 $3,842,451 $3,957,725 Expenses Property Management Fee ($136,497) ($140,592) ($144,810) ($149,154) ($153,629) ($158,237) ($162,985) ($167,874) ($172,910) ($178,098) Replacement Reserves ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) Speed Analysis Expenses ($740,097) ($747,498) ($754,973) ($762,522) ($770,148) ($777,849) ($785,628) ($793,484) ($801,419) ($809,433) TOTAL OPERATING EXPENSES ($926,594) ($938,090) ($949,782) ($961,676) ($973,776) ($986,087) ($998,612) ($1,011,358) ($1,024,329) ($1,037,531) NET OPERATING INCOME $2,106,672 $2,186,175 $2,268,210 $2,352,856 $2,440,192 $2,530,300 $2,623,266 $2,719,177 $2,818,122 $2,920,194 page 25 of 68
Loan Analysis Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 LOAN 1 Debt Service Analysis Principal Payments $256,422 $268,202 $280,524 $293,411 $306,890 $320,988 $335,735 $351,158 $367,290 $384,164 Interest Payments $710,029 $698,249 $685,928 $673,041 $659,562 $645,463 $630,717 $615,293 $599,161 $582,288 Total Debt Service $966,452 $966,452 $966,452 $966,452 $966,452 $966,452 $966,452 $966,452 $966,452 $966,452 Principal Balance Analysis Beginning Principal Balance $15,895,000 $15,638,578 $15,370,375 $15,089,852 $14,796,441 $14,489,551 $14,168,562 $13,832,828 $13,481,670 $13,114,379 Principal Reductions $256,422 $268,202 $280,524 $293,411 $306,890 $320,988 $335,735 $351,158 $367,290 $384,164 Ending Principal Balance $15,638,578 $15,370,375 $15,089,852 $14,796,441 $14,489,551 $14,168,562 $13,832,828 $13,481,670 $13,114,379 $12,730,216 page 26 of 68
Loan Analysis Description Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 LOAN 1 Debt Service Analysis Principal Payments $401,812 $420,271 $439,578 $459,773 $480,894 $502,987 $526,094 $550,262 $575,541 $601,982 Interest Payments $564,640 $546,180 $526,873 $506,679 $485,557 $463,465 $440,358 $416,189 $390,910 $364,470 Total Debt Service $966,452 $966,452 $966,452 $966,452 $966,452 $966,452 $966,452 $966,452 $966,452 $966,452 Principal Balance Analysis Beginning Principal Balance $12,730,216 $12,328,404 $11,908,132 $11,468,554 $11,008,782 $10,527,887 $10,024,901 $9,498,807 $8,948,544 $8,373,003 Principal Reductions $401,812 $420,271 $439,578 $459,773 $480,894 $502,987 $526,094 $550,262 $575,541 $601,982 Ending Principal Balance $12,328,404 $11,908,132 $11,468,554 $11,008,782 $10,527,887 $10,024,901 $9,498,807 $8,948,544 $8,373,003 $7,771,021 page 27 of 68
Cash In Cash Out Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Rental Income $2,094,900 $2,157,747 $2,222,479 $2,289,154 $2,357,828 $2,428,563 $2,501,420 $2,576,463 $2,653,757 $2,733,369 commercial and sky lounge $126,720 $130,522 $134,437 $138,470 $142,624 $146,903 $151,310 $155,850 $160,525 $165,341 parking $89,760 $92,453 $95,226 $98,083 $101,026 $104,056 $107,178 $110,393 $113,705 $117,116 vending and AC rentals $18,960 $19,529 $20,115 $20,718 $21,340 $21,980 $22,639 $23,318 $24,018 $24,738 storage $23,340 $24,040 $24,761 $25,504 $26,269 $27,057 $27,869 $28,705 $29,566 $30,453 office rent reis sales and MGMT $8,100 $8,343 $8,593 $8,851 $9,117 $9,390 $9,672 $9,962 $10,261 $10,569 GROSS SCHEDULED INCOME $2,361,780 $2,432,633 $2,505,612 $2,580,781 $2,658,204 $2,737,950 $2,820,089 $2,904,691 $2,991,832 $3,081,587 Turnover Vacancy ($104,745) ($107,887) ($111,124) ($114,458) ($117,891) ($121,428) ($125,071) ($128,823) ($132,688) ($136,668) GROSS OPERATING INCOME $2,257,035 $2,324,746 $2,394,488 $2,466,323 $2,540,313 $2,616,522 $2,695,018 $2,775,868 $2,859,144 $2,944,919 Expenses Property Management Fee ($101,567) ($104,614) ($107,752) ($110,985) ($114,314) ($117,743) ($121,276) ($124,914) ($128,661) ($132,521) Replacement Reserves ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) Speed Analysis Expenses ($670,000) ($676,700) ($683,467) ($690,302) ($697,205) ($704,177) ($711,219) ($718,331) ($725,514) ($732,769) TOTAL OPERATING EXPENSES ($821,567) ($831,314) ($841,219) ($851,286) ($861,519) ($871,920) ($882,494) ($893,245) ($904,175) ($915,290) NET OPERATING INCOME $1,435,468 $1,493,432 $1,553,269 $1,615,037 $1,678,794 $1,744,602 $1,812,524 $1,882,624 $1,954,969 $2,029,628 Debt Service Loan Interest ($710,029) ($698,249) ($685,928) ($673,041) ($659,562) ($645,463) ($630,717) ($615,293) ($599,161) ($582,288) Footnotes: Cash Flow IRR based upon net cash flow and principal payments page 28 of 68
Cash In Cash Out Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Principal Payments ($256,422) ($268,202) ($280,524) ($293,411) ($306,890) ($320,988) ($335,735) ($351,158) ($367,290) ($384,164) NET CASH FLOW (b/t) $469,017 $526,981 $586,818 $648,585 $712,342 $778,150 $846,072 $916,172 $988,517 $1,063,177 Cash Flow IRR N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Projected Property Value $28,709,369 $29,868,650 $31,065,389 $32,300,738 $33,575,880 $34,892,039 $36,250,470 $37,652,472 $39,099,378 $40,592,565 Resale Expenses ($574,187) ($597,373) ($621,308) ($646,015) ($671,518) ($697,841) ($725,009) ($753,049) ($781,988) ($811,851) Proceeds b/f Debt Payoff $28,135,181 $29,271,277 $30,444,081 $31,654,723 $32,904,363 $34,194,198 $35,525,461 $36,899,423 $38,317,391 $39,780,714 Loan Principal Balance ($15,638,578 ($15,370,375 ($15,089,852 ($14,796,441 ($14,489,551 ($14,168,562 ($13,832,828 ($13,481,670 ($13,114,379 ($12,730,216 Capital Reserves Remaining $50,500 $51,005 $51,515 $52,030 $52,551 $53,076 $53,607 $54,143 $54,684 $55,231 Replacement Reserves $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 Net Proceeds From Sale $12,597,104 $14,051,906 $15,555,745 $17,110,312 $18,717,362 $20,378,711 $22,096,240 $23,871,896 $25,707,696 $27,605,729 Net Resale IRR N/A 7.43% 9.77% 10.80% 11.31% 11.57% 11.70% 11.75% 11.76% 11.74% Footnotes: Cash Flow IRR based upon net cash flow and principal payments page 29 of 68
Cash In Cash Out Description Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Rental Income $2,815,370 $2,899,832 $2,986,826 $3,076,431 $3,168,724 $3,263,786 $3,361,700 $3,462,551 $3,566,427 $3,673,420 commercial and sky lounge $170,301 $175,410 $180,672 $186,093 $191,675 $197,426 $203,348 $209,449 $215,732 $222,204 parking $120,630 $124,249 $127,976 $131,816 $135,770 $139,843 $144,038 $148,360 $152,810 $157,395 vending and AC rentals $25,481 $26,245 $27,032 $27,843 $28,679 $29,539 $30,425 $31,338 $32,278 $33,246 storage $31,367 $32,308 $33,277 $34,276 $35,304 $36,363 $37,454 $38,577 $39,735 $40,927 office rent reis sales and MGMT $10,886 $11,212 $11,549 $11,895 $12,252 $12,620 $12,998 $13,388 $13,790 $14,203 GROSS SCHEDULED INCOME $3,174,035 $3,269,256 $3,367,334 $3,468,354 $3,572,404 $3,679,576 $3,789,964 $3,903,662 $4,020,772 $4,141,396 Turnover Vacancy ($140,769) ($144,992) ($149,341) ($153,822) ($158,436) ($163,189) ($168,085) ($173,128) ($178,321) ($183,671) GROSS OPERATING INCOME $3,033,266 $3,124,264 $3,217,992 $3,314,532 $3,413,968 $3,516,387 $3,621,879 $3,730,535 $3,842,451 $3,957,725 Expenses Property Management Fee ($136,497) ($140,592) ($144,810) ($149,154) ($153,629) ($158,237) ($162,985) ($167,874) ($172,910) ($178,098) Replacement Reserves ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) Speed Analysis Expenses ($740,097) ($747,498) ($754,973) ($762,522) ($770,148) ($777,849) ($785,628) ($793,484) ($801,419) ($809,433) TOTAL OPERATING EXPENSES ($926,594) ($938,090) ($949,782) ($961,676) ($973,776) ($986,087) ($998,612) ($1,011,358) ($1,024,329) ($1,037,531) NET OPERATING INCOME $2,106,672 $2,186,175 $2,268,210 $2,352,856 $2,440,192 $2,530,300 $2,623,266 $2,719,177 $2,818,122 $2,920,194 Debt Service Loan Interest ($564,640) ($546,180) ($526,873) ($506,679) ($485,557) ($463,465) ($440,358) ($416,189) ($390,910) ($364,470) Footnotes: Cash Flow IRR based upon net cash flow and principal payments page 30 of 68
Cash In Cash Out Description Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Principal Payments ($401,812) ($420,271) ($439,578) ($459,773) ($480,894) ($502,987) ($526,094) ($550,262) ($575,541) ($601,982) NET CASH FLOW (b/t) $1,140,221 $1,219,723 $1,301,758 $1,386,404 $1,473,740 $1,563,849 $1,656,815 $1,752,725 $1,851,670 $1,953,742 Cash Flow IRR N/A 0.83% 2.31% 3.54% 4.57% 5.45% 6.20% 6.84% 7.40% 7.88% Projected Property Value $42,133,450 $43,723,492 $45,364,196 $47,057,111 $48,803,833 $50,606,007 $52,465,327 $54,383,538 $56,362,438 $58,403,879 Resale Expenses ($842,669) ($874,470) ($907,284) ($941,142) ($976,077) ($1,012,120) ($1,049,307) ($1,087,671) ($1,127,249) ($1,168,078) Proceeds b/f Debt Payoff $41,290,781 $42,849,022 $44,456,912 $46,115,969 $47,827,757 $49,593,887 $51,416,021 $53,295,868 $55,235,189 $57,235,801 Loan Principal Balance ($12,328,404 ($11,908,132 ($11,468,554 ($11,008,782 ($10,527,887 ($10,024,901 ($9,498,807) ($8,948,544) ($8,373,003) ($7,771,021) Capital Reserves Remaining $55,783 $56,341 $56,905 $57,474 $58,048 $58,629 $59,215 $59,807 $60,405 $61,010 Replacement Reserves $550,000 $600,000 $650,000 $700,000 $750,000 $800,000 $850,000 $900,000 $950,000 $1,000,000 Net Proceeds From Sale $29,568,161 $31,597,231 $33,695,263 $35,864,661 $38,107,918 $40,427,616 $42,826,429 $45,307,130 $47,872,592 $50,525,789 Net Resale IRR 11.70% 11.65% 11.60% 11.54% 11.48% 11.42% 11.36% 11.30% 11.25% 11.19% Footnotes: Cash Flow IRR based upon net cash flow and principal payments page 31 of 68
Property Resale Analysis Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Projected Property Value $28,709,369 $29,868,650 $31,065,389 $32,300,738 $33,575,880 $34,892,039 $36,250,470 $37,652,472 $39,099,378 $40,592,565 Resale Expenses ($574,187) ($597,373) ($621,308) ($646,015) ($671,518) ($697,841) ($725,009) ($753,049) ($781,988) ($811,851) Proceeds b/f Debt Payoff $28,135,181 $29,271,277 $30,444,081 $31,654,723 $32,904,363 $34,194,198 $35,525,461 $36,899,423 $38,317,391 $39,780,714 Basis at Acquisition $28,754,369 $28,754,369 $28,754,369 $28,754,369 $28,754,369 $28,754,369 $28,754,369 $28,754,369 $28,754,369 $28,754,369 Depreciation ($959,894) ($1,961,665) ($2,963,437) ($3,965,209) ($4,966,981) ($5,968,753) ($6,970,525) ($7,972,297) ($8,974,068) ($9,975,840) Adjusted Tax Basis $27,794,475 $26,792,704 $25,790,932 $24,789,160 $23,787,388 $22,785,616 $21,783,844 $20,782,072 $19,780,301 $18,778,529 Resale Tax Gain (Loss) $340,706 $2,478,573 $4,653,150 $6,865,563 $9,116,975 $11,408,582 $13,741,617 $16,117,350 $18,537,090 $21,002,185 Resale Tax Benefit (Cost) ($85,176) ($490,416) ($740,859) ($991,302) ($1,241,745) ($1,492,188) ($1,742,631) ($1,993,074) ($2,243,517) ($2,493,960) Loan Principal Balance ($15,638,578 ($15,370,375 ($15,089,852 ($14,796,441 ($14,489,551 ($14,168,562 ($13,832,828 ($13,481,670 ($13,114,379 ($12,730,216 Capital Reserves Remaining $50,500 $51,005 $51,515 $52,030 $52,551 $53,076 $53,607 $54,143 $54,684 $55,231 Replacement Reserves $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 Net Resale Proceeds $12,511,927 $13,561,490 $14,814,885 $16,119,010 $17,475,617 $18,886,523 $20,353,609 $21,878,822 $23,464,179 $25,111,769 Footnotes: b/f = before page 32 of 68
Property Resale Analysis Description Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Projected Property Value $42,133,450 $43,723,492 $45,364,196 $47,057,111 $48,803,833 $50,606,007 $52,465,327 $54,383,538 $56,362,438 $58,403,879 Resale Expenses ($842,669) ($874,470) ($907,284) ($941,142) ($976,077) ($1,012,120) ($1,049,307) ($1,087,671) ($1,127,249) ($1,168,078) Proceeds b/f Debt Payoff $41,290,781 $42,849,022 $44,456,912 $46,115,969 $47,827,757 $49,593,887 $51,416,021 $53,295,868 $55,235,189 $57,235,801 Basis at Acquisition $28,754,369 $28,754,369 $28,754,369 $28,754,369 $28,754,369 $28,754,369 $28,754,369 $28,754,369 $28,754,369 $28,754,369 Depreciation ($10,977,612 ($11,979,384 ($12,981,156 ($13,982,928 ($14,984,700 ($15,986,472 ($16,988,243 ($17,990,015 ($18,991,787 ($19,951,745 Adjusted Tax Basis $17,776,757 $16,774,985 $15,773,213 $14,771,441 $13,769,669 $12,767,897 $11,766,126 $10,764,354 $9,762,582 $8,802,624 Resale Tax Gain (Loss) $23,514,024 $26,074,037 $28,683,699 $31,344,528 $34,058,087 $36,825,990 $39,649,895 $42,531,514 $45,472,607 $48,433,177 Resale Tax Benefit (Cost) ($2,744,403) ($2,994,846) ($3,245,289) ($3,495,732) ($3,746,175) ($3,996,618) ($4,247,061) ($4,497,504) ($4,747,947) ($4,987,936) Loan Principal Balance ($12,328,404 ($11,908,132 ($11,468,554 ($11,008,782 ($10,527,887 ($10,024,901 ($9,498,807) ($8,948,544) ($8,373,003) ($7,771,021) Capital Reserves Remaining $55,783 $56,341 $56,905 $57,474 $58,048 $58,629 $59,215 $59,807 $60,405 $61,010 Replacement Reserves $550,000 $600,000 $650,000 $700,000 $750,000 $800,000 $850,000 $900,000 $950,000 $1,000,000 Net Resale Proceeds $26,823,758 $28,602,385 $30,449,974 $32,368,929 $34,361,743 $36,430,998 $38,579,368 $40,809,627 $43,124,645 $45,537,853 Footnotes: b/f = before page 33 of 68
Investment Return Analysis Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Cash Flow - To Date $469,017 $995,998 $1,582,816 $2,231,401 $2,943,743 $3,721,894 $4,567,966 $5,484,138 $6,472,655 $7,535,832 Net Resale Proceeds $12,511,927 $13,561,490 $14,814,885 $16,119,010 $17,475,617 $18,886,523 $20,353,609 $21,878,822 $23,464,179 $25,111,769 Invested Capital ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 Net Return on Investment ($87,375) $1,489,169 $3,329,382 $5,282,092 $7,351,041 $9,540,098 $11,853,256 $14,294,640 $16,868,515 $19,579,282 Internal Rate of Return N/A 5.64% 8.13% 9.30% 9.95% 10.33% 10.58% 10.73% 10.83% 10.89% Modified IRR -0.67% 5.54% 7.86% 8.86% 9.34% 9.57% 9.66% 9.68% 9.65% 9.59% NPV (cash flow + reversion) ($2,199) $1,979,585 $4,070,241 $6,273,394 $8,592,787 $11,032,286 $13,595,887 $16,287,715 $19,112,032 $22,073,242 PV (NOI + reversion) $29,570,650 $32,200,177 $34,926,252 $37,751,930 $40,680,364 $43,714,801 $46,858,588 $50,115,173 $53,488,110 $56,981,062 Footnotes: a/t = after taxes; Modified IRR = Modified Internal Rate of Return; PV = Present Value; NPV = Net Present Value; NOI = Net Operating Income Reversion = Amount received from the resale; Net Return on Investment = Cash Flow (a/t To Date) + Net Proceeds from Resale - Invested Capital. page 34 of 68
Investment Return Analysis Description Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Cash Flow - To Date $8,676,053 $9,895,776 $11,197,534 $12,583,938 $14,057,678 $15,621,527 $17,278,342 $19,031,067 $20,882,738 $22,836,480 Net Resale Proceeds $26,823,758 $28,602,385 $30,449,974 $32,368,929 $34,361,743 $36,430,998 $38,579,368 $40,809,627 $43,124,645 $45,537,853 Invested Capital ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 ($13,068,319 Net Return on Investment $22,431,491 $25,429,842 $28,579,189 $31,884,548 $35,351,102 $38,984,206 $42,789,391 $46,772,375 $50,939,063 $55,306,014 Internal Rate of Return 10.92% 10.94% 10.94% 10.94% 10.93% 10.91% 10.89% 10.87% 10.85% 10.82% Modified IRR 9.51% 9.42% 9.33% 9.23% 9.12% 9.02% 8.92% 8.82% 8.72% 8.63% NPV (cash flow + reversion) $25,175,895 $28,424,688 $31,824,478 $35,380,280 $39,097,277 $42,980,824 $47,036,452 $51,269,879 $55,687,010 $60,293,950 PV (NOI + reversion) $60,597,801 $64,342,217 $68,218,317 $72,230,229 $76,382,208 $80,678,639 $85,124,039 $89,723,063 $94,480,506 $99,401,312 Footnotes: a/t = after taxes; Modified IRR = Modified Internal Rate of Return; PV = Present Value; NPV = Net Present Value; NOI = Net Operating Income Reversion = Amount received from the resale; Net Return on Investment = Cash Flow (a/t To Date) + Net Proceeds from Resale - Invested Capital. page 35 of 68
Base Rent Report Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total Income $2,094,900 $2,157,747 $2,222,479 $2,289,154 $2,357,828 $2,428,563 $2,501,420 $2,576,463 $2,653,757 $2,733,369 Speed Analysis Income $2,094,900 $2,157,747 $2,222,479 $2,289,154 $2,357,828 $2,428,563 $2,501,420 $2,576,463 $2,653,757 $2,733,369 page 36 of 68
Base Rent Report Description Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Total Income $2,815,370 $2,899,832 $2,986,826 $3,076,431 $3,168,724 $3,263,786 $3,361,700 $3,462,551 $3,566,427 $3,673,420 Speed Analysis Income $2,815,370 $2,899,832 $2,986,826 $3,076,431 $3,168,724 $3,263,786 $3,361,700 $3,462,551 $3,566,427 $3,673,420 page 37 of 68
Property Equity Analysis $51,000,000 $45,900,000 $40,800,000 $35,700,000 $30,600,000 $25,500,000 $20,400,000 $15,300,000 $10,200,000 $5,100,000 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Legend Initial Equity Equity (loan reduction) Equity (appreciation) page 38 of 68
Gross Income Vs. Operating Expenses $4,200,000 $3,780,000 $3,360,000 $2,940,000 $2,520,000 $2,100,000 $1,680,000 $1,260,000 $840,000 $420,000 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Legend GROSS SCHEDULED INCOME Total Operating Expenses page 39 of 68
Equity vs. Debt $51,000,000 $45,900,000 $40,800,000 $35,700,000 $30,600,000 $25,500,000 $20,400,000 $15,300,000 $10,200,000 $5,100,000 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Legend Equity Loan Principal Balance page 40 of 68
Cumulative Wealth Analysis $61,000,000 $54,900,000 $48,800,000 $42,700,000 $36,600,000 $30,500,000 $24,400,000 $18,300,000 $12,200,000 $6,100,000 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Legend Equity (loan reduction) Equity (appreciation) CASH FLOW (a/t) page 41 of 68
Operating Income Analysis $4,000,000 $3,600,000 $3,200,000 $2,800,000 $2,400,000 $2,000,000 $1,600,000 $1,200,000 $800,000 $400,000 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Legend GROSS OPERATING INCOME NET OPERATING INCOME NET CASH FLOW (b/t) page 42 of 68
Broker Opinion of Value PROPERTY SUMMARY AmmGen Development Group L.L.C. (AmmGen) owns a site in downtown Des Moines a block and a half up from the Des Moines Marina, Beach Park & Beach Park Events Center. AmmGen has reviewed the site for development of an 87 unit apartment building with 2,500 square feet in retail. The current plan is to build a high-end five floor wood-frame apartment building, over a concrete parking garage. The units themselves will have higher-end counters, fixtures and the top two floors facing west have sweeping marine views. Floor two contains a 2,710 square foot open courtyard facing west containing hot tub, trellis covered garden area and bar for special occasions. The fifth floor has a Sky Lounge with large screen T.V., lounge area, wi-fi and a large deck looking out over the water (410 square feet). From the Sky Lounge, one may take a spiral staircase up to the rooftop terrace. Which some consider the highlight of the Marina Club. With a 15,000 square foot area dedicated to enjoying the great outdoors with lush planters, lounge areas,indoor hot tub & sauna, cabana's, outdoor kitchen and barbecue area. The Marina Club is the tallest building in the VALUATION SUMMARY Valuation Method Conservative Average Aggressive Income Valuation $15,949,649 $17,943,355 $20,506,692 Sales Comparison Valuation $0 $0 $0 $/UNIT Income Valuation $183,329 $206,245 $235,709 Sales Comparison Valuation $0 $0 $0 page 43 of 68
Broker Opinion of Value STABILIZED INCOME Amount Percent $/UNIT Gross Scheduled Income $2,361,780 100% $27,147 - Vacancy ($104,745) 4.4% $1,204 Gross Operating Income $2,257,035 100% $25,943 - Total Operating Expenses ($670,000) 29.7% $7,701 - Management Fees ($101,567) 4.5% $1,167 - Replacement Reserves ($50,000) 2.2% $575 Net Operating Income $1,435,468 $16,500 INCOME VALUATION ANALYSIS Price Cap Rate $/UNIT Conservative Cap Rate $15,949,649 9.00% $183,329 Average Cap Rate $17,943,355 8.00% $206,245 Aggressive Cap Rate $20,506,692 7.00% $235,709 Average Market Value $17,943,355 8.00% $206,245 page 44 of 68
Level P1 Total Parking: 64 stalls (24 compact) RESIDENT STORAGE RESIDENT STORAGE N MARINA APARTMENTS - SCHEMATIC FLOOR PLANS SCALE: 1/16 = 1-0
Level 1 Total Parking: 28 stalls (12 compact) N MARINA APARTMENTS - SCHEMATIC FLOOR PLANS SCALE: 1/16 = 1-0
Level 2 N MARINA APARTMENTS - SCHEMATIC FLOOR PLANS SCALE: 1/16 = 1-0
Level 3 N MARINA APARTMENTS - SCHEMATIC FLOOR PLANS SCALE: 1/16 = 1-0
Level 4 N MARINA APARTMENTS - SCHEMATIC FLOOR PLANS SCALE: 1/16 = 1-0
Level 5 N MARINA APARTMENTS - SCHEMATIC FLOOR PLANS SCALE: 1/16 = 1-0
Roof Deck N MARINA APARTMENTS - SCHEMATIC FLOOR PLANS SCALE: 1/16 = 1-0
BATH WH REF. LINENS CONVERT. W/D CLOSET DW OPEN BEDROOM 8' 9" x 9' 0" KITCHEN 13' 10" x 6' 3" LIVING / DINING 11' 9" x 8' 9" MARINA APARTMENTS - TYPICAL UNIT PLANS UNIT A1 - STUDIO
BATH WH REF. LINENS CLOSET CONVERT. W/D PANTRY W.I.C. DW KITCHEN 17' 3" x 6' 3" LIVING / DINING 17' 0" x 8' 9" MARINA APARTMENTS - TYPICAL UNIT PLANS UNIT A2 - STUDIO
REF. CLOSET / PANTRY WH KITCHEN 12' 0" x 7' 6" BATH DW W/D DINING W.I.C. LIVING 15' 0" x 10' 6" BEDROOM 15' 0" x 9' 6" MARINA APARTMENTS - TYPICAL UNIT PLANS UNIT B1-1 BEDROOM
PANTRY 4' 0" x 7' 0" WH ENTRY DEN 10' 6" x 8' 0" REF. KITCHEN 10 0" x 10' 0" W/D DW BATH DINING W.I.C. LIVING 15' 0" x 14' 0" BEDROOM 12' 0" x 14' 0" MARINA APARTMENTS - TYPICAL UNIT PLANS UNIT C1-1 BEDROOM + DEN
W.I.C. BEDROOM 9' 6" x 15 0" BATH ENTRY CLOSET REF. WH KITCHEN 10' 6" x 10' 8" W/D DW PANTRY BATH W.I.C. DINING LIVING ROOM 15' 6" x 11' 6" MASTER BEDROOM 14' 6" x 11' 0" MARINA APARTMENTS - TYPICAL UNIT PLANS UNIT D1-2 BEDROOM, 2 BATH
MARINA APARTMENTS Des Moines, WA SUMMARY TOTAL BUILDING PROGRAM Program Space Area (GSF) RESIDENTIAL Quantity Avg Size (SF) Total APARTMENTS Studio 32 450 SF 14,400 SF 1 BR 17 632 SF 10,740 SF 1 BR + Den 25 837 SF 20,930 SF 2 BR 13 1072 SF 13,935 SF TOTAL APARTMENTS 87 60,005 SF RESIDENT INTERIOR AMENITY 840 SF CIRCULATION/SUPPORT 8,789 SF USABLE INTERIOR RESIDENTIAL AREA 69,634 SF USABLE EXTERIOR AMENITY AREA 15,623 SF TOTAL USABLE RESIDENTIAL AREA 85,257 SF UNUSABLE EXTERIOR AMENITY AREA 2,580 SF TOTAL RESIDENTIAL AREA 87,837 SF RETAIL TOTAL RETAIL AREA 5,842 SF NON CONDITIONED SUPPORT Mechanical / Electrical Room Bike Storage Fire Riser Room Refuse/Recycling TOTAL SUPPORT AREA 735 SF 385 SF 150 SF 355 SF 1,625 SF PARKING Standard Stalls 43 Compact Stalls 44 ADA Stalls 4 Total Stalls 91 27,428 SF Area/Stall 301.4 SF Ramps 2,760 SF TOTAL PARKING (ALL LEVELS) 91 30,188 SF Max Units Allowable (1.03) 88.3 CORES Elevator 1,505 SF Stair 1 1,505 SF Stair 2 1,750 SF TOTAL CORE AREA 4,760 SF TOTALS NET INTERIOR CONDITIONED AREA 75,476 SF NET INTERIOR NON CONDITIONED AREA 31,813 SF NET BUILDING AREA 107,289 SF GROSS CORE AREA GROSS BUILDING AREA EXTERIOR USABLE AMENITY AREAS EXTERIOR NON USABLE AMENITY AREAS TOTAL BUILDING AREA 4,760 SF 112,049 SF 11,940 SF 3,320 SF 127,309 SF
MARINA APARTMENTS Des Moines, WA SUMMARY RESIDENTIAL PROGRAM Program Space Area (GSF) RESIDENTIAL Quantity Size (SF) Total Avg Size Studio 4 435 1740 SF 24 450 10800 SF 4 465 1860 SF Total Studio 32 14,400 SF 450 SF 1 BR Quantity Size (SF) Total Avg Size 4 600 2400 SF 2 610 1220 SF 8 635 5080 SF 2 645 1290 SF 1 750 750 SF Total 1 BR 17 10,740 SF 631.8 SF 1 BR + Den Quantity Size (SF) Total Avg Size 8 800 6400 SF 4 810 3240 SF 4 825 3300 SF 2 875 1750 SF 3 880 2640 SF 4 900 3600 SF Total 1 BR+Den 25 20,930 SF 837.2 SF 2 BR Quantity Size (SF) Total 4 1015 4060 SF 1 1035 1035 SF 8 1105 8840 SF Total 2BR 13 13,935 SF 1071.9 SF TOTAL APARTMENTS 87 60,005 SF 689.7 SF RESIDENT AMENITY Sky Lounge 1 840 840 SF CIRCULATION/SUPPORT Elevator Lobby Hallway Refuse Chute / Room Janitor Closet Electrical Closet Total Circ/Support 1,355 SF 6,375 SF 755 SF 152 SF 152 SF 8,789 SF Efficiency 86.2% USABLE INTERIOR RESIDENTIAL AREA USABLE EXTERIOR AMENITY AREA Resident Courtyard Sky Lounge Terrace Rooftop Cabana (covered) Rooftop Concrete Paver Area Rooftop Gardening Area (concete pavers) Rooftop Wood Paver Area Intensive Green Roof (Grass) Off Leash Dog Area USABLE EXTERIOR RESIDENTIAL AREA TOTAL USABLE RESIDENTIAL AREA 69,634 SF 2,710 SF 410 SF 1,300 SF 1,365 SF 2,585 SF 4,955 SF 1,735 SF 563 SF 15,623 SF 85,257 SF UNUSABLE EXTERIOR AMENITY AREA Planters Extensive Green Roof (5") 3,320 SF
MARINA APARTMENTS Des Moines, WA BASEMENT PARKING PROGRAM Program Space PARKING PARKING Area (GSF) Standard Stalls 29 Compact Stalls 32 ADA Stalls 2 Total Stalls 63 18,738 SF Area/Stall 297.4 SF Ramp 2,055 SF Total Parking 20,793 SF CIRCULATION Elevator Lobby USABLE FLOOR AREA (CONDITIONED) NON CONDITIONED SUPPORT Mechanical / Electrical Room Bike Storage Total Support 155 SF 155 SF 735 SF 385 SF 1120 SF CORES Elevator 215 SF Stair 1 215 SF Stair 2 250 SF Total Core 680 SF GROSS FLOOR AREA 22,748 SF
MARINA APARTMENTS Des Moines, WA 1ST FLOOR PROGRAM Program Space PARKING PARKING Area (GSF) Standard Stalls 14 Compact Stalls 12 ADA Stalls 2 Total Stalls 28 8,690 SF Area/Stall 310.4 SF Ramp 705 SF Total Parking 9,395 SF TOTAL PARKING (ALL LEVELS) 91 30,188 SF Max Units Allowable (1.03) 88.3 NON CONDITIONED SUPPORT Fire riser Room Refuse/Recycling Total Support TOTAL 1ST FLOOR NON CONDITIONED AREA 150 SF 355 SF 505 SF 9,900 SF RETAIL Level 1 Retail Area 5,842 SF RESIDENTIAL Level 1 Lounge Mail/Packages Central Laundry Leasing Office Elevator Lobby Egress Corridor Total Residential Areas 1428 SF 220 SF 458 SF 655 SF 580 SF 545 SF 3886 SF Cores Elevator 215 SF Stair 1 215 SF Stair 2 250 SF Total Core 680 SF TOTAL CONDITIONED AREA 1ST FLOOR TOTAL GROSS AREA 9,728 SF 19,628 SF
MARINA APARTMENTS Des Moines, WA 2ND FLOOR PROGRAM Program Space Area (GSF) LEVEL 2 Quantity Size (SF) Total Avg Size 1 435 435 SF Studio 7 450 3150 SF 1 465 465 SF Total Studio 9 4050 SF 450 SF 1 BR Quantity Size (SF) Total Avg Size 1 600 600 SF 2 635 1270 SF 1 750 750 SF Total 1 BR 4 2620 SF 655.0 SF 1 BR + Den Quantity Size (SF) Total Avg Size 2 800 1600 SF 1 810 810 SF 1 825 825 SF 1 900 900 SF Total 1 BR+Den 5 4135 SF 827.0 SF 2 BR Quantity Size (SF) Total 1 1015 1015 SF 1 1035 1035 SF 2 1105 2210 SF Total 2BR 4 4260 SF 1065.0 SF TOTAL RESIDENTIAL 22 15,065 SF 684.8 SF CIRCULATION/SUPPORT Elevator Lobby Hallway Trash Chute Janitor Closet Electrical Closet Total Circ/Support USABLE FLOOR AREA 155 SF 1705 SF 100 SF 38 SF 38 SF 2036 SF Efficiency 88.1% 17,101 SF CORES Elevator 215 SF Stair 1 215 SF Stair 2 250 SF Total Core 680 SF GROSS INTERIOR AREA 17,781 SF EXTERIOR AMENITY AREA Resident Courtyard GROSS FLOOR AREA 2,710 SF 20,491 SF
MARINA APARTMENTS Des Moines, WA 3RD FLOOR PROGRAM Program Space Area (GSF) LEVEL 3 Quantity Size (SF) Total Avg Size Studio 1 435 435 SF 7 450 3150 SF 1 465 465 SF Total Studio 9 4050 SF 450 SF 1 BR Quantity Size (SF) Total Avg Size 1 600 600 SF 1 610 610 SF 2 635 1270 SF 1 645 645 SF Total 1 BR 5 3125 SF 625.0 SF 1 BR + Den Quantity Size (SF) Total Avg Size 2 800 1600 SF 1 810 810 SF 1 825 825 SF 1 875 875 SF 1 880 880 SF Total 1 BR+Den 6 4990 SF 831.7 SF 2 BR Quantity Size (SF) Total 1 1015 1015 SF 2 1105 2210 SF Total 2BR 3 3225 SF 1075.0 SF TOTAL RESIDENTIAL 23 15,390 SF 669.1 SF CIRCULATION/SUPPORT Elevator Lobby Hallway Trash Chute Janitor Closet Electrical Closet Total Circ/Support USABLE FLOOR AREA 155 SF 1385 SF 100 SF 38 SF 38 SF 1716 SF Efficiency 90.0% 17,106 SF CORES Elevator 215 SF Stair 1 215 SF Stair 2 250 SF Total Core 680 SF GROSS INTERIOR AREA 17,786 SF
MARINA APARTMENTS Des Moines, WA 4TH FLOOR PROGRAM Program Space Area (GSF) LEVEL 4 Quantity Size (SF) Total Avg Size Studio 1 435 435 SF 5 450 2250 SF 1 465 465 SF Total Studio 7 3150 SF 450 SF 1 BR Quantity Size (SF) Total Avg Size 1 600 600 SF 1 610 610 SF 2 635 1270 SF 1 645 645 SF Total 1 BR 5 3125 SF 625.0 SF 1 BR + Den Quantity Size (SF) Total Avg Size 2 800 1600 SF 1 810 810 SF 1 825 825 SF 1 875 875 SF 1 880 880 SF 1 900 900 SF Total 1 BR+Den 7 5890 SF 841.4 SF 2 BR Quantity Size (SF) Total 1 1015 1015 SF 2 1105 2210 SF Total 2BR 3 3225 SF 1075.0 SF TOTAL RESIDENTIAL 22 15,390 SF 699.5 SF CIRCULATION/SUPPORT Elevator Lobby Hallway Trash Chute Janitor Closet Electrical Closet Total Circ/Support USABLE FLOOR AREA 155 SF 1385 SF 100 SF 38 SF 38 SF 1716 SF Efficiency 90.0% 17,106 SF CORES Elevator 215 SF Stair 1 215 SF Stair 2 250 SF Total Core 680 SF GROSS INTERIOR AREA 17,786 SF
MARINA APARTMENTS Des Moines, WA 5TH FLOOR PROGRAM Program Space Area (GSF) LEVEL 5 Quantity Size (SF) Total Avg Size Studio 1 435 435 SF 5 450 2250 SF 1 465 465 SF Total Studio 7 3150 SF 450 SF 1 BR Quantity Size (SF) Total Avg Size 1 600 600 SF 2 635 1270 SF Total 1 BR 3 1870 SF 623.3 SF 1 BR + Den Quantity Size (SF) Total Avg Size 2 800 1600 SF 1 810 810 SF 1 825 825 SF 1 880 880 SF 2 900 1800 SF Total 1 BR+Den 7 5915 SF 845.0 SF 2 BR Quantity Size (SF) Total 1 1015 1015 SF 2 1105 2210 SF Total 2BR 3 3225 SF 1075.0 SF TOTAL RESIDENTIAL 20 14,160 SF 708.0 SF RESIDENT AMENITY Sky Lounge 1 840 840 SF CIRCULATION/SUPPORT Elevator Lobby Hallway Trash Chute Janitor Closet Electrical Closet Total Circ/Support USABLE FLOOR AREA 155 SF 1355 SF 100 SF 38 SF 38 SF 1686 SF Efficiency 84.9% 16,686 SF CORES Elevator 215 SF Stair 1 215 SF Stair 2 250 SF Total Core 680 SF GROSS INTERIOR AREA 17,366 SF EXTERIOR AMENITY AREA Sky Lounge Terrace GROSS FLOOR AREA 410 SF 17,776 SF
MARINA APARTMENTS Des Moines, WA ROOF TERRACE PROGRAM Program Space CIRCULATION/SUPPORT Elevator Lobby USABLE FLOOR AREA Area (GSF) 155 SF 155 SF CORES Elevator 215 SF Stair 1 215 SF Stair 2 250 SF Total Core 680 SF GROSS INTERIOR AREA 835 SF EXTERIOR AMENITY AREA PEDESTAL PAVER AREA Cabana covered area concrete pedestal pavers 1,300 SF Cabana open area wood pedestal pavers 1,105 SF North Sun Deck wood pedestal pavers 1,575 SF South Sun Deck wood pedestal pavers 1,565 SF South Sun Deck Patio concrete pedestal pavers 460 SF Private Patio 1 wood pedestal pavers 370 SF Private Patio 2 wood pedestal pavers 340 SF Walkway concrete pedestal pavers 905 SF Resident Garden concrete pedestal pavers 2,585 SF Total Paver Area 10,205 SF GREEN ROOF AREA Grass Area Intensive Green Roof (12") 1,735 SF Planters Extensive Green Roof (5") 3,320 SF Total Green Roof Area 5,055 SF Off Leash Dog Zone GROSS EXTERIOR AMENITY AREA TOTAL ROOF AREA 563 SF 15,823 SF 16,658 SF
AmmGen Development Group, LLC Overview of Completed Reports, Surveys, Environmental -Traffic Impact Analysis- -Traffic & Parking Study, Updated Parking Study (including L.O.S.)- -Ground Penetrating Radar Test- -Environmental Phase 1- -Updated Phase 1 Environmental- -Land Survey, Utility Land Survey- -Insurance Binder- -GeoTech Study Update- AmmGen Development Group, LLC 4427 6th Ave, Suite 102 Tacoma, WA 98406
FAA's big new headquarters lands in Des Moines Apr 29, 2015, 12:32pm PDT Updated: Apr 29, 2015, 1:44pm PDT CollinsWoerman rendering Panattoni Develpment will build this 300,000-square-foot regional headquarters for the Federal Aviation Administration in Des Moines. Construction is scheduled to start in 2016. The FAA is moving its headquarters, where 1,600 people will work, from Renton. Marc Stiles Staff Writer- Puget Sound Business Journal The Federal Aviation Administration's new regional headquarters will be built at Des Moines Creek Business Park, officials said Wednesday. The FAA is consolidating operations, mostly from Renton, at the new headquarters that Panattoni Development Co. will build just south of Seattle-Tacoma International Airport. Cities and developers have been angling for several years to land the facility, where 1,600 people will work. "I am ecstatic," Des Moines Mayor Dave Kaplan said. "This is a huge day for the city of Des Moines, and we couldn't be any happier." "We are ready to jump in and build a beautiful new, state-of-the art facility for the FAA," said Bart Brynestad, the head of Panattoni's Seattle-area office. Two Seattle companies, architecture firm CollinsWoerman and Abbott Construction, will design and build the 300,000-square-foot project, and construction will start sometime in 2016, added Brynestad. He declined to say how much the development will cost, but based on the rent that the federal government will pay over the course of the long-term lease it is estimated that the contract is worth up to $210 million. Des Moines Creek Business Park is an 87-acre site south of Sea-Tac Airport. The Port of Seattle owns the property, where Panattoni plans to build up to 2 million square feet of manufacturing, distribution and office buildings. Panattoni started construction of the first phase of the project last summer. The FAA facility will go up at the corner of South 216th Street and 24th Avenue South. Three other sites were reportedly finalists for the FAA building. One is in the city of SeaTac near Tyee Golf Course, another was in Kent where the Riverbend par-3 golf course is located, and the third is the existing FAA building at 1601 Lind Ave. S.W. in Renton. Marc Stiles covers commercial real estate and government for the Puget Sound Business Journal.