LIHTC Advisors Northwood Manor 51 Units 1590 NE Northwood Drive Pullman, WA 99163 EXCLUSIVE OFFERING
LIHTC Advisors 12639 W. Explorer Drive Suite 200 Boise, ID 83713 CONFIDENTIALITY & DISCLAIMER Jeff Irish 800.840.3021 (phone) 208.286.5013 (direct) 888.506.2771 (fax) jeff@lihtcadvisors.com John Nicolas 800.840.3021 (phone) 208.891.8901 (direct) 888.506.2771 (fax) john@lihtcadvisors.com 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. Jordan Skyles 800.840.3021 (phone) 208.631.4981 (direct) 888.506.2771 (fax) jordan@lihtcadvisors.com www.lihtcadvisors.com 2 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Northwood Manor 51 Units 1590 NE Northwood Drive Pullman, WA 99163 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 NORTHWOOD MANOR 51 UNITS
Property Overview HIGHLIGHTS Great Location Within Minutes to Washington State University and Downtown Pullman Past the Initial Tax Credit Compliance Period (Placed In Service in 1998) Bloomberg Businessweek Chose Pullman as the Best Place to Raise Kids in the State of Washington Low Historical Vacancy 4 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Property Description Northwood Manor Apartments is a 51-unit affordable housing community located in Pullman, WA. The property was built and placed in service in 1998 under the Section 42 Low-Income Housing Tax Credit (LIHTC) program. It is conveniently located with easy access to Washington State University and downtown Pullman. There is an existing regulatory agreement in place which requires units to be rented to income qualifying residents earning no more than 30% and 60% of Area Medium Income (AMI) limits, which are provided by Washington State Housing Finance Commission (WSHFC). The property is out of its initial tax credit compliance period. Please see the Property Summary page and Unit Mix Page for further details. A qualified purchaser can be a non-profit or for-profit entity that agrees to maintain the affordability restrictions. Northwood Manor offers spacious two, three, and four bedroom floor plans. Residents benefit from common area amenities including on-site laundry facility, community garden area, spacious common grounds, and playground.. Unit amenities include open floor plan with full appliance package, W/D connections in select units, and private patio / balcony. COMMUNITY AMENITIES On-Site Laundry Facility Playground Community Garden Area Spacious Common Grounds UNIT AMENITIES Full Appliance Package Open Floor Plan W/D Connections in Select Units Patio/ Balcony 5 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Area Highlights Pullman is the largest city in Whitman County, located in southeastern Washington state within the Palouse region of the Pacific Northwest. The population is 33,282. Originally incorporated as Three Forks, the city was later renamed after industrialist George Pullman. Pullman is noted as a vastly fertile agricultural area known for its many miles of rolling hills and the production of wheat and legumes. It is home to Washington State University, a public research land-grant university, as well as the international headquarters of Schweitzer Engineering Laboratories. Pullman is located eight miles from Moscow, Idaho, home to the University of Idaho, and is served by the Pullman-Moscow Regional Airport. ECONOMY COST OF LIVING POPULATION REAL ESTATE Recent job growth in Pullman is positive. Jobs have increased by 0.5% since January 2017. The cost of living in Pullman is 10% lower than the state average and 4% higher than the rest of the country as of Q4 2016. The population in Pullman is 33,282 people. The median home cost in Pullman is $219,700. Median rent is $705 a month. SOURCE: homefacts.com, areavibes.com NEIGHBORHOOD AMENITIES Washington State University (1.1 miles) Jefferson Elementary School (2.0 miles) Pullman Care Community (3.1 miles) Walmart (3.9 miles) LOCATION HIGHLIGHTS Population: 33,282 Home to Washington State University Located 8 miles from Moscow, Idaho - home to the University of Idaho LEWIS-CLARK VALLEY TOP EMPLOYERS (NO. EMPLOYEES) Washington State University (7,952) University of Moscow (4,843) Vista Outdoor (1,380) Clearwater Paper (1,370) Nez Perce Tribe (1,346) 6 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Property Summary NAME & LOCATION Property Name Northwood Manor Property Address 1590 NE Northwood Drive Pullman, WA 99163 SECTION 42 LIHTC RESTRICTIONS Placed in Service 1998 End of Initial Compliance Period 12/31/2012 End of Extended Use Period 12/31/2037 SITE INFORMATION Assessor s Parcel Number 815200000000031 & 815200000000032 Number of Units 51 Number of Buildings 5 Number of Stories 3 Rentable Square Feet 50,945 Year Built 1998 Lot Size 3.50 Acres Density 14.57 Units/Acre Type of Ownership Fee Simple Landscaping Mature Trees, Shrubs, & Grass Topography Relatively Flat UTILITIES Water Moscow Water Electric Public Utility Commission Gas Public Utility Commission CONSTRUCTION Exterior Vinyl Siding & Wood Trim Roof Composite Shingle # OF UNITS RENTABLE SF PLACED IN SERVICE LOT SIZE 51 50,945 1998 3.50 acres 7 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Aerial Map 8 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Local Map Northwood Manor A Washington State University (1.1 miles) B C McDonald s, Starbucks, Jack in the Box, Taco Bell (1.4 miles) Jimmy John s, Domino s (1.6 miles) G D E F Jefferson Elementary School (2.0 miles) Pullman Moscow Regional Airport (2.3 miles) Subway, Thomas Hammer Coffee (2.3 miles) D B E G Pullman High School (2.6 miles) C H I J Sunnyside Elementary School (2.7 miles) Pullman Village Centre Cinemas (2.9 miles) Pullman Care Community (3.1 miles) H F A K McDonald s, Rite Aide (3.4 miles) L Safeway, Shopko, Lincoln Middle School (3.4 miles) M Walmart (3.9 miles) K L M J I 9 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Local Map NORTHWOOD MANOR Washington State University Pullman Care Community 10 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Regional Map Moscow, ID (9 miles) Lewiston, ID (32 miles) Spokane, WA (75 miles) Coeur d Alene, ID (88 miles) 11 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Financial Analysis LIST PRICE PRICE/UNIT PRICE/SF PROFORMA NOI PROFORMA NOI/UNIT PROFORMA CAP RATE $2,950,000 $57,843 $57.91 $214,267 $4,201 7.26% 12 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Executive Summary PROPERTY INFORMATION Name Northwood Manor Address 1590 NE Northwood Drive City, State, Zip Pullman, WA 99163 County Whitman Year Built 1998 Placed In Service 1998 End of Initial Tax Credit Compliance Period End of LIHTC Restrictions End of Other Restrictions Qualified Contract Eligible December 31, 2012 December 31, 2037 NA No Total Number of Units 51 Net Rentable Square Feet 50,945 SF FINANCIAL SUMMARY PRICING FIGURES - WITH PROPOSED NEW FINANCING LIST PRICE $2,950,000 Price per Unit $57,843 Price per SF $57.91 PROFORMA 10-Year All Cash IRR%* 9.69% PROFORMA 10-Year Leveraged Cash IRR%* 20.41% Closing Cost $14,750 Capital Expense $102,000 Total Acquisition Cost $3,066,750 * IRR Analysis assumes 0.50% in Closing Costs, $2,000 per unit in Capital Expense, 7.50% exit cap, with a 5.00% cost of sale. 13 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Executive Summary FINANCING PROPOSED NEW FINANCING Program Conventional Loan to Value % 80.00% Interest Rate 4.30% Interest Only Period (Months) 0 Amortization Period (Years) 30 Total Acquisition Cost $3,066,750 Loan Amount $2,360,000 Loan Fee @ 1.00% $23,600 Down Payment $730,350 Annual Debt Service - P&I $140,148 Year 1 PROFORMA Debt Coverage Ratio 1.53 VITAL DATA PROFORMA CAP Rate 7.26% NOI $214,267 Year 1 Debt Service $140,148 Net Cash Flow After Debt Service $74,119 Cash on Cash % 10.15% 14 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Income & Expenses OPERATIONAL ANALYSIS YE 2016 PER UNIT T12 May'17 PER UNIT PROFORMA PER UNIT INCOME Gross Potential Rent $411,016 $0.67 $412,446 $0.67 $430,440 $0.70 Gain (Loss) to Lease -6.11% ($25,112) ($492) -3.97% ($16,390) ($321) -5.00% ($21,522) ($422) POTENTIAL RENTAL INCOME $385,904 $7,567 $396,056 $7,766 $408,918 $8,018 (1) % Increase over Prior Year 2.63% 3.25% Economic Loss Vacancy Loss 2.69% ($10,400) ($204) 2.24% ($8,887) ($174) 4.00% ($16,357) ($321) (2) Bad Debt 0.00% $0 $0 0.00% $0 $0 0.00% $0 $0 Concessions 0.00% $0 $0 0.00% $0 $0 0.00% $0 $0 Total Economic Loss 2.69% ($10,400) ($204) 2.24% ($8,887) ($174) 4.00% ($16,357) ($321) NET RENTAL INCOME $375,504 $7,363 $387,169 $7,592 $392,561 $7,697 Other Income Laundry and Vending Revenue $26,063 $511 $26,212 $514 $26,867 $527 Misc. Other Income $4,780 $94 $5,767 $113 $5,911 $116 Total Other Income $30,843 $605 $31,979 $627 $32,778 $643 EFFECTIVE GROSS INCOME $406,347 $7,968 $419,148 $8,219 $425,340 $8,340 EXPENSES FIXED OPERATIONAL EXPENSE Total Real Estate Property Taxes 0% $223 $4 0% $327 $6 0% $215 $4 (3) Total Property Insurance Expense 2% $7,104 $139 2% $7,407 $145 2% $7,592 $149 Total Property Utility Expense 15% $60,006 $1,177 15% $61,347 $1,203 15% $62,881 $1,233 TOTAL FIXED OPERATIONAL EXP 17% $67,333 $1,320 16% $69,081 $1,355 17% $70,688 $1,386 VARIABLE OPERATIONAL EXPENSE Total Maint. Contract Services 1% $5,346 $105 2% $6,444 $126 2% $6,605 $130 Total Repairs & Maintenance 4% $17,459 $342 4% $15,878 $311 4% $16,275 $319 Total Administrative Expenses 7% $30,050 $589 8% $34,781 $682 4% $15,456 $303 (4) Total Leasing & Marketing 1% $2,640 $52 1% $2,213 $43 1% $2,268 $44 Total Payroll and Salary Expenses 18% $72,193 $1,416 17% $71,962 $1,411 13% $56,160 $1,101 (5) Property Management Fee 5.00% $20,328 $399 4.94% $20,710 $406 4.50% $19,140 $375 Non-Profit Fee 0.00% $0 $0 0.00% $0 $0 2% $9,180 $180 (6) TOTAL VARIABLE OPERATIONAL EXP 36% $148,016 $2,902 36% $151,988 $2,980 29% $125,085 $2,453 TOTAL FIXED & VARIABLE EXPENSES 53% $215,349 $4,223 53% $221,069 $4,335 46% $195,773 $3,839 Reserves & Replacements $15,300 $300 $15,300 $300 $15,300 $300 TOTAL OPERATING EXPENSES 57% $230,649 $4,523 56% $236,369 $4,635 50% $211,073 $4,139 NET OPERATING INCOME $175,698 $3,445 $182,779 $3,584 $214,267 $4,201 **ANALYSIS DOES NOT INCLUDE TOTAL FURN & APPL REPLACEMENT & TOTAL OTHER REPLACEMENTS INCLUDED ABOVE THE LINE IN THE YE 2016 & T12 MAY'17 FINANCIALS. 15 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Comments to Income & Expenses NOTES TO PROFORMA (1) (2) Potential Rental Income: Analysis assumes May 2017 Gross Market Rents from trailing-12 financials annualized and a Loss to Lease of 5%. Loss to Lease then decreases by 1% per year as rents continue to catch up to Gross Market Rents. Vacancy: Based on the rent roll from 5/31/17, occupancy is 92.15%. Analysis uses a 4% vacancy factor going forward as historical vacancy has typically averaged less than 3%. (3) Real Estate Taxes: See notes below. (4) Administrative: Proforma assumes that the cost of an audit will no longer be required after a sale. Analysis also assumes the removal of any Mileage Expense and a reduction to Professional Fees to $2,000. (5) Payroll & Salary Expense: Analysis assumes the following Pay Schedule: Hours Per Week Per Hour Pay Total On-Site Manager 25 $18 $23,400 Maintenance Tech 25 $18 $23,400 Taxes & Benefits (20%) Total Payroll & Salary Expense $9,360 $56,160 (6) Non-Profit Fee: Analysis assumes a $15 per unit per month fee to continue qualifying for the 100% property tax exemption. REAL ESTATE TAX ANALYSIS Parcel #: 815200000000031 and 815200000000032 2018 Proforma Land $364,400 $375,332 Improvements $1,671,076 $1,721,208 Total Market Value $2,035,476 $2,096,540 Exemptions $2,035,476 $2,096,540 Value after Exemptions $0 $0 Assessment Ratio 100.00% 100.00% Assessed Value $0 $0 Tax Rate 1.453% 1.453% Ad Valorem Taxes $0 $0 Misc. Taxes $209 $215 Total Taxes Due $209 $215 Notes The property is currently subject to a 100% tax abatement. Analysis assumes that the real estate tax abatement will continue. 16 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Cash Flow PROPERTY CASH FLOW ANALYSIS - ASSUMPTIONS YEAR 1 OPERATIONS BASED ON Proforma Gross Potential Rent Growth NA 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 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 -5.00% -4.00% -3.00% -2.00% -1.00% 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 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 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 Gross Potential Rent $430,440 $441,201 $452,231 $463,537 $475,125 $487,003 $499,178 $511,658 $524,449 $537,561 Gain (Loss) to Lease ($21,522) ($17,648) ($13,567) ($9,271) ($4,751) $0 $0 $0 $0 $0 POTENTIAL RENTAL INCOME $408,918 $423,553 $438,664 $454,266 $470,374 $487,003 $499,178 $511,658 $524,449 $537,561 Economic Operational Loss Vacancy Loss ($16,357) ($16,942) ($17,547) ($18,171) ($18,815) ($19,480) ($19,967) ($20,466) ($20,978) ($21,502) 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 ($16,357) ($16,942) ($17,547) ($18,171) ($18,815) ($19,480) ($19,967) ($20,466) ($20,978) ($21,502) NET RENTAL INCOME $392,561 $406,611 $421,118 $436,095 $451,559 $467,523 $479,211 $491,192 $503,471 $516,058 Total Other Income $32,778 $33,598 $34,438 $35,299 $36,181 $37,086 $38,013 $38,963 $39,937 $40,936 EFFECTIVE GROSS INCOME $425,340 $440,209 $455,555 $471,394 $487,740 $504,609 $517,224 $530,155 $543,409 $556,994 OPERATIONAL EXPENSES FIXED OPERATIONAL EXPENSE Total Real Estate Property Taxes $215 $222 $229 $235 $243 $250 $257 $265 $273 $281 Total Property Insurance Expense $7,592 $7,782 $7,977 $8,176 $8,380 $8,590 $8,805 $9,025 $9,250 $9,482 Total Property Utility Expense $62,881 $64,453 $66,064 $67,716 $69,408 $71,144 $72,922 $74,745 $76,614 $78,529 TOTAL FIXED OPERATIONAL EXP $70,688 $72,457 $74,269 $76,127 $78,031 $79,983 $81,984 $84,035 $86,137 $88,292 VARIABLE OPERATIONAL EXPENSE Total Maint. Contract Services $6,605 $6,770 $6,939 $7,113 $7,291 $7,473 $7,660 $7,851 $8,048 $8,249 Total Repairs & Maintenance $16,275 $16,682 $17,099 $17,526 $17,964 $18,414 $18,874 $19,346 $19,829 $20,325 Total Administrative Expenses $15,456 $15,843 $16,239 $16,645 $17,061 $17,487 $17,924 $18,373 $18,832 $19,303 Total Leasing & Marketing $2,268 $2,325 $2,383 $2,443 $2,504 $2,566 $2,631 $2,696 $2,764 $2,833 Total Payroll and Salary Expenses $56,160 $57,564 $59,003 $60,478 $61,990 $63,540 $65,128 $66,757 $68,426 $70,136 Property Management Fee $19,140 $19,809 $20,500 $21,213 $21,948 $22,707 $23,275 $23,857 $24,453 $25,065 Non-Profit Fee $9,180 $9,180 $9,180 $9,180 $9,180 $9,180 $9,180 $9,180 $9,180 $9,180 TOTAL VARIABLE OPERATIONAL EXP $125,085 $128,173 $131,343 $134,598 $137,938 $141,368 $144,672 $148,060 $151,532 $155,090 TOTAL FIXED & VARIABLE EXPENSE $195,773 $200,630 $205,612 $210,725 $215,970 $221,351 $226,657 $232,095 $237,669 $243,383 Replacement Reserves $15,300 $15,300 $15,300 $15,300 $15,300 $15,300 $15,300 $15,300 $15,300 $15,300 TOTAL OPERATING EXPENSES $211,073 $215,930 $220,912 $226,025 $231,270 $236,651 $241,957 $247,395 $252,969 $258,683 PROPERTY NET OPERATING INCOME $214,267 $224,279 $234,643 $245,370 $256,471 $267,958 $275,268 $282,760 $290,440 $298,311 1ST MTG DEBT SERVICE EXPENSES First Mortgage Interest $100,709 $98,979 $97,173 $95,289 $93,321 $91,268 $89,124 $86,886 $84,550 $82,112 First Mortgage Principal $39,439 $41,169 $42,974 $44,859 $46,826 $48,880 $51,024 $53,261 $55,597 $58,036 TOTAL 1ST MTG DEBT SERVICE $140,148 $140,148 $140,148 $140,148 $140,148 $140,148 $140,148 $140,148 $140,148 $140,148 CASH FLOW AFTER DEBT SERVICE $74,119 $84,131 $94,495 $105,222 $116,323 $127,810 $135,120 $142,613 $150,292 $158,164 DEBT SERVICE COVERAGE RATIO 1.53 1.60 1.67 1.75 1.83 1.91 1.96 2.02 2.07 2.13 INDICATED CAPITALIZATION RATE 7.26% 7.60% 7.95% 8.32% 8.69% 9.08% 9.33% 9.59% 9.85% 10.11% 17 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Unit Mix UNIT TYPE SET-ASIDE NUMBER OF UNITS UNIT SIZE MARKET RENT RENT PER SF MAX RENT CURRENT UA MAX NET LIHTC RENT 2 BD 1 BTH 30% 7 831 $400 $0.48 $456 $56 $400 2 BD 1 BTH 60% 10 831 $857 $1.03 $913 $56 $857 2 BD UNIT TOTAL 17 14,127 $11,370 $12,322 $11,370 2 BD UNIT AVG 831 $669 $0.80 $725 $669 3 BD 2 BTH 30% 12 1,036 $443 $0.43 $527 $84 $443 3 BD 2 BTH 60% 9 1,036 $971 $0.94 $1,055 $84 $971 3 BD UNIT TOTAL 21 21,756 $14,055 $15,819 $14,055 3 BD UNIT AVG 1,036 $669 $0.65 $753 $669 4 BD 2 BTH 30% 6 1,166 $491 $0.42 $588 $97 $491 4 BD 2 BTH 30% 1 1,036 $491 $0.47 $588 $97 $491 4 BD 2 BTH 60% 4 1,166 $1,080 $0.93 $1,177 $97 $1,080 4 BD 2 BTH 60% 2 1,183 $1,080 $0.91 $1,177 $97 $1,080 4 BD UNIT TOTAL 13 15,062 $9,917 $11,178 $9,917 4 BD UNIT AVG 1,159 $763 $0.66 $860 $763 TOTAL 51 50,945 $35,342 $39,319 $35,342 AVERAGE 999 $693 $0.69 $771 $693 * The unit mix above was based on the Market Rent on the 5/31/2017 Rent Roll provided and the 5/1/2017 Utility Allowance Schedule. Analysis assumes all 2 bedroom units at 831 sf. AFFORDABILITY RESTRICTIONS LIHTC Regulatory Agreement: 26 units at 30% AMI and the remainder at 60% AMI, with at least 10 units set aside for Large Households and at least 10 units set aside for persons with Disabilities. Restrictions run for an additional period of 22 years for the Project, with a total project compliance period of 40 years. 18 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Whitman County Effective Year: 2017 Area Median Income: $67,200 Northwood Manor 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 30% and 60% of the local Area Median Income (AMI) for the county. Tax Credit Property Income Limits INCOME 30% 60% 1 Person $14,220 $28,440 2 Person $16,230 $32,460 3 Person $18,270 $36,540 4 Person $20,280 $40,560 5 Person $21,930 $43,860 6 Person $23,550 $47,100 7 Person $25,170 $50,340 Tax Credit Maximum Allowable Rents Set Aside Unit Type # of Units Max Rent UA Max Net Rent 30% 2 BD 7 $456 $56 $400 60% 2 BD 10 $913 $56 $857 30% 3 BD 12 $527 $84 $443 60% 3 BD 9 $1,055 $84 $971 30% 4 BD 7 $588 $97 $491 60% 4 BD 6 $1,177 $97 $1,080 Unit Breakdown By Unit Type $780 $760 Market Rents to Net Max Tax Credit Rents $763 $763 26% 33% $740 $720 $700 41% 2 BD 3 BD 4 BD $680 $660 $640 $620 $669 $669 $669 $669 2 BD 3 BD 4 BD Asking Rent Net Max Rent 19 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
AMI Growth Rate Year AMI % Change 2012 $61,700-2013 $65,500 6.16% 2014 $64,700 (1.22%) 2015 $67,600 4.48% 2016 $65,400 (3.25%) 2017 $67,200 2.75% 3 Yr Avg 1.33% 5 Yr Avg 1.78% $69,000 $68,000 $67,000 $66,000 $65,000 $64,000 $63,000 $62,000 $61,000 $60,000 $59,000 $58,000 2012 2013 2014 2015 2016 2017 *The high watermark year is 2015 at $67,600 Max Allowable LIHTC Rent Growth- 2BD/ 60% Year Rent % Change 2012 $834-2013 $874 4.80% 2014 $874 0.00% 2015 $913 4.46% 2016 $913 0.00% 2017 $913 0.00% 3 Yr Avg 1.49% 5 Yr Avg 1.85% $920 $900 $880 $860 $840 $820 $800 $780 2012 2013 2014 2015 2016 2017 SOURCE: novoco.com 20 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
FMR Averages Year FMR Avg. % Change 2012 $988-2013 $1,058 7.05% 2014 $995 (5.89%) 2015 $1,039 4.42% 2016 $1,101 5.97% 2017 $1,077 (2.21%) 3 Yr Avg 2.73% 5 Yr Avg 1.87% $1,120 $1,100 $1,080 $1,060 $1,040 $1,020 $1,000 $980 2012 2013 2014 2015 2016 2017 Fair Market Rents Year 2 BD 3 BD 4 BD 2012 $716 $1,010 $1,238 2013 $749 $1,104 $1,320 2014 $705 $1,039 $1,242 2015 $736 $1,085 $1,297 2016 $786 $1,146 $1,372 2017 $766 $1,115 $1,350 SOURCE: novoco.com 21 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Rent Comparables NORTHWOOD MANOR OCCUPANCY COMPS AVERAGE OCCUPANCY NORTHWOOD MANOR RENT/SF COMPS AVERAGE RENT/SF 92% 95% $0.69 $1.08 22 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Rent Comparables Map A I C E D G B H F Northwood Manor D Emerald Downs Apts. G Pimlico Apts. A Palouse Trace Apts. E Churchill Downs Apts. H The Residence at Whispering Hills Apts. B The Outlook Apts. F Wil-Ru Apts. I Pine Ridge Apts. C Providence Court Apts. 23 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Occupancy & Rent per SF Occupancy- 95% Average 100% 98% 96% 94% 92% 90% 88% 86% 84% 82% 80% * A B C D E F G H I Rent Per SF- $1.08 Average $1.30 $1.20 $1.10 $1.00 $0.90 $0.80 $0.70 $0.60 $0.50 * A B C D E F G H I Northwood Manor D Emerald Downs Apts. G Pimlico Apts. A Palouse Trace Apts. E Churchill Downs Apts. H The Residence at Whispering Hills Apts. B The Outlook Apts. F Wil-Ru Apts. I Pine Ridge Apts. C Providence Court Apts. 24 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Rent Comparables NORTHWOOD MANOR 51 UNITS OCCUPANCY: 92% YEAR BUILT: 1998 1590 NE Northwood Drive Pullman, WA 99163 Unit Type # of Units Rent SF Rent Per SF 2BD 1BTH- 30% 7 $400 831 $0.48 2BD 1BTH- 60% 10 $857 831 $1.03 3BD 2BTH- 30% 12 $443 1,036 $0.43 3BD 2BTH- 60% 9 $971 1,036 $0.94 4BD 2BTH- 30% 6 $491 1,166 $0.42 4BD 2BTH- 30% 1 $491 1,036 $0.47 4BD 2 BTH- 60% 4 $1,080 1,166 $0.93 4BD 2 BTH- 60% 2 $1,080 1,183 $0.91 TOTALS/AVG. 51 $693 999 $0.69 A PALOUSE TRACE 51 UNITS OCCUPANCY: 93% YEAR BUILT: 1995 Unit Type # of Units Rent SF Rent Per SF 2BD 2BTH 13 $522 835 $0.63 3BD 2BTH 26 $795 1,060 $0.75 4BD 2BTH 12 $895 1,280 $0.70 TOTALS/AVG. 51 $749 1,054 $0.71 *LIHTC Property with 60% Units 375 NE Terre View Drive Pullman, WA 99163 Distance to Subject: 1.8 miles 25 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Rent Comparables B THE OUTLOOK 51 UNITS OCCUPANCY: 90% YEAR BUILT: 1997 Unit Type # of Units Rent SF Rent Per SF 2BD 1BTH 26 $752 794 $0.95 3BD 2BTH 25 $830 1,000 $0.83 TOTALS/AVG. 51 $790 895 $0.88 *LIHTC Property with 60% Units 620 NE Kamiaken Street Pullman, WA 99163 Distance to Subject: 2.3 miles C PROVIDENCE COURT 216 UNITS OCCUPANCY: 98% YEAR BUILT: 1994 Unit Type # of Units Rent SF Rent Per SF 1BD 1BTH 24 $644 552 $1.17 2BD 2BTH 156 $910 785 $1.16 3BD 2BTH 36 $1,275 985 $1.29 TOTALS/AVG. 216 $941 792 $1.19 880 NE Providence Court Pullman, WA 99163 Distance to Subject: 1.1 miles 26 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Rent Comparables D EMERALD DOWNS 240 UNITS OCCUPANCY: 100% YEAR BUILT: 2000 Unit Type # of Units Rent SF Rent Per SF 1BD 1BTH 80 $644 584 $1.10 2BD 1BTH 80 $850 776 $1.10 3BD 2.5BTH 80 $1,500 1,298 $1.16 TOTALS/AVG. 240 $998 886 $1.13 910 NE Providence Court Pullman, WA 99163 Distance to Subject: 1.1 miles E CHURCHILL DOWNS 203 UNITS OCCUPANCY: 94% YEAR BUILT: 2003 Unit Type # of Units Rent SF Rent Per SF 1BD 1BTH 51 $644 584 $1.10 2BD 2BTH 51 $900 836 $1.08 3BD 2BTH 101 $1,388 1,088 $1.28 TOTALS/AVG. 203 $1,078 898 $1.20 1365 NE Brandi Way Pullman, WA 99163 Distance to Subject: 1.3 miles 27 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Rent Comparables F WIL-RU 114 UNITS OCCUPANCY: 97% YEAR BUILT: 1967 REHABBED: 2012 Unit Type # of Units Rent SF Rent Per SF STUDIO 4 $550 400 $1.38 2BD 2BTH 35 $625 570 $1.10 1BD 1BTH 73 $734 770 $0.95 2BD 2BTH 2 $950 1,200 $0.79 TOTALS/AVG. 114 $698 703 $0.99 1615 SE Bleanser Drive Pullman, WA 99163 Distance to Subject: 1.6 miles G PIMLICO 361 UNITS OCCUPANCY: 95% YEAR BUILT: 2013 Unit Type # of Units Rent SF Rent Per SF 1BD 1BTH 90 $694 584 $1.19 2BD 2BTH 205 $950 746 $1.27 3BD 2BTH 66 $1,395 1,008 $1.38 TOTALS/AVG. 361 $968 754 $1.28 1455 NE Brandi Way Pullman, WA 99163 Distance to Subject: 1.7 miles 28 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Rent Comparables H THE RESIDENCE AT WHISPERING HILLS 150 UNITS OCCUPANCY: 95% YEAR BUILT: 2013 & 2017 Unit Type # of Units Rent SF Rent Per SF 1BD 1BTH 56 $975 775 $1.26 2BD 2BTH 48 $1,150 1,002 $1.15 3BD 2BTH 46 $1,375 1,228 $1.12 TOTALS/AVG. 150 $1,154 987 $1.17 640 SW Golden Hills Drive Pullman, WA 99163 Distance to Subject: 1.9 miles I PINE RIDGE 140 UNITS OCCUPANCY: 96% YEAR BUILT: 2002 Unit Type # of Units Rent SF Rent Per SF 1BD 1BTH 84 $624 552 $1.13 2BD 2BTH 48 $850 720 $1.18 3BD 2BTH 8 $1,200 985 $1.22 TOTALS/AVG. 140 $734 634 $1.16 1890 NE Merman Drive Pullman, WA 99163 Distance to Subject: 2.2 miles 29 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Demographics PULLMAN MEDIAN HOME COST PULLMAN MEDIAN RENT PULLMAN UNEMPLOYMENT RATE $219,700 $705 4.1% (4/2017) PULLMAN JOB GROWTH 0.7% (since 3/2017) SOURCE: homefacts.com, areavibes.com 30 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
Demographic Analysis POPULATION 1 MILE 3 MILES 5 MILES 2017 Estimated Population 20,381 34,065 34,952 Population Growth 2010-2017 10.77% 12.04% 11.95% HOUSEHOLDS 2017 Estimated Households 6,926 12,599 12,999 Household Growth 2010-2017 11.31% 12.13% 12.00% INCOME 2017 Household Income: Average $47,281 $57,520 $58,162 2017 Household Income: Median $22,914 $27,711 $28,596 HOUSEHOLD INCOME LEVELS BY POPULATION 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 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+ RENTER 69% OCCUPIED 94% VACANT 6% OWNER 31% SOURCE: CoStar 31 LIHTC ADVISORS NORTHWOOD MANOR 51 UNITS
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