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					Pittsburgh Place Lofts
PRELIMINARY DEVELOPMENT PRO-FORMA (DETERMINES CONSTRUCTION AND DEVELOPMENT COST ALONG WITH EQUITY AND MORTGAGE)

                                                           THIS COLUMN WITH BLUE DEFINITIONS NEEDS TO BE COMPLETELY FILLED IN WITH YOUR ASSUMPTIONS
                  4-Dec-11                                 ALL RED NUMBERS NEED TO BE DETERMINED AND IMPUTED FOR EACH PROJECT

ASSUMPTIONS                                                NOTE: WHEN PRINTING PRINT ONLY 15 PAGES !!!!!!!!!!!
Interest rate is                      6.5%                 Current interest rate for the desire loan term and amortization period, based on research
Loan term in years                    30.00                Loan term of 30 years
Land cost is                          $        795,000.00 Given from research
Building Cost                          $            -      No existing building on this site
Project square foot size is                       48,000   Assumed Sq. Ft.
Retail area                                       12,000   First floor of building
Residential area                                  36,000   Subsequent floors of building
Site Size                                           20473 From research
landscaping                            $        5,000.00   Assumed based on desired plantings
Site work                              $            2.00   SITE WORK SQUARE FOOTAGE PROVIDE YOUR ASSUMPTIONS (MEANS OR YOUR PROJECT NEEDS)
Retail sq ft cost                      $          150.00   Avg MKE retail sq. ft. cost
residential sq ft cost                 $          108.00   MKE averages for a 4 - 7 story apartment building based union wages
Furnishings                            $       25,000.00   SEPARATE COMMON AREA FURNISHINGS IF NEEDED
Equipment                             $0.00                SEPARATE EQUIPMENT FOR DEPRECIATION INCLUDES APPLIANCES, FURNITURE, EXERCISE EQUIPMENT
Rental rate retail                     $           15.00 PROPOSED RENTAL RATE BASED ON MARKET ANALYSIS AND/OR PRELEASED COMMITMENTS
Rental rate other                      $          800.00 RENTAL RATE FOR OTHER SUCH AS COMMERCIAL SPACE
Architects Fee                        6%                   Based on smaller and less-complex site
Engineering Fee                       1%                   Based on an overall-simple design
General conditions                    10%                  CONTRACTOR REIMBURSABLE DIRECT…VARIES BETWEEN 8 TO 12% OF THE HARD CONSTRUCTION COSTS
CM Overhead                           2%                   CONTRACTOR OVERHEAD COSTS TYPICALLY 2% or 0 AND INCLUDED IN GENERAL CONDITIONS
CM Fee                                3.50%                Based on relatively non-complex and small project
Expenses are triple net               yes                  Residents are responsible for utilities
Property tax rate                     0.026                TAX RATE PER THOUSAND OF ASSESSED VALUE
Construction financing cost           1.0%                 Based on research and relatively non-complex, small, and creditworthy
Permanent financing costs are         0.50%                Based on research and relatively non-complex, small, and creditworthy
Development Costs                     3%                   DEVELOPER OVERHEAD FOR COMPLETING THE PROJECT VARIES FORM 1-4%
Development Fee                       10%                  DEVELOPER FEE FOR COMPLETING THE PROJECT VARIES FROM 8-12% BASED ON COMPLEXITY, ECONOMICS, AND RISK
Construction Contingency              3.0%                 CONTRACTOR CONTROLS CONSTRUCTION CONTINGENCY, VARIES BETWEEN 2 TO 5 % BASED ON SIZE AND COMPLEXITY
Owner Contingency                     1.0%                 OWNER CONTROLS VARIES BETWEEN .5 TO 2% BASED ON SIZE AND COMPLEXITY
Construction duration                 24                   LENGTH OF THE PROJECT
Vacancy allowance                     5%                   OPERATIONAL VACANCY ALLOWANCE VARIES BETWEEN 4-10% BASED ON OCCUPANCY LEVEL
Required Developer equity             20.00%               Typically 20% for convential




4d1bb08a-2aa0-4c35-85d3-cad846ac02b8.xlsx                                                                  1                                                     12/4/20114:11 PM
Development Capital reserve                     $           25,000.00 MONEY FOR THE START UP OF A CAPITAL RESERVE ACCOUNT FOR FUTURE REPLACEMENTS
Development Operating reserve                   $           25,000.00 MONEY FOR THE START UP OF AN OPERATION RESERVE
Debt service coverage                          1.25                      Based on higher targer from bank because of lack of tax credit
Legal Allowance                                 $           40,000.00    DEPENDS ON THE COMPLEXITY OF THE PROJECT (ACQUISITION, CONTRACTS, LOAN, EQUITY, ENVIRONMENTAL)
Security system                                 $           12,000.00    For alarms and cameras
Annual Operating reserves                       $           (3,750.00)   DEPEND ON THE NUMBER OF UNITS (UNIT COUNT X ANNUAL PER UNIT RESERVE)
Annual Capital reserve                          $           (3,750.00)   DEPEND ON THE NUMBER OF UNITS (UNIT COUNT X ANNUAL PER UNIT RESERVE)
Parking monthly income                          $               65.00    MONTHLY PARKING INCOME BASED ON MARKET
Parking spots                                  40.00                     Based on 8000 sq. ft available after building construction with 200 sq. ft. max per stall
Laundry rental per month per unit               $                 -      No washer/dryer in units
number of tenants using laundry                0.00                      ESTIMATE THE NUMBER OF TENANTS THAT WILL USE LAUNDRY
Management fee                                 0.06                      PROPERTY MANAGEMENT FEE VARIES FROM 5-7% OF THE GROSS ANNUAL INCOME
Estimated property value                        $        5,509,088.00 CLOSE TO THE ALLOWABLE FIRST MORTGAGE
Number of 2 bedroom apartments market          20                        Based on site size and layout, and market analysis
Number of 1 bedroom apartments market          10                        Based on site size and layout, and market analysis
Number of 2 bedroom tax credit                 0                         No tax credit based on market analysis
number of 1 bedrooms tax credit                0                         No tax credit based on market analysis
Cap Rate                                       7.50%                     Based on Miwaukee market
Parking Income per month                        $              75.00 RENTAL COSTS FOR PARKING FROM MARKET ANALYSIS
Other Income MONTHLY                            $             100.00 OTHER INCOME SUCH AS LAUNDRY, LATE FEES, VENDING
Annual operating expenses                      35%                       Based on research, percenrage of income (triple net commercial tenants pay)
Builders Risk insurance                        1.000%                    Cost fo owner based on construction cost, complexity, and duration
Estimated construction loan amount              $       11,000,000.00    EVERYTHING BUT DEVELOPMENT FEE THIS NUMBER MUST BE EXTRAPOLATED OR ESTIMATED!!!
apartment rental 2 bedrooms-monthly market      $            2,000.00    Based on market analysis of rents in surrounding Third Ward area
apartment rental 1 bedrooms-monthly market      $            1,200.00    Based on market analysis of rents in surrounding Third Ward area
Apartment rental 1 bedroom - monthly tax credit $                 -      No tax credit based on market analysis
Apartment rental 2 bedroom - monthly tax credit $                 -      No tax credit based on market analysis
year one lease up reserve percentage                             0.25    Percentage of year 1 rental income to pay expenses during lease up
annual apartment capital reserve                $             (125.00)   TYPICAL ANNUAL RESERVE AMOUNT A BIT LESS FOR SENIOR HOUSING
apartment annual operating reserve              $             (125.00)   TYPICAL ANNUAL RESERVE AMOUNT A BIT LESS FOR SENIOR HOUSING
Replacement reserve for Commercial              $           (2,000.00)   ANNUAL RESERVE NEEDED FOR REPLACEMENT OF COMMERCIAL CONSTRUCTION ITEMS / DETERMINED BY AMOUNT OF SPACE
Soft Cost Contingency                          3.50%                     Based on medium size and medium level of uncertainties




4d1bb08a-2aa0-4c35-85d3-cad846ac02b8.xlsx                                                                                  2                                                      12/4/20114:11 PM
                                                                                    Pittsburgh Place Lofts
                              PRELIMINARY DEVELOPMENT PRO-FORMA (DETERMINES CONSTRUCTION AND DEVELOPMENT COST ALONG WITH EQUITY AND MORTGAGE)
                                                                              ESTIMATED REQUIREMENTS
                                                                              6.5% Interest Rate
                                                                                       4-Dec-11
                                                                                                                         Cost                    Summary     Depreciable Basis
      Acquisition Building                                                                                                  0
(1)   Acquisition Land                                                                                                795,000
      Total Acquisition                                                                                                                           $795,000                        $0
      Site Work                                                    20473 sf                      $2 sq ft              40,946
(1)   Landscaping                                                                                                       5,000
      Total Site Work                                                                                                                              $45,946                    $40,946
      Construction-Commercial                                      12000 sf                $150.00 /sf              1,800,000
      Construction-Residential                                     36000 sf                $108.00 /sf              3,888,000
      Total Building Construction Hard Costs                                                                                                    $5,688,000            $5,688,000
      General Conditions                                          10.00% of bldg construction                         568,800
      CM Overhead                                                  2.00% of bldg construction                         113,760
      CM Fee (Design Build Fee includes A & E)                     3.50% of bldg construction                         199,080                                     Total
                                                                                                                                   Total                        Acquisition
(a)   Furniture (FFE)                                                                                                  25,000   Development                        3%
                                                                                                                                  Related
      Security System Permanent                                                                                        12,000      Costs
                                                                                                                                    15%
      Permits Outside of Construction                                                                                   4,000
      Security During Construction-Allowance                                                                            5,000
(a)   Equipment                                                                                                             0
                                                                                                                                                                Total Hard
      Architect                                                    6.00% of bldg construction                         344,037                                  Construction
                                                                                                                                                                  Cost
      Engineering                                                  0.50% of bldg construction                          28,670            Total
                                                                                                                                     Construction                  54%
                                                                                                                                        Related
      Soil Testing for Structural                                                                                       4,000            15%
      Survey allowance                                                                                                  5,000
      Public Art Allowance                                                                                              5,000
      Contingency-Project                                          3.00% of bldg construction                         172,018
      Contingency-Owner                                            1.00% of bldg construction                          57,339
      Total Construction Related                                                                                                                $1,543,704            $1,543,704
      Legal                                                                                                            40,000
      Predevelopment Costs incurred prior to financing                                                                 10,000
      Insurance/ Builders Risk                                    1.000% of construction costs                         57,339
      Construction Interest                                   $11,000,000 for             24        mo                715,000
      Construction Financing Costs                                   1.0%                                             110,000
      R.E. Taxes During Construction                                                                                   10,000
(1)   Permanent Loan Origination Fee                                 0.5%                                              27,545
      Title/Recording Allowance                                                                                         5,000
      Appraisal                                                                                                         8,000
      Market Study                                                                                                          0
      Environmental Reports                                                                                             5,000
      Government Fees                                                                                                       0
      Marketing                                                                                                        10,000
      Consultants                                                                                                      25,000
(1)   Cost Certification (accounting)                                                                                   3,000
      Miscellaneous                                                                                                     5,000
      LLC (partnership) Organization                                                                                    5,000
(1)   Tax Opinion                                                                                                           0
      Total Development Soft Costs                                                                                                              $1,035,885            $1,005,339
      Developer's Overhead                                                    3.0% project costs                    $242,180
      Developer's Fee                                                       10.0% project costs                     $910,854
      Total Developer's Costs                                                                                                                   $1,153,033            $1,153,033
(1)   First Year Rent Up Reserve                                $836,400                    25.00%                    209,100
(1)   Operation Reserve                                                                                                25,000
      Soft Cost Contingency                                                                     4%                     76,612
      Total Reserves                                                                                                                              $310,712                    $76,612

      TOTAL REQUIREMENTS                                                                                                                       $10,572,280            $9,507,635

      non depreciable land                                      $795,000
      non depreciable other                                     $269,645




         4d1bb08a-2aa0-4c35-85d3-cad846ac02b8.xlsx                                                  Page 3                                                                              4:11 PM
typically accelerated depreciation items
Total Acquisition                                $795,000      8%
Total Hard Construction Cost                    $5,733,946    54%
Total Construction Related                      $1,543,704    15%
Total Development Related Costs                 $2,499,630    24%
Total Project Costs                            $10,572,280   100%




   4d1bb08a-2aa0-4c35-85d3-cad846ac02b8.xlsx                        Page 4   4:11 PM
                                                             Pittsburgh Place Lofts
PRELIMINARY DEVELOPMENT PRO-FORMA (DETERMINES CONSTRUCTION AND DEVELOPMENT COST ALONG WITH EQUITY AND MORTGAGE)
                               ESTIMATED FINANCIAL SOURCES
                                                 4-Dec-11

            Category                    Conventional Percent                                      Financing Source
        1   Developer / Investor Equity               20.00% yes                                            2,114,456
        2   First Mortgage                            52.11%                                                5,509,088
        3   Second Mortgage                            0.00%                                                        0
        4   Third Mortgage                             0.00%                                                        0
        5   Remaining GAP                             27.89%                                                2,948,736
            TOTAL SOURCES                           100.00%                                               $10,572,280

            Note grants or Gap can be structured as deferred loans in order to maximize basis

            Available equity from tax credits                                                                     $0
            Debt Service Coverage Ratio                                                                          1.22

            GRANTS & CITY MORTGAGES                                                               TARGET GRANT NUMBER NO HIGHER THAN 15%
            AS % OF TOTAL SOURCES                                                                           27.89%

            Total of Grants only                                                                           $2,948,736
                                                                                                                                     0

                                                              Remaining GAP
                                                                  28%


                                                   Second                                Developer /
                                                  Mortgage                             Investor Equity
                                                     0%                                     20%




                                     Third Mortgage
                                           0%
                                                                              First Mortgage
                                                                                    52%




       4d1bb08a-2aa0-4c35-85d3-cad846ac02b8.xlsx                                                  Page 5                                   4:11 PM
                                          Pittsburgh Place Lofts
MINARY DEVELOPMENT PRO-FORMA (DETERMINES CONSTRUCTION AND DEVELOPMENT COST ALONG WITH EQUITY AND MORTGAGE)
                                                                                     4-Dec-11
                                           SQUARE FOOTAGES


                                                            Net           Total                Total           Other
                                             Use            SF          Residential          Commercial
        Residential Market Rate
             2 Bedroom                       Residential     12,000                 12,000                0
             1 Bedroom                       Residential     16,000                 16,000                0
             Subtotal                                        28,000                 28,000                0            0


        Commercial
            Area 1                           Commercial      12,000                     0         12,000
            Subtotal                                         12,000                     0         12,000               0




        Tax Credit
             4 Bedroom                       Residential          0                     0                 0            0
             3 Bedroom                       Residential          0                     0                 0            0
             2 Bedroom                       Residential                                0                 0            0
             1 Bedroom                       Residential          0                     0                 0            0
             Subtotal                                             0                     0                 0            0

        Totals                                               40,000                 28,000        12,000               0
             NOTE: ALL SQUARE FOOTAGES MUST BE VERIFIED!!
             Total Commercial Space                12,000
                                                                      Total Other                      Total
             Total Residential Space               28,000               Space                       Commercial
             Total Other Space                          0               0.00%                         Space
             Total Net Square Footage              40,000                                             30.00%
                                                                                                   Total
                                                                                                 Residential
             percentage residential market         70.00%                                          Space
             percentage commercial                 30.00%                                         70.00%
             Percentage other tax credit            0.00%




         4d1bb08a-2aa0-4c35-85d3-cad846ac02b8.xlsx                                     Page 6                              4:11 PM
                                                                                Pittsburgh Place Lofts
                PRELIMINARY DEVELOPMENT PRO-FORMA (DETERMINES CONSTRUCTION AND DEVELOPMENT COST ALONG WITH EQUITY AND MORTGAGE)
                                                             PRELIMINARY RENTAL ASSUMPTIONS

                 RESIDENTIAL
                 Market Units                           Unit Size                   Monthly Rent                                                                          Total
                      20                                2 Bedroom                            $2,000                                                                         480,000
                      10                                1 Bedroom                              1200                                                                         144,000
Subtotal:             30                                                                                                       Total Residential Income Market rate        $624,000


                 RESIDENTIAL
                  Tax credit                            Unit Size                   Monthly Rent                                                                          Total
                      0                                 3 Bedroom                                    $0                                                                           $0
                      0                                 2 Bedroom                                    $0                                                                            0
                      0                                 1 Bedroom                                     0                                                                            0
Subtotal:             0                                                                                                        Total Residential Income Tax credit                $0

            Other Income              number            Parking       number     Monthly Laundry                   Other       Miscellaneous                             Total
                                               40.00           $65.00                                                                                                    $31,200.00
                                                                            0.00           $0.00                                                                              $0.00
                                                                                                                            1 $                        100.00             $1,200.00
                                                                                                                              Total Other                                $32,400.00

                  COMMERCIAL
                   Storefronts                                    SF                Net Rental Rate (2)                                                               Annual Income
            Area 1                                            12,000 sf total                $15.00 per sf                                                                 $180,000
            Area 2                                                 0 sf total               $800.00 per sf                                                                        0
            Total Commercial Income                           12,000 sf total                                                  Total Commercial Income                     $180,000




            INCOME SUMMARY                                           (1) Residential Residents Responsible for Apartment Utilities
            Total Residential         $624,000.00                    (2) Triple Net Rental Rate, Tenants are responsible for utility, taxes and operational costs
            Total Other Income        $32,400.00
            Total Commercial          $180,000.00
            Total income              $836,400.00


                                                                                                                               PERCENTAGE OF TAX CREDIT UNITS TO MARKET RATE
                                              Total                                                                                                   UNITS    PERCENTAGE
                                           Commercial
                                             21.52%                                                                            MARKET RATE UNITS            30      100.00%
                                                                                                                               TAX CREDIT UNITS              0        0.00%
                     Total Other
                      Income                                                                                                   TOTAL RESIDENTIAL UNITS      30
                       3.87%

                                               Total
                                             Residential
                                              74.61%




     4d1bb08a-2aa0-4c35-85d3-cad846ac02b8.xlsx                                                                                Page 7                                                   4:11 PM
                                       Pittsburgh Place Lofts
ARY DEVELOPMENT PRO-FORMA (DETERMINES CONSTRUCTION AND DEVELOPMENT COST ALONG WITH EQUITY AND MORTGAGE)

                                                             PROJECT AT A GLANCE

                                                                               State             Fed.             Fed.               Fed.          WHEDA
                                                                               HTC               HTC              Acq.               LIHTC         ALLOWED

                 Total Project Cost                                                $10,572,280
                 Basis                                                               9,507,635      9,507,635                   0      9,507,635
                 Grants                                                                      0     -2,948,736                   0     -2,948,736
                 Deduct Fed. Hist. Credits (Res. Portion Only):
                 Subtotal                                                            9,507,635        6,558,899                 0      6,558,899
                 Residential Fraction:                        100.00%                                                      70.00%        70.00%
                 Residential Basis:                                                                                             0      4,591,229
                 Qualified Census Tract x 30%?                        YES                                                              1,377,369
                 Project Eligible Basis                    HISTORIC NO                      0                0                   0     5,968,598
                 Applicable Fraction of low income units: 0.00%                NA                NA                         0.00%         0.00%
                 Qualified Basis                                               NA                NA                              0             0
                 Applicable Rate                                                       5.000%          20.000%             4.000%        9.000%
                 Credit Amount Calculated:                                                   0                0                  0             0
                 Total Credit over                     10 years                              0                0                  0             0
                 Price Per Credit:                                                      $0.500           $0.900             $0.850        $0.850

                 Equity Raised:                                                            $0               $0                 $0            $0


                                                                                   Residential   Commercial       Combination

                 Maximum Available Equity                                                   $0                0                 $0
                 First Mortgage                                                      5,509,088                0          5,509,088
                 Second Mortgage                                                                              0                  0
                 Deferred Sale                                                                                0                  0
                 Shortfall                                                                  0                0                  0
                                               Pittsburgh Place Lofts
PRELIMINARY DEVELOPMENT PRO-FORMA (DETERMINES CONSTRUCTION AND DEVELOPMENT COST ALONG WITH EQUITY AND MORTGAGE)

                                         PRELIMINARY INCOME AND EXPENSE ASSUMPTIONS

                                                                                             4-Dec-11

                     Rents - Residential (utilities by tenants)                                 $624,000
                     Rents - Commercial (triple net)                                             180,000
                     Other Income                                                                 32,400
                     Subtotal Gross Potential Income                                             836,400
                     Vacancy Allowance                    5.00%                                  -41,820
                     TOTAL INCOME                                                               $794,580

                     Operating Expenses                                                          134,867
                     Real Estate Taxes                                                           143,236
                     TOTAL OPERATING EXPENSES                                                   $278,103


                     Net Operating Income                                                       $516,477

                     Annual commercial reserve                                                     -2,000
                     Annual Capital Reserve                            -$125 per unit             -$3,750
                     Annual Operating Reserve                          -$125 per unit             -$3,750
                     Total Reserves                                                               -$9,500


                     TOTAL NET INCOME                                                           $506,977


                     MAXIMUM SUPPORTABLE MORTGAGE CALCULATIONS

                                 Interest Rate          6.50%
                                 Term                    30.00 years

                      Mortgage Calculation Based on CAP Rate
                      Cap Rate                                   7.50%
                      Property Value                         $6,886,360
                      Loan to Value Ratio                       80.00%
                      Maximum Supportable Mortgage           $5,509,088
                      Yearly P & I Payments                    $421,872                       Project's
                      Debt Coverage Ratio based on NOI:            1.22                      Maximum
       After Reserves Debt Coverage Ratio based on TNI:            1.20                     Supportable
                                                                                             Mortgage:
                                                                                             $5,509,088
                                                                                              Based on
                     Mortgage Calculation Based on DCR                                     the higher of
                     Min. Acceptable DCR based on NOI:                  1.25            the two calculations
                     Income Available for Debt Service              $405,582
                     Maximum Supportable Mortgage                 $5,296,359
                     Cash flow available for investors              $101,395




           4d1bb08a-2aa0-4c35-85d3-cad846ac02b8.xlsx                                                        Page 9   4:11 PM
                                     Pittsburgh Place Lofts
Y DEVELOPMENT PRO-FORMA (DETERMINES CONSTRUCTION AND DEVELOPMENT COST ALONG WITH EQUITY AND MORTGAGE)
                                                                           4-Dec-11
                                DETAILED OPERATING EXPENSES
                         AFTER ABSORPTION (need to verify with the market)




              ADMINISTRATIVE                                          All red number to be verified in marketplace with similar properties
                   Management Salaries                      $10,000
                   Office Overhead                            3,000
                   Legal                                      2,000
                   Accounting                                 2,000
                   Insurance                                  3,000
                                                                  0
                    Other                                         0
                                              Subtotal                      $20,000

              MARKETING
                  Advertising                                 3,000
                  Special Events                                  0
                  Other                                           0
                                              Subtotal                       $3,000

              GROUNDS/SECURITY
                  Security/Personnel                              0
                  Snow Removal                                2,000
                  Landscaping                                 2,000
                  Other                                           0
                                              Subtotal                       $4,000

              CLEANING
                   Outside Services                           8,000
                   Cleaning Personnel                         1,000
                   Supplies/Materials                           500
                   Trash removal                              3,000
                   Other                                          0
                                              Subtotal                      $12,500

              REPAIRS/MAINTENANCE
                   Maintenance Personnel                     15,000
                   Elevator Service                           5,000
                   HVAC Service                               1,000
                   Electrical Service                           500
                   Plumbing Service                             500
                   Repairs                                    1,000
                   Pest Control                                 500
                   Other                                          0
                                              Subtotal                      $23,500

              UTILITIES
                    Gas                                      10,000
                    Electric                                 20,000
                    Water/Sewer                               5,000
                                              Subtotal                      $35,000

              OTHER                                                         $50,000

              MANAGEMENT FEES                                               $47,675           6.00% of total Income


              REAL ESTATE TAXES                                            $143,236            0.026 municipal tax rate

              TOTAL ESTIMATED OPERATING EXPENSES                           $338,911
              TOTAL REQUIRED OPERATING EXPENSES                            $278,103          35.00% of total Income
              TOTAL EXPENSES NEEDED TO REDUCE                               $60,808
              TOTAL OPERATING EXPENSES LESS TAXES                         $134,867




                4d1bb08a-2aa0-4c35-85d3-cad846ac02b8.xlsx                                                                                    Page 10   4:11 PM

				
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