EXHIBIT 1: INVESTMENT CHARACTERISTICS AND ASSUMPTIONS

Sunset
Apartments
Property Attributes
Location
Building Use
Building Age (in Years)
Rentable Area/Units/Spaces

Up&Coming Neighborhood Los Angeles

Mixed-Use
0
341,862
44,972
568

1st-yr Average Annual Base Rent

Acquisition Cost
Acquisition Cost (per sq.ft/per unit)
Holding Period (in Years)

$36.00
$42.00
$1,680.00
$
$

Going-Out Capitalization Rate

105,000,000
271
10
7.50%

1st Year Base Rent Revenues

Base Rent Growth Rate
Ancillary Income (Parking) Growth Rate
Projected Vacancy
Bad Debt

14,195,856
3.5%
3.0%
6.0%
3.0%

1st Year Annual Operating Expense

Break operating expenses into different section

6,210,000

Annual Operating Expense Increase

First Year RE Taxes
Annual Real Estate Tax Increase

3.0%
12.0%
3.5%

Annual Replacement Reserve

Annual Lease Payments

3.5%
$

Broker Commission at Sale

2%

Equity Investment

33,250,000

Debt Financing
First Mortgage Loan Amount
First Mortgage LTV

71,750,000
68.3%

Second Mortgage Loan Amount

Second Mortgage LTV
First Mortgage Interest Rate (%)
Second Mortgage Interest Rate

6.5%

First Mortgage Term-to-Maturity (in Years)

Second Mortgage Term-to-Maturity (in Years)

10

First Mortgage Principal Balance at End-of-Term

Second Mortgage Principal Balance at End-of-Term

$60,540,433

First Mortgage Amortization Term (in Years)

Second Mortgage Amortization Term (in Years)

First Mortgage Annual Debt Payment

30

5,594,239

Second Mortgage Annual Debt Payment

First Mortgage Loan Points
Second Mortgage Loan Points

1%

First Mortgage Lender Yield (%)

Second Mortgage Lender Yield (%)

6.65%

Debt-to-Equity Ratio

2.16

Year
2013
2016
2020

The Duke

Residential
Retail
Parking

Chicago near the loop

Class B
38
208,100 Commercial
60 Parking

Residential
Retail
Parking

$34.72 Commercial
$198,000.00 Parking and Other

$
$

45,000,000
216
10
8.50%

7,224,317
3.0%
3.0%
5.0%
0
$3,551,064.15

Potential Gross Revenue

3.0%
5.0% Potential Base Rental Revenue
3.0%

Potential Gross Revenue

1.0% Potential Base Rental Revenue

$

330,000
2%

18,000,000

27,000,000
60.0%

5.5%

10

20,203,969

25

717,500

2,012,833

1.5% $

405,000

5.72%

1.50

Sf Annual
68806
59197
80092

%Net Rentable area

33.00%
28.40%
38.50%

$
$
$

Annual Base Rent

1,764,984.00
2,382,647.00
2,686,367.00

ByLine
Distribution Center
Southern City
Flex Warehouse
0
75200 Industrial
10,200 Office space
500 Parking
20000 Additional sq footage

$8.00 sq ft
$9.75 sq ft

$
$

2018 growth 2%

7,600,600
89
10
8.00%
$683,200.00
2%
3.0%
0.0%
0.0%

20,500.00

3.0%
1.45 /Sq.Ft.
2.0%

3,000 Replacement
$15,000.00 Property and
5,500 Management
88-90 Replacement
2%

1,900,150

4180330
55.0%

Reserve
Casualty insurance
Fees
Cost per sq ft

1520120
20.00%
6.00%
12.00%
10
10
$
$

3,176,037
1,520,120

25
10

$327,013
$182,414
1.50% $
2.00% $

62,705
30,402

6.23%
12.36%
3.00

PSF
$
$
$

25.65
40.25
33.54

% of Total
25.10%
34.00%
39.00%

$
$
$

Reimburesment PSF
6.79
3.92
8.00

EXHIBIT 2: INCOME-AND-EXPENSE PRO-FORMA: SUNSET APARTMENTS

Base Rental Revenues

Parking Revenue
Expense Reimbursement Revenue

2010

2011

2012

14,195,856 $14,692,711 $15,206,956

954,240
0

$982,867
0

Total Potential Gross Revenue

15,150,096

15,675,578

Less:

Vancancies

(1,666,511)

(1,724,314)

Effective Gross Income (EGI)

13,483,585

13,951,265

Less:

Bad Debt

Less:

0
16,219,309
(973,750)
15,245,559

(404,508)

(418,538)

(457,367)

Operating Expenses

(4,448,591)

(4,582,049)

(4,719,510)

Real Estate Taxes

(1,703,503)

(1,763,125)

(1,824,835)

(530,253)

(548,645)

(567,676)

Replacement Reserve
Net Operating Income (NOI)

Less:

$1,012,353

Ground Lease Payments

Debt Service First Mortgage

6,396,731

6,638,907

7,676,172

(5,594,239)

(5,594,239)

(5,594,239)

(1.14)

(1.19)

(1.37)

Debt Service Second Mortgage

DSCR
Unlevered Cash Flow Before Taxes

$802,492

$1,044,668

$2,081,933

2013

2014

2015

2016

2017

2018

$15,739,199 $16,290,071 $16,860,224 $17,450,332 $18,061,093

$1,042,724
0

$1,074,006
0

$1,106,226
0

$1,139,412
0

$1,173,595
0

$18,693,231
$1,208,803
0

16,781,923

17,364,077

17,966,449

18,589,744

19,234,688

19,902,034

(1,007,831)

(1,043,105)

(1,079,614)

(1,117,400)

(1,156,509)

(1,196,987)

15,774,092

16,320,972

16,886,836

17,472,344

18,078,179

18,705,047

(473,223)

(489,629)

(506,605)

(524,170)

(542,345)

(561,151)

(4,861,095)

(5,006,928)

(5,157,136)

(5,311,850)

(5,471,206)

(5,635,342)

(1,888,704)

(1,954,809)

(2,023,227)

(2,094,040)

(2,167,331)

(2,243,188)

(587,367)

(607,743)

(628,826)

(650,641)

(673,214)

(696,571)

7,963,703

8,261,863

8,571,042

8,891,642

9,224,082

9,568,795

(5,594,239)

(5,594,239)

(5,594,239)

(5,594,239)

(5,594,239)

(5,594,239)

(1.42)

(1.48)

(1.53)

(1.59)

(1.65)

(1.71)

$2,369,464

$2,667,624

$2,976,803

$3,297,403

$3,629,843

$3,974,556

2019

2020

10

11

$19,347,495

$20,024,657

$1,245,067

$1,282,419

20,592,561

21,307,076

(1,238,882)

(1,282,242)

19,353,680

20,024,833

(580,610)

(600,745)

(5,804,402)

(5,978,534)

(2,321,699)

(2,402,959)

(720,740)

(745,748)

9,926,228

10,296,847

(5,594,239)
(1.77)
$4,331,989

$10,296,847

EXHIBIT 2: INCOME-AND-EXPENSE PRO-FORMA: THE DUKE

Base Rental Revenues

Expense Reimbursement Revenue

2010

2011

7,224,317

7,224,317

1,340,030

1,380,231
106,532

Operating Expense Reimbuersment

10,836

Property Tax Reimbyuresment

Parking and Other Income

Signage Revenue
Total Potential Gross Revenue
Less:
Vancancies

198,000

203,940

244,000

251,320

9,006,347

9,177,176

(361,216)

(361,216)

Vacancy Recovery

Effective Gross Income (EGI)

Less:
Bad Debt

Less:

Operating Expenses
Real Estate Taxes
Replacement Reserve

8,815,960

(3,551,064)

(3,657,596)

(361,216)

(372,052)

(72,243)

(72,243)

Tenant Improvements

Leasing Commisions

4,660,608

4,714,069

Reimburesment on Sq Ft.
Net Operating Income (NOI)

Less:

8,645,131

Ground Lease Payments

Debt Service First Mortgage

(330,000)

(330,000)

(2,012,833)

(2,012,833)

Debt Service Second Mortgage

DSCR

Unlevered Cash Flow Before Taxes

2.15

2.18

$2,317,775

$2,371,236

2010
Rent Increase (hypothetical)
Rent PSF
Original Leases Rent Payments

Overall Sq Ft
Square Feet Rolling Over
Percentage Resigning
Sq. Ft Resigning
New Rent Per Sq. Ft
Rent From Resigners

Square feet
Percetange New Lease
Sq Ft.
New Rent Per Sq. Ft
Rent Revenue
Less Vacancy for 9 Months
Less Two Months Free Rent
Income from New Rentals

$
$
$

7,224,317.00 $ 7,441,046.51
34.72 $
35.76
7,224,317.00 $ 7,224,317.00

Tenant Improvements
2014
On Resigning:
$
206,418.00
On New Leases
$
963,284.00

Leasing Commision
2014
On Resigning Leases $
494,000.37
On New Leases
$
988,000.73
Sum
$ 1,482,001.10

Income from Renewals

Income from New Rentals
Income from Original Leases less Lease Roll Over Square Footage
Total Base Rental Revenue:

Overall Sq Ft

2011

Square Feet Rolling Over

Percentage Resigning
Sq. Ft Resigning
New Rent Per Sq. Ft
Rent From Resigners

Square feet
Percetange New Lease
Sq Ft.
New Rent Per Sq. Ft
Rent Revenue
Less Vacancy for 9 Months
Less Two Months Free Rent
Income from New Rentals
Income from Renewals
Income from New Rentals
Income from Original Leases less Lease Roll Over Square Footage
Total Base Rental Revenue:

Complete SUM

2010
7,224,317.00

2011
$7,224,317.00

2012

2013

2014

2015

2016

7,224,317

7,224,317

6,422,690

8,147,770

8,147,770

1,421,638

1,464,287

1,508,216

1,553,462

1,600,066

109,728

113,020

116,410

119,903

123,500

11,162

11,496

11,841

12,197

12,562

210,058

216,360

222,851

229,536

236,422

258,860

266,625

274,624

282,863

291,349

9,235,762

9,296,105

8,556,632

10,345,731

10,411,670

(361,216)

(361,216)

(321,134)

(407,389)

(407,389)

467,193
8,874,546

8,934,890

8,702,690

9,938,342

10,004,281

(3,767,324)

(3,880,344)

(3,996,754)

(4,116,657)

(4,240,156)

(383,214)

(394,710)

(406,552)

(418,748)

(431,311)

(72,243)

(72,243)

(64,227)

(81,478)

(81,478)

(1,169,702)

(741,001)

4,651,765

4,587,592

2,324,455

4,580,459

5,251,336

(741,001)

0
0

(330,000)

(330,000)

(330,000)

(330,000)

(330,000)

(2,012,833)

(2,012,833)

(2,012,833)

(2,012,833)

(2,012,833)

2.15

2.12

$2,308,933

$2,244,760

0.99
($18,378)

2.11

2.44

$2,237,627

$2,908,504

2012
$ 7,664,277.91
$
36.83
$ 7,224,317.00

2013

2014

### $
37.93 $
### $

8,131,032.43 $
39.07 $
5,459,333.00 $

$
$

208100
68806
30%
20641.8
39.07 $
806,531.21 $

ovements
$
$

2017
177,591.00
828,758.00

ommision
2017
$
199,037.79
$
928,843.03
$ 1,127,880.83

2015

68806
70%
48164.2
$
39.07 $
$
1,881,906.16 $
$ (1,411,429.62)
$
(313,651.03)
$
156,825.51 $
$
$
$
$

806,531.21
156,825.51
5,459,333.00
6,422,689.73

$
$
$
$

8,374,963.40
40.24
5,459,333.00

2016

###
41.45
###

20641.8
20641.8
39.07 $
39.07
806,531.21 $806,531.21

48164.2
39.07 $
1,881,906.16

48164.2
39.07
###

1,881,906.16

###

806,531.21
1,881,906.16
5,459,333.00
8,147,770.37

$806,531.21
###
###
###

2012
$7,224,317.00

2013
###

2014
2015
$ 6,422,689.73 $ 8,147,770.37

2016
###

2017

2018

2019

2020

10

11

6,670,798

8,292,587

8,561,431

8,561,431

1,648,068

1,697,510

1,748,435

1,800,888

127,205

131,021

134,951

139,000

12,939

13,327

13,727

14,139

243,515

250,820

258,345

266,095

300,089

309,092

318,365

327,916

9,002,614

10,694,358

11,035,255

11,109,470

(333,540)

(414,629)

(428,072)

(428,072)

232,052
8,901,126

10,279,729

10,607,183

10,681,398

(4,367,361)

(4,498,382)

(4,633,333)

(4,772,333)

(444,250)

(457,577)

(471,305)

(485,444)

(66,708)

(82,926)

(85,614)

(85,614)

(1,006,349)
(563,940)

0
(563,940)

2,452,518

4,676,903

5,416,931

5,338,007

(330,000)

(330,000)

(330,000)

(2,012,833)

(2,012,833)

(2,012,833)

1.05

2.16

2.53

$109,686

$2,334,071

$3,074,098

(330,000)

$5,008,007

2017

###
42.70 $
###

2018
###
43.98 $
###

2019
###
45.30 $
###

2020
###
46.65
###

20641.8
20641.8
20641.8
20641.8
$
39.07 $
39.07 $
42.98 $
42.98 $
$806,531.21 $806,531.21 $887,184.33 $887,184.33

48164.2
39.07 $
###

48164.2
39.07 $
###

48164.2
42.98 $
###

48164.2
42.98 $
###

###

###

###

###

$806,531.21 $806,531.21 $887,184.33 $887,184.33

###
###
###
###
###

###

###

###

2017

2018

2019

2020

208100

20641.8
42.98 $
###

20641.8
42.98
###

48164.2
42.98 $
###

48164.2
42.98
###

59197
30%
17759.1
17759.1
17759.1
17759.1
$
42.70 $
42.70 $
42.70 $
42.70 $
$758,239.21 $758,239.21 $758,239.21 $758,239.21

59197
70%
41437.9
$
42.70 $
###
###
###
$147,435.40

41437.9
42.70 $
###

41437.9
42.70 $
###

41437.9
42.70 $
###

###

###

###

$758,239.21 $758,239.21 $758,239.21 $758,239.21

$147,435.40
###
###
###
###
###
###
###
###

2017
###

###

2018
###

###

2019
###

###

2020
###

17759.1
42.70 $
###

17759.1
46.97
###

41437.9
42.70 $
###

41437.9

46.97
###

20641.8
42.98
###

48164.2
42.98
###

17759.1
46.97 $
###

17759.1
46.97 $
###

17759.1
46.97 $
###

17759.1
46.97
###

41437.9

41437.9

41437.9

41437.9

46.97
###

46.97
###

46.97
###

46.97
###

EXHIBIT 2: INCOME-AND-EXPENSE PRO-FORMA: BYLINE DISTRIBUTION CENTER

Base Rental Revenues

2010

2011

2012

$683,200.00

$683,200.00

$683,200.00

Expense Reimbursement Revenue

$ 128,832.73

$ 131,409.39

$ 134,037.57

Total Potential Gross Revenue

$ 812,032.73

$ 814,609.39

$ 817,237.57

$ 812,032.73

$ 814,609.39

$ 817,237.57

Less:

Vancancies

Effective Gross Income (EGI)

Less:

Bad Debt

Less:

Operating Expenses

Real Estate Taxes

$ (128,832.73) $ (131,409.39) $ (134,037.57)

Replacement Reserve

Net Operating Income (NOI)

Less:

(21,748.45) $
(3,000.00) $

(22,400.90) $
(3,000.00) $

(23,072.93)
(3,000.00)

$ 658,451.55

$ 657,799.10

$ 657,127.07

Ground Lease Payments

Debt Service First Mortgage

(327,013)

(327,013)

(327,013)

Debt Service Second Mortgage

(182,414)

(182,414)

(182,414)

DSCR
Unlevered Cash Flow Before Taxes

2008
$

8.00

1.29

1.29

1.29

$149,024

$148,371

$147,699

2009
$

8.16

2010
$

8.32

2011
$

8.49

2013

2014

2015

2016

2017

$683,200.00

$683,200.00

$683,200.00

$683,200.00

$683,200.00

$ 136,718.33

$ 139,452.69

$ 142,241.75

$ 145,086.58

$ 147,988.31

$ 819,918.33

$ 822,652.69

$ 825,441.75

$ 828,286.58

$ 831,188.31

$ 819,918.33

$ 822,652.69

$ 825,441.75

$ 828,286.58

$ 831,188.31

(23,765.12) $

(24,478.07) $

(25,212.41) $

(25,968.79) $

(26,747.85)

$ (136,718.33) $ (139,452.69) $ (142,241.75) $ (145,086.58) $ (147,988.31)

$

(3,000.00) $

(3,000.00) $

(3,000.00) $

(3,000.00) $

(3,000.00)

$ 656,434.88

$ 655,721.93

$ 654,987.59

$ 654,231.21

$ 653,452.15

(327,013)

(327,013)

(327,013)

(327,013)

(327,013)

(182,414)

(182,414)

(182,414)

(182,414)

(182,414)

1.29

1.29

1.29

1.28

1.28

$147,007

$146,294

$145,560

$144,803

$144,024

2012
$

8.66

2013
$

8.83

2014
$

9.01

2015
$

9.19

2016
$

9.37

2018

2019

2020

10

11

$832,650

$832,650

$832,650

$ 150,948.08

$ 153,967.04

$ 157,046.38

$ 983,598.08

$ 986,617.04

$ 989,696.38

$ 983,598.08

$ 986,617.04

$ 989,696.38

(27,550.29) $

(28,376.79) $

(29,228.10)

$ (150,948.08) $ (153,967.04) $ (157,046.38)

$

(3,000.00) $

(3,000.00) $

(3,000.00)

$ 802,099.71

$ 801,273.21

$ 800,421.90

(327,013)

(327,013)

(182,414)

(182,414)

1.57

1.57

$292,672

$291,845

2017
$

9.56

2018
$

9.75

$800,422

EXHIBIT 3: PURCHASE AND OPERATING COMPARABLES

Sunset
Apartments
Number of Units/Sq. Ft.
Acquisition Cost Per Unit or Rentable Sq. Ft

386,834
$271

The Duke
208,100
$216

Operating-Expense Ratio
(Operating Expenses/Effective Gross Income)

33.0%

41.1%

Real-Estate-Tax Ratio
(Real Estate Taxes/Effective Gross Income)

12.6%

4.2%

Average Monthly Rent (Apartments) or

Average Annual Rent/Sq.Ft. (Office)
Actual or Projected Annual Occupancy

$2,320

94%

$34.72

95%

ByLine
Distribution Center
85,400
$89

2.7%

15.9%
$8.00

100%

EXHIBIT 4: PRELIMINARY RISK ANALYSIS - FIRST YEAR

Sunset
ByLine
Apartments The Duke Distribution Center
Current or Projected Occupancy

94%

95%

Break-Even Occupancy Ratio

with lease
without lease

N/A
47.1%

40.1%
59.9%

Debt Service Coverage Ratio

Loan-to-Value Ratio

1.14
68.3%

2.15
60.0%

100%

N/A

100.0%
(This property only
has 1 tenant so in
order to be in the
positive, this facility
needs to be 100%
leased)
1.29
75%

EXHIBIT 5: ANALYSIS OF LENDER YIELDS

2009

Sunset Apartments
First Mortgage Holder
Loan Proceeds Disbursed
Loan Points Received
Debt Service Payment Received
Participation in Cash Flow
Participation in Capital Appreciation
Repayment of Loan Balance
Before-Tax Cash Flow
Yield to Lender (IRR)

The Duke
First Mortgage Holder
Loan Proceeds Disbursed
Loan Points Received
Debt Service Payment Received
Participation in Cash Flow
Participation in Capital Appreciation
Repayment of Loan Balance
Before-Tax Cash Flow
Yield to Lender (IRR)

ByLine Distribution Center

First Mortgage Holder
Loan Proceeds Disbursed
Loan Points Received
Debt Service Payment Received
Participation in Cash Flow
Participation in Capital Appreciation
Repayment of Loan Balance
Before-Tax Cash Flow
Yield to Lender (IRR)

ByLine Distribution Center

Second Mortgage Holder
Loan Proceeds Disbursed
Loan Points Received
Debt Service Payment Received
Participation in Cash Flow
Participation in Capital Appreciation
Repayment of Loan Balance
Before-Tax Cash Flow
Yield to Lender (IRR)

(71,750,000)

(71,750,000)
6.65%

(27,000,000)
405,000

(26,595,000)
5.72%

(4,180,330.00)
62,704.95

(4,117,625)
6.23%

(1,520,120.00)
30,402.40

(1,489,718)
12.36%

2010
1

99,808
5,494,431
5,594,239

2011
2

99,808
5,494,431
5,594,239

2,012,833
2,012,833

2,012,833
2,012,833

327,013
327,013

327,013
327,013

182,414
182,414

182,414
182,414

2012
3

99,808
5,494,431
5,594,239

2013
4

99,808
5,494,431
5,594,239

2014
5

99,808
5,494,431
5,594,239

2015
6

99,808
5,494,431
5,594,239

2016
7

99,808
5,494,431
5,594,239

2017
8

99,808
5,494,431
5,594,239

2018
9

99,808
5,494,431
5,594,239

2,012,833
2,012,833

2,012,833
2,012,833

2,012,833
2,012,833

2,012,833
2,012,833

2,012,833
2,012,833

2,012,833
2,012,833

2,012,833
2,012,833

327,013
327,013

327,013
327,013

327,013
327,013

327,013
327,013

327,013
327,013

327,013
327,013

327,013
327,013

182,414
182,414

182,414
182,414

182,414
182,414

182,414
182,414

182,414
182,414

182,414
182,414

182,414
182,414

2019
10

99,808
5,494,431
60,540,433
66,134,672

2,012,833
20,203,969
22,216,802

327,013
3,176,037
3,503,050

182,414
1,520,120
1,702,534

2020
11

EXHIBIT 6: COMPUTATION OF GAIN-ON-SALE & NET SALES PROCEEDS

SUNSET APARTMENTS

NET SALES PROCEEDS: THE INVESTMENT (CASH FLOW) ANALYSIS

Gross Sales Price

Less Brokerage Commission

Net Sales Price

Less Outstanding Mortgage Balance

Net Sales Proceeds

137,291,300
2,745,826

134,545,474
(60,540,433)

74,005,040

EXHIBIT 6: COMPUTATION OF GAIN-ON-SALE & NET SALES PROCEEDS

THE DUKE

NET SALES PROCEEDS: THE INVESTMENT (CASH FLOW) ANALYSIS

Gross Sales Price

Less Brokerage Commission

Net Sales Price

Less Outstanding Mortgage Balance

Net Sales Proceeds

62,800,077
1,256,002

61,544,076
(20,203,969)

41,340,106

EXHIBIT 6: COMPUTATION OF GAIN-ON-SALE & NET SALES PROCEEDS

BYLINE DISTRIBUTION CENTER

NET SALES PROCEEDS: THE INVESTMENT (CASH FLOW) ANALYSIS

Gross Sales Price

Less Brokerage Commission

Net Sales Price

Less Outstanding Mortgage Balance

Net Sales Proceeds

###
###

9,805,168
(4,696,157)

5,109,012

EXHIBIT 8: DISCOUNTED CASH FLOW ANALYSIS: SUNSET APARTMENTS

ANNUAL
TIME
PERIOD

EQUITY
CASH FLOW
INVESTMENT BEFORE TAXES

(33,250,000)
1
2
3
4
5
6
7
8
9

802,492
1,044,668
2,081,933
2,369,464
2,667,624
2,976,803
3,297,403
3,629,843
3,974,556

10
11

4,331,989
10,296,847
$

(33,250,000) $ 27,176,774

NET SALES
PROCEEDS
-

74,005,040

$ 74,005,040 $

NET PRESENT VALUE @ 9%

###

INTERNAL RATE OF RETURN

13.48%

PARTITIONING OF VALUE ANALYSIS: SUNSET APARTMENTS

ANNUAL
CASH FLOW
ANNUAL BEFORE TAXES
TIME

Cash Flow

DISCOUNTED

NET SALES

PERIOD

BEFORE TAXES

AT IRR

PROCEEDS

###

802,492

707,149

1,044,668

811,183

2,081,933

1,424,549

2,369,464

1,428,667

2,667,624

1,417,346

2,976,803

1,393,707

3,297,403

1,360,391

3,629,843

1,319,623

3,974,556

1,273,271

10

4,331,989

1,222,897

11

10,296,847

74,005,040

12,358,783

TOTAL DISCOUNTED CASH INFLOWS

33,250,000

PERCENTAGE BREAKDOWN
BEFORE-TAX CASH FLOW FROM OPERATIONS

37.17%

NET SALES PROCEEDS

62.83%

TOTAL
CASH FLOW
BEFORE TAXES
(33,250,000)
802,492
1,044,668
2,081,933
2,369,464
2,667,624
2,976,803
3,297,403
3,629,843
3,974,556
78,337,030

67,931,815

NTS

NET SALES
PROCEEDS
DISCOUNTED
AT IRR
$

20,891,217
20,891,217

EXHIBIT 8: DISCOUNTED CASH FLOW ANALYSIS: THE DUKE

ANNUAL
TIME
PERIOD
-

EQUITY
INVESTMENT

CASH FLOW
BEFORE TAXES

(18,000,000)

2,317,775
2,371,236
2,308,933
2,244,760
(18,378)
2,237,627
2,908,504
109,686
2,334,071

1
2
3
4
5
6
7
8
9
10
11

3,074,098
5,008,007
$ (18,000,000) $

19,888,312 $

NET SALES
PROCEEDS
-

57,739,370

57,739,370

NET PRESENT VALUE @ 9%

INTERNAL RATE OF RETURN

PARTITIONING OF VALUE ANALYSIS: THE DUKE

ANNUAL
CASH FLOW
ANNUAL

BEFORE TAXES

TIME

CASH FLOW

DISCOUNTED

PERIOD

BEFORE TAXES

AT IRR

2,317,775

1,933,762

2,371,236

1,650,586

2,308,933

1,340,930

2,244,760

1,087,668

(18,378)

(7,429)

2,237,627

754,705

2,908,504

818,448

109,686

25,752

2,334,071

457,192

10

3,074,098

502,382

11

5,008,007
8,563,994

TOTAL DISCOUNTED CASH INFLOWS

PERCENTAGE BREAKDOWN
BEFORE-TAX CASH FLOW FROM OPERATIONS
NET SALES PROCEEDS

TOTAL
CASH FLOW
BEFORE TAXES
(18,000,000)
2,317,775
2,371,236
2,308,933
2,244,760
(18,378)
2,237,627
2,908,504
109,686
2,334,071
60,813,468

$
$

59,627,682

19,226,701
19.86%

: THE DUKE

NET SALES
PROCEEDS

NET SALES

DISCOUNTED

PROCEEDS

AT IRR

###

###

###

###

###

###

###
-

57,739,370

9436005.62314
9,436,006

18,000,000

47.58%
52.42%

EXHIBIT 8: DISCOUNTED CASH FLOW ANALYSIS: BYLINE DISTRIBUTION CENTER

ANNUAL
TIME
PERIOD

EQUITY
CASH FLOW
INVESTMENT BEFORE TAXES

(1,900,150)
1
2
3
4
5
6
7
8
9

149,024
148,371
147,699
147,007
146,294
145,560
144,803
144,024
292,672

10
11

291,845
800,422
$ (1,900,150) $

1,757,299

NET PRESENT VALUE @ 9%

NET SALES
PROCEEDS
###
-

9,805,168

9,805,168 $

$ 3,312,853

INTERNAL RATE OF RETURN

22.50%

PARTITIONING OF VALUE ANALYSIS: BYLINE DISTRIBUTION CENTER

ANNUAL
CASH FLOW
ANNUAL BEFORE TAXES
TIME

CASH FLOW

DISCOUNTED

NET SALES

PERIOD

BEFORE TAXES

AT IRR

PROCEEDS

###

149,024

121,656

148,371

98,879

147,699

80,355

147,007

65,291

146,294

53,042

145,560

43,083

144,803

34,989

144,024

28,409

292,672

47,129

10

291,845

38,365

11

800,422

9,805,168

611,198

TOTAL DISCOUNTED CASH INFLOWS

1,900,150

PERCENTAGE BREAKDOWN
BEFORE-TAX CASH FLOW FROM OPERATIONS

32.17%

NET SALES PROCEEDS

67.83%

TOTAL
CASH FLOW
BEFORE TAXES
(1,900,150)
149,024
148,371
147,699
147,007
146,294
145,560
144,803
144,024
292,672
10,097,014

9,662,318

N CENTER

NET SALES
PROCEEDS
DISCOUNTED
AT IRR
$

1288952.48578
1,288,952

EXHIBIT 9: SUMMARY OF FINANCIAL ANALYSIS

Sunset
Apartments

Equity Required

###

Cash-on-Cash

2.4%

The Duke

18,000,000
12.9%

Discounted Measures of Return:

Net Present Value
Internal Rate of Return

### $
13.48%

19,226,701
19.86%

ByLine
Distribution Center

1,900,150
7.8%

3,312,853
22.50%

Sunset Apartments Sensitivity Analysis

Assumptions
Base Rental Rate Growth

3.50%

Operating Expense Growth

3.00%

Going Out Cap Rate

7.50%

IRR

13.48%
Rental Rate Growth

Going Out Cap Rate

13.48%

5.50%

6.50%

7.50%

8.50%

9.50%

1.50%

9.13%

7.85%

6.82%

5.95%

5.20%

2.50%

10.85%

9.55%

8.48%

7.59%

6.83%

3.50%

12.48%

11.16%

10.07%

9.16%

8.39%

4.50%

14.05%

12.70%

11.59%

10.67%

9.88%

5.50%

15.56%

14.19%

13.06%

12.12%

11.31%

The Duke Sensitivity Analysis

Assumptions
Base Rental Rate Growth

3.00%

Operating Expense Growth

3.00%

Going Out Cap Rate

8.50%

IRR

19.86%
Rental Rate Growth

Going Out Cap Rate

19.86%
1.00%
2.00%
3.00%
4.00%
5.00%

6.50%

7.50%

8.50%

9.50%

10.50%

The Byline Sensitivity Analysis

Assumptions
Base Rental Rate Growth
2.00%
Operating Expense Growth
3.00%
Going Out Cap Rate
8.00%
IRR
22.50%

22.50%
1.00%
2.00%
3.00%
5.00%
Operating Expense Growth 7.00%

6.00%

Going Out Cap Rate

7.00%

ut Cap Rate
8.00%

9.00%

10.00%