Professional Documents
Culture Documents
Real Estate Financial Advisory
FIN A N C IA L S T U D Y
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Prepared for
C lient N am e
C lient C om pany N am e
Date
EXECUTIVE SUMMARY
Date
PURPOSE OF REPORT:
Ploutus Advisors, Inc. was commissioned by the Client, per engagement letter and agreement dated _____________, to
conduct a financial analysis for a proposed _______ unit apartment (for-rent) residential development project to be
located at __________________________. This report includes a detailed financial analysis of a potential development
scenario as presented by the Client to Ploutus Advisors, Inc. The development scenario analyzed as part of this report is
as follows:
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_____________ rentable square feet of total project area which includes _______ market-rate rental
apartments and __________ rentable square feet of retail
This report has been prepared for the Client as a development program financial assessment document to enable and/or
lay a roadmap for further discussion, refinement, and/or modification of the proposed development program.
OVERVIEW:
The following table summarizes a few of the key asset or project level results for the proposed development scenario:
KEY METRICS
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EXECUTIVE SUMMARY
The total required equity is $______MM. During the development phase, $______MM is sourced via construction loan
draws, and $______MM is accrued in the form of construction interest. Post development, upon stabilization of the
project, the construction loan balance is repaid through permanent loan financing of $_______MM plus cash from
operations. The analysis assumes a five (5) year investment horizon from development to exit. Per the development
budget, approved by the Client, the land and pre-development cost accounts for _____% of the total budget. Hard and
soft cost account for ______% and ______% of the total budget, respectively.
The asset or project level cash flows are further distributed based on a joint-venture waterfall / partnership structure
(“JV”). The terms used for a potential JV with an equity partner are as follows:
Equity Contribution: Developer (“Sponsor”) _____% and Investors (“LP” or Limited Partners”) _____%
Distribution: First, all invested equity to earn an IRR of _____% distributed pro-rata (“Hurdle Rate”)
Thereafter, all invested equity to earn ______% of the remaining cash flow distributed pro-rata,
and Sponsor to earn ______% of the remaining cash flow (“Promote”)
All distributions are made pari-passu
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Based on the above proposed waterfall structure, the Limited Partners are projected to receive a five (5) year levered
IRR of ______% and multiple of ______x.
Results are on the following page and for detailed financial analysis refer to Appendix.
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EXECUTIVE SUMMARY
CAPITALIZATION:
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EXECUTIVE SUMMARY
STATIC FINANCIALS:
CASH FLOW:
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EXECUTIVE SUMMARY
BUILDING AREA AND BUDGET COST BREAKDOWN:
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MONTE CARLO SIMULATION (MCS) RESULT:
ASSUMPTIONS:
1) Development Program The development program includes ______ apartment units with an average unit area of
approximately ______ SF. The unit breakdown is as follows: ____% are studios, ____%
are 1 bed / 1 bath, ____% are 2 bed / 2 bath and _____% are 3 bed / 3 bath.
The project also includes ______ SF of retail at the podium level. Parking provides for
____ stalls on two levels; ____ spaces at-grade and ____ spaces below-grade. The
total rentable area of the project is _______ SF, and estimated gross building area is
______ SF.
2) Project Timeline Land Acquisition and Development – First 2 Years (24 months)
Lease-Up – Year 3 (12 months)
First Fully Stabilized Period – Year 4
Reversion – Year 5
3) Development Budget The land acquisition cost is $______MM. The hard cost is estimated to be $_____/SF
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EXECUTIVE SUMMARY
based on estimated gross building area. The total development cost pre-financing is
estimated to be $_____MM or $_____/SF based on estimated gross building area.
4) Rents Apartment – The weighted average monthly per square foot rent is projected to be
$_____. Based on the comparables, for-rent properties in the subject area currently
have an average monthly per square foot rent of $_____. For Q1 2015, the downtown
_________ apartment market measured an average rent of $_____ and occupancy of
_______%.
Retail – For the retail component, the analysis assumes a NNN monthly per square foot
rent of $______.
Other Income – Parking revenue of $_____ per month per unit at a pay rate of _____%,
plus a combined pet and/or cable fee of $_____ per month per unit at a pay rate of
______% are included in the analysis.
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Rents are projected to escalate at _____% per year.
5) Operating Expenses Operating expenses for the apartments stabilize at ______% of effective gross income
(“EGI”), equating to $_____ per month per unit. Operating expenses include a combined
annual property plus asset management fee _____% of EGI.
Operating expenses are projected to escalate at _____% per year and real estate taxes
escalate at _____% per year.
6) Absorption Pre-leasing is assumed to begin in Quarter 8. _____% of the units are projected to be
pre-leased. Thereafter, absorption is assumed at the rate of ____ apartment units per
quarter. Stabilized vacancy is assumed as ______%.
7) Capitalization (Cap) Rate Stabilized value for evaluation of permanent debt is determined using a cap rate of
_____%. The exit cap at reversion is assumed to be _____%.
8) Leverage The construction loan is assumed for a period of _____ months at an annual interest
rate of ____%. An operating reserve is assumed for shortfalls during the lease-up
phase.
Maximum permanent loan financing is determined as the lesser of loan amount based
on (i) loan-to-value of ______%, and (ii) debt service coverage ratio of _____x with an
annual interest rate of _____% based on a ____ year amortization period.
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EXECUTIVE SUMMARY
RECOMMENDATIONS:
To further substantiate many of the key assumptions used herein, the Client is advised to explore the following steps:
(i) Conduct an in-depth review, and further value engineering, to refine and validate the development budget
based on drawings with input from the architect, project manager, and general contractor.
(ii) Conduct an apartment absorption study to ascertain current inventory level, competitive supply, absorption
trends, future demand projections, future rental and vacancy trends, and the ability of submarket to absorb
the planned project.
GENERAL METHODOLOGY:
This report includes an income-based analysis. In order to estimate the potential total return that may be generated by
the project, a reversion, or sale, of the project is assumed. The sale value is calculated by applying an exit cap rate to
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the total net operating income (NOI). Key development cost assumptions and market research information used to
conduct the financial feasibility analysis are complied from sources deemed reliable and/or provided by the Client.
REPORT CONTENT:
The financial analysis as part of this report comprises of the following components:
2. Cash Flows: Annual and quarterly proforma cash flows, and monthly development cost distribution are
included. The annual proforma also shows the cash flows on both an unlevered and a levered basis.
3. Development Budget: Detailed budget with breakdown for each major cost category; land, hard and soft.
Further, the development budget also lists itemized costs for major cost categories.
1 Monte Carlo Simulation (MCS): The levered IRR output of the financial analysis is subjected to a simulation test. The model generates 1,000 random levered
IRR values based on the assumption that the levered IRR has a standard deviation of 20.0%. The result of the MCS is displayed on the Result page.
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4. Financial Highlights: Projected stabilized value, maximum permanent debt estimate, and sources and uses for
the development period.
5. Rent Roll & Comparables: Rent roll, breakdown of units by type, list of comparable rental properties, and data
on the downtown Los Angeles market-rate rental residential market.
6. Waterfall: Proposed partnership or JV structure showing equity contribution and distribution of cash flows
between prospective LP investors and the developer.
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EXECUTIVE SUMMARY
BIO:
Adnan Tapia
Adnan began his real estate career in 1993 and has over a period of 20 years worked on 16+ million square feet or $2.5
billion worth of US and India focused real estate transactions across several product types including office, industrial,
retail, residential, hospitality, mixed-use, land, and life cycles in areas such as real estate private equity, financial
consulting, acquisitions, and development.
Currently, Adnan is a Principal at Ploutus Advisors; a boutique real estate investment and development advisory firm
based in Los Angeles where he helps identify, underwrite, and evaluate real estate investment and development
opportunities for investors and developers. Ploutus Advisors also facilitates and advises on cross-border US-India real
estate investment opportunities, and provides corporate real estate financial consulting services to owners and users of
real estate. At Ploutus Advisors, Adnan has helped clients with over $1.5 billion dollars in real estate projects. In
Downtown Los Angeles and other SoCal submarkets, Adnan has advised on several ground-up, and adaptive reuse,
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residential and mixed-use development projects totaling over 2,900 units.
Prior to Ploutus Advisors, Adnan co-managed the western US operations for UrbanAmerica; an institutional urban real
estate private equity firm that originated over $2.0 billion in commercial and residential transactions throughout the US.
During his tenure at UrbanAmerica, Adnan helped source, underwrite, evaluate, structure, and present to the investment
committee potential acquisition and development joint venture opportunities. He played a key role on several projects
including a $485 million acquisition of a 3.1 million square foot national office portfolio and $108 million acquisition of a
1,100-room resort hotel. Further, he also assisted senior management in the pursuit and development of strategic
business relationships as well as with internal fund operations. Prior to UrbanAmerica, Adnan worked at global real
estate services firm Cushman & Wakefield where he evaluated and structured complex transactions, and consulted on
acquisition, disposition, real estate development, corporate leasing and critical internal operation-related assignments.
Adnan has advised clients such as O’Melveny Myers, Alaska Airlines, Sempra Energy, Warner Bros., Washington
Mutual (now part of JP Morgan Chase) and City National Bank among several others. Adnan started his real estate
career in India, where he worked on over 550 acres of land transactions and 1.3 million square feet of real estate
development projects.
Specialties: Real Estate Investment, Acquisitions, Development, Private Equity, High-Net-Worth Advisory, Due
Diligence, Underwriting & Financial Modeling, Asset Management, Business Development & Transaction Origination,
Structuring & Negotiation, Joint Ventures, and Equity & Debt Financing.
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EXECUTIVE SUMMARY
CONTACT:
Adnan Tapia
Principal
Ploutus Advisors, Inc. Tel: +1.424.274.3561
1875 Century Park East, Suite 700 Fax: +1.424.288.5624
Century City, CA 90067 Email: atapia@ploutusadvisors.com
DISCLAIMER:
This report is based on inputs from third parties and/or sources deemed reliable. This report and its contents are only for
informational purposes, and for use only by the intended recipient (“Client”). The information contained herein may be subject to
errors and/or omissions. The Client should not solely rely on information contained herein and is hereby advised to conduct its own
due diligence and consult with other advisors prior to making any investment decision. This analysis does not purport to be all-
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inclusive, or to contain all of the information that prospective investors, lenders, and/or other stakeholders may desire. Further, the
findings and recommendations of this report may be subject to changes due to supply, demand, cost, and/or other changes related
to the real estate product type, general macro and/or micro economic environment, and/or other parameters that are beyond the
scope of this assignment and/or control of Ploutus Advisors, Inc. It should be noted that all financial projections are provided for
general reference and informational purposes only in that they are based on assumptions relating to the general economy,
competition, and other factors beyond the control of Ploutus Advisors, Inc. and, therefore, are subject to material variation. There
may be other elements to the project not analyzed herein that have significant tax and accounting implications, in addition to other
factors that may impact the results of this report. Ploutus Advisors, Inc. urges the Client to consult with their auditors, legal and/or
tax advisors in order to fully evaluate and validate any such impact. Ploutus Advisors, Inc., and its officers, principals, owners,
representatives and/or employees (collectively, “Ploutus Advisors, Inc.”) do not make any representations, and do not provide any
guarantees and/or warranties, expressed or implied, as to the accuracy and/or completeness of the report, its financial analysis
and/or any of its contents. No independent demographic, econometric, market research, or development cost study was conducted
by Ploutus Advisors, Inc. as part of this analysis. No legal commitments and/or obligations shall arise by reason of this report or any
of its contents. This report should not be used as the sole investment decision-making tool, and is not meant to replace or substitute
an offering memorandum or private placement memorandum.
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Property Name / Address Financial Study
EXECUTIVE SUMMARY
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APPENDIX
DETAILED FINANCIALS
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CLIENT NAME
Property Name / Address
FINANCIAL HIGHLIGHTS
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Less: Construction Loan Interest Accrued During Operations $0 $0 $0 $0
Cash Flow from Operations After Interest $0 $0 $0 $0 (ii)
SOURCES
Construction Loan Funding
Construction Loan: Net Draws $97,356,026 $0 $26,398,495 $70,957,532
Plus: Construction Loan - Net Accrued Interest $5,056,459 $0 $445,073 $4,611,386
Net Construction Loan Funding $102,412,485 $0 $26,843,568 $75,568,918
Plus: Equity Sources $29,003,726 $14,767,068 $14,236,658 $0
Plus: Additional Equity Required $0 $0 $0 $0
Less: Positive Cash Flow After Interest - Distributed $0 $0 $0 $0
Less: Cash Proceeds from Construction Loan Takeout $0 $0 $0 $0
TOTAL SOURCES $131,416,211 $14,767,068 $41,080,225 $75,568,918
Appendix: Page 1
CLIENT NAME
Property Name / Address
PROFORMA SUMMARY Total Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Levered Cash Flow $43,293,570 ($14,767,068) ($14,236,658) $0 $814,411 $542,879 $70,940,005 $0 $0
Equity Invested $29,003,726 $14,767,068 $14,236,658 $0 $0 $0 $0 $0 $0
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Cash Available For Distribution $72,297,295 $0 $0 $0 $814,411 $542,879 $70,940,005 $0 $0
Multiple 2.5x
Levered Asset Level IRR 22.5%
CASH FLOW DISTRIBUTION Total Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Tier 1: IRR HURDLE 12.00%
Development Team Equity 10.00% ($1,476,707) ($1,423,666) $0 $81,441 $54,288 $4,679,665 $0 $0
Limited Partner Equity 90.00% ($13,290,361) ($12,812,992) $0 $732,970 $488,591 $42,116,989 $0 $0
Total 100.00% $19,150,219 ($14,767,068) ($14,236,658) $0 $814,411 $542,879 $46,796,654 $0 $0
Cash Flow For Next Tier $24,143,351 $0 $0 $0 $0 $0 $24,143,351 $0 $0
Appendix: Page 2
CLIENT NAME
Property Name / Address
PROFORMA SUMMARY Total Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
RESULT
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Limited Partner
Cash Flow Equity $34,618,410 ($13,290,361) ($12,812,992) $0 $732,970 $488,591 $59,500,202 $0 $0
Equity Draws $26,103,353 $13,290,361 $12,812,992 $0 $0 $0 $0 $0 $0
Distribution $60,721,763 $0 $0 $0 $732,970 $488,591 $59,500,202 $0 $0
Development Team
Cash Flow Equity + Promote $8,675,160 ($1,476,707) ($1,423,666) $0 $81,441 $54,288 $11,439,804 $0 $0
Equity Draws $2,900,373 $1,476,707 $1,423,666 $0 $0 $0 $0 $0 $0
Equity Balance $1,476,707 $3,077,577 $3,446,887 $3,779,072 $4,178,273 $0 $0 $0
Distribution $11,575,533 $0 $0 $0 $81,441 $54,288 $11,439,804 $0 $0
Appendix: Page 3
CLIENT NAME
Property Name / Address
RENT ROLL
Apartment Unit Pricing Number Percent of Area Per Unit Total Area Rent Per SF Monthly Rent Annual
Type of Units Total Units RSF / Unit RSF $/RSF/Month $/Unit/Month Rent
Studio Market 50 13.9% 400 20,000 $4.50 $1,800 $1,080,000
1 Bed / 1 Bath Market 100 27.8% 610 61,000 $4.10 $2,500 $3,000,000
2 Bed / 2 Bath (T1) Market 100 27.8% 775 77,500 $3.74 $2,900 $3,480,000
2 Bed / 2 Bath (T2) Market 60 16.7% 900 54,000 $3.56 $3,200 $2,304,000
3 Bed / 3 Bath Market 50 13.9% 1,250 62,500 $2.88 $3,600 $2,160,000
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Apartment - Subtotal / Average 360 100.0% 764 275,000 $3.64 $2,783 $12,024,000
Other
Retail 1 NNN 10 800 8,000 $3.50 $2,800 $336,000
Retail 2 NNN 10 900 9,000 $3.50 $3,150 $378,000
Other - Subtotal 20 17,000 $714,000
Total Rentable Area = 292,000 SF Annual Gross Rent = $12,738,000
50 50
60
100
100
Studio 1 Bed / 1 Bath 2 Bed / 2 Bath (T1) 2 Bed / 2 Bath (T2) 3 Bed / 3 Bath
Appendix: Page 4
CLIENT NAME
Property Name / Address
RENT COMPARABLES
Unit Type Address Property Name Unit Area SF Monthly Rent Weight * Rent / SF Proximity
1 Bed / 1 Bath (2 Beds) xxxx xxxx 689 $3,500 10.0% $5.08 0.20 Mi.
2 Bed / 2 Bath (4 Beds) 1,141 $4,000 10.0% $3.51
3 Bed / 3 Bath (6 Beds) 1,309 $5,500 10.0% $4.20
1 Bed / 1 Bath xxxx xxxx 695 $2,500 5.0% $3.60 1.20 Mi.
1 Bed / 1 Bath xxxx xxxx 773 $2,500 8.0% $3.24 1.60 Mi.
2 Bed / 2 Bath 1,027 $3,500 8.0% $3.41
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2 Bed / 2 Bath xxxx xxxx 1,125 $2,875 5.0% $2.56 0.90 Mi.
3 Bed / 2 Bath 1,535 $3,200 5.0% $2.08
Studio xxxx xxxx 450 $1,600 5.0% $3.56 0.80 Mi.
2 Bed / 2 Bath 1,200 $3,000 5.0% $2.50
Studio xxxx xxxx 600 $2,000 5.0% $3.33 0.80 Mi.
2 Bed / 2 Bath 1,000 $3,000 5.0% $3.00
Studio xxxx xxxx 570 $1,900 9.5% $3.33 1.00 Mi.
1 Bed / 1 Bath 700 $2,475 9.5% $3.54
Total / Avg 915 100.0% $3.49
Source: www.apartments.com as of July 2015
* Weight for each comparable is assigned based on potential tenant profile, proximity, size and quality of product
Appendix: Page 5
CLIENT NAME
Property Name / Address
DEVELOPMENT BUDGET
PRE-DEVELOPMENT COST
(1) Land / Existing Property
1 Land Value / Value of Existing Property $32.88 / SF $12,000,000
2 Real Estate Fees (Broker, Acquisition, Finder) None 0.00% $0.00 / SF $0
3 Title Policy Seller Pays 0.00% $0.00 / SF $0
4 Transfer Taxes Seller Pays 0.00% $0.00 / SF $0
5 Legal / Due Diligence 0.71% $0.23 / SF $85,000
6 Off-Site Improvements 0.28% $0.09 / SF $33,333
7 Miscellaneous Fees 0.14% $0.05 / SF $16,667
Subtotal 1.13% $33.25 / SF $12,135,000
(2) Eng Fees / Entitlement
1 Appraisal Fees $0.41 / SF $150,000
2 Demolition Cost $1.92 / SF $700,000
3 Market Study $0.27 / SF $100,000
4 Planning & Zoning Fee - PUD Approval $0.41 / SF $150,000
5 Lot Line Adjustment - Parcel Maps/Plats $0.27 / SF $100,000
6 Entitlement Consultant w/Planning & Zoning $0.00 / SF $0
7 Financial Consultant $0.07 / SF $25,000
8 Special Development Fees $0.00 / SF $0
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9 Traffic Study $0.07 / SF $25,000
10 Geotechnical Survey $0.02 / SF $7,000
11 Environmental Survey - Phase I $0.02 / SF $7,500
12 Environmental Survey - Phase II $0.02 / SF $7,500
13 ALTA Survey $0.03 / SF $10,000
14 Flood Certificate / Inspection Fee $0.00 / SF $0
15 Hazardous Material Remediation $0.00 / SF $0
Subtotal $3.51 / SF $1,282,000
PRE-DEVELOPMENT COSTS % Total: 10.6% $36.76 /SF $13,417,000
HARD COST
(1) Building
1 Foundations $19.18 / SF $7,000,000
2 Substructure (Slab on Grade; Basement Excavation; Basement Walls) $35.62 / SF $13,000,000
3 Superstructure (Floor & Roof Construction; Stair Construction) $82.19 / SF $30,000,000
4 Exterior Closure (Walls; Doors/Windows) $19.18 / SF $7,000,000
5 Roofing $2.05 / SF $750,000
6 Interior Construction (Partitions; Interior Finishes; Doors/Windows) $8.22 / SF $3,000,000
7 Elevators $2.14 / SF $780,000
8 Mechanical (Plumbing; HVAC; Fire Protection; Other) $7.40 / SF $2,700,000
9 Electrical $4.66 / SF $1,700,000
10 Equipment (Fixed/Movable Equipment; Furnishings) $1.85 / SF $675,000
Subtotal $182.48 / SF $66,605,000
(2) Parking
1 At Grade Parking 272 Stalls $15,000 / Stall = $4,080,000
2 Below Grade Parking 272 Stalls $35,000 / Stall = $9,520,000
Subtotal 544 Stalls $13,600,000
(3) Sitework
Sitework $4,500,000
(4) TIA (Retail / Commercial)
Tenant Improvement Allowance 17,000 SF x $20.00 / SF = $340,000
Subtotal $340,000
(5) Contingency
Hard Cost Contingency 10.0% $23.30 / SF $8,504,500
HARD COST - CONSTRUCTION % Total: 74.0% $256.30 /SF $93,549,500
Appendix: Page 6
CLIENT NAME
Property Name / Address
DEVELOPMENT BUDGET
SOFT COST
(1) Design & Consultants
1 Architect $4.11 / SF $1,500,000
2 MEP & Fire Protection $1.37 / SF $500,000
3 Structural $1.10 / SF $400,000
4 ADA $0.27 / SF $100,000
5 Surveyor $0.21 / SF $75,000
6 Civil $0.19 / SF $70,000
7 Exterior Skin $0.00 / SF $0
8 Landscaping $0.55 / SF $200,000
9 Restaurant & Kitchen $0.00 / SF $0
10 Roofing & Waterproofing $0.05 / SF $20,000
11 Swimming Pool & Equipment $0.04 / SF $15,000
12 Vertical Transportation $0.03 / SF $10,000
13 Parking $0.08 / SF $30,000
14 Acoustical $0.03 / SF $10,000
15 Audio Visual $0.01 / SF $5,000
16 Telecommunications / Data $0.04 / SF $15,000
17 Security $0.04 / SF $15,000
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18 Contingency 5.00% $0.41 / SF $148,250
Subtotal % of HC: 3.33% $8.53 / SF $3,113,250
(2) Miscellaneous Development Cost
1 Site Security During Construction $0.55 / SF $200,000
2 Utility Consumption $0.14 / SF $50,000
3 Drawing / Printing $0.03 / SF $10,000
4 Team Meeting / Catering $0.01 / SF $5,000
Subtotal % of HC: 0.28% $0.73 / SF $265,000
(3) Permits & Fees
1 Building Permit Fee 0.37% $0.96 / SF $349,936
2 Plan Check Fee 0.09% $0.24 / SF $87,484
3 Grading Permit 0.10% $0.26 / SF $93,316
4 Water & Sewer Tap Fees 0.00% $0.00 / SF $0
5 State Imposed Fees 0.00% $0.00 / SF $0
6 School Impact Fees 0.50% $1.28 / SF $466,582
7 Other Misc. Permits & Fees 0.25% $0.64 / SF $233,291
Subtotal % of HC: 1.32% $3.37 / SF $1,230,609
(4) Testing & Inspections
1 Soils Testing $0.05 / SF $20,000
2 Concrete Testing / Reinforcing Inspec $0.04 / SF $15,000
3 Masonry Testing / Inspection $0.04 / SF $15,000
4 Steel Testing / Inspections $0.10 / SF $35,000
5 Fireproofing Testing / Inspections $0.07 / SF $25,000
6 Building Envelope / Window Wall Testing $0.05 / SF $20,000
Subtotal % of HC: 0.14% $0.36 / SF $130,000
(5) Legal & Accounting
1 Due Diligence / Purchase Agreement $0.14 / SF $50,000
2 Development / Construction Agreement $0.08 / SF $30,000
3 Consultant / Broker Agrmt / CC&Rs $0.08 / SF $30,000
4 Real Estate Tax Consultant / Audits / Accounting $0.05 / SF $20,000
5 Miscellaneous $0.01 / SF $5,000
Subtotal % of HC: 0.14% $0.37 / SF $135,000
Appendix: Page 7
CLIENT NAME
Property Name / Address
DEVELOPMENT BUDGET
SAMPLE
5 Leasing Commissions (Retail/Commercial) 4.00% 60 Mths $0.39 / SF $142,800
6 Other $0.01 / SF $5,000
Subtotal % of HC: 0.37% $0.95 / SF $347,800
(9) Developer, Contractor, PM Fees & Escalations
1 Developer / Contractor Fee 6.0% $15.38 / SF $5,612,970
2 Project Management Fee (Hard Cost, Net of Contingency) 2.0% $4.66 / SF $1,700,900
3 Escalations 3.3% $9.06 / SF $3,305,416
Subtotal % of HC: 11.35% $29.09 / SF $10,619,286
(10) Soft Cost Contingency
Soft Cost Contingency 5.0% $2.53 / SF $923,488
SOFT COST % Total: 15.3% $53.13 /SF $19,393,252
Appendix: Page 8
CLIENT NAME
Property Name / Address
PROFORMA
ANNUAL CASH FLOW TOTAL Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
DEVELOPMENT PERIOD LEASE-UP OPERATING PERIOD
Stabilized Sale
DEVELOPMENT COST
Pre-Development Cost $13,417,000 $13,417,000 $0 $0 $0 $0 $0 $0 $0
Hard Cost $93,549,500 $7,800 $35,201,923 $58,339,776 $0 $0 $0 $0 $0
Soft Cost $19,393,252 $1,342,268 $5,433,229 $12,617,755 $0 $0 $0 $0 $0
Development Cost, Excluding Construction Loan Interest and Operating Reserves $126,359,752 $14,767,068 $40,635,153 $70,957,532 $0 $0 $0 $0 $0
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Less: Concessions, Allowance, Bad Debt 0.50% $0.02 $319,185 $0 $0 $0 $60,120 $61,924 $63,781 $65,695 $67,666
Effective Rental Income $3.34 $57,522,040 $0 $0 $0 $8,657,280 $11,703,560 $12,022,777 $12,383,460 $12,754,964
Other Income 3.00% $0.04 $665,384 $0 $0 $0 $106,920 $133,488 $137,493 $141,617 $145,866
Effective Gross Income (EGI) $3.38 $58,187,424 $0 $0 $0 $8,764,200 $11,837,048 $12,160,269 $12,525,077 $12,900,830
Operating Expenses 3.00% $1.14 $20,513,374 $0 $0 $0 $3,787,665 $3,997,897 $4,117,834 $4,241,369 $4,368,610
Net Operating Income - Apartments $2.24 $37,674,051 $0 $0 $0 $4,976,535 $7,839,152 $8,042,436 $8,283,709 $8,532,220
Net Other Income - Retail 3.00% $0.20 $3,440,537 $0 $0 $0 $517,650 $698,649 $719,608 $741,197 $763,433
Net Operating Income (NOI) $2.44 $41,114,587 $0 $0 $0 $5,494,185 $8,537,801 $8,762,044 $9,024,905 $9,295,652
Less: Construction Interest Paid During Operations $4,679,774 $0 $0 $0 $4,679,774 $0 $0 $0 $0
Less: Annual Debt Service $13,391,342 $0 $0 $0 $0 $6,695,671 $6,695,671 $0 $0
Plus: Operating Reserve Funded by Construction Loan $0 $0 $0 $0 $0 $0 $0 $0 $0
Levered Cash Flow Before Tax - From Operations $4,722,914 $0 $0 $0 $814,411 $1,842,130 $2,066,373 $0 $0
Cash-on-Cash Yield 2.8% 6.4% 7.1%
EQUITY
Equity - Initial ($29,003,726) ($14,767,068) ($14,236,658) $0 $0 $0 $0 $0 $0
Equity - Additional Required $0 $0 $0 $0 $0 $0 $0 $0 $0
Equity - Initial and Additional Required ($29,003,726) ($14,767,068) ($14,236,658) $0 $0 $0 $0 $0 $0
CONSTRUCTION LOAN
Loan Draw - Net Funded $97,356,026 $0 $26,398,495 $70,957,532 $0 $0 $0 $0 $0
Interest Accrued - Net $6,584,008 $0 $445,073 $4,611,386 $1,527,549 $0 $0 $0 $0
Construction Loan Ending Balance $103,940,035 $0 $26,843,568 $102,412,485 $103,940,035 $0 $0 $0 $0
Net Cash Flow After Debt $814,411 $0 $0 $0 $814,411 $0 $0 $0 $0
Appendix: Page 9
CLIENT NAME
Property Name / Address
PROFORMA
ANNUAL CASH FLOW TOTAL Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
DEVELOPMENT PERIOD LEASE-UP OPERATING PERIOD
Stabilized Sale
SAMPLE
Loan Fees 1.25% Loan Payoff $100,794,588 $0 $0 $0 $0 $0 $100,794,588 $0 $0
Financing - Beginning of Year 4 Cash Proceeds from Refinancing $0 $0 $0 $0 $0 $0 $0 $0 $0
Debt Service Coverage 1.29x na na na 1.28x 1.31x na na
Debt Yield Ratio 8.4% na na 8.3% 8.6% na na
Unlevered Cash Flow $66,102,497 ($14,767,068) ($40,635,153) ($70,957,532) $5,494,185 $8,537,801 $178,430,264 $0 $0
Levered Cash Flow $43,293,570 ($14,767,068) ($14,236,658) $0 $814,411 $542,879 $70,940,005 $0 $0
Appendix: Page 10
CLIENT NAME
Property Name / Address
PROFORMA
QUARTERLY CASH FLOW
Time 0 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5 Quarter 6 Quarter 7 Quarter 8
Year 1 Year 1 Year 1 Year 1 Year 2 Year 2 Year 2 Year 2
PRE-DEV DEVELOPMENT
DEVELOPMENT COSTS TOTAL
Land / Existing Property $12,135,000 $12,135,000 $0 $0 $0 $0 $0 $0 $0 $0
Eng Fees / Entitlement $1,282,000 $1,282,000 $0 $0 $0 $0 $0 $0 $0 $0
PRE-DEVELOPMENT COSTS $13,417,000 $13,417,000 $0 $0 $0 $0 $0 $0 $0 $0
Building $66,605,000 $0 $173,147 $647,126 $2,930,089 $11,056,738 $23,782,688 $19,506,141 $6,864,035 $1,645,036
Parking $13,600,000 $0 $5,036,023 $8,563,977 $0 $0 $0 $0 $0 $0
SAMPLE
Sitework $4,500,000 $0 $4,500,000 $0 $0 $0 $0 $0 $0 $0
TIA (Retail / Commercial) $340,000 $0 $0 $0 $0 $0 $0 $0 $34,144 $305,856
Contingency $8,504,500 $7,800 $27,047 $119,147 $495,488 $1,653,141 $3,026,751 $2,211,837 $769,626 $193,663
HARD COST - CONSTRUCTION $93,549,500 $7,800 $9,736,218 $9,330,249 $3,425,577 $12,709,879 $26,809,439 $21,717,978 $7,667,805 $2,144,555
Design & Consultants $3,113,250 $2,426 $9,629 $41,605 $174,702 $591,878 $1,108,554 $825,041 $287,619 $71,796
Miscellaneous Development Cost $265,000 $8,646 $25,959 $26,500 $28,713 $35,519 $43,595 $38,804 $30,325 $26,939
Permits & Fees $1,230,609 $1,230,609 $0 $0 $0 $0 $0 $0 $0 $0
Testing & Inspections $130,000 $10,000 $10,244 $1,730 $11,467 $31,213 $17,678 $10,631 $30,504 $6,535
Legal & Accounting $135,000 $80,000 $3,125 $3,125 $3,125 $3,125 $3,125 $18,125 $18,125 $3,125
Insurance During Construction $2,051,091 $0 $256,386 $256,386 $256,386 $256,386 $256,386 $256,386 $256,386 $256,386
Taxes During Construction $577,728 $0 $72,216 $72,216 $72,216 $72,216 $72,216 $72,216 $72,216 $72,216
Marketing / Leasing Office $347,800 $0 $625 $625 $625 $625 $86,325 $86,325 $86,325 $86,325
Developer, Contractor, PM Fees & Escalations $10,619,286 $9,740 $33,773 $148,774 $618,700 $2,064,222 $3,779,403 $2,761,847 $961,007 $241,820
Soft Cost Contingency $923,488 $847 $2,937 $12,938 $53,804 $179,512 $328,669 $240,179 $83,572 $21,029
SOFT COST $19,393,252 $1,342,268 $414,895 $563,900 $1,219,738 $3,234,696 $5,695,951 $4,309,554 $1,826,079 $786,172
Appendix: Page 11
CLIENT NAME
Property Name / Address
PROFORMA
QUARTERLY CASH FLOW
Quarter 9 Quarter 10 Quarter 11 Quarter 12 Quarter 13 Quarter 14 Quarter 15 Quarter 16
Year 3 Year 3 Year 3 Year 3 Year 4 Year 4 Year 4 Year 4
LEASE-UP FIRST STABILIZED YEAR
DEVELOPMENT COSTS TOTAL
Land / Existing Property $12,135,000 $0 $0 $0 $0 $0 $0 $0 $0
Eng Fees / Entitlement $1,282,000 $0 $0 $0 $0 $0 $0 $0 $0
PRE-DEVELOPMENT COSTS $13,417,000 $0 $0 $0 $0 $0 $0 $0 $0
Building $66,605,000 $0 $0 $0 $0 $0 $0 $0 $0
Parking $13,600,000 $0 $0 $0 $0 $0 $0 $0 $0
SAMPLE
Sitework $4,500,000 $0 $0 $0 $0 $0 $0 $0 $0
TIA (Retail / Commercial) $340,000 $0 $0 $0 $0 $0 $0 $0 $0
Contingency $8,504,500 $0 $0 $0 $0 $0 $0 $0 $0
HARD COST - CONSTRUCTION $93,549,500 $0 $0 $0 $0 $0 $0 $0 $0
Appendix: Page 12
CLIENT NAME
Property Name / Address
PROFORMA
QUARTERLY CASH FLOW
Time 0 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5 Quarter 6 Quarter 7 Quarter 8
Year 1 Year 1 Year 1 Year 1 Year 2 Year 2 Year 2 Year 2
PRE-DEV DEVELOPMENT
Total Number of Apartment Units 360 Units PreLease Start: Quarter 8 Pre Leasing
Apartments Leased Per Quarter 108 # PreLd Occ at Open: 30.00% 0 0 0 0 0 0 0 108
Cumulative Apartments Leased 84 Units/Qtr To Stabilization: 3 Quarters 0 0 0 0 0 0 0 108
Vacancy Due to Lease-Up (% of Gross Potential) - (Qtr-to-Qtr Avg) 85.0%
SAMPLE
Stabilized Vacancy (% of Gross Potential) 5.00% 0.0%
Overall Apartment Vacancy Rate (% of Gross Potential) 85.0%
Appendix: Page 13
CLIENT NAME
Property Name / Address
PROFORMA
QUARTERLY CASH FLOW
Quarter 9 Quarter 10 Quarter 11 Quarter 12 Quarter 13 Quarter 14 Quarter 15 Quarter 16
Year 3 Year 3 Year 3 Year 3 Year 4 Year 4 Year 4 Year 4
LEASE-UP FIRST STABILIZED YEAR
SAMPLE
Stabilized Vacancy (% of Gross Potential) 5.00% 0.0% 0.0% 0.0% 5.0% 5.0% 5.0% 5.0% 5.0%
Overall Apartment Vacancy Rate (% of Gross Potential) 58.3% 35.0% 11.7% 5.0% 5.0% 5.0% 5.0% 5.0%
Gross Potential Revenue $3,006,000 $3,006,000 $3,006,000 $3,006,000 $3,096,180 $3,096,180 $3,096,180 $3,096,180
Gross Annual Rent Escalation 0.00% 0.00% 0.00% 3.00% 0.00% 0.00% 0.00%
Less: Loss-to-Lease $0 $0 $0 $0 $0 $0 $0 $0
Loss-to-Lease as % of Gross Potential Rent 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Less: Vacancy $1,753,500 $1,052,100 $350,700 $150,300 $154,809 $154,809 $154,809 $154,809
Vacancy as % of Gross Potential Rent 58.3% 35.0% 11.7% 5.0% 5.0% 5.0% 5.0% 5.0%
Less: Concessions, Allowance, Bad Debt $15,030 $15,030 $15,030 $15,030 $15,481 $15,481 $15,481 $15,481
Other as % of Gross Potential Rent 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Effective Rental Income $1,237,470 $1,938,870 $2,640,270 $2,840,670 $2,925,890 $2,925,890 $2,925,890 $2,925,890
Other Income
Pet Fee & Cable Income $25.00/Mo Pay Rate = 30.00% $4,320 $6,210 $8,100 $8,100 $8,343 $8,343 $8,343 $8,343
Parking Income $75.00/Mo Pay Rate = 30.00% $12,960 $18,630 $24,300 $24,300 $25,029 $25,029 $25,029 $25,029
Miscellaneous Income $0 $0 $0 $0 $0 $0 $0 $0
Other Income $17,280 $24,840 $32,400 $32,400 $33,372 $33,372 $33,372 $33,372
Effective Gross Income (EGI) $1,254,750 $1,963,710 $2,672,670 $2,873,070 $2,959,262 $2,959,262 $2,959,262 $2,959,262
Appendix: Page 14
CLIENT NAME
Property Name / Address
PROFORMA
QUARTERLY CASH FLOW
Time 0 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5 Quarter 6 Quarter 7 Quarter 8
Year 1 Year 1 Year 1 Year 1 Year 2 Year 2 Year 2 Year 2
PRE-DEV DEVELOPMENT
Operating Expenses
Controllable Expenses
Payroll $1,300 / Unit / Year
R&M $200 / Unit / Year
Turnover $210 / Unit / Year
Recreational Amenities $100 / Unit / Year
Contracts & Landscaping $1,250 / Unit / Year
Leasing / Marketing $200 / Unit / Year
SAMPLE
Admin (Office, Other G&A) $250 / Unit / Year
Utilities $600 / Unit / Year
Controllable - Subtotal
Non-Controllable
Real Estate Taxes 1.250% of Project Cost
Insurance - Property $800 / Unit / Year
Management Fees 4.00% of EGI - (Property + Asset Management)
Reserves $250 / Unit / Year
Non-Controllable - Subtotal
Total Operating Expenses
Operating Expenses as % of EGI
Net Operating Income (NOI) - Apartments
Other Income (NNN) - Retail
Retail Vacancy Rate
Net Income - Retail
Net Operating Income (NOI)
Net Cash Flow Before Debt - Initial to Stabilization ($14,767,068) ($10,151,113) ($9,894,150) ($4,645,315) ($15,944,574) ($32,505,390) ($26,027,532) ($9,493,883) ($2,930,726)
Appendix: Page 15
CLIENT NAME
Property Name / Address
PROFORMA
QUARTERLY CASH FLOW
Quarter 9 Quarter 10 Quarter 11 Quarter 12 Quarter 13 Quarter 14 Quarter 15 Quarter 16
Year 3 Year 3 Year 3 Year 3 Year 4 Year 4 Year 4 Year 4
LEASE-UP FIRST STABILIZED YEAR
Operating Expenses
Controllable Expenses
Payroll $1,300 / Unit / Year $117,000 $117,000 $117,000 $117,000 $120,510 $120,510 $120,510 $120,510
R&M $200 / Unit / Year $18,000 $18,000 $18,000 $18,000 $18,540 $18,540 $18,540 $18,540
Turnover $210 / Unit / Year $18,900 $18,900 $18,900 $18,900 $19,467 $19,467 $19,467 $19,467
Recreational Amenities $100 / Unit / Year $9,000 $9,000 $9,000 $9,000 $9,270 $9,270 $9,270 $9,270
Contracts & Landscaping $1,250 / Unit / Year $112,500 $112,500 $112,500 $112,500 $115,875 $115,875 $115,875 $115,875
Leasing / Marketing $200 / Unit / Year $18,000 $18,000 $18,000 $18,000 $18,540 $18,540 $18,540 $18,540
SAMPLE
Admin (Office, Other G&A) $250 / Unit / Year $22,500 $22,500 $22,500 $22,500 $23,175 $23,175 $23,175 $23,175
Utilities $600 / Unit / Year $54,000 $54,000 $54,000 $54,000 $55,620 $55,620 $55,620 $55,620
Controllable - Subtotal $369,900 $369,900 $369,900 $369,900 $380,997 $380,997 $380,997 $380,997
Non-Controllable
Real Estate Taxes 1.250% of Project Cost $394,874 $394,874 $394,874 $394,874 $402,772 $402,772 $402,772 $402,772
Insurance - Property $800 / Unit / Year $72,000 $72,000 $72,000 $72,000 $74,160 $74,160 $74,160 $74,160
Management Fees 4.00% of EGI - (Property + Asset Management) $50,190 $78,548 $106,907 $114,923 $118,370 $118,370 $118,370 $118,370
Reserves $250 / Unit / Year $22,500 $22,500 $22,500 $22,500 $23,175 $23,175 $23,175 $23,175
Non-Controllable - Subtotal $539,564 $567,923 $596,281 $604,297 $618,477 $618,477 $618,477 $618,477
Total Operating Expenses $909,464 $937,823 $966,181 $974,197 $999,474 $999,474 $999,474 $999,474
Operating Expenses as % of EGI 72.5% 47.8% 36.2% 33.9% 33.8% 33.8% 33.8% 33.8%
Net Operating Income (NOI) - Apartments $345,286 $1,025,887 $1,706,489 $1,898,873 $1,959,788 $1,959,788 $1,959,788 $1,959,788
Other Income (NNN) - Retail $178,500 $178,500 $178,500 $178,500 $183,855 $183,855 $183,855 $183,855
Retail Vacancy Rate 58.3% 35.0% 11.7% 5.0% 5.0% 5.0% 5.0% 5.0%
Net Income - Retail $74,375 $116,025 $157,675 $169,575 $174,662 $174,662 $174,662 $174,662
Net Operating Income (NOI) $419,661 $1,141,912 $1,864,164 $2,068,448 $2,134,450 $2,134,450 $2,134,450 $2,134,450
Net Cash Flow Before Debt - Initial to Stabilization $419,661 $1,141,912 $1,864,164 $2,068,448 $2,134,450 $2,134,450 $2,134,450 $2,134,450
Appendix: Page 16
CLIENT NAME
Property Name / Address
PROFORMA
QUARTERLY CASH FLOW
Time 0 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5 Quarter 6 Quarter 7 Quarter 8
Year 1 Year 1 Year 1 Year 1 Year 2 Year 2 Year 2 Year 2
PRE-DEV DEVELOPMENT
TOTAL
A] Estimated Construction Interest
Max Construction Loan Estimate $106,029,020
Construction Interest - Annual Rate 6.00%
Construction Period 24 Months
Average Draw 60.00%
Est. Construction Loan Interest $7,634,089
Total Project Cost (Before Operating Reserve) (a) $133,993,842
SAMPLE
B] Estimated Operating Reserve (During Lease-Up)
Lease-Up Period (Months until Stabilization) 9 Months
Estimated EGI During Lease-Up $6,573,150
Estimated OpEx During Lease-Up $2,840,749
NOI During Lease-Up $3,732,401 (i)
Est. Construction Interest During Lease-Up $4,771,306 (ii)
Operating Reserve Required (During Lease-Up) (b) = (ii)-(i) $1,038,905
Estimated Total Project Costs (a) + (b) $135,032,746
Maximum Loan Balance $106,029,020
Equity Required $29,003,726 $14,767,068 $10,151,113 $4,085,545 $0 $0 $0 $0 $0 $0
Appendix: Page 17
CLIENT NAME
Property Name / Address
PROFORMA
QUARTERLY CASH FLOW
Quarter 9 Quarter 10 Quarter 11 Quarter 12 Quarter 13 Quarter 14 Quarter 15 Quarter 16
Year 3 Year 3 Year 3 Year 3 Year 4 Year 4 Year 4 Year 4
LEASE-UP FIRST STABILIZED YEAR
TOTAL
A] Estimated Construction Interest
Max Construction Loan Estimate $106,029,020
Construction Interest - Annual Rate 6.00%
Construction Period 24 Months
Average Draw 60.00%
Est. Construction Loan Interest $7,634,089
Total Project Cost (Before Operating Reserve) (a) $133,993,842
SAMPLE
B] Estimated Operating Reserve (During Lease-Up)
Lease-Up Period (Months until Stabilization) 9 Months
Estimated EGI During Lease-Up $6,573,150
Estimated OpEx During Lease-Up $2,840,749
NOI During Lease-Up $3,732,401 (i)
Est. Construction Interest During Lease-Up $4,771,306 (ii)
Operating Reserve Required (During Lease-Up) (b) = (ii)-(i) $1,038,905
Estimated Total Project Costs (a) + (b) $135,032,746
Maximum Loan Balance $106,029,020
Equity Required $29,003,726 $0 $0 $0 $0
Appendix: Page 18
CLIENT NAME
Property Name / Address
MONTHLY BUDGET
MONTHLY CASH FLOW - DEVELOPMENT BUDGET Total
TOTAL Month 0 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
PRE-DEVELOPMENT COST
(1) Land / Existing Property
1 1 Land Value / Value of Existing Property $12,000,000 $12,000,000 $0 $0 $0 $0 $0 $0
2 2 Real Estate Fees (Broker, Acquisition, Finder) None $0 $0 $0 $0 $0 $0 $0 $0
3 3 Title Policy Seller Pays $0 $0 $0 $0 $0 $0 $0 $0
5 4 Transfer Taxes Seller Pays $0 $0 $0 $0 $0 $0 $0 $0
7 5 Legal / Due Diligence $85,000 $85,000 $0 $0 $0 $0 $0 $0
8 6 Off-Site Improvements $33,333 $33,333 $0 $0 $0 $0 $0 $0
9 7 Miscellaneous Fees $16,667 $16,667 $0 $0 $0 $0 $0 $0
10 Subtotal $12,135,000 $12,135,000 $0 $0 $0 $0 $0 $0
11
12 (2) Eng Fees / Entitlement
13 1 Appraisal Fees $150,000 $150,000 $0 $0 $0 $0 $0 $0
14 2 Demolition Cost $700,000 $700,000 $0 $0 $0 $0 $0 $0
15 3 Market Study $100,000 $100,000 $0 $0 $0 $0 $0 $0
16 4 Planning & Zoning Fee - PUD Approval $150,000 $150,000 $0 $0 $0 $0 $0 $0
17 5 Lot Line Adjustment - Parcel Maps/Plats $100,000 $100,000 $0 $0 $0 $0 $0 $0
18 6 Entitlement Consultant w/Planning & Zoning $0 $0 $0 $0 $0 $0 $0 $0
19 7 Financial Consultant $25,000 $25,000 $0 $0 $0 $0 $0 $0
20 8 Special Development Fees $0 $0 $0 $0 $0 $0 $0 $0
21 9 Traffic Study $25,000 $25,000 $0 $0 $0 $0 $0 $0
22 10 Geotechnical Survey $7,000 $7,000 $0 $0 $0 $0 $0 $0
23 11 Environmental Survey - Phase I $7,500 $7,500 $0 $0 $0 $0 $0 $0
24 12 Environmental Survey - Phase II $7,500 $7,500 $0 $0 $0 $0 $0 $0
25 13 ALTA Survey $10,000 $10,000 $0 $0 $0 $0 $0 $0
26 14 Flood Certificate / Inspection Fee $0 $0 $0 $0 $0 $0 $0 $0
27 15 Hazardous Material Remediation $0 $0 $0 $0 $0 $0 $0 $0
28 Subtotal $1,282,000 $1,282,000 $0 $0 $0 $0 $0 $0
29
30 PRE-DEVELOPMENT COSTS $13,417,000 $13,417,000 $0 $0 $0 $0 $0 $0
31
32 HARD COST
33
34 (1) Building
## 1 Foundations $7,000,000 $0 $6,420 $4,391 $7,386 $12,410 $20,812 $34,789
SAMPLE
2 Substructure (Slab on Grade; Basement Excavation; Basement Walls) $13,000,000 $0 $11,923 $8,155 $13,717 $23,048 $38,651 $64,608
3 Superstructure (Floor & Roof Construction; Stair Construction) $30,000,000 $0 $27,516 $18,818 $31,655 $53,187 $89,193 $149,096
4 Exterior Closure (Walls; Doors/Windows) $7,000,000 $0 $6,420 $4,391 $7,386 $12,410 $20,812 $34,789
5 Roofing $750,000 $0 $688 $470 $791 $1,330 $2,230 $3,727
6 Interior Construction (Partitions; Interior Finishes; Doors/Windows) $3,000,000 $0 $2,752 $1,882 $3,165 $5,319 $8,919 $14,910
7 Elevators $780,000 $0 $715 $489 $823 $1,383 $2,319 $3,876
8 Mechanical (Plumbing; HVAC; Fire Protection; Other) $2,700,000 $0 $2,476 $1,694 $2,849 $4,787 $8,027 $13,419
9 Electrical $1,700,000 $0 $1,559 $1,066 $1,794 $3,014 $5,054 $8,449
10 Equipment (Fixed/Movable Equipment; Furnishings) $675,000 $0 $619 $423 $712 $1,197 $2,007 $3,355
## Subtotal $66,605,000 $0 $61,089 $41,779 $70,279 $118,083 $198,024 $331,018
##
## (2) Parking
## 1 At Grade Parking $4,080,000 $0 $3,742 $1,100,932 $2,975,326 $0 $0 $0
## 2 Below Grade Parking $9,520,000 $0 $8,732 $86,648 $860,644 $4,313,666 $3,651,824 $598,487
## Subtotal $13,600,000 $0 $12,474 $1,187,580 $3,835,969 $4,313,666 $3,651,824 $598,487
##
## (3) Sitework
## Sitework $4,500,000 $0 $4,127 $1,214,264 $3,281,609 $0 $0 $0
##
## (4) TIA (Retail / Commercial)
## Tenant Improvement Allowance $340,000 $0 $0 $0 $0 $0 $0 $0
## Subtotal $340,000 $0 $0 $0 $0 $0 $0 $0
(5) Contingency
Hard Cost Contingency $8,504,500 $7,800 $5,053 $8,317 $13,678 $22,455 $36,765 $59,926
##
## HARD COST - CONSTRUCTION $93,549,500 $7,800 $82,743 $2,451,940 $7,201,535 $4,454,204 $3,886,613 $989,432
##
Appendix: Page 19
CLIENT NAME
Property Name / Address
MONTHLY BUDGET
MONTHLY CASH FLOW - DEVELOPMENT BUDGET Total
TOTAL Month 0 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
## SOFT COST
##
## (1) Design & Consultants
## 1 Architect $1,500,000 $1,376 $891 $1,467 $2,412 $3,961 $6,485 $10,570
## 2 MEP & Fire Protection $500,000 $459 $297 $489 $804 $1,320 $2,162 $3,523
## 3 Structural $400,000 $367 $238 $391 $643 $1,056 $1,729 $2,819
## 4 ADA $100,000 $92 $59 $98 $161 $264 $432 $705
## 5 Surveyor $75,000 $69 $45 $73 $121 $198 $324 $528
## 6 Civil $70,000 $64 $42 $68 $113 $185 $303 $493
## 7 Exterior Skin $0 $0 $0 $0 $0 $0 $0 $0
## 8 Landscaping $200,000 $0 $183 $125 $211 $355 $595 $994
## 9 Restaurant & Kitchen $0 $0 $0 $0 $0 $0 $0 $0
## 10 Roofing & Waterproofing $20,000 $0 $18 $13 $21 $35 $59 $99
## 11 Swimming Pool & Equipment $15,000 $0 $14 $9 $16 $27 $45 $75
## 12 Vertical Transportation $10,000 $0 $9 $6 $11 $18 $30 $50
## 13 Parking $30,000 $0 $28 $19 $32 $53 $89 $149
## 14 Acoustical $10,000 $0 $9 $6 $11 $18 $30 $50
## 15 Audio Visual $5,000 $0 $5 $3 $5 $9 $15 $25
## 16 Telecommunications / Data $15,000 $0 $14 $9 $16 $27 $45 $75
## 17 Security $15,000 $0 $14 $9 $16 $27 $45 $75
## 18 Contingency $148,250 $0 $136 $93 $156 $263 $441 $737
## Subtotal $3,113,250 $2,426 $2,001 $2,880 $4,748 $7,814 $12,827 $20,965
##
## (2) Miscellaneous Development Cost
## 1 Site Security During Construction $200,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000
## 2 Utility Consumption $50,000 $46 $30 $49 $80 $132 $216 $352
## 3 Drawing / Printing $10,000 $400 $400 $400 $400 $400 $400 $400
## 4 Team Meeting / Catering $5,000 $200 $200 $200 $200 $200 $200 $200
## Subtotal $265,000 $8,646 $8,630 $8,649 $8,680 $8,732 $8,816 $8,952
##
## (3) Permits & Fees
## 1 Building Permit Fee $349,936 $349,936 $0 $0 $0 $0 $0 $0
## 2 Plan Check Fee $87,484 $87,484 $0 $0 $0 $0 $0 $0
## 3 Grading Permit $93,316 $93,316 $0 $0 $0 $0 $0 $0
SAMPLE
## 4 Water & Sewer Tap Fees $0 $0 $0 $0 $0 $0 $0 $0
## 5 State Imposed Fees $0 $0 $0 $0 $0 $0 $0 $0
## 6 School Impact Fees $466,582 $466,582 $0 $0 $0 $0 $0 $0
## 7 Other Misc. Permits & Fees $233,291 $233,291 $0 $0 $0 $0 $0 $0
## Subtotal $1,230,609 $1,230,609 $0 $0 $0 $0 $0 $0
##
## (4) Testing & Inspections
## 1 Soils Testing $20,000 $10,000 $10,000 $0 $0 $0 $0 $0
## 2 Concrete Testing / Reinforcing Inspec $15,000 $0 $14 $14 $28 $57 $115 $227
## 3 Masonry Testing / Inspection $15,000 $0 $14 $14 $28 $57 $115 $227
## 4 Steel Testing / Inspections $35,000 $0 $32 $33 $66 $134 $268 $530
## 5 Fireproofing Testing / Inspections $25,000 $0 $0 $0 $0 $0 $0 $0
## 6 Building Envelope / Window Wall Testing $20,000 $0 $0 $0 $0 $0 $0 $0
## Subtotal $130,000 $10,000 $10,060 $61 $123 $248 $497 $984
##
## (5) Legal & Accounting
## 1 Due Diligence / Purchase Agreement $50,000 $50,000 $0 $0 $0 $0 $0 $0
## 2 Development / Construction Agreement $30,000 $30,000 $0 $0 $0 $0 $0 $0
## 3 Consultant / Broker Agrmt / CC&Rs $30,000 $0 $0 $0 $0 $0 $0 $0
## 4 Real Estate Tax Consultant / Audits / Accounting $20,000 $0 $833 $833 $833 $833 $833 $833
## 5 Miscellaneous $5,000 $0 $208 $208 $208 $208 $208 $208
## Subtotal $135,000 $80,000 $1,042 $1,042 $1,042 $1,042 $1,042 $1,042
##
## (6) Insurance During Construction
## 1 Builders Risk Insurance (Hard Cost) $561,297 $0 $23,387 $23,387 $23,387 $23,387 $23,387 $23,387
## 2 Builders Risk Insurance (Soft Cost) $36,552 $0 $1,523 $1,523 $1,523 $1,523 $1,523 $1,523
## 3 General Liablility Wrap-up Policy $1,403,243 $0 $58,468 $58,468 $58,468 $58,468 $58,468 $58,468
## 4 Earthquake Insurance $0 $0 $0 $0 $0 $0 $0 $0
## 5 Professional Insurance - e.g.: CPPIC $50,000 $0 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083
## 6 Commercial Umbrella $0 $0 $0 $0 $0 $0 $0 $0
## 7 Force Majeure $0 $0 $0 $0 $0 $0 $0 $0
## Subtotal $2,051,091 $0 $85,462 $85,462 $85,462 $85,462 $85,462 $85,462
##
## (7) Taxes During Construction
## 1 Property Taxes $577,728 $0 $24,072 $24,072 $24,072 $24,072 $24,072 $24,072
## 2 Sales Tax $0 $0 $0 $0 $0 $0 $0 $0
## Subtotal $577,728 $0 $24,072 $24,072 $24,072 $24,072 $24,072 $24,072
##
## (8) Marketing / Leasing Office
## 1 Leasing Office (Staff/Equip/Furn/Trailer) $50,000 $0 $0 $0 $0 $0 $0 $0
## 2 Model Room Construction $75,000 $0 $0 $0 $0 $0 $0 $0
## 3 Model Room Furniture $25,000 $0 $0 $0 $0 $0 $0 $0
## 4 Marketing (Print/Media Advt/PR) $50,000 $0 $0 $0 $0 $0 $0 $0
## 5 Leasing Commissions (Retail/Commercial) $142,800 $0 $0 $0 $0 $0 $0 $0
## 6 Other $5,000 $0 $208 $208 $208 $208 $208 $208
## Subtotal $347,800 $0 $208 $208 $208 $208 $208 $208
##
## (9) Developer, Contractor, PM Fees & Escalations
## 1 Developer / Contractor Fee $5,612,970 $5,148 $3,335 $5,489 $9,027 $14,820 $24,265 $39,551
2 Project Management Fee (Hard Cost, Net of Contingency) $1,700,900 $1,560 $1,011 $1,663 $2,736 $4,491 $7,353 $11,985
## 3 Escalations $3,305,416 $3,032 $1,964 $3,233 $5,316 $8,728 $14,289 $23,291
## Subtotal $10,619,286 $9,740 $6,309 $10,386 $17,079 $28,039 $45,907 $74,828
##
## (10) Soft Cost Contingency
## 1 Soft Cost Contingency $923,488 $847 $549 $903 $1,485 $2,438 $3,992 $6,507
SOFT COST $19,393,252 $1,342,268 $138,332 $133,663 $142,900 $158,056 $182,824 $223,021
TOTAL COST, PRE-FINANCING $126,359,752 $14,767,068 $221,075 $2,585,604 $7,344,434 $4,612,260 $4,069,437 $1,212,453
Appendix: Page 20
CLIENT NAME
Property Name / Address
MONTHLY BUDGET
MONTHLY CASH FLOW - DEVELOPMENT BUDGET Total
TOTAL Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
PRE-DEVELOPMENT COST
(1) Land / Existing Property
1 Land Value / Value of Existing Property $12,000,000 $0 $0 $0 $0 $0 $0
2 Real Estate Fees (Broker, Acquisition, Finder) None $0 $0 $0 $0 $0 $0 $0
3 Title Policy Seller Pays $0 $0 $0 $0 $0 $0 $0
4 Transfer Taxes Seller Pays $0 $0 $0 $0 $0 $0 $0
5 Legal / Due Diligence $85,000 $0 $0 $0 $0 $0 $0
6 Off-Site Improvements $33,333 $0 $0 $0 $0 $0 $0
7 Miscellaneous Fees $16,667 $0 $0 $0 $0 $0 $0
Subtotal $12,135,000 $0 $0 $0 $0 $0 $0
(2) Eng Fees / Entitlement
1 Appraisal Fees $150,000 $0 $0 $0 $0 $0 $0
2 Demolition Cost $700,000 $0 $0 $0 $0 $0 $0
3 Market Study $100,000 $0 $0 $0 $0 $0 $0
4 Planning & Zoning Fee - PUD Approval $150,000 $0 $0 $0 $0 $0 $0
5 Lot Line Adjustment - Parcel Maps/Plats $100,000 $0 $0 $0 $0 $0 $0
6 Entitlement Consultant w/Planning & Zoning $0 $0 $0 $0 $0 $0 $0
7 Financial Consultant $25,000 $0 $0 $0 $0 $0 $0
8 Special Development Fees $0 $0 $0 $0 $0 $0 $0
9 Traffic Study $25,000 $0 $0 $0 $0 $0 $0
10 Geotechnical Survey $7,000 $0 $0 $0 $0 $0 $0
11 Environmental Survey - Phase I $7,500 $0 $0 $0 $0 $0 $0
12 Environmental Survey - Phase II $7,500 $0 $0 $0 $0 $0 $0
13 ALTA Survey $10,000 $0 $0 $0 $0 $0 $0
14 Flood Certificate / Inspection Fee $0 $0 $0 $0 $0 $0 $0
15 Hazardous Material Remediation $0 $0 $0 $0 $0 $0 $0
Subtotal $1,282,000 $0 $0 $0 $0 $0 $0
PRE-DEVELOPMENT COSTS $13,417,000 $0 $0 $0 $0 $0 $0
HARD COST
(1) Building
1 Foundations $7,000,000 $57,842 $95,317 $154,786 $245,473 $375,035 $541,525
SAMPLE
2 Substructure (Slab on Grade; Basement Excavation; Basement Walls) $13,000,000 $107,421 $177,017 $287,459 $455,878 $696,493 $1,005,689
3 Superstructure (Floor & Roof Construction; Stair Construction) $30,000,000 $247,894 $408,500 $663,367 $1,052,027 $1,607,291 $2,320,821
4 Exterior Closure (Walls; Doors/Windows) $7,000,000 $57,842 $95,317 $154,786 $245,473 $375,035 $541,525
5 Roofing $750,000 $6,197 $10,213 $16,584 $26,301 $40,182 $58,021
6 Interior Construction (Partitions; Interior Finishes; Doors/Windows) $3,000,000 $24,789 $40,850 $66,337 $105,203 $160,729 $232,082
7 Elevators $780,000 $6,445 $10,621 $17,248 $27,353 $41,790 $60,341
8 Mechanical (Plumbing; HVAC; Fire Protection; Other) $2,700,000 $22,310 $36,765 $59,703 $94,682 $144,656 $208,874
9 Electrical $1,700,000 $14,047 $23,148 $37,591 $59,615 $91,080 $131,513
10 Equipment (Fixed/Movable Equipment; Furnishings) $675,000 $5,578 $9,191 $14,926 $23,671 $36,164 $52,218
Subtotal $66,605,000 $550,366 $906,938 $1,472,785 $2,335,675 $3,568,454 $5,152,609
(2) Parking
1 At Grade Parking $4,080,000 $0 $0 $0 $0 $0 $0
2 Below Grade Parking $9,520,000 $0 $0 $0 $0 $0 $0
Subtotal $13,600,000 $0 $0 $0 $0 $0 $0
(3) Sitework
Sitework $4,500,000 $0 $0 $0 $0 $0 $0
(4) TIA (Retail / Commercial)
Tenant Improvement Allowance $340,000 $0 $0 $0 $0 $0 $0
Subtotal $340,000 $0 $0 $0 $0 $0 $0
(5) Contingency
Hard Cost Contingency $8,504,500 $96,971 $155,085 $243,432 $371,109 $541,299 $740,732
HARD COST - CONSTRUCTION $93,549,500 $647,337 $1,062,024 $1,716,217 $2,706,784 $4,109,754 $5,893,341
Appendix: Page 21
CLIENT NAME
Property Name / Address
MONTHLY BUDGET
MONTHLY CASH FLOW - DEVELOPMENT BUDGET Total
TOTAL Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
SOFT COST
(1) Design & Consultants
1 Architect $1,500,000 $17,104 $27,354 $42,936 $65,455 $95,473 $130,648
2 MEP & Fire Protection $500,000 $5,701 $9,118 $14,312 $21,818 $31,824 $43,549
3 Structural $400,000 $4,561 $7,294 $11,450 $17,455 $25,459 $34,840
4 ADA $100,000 $1,140 $1,824 $2,862 $4,364 $6,365 $8,710
5 Surveyor $75,000 $855 $1,368 $2,147 $3,273 $4,774 $6,532
6 Civil $70,000 $798 $1,276 $2,004 $3,055 $4,455 $6,097
7 Exterior Skin $0 $0 $0 $0 $0 $0 $0
8 Landscaping $200,000 $1,653 $2,723 $4,422 $7,014 $10,715 $15,472
9 Restaurant & Kitchen $0 $0 $0 $0 $0 $0 $0
10 Roofing & Waterproofing $20,000 $165 $272 $442 $701 $1,072 $1,547
11 Swimming Pool & Equipment $15,000 $124 $204 $332 $526 $804 $1,160
12 Vertical Transportation $10,000 $83 $136 $221 $351 $536 $774
13 Parking $30,000 $248 $409 $663 $1,052 $1,607 $2,321
14 Acoustical $10,000 $83 $136 $221 $351 $536 $774
15 Audio Visual $5,000 $41 $68 $111 $175 $268 $387
16 Telecommunications / Data $15,000 $124 $204 $332 $526 $804 $1,160
17 Security $15,000 $124 $204 $332 $526 $804 $1,160
18 Contingency $148,250 $1,225 $2,019 $3,278 $5,199 $7,943 $11,469
Subtotal $3,113,250 $34,028 $54,609 $86,064 $131,840 $193,438 $266,601
(2) Miscellaneous Development Cost
1 Site Security During Construction $200,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000
2 Utility Consumption $50,000 $570 $912 $1,431 $2,182 $3,182 $4,355
3 Drawing / Printing $10,000 $400 $400 $400 $400 $400 $400
4 Team Meeting / Catering $5,000 $200 $200 $200 $200 $200 $200
Subtotal $265,000 $9,170 $9,512 $10,031 $10,782 $11,782 $12,955
(3) Permits & Fees
1 Building Permit Fee $349,936 $0 $0 $0 $0 $0 $0
2 Plan Check Fee $87,484 $0 $0 $0 $0 $0 $0
3 Grading Permit $93,316 $0 $0 $0 $0 $0 $0
SAMPLE
4 Water & Sewer Tap Fees $0 $0 $0 $0 $0 $0 $0
5 State Imposed Fees $0 $0 $0 $0 $0 $0 $0
6 School Impact Fees $466,582 $0 $0 $0 $0 $0 $0
7 Other Misc. Permits & Fees $233,291 $0 $0 $0 $0 $0 $0
Subtotal $1,230,609 $0 $0 $0 $0 $0 $0
(4) Testing & Inspections
1 Soils Testing $20,000 $0 $0 $0 $0 $0 $0
2 Concrete Testing / Reinforcing Inspec $15,000 $439 $814 $1,393 $2,088 $2,583 $2,532
3 Masonry Testing / Inspection $15,000 $439 $814 $1,393 $2,088 $2,583 $2,532
4 Steel Testing / Inspections $35,000 $1,025 $1,899 $3,250 $4,872 $6,027 $5,908
5 Fireproofing Testing / Inspections $25,000 $0 $0 $0 $0 $0 $0
6 Building Envelope / Window Wall Testing $20,000 $0 $0 $0 $0 $0 $0
Subtotal $130,000 $1,904 $3,527 $6,035 $9,048 $11,193 $10,972
(5) Legal & Accounting
1 Due Diligence / Purchase Agreement $50,000 $0 $0 $0 $0 $0 $0
2 Development / Construction Agreement $30,000 $0 $0 $0 $0 $0 $0
3 Consultant / Broker Agrmt / CC&Rs $30,000 $0 $0 $0 $0 $0 $0
4 Real Estate Tax Consultant / Audits / Accounting $20,000 $833 $833 $833 $833 $833 $833
5 Miscellaneous $5,000 $208 $208 $208 $208 $208 $208
Subtotal $135,000 $1,042 $1,042 $1,042 $1,042 $1,042 $1,042
TOTAL COST, PRE-FINANCING $126,359,752 $934,839 $1,450,947 $2,259,530 $3,472,927 $5,171,633 $7,300,015
Appendix: Page 22
CLIENT NAME
Property Name / Address
MONTHLY BUDGET
MONTHLY CASH FLOW - DEVELOPMENT BUDGET Total
TOTAL Month 13 Month 14 Month 15 Month 16 Month 17 Month 18
PRE-DEVELOPMENT COST
(1) Land / Existing Property
1 Land Value / Value of Existing Property $12,000,000 $0 $0 $0 $0 $0 $0
2 Real Estate Fees (Broker, Acquisition, Finder) None $0 $0 $0 $0 $0 $0 $0
3 Title Policy Seller Pays $0 $0 $0 $0 $0 $0 $0
4 Transfer Taxes Seller Pays $0 $0 $0 $0 $0 $0 $0
5 Legal / Due Diligence $85,000 $0 $0 $0 $0 $0 $0
6 Off-Site Improvements $33,333 $0 $0 $0 $0 $0 $0
7 Miscellaneous Fees $16,667 $0 $0 $0 $0 $0 $0
Subtotal $12,135,000 $0 $0 $0 $0 $0 $0
(2) Eng Fees / Entitlement
1 Appraisal Fees $150,000 $0 $0 $0 $0 $0 $0
2 Demolition Cost $700,000 $0 $0 $0 $0 $0 $0
3 Market Study $100,000 $0 $0 $0 $0 $0 $0
4 Planning & Zoning Fee - PUD Approval $150,000 $0 $0 $0 $0 $0 $0
5 Lot Line Adjustment - Parcel Maps/Plats $100,000 $0 $0 $0 $0 $0 $0
6 Entitlement Consultant w/Planning & Zoning $0 $0 $0 $0 $0 $0 $0
7 Financial Consultant $25,000 $0 $0 $0 $0 $0 $0
8 Special Development Fees $0 $0 $0 $0 $0 $0 $0
9 Traffic Study $25,000 $0 $0 $0 $0 $0 $0
10 Geotechnical Survey $7,000 $0 $0 $0 $0 $0 $0
11 Environmental Survey - Phase I $7,500 $0 $0 $0 $0 $0 $0
12 Environmental Survey - Phase II $7,500 $0 $0 $0 $0 $0 $0
13 ALTA Survey $10,000 $0 $0 $0 $0 $0 $0
14 Flood Certificate / Inspection Fee $0 $0 $0 $0 $0 $0 $0
15 Hazardous Material Remediation $0 $0 $0 $0 $0 $0 $0
Subtotal $1,282,000 $0 $0 $0 $0 $0 $0
PRE-DEVELOPMENT COSTS $13,417,000 $0 $0 $0 $0 $0 $0
HARD COST
(1) Building
1 Foundations $7,000,000 $721,419 $864,482 $913,593 $845,814 $692,364 $511,864
SAMPLE
2 Substructure (Slab on Grade; Basement Excavation; Basement Walls) $13,000,000 $1,339,778 $1,605,467 $1,696,673 $1,570,797 $1,285,818 $950,604
3 Superstructure (Floor & Roof Construction; Stair Construction) $30,000,000 $3,091,795 $3,704,923 $3,915,400 $3,624,917 $2,967,272 $2,193,701
4 Exterior Closure (Walls; Doors/Windows) $7,000,000 $721,419 $864,482 $913,593 $845,814 $692,364 $511,864
5 Roofing $750,000 $77,295 $92,623 $97,885 $90,623 $74,182 $54,843
6 Interior Construction (Partitions; Interior Finishes; Doors/Windows) $3,000,000 $309,180 $370,492 $391,540 $362,492 $296,727 $219,370
7 Elevators $780,000 $80,387 $96,328 $101,800 $94,248 $77,149 $57,036
8 Mechanical (Plumbing; HVAC; Fire Protection; Other) $2,700,000 $278,262 $333,443 $352,386 $326,243 $267,055 $197,433
9 Electrical $1,700,000 $175,202 $209,946 $221,873 $205,412 $168,145 $124,310
10 Equipment (Fixed/Movable Equipment; Furnishings) $675,000 $69,565 $83,361 $88,097 $81,561 $66,764 $49,358
Subtotal $66,605,000 $6,864,301 $8,225,546 $8,692,841 $8,047,920 $6,587,839 $4,870,382
(2) Parking
1 At Grade Parking $4,080,000 $0 $0 $0 $0 $0 $0
2 Below Grade Parking $9,520,000 $0 $0 $0 $0 $0 $0
Subtotal $13,600,000 $0 $0 $0 $0 $0 $0
(3) Sitework
Sitework $4,500,000 $0 $0 $0 $0 $0 $0
(4) TIA (Retail / Commercial)
Tenant Improvement Allowance $340,000 $0 $0 $0 $0 $0 $0
Subtotal $340,000 $0 $0 $0 $0 $0 $0
(5) Contingency
Hard Cost Contingency $8,504,500 $929,805 $1,048,473 $1,048,473 $929,805 $740,732 $541,299
HARD COST - CONSTRUCTION $93,549,500 $7,794,107 $9,274,019 $9,741,313 $8,977,725 $7,328,571 $5,411,682
Appendix: Page 23
CLIENT NAME
Property Name / Address
MONTHLY BUDGET
MONTHLY CASH FLOW - DEVELOPMENT BUDGET Total
TOTAL Month 13 Month 14 Month 15 Month 16 Month 17 Month 18
SOFT COST
(1) Design & Consultants
1 Architect $1,500,000 $163,996 $184,927 $184,927 $163,996 $130,648 $95,473
2 MEP & Fire Protection $500,000 $54,665 $61,642 $61,642 $54,665 $43,549 $31,824
3 Structural $400,000 $43,732 $49,314 $49,314 $43,732 $34,840 $25,459
4 ADA $100,000 $10,933 $12,328 $12,328 $10,933 $8,710 $6,365
5 Surveyor $75,000 $8,200 $9,246 $9,246 $8,200 $6,532 $4,774
6 Civil $70,000 $7,653 $8,630 $8,630 $7,653 $6,097 $4,455
7 Exterior Skin $0 $0 $0 $0 $0 $0 $0
8 Landscaping $200,000 $20,612 $24,699 $26,103 $24,166 $19,782 $14,625
9 Restaurant & Kitchen $0 $0 $0 $0 $0 $0 $0
10 Roofing & Waterproofing $20,000 $2,061 $2,470 $2,610 $2,417 $1,978 $1,462
11 Swimming Pool & Equipment $15,000 $1,546 $1,852 $1,958 $1,812 $1,484 $1,097
12 Vertical Transportation $10,000 $1,031 $1,235 $1,305 $1,208 $989 $731
13 Parking $30,000 $3,092 $3,705 $3,915 $3,625 $2,967 $2,194
14 Acoustical $10,000 $1,031 $1,235 $1,305 $1,208 $989 $731
15 Audio Visual $5,000 $515 $617 $653 $604 $495 $366
16 Telecommunications / Data $15,000 $1,546 $1,852 $1,958 $1,812 $1,484 $1,097
17 Security $15,000 $1,546 $1,852 $1,958 $1,812 $1,484 $1,097
18 Contingency $148,250 $15,279 $18,308 $19,349 $17,913 $14,663 $10,841
Subtotal $3,113,250 $337,438 $383,915 $387,200 $345,759 $276,691 $202,591
(2) Miscellaneous Development Cost
1 Site Security During Construction $200,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000
2 Utility Consumption $50,000 $5,467 $6,164 $6,164 $5,467 $4,355 $3,182
3 Drawing / Printing $10,000 $400 $400 $400 $400 $400 $400
4 Team Meeting / Catering $5,000 $200 $200 $200 $200 $200 $200
Subtotal $265,000 $14,067 $14,764 $14,764 $14,067 $12,955 $11,782
(3) Permits & Fees
1 Building Permit Fee $349,936 $0 $0 $0 $0 $0 $0
2 Plan Check Fee $87,484 $0 $0 $0 $0 $0 $0
3 Grading Permit $93,316 $0 $0 $0 $0 $0 $0
SAMPLE
4 Water & Sewer Tap Fees $0 $0 $0 $0 $0 $0 $0
5 State Imposed Fees $0 $0 $0 $0 $0 $0 $0
6 School Impact Fees $466,582 $0 $0 $0 $0 $0 $0
7 Other Misc. Permits & Fees $233,291 $0 $0 $0 $0 $0 $0
Subtotal $1,230,609 $0 $0 $0 $0 $0 $0
(4) Testing & Inspections
1 Soils Testing $20,000 $0 $0 $0 $0 $0 $0
2 Concrete Testing / Reinforcing Inspec $15,000 $1,975 $1,283 $738 $395 $203 $102
3 Masonry Testing / Inspection $15,000 $1,975 $1,283 $738 $395 $203 $102
4 Steel Testing / Inspections $35,000 $4,608 $2,994 $1,721 $921 $474 $239
5 Fireproofing Testing / Inspections $25,000 $23 $45 $134 $390 $1,091 $2,741
6 Building Envelope / Window Wall Testing $20,000 $18 $36 $107 $312 $873 $2,193
Subtotal $130,000 $8,599 $5,642 $3,437 $2,411 $2,843 $5,377
(5) Legal & Accounting
1 Due Diligence / Purchase Agreement $50,000 $0 $0 $0 $0 $0 $0
2 Development / Construction Agreement $30,000 $0 $0 $0 $0 $0 $0
3 Consultant / Broker Agrmt / CC&Rs $30,000 $0 $0 $0 $0 $0 $15,000
4 Real Estate Tax Consultant / Audits / Accounting $20,000 $833 $833 $833 $833 $833 $833
5 Miscellaneous $5,000 $208 $208 $208 $208 $208 $208
Subtotal $135,000 $1,042 $1,042 $1,042 $1,042 $1,042 $16,042
TOTAL COST, PRE-FINANCING $126,359,752 $9,555,544 $11,240,735 $11,709,111 $10,741,296 $8,765,772 $6,520,464
Appendix: Page 24
CLIENT NAME
Property Name / Address
MONTHLY BUDGET
MONTHLY CASH FLOW - DEVELOPMENT BUDGET Total
TOTAL Month 19 Month 20 Month 21 Month 22 Month 23 Month 24
PRE-DEVELOPMENT COST
(1) Land / Existing Property
1 Land Value / Value of Existing Property $12,000,000 $0 $0 $0 $0 $0 $0
2 Real Estate Fees (Broker, Acquisition, Finder) None $0 $0 $0 $0 $0 $0 $0
3 Title Policy Seller Pays $0 $0 $0 $0 $0 $0 $0
4 Transfer Taxes Seller Pays $0 $0 $0 $0 $0 $0 $0
5 Legal / Due Diligence $85,000 $0 $0 $0 $0 $0 $0
6 Off-Site Improvements $33,333 $0 $0 $0 $0 $0 $0
7 Miscellaneous Fees $16,667 $0 $0 $0 $0 $0 $0
Subtotal $12,135,000 $0 $0 $0 $0 $0 $0
(2) Eng Fees / Entitlement
1 Appraisal Fees $150,000 $0 $0 $0 $0 $0 $0
2 Demolition Cost $700,000 $0 $0 $0 $0 $0 $0
3 Market Study $100,000 $0 $0 $0 $0 $0 $0
4 Planning & Zoning Fee - PUD Approval $150,000 $0 $0 $0 $0 $0 $0
5 Lot Line Adjustment - Parcel Maps/Plats $100,000 $0 $0 $0 $0 $0 $0
6 Entitlement Consultant w/Planning & Zoning $0 $0 $0 $0 $0 $0 $0
7 Financial Consultant $25,000 $0 $0 $0 $0 $0 $0
8 Special Development Fees $0 $0 $0 $0 $0 $0 $0
9 Traffic Study $25,000 $0 $0 $0 $0 $0 $0
10 Geotechnical Survey $7,000 $0 $0 $0 $0 $0 $0
11 Environmental Survey - Phase I $7,500 $0 $0 $0 $0 $0 $0
12 Environmental Survey - Phase II $7,500 $0 $0 $0 $0 $0 $0
13 ALTA Survey $10,000 $0 $0 $0 $0 $0 $0
14 Flood Certificate / Inspection Fee $0 $0 $0 $0 $0 $0 $0
15 Hazardous Material Remediation $0 $0 $0 $0 $0 $0 $0
Subtotal $1,282,000 $0 $0 $0 $0 $0 $0
PRE-DEVELOPMENT COSTS $13,417,000 $0 $0 $0 $0 $0 $0
HARD COST
(1) Building
1 Foundations $7,000,000 $350,624 $227,804 $142,963 $87,776 $53,169 $31,944
SAMPLE
2 Substructure (Slab on Grade; Basement Excavation; Basement Walls) $13,000,000 $651,158 $423,065 $265,503 $163,012 $98,743 $59,324
3 Superstructure (Floor & Roof Construction; Stair Construction) $30,000,000 $1,502,673 $976,304 $612,699 $376,182 $227,868 $136,902
4 Exterior Closure (Walls; Doors/Windows) $7,000,000 $350,624 $227,804 $142,963 $87,776 $53,169 $31,944
5 Roofing $750,000 $37,567 $24,408 $15,317 $9,405 $5,697 $3,423
6 Interior Construction (Partitions; Interior Finishes; Doors/Windows) $3,000,000 $150,267 $97,630 $61,270 $37,618 $22,787 $13,690
7 Elevators $780,000 $39,069 $25,384 $15,930 $9,781 $5,925 $3,559
8 Mechanical (Plumbing; HVAC; Fire Protection; Other) $2,700,000 $135,241 $87,867 $55,143 $33,856 $20,508 $12,321
9 Electrical $1,700,000 $85,151 $55,324 $34,720 $21,317 $12,913 $7,758
10 Equipment (Fixed/Movable Equipment; Furnishings) $675,000 $33,810 $21,967 $13,786 $8,464 $5,127 $3,080
Subtotal $66,605,000 $3,336,184 $2,167,558 $1,360,293 $835,186 $505,906 $303,944
(2) Parking
1 At Grade Parking $4,080,000 $0 $0 $0 $0 $0 $0
2 Below Grade Parking $9,520,000 $0 $0 $0 $0 $0 $0
Subtotal $13,600,000 $0 $0 $0 $0 $0 $0
(3) Sitework
Sitework $4,500,000 $0 $0 $0 $0 $0 $0
(4) TIA (Retail / Commercial)
Tenant Improvement Allowance $340,000 $312 $3,095 $30,737 $154,059 $130,422 $21,375
Subtotal $340,000 $312 $3,095 $30,737 $154,059 $130,422 $21,375
(5) Contingency
Hard Cost Contingency $8,504,500 $371,109 $243,432 $155,085 $96,971 $59,926 $36,765
HARD COST - CONSTRUCTION $93,549,500 $3,707,605 $2,414,084 $1,546,116 $1,086,217 $696,254 $362,084
Appendix: Page 25
CLIENT NAME
Property Name / Address
MONTHLY BUDGET
MONTHLY CASH FLOW - DEVELOPMENT BUDGET Total
TOTAL Month 19 Month 20 Month 21 Month 22 Month 23 Month 24
SOFT COST
(1) Design & Consultants
1 Architect $1,500,000 $65,455 $42,936 $27,354 $17,104 $10,570 $6,485
2 MEP & Fire Protection $500,000 $21,818 $14,312 $9,118 $5,701 $3,523 $2,162
3 Structural $400,000 $17,455 $11,450 $7,294 $4,561 $2,819 $1,729
4 ADA $100,000 $4,364 $2,862 $1,824 $1,140 $705 $432
5 Surveyor $75,000 $3,273 $2,147 $1,368 $855 $528 $324
6 Civil $70,000 $3,055 $2,004 $1,276 $798 $493 $303
7 Exterior Skin $0 $0 $0 $0 $0 $0 $0
8 Landscaping $200,000 $10,018 $6,509 $4,085 $2,508 $1,519 $913
9 Restaurant & Kitchen $0 $0 $0 $0 $0 $0 $0
10 Roofing & Waterproofing $20,000 $1,002 $651 $408 $251 $152 $91
11 Swimming Pool & Equipment $15,000 $751 $488 $306 $188 $114 $68
12 Vertical Transportation $10,000 $501 $325 $204 $125 $76 $46
13 Parking $30,000 $1,503 $976 $613 $376 $228 $137
14 Acoustical $10,000 $501 $325 $204 $125 $76 $46
15 Audio Visual $5,000 $250 $163 $102 $63 $38 $23
16 Telecommunications / Data $15,000 $751 $488 $306 $188 $114 $68
17 Security $15,000 $751 $488 $306 $188 $114 $68
18 Contingency $148,250 $7,426 $4,825 $3,028 $1,859 $1,126 $677
Subtotal $3,113,250 $138,874 $90,949 $57,797 $36,031 $22,194 $13,571
(2) Miscellaneous Development Cost
1 Site Security During Construction $200,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000
2 Utility Consumption $50,000 $2,182 $1,431 $912 $570 $352 $216
3 Drawing / Printing $10,000 $400 $400 $400 $400 $400 $400
4 Team Meeting / Catering $5,000 $200 $200 $200 $200 $200 $200
Subtotal $265,000 $10,782 $10,031 $9,512 $9,170 $8,952 $8,816
(3) Permits & Fees
1 Building Permit Fee $349,936 $0 $0 $0 $0 $0 $0
2 Plan Check Fee $87,484 $0 $0 $0 $0 $0 $0
3 Grading Permit $93,316 $0 $0 $0 $0 $0 $0
SAMPLE
4 Water & Sewer Tap Fees $0 $0 $0 $0 $0 $0 $0
5 State Imposed Fees $0 $0 $0 $0 $0 $0 $0
6 School Impact Fees $466,582 $0 $0 $0 $0 $0 $0
7 Other Misc. Permits & Fees $233,291 $0 $0 $0 $0 $0 $0
Subtotal $1,230,609 $0 $0 $0 $0 $0 $0
(4) Testing & Inspections
1 Soils Testing $20,000 $0 $0 $0 $0 $0 $0
2 Concrete Testing / Reinforcing Inspec $15,000 $0 $0 $0 $0 $0 $0
3 Masonry Testing / Inspection $15,000 $0 $0 $0 $0 $0 $0
4 Steel Testing / Inspections $35,000 $0 $0 $0 $0 $0 $0
5 Fireproofing Testing / Inspections $25,000 $5,349 $6,686 $4,911 $2,381 $923 $326
6 Building Envelope / Window Wall Testing $20,000 $4,279 $5,349 $3,929 $1,904 $739 $261
Subtotal $130,000 $9,629 $12,035 $8,840 $4,285 $1,662 $588
(5) Legal & Accounting
1 Due Diligence / Purchase Agreement $50,000 $0 $0 $0 $0 $0 $0
2 Development / Construction Agreement $30,000 $0 $0 $0 $0 $0 $0
3 Consultant / Broker Agrmt / CC&Rs $30,000 $15,000 $0 $0 $0 $0 $0
4 Real Estate Tax Consultant / Audits / Accounting $20,000 $833 $833 $833 $833 $833 $833
5 Miscellaneous $5,000 $208 $208 $208 $208 $208 $208
Subtotal $135,000 $16,042 $1,042 $1,042 $1,042 $1,042 $1,042
TOTAL COST, PRE-FINANCING $126,359,752 $4,524,929 $2,996,849 $1,972,106 $1,406,668 $949,749 $574,309
Appendix: Page 26
P lo u tu s A d viso rs, In c.
SAMPLE
1875 Century Park East, Suite 700
Century City
CA 90067
Tel: 424.274.3561
Fax: 424.288.5624
Email: info@ploutusadvisors.com
CalBRE License: 02032728