Page 108 - Guardian Broker Questionnaire Summary Complete Package 2 2 22_Neat

STRICTLY CONFIDENTIAL

Guardian Place I Historical Operating Statements Richmond, VA

FINANCIAL FOOTNOTES
(1) Analysis assumes future investors to implement value-add program upon acquisition targeting improvements in Interior Renovations as well as Common Area and Amenity upgrades.
Analysis assumes renovation costs of $11,475 per unit, yielding rent premiums of $300 per unit. The property is currently under a LURA, limiting potential residents to those who
qualify under 60% AMI. This program's extended use period expires in 2023, with a 3 year "sunset" thereafter, limiting the velocity at which future investors can implement upgrades.
Analysis assumes 25.0% annual turnover, in Year 1 - Potential Gross Revenue is projected to equal $1,287,505. The renovation program is estimated to be completed over a 4-year
horizon, with rental rates surpassing $1,175 upon stabilization.

(2) General Market Vacancy is assumed to equal 5.0% of Potential Market Rent throughout the hold period, inclusive of renovation downtime.

(3) Collection Loss is assumed to equal 0.75% of Base Rental Revenue throughout the hold period.

(4) Other Residential Income is comprised of App Fees, Cable Fees, and Late Fees. Additionally, analysis assumes future investors to implement utility billback program as the in-place
LURA expires. Utility Billback Program is estimated to reach full implementation in Year 4.
(5) Pro forma assumes Insurance expense to equal $375/unit, consistent with the current market.

(6) Real Estate Taxes have been assumed for reassessment in Year 2, to 90% of Purchase Price at the current millage rate in the City of Richmond of $1.20 per $100 of assessed value.

(7) Management Fees are estimated to equal 4.50% of Effective Gross Revenue.

(8) Operating Expenses are assumed to increase by 2.75% annually.

(9) Capital Reserves are estimated to equal $300 per unit, or $36,300.

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