Page 112 - Guardian Broker Questionnaire Summary Complete Package 2 2 22_Neat

STRICTLY CONFIDENTIAL

Guardian Place I Sensitivity Analysis Richmond, VA

PURCHASE PRICE SENSITIVITY CAP RATE SENSITIVITY

Purchase Price Going-In Cap Rate¹

$ 10,400,000 $ 11,700,000 $ 13,040,664 $ 14,300,000 $ 15,600,000 3.35% 3.60% 3.85% 4.10% 4.35%
Per Unit $ 85,950 $ 96,694 $ 107,774 $ 118,182 $ 128,926 Per Unit $ 123,845 $ 115,252 $ 107,774 $ 101,208 $ 95,395
Per sf $ 165 $ 186 $ 207 $ 227 $ 247 Per sf $ 238 $ 221 $ 207 $ 194 $ 183
Going-In Cap Rate¹ 4.83% 4.29% 3.85% 3.51% 3.22% Purchase Price $ 14,985,191 $ 13,945,469 $ 13,040,664 $ 12,246,117 $ 11,542,830
Returns Year 1 Cash on Cash 10.60% 10.82% 3.40% 2.64% 1.95% Returns / Price Year 1 Cash on Cash 2.26% 2.84% 3.40% 10.17% 11.02%
4.46%
4.34%
5.42%
3.94%
Post-Renov. C-o-C²
8.81%
9.02%
Post-Renov. C-o-C²
8.14%
6.32%
5.98%
4.84%
7.25%
7.25%
5.36%
12.51%
7.96%
9.28%
Unleveraged IRR
8.32%
7.29%
9.28%
Unleveraged IRR
6.72%
Leveraged IRR 20.68% 17.97% 15.32% 12.94% 10.53% Leveraged IRR 11.66% 13.60% 15.32% 16.87% 18.28%
Equity Multiple 4.84x 4.10x 3.45x 2.93x 2.46x Equity Multiple 2.68x 3.07x 3.45x 3.82x 4.18x
¹ Based on Pro Forma NOI ² In Year 4 (the first full year following completion of all renovations) ¹ Based on Pro Forma NOI ² In Year 4 (the first full year following completion of all renovations)
STARTING MARKET RENT (PER UNIT) UNLEVERAGED INTERNAL RATE OF RETURN AND EQUITY MULTIPLE
Starting Market Rent ($/SF) Exit Cap Rate
$ 1.38 $ 1.45 $ 1.53 $ 1.61 $ 1.68 4.25% 4.50% 4.75% 5.00% 5.25%
% Incr./Decr. (10.00%) (5.00%) - 5.00% 10.00% 9.28%
10 years
2.14x
Studio $ 614 $ 648 $ 682 $ 716 $ 751 3 years 9.01% 1.28x 7.07% 1.22x 5.28% 1.16x 3.61% 1.11x 2.05% 1.06x
$ 849
Floor Plans 2 Bedroom $ 898 - $ 948 - $ 997 - $ 1,047 - $ 1,097 - Hold Period 5 years 12.05% 1.70x 10.90% 1.62x 9.83% 1.54x 8.82% 1.48x 7.87% 1.42x
1 Bedroom
$ 806
$ 934
$ 764
$ 891
3 Bedroom
-
-
-
-
4+ Bedroom
-
7 years 11.17% 10.39% 9.66% 8.98% 8.34%
1.95x 1.86x 1.78x 1.71x 1.65x
10.24% 9.74% 9.28% 8.84% 8.43%
10 years
2.32x 2.22x 2.14x 2.06x 1.99x
RETURN SUMMARY LEVERAGED INTERNAL RATE OF RETURN AND EQUITY MULTIPLE
Starting Market Rent ($/SF) Exit Cap Rate
$ 1.38 $ 1.45 $ 1.53 $ 1.61 $ 1.68 4.25% 4.50% 4.75% 5.00% 5.25%
Returns Unleveraged IRR 11.63% 13.55% 15.32% 10.17% 11.02% 10 years 16.64% 12.01% 15.32% 3.45x 3.07% (1.31%)
7.36%
8.34%
9.28%
18.57%
16.99%
Leveraged IRR
4.22x
Equity Multiple
2.69x
3.07x
7.50%
3.45x
3.84x
3 years
Yields Cash on Cash Yield¹ 4.17% 4.52% 4.88% 5.23% 5.58% Hold Period 5 years 22.19% 1.55x 19.97% 1.38x 17.82% 1.23x 15.74% 1.09x 13.71% 0.96x
Unleveraged Yield¹
1.96x
1.80x
8.20%
2.34x
2.14x
2.55x
6.29%
7.25%
9.16%
5.34%
7 years 19.50% 3.12x 18.13% 2.88x 16.81% 2.67x 15.54% 2.48x 14.30% 2.31x
$ 21,164,724
$ 22,639,755
Exit Price
$ 19,689,693
$ 25,589,817
$ 24,114,786
Pricing per unit $ 162,725 $ 174,915 $ 187,105 $ 199,296 $ 211,486 10 years 16.89% 3.95x 16.09% 3.69x 15.32% 3.45x 14.59% 3.24x 13.88% 3.05x
per sf
$ 406
$ 359
$ 336
$ 382
$ 312
¹ Post renovation (Year 4)
Guardian Place I UW v3 Page 7 of 7 1/28/2022 4:16 PM