Page 30 - Guardian Broker Questionnaire Summary Complete Package 2 2 22_Neat
P. 30
OPERATING ASSUMPTIONS
POTENTIAL MARKET RENT CONCESSIONS/COLLECTION LOSS VACANCY
Pro forma assumes 7% market rent growth in Proforma assumes 1.5% concession/collection loss Pro forma assumes 5% vacancy throughout hold,
Year 1, decreasing to 5% in Year 2, and then to in Year 1, decreasing to 1.25% in Year 2 where it which is consistent with market underwriting
3% in Year 3 where it remains for the duration of will remain for the duration of the hold. standards.
the hold.
OTHER RESIDENTIAL INCOME CONTROLLABLE EXPENSES PERSONNEL EXPENSE
Pro forma other income is grown at 2% annual Controllable expenses are grown at 2% annually Pro forma assumes Year 1 Personnel costs to
growth throughout the hold. over T-12 benchmark. return to a normalized rate at a projected cost
of $1,600 per unit, or $377k annually, which is
consistent with market underwriting standards.
UTILITIES INSURANCE REAL ESTATE TAXES
Utilities are grown at 2% annually over T-12 Insurance is grown at 2% annually over T-12 Year 1 real estate taxes are adjusted to reflect
benchmark. benchmark. reassessment at 85% of the purchase price at a
millage rate of $1.20 per $100.
PROPERTY MANAGEMENT FEE REPLACEMENT RESERVES
Pro forma assumes management fee equal to 3% Pro forma assumes replacement reserves of
EGI throughout the hold. $300/unit/year, which is consistent with market
underwriting standards.
22 | NORTHMARQ
