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FINANCIAL OVERVIEW
JOINT VENTURE REQUEST SOURCES TOTAL $ % $/Unit
Type Joint Venture Equity Partnership Senior Debt 55,480,694 65.0% 287,465
Total JV Equity Required $29,874,220 Equity 29,874,220 35.0% 154,789
JV Equity Required Per Unit 154,789 Joint Venture Equity 26,624,220
Investment Horizon Approximately 10 Years | 120 Months Sponsor Equity 3,250,000
Control Rights Major Decisions Total Sources $85,354,914 100.0% $442,253
JOINT VENTURE EQUITY RETURN METRICS USES
Project Level IRR 16.08% Land Acquisition & Closing 10,843,750 12.7% 56,185
Project Level MOIC 3.00x Construction Hard Cost 57,758,052 67.7% 299,265
Project Level Peak Equity $29,889,281 A&E/CDs/Consultant 3,375,000 4.0% 17,487
Project Level Whole Dollar Profit $59,712,441 OCIP/Builder's Risk 950,000 1.1% 4,922
Project ROI (Year 3) 6.2% Municipal Fees 3,021,934 3.5% 15,658
Project Return on Cost 5.8% Construction Bonds 350,000 0.4% 1,813
Loan to Stabilized Value 51.5% FF&E 600,000 0.7% 3,109
Real Estate Taxes 563,444 0.7% 2,919
¹ Above equity metrics assume: Developer Fee 2,310,322 2.7% 11,971
65% LTC ($55,480,694) Senior Construction Loan priced at 1-Month LIBOR (1.00% at first Soft Cost Contingency 565,364 0.7% 2,929
loan draw) + 4.25% = 5.25%.
12 Months after obtaining certificate of occupancy, the Construction Loan is to be refinance into Financing Closing Costs 750,000 0.9% 3,886
a $69,223,791 bridge loan, floating at 1-Month LIBOR + 3.25% . Senior Debt Origination Fee 554,807 0.7% 2,875
Upon holding for 10 years, the property is to be sold for approximately $126,999,214 ($649,802/
unit | $461,526/unit NPV), representing a 4.50% cap rate. A sales broker fee equal to 1.25% of Investment Banking Fee 821,049 1.0% 4,254
Sales Price is also assumed. Senior Interest Reserve 2,891,192 3.4% 14,980
Only JV Equity returns are contemplated, in line with market terms. Waterfall structure is open Total Uses $85,354,914 100.0% $442,253
to discussion and shall be mutually agreed upon.
10 | 21515 VANOWEN
