Page 12 - danville

Green Meadows | Danville, IL

15 Year Proforma //
15 Year Proforma
Annual Income Escalator 2.0%
Annual Expense Escalator 3.0%
Annual Real Estate Tax Escalator 4.0%
Annual Asset Management Fee Escalator 3.0%
INCOME YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 YEAR 11 YEAR 12 YEAR 13 YEAR 14 YEAR 15
Rental Income $1,369,296 $1,396,682 $1,424,616 $1,453,108 $1,482,170 $1,511,813 $1,542,050 $1,572,891 $1,604,349 $1,636,435 $1,669,164 $1,702,547 $1,736,598 $1,771,330 $1,806,757
Other Income $146 $148 $151 $154 $157 $161 $164 $167 $170 $174 $177 $181 $185 $188 $192
EFFECTIVE GROSS RENT $1,369,442 $1,396,830 $1,424,767 $1,453,262 $1,482,328 $1,511,974 $1,542,214 $1,573,058 $1,604,519 $1,636,609 $1,669,342 $1,702,728 $1,736,783 $1,771,519 $1,806,949
Rental Vacancy & Collection Loss (68,465) (69,842) (71,238) (72,663) (74,116) (75,599) (77,111) (78,653) (80,226) (81,830) (83,467) (85,136) (86,839) (88,576) (90,347)
EFFECTIVE GROSS INCOME $1,300,977 $1,326,989 $1,353,529 $1,380,599 $1,408,211 $1,436,375 $1,465,103 $1,494,405 $1,524,293 $1,554,779 $1,585,874 $1,617,592 $1,649,944 $1,682,943 $1,716,602
EXPENSES
Total Management $52,039 $53,600 $55,208 $56,864 $58,570 $60,328 $62,137 $64,001 $65,922 $67,899 $69,936 $72,034 $74,195 $76,421 $78,714
Payroll
Payroll and Office Salaries $32,143 $33,107 $34,100 $35,123 $36,177 $37,262 $38,380 $39,531 $40,717 $41,939 $43,197 $44,493 $45,828 $47,202 $48,618
Managers Salary and Unit Rent $43,694 $45,005 $46,355 $47,746 $49,178 $50,653 $52,173 $53,738 $55,350 $57,011 $58,721 $60,483 $62,297 $64,166 $66,091
Taxes and Benefits $30,771 $31,694 $32,644 $33,624 $34,632 $35,671 $36,742 $37,844 $38,979 $40,149 $41,353 $42,594 $43,871 $45,188 $46,543
Total Payroll $106,607 $109,805 $113,099 $116,492 $119,987 $123,587 $127,294 $131,113 $135,047 $139,098 $143,271 $147,569 $151,996 $156,556 $161,253
Marketing
Marketing Expense $4,317 $4,447 $4,580 $4,717 $4,859 $5,005 $5,155 $5,309 $5,469 $5,633 $5,802 $5,976 $6,155 $6,340 $6,530
Total Marketing $4,317 $4,447 $4,580 $4,717 $4,859 $5,005 $5,155 $5,309 $5,469 $5,633 $5,802 $5,976 $6,155 $6,340 $6,530
Taxes
Property Taxes $52,084 $54,167 $56,334 $58,587 $60,931 $63,368 $65,903 $68,539 $71,281 $74,132 $77,097 $80,181 $83,388 $86,724 $90,193
Total Taxes $52,084 $54,167 $56,334 $58,587 $60,931 $63,368 $65,903 $68,539 $71,281 $74,132 $77,097 $80,181 $83,388 $86,724 $90,193
Insurance
Property Insurance $37,185 $38,300 $39,449 $40,633 $41,851 $43,107 $44,400 $45,732 $47,104 $48,517 $49,973 $51,472 $53,016 $54,607 $56,245
Total Insurance $37,185 $38,300 $39,449 $40,633 $41,851 $43,107 $44,400 $45,732 $47,104 $48,517 $49,973 $51,472 $53,016 $54,607 $56,245
Utilities
Electricity $41,374 $42,615 $43,893 $45,210 $46,566 $47,963 $49,402 $50,884 $52,411 $53,983 $55,603 $57,271 $58,989 $60,759 $62,581
Water $53,106 $54,700 $56,341 $58,031 $59,772 $61,565 $63,412 $65,314 $67,274 $69,292 $71,371 $73,512 $75,717 $77,989 $80,328
Gas $41,809 $43,063 $44,355 $45,685 $47,056 $48,468 $49,922 $51,419 $52,962 $54,551 $56,187 $57,873 $59,609 $61,397 $63,239
Total Utilities $165,036 $169,987 $175,086 $180,339 $185,749 $191,321 $197,061 $202,973 $209,062 $215,334 $221,794 $228,448 $235,301 $242,360 $249,631
Maintenance
Contracts $165,237 $170,194 $175,299 $180,558 $185,975 $191,554 $197,301 $203,220 $209,317 $215,596 $222,064 $228,726 $235,588 $242,655 $249,935
Supplies $107,173 $110,388 $113,699 $117,110 $120,624 $124,242 $127,970 $131,809 $135,763 $139,836 $144,031 $148,352 $152,802 $157,386 $162,108
Trash Removal $12,823 $13,208 $13,604 $14,012 $14,432 $14,865 $15,311 $15,771 $16,244 $16,731 $17,233 $17,750 $18,283 $18,831 $19,396
Security $3,568 $3,675 $3,785 $3,899 $4,016 $4,136 $4,260 $4,388 $4,520 $4,655 $4,795 $4,939 $5,087 $5,240 $5,397
Total Maintenance $315,140 $324,594 $334,332 $344,362 $354,693 $365,334 $376,294 $387,582 $399,210 $411,186 $423,522 $436,227 $449,314 $462,794 $476,678
Administrative
Office Expenses $61,067 $62,899 $64,786 $66,730 $68,731 $70,793 $72,917 $75,105 $77,358 $79,679 $82,069 $84,531 $87,067 $89,679 $92,369
Accouting and Bookkeeping $18,016 $18,556 $19,113 $19,686 $20,277 $20,885 $21,511 $22,157 $22,821 $23,506 $24,211 $24,938 $25,686 $26,456 $27,250
Misc. Admin Expenses $619 $638 $657 $676 $697 $718 $739 $761 $784 $808 $832 $857 $883 $909 $936
Total Administrative $97,265 $100,183 $103,188 $106,284 $109,473 $112,757 $116,139 $119,624 $123,212 $126,909 $130,716 $134,638 $138,677 $142,837 $147,122
Services
Tenant Services $35,000 $36,050 $37,132 $38,245 $39,393 $40,575 $41,792 $43,046 $44,337 $45,667 $47,037 $48,448 $49,902 $51,399 $52,941
Total Services $35,000 $36,050 $37,132 $38,245 $39,393 $40,575 $41,792 $43,046 $44,337 $45,667 $47,037 $48,448 $49,902 $51,399 $52,941
Nonprofit Fee $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Replacement Reserves $67,500 $69,525 $71,611 $73,759 $75,972 $78,251 $80,599 $83,016 $85,507 $88,072 $90,714 $93,436 $96,239 $99,126 $102,100
TOTAL EXPENSES $932,172 $960,658 $990,019 $1,020,283 $1,051,478 $1,083,631 $1,116,774 $1,150,936 $1,186,150 $1,222,447 $1,259,862 $1,298,429 $1,338,183 $1,379,163 $1,421,405
NET OPERATING INCOME $368,805 $366,331 $363,509 $360,316 $356,733 $352,744 $348,329 $343,469 $338,143 $332,332 $326,013 $319,163 $311,760 $303,780 $295,197
DEBT SERVICE
First Lien 320,654 320,654 320,654 320,654 320,654 320,654 320,654 320,654 320,654 320,654 320,654 320,654 320,654 320,654 320,654
CASH FLOW BEFORE FEES $48,150 $45,677 $42,855 $39,662 $36,079 $32,090 $27,675 $22,814 $17,489 $11,678 $5,359 ($1,491) ($8,894) ($16,874) ($25,457)
DEBT COVERAGE RATIO 1.15 1.14 1.13 1.12 1.11 1.10 1.09 1.07 1.05 1.04 1.02 1.00 0.97 0.95 0.92
GP Asset Mgmt Fee $10,000 & LP Admin Fee $5,000 15,000 15,450 15,914 16,391 16,883 17,389 17,911 18,448 19,002 19,572 20,159 20,764 21,386 22,028 22,689
Cash Flow 33,150 30,227 26,941 23,271 19,197 14,701 9,764 4,366 (1,512) (7,894) (14,800) (22,254) (30,280) (38,902) (48,146)
Deferred Developer Fee 33,150 30,227 26,941 23,271 19,197 14,701 9,764 4,366 (1,512) (7,894) (14,800) (22,254) (30,280) (38,902) (48,146)
Cumulative Developer Fee 33,150 63,377 90,319 113,589 132,786 147,486 157,250 161,617 160,104 152,210 137,410 115,156 84,876 45,974 (2,173)
NET CASH FLOW 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Deferred Developer Fee 1,045,899
Growth Rate and Occupancy Assumptions
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Income Growth
12 | Services & Capabilities Rental Income Growth 2 2 2 2 2 2 2 2 2 2
Other Income Growth 2 2 2 2 2 2 2 2 2 2
Economic Loss
Vacancy 5% 5% 5% 5% 5% 5% 5% 5% 5% 5%
Expense Growth
Real Estate and Other Taxes 2 2 2 2 2 2 2 2 2 2
Insurance 3 3 3 3 3 3 3 3 3 3
Utilities 3 3 3 3 3 3 3 3 3 3
Repairs & Maintenance 3 3 3 3 3 3 3 3 3 3
Professional Mgmt Fee 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5
Administrative 3 3 3 3 3 3 3 3 3 3
Nonprofit Fee 3 3 3 3 3 3 3 3 3 3
Replacement & Reserves 3 3 3 3 3 3 3 3 3 3