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HomeMy WebLinkAboutLINC Project Pro FormaPerforma for 913 South 4th Street 0)Instructions OK Small Scale Rental Policy Working Group Underwriting Proforma Performa for 913 South 4th Street 1)Summary OK Small Scale Rental Policy Working Group Underwriting Proforma PROJECT SUMMARY Development:LINC Permanent Supportive Housing Owner:LINC Inc Location:913 South 4th Street County:NHC Total Units:2 Units by Structure Type Single Family 4 Units by Bedroom Size Units by Income Target Duplex 0 Efficiency 2 30%0 Triplex 0 1 Bedroom 1 40%0 Fourplex 0 2 Bedroom 1 50%0 Townhome 0 3 Bedroom 1 60%6 Apartment 0 4 Bedroom 1 80%0 Condo 0 5+ Bedroom 0 Market 0 ADU 2 Total 6 Total 6 Total 6 Operating Budget Annual Per Unit Long-Term Trending Assumptions Gross Rent Potential $46,800)$1,000)Combined Vacancy Rate:12.0% Other Income $0)$0)Rent Inflation:2.0% Vacancy $12,000)Expense Inflation: Adjusted Gross Income Administration 3.5% Operating Expenses $300)$50)Maintenance 3.5% Net Operating Income $14,884)$2,481)Operating 3.5% Debt Service $13,332)Escrows & Reserves 3.5% Debt & Cash Flow Over Time Year 1 Operating Margin 56.6%Year 1 Net Cash Flow $14,884)$2,481) Year 5 Operating Margin 47.7%Year 5 Net Cash Flow $14,399)$2,400) Year 10 Operating Margin 37.3%Year 10 Net Cash Flow $13,374)$2,229) Year 15 Operating Maring 27.6%Year 15 Net Cash Flow $11,770)$1,962) Development Costs Total Per Unit % of TDC Predevelopment & Feasibility $0)$0)0% Building & Property Acquisition $0)$0)0% Construction Costs $577,500)$96,250)98% Professional Services $0)$0)0% Carrying & Construction Financing Costs $0)$0)0% Permanent Financing & Syndication $0)$0)0% Reserves $10,000)$1,667)2% Construction & Bridge Loan Interest $0)$0)0% Performa for 913 South 4th Street 1)Summary OK Small Scale Rental Policy Working Group Underwriting Proforma Developer Fee $0)$0)0% Total Development Costs $587,500)$97,917)100%TRUE Sources Total Per Unit % of TDC City Of Wilm $577,500)$96,250)98% LINC General Operation $20,000)$3,333)3% $0)$0)0% $0)$0)0% $0)$0)0% $0)$0)0% $0)$0)0% $0)$0)0% Total Sources $597,500)$99,583)102% Surplus/(Gap)$10,000)$1,667)2% Performa for 913 South 4th Street 2)Revenue OK Small Scale Rental Policy Working Group Underwriting Proforma REVENUE PROJECTIONS Address Unit Structure Type Bedrooms Baths Sq Ft Income Target Utility Allowance Proposed Contract Rent Gross Rent Max Rent Allowed Rent Acceptable? 1 913 South 4th street 1 Single Family 1 1 500 $0)$650)$650)Over Limit 2 913 South 4th street 2 Single Family 1 1 500 $0)$650)$650)Over Limit 3 913 South 4th street 3 Single Family 1 1 500 $0)$650)$650)Over Limit 4 913 South 4th street 4 Single Family 1 1 500 $0)$650)$650)Over Limit 5 913 South 4th street 5 ADU 1 1 500 $0)$650)$650)Over Limit 6 913 South 4th street 6 ADU 1 1 500 $0)$650)$650)Over Limit 7 $0)Yes 8 $0)Yes 9 $0)Yes 10 $0)Yes 11 $0)Yes 12 $0)Yes 13 $0)Yes 14 $0)Yes 15 $0)Yes 16 $0)Yes 17 $0)Yes 18 $0)Yes 19 $0)Yes 20 $0)Yes 21 Total Units 6 Total Sq Footage 3,000 Monthly Rent Potential $3,900) 22 Annual Rent Potential $46,800) 23 24 Other Income Monthly Annually $650) 25 Miscellaneous & Interest $0) 26 Laundry $0) 27 Carports $0) 28 Tenant Charges (late fees, nonsufficient funds, etc)$0) 29 Other $0) 30 Totals $0)$0) Performa for 913 South 4th Street 3)Operating Budget OK Small Scale Rental Policy Working Group Underwriting Proforma ANNUAL OPERATING BUDGET 1 REVENUE Annual Per Unit 2 Gross Rent Potential $46,800)$7,800) 3 Other Revenue $0)$0)Unit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 4 Subtotal $46,800)$7,800)Address 913 South 4th street 913 South 4th street 913 South 4th street 913 South 4th street 913 South 4th street 913 South 4th street 5 Combined Vacancy Factor 12.0%$5,616)$936)Unit #1 2 3 4 5 6 6 Adjusted Income $41,184)$6,864)100.0%Structure Type Single Family Single Family Single Family Single Family ADU ADU 7 Bedrooms 1 1 1 1 1 1 8 TOTAL OPERATING EXPENSES Annual Total Per Unit Total % of Revenue Override Itemized Total 9 10 Administrative Costs Annual Per Unit 11 Advertising $0)$0)$0) 12 Management $0)$0)$0) 13 Legal/Partnership $0)$0)$0) 14 Accounting/Audit $2,000)$333)$0) 15 Compliance Monitoring $0)$0)$0) 16 Other $0)$0)$0) 17 Subtotal $2,000)$333)4.9% 18 19 Maintenance Annual Per Unit 20 Preventative Maintenance $1,000)$167)$0) 21 Unit Turns $500)$83)$0) 22 Exterminating $600)$100)$0) 23 Grounds $600)$100)$0) 24 Other $0)$0)$0) 25 Subtotal $2,700)$450)6.6% 26 27 Operating Annual Per Unit 28 Elevator $0)$0)$0) 29 Project Paid Fuel $0)$0)$0) 30 Common Electricity $7,200)$1,200)$0) 31 Water/Sewer $2,400)$400)$0) 32 Gas $0)$0)$0) 33 Trash Removal $0)$0)$0) 34 Payroll $0)$0)$0) 35 Payroll Taxes & Fringes $0)$0)$0) 36 Other $0)$0)$0) 37 Subtotal $9,600)$1,600)23.3% 38 39 Escrows & Reserves Annual Per Unit 40 Insurance $2,000)$333)$0) 41 Real Estate Taxes $0)$0)$0) 42 Other Taxes $0)$0)$0) 43 Replacement Reserve $10,000)$1,667)$0) 44 Other:$0)$0)$0) 45 Subtotal $12,000)$2,000)29.1% 46 47 Total Operating Expenses $26,300)$4,383)63.9% 48 49 Net Operating Income $14,884)$2,481)36.1% 50 51 52 MORTGAGE 53 Debt Coverage Ratio 0.00 54 Max Mortgage Pmt $0)$0)0.0% 55 Amortization (years)20 56 Interest Rate 0.000% 57 Projected Mortgage $0)$0) 58 ACTUAL Mortgage $0)$0)0.0% 59 Override Mortgage Payment $0) 60 Annual Per Unit 61 Cash Flow $14,884)$2,481) Operating Margin 57% Performa for 913 South 4th Street 4)Operating Cash Flow OK Small Scale Rental Policy Working Group Underwriting Proforma Operating Cash Flow Projection 1 Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 3 REVENUE Inflator 4 Gross Income Potential 2.0%$46,800)$47,736)$48,691)$49,665)$50,658)$51,671)$52,704)$53,758)$54,834)$55,930)$57,049)$58,190)$59,354)$60,541)$61,752)$62,987)$64,246)$65,531)$66,842)$68,179) 5 Vacancy Factor 12%$5,616)$5,728)$5,843)$5,960)$6,079)$6,201)$6,325)$6,451)$6,580)$6,712)$6,846)$6,983)$7,122)$7,265)$7,410)$7,558)$7,710)$7,864)$8,021)$8,181) 6 Net Income $41,184)$42,008)$42,848)$43,705)$44,579)$45,470)$46,380)$47,307)$48,254)$49,219)$50,203)$51,207)$52,231)$53,276)$54,341)$55,428)$56,537)$57,668)$58,821)$59,997) 7 Per Unit $6,864)$7,001)$7,141)$7,284)$7,430)$7,578)$7,730)$7,885)$8,042)$8,203)$8,367)$8,535)$8,705)$8,879)$9,057)$9,238)$9,423)$9,611)$9,803)$10,000) 8 9 OPERATING EXPENSES Inflator 10 Administration 3.5%$2,000)$2,070)$2,142)$2,217)$2,295)$2,375)$2,459)$2,545)$2,634)$2,726)$2,821)$2,920)$3,022)$3,128)$3,237)$3,351)$3,468)$3,589)$3,715)$3,845) 11 Maintenance 3.5%$2,700)$2,795)$2,892)$2,994)$3,098)$3,207)$3,319)$3,435)$3,555)$3,680)$3,809)$3,942)$4,080)$4,223)$4,370)$4,523)$4,682)$4,846)$5,015)$5,191) 12 Operating 3.5%$9,600)$9,936)$10,284)$10,644)$11,016)$11,402)$11,801)$12,214)$12,641)$13,084)$13,542)$14,016)$14,506)$15,014)$15,539)$16,083)$16,646)$17,229)$17,832)$18,456) 13 Escrows & Reserves 3.5%$12,000)$12,420)$12,855)$13,305)$13,770)$14,252)$14,751)$15,267)$15,802)$16,355)$16,927)$17,520)$18,133)$18,767)$19,424)$20,104)$20,808)$21,536)$22,290)$23,070) 14 Total Operating Expenses $26,300)$27,221)$28,173)$29,159)$30,180)$31,236)$32,329)$33,461)$34,632)$35,844)$37,099)$38,397)$39,741)$41,132)$42,572)$44,062)$45,604)$47,200)$48,852)$50,562) 15 Per Unit $4,383.33)$4,536.75)$4,695.54)$4,859.88)$5,029.98)$5,206.02)$5,388.24)$5,576.82)$5,772.01)$5,974.03)$6,183.12)$6,399.53)$6,623.52)$6,855.34)$7,095.28)$7,343.61)$7,600.64)$7,866.66)$8,141.99)$8,426.96) 16 17 Net Operating Income $14,884)$14,787)$14,675)$14,546)$14,399)$14,234)$14,050)$13,847)$13,622)$13,374)$13,104)$12,810)$12,490)$12,144)$11,770)$11,367)$10,933)$10,468)$9,969)$9,436) 18 Per Unit $2,480.67)$2,464.53)$2,445.77)$2,424.25)$2,399.84)$2,372.39)$2,341.74)$2,307.75)$2,270.26)$2,229.08)$2,184.05)$2,134.99)$2,081.69)$2,023.98)$1,961.62)$1,894.43)$1,822.16)$1,744.60)$1,661.49)$1,572.59) 19 20 Debt Service $0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0) 21 Debt Coverage Ratio n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 22 Operating Margin 56.6%54.3%52.1%49.9%47.7%45.6%43.5%41.4%39.3%37.3%35.3%33.4%31.4%29.5%27.6%25.8%24.0%22.2%20.4%18.7% 23 CASH FLOW $14,884)$14,787)$14,675)$14,546)$14,399)$14,234)$14,050)$13,847)$13,622)$13,374)$13,104)$12,810)$12,490)$12,144)$11,770)$11,367)$10,933)$10,468)$9,969)$9,436) 24 Per Unit $2,481)$2,465)$2,446)$2,424)$2,400)$2,372)$2,342)$2,308)$2,270)$2,229)$2,184)$2,135)$2,082)$2,024)$1,962)$1,894)$1,822)$1,745)$1,661)$1,573) 25 26 27 Operating Deficit Reserve Analysis 28 Starting Balance $0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0) 29 Annual Operating Deficit $0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0) 30 Interest Earned on Reserve 0.00%$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0) 31 Ending Balance $0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0) Performa for 913 South 4th Street 5)Development Budget OK Small Scale Rental Policy Working Group Underwriting Proforma DEVELOPMENT BUDGET Unit (1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12)(13)(14)(15)(16)(17)(18)(19)(20) Addresss 913 South 4th street 913 South 4th street 913 South 4th street 913 South 4th street 913 South 4th street 913 South 4th street Unit #(1)(2)(3)(4)(5)(6) Structure Type Single Family Single Family Single Family Single Family ADU ADU Bedrooms (1)(1)(1)(1)(1)(1) 1 Predevelopment & Feasibility Project Totals Per Unit Override Itemized Total 2 Appraiser (0)(0)$0) 3 Architect & Engineer (0)(0)$0) 4 Environmental Reviews & Reports (Phase I, Phase II, etc)(0)(0)$0) 5 Market Analysis (0)(0)$0) 6 Preliminary Title Search (0)(0)$0) 7 Survey (0)(0)$0) 8 Consultant (0)(0)$0) 9 Application Fees (0)(0)$0) 10 Other:(0)(0)$0) 11 Total Predevelopment:$0)$0) 12 Building & Property Acquisition 13 Land (0)(0)$0) 14 Closing Costs @ Acquisition (0)(0)$0) 15 Misc (0)(0)$0) 16 Total Acquisition:$0)$0) 17 Construction Costs 18 Base Construction Costs (192.50 per Sq Foot)(577,500)(96,250)$0) Permits, Impact/Tap Fees (0)(0)$0) Landscaping (0)(0)$0) 20 Appliance Package (0)(0)$0) Other: (0)(0)$0) 21 Contractor General Conditions (calc on Base)0.00%/ hard cost (0)(0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0) 22 Contractor Overhead 0.00%/ hard cost (0)(0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0) 23 Contractor Profit 0.00%/ hard cost (0)(0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0) 24 CONSTRUCTION CONTINGENCY 10.00%/ hard cost (0)(0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0) 25 ($192.50) per sq. ft.Total Construction:(577,500)$96,250) 26 Professional Services 27 Legal (0)(0)$0) 28 Title & Recording (0)(0)$0) 29 Cost Certification (0)(0)$0) 30 Marketing /Advertising (0)(0)$0) 31 Total Professional Fees:(0)$0) 32 Carrying & Construction Financing Costs 33 Inspection & Draw Fees (0)(0)$0) 34 Points & Bank Fees (0)(0)$0) 35 Builder's Risk Insurance (0)(0)$0) 36 Property Insurance (0)(0)$0) 37 Real Estate Taxes (0)(0)$0) 38 Interim/Capitalized Operating Costs (0)(0)$0) 39 Total Carrying Costs:(0)$0) 40 Permanent Financing & Syndication 41 Points & Bank Fees (0)(0)$0) 42 Title & Recording (0)(0)$0) 43 Partnership & Organization Expense (0)(0)$0) 44 Legal (including tax opinion)(0)(0)$0) 45 Other (0)(0)$0) 46 Total Permanent Financing & Syndication:(0)$0) 47 Reserves 48 Rent Up Reserves (0)(0)$0) 49 Operating Reserves (0)(0)$0) 50 Deficit Reserve (as calculated by 20 Year Projection)(0)(0)$0) 51 Replacement Reserves (10,000)(1,667)$0) 52 Other (0)(0)$0) 53 Total Reserves:(10,000)$1,667) 54 55 Construction & Bridge Loan Interest (0)(0)$0)$0)$0)$0)$0) 56 57 Subtotal Hard & Soft Costs $587,500) 58 Developer Fee 0.00%/Hard & Soft Costs (0)(0) 59 60 TOTAL DEVELOPMENT COSTS (TDC):$587,500)$97,917)$0)$0)$0)$0)$0)$0) Performa for 913 South 4th Street 6)Construction Cash Flow OK Small Scale Rental Policy Working Group Underwriting Proforma PROJECT DEVELOPMENT CASH FLOW Total Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Month Trial 1 USES OF FUNDS Budget 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Total Balance Variance 2 Predevelopment & Feasibility $0)$0)Balanced $0) 3 Acquisition $0)$0)Balanced $0) 4 Construction $577,500)$0)Under $577,500) 5 Professional Services $0)$0)Balanced $0) 6 Carrying & Construction Financing $0)$0)Balanced $0) 7 Permanent Financing & Syndication $0)$0)Balanced $0) 8 Reserves $10,000)$0)Under $10,000) 9 Developer Fee $0)$0)Balanced $0) 10 SUB-TOTAL USES $587,500)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0) 11 12 SOURCES OF FUNDS 13 Prior Month Ending Cash $0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0) 14 City Of Wilm $577,500)$0)Under $577,500) 15 LINC General Operation $20,000)$0)Under $20,000) 16 $0)$0)Balanced $0) 17 $0)$0)Balanced $0) 18 $0)$0)Balanced $0) 19 $0)$0)Balanced $0) 20 $0)$0)Balanced $0) 21 $0)$0)Balanced $0) 22 SUB-TOTAL SOURCES $597,500)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0) 23 24 Construction Loan 25 Construction Loan Calculation $0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0) 26 Construction Loan Draw $0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0) 27 TOTAL SOURCES $0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0) 28 29 Paydown Calculation $0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0) 30 Construction Loan Paydown $0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0) 31 TOTAL USES $0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0) 32 Ending Cash $0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0) 33 CONSTRUCTION LOAN INT & BALANCES 34 Draw $0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0) 35 (Loan Payoff)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)Total 36 Construction Loan Interest 0.000%$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0) 37 Loan Balance $0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)$0)