& EXPENSES
CRESTFINANCIALS T12 RENT ROLL: AS OF MAY 1, 2024 INCOME AND EXPENSES: MAY 2023 - APRIL 2024 T6 TRAILING 6 MONTH INCOME ASSUMED CONTROLLABLE EXPENSES GROSS POTENTIAL RENT % of GPR Per Unit % of GPR Per Unit All Units at Market Rent $1,071,504 RR 10,403 $1,071,504 RR 10,403 Gain (Loss) to Lease ($39,792) 3.71% (386) ($39,792) 3.71% (386) GROSS SCHEDULED RENT $1,031,712 RR 10,017 $1,031,712 RR 10,017 Other Income Laundry Income $10,698 T12 1.04% 104 $10,698 T12 1.04% 104 Late/NSF Fees $6,641 T12 0.64% 64 $6,641 T12 0.64% 64 Total Other Income $17,339 1.68% 168 $17,339 1.68% 168 GROSS POTENTIAL INCOME $1,049,051 10,185 $1,049,051 10,185 Physical Vacancy ($104,930) T12 Economic 10.17% (1,019) ($87,629) T6 Economic 8.49% (851) Bad Debt $0 0.00% 0 $0 0.00% 0 EFFECTIVE GROSS INCOME $944,121 86.12% 9,166 $961,422 87.79% 9,334 NON-CONTROLLABLE Real Estate Taxes % of EGI Per Unit % of EGI 2023 Taxes Paid $109,292 Auditor 11.58% 1,061 $109,292 Auditor 11.37% 1,061 Total Real Estate Taxes $109,292 11.58% 1,061 $109,292 11.37% 1,061 Insurance $34,189 T12 3.62% 332 $34,189 T12 3.56% 332 Utilities Gas & Electric $32,136 T12 3.40% 312 $32,136 T12 3.34% 312 Water & Sewage $69,946 T12 7.41% 679 $69,946 T12 7.28% 679 Trash Removal $8,382 T12 0.89% 81 $8,382 T12 0.87% 81 Sewer Lift Station Service $9,589 T12 1.02% 93 $9,589 T12 1.00% 93 Utilities $120,052 12.72% 1,166 $120,052 12.49% 1,166 Total Non-Controllable $263,533 27.91% 2,559 $263,533 27.41% 2,559 CONTROLLABLE Contract Services Landscaping/Grounds/Snow $22,992 T12 2.44% 223 $23,175 2.41% 225 Pest Control $15,082 T12 1.60% 146 $7,725 0.80% 75 Total Contract Services $38,074 4.03% 370 $30,900 3.21% 300 Repairs & Maintenance $50,100 T12 5.31% 486 $61,800 6.43% 600 Marketing & Promotion $0 0.00% 0 $7,725 0.80% 75 On-Site Payroll $68,946 T12 7.30% 669 $92,700 9.64% 900 Payroll Taxes & Benefits $0 0.00% 0 $10,300 1.07% 100 General & Administrative $5,679 T12 0.60% 55 $7,725 0.80% 75 Management Fee $86,320 T12 9.14% 838 $48,071 5.00% 519 Replacement & Reserves $30,367 T12 3.22% 295 $30,900 3.21% 300 Total Controllable $279,485 29.60% 2,713 $290,121 30.18% 2,869 TOTAL EXPENSES $543,018 57.52% 5,272 $553,654 57.59% 5,375 NET OPERATING INCOME $355,056 37.61% 3,447 $407,768 42.41% 3,959 EXPENSE INCOME
COLLEGE
INCOME
UNDERWRITING NOTES # NOTE 1 Replacement & Reserves: added based on market norm of $255 per unit per year T3 YEAR 1 % of GPR Per Unit % of GPR Per Unit $1,071,504 RR 10,403 $1,140,924 11,077 ($39,792) 3.71% (386) ($22,818) 2.00% (222) $1,031,712 RR 10,017 $1,118,106 10,855 $10,698 T12 1.04% 104 $11,019 0.99% 107 $6,641 T12 0.64% 64 $6,840 0.61% 66 $17,339 1.68% 168 $17,859 1.60% 173 $1,049,051 10,185 $1,135,965 11,029 ($109,768) T3 Economic 10.64% (1,066) ($55,905) 5.00% (543) $0 0.00% 0 ($11,181) 1.00% (109) $939,283 85.65% 9,119 $1,068,878 92.00% 10,377 % of EGI Per Unit % of EGI Per Unit $109,292 Auditor 11.64% 1,061 $109,292 11.64% 1,061 $109,292 11.64% 1,061 $109,292 11.64% 1,061 $34,189 T12 3.64% 332 $41,200 4.39% 400 $32,136 T12 3.42% 312 $32,778 3.49% 318 $69,946 T12 7.45% 679 $71,344 7.60% 693 $8,382 T12 0.89% 81 $8,549 0.91% 83 $9,589 T12 1.02% 93 $9,781 1.04% 95 $120,052 12.78% 1,166 $122,453 13.04% 1,189 $263,533 28.06% 2,559 $272,945 29.06% 2,650 $23,175 2.47% 225 $23,175 2.17% 225 $7,725 0.82% 75 $7,725 0.72% 75 $30,900 3.29% 300 $30,900 3.29% 300 $61,800 6.58% 600 $61,800 5.78% 600 $7,725 0.82% 75 $7,725 0.72% 75 $92,700 9.87% 900 $92,700 8.67% 900 $10,300 1.10% 100 $10,300 0.96% 100 $7,725 0.82% 75 $7,725 0.72% 75 $46,964 5.00% 519 $53,444 5.00% 519 $30,900 3.29% 300 $30,900 2.89% 300 $289,014 30.77% 2,869 $295,494 28.04% 2,869 $552,547 58.83% 5,365 $568,439 60.52% 5,519 $386,736 41.17% 3,755 $500,440 53.28% 4,859
COLLEGE CRESTFINANCIALS
T12 T6 T3 YR 1 YR 2 YR 3 YR 4 YR 5 YE MAY-2025 YE MAY-2026 YE MAY-2027 YE APR-2028 YE APR-2029 GROSS POTENTIAL RENT All Units at Market Rent $1,071,504 $1,071,504 $1,071,504 $1,140,924 $1,175,152 $1,210,406 $1,246,718 $1,284,120 Gain (Loss) to Lease ($39,792) ($39,792) ($39,792) ($22,818) ($23,503) ($24,208) ($24,934) ($25,682) GROSS SCHEDULED RENT $1,031,712 $1,031,712 $1,031,712 $1,118,106 $1,151,649 $1,186,198 $1,221,784 $1,258,438 Total Other Income $17,339 $17,339 $17,339 $17,859 $18,216 $18,581 $18,952 $19,331 GROSS POTENTIAL INCOME $1,049,051 $1,049,051 $1,049,051 $1,135,965 $1,169,865 $1,204,779 $1,240,736 $1,277,769 Physical Vacancy ($104,930) ($87,629) ($109,768) ($55,905) ($57,582) ($59,310) ($61,089) ($62,922) Bad Debt $0 $0 $0 ($11,181) ($11,516) ($11,862) ($12,218) ($12,584) EFFECTIVE GROSS INCOME $944,121 $961,422 $939,283 $1,068,878 $1,100,766 $1,133,607 $1,167,429 $1,202,263 Real Estate Taxes $109,292 $109,292 $109,292 $109,292 $111,478 $113,707 $115,981 $118,301 Insurance $34,189 $34,189 $34,189 $41,200 $42,024 $42,864 $43,722 $44,596 Utilities $120,052 $120,052 $120,052 $122,453 $124,902 $127,400 $129,948 $132,547 Contract Services $38,074 $30,900 $30,900 $30,900 $31,518 $32,148 $32,791 $33,447 Repairs & Maintenance $50,100 $61,800 $61,800 $61,800 $63,036 $64,297 $65,583 $66,894 Marketing & Promotion $0 $7,725 $7,725 $7,725 $7,880 $8,037 $8,198 $8,362 On-Site Payroll $68,946 $92,700 $92,700 $92,700 $94,554 $96,445 $98,374 $100,341 Payroll Taxes & Benefits $0 $10,300 $10,300 $10,300 $10,506 $10,716 $10,930 $11,149 General & Administrative $5,679 $7,725 $7,725 $7,725 $7,880 $8,037 $8,198 $8,362 Management Fee $86,320 $48,071 $46,964 $53,444 $55,038 $56,680 $58,371 $60,113 Replacement & Reserves $30,367 $30,900 $30,900 $30,900 $31,518 $32,148 $32,791 $33,447 TOTAL EXPENSES $543,018 $553,654 $552,547 $568,439 $580,333 $592,481 $604,888 $617,560 NET OPERATING INCOME $355,056 $407,768 $386,736 $500,440 $520,433 $541,126 $562,541 $584,703 DEBT SERVICE - Proposed New Principal Payments $61,978 $61,978 $61,978 $61,978 $65,800 $69,859 $74,168 $78,742 Interest Payments $301,134 $301,134 $301,134 $301,134 $297,311 $293,253 $288,944 $284,370 TOTAL DS - Proposed New Loan $363,112 $363,112 $363,112 $363,112 $363,112 $363,112 $363,112 $363,112 CONSOLIDATED DEBT SERVICE $363,112 $363,112 $363,112 $363,112 $363,112 $363,112 $363,112 $363,112 NET CASH FLOW AFTER DEBT ($8,056) $44,656 $23,624 $137,328 $157,321 $178,014 $199,429 $221,591 DEBT SERVICE COVERAGE RATIO 0.98 1.12 1.07 1.38 1.43 1.49 1.55 1.61 RETURN ANALYSIS T12 T6 T3 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 CAP Rate (Purchase Price) 4.92% 5.66% 5.36% 6.94% 7.22% 7.51% 7.80% 8.11% 'All-In' CAP Rate (Total Cost) 4.92% 5.66% 5.36% 6.94% 7.22% 7.51% 7.80% 8.11% Cash-on-Cash Return -0.37% 2.06% 1.09% 6.35% 7.27% 8.23% 9.22% 10.24% IRR n/a n/a n/a 3.33% 6.49% 8.33% 9.51% 10.32% INCOME EXPENSE
CASH FLOW
CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 Income Gross Potential Rent 6.48% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% (Loss) / Gain to Lease* 3.71% 3.71% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Other Income 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Expenses Expenses 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Management Fee** 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% CASH FLOW PROJECTION GROWTH RATE ASSUMPTIONS YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 Physical Vacancy 8.49% 10.64% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Non-Revenue Units 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Bad Debt 0.00% 0.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Concessions Allowance 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total Economic Loss 8.49% 10.64% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% Tax Breakdown Property Address Parcel ID Year Built Acres Market Value Assessed Value Tax Rate Taxes Payable Land Use Code 1451 Hillcrest Rd (College Crest) 234-0004-0112-00 1957 0.25 $446,730 $156,360 82.074213 $12,833.12 401 - Apartment, 4-19 Units 5466 Hamilton Ave 234-0004-0113-00 1957 0.71 $451,740 $158,110 82.074213 $12,976.76 401 - Apartment, 4-19 Units 5458 Hamilton Ave 234-0004-0114-00 1957 0.00 $427,140 $149,500 82.074213 $12,270.10 401 - Apartment, 4-19 Units 1441 Hillcrest 234-0004-0039-00 1957 0.51 $387,090 $135,490 82.074213 $11,120.24 402 - Apartment, 20-39 Units 5409 Lanius Ln 234-0004-0041-00 1974 2.53 $1,119,740 $391,910 82.074213 $32,165.70 402 - Apartment, 20-39 Units 5409 Lanius Ln 234-0004-0127-00 1973 2.09 $941,290 $329,460 82.074213 $27,040.18 402 - Apartment, 20-39 Units 5409 Lanius Ln 234-0004-0128-00 0.03 $30,830 $10,790 82.074213 $885.58 402 - Apartment, 20-39 Units Total 6.12 $3,804,560 $1,331,620 $109,291.68