Excel file demonstrating your answers, formulas, and all work.You will upload and submit your Excel file on the next page.

Tools/items which you are required to use include:

1. Market Value Today
2. Gain/Loss Since Development (excl. cash flow)
3. Return on Assets
4. Return on Equity
5. Loan Constant
6. Development Cost Per Unit
7. Most Profitable Unit Style
8. Construction Loan Interest

In addition, select no less than5 additional toolswhich you believe relevant to understanding the Sofia Lofts development.The additional tools selected should bequalitativein nature, as opposed to the quantitative tools used above.

Development Timeline Gross Building Area (GBA) Bldg. Area (sqft.) Site Purchased 2/1/16 Residential 13,658 Planning Started 2/1/16 Parking 3,000 Construction Financing Arranged 9/1/16 Total GBA 16,658 Construction Started 10/1/16 Total Auto Parking Spaces 16 Sales/Leasing Started 5/1/16 Total Bike Storage Spaces 6 Construction Completed 8/31/16 Land Use Plan Acres % of Site Buildings 0.17 41% Landscaping/Open Space 0.24 59% Total 0.41 100% Current Residential Information Unit Type Number of Vacant Average Units Square Feet Units Rents Studio (w/o parking) 3 615 1 1,425 Studio 650 1,630 Two Bedroom 6 930 Three bedroom (historic house) 1 1,683 3,200 Total 17 NO O 2,200 8,455 Development Cost Information Financing & Value Information Site Acquisition Cost $ 825,000 Construction Loan Interest Rate 3.50% Hard Costs Permanent Loan Interest Rate 5.50% Residential Units (gross) 1,950,000 Loan to Value 70% Existing House Rehab 172,500 Amortization (years) 30 Parking Area 237,000 Loan Term (years) 10 Stairwell 52,000 Lender Required DCR (min.) 1.20 Landscape/Hardscape 76,500 Interest-Only Period N/A Contractor's Fee 80,000 Market Cap Rate 8.25% Administrative Overhead & Expenses 73,250 Your Required ROE 10.0% Contingency 132,063 Subtotal - Hard Costs 2,773,313 Soft Costs Architecture 48,500Landscape Architecture 23,650 Structural Engineering 32,000 Civil Engineering 24,675 Planning & Processing Consultants 6,000 MEP Engineering 15,840 Utility Consulting 12,350 Title 24 & Survey 15,000 Legal 16,500 Accounting, Printing & Insurance 11,275 General & Administrative 47,950 Property Taxes (24 months) 14,325 City Fees & Permits 425,000 Contingency 34,653 Construction Loan Interest Subtotal - Soft Costs 727,718 Total Development Cost $ 4,326,031