Final Exam Assumptions

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 $5/1/17$ Total Bike Storage Spaces $6$

Construction Completed $8/31/17$

Land Use Plan Acres $\%$ of Site

Buildings $0\mathrm{.}1741\%$

Landscaping$/$Open Space $0\mathrm{.}2459\%$

Total $0\mathrm{.}41100\%$

Current Residential Information

Unit Type Number of Units Square Feet Vacant Units Average Rents

Studio $($w$/$o parking$)361511,425$

Studio $765011,630$

Two Bedroom $693002,200$

Three bedroom $($historic house$)11,68303,200$

Total $172$

Development Cost Information Financing & Value Information

Site Acquisition Cost $$825,000$ Construction Loan Interest Rate $3\mathrm{.}50\%$

Hard Costs Permanent Loan Interest Rate $5\mathrm{.}50\%$

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$.)1\mathrm{.}20$

Landscape$/$Hardscape $76,500$ Interest$-$Only Period N$/$A

Contractor's Fee $80,000$ Market Cap Rate $8\mathrm{.}25\%$

Administrative Overhead & Expenses $73,250$ Your Required ROE $10\mathrm{.}0\%$

Contingency $132,063$

Subtotal $-$ Hard Costs $2,773,313$

Soft Costs

Architecture $48,500$

Landscape 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$

Please calculate

Market Value today

Gain loss since devleoplemt

Return on Assets

Return on Equity