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Investment Summary
<br />Ruby Apartments Phase II
<br />St. Anthony Village, MN
<br />Total Amalgamation of Improvements
<br />Current Unit Economics Projected Returns
<br />Unit Type (BR/BA)# of Units Avg PSF Rent/SF Avg. Rent / Mo.Total Annual Rent Net Profit (excl Cash Flows)$22,157,795
<br />Studio 24 620 $2.66 $1,648 $474,624 Unlevered Internal Rate of Return 10.2%
<br />1BR/1BA 147 748 $2.55 $1,911 $3,371,004 Levered Internal Rate of Return 24.9%
<br />1BR/1BA + Den 8 987 $2.21 $2,179 $209,184 Levered Equity Multiple 2.1 x
<br />2BR/2BA 59 1,297 $2.02 $2,622 $1,856,376 Return on Cost - Trended Rent 7.02%
<br />3BR/2BA 4 1,689 $2.08 $3,510 $168,480 Return on Cost Upon Exit (FWD 12 Mo.)7.45%
<br />TOTAL 242 893 $2.35 $2,094 $6,079,668
<br />Rent @ Stabilization 2.00%$2.49 $2,222 $6,451,792
<br />Per Yr Growth to Stab.
<br />Stabilized Annual Operating Statement Per Unit Proforma Development Sources and Uses of Funds
<br />Potential Rental Income $6,451,792 Uses of Funds Per Unit Cost % of TPC Amount
<br />Parking Income # of Stalls 210 $125 $315,000 Land Cost $22,666 9%$5,485,246
<br />Storage Income # of Units 62 $75 $55,800 Hard Costs $194,873 73%$47,159,384
<br />Utility Income $70 $203,280 Hard Cost Contingency $3,799 1%$919,446
<br />Total Other Income $540 $130,680 Predevelopment Costs $6,553 2%$1,585,793
<br />Potential Gross Income $29,573 $7,156,552 Fees $7,400 3%$1,790,705
<br />Vacancy & Credit Loss 5.00%($1,479)($357,828)Other Construction Cost $10,878 4%$2,632,500
<br />Effective Gross Income $28,094 $6,798,725 Construction Loan Interest Reserve $9,298 3%$2,250,000
<br />Real Estate Taxes $4,714 $1,140,788 Developer Fee (Deferred)$10,331 4%$2,500,000
<br />Insurance $550 $133,100 Total Project Cost $265,798 100%$64,323,073
<br />Management Fee 3.00%$843 $203,962
<br />Operating Expenses $3,321 $803,588
<br />Total Expenses $9,427 $2,281,438 Sources of Funds % Amount
<br />Net Operating Income (NOI)$18,666 $4,517,287 Construction Loan 67%$43,150,000
<br />Operating Margin 66.4%Doran Contributed Land Value 9% $5,485,246
<br />Doran Contributed Developer Fee 4%$2,500,000
<br />Annual Income Growth Rate 3.00%Doran Cash Equity 4%$2,601,291
<br />Annual Expense Growth Rate 3.00%Investment Partner Equity 16%$10,586,537
<br />Total Sources 100%$64,323,073
<br />Summary of Assupmtions
<br />$3 Million Dollar Decrease in Construction Costs
<br />Elimination of City Assessed Taxes and SAC Fees
<br />10% Increase in Rent Over Current Phase I Rents
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