REAL 1005 Term Project Pro Forma

7/28/2019 REAL 1005 Term Project Pro Forma

1/24

L U X U R Y L I V I N G

ELECTUS UNUS

Project

Highlights

90 Luxury Rental

Apartments

50 One

Bedrooms

40 Two

Bedrooms

Ground Level

Retail

Ideal Midtown

Manhattan

Location

890 East 54th Street,

New York, New York


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Page 2

EXECUTIVE SUMMARYElectus Unus is a luxury high-rise mixed-use development boasting 90 exceptional residential units and 2 street-level retail suites in the heart of Midtown Manhattan. The project construction will span one year followed by a

year of lease-up. Upon stabilization, the ownership entity Electus Unus LLC, will hold the property for an addi-

tional four years before reversion.Based on our investment projections, upon disposition, the investment will return an investment level IRR of 44%

with an NPV of $3,610,199. The developer, Rump International L.P., is the managing member and is searchingfor 3 equity investors. Equity in the amount of $2.225 million must be raised in exchange for limited memberownership stake in the single use entity Electus Unus, LLC. The equity will be dispersed in three increments:

The general partner will provide funds for the land deposit in the amount of 100K to secure the property immedi-ately, $1.3M to purchase and demo the existing property this year, and an additional down payment of $2.4 mil-lion for the equity portion of the construction costs as well as the closing costs affiliated with the permanentmortgage.

The deal will be structured with a 10% pari passu return split in the first tranche. Subsequently, the Sponsor willreceive 30% of the returns until the limited member achieve a return of 15%. Next, sponsor will receive 40% ofthe profits until the investors achieve a 20% return. Once the investor return is achieved, the remaining profitsare split evenly among the entity members.

ELECTUS UNUS LLC ENTITY INFORMATIONThe Developer and Investors will form a Limited Liability Company LLC by the name of Electus Unus LLC

for the sole purpose of entering into contract and, ultimately purchasing the property at 890 East 54th Street. TheLLC has been specifically chosen to be the ownership entity due to the following tax and liability advantages:

The investors liability is limited to the amount invested. The LLC is a pass-through entity. All gains/losses pass directly to the members, because an LLC is not a

taxable entity. An LLC incurs no double taxation (as in a C corporation). In general, an LLC insulates the members from potential liabilities arising out of the operation of the real es-

tate Because all assets inside an LLC are at risk, the single use LLC is used to limit liability to the amount invest-

ed in a single asset.

The developer will assume the role of managing member of the LLC. The equity investors will contribute as lim-ited members. All members will own a proportional share of the ownership entity. Because the LLC is a pass-through entity, all members will be taxed at their respective individual or entity level rates.

CONTENTSExecuve SummaryEnty InformaonInvestor SummaryMarket AnalysisProperty DescriponFloor PlanProject CostsTimelineInvestment BriefPro Forma Projecons


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Page 3

I n v e s t o r S u m m a r y K e y R e t u r n s & R a t i o s

Electus Unus LLC Calculation of Internal Rate of Return and NPV

Year

0

1

2

3

4

56

IRR

NPV

Electus Unus LLC Key Ratios

Loan to Value ("LTV")

Mortgage/ Purchase Price 18,542,301$ 23,177,876$ = 80.0%

Cash on Cash Return (Pre-Tax)

(Pre-Tax Cash Flow/Initial Equity 744,225$ 2,560,336$ = 29.1%

Investment)

Cash on Cash Return (After Tax)

(After Tax Cash Flow/Initial Equity 578,500$ 2,560,336$ = 22.6%

Investment)

Gross Rent Multiplier ("GRM")

(Property Cost/Gross Rent Potential) 19,314,897$ 3,482,340$ = 5.55x

Debt Service Coverage

(NOI Annual/Debt Service) 2,370,907$ 1,537,331$ = 1.54xExpense Ratio

(Total Operating Expenses/Gross 1,045,386$ 3,482,340$ = 30.0%

Rent Potential)

Margin of Safety

(NOI - Debt Service) 2,370,907$ 1,537,331$ = 833,577$

Internal Rate of Return (After Tax) 43.53%

Net Present Value (After Tax) 3,610,199$

610,391

444,6816,697,458

January 1, 2013 (2,419,336)

Initial Equity

Investment

November 15, 2012

43.53%

Total Cash Flow

After Tax Cash Flow

Operations

3,610,199$

From Sale After Tax

Cash Flow

(141,000)

(2,419,336)

1,335,009

578,500

January 1, 2014

January 1, 2015

January 1, 2016

January 1, 2017December 31, 2018

(141,000)

1,335,009

578,500

610,391

444,681477,875 6,219,583


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Page 4

Development Brief

Electus Unus LLC proposes to purchase theland with a fire gutted building shell at 890E. 54th Street in Midtown Manhattan. Uponacquisition, the developer proposes demol-ishing the existing building and constructinga new mixed-use luxury high-rise structure inits place.

The developer has completed the due dili-gence process which includes the marketanalysis, structural inspection and develop-

ment of a financial model for the purpose ofthe decision to invest.

The land must be secured with a 10% depos-it by October 2012. The developer antici-pates closing on the property by Novemberof 2012. Demolition and pre-developmentdesign review will begin immediately afterclosing. Simultaneously, the constructionloan will be processed and secured by theend of December for 90% of the construc-

tion costs. The construction phase is sched-uled to be completed by end of year 2013, atwhich time lease-up will begin.

Property Description &

Amenities

The property is located in Midtown East Man-

hattan and boasts views of both the East River

and the Manhattan Skyline.

The property has a maximum allowable building

area of 98,000 square feet. Based on the pre-

development design review, the highest and best

use consists of 90 luxury apartment rentals and

2 30,000 square feet retail suites on the ground

floor. The unit mix will consist of 50 one-bedroom and 40 two-bedroom units.

The property will boast luxury amenities includ-

ing 24 hour doorman service, indoor swimming

pool, large gym and spa, banquet rooms, a roof-

top terrace, and business center with board

rooms.

FLOOR PLANS

MANHATTAN APARTMENT MARKET ANALYSIS As f inancing standards remain tight in the for-sale segment, and uncerta inty presides over the economy, an expanding renter pool will keep vacancies below prereces-

sion levels. Despite record-low interest rates, stringent underwriting standards and employment jitters are keeping many potential buyers sidelined. As the economy

grows at a tepid pace, households are hedging against any potential setbacks by renting versus taking on mortgage debt. Unce rtainty in the global economy will contin-

ue to drive foreign wealth and institutional investors to acquire core, trophy apartment assets in Manhattan. Due to the inte nse competition for this product type, first-

year returns will hover around 3 percent.

Employers will generate 95,000 positions in New York City this year, representing a 2.5 percent annual rate of growth. The pr ofessional and business services, along

with the education and health services sectors wi ll create the bulk of the new jobs in tha t time, while the f inancia l service s industry is on pace to lose additional work-

ers.In 2012, just over 2,700 market-rate units will hit the market, which is well above last years total of 1,700 apartments.

By year end, vacancy will fall below prerecession levels to 2.3 percent, representing a 20 -basis point improvement from the prior 12 months. In 2011, vacancy tumbled

120 basis points. At this point, it would be difficult to project vacancies falling much further than this near frictional rate.

Average asking rents will finish 2012 at $3,730 per month, up 1 percent from the preceding year. Effective rents will rise 1. 6 percent during this time to $3,615 per

month. Last year, asking rents increased 3 percent, while effective rents climbed 3.3 percent.Source: Marcus & Mil l ichap Manhattan Multifamily Research Report 2012 Q4


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P r o j e c t C o s tD e v e l o p m e n t P h a s e

Electus Unus LLC Development Budget

to

Total Cost SF Cost Equity Debt

Land Acquisition 10% 90%

Land Contract Deposit 100,000$ 1.02$ 10,000$ 90,000$

Land Cost: 900,000 9.18 90,000 810,000

Closing Costs: 60,000 0.61 6,000 54,000

Demo Costs: 350,000 3.57 35,000 315,000

Total 1,410,000 14.39 141,000 1,269,000

Construction Costs

Building CostsHard Costs: 14,700,000 150.00 1,470,000 13,230,000

Soft Costs: 1,470,000 15.00 147,000 1,323,000

Pre-Development Costs

Engineering, design, architects, fees and costs: 500,000 5.10 50,000 450,000

NYC plumbing, water stema connection permits: 75,000 0.77 7,500 67,500

Land, soil tests, environmental testing: 25,000 0.26 2,500 22,500

otal 16,770,000 171.12 1,677,000 15,093,000

Construction Loan

Construction Loan Interest: 1,024,897 10.46 102,490 922,407

Construction Loan Fees: 40,000 0.41 4,000 36,000

Lender's Legal Fees: 20,000 0.20 2,000 18,000Engineering Review: 10,000 0.10 1,000 9,000

Borrower's Legal Fees: 15,000 0.15 1,500 13,500

otal 1,109,897 11.33 110,990 998,907

TaxesConstruction Period Real Estate Taxes: 25,000 0.26 2,500 22,500

Construction Cost Total 17,904,897 182.70 1,790,490 16,114,407

Total Investment 19,314,897 197.09 1,931,490 16,114,407

November 15, 2012 December 31, 2013

Page 5


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Page 6

INVESTMENT BRIEF

The projections of cash flow are based on market conditions with the understanding that real estate is an inherently risky investment and may result in loss of principal.

The developer is projecting a 3% increase in gross rents over each year of the holding period. Expenses will also grow at 2% per annum. In accordance with lender

standards , the projects have been calculated with the assumption of 2% vacancy and credit loss for residential and 1% for commercial space.

The developer has secured permanent finance contingent upon certain terms and market conditions. These are the terms:

6.5% annual interest rate

25 year amortization

An LTV of 80%

Costs associated with mortgage in excess of $600,000 dollars

The loan will presumably be valued at 120% of the project costs. Furthermore, at an LTV of 80%, the risks associated with increases in vacancy rates are much higher

due to the smaller amount of equity placed in the property. In the other hand, given the market conditions, the higher leverage will allow the investors a greater return

on their investment.

Upon substantial completion of the construction phase of the development. The permanent mortgage will take out the construction loan. According to our projec-

tions, there will be a surplus of loan funds attributable to the valuation of the property at time T1. The surplus loan funds will be reinvested into the property during

the lease up year to offset any lease up vacancy deficiency. At year end of 2014, the funds will be distributed to the investors on a pari passu bases as is consistent with

the operating agreement for distribution of profits among the members.

As the pro forma analysis projections show, the returns on equity are projected to be quite substantial. Upon disposition at the end of year 5, the property is expected

to provide a internal rate of return equal to 43%. Needless to say this is an incredible return and we are pleased to present this opportunity to you.


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P r o F o r m a P r o j e c t i o n5 Y e a r P r o p e r t y P e r f o r m a n c e

Electus Unus LLC Performing Financial Projections

YEAR ENDING

Gross Potential Revenue:

1 Bedroom

2 Bedroom

Affordable 1-bedroomRetail

Total Potential Gross Income

Vacancy and Credit Loss:

ResidentialRetail

Total Vacancy Allowance

Effective Gross Income:

ResidentialRetail

Total Effective Gross Income

Operating ExpensesReal Estate axes

Total Operating Expenses

Net Operating IncomeNet Selling Price

Total Unlevered Cash Flow

Depreciation Expense

Perm. Mortage Interest Expense

Perm. Mortgage Costs

Perm. Mortgage Cost Balance

Mortgage Balance

Net Income (Before-Tax)

Net Proceeds From Sale

Total Levered Cashflow

Income Tax From OperationsTaxes on Sale

Net Income (Aft er-Tax)

Net Proceeds From Sale (After-Tax)

Leasing Commissions:

ResidentialRetail

otal Leasing Commissions

Depreciation Expense

Debt Amortization

Income From Take-Out MortgageEquity-after-tax Cash Flow

Income ax From Operations

axes on Sale

Equity-before-tax Cash Flow

1,158,894

1

December 31, 2014

360,000

(3,600)

(1,200,126)

(1,073,476)

(1,045,386)-

(62,447)(3,600)

(922,000)-

356,400

(922,000)

(68,237)

2,498,000

2,138,000360,000

18,542,301 18,247,568 17,932,313 17,595,108 17,234,424

(503,077)

(3,000) (3,000)

650,178

8,367,216

- - -

(109,900)

(3,000)

42

December 31, 2015

(650,178)

(1,242,598)

(69,430)

(25,154)

1,335,009

(649,500)

1,848,500

650,178

559,157

(25,000)

-

(69,850) (71,837)

(69,430)

(1,222,076)

(650,178)

(25,154)

(650,178)

1,848,500 2,370,907

- -

(624,500)

2,434,614 2,195,228 27,545,785

3,151,690356,400 356,400

25,282,970- -

3,416,293 3,508,090

343,249

- -

(63,034) (64,925) (66,873)

(25,154)

1,711,684

(66,034)

6,219,583

(120,137) (152,582)

(69,873)

(3,000)

120,137

- -

650,178

(195,705)

559,157

1,350,000$

1,680,000

360,00030,000

5

December 31, 2018

(1,132,209)(305,005)

(1,407,413)

(67,925)

(25,154)

650,178

(305,005)

(3,600)

3,246,241 3,343,628

(1,102,408)

2,434,614

3

32,782

(1,073,476)-

(64,320) (66,250)

(67,920)

December 31, 2017

360,000

1,417,229$ 1,459,745$ 1,503,538$

December 31, 2016

33,76530,900

3,482,340

1,766,955 1,819,963 1,874,562

31,827360,000

3,576,010 3,672,491

2,262,814

(1,151,533)

(650,178)

2,195,228

(1,176,647)

(650,178)

(1,437,213)

356,400

3,602,641 3,700,028

(1,711,684)

283,367

-

806,096

578,500 610,391

152,582-

-

195,705

564,818 8,561,724

165,725

744,225

(294,733) (315,255) (337,205) (360,684)

307,775 363,452 223,112

(165,725)

-

650,178

(64,198)

(3,000)(61,198)

(385,798)

1,335,009-

(106,900)

(2,560,336)

(2,560,336) 444,681 6,697,458

-

(3,600)

473,499(69,430)

(19,314,897)

(1,045,386)

3,059,893

(66,047)

(2,560,336)

473,499

2,370,907

7,931,267

343,249 435,950

(16,848,627)

(25,154)

3,771,8653,420,000

1,375,950$

1,715,490

360,000


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Page 8

INVESTMENT BRIEF

This

P r o F o r m a P r o j e c t i o nC a p i t a l S u m m a r y

Electus Unus LLC Capital Summary

IRR 31-Dec-12 31-Dec-13 31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 31-Dec-18

Project-Level Cash Flows

Construction Phase (Sale Yr. 1) 11% (18,793,407) 15,592,917 5,794,469 - - - -

Operational Phase 16% (19,171,147) 1,848,500 2,370,907 2,434,614 2,195,228 27,545,785

Both Phases (Sale Yr. 7) 10% (18,793,407) (3,578,229) 1,848,500 2,370,907 2,434,614 2,195,228 27,545,785

Debt Investor Cash Flows 7% (17,383,407) (133,997) 1,537,331 1,537,331 1,537,331 1,537,331 18,385,957

Equity-Entity-Level Cash Flows (EBTCF)

Construction Phase (1,410,000) (2,419,336) - - - - -

Operational Phase 1,335,009 744,225 806,096 564,818 8,561,724Both Phases 31% (1,410,000) (2,419,336) 1,335,009 744,225 806,096 564,818 8,561,724

Preferred-Partner-Level Cash Flows

Construction Phase - (2,250,000)

Both Phases 48% - (2,250,000) 1,173,194 654,018 690,900 378,713 6,003,693

Subordinated-Partner-Level Cash Flows

Construction Phase (141,000) (169,336)

Both Phases 59% (141,000) (169,336) 161,815 90,207 115,196 186,106 2,001,231


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Page 9

Electus Unus LLC Project Capital Structure Projections

Year Ending 31-Dec-12 31-Dec-13 31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 31-Dec-18

Project Cash Requirments as Proposed:

Site Acquisition 1,410,000Hard & Soft Development Costs - 17,904,897

Total Development Phase Cash Requirments (1,410,000) (17,904,897)

Development Phase Total Equity Funding 141,000 2,419,336

Development Phase Debt Funding

(Construction Loan) 17,383,407

Construction Loan Repayment (17,383,407)

Proposed Permanent Loan Amount (Take Out) 18,542,301Operating PBTCF 1,738,600 2,306,710 2,368,581 2,127,303 2,192,942

Reversion PBTCF 25,282,970

PBTCF 1,738,600 2,306,710 2,368,581 2,127,303 27,475,912

Permanent Mortgage Costs (25,154) (25,154) (25,154) (25,154) (528,231)Permanent Loan Debt Service (1,537,331) (1,537,331) (1,537,331) (1,537,331) (1,537,331)

Permanent Loan Repayment (16,848,627)Permanent Loan Debt CFs 1,537,331 1,537,331 1,537,331 1,537,331 18,385,957

Construction Loan Take-Out Balance 1,158,894 - - - -

Operating EBTCF 1,335,009 744,225 806,096 564,818 127,381Reversion EBTCF - - - - 8,434,343

EBTCF 1,335,009 744,225 806,096 564,818 8,561,724

Preferred Equity Capital Account

Preferred Return Allocation

Beginning Equity Investment Balance - - 2,250,000 1,076,806 422,788 - -

Annual Preferred Investment - 2,250,000 - - - - -Preferred Return Earned - - 1,173,194 654,018 690,900 378,713 6,003,693

Preferred Return Paid - - (1,173,194) (654,018) 268,112 (378,713) (6,003,693)

Accrued But Unpaid Preferred Return - - - - - - -

Ending Equity Investment Balance - 2,250,000 1,076,806 422,788 - - -

Reversion Preferred Allocations:

Allocation to Satisfy Preferred Return Requirment - - - - - - 5,744,436

Allocation to Return Subordinated Investment Requirement - - - - - - 2,186,831

P r o F o r m a P r o j e c t i o nC a p i t a l S t r u c t u r e P r o j e c t i o n s


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Page 10

INVESTMENT BRIEF

This

P r o F o r m a P r o j e c t i o nE q u i t y W a t e r f a l l S c h e d u l e

Electus Unus LLC Equity Waterfall Structure Schedule

Managing Member Equity Contribution 12.12%

Limited Member #1 Equity Contribution 29.29%



Total Equity Contribution Needed 100%

Yr 0 0 1 2 3 4 5 Split % Balance

NCF (141,000) (2,419,336) 1,335,009 744,225 806,096 564,818 8,561,724 8,561,724

All cash flow split pari passu until each member has 10% IRR

LM1 10.00% - (708,697) 391,065 218,006 230,300 - - 29% 8,561,724

LM2 10.00% - (708,697) 391,065 218,006 230,300 - - 29%

LM3 10.00% - (708,697) 391,065 218,006 230,300 - - 29%

GM 10.00% (141,000) (169,336) 161,815 90,207 115,196 23,800 - 12% 8,561,724

Sponsor receives 30% promoted interest until Investor receives 15% IRR

LM1 91,500 - 23%

LM2 91,500 - 23%

LM3 91,500 - 23%

GM 162,306 - 30%LM1 15.00% - (708,697) 391,065 218,006 230,300 91,500 - 8,561,724

LM2 15.00% - (708,697) 391,065 218,006 230,300 91,500 -

LM3 15.00% - (708,697) 391,065 218,006 230,300 91,500 -GM 21.91% (141,000) (169,336) 161,815 90,207 115,196 186,106 -

Total 16.37% (141,000) (2,295,426) 1,335,009 744,225 806,096 460,606 - 8,561,724

Sponsor receives 40% until Investor receives 20% IRR

LM1 34,738 92,800 20%

LM2 34,738 92,800 20%

LM3 34,738 92,800 20%GM 41,685 185,600 40%

LM1 20.00% - (708,697) 391,065 218,006 230,300 126,238 92,800 8,468,924

LM2 20.00% - (708,697) 391,065 218,006 230,300 126,238 92,800

LM3 20.00% - (708,697) 391,065 218,006 230,300 126,238 92,800GM 29.15% (141,000) (169,336) 161,815 90,207 115,196 186,106 185,600

Total 21.94% (141,000) (2,295,426) 1,335,009 744,225 806,096 564,818 464,000 8,004,924

Sponsor receives a 25% promote on all remaining cash flow

LM1 2,001,231 25%

LM2 2,001,231 25%

LM3 2,001,231 25%GM 2,001,231 25%

LM1 50% - (708,697) 391,065 218,006 230,300 126,238 2,001,231 8,004,924

LM2 50% - (708,697) 391,065 218,006 230,300 126,238 2,001,231

LM3 50% - (708,697) 391,065 218,006 230,300 126,238 2,001,231GM 59% (141,000) (169,336) 161,815 90,207 115,196 186,106 2,001,231

Total 52% (141,000) (2,295,426) 1,335,009 744,225 806,096 564,818 8,004,924 -

Com 53% (141,000) ( 2,295,426) 1,335,009 744,225 806,096 564,818 8,468,924 -

2,560,336

310,336$

750,000

750,000

750,000


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Page 11

INVESTMENT BRIEF

This

P r o F o r m a P r o j e c t i o nS a l e P r o c e e d s a n d T a x C a l c u l a t i o n s

Electus Unus LLC Sales Proceeds and Tax Calculations

Calculation of Net Sales Proceeds

Net Operating Income As Per Year 6 2,129,092$

Terminal Cap Rate 8%

Estimated Selling Price 26,613,653Cost of Sale 1,330,683

Net Selling Price 25,282,970

Mortgage Costs Balance (503,077)

Mortgage Balance At Date Of Sale (16,848,627)Net Proceeds Pre-Tax 7,931,267

Taxes On Sale (1,711,684)

After-Tax Sales Proceeds 6,219,583

Calculation Of Tax On Gain on Sale

Net Sale Price 25,282,970Adjusted Basis (16,039,006)

Gain On Sale 9,243,964

Tax CalculationGain On Sale 9,243,964

Depreciation Recapture Tax 3,250,890 25% 812,723Capital Gain Tax 5,993,073 15% 898,961

1,711,684Total tax

5% of gross sale price


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Page 12

INVESTMENT BRIEF

This

S c h e d u l e o f d e p r e c i a t i o n

Electus Unus LLC Schedule of Depreciation

Land and Building CostAdding: Closing Costs

Demo Costs

Closing Costs

Land, Building, and Acquisition CostsLess: Cost of Land

Depreciable Basis

Recovery Period Years

Depreciation Per Year

Depreciation For 5 Year Holding Period

Schedule of Adjusted Basis

Original Cost Plus Acquisition CostsLess: Accumulated Depreciation

Adjusted Basis

60,000

Land

350,000

16,039,006

TotalBuilding

17,879,897(3,250,890)

18,879,897$

17,879,897

28

19,289,897

14,629,006

1,410,000-

1,410,000

(1,410,000)

410,000

650,178

19,289,897(3,250,890)

3,250,890

P r o F o r m a P r o j e c t i o n


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Page 13

INVESTMENT BRIEF

This

P r o F o r m a P r o j e c t i o nC o n s t r u c t i o n L o a n D r a w S c h e d u l e

Electus Unus LLC Construction Loan Draw Schedule

Construction LoanInterest Rate 10%

Retainage 10%

Months 12

Cumulative Interest

Date Draw Retainage Net Draw Draw Expense

Loan 17,383,407.04

1 2,172,926 217,293 1,955,633 1,955,633 16,297

2 2,172,926 217,293 1,955,633 3,911,267 32,594

3 2,172,926 217,293 1,955,633 5,866,900 48,891

4 2,172,926 217,293 1,955,633 7,822,533 65,188

5 1,241,672 124,167 1,117,505 8,940,038 74,500

6 1,241,672 124,167 1,117,505 10,057,543 83,813

7 1,241,672 124,167 1,117,505 11,175,047 93,125

8 1,241,672 124,167 1,117,505 12,292,552 102,438

9 1,241,672 124,167 1,117,505 13,410,057 111,750

10 1,241,672 124,167 1,117,505 14,527,562 121,063

11 1,241,672 124,167 1,117,505 15,645,066 130,376

12 1,738,341 1,738,341 17,383,407 144,862

Total: 19,121,748 1,738,341 17,383,407 1,024,897

December 31, 2013

March 31, 2013

April 30, 2013

May 31, 2013

June 30, 2013

July 31, 2013

August 31, 2013

September 30, 2013

October 31, 2013

November 30, 2013

December 31, 2012

January 31, 2013

February 28, 2013

17,383,407


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Page 14

INVESTMENT BRIEF

This

P r o F o r m a P r o j e c t i o nL e a s e - U p Y e a r M a t r i x & R e n t R o l l

Electus Unus LLC Lease-up Year Matrix Schedule

1 2 3 4 5 6 7 8 9 10 11 12

Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 TotalRent Roll

1 Bedroom 27,500 27,500 62,500 62,500 62,500 75,000 75,000 97,500 100,000 105,000 112,500 117,500 925,000

2 Bedroom 31,500 31,500 80,500 80,500 80,500 98,000 98,000 129,500 133,000 140,000 140,000 140,000 1,183,000

Affordable 1-bedroom 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000

Retail 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 360,000

Total 91,500 91,500 175,500 175,500 175,500 205,500 205,500 259,500 265,500 277,500 285,000 290,000 2,498,0002014

Electus Unus LLC Lease-up Year Rent Roll

Unit Unit Type Market Rent Actual Rent Lease From Lease To Next Lease Current Lease

R1 Retail $15,000/month $15,000/month 1-Jan-14 31-Dec-19 12.00 0.00

R2 Retail $15,000/month $15,000/month 1-Jan-14 31-Dec-19 12.00 0.00

1 1 Bedroom $2,500/month $2,500/month 1-Jan-14 31-Dec-14 12.00 0.00









10 1 Bedroo m $2,500/month $2,500/month 1-Mar-14 28-Feb-15 10.00 2.00














24 1 Bedroo m $2,500/month $2,500/month 1-Jun-14 31-May-15 7.00 5.00





29 1 Bedroo m $2,500/month $2,500/month 1-Aug-14 31-Jul-15 5.00 7.00


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P r o F o r m a P r o j e c t i o nR e n t R o l l ( c o n t i n u e d )

30 1 Bedro om $2,500/month $2,500/month 1-Aug-14 31-Jul-15 5.00 7.00


32 1 Bedro om $2,500/month $2,500/month 1-Aug-14 31-Jul-15 5.00 7.0033 1 Bedro om $2,500/month $2,500/month 1-Aug-14 31-Jul-15 5.00 7.00





38 1 Bedro om $2,500/month $2,500/month 1-Sep-14 31-Aug-15 4.00 8.00

39 1 Bedro om $2,500/month $2,500/month 1-Oct-14 30-Sep-15 3.00 9.00

40 1 Bedro om $2,500/month $2,500/month 1-Oct-14 30-Sep-15 3.00 9.00

41 1 Bedro om $2,500/month $2,500/month 1-Nov-14 31-Oct-15 2.00 10.00



44 1 Bedro om $2,500/month $2,500/month 1-Dec-14 30-Nov-15 1.00 11.0045 1 Bedro om $2,500/month $2,500/month 1-Dec-14 30-Nov-15 1.00 11.00

46 Affordable 1-bedroom $0,500/month $500/month 1-Jan-14 31-Dec-14 12.00 0.00





51 2 Bedro om $3,500/month $3,500/month 1-Jan-14 31-Dec-14 12.00 0.00




55 2 Bedro om $3,500/month $3,500/month 1-Jan-14 31-Dec-14 12.00 0.0056 2 Bedro om $3,500/month $3,500/month 1-Jan-14 31-Dec-14 12.00 0.00




60 2 Bedro om $3,500/month $3,500/month 1-Mar-14 28-Feb-15 10.00 2.00







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P r o F o r m a P r o j e c t i o nR e n t R o l l C o n t i n u e d

66 2 Bedroom $3,500/month $3,500/month 1-Mar-14 28-Feb-15 10.00 2.00








74 2 Bedroom $3,500/month $3,500/month 1-Jun-14 31-May-15 7.00 5.00


76 2 Bedroom $3,500/month $3,500/month 1-Jun-14 31-May-15 7.00 5.0077 2 Bedroom $3,500/month $3,500/month 1-Jun-14 31-May-15 7.00 5.00


79 2 Bedroom $3,500/month $3,500/month 1-Aug-14 31-Jul-15 5.00 7.00








87 2 Bedroom $3,500/month $3,500/month 1-Aug-14 31-Jul-15 5.00 7.0088 2 Bedroom $3,500/month $3,500/month 1-Sep-14 31-Aug-15 4.00 8.00

89 2 Bedroom $3,500/month $3,500/month 1-Oct-14 30-Sep-15 3.00 9.00

90 2 Bedroom $3,500/month $3,500/month 1-Oct-14 30-Sep-15 3.00 9.00


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Electus Unus LLC Permanent Loan Amortization Schedule

Compound Annual Rate: 6.75% Commitment Letter Charges: 185,423 Perm Loan Closing Fees: 185,423

Effective Annual Rate 6.963% Legal Fees: 60,000 Borrower's Legal Fees: 30,000

Periodic Rate 0.5625% Misc Costs: 30,000 Lender's Legal Fees: 20,000

Daily Rate 0.01849% Borrower's Costs: 70,000 Other Lender Fees: 48,000

CASH FLOW DATA

Event Start Date Amount Number Period

1 Loan 1

2 Payment 300 Monthly

AMORTIZATION SCHEDULE - Normal Amortization

Date Debt Service Interest Principal Balance

Loan 18,542,301

1 (128,111) (104,300) (23,810) 18,518,490

2 (128,111) (104,167) (23,944) 18,494,546

3 (128,111) (104,032) (24,079) 18,470,4674 (128,111) (103,896) (24,215) 18,446,252

5 (128,111) (103,760) (24,351) 18,421,902

6 (128,111) (103,623) (24,488) 18,397,414

7 (128,111) (103,485) (24,625) 18,372,789

8 (128,111) (103,347) (24,764) 18,348,025

9 (128,111) (103,208) (24,903) 18,323,121

10 (128,111) (103,068) (25,043) 18,298,078

11 (128,111) (102,927) (25,184) 18,272,894

12 (128,111) (102,785) (25,326) 18,247,568

Total (1,537,331) (1,242,598) (294,733)

13 (128,111) (102,643) (25,468) 18,222,100

14 (128,111) (102,499) (25,612) 18,196,48815 (128,111) (102,355) (25,756) 18,170,732

16 (128,111) (102,210) (25,901) 18,144,832

17 (128,111) (102,065) (26,046) 18,118,786

18 (128,111) (101,918) (26,193) 18,092,593

19 (128,111) (101,771) (26,340) 18,066,253

20 (128,111) (101,623) (26,488) 18,039,765

21 (128,111) (101,474) (26,637) 18,013,127

22 (128,111) (101,324) (26,787) 17,986,340

23 (128,111) (101,173) (26,938) 17,959,403

24 (128,111) (101,022) (27,089) 17,932,313

Totals (1,537,331) (1,222,076) (315,255)

December 31, 2015

(128,111)$

October 31, 2015

November 30, 2015

December 31, 2013

January 31, 2014 January 31, 2039

End Date

18,542,301$

2014

2015

January 31, 2014

December 31, 2013

February 28, 2014

March 31, 2014April 30, 2014

May 31, 2014

June 30, 2014

July 31, 2014

August 31, 2014

September 30, 2014

October 31, 2014

November 30, 2014

September 30, 2015

December 31, 2014

January 31, 2015

February 28, 2015March 31, 2015

April 30, 2015

May 31, 2015

June 30, 2015

July 31, 2015

August 31, 2015

P e r m a n e n t L o a n A m o r t i z a t i o n S c h e d u l e


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25 (128,111) (100,869) (27,242) 17,905,072

26 (128,111) (100,716) (27,395) 17,877,677

27 (128,111) (100,562) (27,549) 17,850,12828 (128,111) (100,407) (27,704) 17,822,424

29 (128,111) (100,251) (27,860) 17,794,564

30 (128,111) (100,094) (28,016) 17,766,548

31 (128,111) (99,937) (28,174) 17,738,374

32 (128,111) (99,778) (28,333) 17,710,041

33 (128,111) (99,619) (28,492) 17,681,549

34 (128,111) (99,459) (28,652) 17,652,897

35 (128,111) (99,298) (28,813) 17,624,084

36 (128,111) (99,135) (28,975) 17,595,108

Totals (1,537,331) (1,200,126) (337,205)

37 (128,111) (98,972) (29,138) 17,565,970

38 (128,111) (98,809) (29,302) 17,536,668

39 (128,111) (98,644) (29,467) 17,507,20040 (128,111) (98,478) (29,633) 17,477,568

41 (128,111) (98,311) (29,800) 17,447,768

42 (128,111) (98,144) (29,967) 17,417,801

43 (128,111) (97,975) (30,136) 17,387,665

44 (128,111) (97,806) (30,305) 17,357,360

45 (128,111) (97,635) (30,476) 17,326,884

46 (128,111) (97,464) (30,647) 17,296,237

47 (128,111) (97,291) (30,820) 17,265,417

48 (128,111) (97,118) (30,993) 17,234,424

Totals (1,537,331) (1,176,647) (360,684)

49 (128,111) (96,944) (31,167) 17,203,257

50 (128,111) (96,768) (31,343) 17,171,91551 (128,111) (96,592) (31,519) 17,140,396

52 (128,111) (96,415) (31,696) 17,108,699

53 (128,111) (96,236) (31,874) 17,076,825

54 (128,111) (96,057) (32,054) 17,044,771

55 (128,111) (95,877) (32,234) 17,012,537

56 (128,111) (95,696) (32,415) 16,980,122

57 (128,111) (95,513) (32,598) 16,947,524

58 (128,111) (95,330) (32,781) 16,914,743

59 (128,111) (95,145) (32,965) 16,881,778

60 (128,111) (94,960) (33,151) 16,848,627

Totals (1,537,331) (1,151,533) (385,798)

February 28, 2018March 31, 2018

April 30, 2018

May 31, 2018

June 30, 2018

July 31, 2018

Augus t 31, 2018

September 30, 2018

October 31, 2018

July 31, 2017

Augus t 31, 2017

September 30, 2017

October 31, 2017

November 30, 2017

December 31, 2017

January 31, 2018

November 30, 2018

December 31, 2018

2016

2017

2018

January 31, 2016

February 29, 2016

March 31, 2016April 30, 2016

May 31, 2016

June 30, 2016

July 31, 2016

Augus t 31, 2016

September 30, 2016

October 31, 2016

November 30, 2016

December 31, 2016

January 31, 2017

February 28, 2017

March 31, 2017April 30, 2017

May 31, 2017

June 30, 2017

A m o r t i z a t i o n S c h e d u l e ( c o n t i n u e d )


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A s s u m p t i o n s

Project

Project Entity: Electus Unus LLC

Address: 890 East 54th Street, New York, New York

Gross Building SqFt: 98,000 sf

Unit mix:

1 Bedroom 50 Units2 Bedroom 40 Units

Total Apartment Units 90 Units

Retail 2 Units

Affordable 1-bedroom

@ 9% /grsqft

@ 20% of m arket rent10% of one-bedrooms

Leasing

Residential Lease Term:

Retail Lease Term:

Lease ConcessionResidential Renewal Lease Increase: 3%

Leasing Commission Costs at Renewal:


Lease-up Year: to

Stabilization year: to

Operational year: toJanuary 1, 2016

January 1, 2014

January 1, 2015

December 31, 2014

December 31, 2015

December 31, 2018

0st Month Free

2% of effective gross income

72 Months

12 Months


Market

Apartment:

1 Bedroom

2 Bedroom


Vacancy and Credit Loss 2%

Commercial:

Retail Space


$2,500/month

$500/month

$3,500/month

$15,000/month



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P r o F o r m a P r o j e c t i o nA s s u m p t i o n s ( c o n t i n u e d )

Loans

Construction Loan:

Construction Loan Closing Date

Construction Annual Rate 10%Construction Loan Draw: Term Percentage

4 Months 50%

7 Months 50%

1 Months 10%

Construction Loan Fees:

Lender's Legal Fees:

Engineering Review:

Borrower's Legal Fees:

Perm Loan: 80% LTV

Perm Loan Closing Date:

Perm Annual Rate 6.75%

Amortization 25 Years

Compound Period 12 (Monthly)

Commitment Letter Charges: 185,423

Legal Fees: $60,000

Misc Costs: $30,000

Borrower's Costs: $70,000

Perm Loan Closing Fees: 185,423

Borrower's Legal Fees: $30,000

Lender's Legal Fees: $20,000

Other Lender Fees: $48,000

$40,000.00

$20,000.00

$10,000.00

$15,000.00

December 31, 2013

1% of total perm loan

December 31, 2012

1% of total perm loan

90% of total construction costs

Tax

Federal Tax Rate: 35%

Capital Gain Tax Rate: 15%

Depreciation Term:

Depreciation Rate: 25%

Equity Deal

Preferred Return 10%

27.5 Years


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Project

Project Entity: Electus Unus LLC

Address: 890 East 54th Street, New York, New York

Gross Building SqFt: 98,000 sf

Unit mix:

1 Bedroom 50 Units

2 Bedroom 40 Units

Total Apartment Units 90 Units

Retail 2 Units


@ 9% /grsqft

@ 20% of m arket rent10% of one-bedrooms

Leasing

Residential Lease Term:

Retail Lease Term:

Lease Concession

Residential Renewal Lease Increase: 3%

Leasing Commission Costs at Renewal:


Lease-up Year: to

Stabilization year: to

Operational year: toJanuary 1, 2016

January 1, 2014

January 1, 2015

December 31, 2014

December 31, 2015

December 31, 2018

0st Month Free


72 Months

12 Months


Market

Apartment:

1 Bedroom

2 Bedroom



Commercial:

Retail Space


$2,500/month

$500/month

$3,500/month

$15,000/month


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Valuation

Valuation Multiple:

Sale Date:

Going-Out Cap Rate: 8%

Costs of Sale:

Hurdle Rate: 12%

120% of total cost of project

12/31/2018

5% of gross sale price

Building Costs

Hard Construction Costs: $150 pbsf

Soft Costs:

Construction Period: to

Pre-development Costs

Engine ering, desig n, archit ects , fe es and costs : $500,000

NYC plumbing, water stema conn ect ion permits: $75,000

Land, soil tests, en vironmental testing : $25,000

10% /Hard Costs

January 1, 2013 December 31, 2013

Land Acquisition

Acquisition Date:

Closing Costs:

Land Cost:

Land Contract Deposit 10%

Demo Costs: $350,000

November 15, 2012

6% of purchase price

$1,000,000


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Expenses

Operating Expenses:

Lease-up YearStabilized year

Operating Expense Growth

Real Estate Taxes:

Land & Building

Tax Growth:

Stabilized Tax Rate 10.739%

Real Estate Tax Exemption:

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

100% 100% 70% 70% 50% 50%

Lease year

$25,000/annum

25% of EGI

30% of EGI

2%/annum

% of Exemption


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Electus Unus, LLC890 East 54th Street New

York, NY

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