Pro Forma: Rainier Valley Exchange

Page 1

2011 ULI Hines Student Urban Design Competition

Rainier Valley Exchange Team 1157

1. Summary Pro Forma Year 0 2011-2012

Phase I 2013

Phase 2 2014

Phase 3 2016

2015

Phase 4 2018

2017

2019

2020

2021

2022

Net Operating Income Rental Housing For-Sale Housing Rental Housing Affordable For-Sale Housing Market Rate Office/Commercial Affordable Office/Commercial Market-rate Retail Affordable Retail Hotel Structured Parking Surface Parking Other Total Net Operating Income Development Costs Rental Housing Market-rate For-Sale Housing Rental Housing Affordable For-Sale Housing Market Rate Office/Commercial Affordable Office/Commercial Market Rate Retail Affordable Retail Hotel Structured Parking Surface Parking Additional Land Purchase Demolition Costs Total Infrastructure Total Development Costs Annual Cash Flow Net Operating Income 1.1% Estimated Property Tax 7.0% Total Asset Value 2% Total Costs of Sale Total Development Costs Net Cash Flow Debt Service Net Present Value 7.0% Loan to Value Ratio (LVR) Unleveraged IRR Before Taxes Leveraged IRR Before Taxes Market-rate

$0

$0

$662,259

$6,348,070

$6,665,473

$12,686,774

$13,321,113

$15,759,422

$16,547,393

$17,374,762

$18,243,501

$0

$0

$58,055

$538,166

$554,311

$1,033,131

$1,064,125

$1,230,651

$1,267,570

$1,305,597

$1,344,765

$0 $0 $4,140,520 $0

$0 $0 $3,567,611 $0

$1,052,191 $0 $5,511,094 $281,001

$3,522,790 $246,385 $4,203,453 $428,437

$3,628,473 $253,776 $4,329,556 $441,290

$4,865,110 $261,390 $4,715,793 $454,529

$5,011,063 $269,231 $4,857,267 $468,165

$5,351,635 $277,308 $5,265,981 $482,210

$5,512,184 $285,628 $5,423,961 $496,676

$5,677,550 $294,196 $5,586,680 $511,576

$5,847,876 $303,022 $5,754,280 $526,923

$0

$0

$305,789

$314,963

$324,411

$1,371,382

$1,412,523

$1,454,899

$1,498,546

$1,543,502

$1,589,807

$4,140,520

$3,567,611

$7,870,388

$15,602,263

$16,197,292

$25,388,108

$26,403,487

$29,822,106

$31,031,958

$32,293,864

$33,610,175

$0

$10,616,725

$88,892,811

$0

$86,073,286

$0

$25,806,455

$0

$0

$0

$0

$0

$1,198,663

$9,876,979

$0

$9,542,908

$0

$2,779,157

$0

$0

$0

$0

$0 $0 $0 $0

$11,772,000 $0 $17,630,910 $5,395,500

$26,493,300 $3,221,100 $21,549,000 $2,591,325

$0 $0 $0 $0

$11,547,000 $0 $2,252,250 $0

$0 $0 $0 $0

$1,836,000 $0 $2,178,000 $0

$0 $0 $0 $0

$0 $0 $0 $0

$0 $0 $0 $0

$0 $0 $0 $0

$0

$2,966,400

$0

$0

$10,062,049

$0

$0

$0

$0

$0

$0

$0

$6,483,282 $383,429 $3,138,216 $59,585,125

$1,046,727 $8,567,050 $162,238,292

$0 $0 $0

$936,729 $7,666,757 $128,080,979

$0 $0 $0

$224,097 $1,834,145 $34,657,854

$0 $0 $0

$0 $0 $0

$0 $0 $0

$0 $0 $0

$4,140,520 ($650,653)

$3,567,611 ($560,625)

$7,870,388 ($1,236,775)

$15,602,263 ($2,451,784)

$16,197,292 ($2,545,289)

$25,388,108 ($3,989,560)

$26,403,487 ($4,149,119)

$29,822,106 ($4,686,331)

$31,031,958 ($4,876,450)

$32,293,864 ($5,074,750)

$0 $3,489,867

($59,585,125) ($56,578,139) ($2,711,123)

($162,238,292) ($155,604,679) ($10,092,965)

$0 $13,150,479 ($10,092,965)

($128,080,979) ($114,428,976) ($15,920,650)

$0 $21,398,548 ($15,920,650)

($34,657,854) ($12,403,487) ($17,497,582)

$0 $25,135,775 ($20,143,818)

$0 $26,155,507 ($20,143,818)

$0 $27,219,114 ($20,143,818)

$33,610,175 ($5,281,599) $499,762,154 ($9,995,243) $0 $518,095,487 ($238,216,329)

2019

2020

2021

2022

$50,641,261 9.86% 13.33%

Current Site Value (start of Year 0) Projected Site Value (end of Year 10)

$55,206,933 $499,762,154

2. Multiyear Development Program Total Buildout Project Buildout by Development Units Rental Housing Market-rate For-Sale Housing Rental Housing Affordable For-Sale Housing Affordable Retail Hotel Structured Parking Surface Parking Other Project Buildout by Area Rental Housing Market-rate For-Sale Housing Rental Housing Affordable For-Sale Housing Market-Rate Office/Commercial Affordable Office/Commercial Market-rate Retail Affordable Retail Hotel Structured Parking Surface Parking Other Total

Year-by-Year Cumulative Absorption 2013 2014

2016

2017

2018

(units) (units) (units) (units) (units) (rooms) (spaces) (spaces)

0

62

566

566

1,026

1,026

1,156

1,156

1,156

1,156

0

7

63

63

114

114

128

128

128

128

0

16

24

24

24

24

24

24

24

24

0

148

148

148

606

606

606

606

606

606

(s.f.) (s.f.) (s.f.) (s.f.) (s.f.) (s.f.) (s.f.) (s.f.) (s.f.) (s.f.) (s.f.) (s.f.) (s.f.)

0

58,860

538,002

538,002

974,457

974,457

1,097,847

1,097,847

1,097,847

1,097,847

0

6,540

59,778

59,778

108,273

108,273

121,983

121,983

121,983

121,983

0 0 0 0

65,400 0 106,854 32,700

212,585 17,895 237,454 48,405

212,585 17,895 237,454 48,405

276,735 17,895 251,104 48,405

276,735 17,895 251,104 48,405

286,935 17,895 264,304 48,405

286,935 17,895 264,304 48,405

286,935 17,895 264,304 48,405

286,935 17,895 264,304 48,405

0

48,000

48,000

48,000

197,000

197,000

197,000

197,000

197,000

197,000

0

318,354

1,162,119

1,162,119

1,873,869

1,873,869

2,034,369

2,034,369

2,034,369

2,034,369

3. Unit Development and Infrastructure Costs Development Costs Unit Cost Rental Housing 166,250 ($ per unit) Market-rate For-Sale Housing ($ per unit) Rental Housing 166,250 ($ per unit) Affordable For-Sale Housing ($ per unit) Office/Commercial (ALL ) 180 ($ per s.f.) Retail (ALL) 165 ($ per s.f.) Hotel ($ per room) Structured Parking 19,500 ($ per space) Surface Parking ($ per space) Other ($ per space) Public Infrastructure Costs Linear Feet of Infrastructure Other Hardscaping (not incl. surf. pkg.) Landscaping Other Amenities Total Infrastructure Costs Total Development Costs

2015

4. Equity and Financing Sources Total Costs $192,185,000 $21,280,000 $54,869,400 $51,596,985

Percent of Total

J.V. Equity Required

$206,832,724

45%

Financing Sources (total) Conventional Construction/Perm Loan 65% LTC

$249,965,463

55%

$456,798,187

100%

$11,820,000

Private $0 $0 $0

Do not include public costs

Amount Equity Sources (total)

$12,022,400 $3,601,800 $2,744,010 $1,101,750 $19,469,960 $384,562,251

Total Potential Public Subsidies (total, if any)

Given the current low yeild environment, the development Multifamily Property Tax Exemption Program is potentially feasible without public subsidy. However, the Low Income Housing Tax Credits subsidies to the right are potentially available for our New Market Tax Credits development.


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