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<br />ATTACHMENT E
<br />Financial Analysis
<br />
<br />
<br />The financial information Core Campus submitted in their application is based on projections
<br />prior to finalizing financing, construction, and tenanting. The financial assumptions included in
<br />Core Campus’s MUPTE application pro-forma have been analyzed and adjusted as necessary to
<br />more accurately reflect the expected financial performance of the project.
<br />
<br />Sources
<br />
<br />Total Cost
<br />Annual debt service
<br />
<br />Equity$ 11,001,14925%n/a
<br />
<br />Conventional Debt$ 33,003,44975%$ 2,491,522
<br />
<br />Total project$ 44,004,598$ 2,491,522
<br />
<br />The $11 million in equity is anticipated to come from a single investor who has worked with
<br />Core Campus on other projects. A minimum of 8.96% return (Cash on Cash) is needed in year 1
<br />to secure the proposed equity investment.
<br />
<br />Core Campus plans to use conventional bank construction financing, with the permanent, take-
<br />out financing anticipated from a large commercial bank. Underwriting for the permanent
<br />financing is based on a maximum 75% loan-to-value and minimum 1.25 debt service coverage
<br />ratio.
<br />
<br />Pro-Forma Without MUPTE
<br />The pro-forma without MUPTE in this memo is derived from applying market-based
<br />assumptions (described below) to the information provided by the developer.
<br />
<br />Without MUPTEYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
<br />
<br />
<br />Rent Income$ 4,227,360$ 4,269,634$ 4,312,330$ 4,355,453$ 4,399,008$ 4,442,998$ 4,487,428$ 4,532,302$ 4,577,625$ 4,623,401
<br />
<br />Parking Income$ 88,920$ 89,809$ 90,707$ 91,614$ 92,531$ 93,456$ 94,390$ 95,334$ 96,288$ 97,250
<br />
<br />Retail Income$ 110,573 $ 111,679 $ 112,795 $ 113,923 $ 115,062 $ 116,213 $ 117,375 $ 118,549 $ 119,734 $ 120,932
<br />
<br />
<br />Misc. Income$ 222,239 $ 224,461 $ 226,706 $ 228,973 $ 231,263 $ 233,575 $ 235,911 $ 238,270 $ 240,653 $ 243,060
<br />
<br /> - Vacancy (5%)$ 232,455 $ 234,779 $ 237,127 $ 239,498 $ 241,893 $ 244,312 $ 246,755 $ 249,223 $ 251,715 $ 254,232
<br />
<br /> = Effective Gross Rent$ 4,416,600$ 4,460,800$ 4,505,400$ 4,550,500$ 4,596,000$ 4,641,900$ 4,688,300$ 4,735,200$ 4,782,600$ 4,830,400
<br />
<br /> - Operating Exp (32%)$ 1,413,312$ 1,427,456$ 1,441,728$ 1,456,160$ 1,470,720$ 1,485,408$ 1,500,256$ 1,515,264$ 1,530,432$ 1,545,728
<br />
<br /> = NOI$ 3,003,288$ 3,033,344$ 3,063,672$ 3,094,340$ 3,125,280$ 3,156,492$ 3,188,044$ 3,219,936$ 3,252,168$ 3,284,672
<br />
<br /> - Debt Service$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522$ 2,491,522
<br />
<br />
<br /> = CF$ 511,766 $ 541,822 $ 572,150 $ 602,818 $ 633,758 $ 664,970 $ 696,522 $ 728,414 $ 760,646 $ 793,150
<br />
<br />Cash on Cash Return 4.7%4.9%5.2%5.5%5.8%6.0%6.3%6.6%6.9%7.2%
<br />
<br />Value$ 42,904,000$ 43,333,000$ 43,766,743$ 44,204,857$ 44,646,857$ 45,092,743$ 45,543,486$ 45,999,086$ 46,459,543$ 46,924,000
<br />
<br />DCR 1.21
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