Convergence
Residential Rental
Market Rate Rental
Middle Income Rental
Low Income Rental
Residential For Sale
Market Rate For Sale
Middle Income For Sale
Low Income For Sale
Sq. Ft.
Sq. Ft.
Sq. Ft.
# of Units
160
16
16
Building Assumptions
Avg. Unit Size
1,250
1,000
1,000
Sq. Ft.
Sq. Ft.
Sq. Ft.
# of Units
115
12
12
Avg. Unit Size
1,567
1,400
1,400
Sq. Ft.
Sq. Ft.
Room
R
Space
Space
Sq. Ft.
Sq Ft.
# of Units
N/A
N/A
240
900
800
N/A
N/A
Total Area
110,250
171,750
96,000
96 000
337,500
300,000
822,367
389,250
Unit Revenue / Year
$
12.60
$
10.08
$
6.30
$
$
$
Unit Build Cost
105.00
99.75
99.75
Parking Ratio
1.5 / 1000 sq ft.
1.5 / 1000 sq ft.
1.5 / 1000 sq ft.
$
$
$
Unit Build Cost
125.00
118.75
118.75
Parking Ratio
1.5 / 1000 sq ft.
1.5 / 1000 sq ft.
1.5 / 1000 sq ft.
$
$
$
$
$
$
$
Unit Build Cost
120.00
100.00
66,000.00
66 000 00
15,000.00
23,500.00
0.20
5.74
Parking Ratio
3 / 1000 sq ft.
3 / 1000 sq ft.
1 / Room
R
N/A
N/A
N/A
N/A
Sale Price
$
$
$
150.00
120.00
75.00
Asset Mix
Residential - Total
Market-Rate Rental
Market-Rate For Sale
Middle Income Rental
Middle Income For Sale
Low Income Rental
Low Income For Sale
Office
Retail
Hotel
Structured Parking
Underground Parking
Pedestrain Parkway
TOTAL
Asset Mix
Residential - Total
Office
Retail
Hotel
Other Assets
Office
Retail
Hotel
H l
Structured Private / Parking
Underground / Public Parking
Private Infrastructure
Pedestrian Parkway
Public Infrastructure - Project Area
Road Removal
Road Improvements
Public Park
Total
# of Units
Sq. Ft.
LF
Sq. Ft.
Unit Revenue / Year
$
18.24
$
14.40
$
1,200.00
1 200 00
$
1,260.00
$
144.00
N/A
N/A
Unit Cost
92,400
1,483
43,560
$
$
$
2.00
150.00
6.00
$
$
$
$
Structured / Private
Parking
Underground
U d
d/
Public Parking
Residental Unit Types
1-Bedroom
2-Bedroom
3-Bedroom
4-Bedroom
Financial Assumptions:
• Income revenue is based on comparable Dallas area rates.
Total Cost
184,800.00
222,450.00
261,360.00
668,610.00
• Construction rates are based on average rates in the Dallas area
• A TIF bond will be created for public parking construction costs.
Approximately 48% of spaces will be designated for public parking The
remainder are private spaces. Public parking will be free for a
designated block of time (i.e.-first 4 hrs).
Parking
Private Monthly Parking
Public Parking
Total
• A 5% premium was added to hard costs for Green Construction
practices.
Finacing Sources
Conventional:
Construction Loan (80%)
NPV by Asset Mix
$30,000,000.00 $25,000,000.00 $20,000,000.00 $15,000,000.00 Development Costs
$10,000,000.00 Avg. Cap Rate
Discount Rate
Terminal Value
Project NPV
Unlevered IRR
$
$
10.00%
10.00%
140 168 221 32
140,168,221.32
(22,444,960.96)
6.73%
$0.00 PHASE 1
Years 1-2
Retail
Hotel
Parking
Project Cash Flows
Development Costs Total
Acquisition Costs (19 Acres)
Net Hard Costs
Net Soft Costs (8% of Hard Costs)
Green Construction Premium (5%)
Contingency Factor (10%)
TIF Bond for Public Parking
$
$
$
$
$
$
$
NPV
(159,038,525)
(159
038 525)
(28,761,250)
(118,154,354)
(9,452,348)
(5,907,718)
(11,815,435)
15,052,579
$
$
$
$
$
$
$
Net Sales Income Total
$
23,123,076
$
Net Operating Income Total
Residential
Retail
Office
Hotel
Parking
Net Cash Flow
$
$
$
$
$
$
$
113,470,488
18,842,797
22,020,391
31,564,120
30,063,696
10,979,484
(22,444,961)
$
$
$
$
$
$
$
TEAM 2468
2010
(50,427,245)
(50 427 245)
(28,761,250)
(29,852,499)
(2,388,200)
(1,492,625)
(2,985,250)
15,052,579
859,688
209,440
209,440
(49,358,117)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2011
(33,425,154)
(33 425 154)
(27,174,922)
(2,173,994)
(1,358,746)
(2,717,492)
885,479
3,511,401
103,106
534,523
1,051,788
1,390,538
431,446
(29,028,274)
$
$
$
$
$
$
$
2012
(31,586,200)
(31 586 200)
(25,679,837)
(2,054,387)
(1,283,992)
(2,567,984)
-
$
$
$
$
$
$
$
2013
(27,152,432)
(27 152 432)
(22,075,148)
(1,766,012)
(1,103,757)
(2,207,515)
-
$
$
$
$
$
$
$
884
816
1700
Projected Amount
$
127,230,820.39
$
$
23,855,778.82
7,951,926.27
$
15,052,579.33
PHASE 2
Years 2-4
PHASE 3
Years 4-6
Sq. Feet
Units
Sq. Feet
Units
Sq. Feet
Units
21
N/A
N/A
235
567
186,750
13,500
71,500
0
212500
147
N/A
N/A
0
567
203,500
0
0
0
212,500
160
N/A
N/A
0
567
$
$
$
$
$
$
$
2015
(22,320,364)
(22 320 364)
(18,146,637)
(1,451,731)
(907,332)
(1,814,664)
-
2016
$
$
$
$
$
$
$
2017
-
$
$
$
$
$
$
$
$792,241.02
Community Grants
BrownFields Program
Development Fee Rebates
27,000
96,750
86,750
94,000
212500
2014
(26,150,680)
(26 150 680)
(21,260,715)
(1,700,857)
(1,063,036)
(2,126,072)
-
# of Spaces
TIF - Public Parking
• As vacancy rate of 70% was used for the Hotel.
Office
Avg. Unit Size
683
1,050
1,483
1,867
TIF - Public Infrastructure
• A vacancy rate of 5% was used for rental houseing, retail, and office.
Project Phasing
Residential
# of Units
80
152
80
28
Mezzanine Loan (15%)
Equity (5%)
Other Sources:
• All open park / pedestrian walkways in our develpment site are owned
and operated by the developer, with the exception of the wetland park in
the middle area of the project. That parcel is deemed pubic and is
approx. 1 acre.
Income
$5,000,000.00 Sq. Ft. (% of Total)
23%
10.97%
9.88%
0.88%
0.88%
0.88%
0.88%
6.05%
9.42%
5.26%
18.51%
16.45%
21.34%
100%
2018
-
$
$
$
$
$
$
$
2019
-
$
$
$
$
$
$
$
Terminal Value
-
$
7,600,361
$
6,262,697
$
8,385,751
$
7,640,710
$
-
$
-
$
-
$
-
$
$
$
$
$
$
$
7,950,905
530,995
1,468,157
2,476,210
2,864,507
611,036
(16,034,934)
$
$
$
$
$
$
$
10,192,342
984,464
2,268,303
3,188,120
2,950,443
801,013
(10,697,392)
$
$
$
$
$
$
$
11,350,907
1,689,997
2,336,352
3,283,763
3,038,956
1,001,838
(6,414,022)
$
$
$
$
$
$
$
12,453,765
2,320,930
2,406,443
3,382,276
3,130,125
1,213,992
(2,225,890)
$
$
$
$
$
$
$
12,827,378
2,390,558
2,478,636
3,483,745
3,224,028
1,250,412
12,827,378
$
$
$
$
$
$
$
13,212,199
2,462,274
2,552,995
3,588,257
3,320,749
1,287,924
13,212,199
$
$
$
$
$
$
$
13,608,565
2,536,143
2,629,585
3,695,905
3,420,372
1,326,562
13,608,565
$
$
$
$
$
$
$
14,016,822
2,612,227
2,708,472
3,806,782
3,522,983
1,366,358
14,016,822
$
$
$
$
$
-
$
$
$
$
$
$
$
140,168,221
26,122,268
27,084,724
38,067,817
35,229,827
13,663,585
140,168,221