Harborview Residences — development pro forma
"Synthetic sample project. Figures are internally consistent, not market data."

USES OF FUNDS,Amount,$/gross sf,% of total
Land acquisition,2800000.00,23.69,0.0754
Hard cost,25413000.00,215.00,0.6842
Hard cost contingency (5%),1270650.00,10.75,0.0342
Soft cost (22%),5870403.00,49.66,0.1580
Construction period interest,1789271.57,15.14,0.0482
Total development cost,37143324.57,314.24,1.0000

SOURCES OF FUNDS,Amount,% of total
Construction loan,23028861.23,0.6200
Sponsor equity,14114463.34,0.3800

OPERATING BASIS,Value
Net rentable area (sf),99288
Rent $/sf/yr,38.4
Vacancy,0.06
Opex $/sf/yr,11.85

STABILIZED OPERATIONS,Amount
Effective gross revenue,3583899.65
Operating expense,1176562.80
Net operating income,2407336.85

RETURNS,Value
Yield on cost,0.064812
Exit capitalisation rate,0.052500
Spread over exit cap (bps),123
Stabilised value,45854035.24
Development profit,8710710.67
Unlevered IRR,0.118154
Levered IRR,0.156919
Equity multiple,2.588

CASH FLOW,Year 0,Year 1,Year 2,Year 3,Year 4,Year 5,Year 6,Year 7
Unlevered,-37143324.57,2473538.61,2541560.93,2611453.85,2683268.83,2757058.72,2832877.84,57444692.13
Levered,-14114463.34,504570.97,572593.29,642486.21,714301.19,788091.08,863910.20,32446863.26