Project Name Sponsor

Address 55 Broad

Timeline
Close on Land 1-Jan-08
Construction Period Begin 1-May-08
Construction Period End 1-Nov-11
Permanent Loan Take Out 1-Nov-11
Lease Up Begin 1-Oct-08
First Unit Completion Date 1-Nov-08
Begin Occupancy 1-Nov-08
Last Delivery Date 1-Feb-10
Stabilization Date 1-Nov-09
Sale Date 1-May-16

Unit Completion Schedule

# of Months From Const. start to first delivery 6
Units Complete/Month 20
# of Months to Complete 15.00
Completion/Month 6.67%

Lease-Up
Lease Up Rate/Month (Units) 20
Lease Up Absoption Rate/Month (%) 6.67%
# of Months prior to First Unit Completion that Lease Up begins 1

Equity Structure

Parternship Structure
Number of Parnters 3
Sponsor Sponsor
Capital Partner 1 CapInvestor 1
Capital Parnter 2 CapInvestor 2

Equity Tier 1 Pref

Tiered Structure

Benchmarks Input 0.00%

Sponsor 20.00% 20.00%

CapInvestor 1 40.00% 40.00%
CapInvestor 2 40.00% 40.00%
Debt

Predevelopment Loan

Predevelopment Loan Yes

Debt Amount $1,781,266

Length of Hold (Months) 4

interest Rate 8.00%

LTV 60.00%

Construction Loan
Construction Loan Yes

Debt Amount $73,876,903

Length of Hold (Months) 30

Interest Rate 7.50%

LTC 75.00%
Paydown Loan w/ NOI Yes

Cost

Cost Assumptions % of Total Total

Land Cost 10.00% $9,969,005
Soft Costs 30.70% $30,609,425
Hard Cst 59.30% $59,111,618
Total 100.00% $99,690,048

Breakdown
Total Land Acquisition and Title 10.00% $9,969,005
Total Due Diligence 0.10% $100,000
Total Legal 0.13% $125,000
Total Financing (Excluding Interest) 27.18% $27,093,359
Total Interest 10.73% $10,694,977
Total Taxes Insurance & HOA Fees 12.52% $12,483,139
Total Municipal Permits and Fees 2.25% $2,246,888
Total Architecture, Engineering & Survey 0.96% $960,000
Total Consultants 1.66% $1,650,000
Total Furniture, Fixtures & Equipment 0.42% $415,000
Total Marketing, Sales & Leasing Costs 0.15% $150,000
Total Misc. Soft Costs and Reserves (Excluding Lease-Up Income) 0.22% $220,800
Total Lease-Up Income (applied to project costs) -3.70% -$3,692,153
Total Owner/Developer Overhead Fees 3.81% $3,795,246
Total Contingency 2.88% $2,869,362
Total Hard Costs 30.70% $30,609,425
0.00%
Total Project Costs 100.00% $99,690,048

Financing Requirements % of Total Total

Construction Loan 74.11% $73,876,903

Equity 25.89% $25,813,145
Project Costs 100.00% $99,690,048

1st Year Stabilized Income

Gross Potential Income

Total Losses
Total Other Income
Effective Income

Payroll
Repairs & Maintenance
Administrative & Marketing
Utilities

Insurance
Property Taxes
Replacement Reserve
Managmenet Fee
Asset Managmenet Fee
Total Operating Expenses

NOI / CFBDS
Permenant Loan Debt Service
Cash Flow Available After Debt Service

Return on Costs (NOI / Project Costs)

Cash on Cash Return (CFADS / Equity)
Debt Service Coverage Ratio -
Revenue

Rent/Month $/Month # of Units

Studio 0 0
One Bed/One Bath $1,500.00 300
One Bed/One Bath/One Half Bath 0 0
Two Bed/Two Bath 0 0
Two Bed/Two Bath/One Half Bath 0 0
Three Bed/Two Bath 0 0
Three Bed/Two Bath/One Half Bath 0 0
Other 0 0
Other 0 0
Other 0 0
Other 0 0
Other 0 0
Other 0 0
Other 0 0
Other 0 0
Other 0 0
Other 0 0
Other 0 0
Total 1500 300

Avg Rent Average Rent Avg. Rent

Unit / Month Unit / Year SF / Month
$1,500 $18,000 $2.50

Rent Growth/Year
Auxillary Revenue Base Rent/Month # of Units
Parking Security Fee $0 0
Garage Parking $0 0
Storage $100 200
Water Income $0 0
Non-Refundable Deposits $0 0
Premium Line Items
Top Story $0 0
First Story $0 0
Courtyard, Convservation or Pond View $0 0
Pool View $0 0
Short Term Lease $0 0
Other $0 0
Other $0 0

Expenses
Use different expense levels for Lease-Up Period Yes
Expenses- (Lease-Up)
Fixed Expense Trends
Real Estate Taxes $100,000
Insurance $0.00
Common Area Utilities $30,000
Other $0.00
Other $0.00
Other $0.00
Variable Expense Trends
Management Fee (% of EGI) 2.00%
Asset Management Fee (% of EGI) 4.00%
Payroll $0.00
Repairs & Maintenance $550,000
Administrative & Marketing $0.00
Replacement Reserves $0.00
Utilities $0.00
Utilities Reimbursement $0.00
Other $0.00
Total Expenses (Without Management FEEs) $0.00

Expenses- (Stabilization) 1-Jan-08

Fixed Expenses Trends
Real Estate Taxes $150,000 0.00%
Insurance $0.00 0.00%
Common Area Utilities $40,000 0.00%
Other $0.00 0.00%
Other $0.00 0.00%
Other $0.00 0.00%
Variable Expenses Trends
Management Fee (% of EGI) 5.00% 5.00%
Asset Management Fee (% of EGI) 0.00% 0.00%
Payroll $100,000 0.00%
Repairs & Maintenance $0.00 0.00%
Administrative & Marketing $0.00 0.00%
Replacement Reserves $0.00 0.00%
Utilities $500,000 0.00%
Utilities Reimbursement $0.00 0.00%
Other $0.00 0.00%
Total Expenses (Without Management FEEs) $790,000

Sale
Sale Date 1-May-16
Terminal Cap Rate 7.00%
Sales Expense (Brokerage & Legal) 0.00%
Sale Price $109,350,824
Sales Cost $0
Depreciation Recapture Tax $0
Capital Gains Tax $0
Gross Sale Proceeds $109,350,824
Mortgage Balance ($69,727,439)
Net Sales Proceeds $39,623,384
Occupancy
Months in Between Lease Up and Occupancy 1
Occupancy/Month (Units) 20
Occupancy/Month (%) 6.67%
Number of Months to Stabilization From C/O 15.00

Stabilization
Stabilization Level 85%
# of Months Between Const. Start Date and Stabilization 18

Tier 3 IRR Tier 5

Tier 2 IRR Hurdle Hurdle Tier 4 IRR Hurdle Balance

5.00% 15.00% 25.00% Balance

20.00% 10.00% 30.00% 20.00%
40.00% 45.00% 35.00% 40.00%
40.00% 45.00% 35.00% 40.00%
 PSF Per Unit
$33.23 $33,230
$102.03 $102,031
$197.04 $197,039
$332.30 $332,300

$33.23 $33,230
$0.33 $333
$0.42 $417
$90.31 $90,311
$35.65 $35,650
$41.61 $41,610
$7.49 $7,490
$3.20 $3,200
$5.50 $5,500
$1.38 $1,383
$0.50 $500
$0.74 $736
-$12.31 -$12,307
$12.65 $12,651
$9.56 $9,565
$102.03 $102,031
$332.30 $332,300

PSF Per Unit

$246.26 $246,256
$86.04 $86,044
$332.30 $332,300
 SF Rent Total Rent/Year
$0 $0 $0
$1,000 $1,500 $450,000
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$1,000 $1,500 $450,000

Avg. Rent Average

Unit SF / Year Unit Size
$30.00 600

1-Jan-08 1-Jan-09 1-Jan-10 1-Jan-11 1-Jan-12 1-Jan-13

0% 5% 7% 5% 7% 5%
Total Rent
 $0 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%
$0 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%
$20,000 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%
$0 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%
$0 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%

$0 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%

$0 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%
$0 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%
$0 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%
$0 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%
$0 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%
$0 0.00% 0.00% 0.00% 2.00% 2.00% 2.00%

1-Jan-09 1-Jan-10 1-Jan-11 1-Jan-12 1-Jan-13 1-Jan-14 1-Jan-15

2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%

2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%

Return Analysis
Return Analysis
Unlevered Project IRR 7.61%
Levered Project IRR 17.89%
1-Jan-14 1-Jan-15 1-Jan-16
5% 5% 5%
 2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%

2.00% 2.00% 2.00%

2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%

1-Jan-16 1-Jan-17 1-Jan-18

2.00% 2.00% 2.00%

2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
5.00% 5.00% 5.00%
0.00% 0.00% 0.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%
2.00% 2.00% 2.00%