Crosswinds Apartments

OFFERING MEMORANDUM | Crosswinds Apartments

HISTORICAL & PRO FORMA CASH FLOW

PRO FORMA FOOTNOTES (1)

PMR: Pro forma rents brought to the 2022 LIHTC net max allowable for Chesapeake City County in the VA Beach-Norfolk MSA. Rental limit has risen 10.65% over the prior year. (2) Loss to Lease: 0% of PMR. (3) Vacancy: 1% of PMR YoY. (4) Concessions: Burned off. (5) Collection Loss / Bad Debt: 0.16% of PMR YoY. (6) Expense Reimbursements: Fuel, water, and sewer reimbursement of 98%; T12 average inflated 3%. (7) Other Residential Income: Misc. income of $29k removed; adjusted T3 average inflated 3%. (8) Repair & Maintenance: Underwritten at $650/unit; inflated 3% YoY. (9) Contract Services: T12 average; inflated at 3% YoY. (10) Security Services: T12 average; inflated at 3% YoY. (11) Landscaping / Grounds: T12 average; inflated at 3% YoY. (12) Personnel: T12 average; inflated at 3% YoY. (13) Marketing / Advertising: T12 average; inflated at 3% YoY. (14) Admin: Underwritten at $250/unit; inflated at 3% YoY. (15) Electricity: T12 average; inflated at 3% YoY. (16) Fuel (Gas & Oil): T12 average; inflated at 3% YoY. (17) Water & Sewer: T12 average; inflated at 3% YoY. (18) Other Utilities: T12 average; inflated at 3% YoY. (19) Insurance: T12 average; inflated at 3% YoY. (20) Real Estate Taxes: Current tax bill inflated 2%. (21) Property Management Fee: Decreased to 3% of EGR. (22) Replacement Reserves: $275/unit.

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FINANCIAL ANALYSIS |