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HomeMy WebLinkAboutExhibit ATO: FROM: CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM Members of the Housing and Commercial Loan Committee DATE : SUBJECT: George N h, irecttdr Depart t of Community & Economic Development REFERENCES: BORROWER: ENCLOSURES: July 30th, 2021 8tl' Street Properties, LLC: Essence Miami FILE gth Street Properties LLC is a Florida Limited Partnership Company that was established in November 2005 and managed by the Nuri Dorra and Ingrid Dorra. Mr. Nuri Dorra has been a Real Estate Developer since 1975. His portfolio includes real estate development in Argentina and Florida. Mr. Dorra`s extensive experience includes the development of single family homes, townhouses, multi- family projects, hotel conversions and real estate rehabilitation. 8tl' Street Properties, LLC owns the three (3) lots that will become the new development, Essence Miami. PROJECT Essence of Miami will be a new 8-story mixed use development that will feature residential and commercial space. The development will be developed on three contiguous sites having a total of 25,563 sq. ft., located at 829 SW 8tR Street, in the Little Havana neighborhood . The project will provide eighty-eight (88) rental units, one and two bedrooms for low- income and workforce families and 590 sq. ft. of commercial space. The Project will contain fifty-seven (57) units of one bedroom, on bath and thirty-one (31) units of two bedrooms and one bath. All the units will be City -assisted for low-income families at 60% of AMI and workforce families at 100% of AMI. BACKGROUND On February 25, 2019, the Department of Housing and Community Development ("Department") issued a Request for Proposals ("RFP") in HOME Investment Partnerships Program ("HOME") funds; Community Development Block Grant ("CDBG") funds; State Housing Initiatives Partnership Program ("SHIP") funds; Affordable Housing Trust Funds ("AHTF") funds; and Miami Forever Bonds ("GOB") for the construction and rehabilitation financing of multifamily rental housing projects and homeownership projects. On June 10, 2021, the City Commission approved Resolution R-21-0222. The City Commission authorized the allocation in an amount not to exceed $5,000,000 from the proposed Tranche 2 Miami Forever Affordable Housing Limited Ad Valorem Bonds to the Project provided that the Developer fulfills all the terms and conditions to be set forth by the Department of Housing and Community Development and approved the Housing and Commercial Loan Committee, (HCD/HCLC). Pursuant to the Section 18-86 of the Code of the City of Miami, Florida, the Competitive Negotiation Methods and Procedures were waived by a 4/5t° vote of the City Commission. 8TH STREET .PROPERTIES, LLC 2 June 25, 2021 ESSENCE MIAMI BORROWER'S REQUEST The Borrower submitted a request for Bond funds in the amount of $5M to cover in part the total development cost of the proposed 88 unit mix use development targeting low income families at 60% of the area median income and workforce households at 100% of the area median income. DEPARTMENTAL RECOMMENDATION Based on the proposal provided by Borrower, the Department recommends allocation up to $5,000,000 in Miami Forever Bonds ("GOB") funds to 8`i' Street Properties, LLC for the development of Miami Essence project. Funding of GOB dollars shall be contingent on but not limited to the following teens and conditions. The following loan terns and conditions shall apply: 1. Project Financing: Evidence of the project securing a construction/permanent loan from Ocean Bank in the amount of no less than $14M acceptable to the Department of Housing and Community Development and the City Attorney's office. 2. Permitting: Evidence that project has secures full construction building permit from the City of Miami. 3. City Commission Approval: Subsequent approval of the project by the City of Miami Commission approval. 4. Use ofFunds: City funds will be used for construction hard costs. No City of Miami GOB funds shall be disbursed prior to evidence that all project financing as indicated herein has been secured. All project financing shall close simultaneously. 5. City Assisted Units: Eighty-eight (88) project units shall be assisted with GOB funds for low income and workforce households. 6. Maximum Rent. and Income Levels: Rents charged on City -assisted units are subject to Florida Housing Finance Corporation State Housing Initiatives Partnership ("SHJI'") program according to the income target proposed by the Borrower. The rent and income limits are published annually by the US Department of Housing and Urban Development ("HUD") and Florida Housing Finance Corporation ("FHFC"). 7. Affordability Period: an affordability period of 30 years will apply cornrnencing from the date the City approves the closeout of the project. 8. Loan Repayment & Interest Rate Terms: This is a deferred loan provided to the Borrower with no debt service payments required. The property must maintain the required affordability structure for a period of 30 years. Failure to comply with these requirements will result in the full repayment of principal and an agreed upon interest rate. Full repayment of principal is due at the 30-year maturity. 9. Draw Disbursements: The City shall not fund any draw request in an amount that exceeds the City's initial contribution percentage of the entire development cost of the project. 10. City Incurred Costs: Borrower understands and agrees that $10,000 of the GOB funds may be used by the City to cover costs incurred by the City on behalf of the project 11. Increase in Project Costs: If the project costs increase ten percent (10%) or more of the original budget, and the Borrower is not able to secure additional funding within 60 days before the project commencement, the project will be subject to recommendation to the Housing and Commercial Loan Conunittee for de -obligation of the project funding. 12. Retainage(s): Five percent (5%) of each draw request will be retained until the City has received as part of the close-out, at the Borrower's sole cost, a Final Cost Certification prepared by an independent certified public accountant, both in form and substance acceptable to the City. 8tu' STREET PROPERTIES, LLC 3 June 25, 2021 ESSENCE MIAMI 13. Commitment Fee: There will be a $5,000 commitment fee. 14. Eligible Project Costs: Eligible project costs will be effective from the date of environmental clearance. 15. Reporting Compliance: Borrower is subject to compliance reporting requirements in the process of construction and during the affordability period. 16. Development Benchmarks/Scope of Work: The project shall: (a) continence construction within six (6) months from the Effective Date] of the contract; (b) obtain all certificates of occupancy required for the project within 18 months from the Effective Date; and (c) have all project units rented within 12 months after the issuance of project's certificate(s) of occupancy, .but in no event later than 36 months from the Effective Date. 17. Insurance Requirements: Borrower shall obtain and furnish evidence of insurance coverage as the City may require in connection with the Project. 18. Affirmative Marketing Plan: Borrower shall provide an Affirmative Marketing Plan using HUD's approved form and report to the City annually on all actions taken to comply with said plan. Borrower shall comply with the requirements of the affordable housing notice to City Officials Ordinance #13491. 19. Lottery: Selection of eligible tenants shall be from the results of a tenant lottery, which shall be conducted with a representative of the City of Miami present. In addition, the project shall comply with the requirements of the City of Miami Ordinance #13645, Resident Preference. 20. Project Signage: Borrower shall furnish signage identifying the Project and shall acknowledge the contribution of the City by incorporating the seal of the City and the names of the City commissioners and officials in all documents, literature, pamphlets, advertisements, and signage, pemianent or otherwise. All such acknowledgments shall be in a form acceptable to the City and its costs should be covered under the City Incurred Cost line item. 21. De -obligation of Funds: The City may at its sole discretion de -obligate the funding approved herein, if by no later than six (6) months from the date of approval of the City funds, the Borrower has failed to close on all funding commitments represented herein 22. Discretionmy Action by Administration: Staff shall have the discretion to approve and, by way of Memorandum, authorize the City Manager to execute any and all documents needed to further the Project Completion, provided, however, that the lien position nor the project terns are not materially affected. 23. Compliance with Ordinance #13491 Notice to Residents, and Ordinance #13645 Resident Preference. 24. Compliance with the provisions of Davis Bacon Act, and regulations, as amended. 25. Project Default: If the City determines that the project is in default, the following conditions will apply: o The highest interest rate available under the law will be applicable for the funds disbursed from date of disbursement. • The Restrictive Covenant will remain as a restriction on the Project property throughout the Affordability Period; and o The hon-ower, project developer, managing partner(s) of the borrower and/or other individuals, principals and/or other entities as determined by the City will be debarred from receiving any City funding for a period of five (5) years. ill The "Effective Date" is the date on which the contract has been signed by the City Manager and attested to by the City Clerk. 8TH STREET PROPERTIES, LLC 4 June 25, 2021 ESSENCE MIAMI HOUSING AND COMMERCIAL LOAN COMMITTEE DECISION: Approved as Recommended by Staff Yes ❑ No ❑N/A (- To Include Additional Conditions or Restrictions Yes [ No (I N/A E. Disapproved Yes ❑ No ❑ N/A (1 To Include Further Action Yes ❑ No El N/A ❑ Specify any further action, conditions or restrictions: hairpersor%r Representae Stamp Date 8th Street Properties LLC Project Analysis: Essence Miami Market Risk The market risk for this project is low, given the scarcity of affordable rental units in the City of Miami for low-income residents. According to the City of Miami's 2014-2018 Consolidated Plan, city residents have not been able to keep up with the increasing high cost of living in the Miami area, as such 67% of city residents fit the low -to - moderate income category and nearly half of city households (46%) are cost -burdened. The proposed project is a new construction of 8-story multi -family building that will provide a total of a eighty eight (88) units. Fifty-seven (57) units will be one bedroom and one bath, 565-723 sq. ft., and eight (8) units will be two bedroom and one bath, 845-960 sq. ft. and twenty-three (23) units will be two bedroom and two bath, 845-960 sq. ft. Due to the limited number of new projects coming online at the same time and a medium size of the subject, it is anticipated that the project will generate a demand for is units that will result in the need to conduct a lottery of the applicants. The construction of this affordable rental building will contribute to alleviate the housing needs of the most disadvantaged residents and will contribute to the revitalization and stabilization of the area, which has been a priority redevelopment area for the City of Miami. Borrower Risk 8th Street Properties LLC is a Florida Limited Partnership Company that was established in November 2005 and managed by the Nuri Dona and Ingrid Dona. Mr. Nuri Dorra has been a Real Estate Developer since 1975. His portfolio includes real estate development in Argentina and Florida. Mr. Dora's extensive experience includes the development of single-family homes, townhouses, multi -family projects, hotel conversions and real rehab. Project Risk Essence of Miami will be a new 8-story construction, mixed use development on 829-845-847 SW 8th St vacant sites that will feature residential and commercial space. The development will be located on three contiguous sites total of 25,563 sq. ft. The project will provide eighty-eight (88) units, one and two bedrooms for low- income families and 590 sq. ft. of commercial space. The project will provide one hundred thirty-five (135) parking spaces, security system, high efficiency elevator, LED lighting, high efficiency appliances, community room and recreational facilities such as gym, solarium, outside deck area with BBQs, meeting room, retail office and front desk. The project will provide an affordable housing for very low, low and workforce income persons, ranging from 60% to 100% of the area median income. The borrower has provided the following financial structure: $4,000,000 (Equity); $5,000,000 (City of Miami -General Bond Funding); $14,000,000 (Ocean Bank). Total development cost of the project is $23,000,000. Based on the borrower's financial information the project is viable. 8th Street Properties, LLC-Essence Miami Vacancies are projected at 7% after the stabilization of the project. At this vacancy level the project is financially feasible, as shown in the attached Pro-Forina. Acquisition/Relocation Risk On February 25, 2019, the City of Miami issued a Request for Proposals ("RFP") inviting qualified private real estate developers to propose developments of Affordable/Workforce rental housing in the City of Miami. The goal of this application process is for the City of Miami to establish an Affordable Housing Development Pipeline intended to address the affordable housing needs. On June 10, 2021, the City Commission approved Resolution R-21-0222. The City Commission authorized the allocation in an amount not to exceed $5,000,000 from the proposed tranche 2 Miami Forever Affordable Housing Limited Ad Valorem Bonds to the Project provided that the Developer fulfills any and all of the terms and conditions to be set forth by the HCD/HCLC Approvals and fulfills all requirements in order to be in compliance with the Bond Strategies. Pursuant to the Section 18-86 of the Code of the City of Miami, Florida, the Competitive Negotiation Methods and Procedures were waived. Portfolio Risk The project is located in the City of Miami, District 3. The owner of the sites is 8th Street Properties, LLC. Project addresses objectives within the City of Miami's Consolidated Plan. The proposed development is for individuals and families with a gross annual income between thirty (60%) and one hundred (100%) percent of the Area Median Income (AMI) adjusted for family size. The City of Miami GOB funding will be used for development cost (hard costs). The project will yield 88 units. The project has a 30-year Affordability Period. The City's total average investment per unit is $56,818. The Principals have developed and managed a considerable number of units throughout Miami -Dade County and are currently in good standing. Development Budget: Land $4,000,000 Hard Cost $15,215,230 Soft Cost $3,784,770 Total Development Cost: $23,000,000 See attached the Budget - Cost Allocation. Project Information: Project Location: 829-845-847 SW 8th St 8th Street Properties, LLC-Essence Miami Area: 25,563 sq. ft. Number of Units: 88 Type of Unit: 1 bed/1 bath: 565-775 sq. ft. 2 bed/1 bath: 845-960 sq. ft. 2 bed/2 bath: 845-960 sq. ft. Commercial Space: 590 sq. ft. Amenities: Project amenities will include parking garage, community room and recreational facilities such as gym, solarium, outside deck area with BBQs, meeting room, retail office and front desk. Collateral Subordination: 1st Position- Ocean Bank in the amount of $14,000,000 2nd Position: GOB City of Miami in the amount of $5,000,000 Equity Investment funding in the amount of $4,000,000 Total Developer's Fee: $742,330 (4%) Project Feasibility: Bedrooms Baths No. of Units Unit Size (SF) Median Income % Max Gross HC Rents Max Net HC Rents Monthly Rents 1 1 12 565-775 60% $1017 $1017 $12,204 1 1 6 565-775 100% $1696 $1500 $9,000 1 1 31 565-775 100% $1696 $1600 $49,600 1 1 8 565-775 100% $1696 $1650 $13,200 2 1 or 2 6 845-960 60% $1221 $1221 $7,326 2 1 or 2 21 845-960 100% $2035 $1750 $36,750 2 1 or 2 4 845-960 100% $2035 $1775 $7,100 TOTAL: 88 $135,180 8th Street Properties, LLC-Essence Miami # Units Type of Bedrooms GOB Funds invested per unit Total Funds Invested 88 1 and 2 $56,818 $5,000,000 8th Street Properties, LLC-Essence Miami Agency: Project: Funding Source / Amount: Prep: Total Project City HOME City CDBG LISC Loan Surtax Loan Check Total Over/(Short) Loan Costs - - Title Insurance & Recording Loan Closing Costs Total Loan Costs - Land Hard Costs - - - - - - - - Construction Fencing and Gates Construction contingency Impact Fees Permits / Fees Constr Concrete Test WASA and Utility Fees Fire Fee Total Hard - Soft Costs - - - - - - - - - - - - - - Architect & Engineering Construction inspection/analysis Surveys Appraisal Insurance Const Period RE taxes Closing Costs (Buyers Interest Costs Legal Licenses / Environmental Interest (Absorbtion) Developer's Fees Misc & Contingency Total Soft - iTotal - - - - - - - - City of Miami - Department of Community Development COST ALLOCATION REPORT Financing Sources: Specify Name Total Project % City HOME Other: Ocean Bank Other: City of Miami Other: Other: Equity Investment Land Acquisition 4,000000 17% 4,000,000 Hard Costs 13,675,289 8,685,289 4,990,000 - Construction (incl. Site work) 59% Construction contingency 1,234,941 5% 1,234,941 - - Construction: Concrete/Soil Test 5,000 0% 5,000 - - Appliances - 0% - - - Construction Supervision 300,000 1% 300,000 - - Total Hard Costs 15,215,230 66% - 10,225,230 4,990,000 - Soft Costs 469,000 469,000 - - Arch Design, Civil Engineering 2% Impact & School Fees 434,829 2% 434,829 - - Permits / Fees 140,800 1% 140,800 - - Legal 100,000 0% 100,000 - - Licenses / Environmental / Util Fees 83,041 0% 83,041 - - Appraisal / Surveys 15,000 0% 15,000 - - Insurance: Construction Period 75,000 0% 75,000 - - Marketing / Advertising 50,000 0% 50,000 - - Loan Closing / Financing Fees 400,000 2% 400,000 - - Interest / Carrying Costs 850,000 4% 850,000 - - Title Insurance & Recording 127,000 1% 127,000 - - Taxes 50,000 0% 50,000 - - Construction Acctg 140,000 1% 140,000 - - For Use by City: City incurred costs 10,000 0% - 10,000 - Developer's Fees & Overhead 742,330 3% 742,330 - - Soft Cost Contingency 97,770 0% 97,770 - - Total Soft Costs 3,784,770 16% 3,774,770 10,000 Total Project Cost 23,000,000 100% - 14,000,000 5,000,000 4,000,000 Percent of City Funding to TDC Total Units Number of City Units Percent of City Units to Total Units City Subsidy Per Assisted Unit 6/22/2021 10:14 0% 88 88 1 #VALUE! Total Square Footage Total Cost per S/F 175000 5.71429E-06 Total Livable Area 74753 Total Livable Area of City Assisted Units 74753 Percent of City Area to Total 1 845 SW 8th Street t l `s `, xdu Rini'..:Me,$150 �Iant* annually ONE BEDROOMS 1A- 1BR/1 BA- 100%AMI 565 2 1,130 $1,500 $2.65 1B- 1BR/1 BA- 60% AMI 570 1 570 $1,017 $1.78 1C- 1BR/1 BA- 60% AMI 700 1 700 $1,017 $1.45 1C- 1BR/1 BA- 100% AMI 700 4 2,800 $1,500 $2.14 1D- 1BR/1 BA- 60% AMI 715 1 715 $1,017 $1.42 1D- 1BR/1 BA- 100% AMI 715 4 2,860 $1,600 $2.24 1E- 1BR/1 BA- 60% AMI 720 2 1,440 $1,017 $1.41 1E- 1BR/1 BA- 100% AMI 720 8 5,760 $1,600 $2.22 1F- 1BR/1 BA- 60% AMI 725 2 1,450 $1,017 $1.40 1F- 1BR/1 BA- 100% AMI 725 7 5,075 $1,600 $2.21 1G- 1BR/1 BA- 60% AMI 730 3 2,190 $1,017 $1.39 1G- 1BR/1 BA- 100% AMI 730 12 8,760 $1,600 $2.19 1H- 1BR/1 BA- 60% AMI 775 2 1,550 $1,017 $1.31 1H- 1BR/1 BA- 100% ami 775 8 6,200 $1,650 $2.13 1 BR TOTALS 723 57 41,200 $1,473.75 $2.04 TWO BEDROOMS 2A- 2BR/1BA- 60% AMI 845 2A- 2BR/2BA- 100% AMI 845 2B- 2BR/2BA- 100% AMI 900 2C- 2BR/28A- 60% AMI 940 2C- 2BR/2BA- 100% AMI 940 2D- 2BR/1BA- 60% AMI 950 2D- 2BR/2BA- 100% AMI 950 2E- 2BR/2BA- 60% AMI 960 2E- 2BR/1BA-100% AMI 960 2 BR TOTALS 903 3 2,535 $1,221 $1.44 9 7,605 $1,750 $2.07 4 3,600 $1,775 $1.97 1 940 $1,221 $1.30 4 3,760 $1,750 $1.86 1 950 $1,221 $1.29 4 3,800 $1,750 $1.84 1 960 $1,221 $1.27 4 3,840 $1,750 $1.82 31 27,990 $1,650.84 $1.83 3 $3,000 $36,000 $1,017 $12,204 $1,017 $12,204 $6,000 $72,000 $1,017 $12,204 $6,400 $76,800 $2,034 $24,408 $12,800 $153,600 $2,034 $24,408 $11,200 $134,400 $3,051 $36,612 $19,200 $230,400 $2,034 $24,408 $13,200 $158,400 $84,004 $1,008,048 $3,663 $43,956 $15,750 $189,000 $7,100 $85,200 $1,221 $14,652 $7,000 $84,000 $1,221 $14,652 $7,000 $84,000 $1,221 $14,652 $7,000 $84,000 $51,176 $614,112 845 SW 8th Street REVENUE Multifamily Rental Income 1 BD/1 BA 2 BD/2 BA Subtotal Thal '7otaf i;pk 5t+ Uifs Atg R¢Xt .> 41,200 57 $1,474 27,990 31 $1,651 69,190 88 $1,536 Other Income Parking & Storage Water & Sewer ReBill + Trash Valet Other Income Subtotal GROSS REVENUE MULITFAMILY Less: Multifamily Vacancy EFFECTIVE GROSS MULTIFAMILY EXPENSES Real Estate Taxes Property Insurance Payroll R&M/Contract Services General & Admin Trash Water & Sewer Electric Gas Marketing Management Fee Reserves MULTIFAMILY EXPENSES NET INCOME $568 $740 $600 $1,908 6% $/PSF $/Unit $3.97 $3,105 $0.89 $700 $1.91 $1,500 $0.78 $610 $0.64 $500 $0.24 $185 $0.48 $380 $0.60 $475 $0.17 $136 $0.50 $392 $0.71 2.75% $0.32 $250 $11.20 $8,807 4s44'Iows rs r C hffaws Annually Monthly Por.Unit $1,008,048 $614,112 $2.04 $1.83 $17,685 $19,810 $1,622,160 I $1.95 I $18,433.64 $50,000 $65,120 $52,800 $0.06 $0.08 $0.06 $568 $740 $600 $167,920 $0.20 $1,908 '19.0,080 $2.16 „ .$20,642 -$107,405 -$1.55 y6$2,675 -$1,221 Total $/PSF $/Unit $274,499 $61,600 $132,000 $53,680 $44,000 $16,280 $33,440 $41,800 $12,000 $34,498 $49,227 $22,000 $3.97 $0.89 $1.91 $0.78 $0.64 $0.24 $0.48 $0.60 $0.17 $0.50 $0.71 $0.32 $3,119 $700 $1,500 $610 $500 $185 $380 $475 $136 $392 $559 $250 $775,024 $11.20 $8,807 $907,6 $10,314 845 SW 8th Street Occupied Revenue Units Physical Occupancy % Avg. Street Rent / Unit Avg. Street Rent / SF Rent Growth Vacancy Factor Expense Growth Multifamily 1 BD/1 BA 2 BD/2 BA Gross Potentual Rent- Multifamily Garage & Storage Water & Sewer ReBill Other Income Other Income Multifamily GROSS REVENUE MULITFAMILY Less: Multifamily Vacancy EFFECTIVE GROSS MULTIFAMILY EXPENSES Real Estate Taxes Property Insurance Payroll R&M/Contract Services General & Admin Trash Water & Sewer Electric Gas Marketing Management Fee Reserves MULTIFAMILY EXPENSES NET INCOME 7% $3.97 $0.89 $1.91 $0.78 $0.64 $0.24 $0.48 $0.60 $0.17 $0.50 $0.71 $0.32 $3,181.69 $714.00 $1,530.00 $622.20 $510.00 $188.70 $387.60 $484.50 $139.09 $399.86 3% $255.00 88 94% $1,536 $1.95 2.00% 6.00% 2.00% 88 94% $1,567 $1.99 2.00% 6.00% 2.00% ear 6 Year 6 " Year 7 '' 1fear >3 Year 6 Year 10 eat Year, 4< Yea 6 ; Year+ 6 Year 7 Year 0 88 94% $1,598 $2.03 2.00% 6.00% 2.00% 88 94% $1,630 $2.07 2.00% 6.00% 2.00% 88 94% $1,663 $2.11 2.00% 6.00% 2.00% 88 94% $1,696 $2.16 2.00% 6.00% 2.00% 88 94% $1,730 $2.20 2.00% 6.00% 2.00% 88 94% $1,765 $2.24 2.00% 6.00% 2.00% $1,008,048 $1,028,209 $1,048,773 $1,069,749 $1,091,144 $1,112,966 $1,135,226 $1,157,930 $614,112 $626,394 $638,922 $651,701 $664,735 $678,029 $691,590 $705,422 $1,622,160 $1,654,603 $1,687,695 $1,721,449 $1,755,878 $1,790,996 $1,826,816 $1,863,352 $50,000 $53,633 $54,706 $55,800 $56,916 $58,054 $59,215 $60,399 $65,120 $69,852 $71,249 $72,674 $74,128 $75,610 $77,122 $78,665 $52,800 $56,637 $57,770 $58,925 $60,104 $61,306 $62,532 $63,782 $167,920 $180,122 $183,724 $187,399 $191,147 $194,970 $198,869 $202,847 g$1000$0' $11$34.0 +41f8Y1t42U' $1905;848'= $1;9dYt625;` $1 J55,96G $2;0256116' $2066,109 -$107,405 -$110,084 -$112,285 -$114,531 -$116,822 -$119,158 -$121,541 -$123,972 s 41;9i ,$421'- $ ,-769i136`. $Ii7J$s41°1,':-_ ;$1,813,204:_. $ ;8661608..` $19041144<:._, `' $ ,942,22i. $274,499 $61,600 $132,000 $53,680 $44,000 $16,280 $33,440 $41,800 $12,000 $34,498 $49,227 $22,000 $279,989 $62,832 $134,640 $54,754 $44,880 $16,606 $34,109 $42,636 $12,240 $35,187 $47,428 $22,440 $285,589 $64,089 $137,333 $55,849 $45,778 $16,938 $34,791 $43,489 $12,485 $35,891 $48,376 $22,889 $291,301 $65,370 $140,079 $56,966 $46,693 $17,276 $35,487 $44,358 $12,734 $36,609 $49,344 $23,347 $297,127 $66,678 $142,881 $58,105 $47,627 $17,622 $36,197 $45,246 $12,989 $37,341 $50,331 $23,814 $303,069 $68,011 $145,739 $59,267 $48,580 $17,974 $36,920 $46,151 $13,249 $38,088 $51,337 $24,290 $309,130 $69,372 $148,653 $60,452 $49,551 $18,334 $37,659 $47,074 $13,514 $38,850 $52,364 $24,776 $315,313 $70,759 $151,627 $61,661 $50,542 $18,701 $38,412 $48,015 $13,784 $39,627 $53,411 $25,271 SYY0 $78 4 $803,495; '$819,665' $835;986 $862,678' $869,729 $887,123 11002 $994,247 1;014-133" $,'110040415„ 11085,103 88 88 88 88 88 94% 94% 94% 94% 94% $1,800 $1,836 $1,873 $1,910 $1,948 $2.29 $2.33 $2.38 $2.43 $2.48 2.00% 6.00% 2.00% 2.00% 6.00% 2.00% 2.00% 6.00% 2.00% 2.00% 2.00% 6.00% 6.00% 2.00% 2.00% 88 94% $1,987 $2.53 2.00% 6.00% 2.00% 88 94% $2,027 $2.58 2.00% 6.00% 2.00% 88 94% $2,067 $2.63 2.00% 6.00% 2.00% 88 94% $2,109 $2.68 2.00% • 6.00% 2.00% 88 94% $2,151 $2.74 2.00% 6.00% 2.00% 88 94% $2,194 $2.79 2.00% 6.00% 2.00% Year22 Year23 Year`20 Year 21 88 94% $2,238 $2.85 2.00% 6.00% 2.00% 88 94% $2,283 $2.90 2.00% 6.00% 2.00% $1,181,089 $1,204,711 $1,228,805 $1,253,381 $1,278,449 $1,304,018 $1,330,098 $1,356,700 $1,383,834 $1,411,511 $1,439,741 $1,468,536 $1,497,906 $719,530 $733,921 $748,599 $763,571 $778,843 $794,419 $810,308 $826,514 $843,044 $859,905 $877,103 $894,645 $912,538 $1,900,619 $1,938,631 $1,977,404 $2,016,952 $2,057,291 $2,098,437 $2,140,406 $2,183,214 $2,226,878 $2,271,416 $2,316,844 $2,363,181 $2,410,444 $61,607 $62,840 $64,096 $65,378 $66,686 $68,020 $69,380 $70,768 $72,183 $73,627 $75,099 $76,601 $78,133 $80,238 $81,843 $83,480 $85,149 $86,852 $88,589 $90,361 $92,168 $94,012 $95,892 $97,810 $99,766 $101,761 $65,058 $66,359 $67,686 $69,040 $70,421 $71,829 $73,266 $74,731 $76,226 $77,750 $79,305 $80,892 $82,509 $206,904 $211,042 $215,262 $219,568 $223,959 $228,438 $233,007 $237,667 $242,420 $247,269 $252,214 $257,259 $262,404 j��iljtlY2h tf :�12147L566� 23615201- °` $21 $�1,25b ` 2 326 5 5! $2,3Y3,413 $2j420,801... $2,459,299 : $2 618,655 $2 559,058, $2,620 439 ." $2 612,845' ' -$126,451-8128,980-8131,560-8134,191-$136,875-$139,613 -8142,405 -8145,253 -8148,158 -$151,121. -$154,143 -$157,226 -$160,371 >.- '� 9e'(i0lt"ip . 020 d`9'3 $ i ..,� .._. '$ � � ';$2idfi$059 $2;102529 12;1440,5 t.."4'f5'1g'i52 ;$2;291;f109...$212'Y5,625", "'$2,521"0di $2,90',552= . $2;414;9i5-.. ;,.$2;463j213 '$2512,4YY',, $321,619 $72,174 $154,659 $62,895 $51,553 $19,075 $39,180 $48,975 $14,060 $40,419 $54,479 $25,777 4866 $328,052 $73,618 $157,752 $64,153 $52,584 $19,456 $39,964 $49,955 $14,341 $41,228 $55,569 $26,292 $334,613 $75,090 $160,907 $65,436 $53,636 $19,845 $40,763 $50,954 $14,628 $42,052 $56,680 $26,818 $341,305 $76,592 $164,125 $66,744 $54,708 $20,242 $41,578 $51,973 $14,920 $42,893 $57,814 $27,354 $348,131 $78,124 $167,408 $68,079 $55,803 $20,647 $42,410 $53,013 $15,219 $43,751 $58,970 $27,901 .080,257' $ 79 4 $355,094 $79,686 $170,756 $69,441 $56, 919 $21, 060 $43,258 $54,073 $15,523 $44,626 $60,150 $28,459 99�b? $362,196 $81,280 $174,171 $70,830 $58,057 $21,481 $44,123 $55,154 $15,834 $45,519 $61,353 $29,029 $369,440 $82,905 $177,655 $72,246 $59,218 $21,911 $45,006 $56,257 $16,150 $46,429 $62,580 $29,609 $376,828 $84,564 $181,208 $73,691 $60,403 $22,349 $45,906 $57,382 $16,473 $47,358 $63,831 $30,201 $384,365 $86,255 $184,832 $75,165 $61,611 $22,796 $46,824 $58,530 $16,803 $48,305 $65,108 $30,805 $392,052 $87,980 $188,529 $76,668 $62,843 $23,252 $47,761 $59,701 $17,139 $49,271 $66,410 $31,421 $399,893 $407,891 $89,740 $91,534 $192,299 $196,145 $78,202 $79,766 $64,100 $65,382 $23,717 $24,191 $48,716 $49,690 $60,895 $62,113 $17,482 $17,831 $50,256 $51,261 $67,738 $69,093 $32,050 $32,691 649 �7,18Ht 11260,946 $ r206,185 $1 11,880 $1,336,1 5 51964,909 Year `a�lr' 6 Yaa>` y Y� rr 8 Yaar'29 YaaN 3O 88 88 88 88 88 88 88 88 88 94% 94% 94% 94% 94% 94% 94% 94% 94% $2,328 $2,375 $2,422 $2,471 $2,520 $2,571 $2,622 $2,674 $2,728 $2.96 $3.02 $3.08 $3.14 $3.21 $3.27 $3.33 $3.40 $3.47 Z00% 2.00% 6.00% 6.00% 2.00% 2.00% 2.00% 6.00% 2.00% 2.00% 6.00% 2,00% 2.00% 6.00% 2.00% 2.00% 6.00% 2.00% Z00% 2.00% 6.00% 6.00% 2.00% 2.00% 2.00% 6.00% 2.00% $1,527,864 $1,558,422 $1,589,590 $1,621,382 $1,653,810 $1,686,886 $1,720,623 $1,755,036 $1,790,137 $930,789 $949,405 $968,393 $987,761 $1,007,516 $1,027,666 $1,048,219 $1,069,184 $1,090,568 $2,458,653 $2,507,826 $2,557,983 $2,609,143 $2,661,325 $2,714,552 $2,768,843 $2,824,220 $2,880,704 $79,696 $81,290 $103,796 $105,872 $84,160 $85,843 $267,652 $273,005 $82,916 $84,574 $86,265 $87,991 $89,750 $91,545 $93,376 $107,990 $110,150 $112,353 $114,600 $116,892 $119,229 $121,614 $87,560 $89,311 $91,097 $92,919 $94,777 $96,673 $98,606 $278,465 $284,034 $289,715 $295,509 $301,419 $307,448 $313,597 -$163,578 -$166,850 -8170,187-8173,591-8177,062-8180,604 -8184,216 -$187,900 -$191,658 1" aiget2fy'Z 0i 1426?1';',, tItigi$ e,IV321 M'Yi r. "$ ,629i45 .. $2y"NH$,04y,-ff $2 943 ttt' 7,$$otl02,a43=- $416,049 $93,365 $200,068 $81,361 $66,689 $24,675 $50,684 $63,355 $18,188 $52,287 $70,475 $33,345 $424,370 $95,232 $204,069 $82,988 $68,023 $25,169 $51,698 $64,622 $18,552 $53,332 $71,884 $34,012 $432,857 $97,137 $208,151 $84,648 $69,384 $25,672 $52,732 $65,914 $18,923 $54,399 $73,322 $34,692 $441,514 $99,080 $212,314 $86,341 $70,771 $26,185 $53,786 $67,233 $19,301 $55,487 $74,789 $35,386 u -$1j1`i11,$14$Mti nx:$4010,3b $'C 24211,) $450,345 $101,061 $216,560 $88,068 $72,187 $26,709 $54,862 $68,577 $19,687 $56,597 $76,284 $36,093 $459,352 $103,083 $220,891 $89,829 $73,630 $27,243 $55,959 $69,949 $20,081 $57,729 $77,810 $36,815 $468,539 $105,144 $225,309 $91,626 $75,103 $27,788 $57,078 $71,348 $20,483 $58,883 $79,366 $37,552 $477,909 $107,247 $229,815 $93,458 $76,605 $28,344 $58,220 $72,775 $20, 892 $60,061 $80,954 $38,303 $487,468 $109,392 $234,411 $95,327 $78,137 $28,911 $59,384 $74,230 $21,310 $61,262 $82,573 $39,069 ; all 0 ei;29011, 41041111219_,'::._$'1y344i6g3....,$1;3/944/5 , 506jta4y $1y6.4Yi6 $ _.. ii50y,$Lt1 1f$99,, 00.. $1)031004 , 845 SW 8th Street 1211/2021 12/1/2022 1211/2022' 12/ /2024 12/1/2025. 121112020 . ''.12/1/2021 �ear1 Yeer2 V 2r Vaal'4 /enrd Year ' .. VOA l Gross Potential Rent (Multi) $0 $0 $1,622,160 $1,654,603 Plus: Other lncome $0 $0 $167,920 $180,122 Less: Vacancy/Collection Loss $0 $0 -$107,405 -$110,084 GROSS REVENUE MULITFAMILY $0 $0 $1,682,675 $1,724,642 Mulitfamily Expenses TOTAL EXPENSES $0 $0 $0 $0 $775,024 $775,024 $787,740 $787,740 $1,687,695 $183,724 -$112,285 $1,759,135 $803,495 $803,495 $1,721,449 $187,399 -$114,531 $1,794,317 $819,565 $819,565 $1,755,878 $191,147 -$116,822 $1,830,204 $835,956 $835,956 $1,790,996 $194,970 -$119,158 $1,866,808 $852,675 $852,675 12/4/2020 `' . 12/1/2020 Year VeerJO $1,826,816 $198,869 -$121,541 $1,904,144 $1,863,352 $202,847 -$123,972 $1,942,227 $869,729 $887,123 $869,729 $867,123 NET OPERATING INCOME $0 $0 $907,652 $936,902 $955,640 $974,752 $994,247 $1,014,132 $1,034,415 $1,055,103 Debt N/A N/A $754,395 $754,395 $754,395 $754,395 $754,395 $754,395 $754,395 $754,395 DSCR N/A N/A 1.20 1.24 1.27 1.29 1.32 1.34 1.37 1.40 NCFADS $0 $0 $153,257 8182,507 $201,245 $220,357 $239,852 $269,737 $280,020 $300,708 N f;00210144ArfOn0btAO ilEeE; $n ` : $far 153,257,. _ , , s $1$2;507 $220j357,. "'$230$022 -:!.,.'$259,'37, $200020. ``:$300,700 DEVELOPMENT BUDGET PRO ECT COSTS Land Costs Hard Costs Professional Fees Property Taxes & Insurance Municipal Fees Interest Costs Closing Costs Working Capital Working Capital FF&E Equity City of Miami Grant Construction Loan .} I s`.t~tiNes lifiat T lyultIi t�N;:t;IigY 17.4% $ 65.2% $ 2.7% $ 1.1% $ 5.8% $ 3.9% $ 2.6% $ 0.4% $ 0.4% $ 0.4% $ 57.81 216.79 9.11 3.61 19.18 13.01 8.59 1.45 1.45 1.45 tl`ta1[ 45,455 170,455 7,159 2,841 15,083 10,227 6,750 1,136 1,136 1,136 7'ulnl CtstD_, $ 4,000,000 $ 15,000,000 $ 630,000 $ 250,000 $ 1,327,313 $ 900,000 $ 594,000 $ 100,000 $ 100,000 $ 100,000 3;O00,06';_ Return on Cost without Miami Grant Return on Cost with Miami Grant Miami 17.4% $ 21.7% $ 60.9% $ osts),SK 57.81 $ 72.26 $ 202.34 Rounded: $ 23,000,000 'faih/unit &WINO'Mb 45,454.55 $ 56,818 $ 159 091 $ 4,000,000 5,000,000 14 000 000 i$l ...... z. .. . 263.40 L3,000t0tf0 3.95% 4.65% 5.04% 6.26% *DEVELOPMENT SCHEDULE Scope of Work Estimated Date Actual Date Closing on Total Project Financing by Source Month/Year Month/Year a. b. c. d. Finalize Partnership 6/2020 Selection of Architect 8/2020 Appraisal/Market Study 10/2020 Engineering Report 12/2020 Architectural Plans and Specifications 12/2020 City or County Environmental Clearance 512021 Site Plan Approval 6/2021 Working Drawings Completed 3/2021 Submit Drawings for Permit Approval 4/2021 Construction Bids 6/2021 Selection of General Contractor 7/2021 Building Permits Issued 4/2022 Start of Construction 9/2021 Construction Completion @ 40% 5/2022 Construction Completion @ 80% 11/2022 Construction Completed - C.Q. 5/2023 Rentals— 90% Occupancy 9/2023 Temporary/Permanent Relocations NIA *Not limited to format or detail but must include these items.