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EXHIBIT 2 <br />).r.0310)" <br />, �.. <br />EYSER M ASTON IiSSOCIATES., <br />ADVISORS IN PIJ&LIC/PRIVATE REAL ESTATE DEVELOPMENT <br />MEMORANDUM <br />ADVISORS IN: <br />Real Estate <br />To: <br />Judson Brown, Housing Division Manager <br />Affordable Housing <br />Economic Development <br />City of Santa Ana <br />BERKELEY <br />From: <br />Kathleen Head <br />eyser <br />A. JerryyKeyser <br />Timothy C. Kelly <br />Tim Bretz <br />Debbie M. Kern <br />David Doezema <br />Date: <br />September 7, 2018 <br />LOSANGeLES <br />Kathleen H. Head <br />James A. Rabe <br />Gregory D. Soo -Hoo <br />Subject: <br />Depot at Santiago: Permanent Loan Analysis <br />Kevin E. Engstrom <br />Julie L. Romey <br />SAN DIEGO <br />Paul C. Marra At your request, Keyser Marston Associates, Inc. (KMA) has completed a review of the <br />submittal from C&C Development Company, LLC and Orange Housing Development <br />Corporation (collectively "Developer") to increase the permanent loan for the Depot at <br />Santiago (Project). The following is a summary of our analysis: <br />BACKGROUND <br />The Developer has been working with the City of Santa Ana (City) over the past several <br />years to develop the Project. Prior to the start of construction in 2016, the Developer <br />submitted a pro forma for the Project, which identified $36.64 million in total <br />development costs. The Developer estimated that the Project's net operating income <br />(NO]) could support a $5.43 million permanent loan. In addition to a variety of other <br />funding sources, the City agreed to provide $3.0 million in financial assistance to the <br />Project. <br />Over the course of the construction period, the development costs have increased by <br />approximately $753,000. The Developer states that the cost increases are primarily due <br />to the following: <br />500 SOUTH GRAND AVENUE, SU ITE 1480, LOS ANGELES, CALIFORNIA 90071r PHONE 213.622.8095 <br />W W W.KEYSERMARSTON.COM <br />25C-7 <br />1809002:SA:TRB <br />19090.017.006 <br />