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TABLE 1
<br />ESTIMATED DEVELOPMENT COSTS
<br />FIRST STREET APARTMENTS
<br />SANTA ANA, CALIFORNIA
<br />I.Property Assemblage Costs
<br />1
<br />Property Acquisition Costs93,654Sf Land$48/Sf Land$4,500,000
<br />2
<br />Relocation Costs942,000
<br />3
<br />Closing Costs0.6%Purchase Price25,000
<br />Total Property Assemblage Costs$5,467,000
<br />4
<br />II.Direct Costs
<br />3
<br />Remedial Work / Demolition$550,000
<br />Off-site Improvements319,000
<br />On-site Improvements93,654Sf Land$17/Sf Land1,628,000
<br />Residential Shell Costs81,218Sf GBA$115/Sf GBA 9,340,000
<br />Furnishings, Fixtures & Equipment 76,000
<br />Contractor Fees / General Rqts14%Construction Costs 1,580,000
<br />Construction Bonds2%Construction Costs 226,000
<br />Contingency Allowance5%Other Direct Costs 658,000
<br />Total Direct Costs81,218Sf GBA$177/Sf GBA$14,377,000
<br />III.Indirect Costs
<br />Architecture, Engineering & Consulting10%Direct Costs$1,438,000
<br />5
<br />Public Permits & Fees69Units$31,900/Unit2,201,000
<br />Taxes, Insurance, Legal & Accounting3%Direct Costs431,000
<br />Marketing & Leasing69Units$1,700/Unit117,000
<br />6
<br />Developer Fee11%Eligible Basis2,000,000
<br />Contingency Allowance5%Other Indirect Costs309,000
<br />Total Indirect Costs$6,496,000
<br />IV.Financing Costs
<br />Interest During Construction
<br />Acquisition Loan #1$3,743,000Loan Amount4.70%Interest$440,000
<br />Acquisition Loan #2$1,151,000Loan Amount5.25%Interest151,000
<br />7
<br />Predevelopment Loan$2,209,000Loan Amount5.25%Interest290,000
<br />8
<br />Construction Loan$16,992,000Loan Amount2.50%Interest446,000
<br />Financing Fees
<br />Acquisition Loan #1$3,743,000Loan Amount1.00Points37,000
<br />Construction Loan$16,992,000Loan Amount2.00Points340,000
<br />Permanent Loan$8,477,000Loan Amount2.00Points170,000
<br />Operating Reserve3Months Operating Exp / Debt Svc221,000
<br />9
<br />TCAC Fees71,000
<br />Total Financing Costs$2,166,000
<br />V.Total Development Costs69Units$413,100/Unit$28,506,000
<br />1 Based on Developer estimate and supported by an appraisal prepared by Lidgard and Associates, Inc. on January 20, 2015.
<br />2 Based on Developer estimate. Overland, Pacific & Culter, Inc. prepared a relocation plan on December 18, 2015, and estimated the relocation
<br />expenses at $865,000. The $77,000 in additional costs are assumed to be the estimated costs to implement the relocation plan.
<br />3 Based on Developer estimate.
<br />4 Estimates assume prevailing wage requirements will not be imposed on the Project.
<br />5 Based on Developer estimate. The estimate should be verified by City staff.
<br />6 This represents the maximum amount allowed by TCAC to be included in the Project's total development costs.
<br />7 The Developer provided an acquisition loan to the Project with a 10% interest rate. KMA contends that the maximum interest rate that should be
<br />charged on this loan is 5.25% which is equal the interest rate on the predevelopment loan.
<br />8 Includes debt on the 80% of the Tax Credit Equity that will not be funded during construction. Assumes a 16-month construction period with a 60%
<br />average outstanding balance and a 3-month absorption period with a 100% average outstanding balance.
<br />9 Includes a $2,000 application fee; $410/unit monitoring fee; and 4% of the gross Tax Credit proceeds for one year.
<br />Prepared by: Keyser Marston Associates, Inc.
<br />File name: AMCAL_4 15 16; PF_9% ; trb
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