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TABLE 1
<br />ESTIMATED DEVELOPMENT COSTS
<br />FIRST STREET APARTMENTS
<br />SANTA ANA, CALIFORNIA
<br />1. Property Assemblage Costs
<br />Property Acquisition Costs
<br />1
<br />93,654 Sf Land
<br />$48
<br />/Sf Land
<br />$4,500,000
<br />Relocation Costs
<br />r
<br />942,000
<br />Closing Costs
<br />3
<br />0.6% Purchase Price
<br />25,000
<br />Total Property Assemblage Costs
<br />$5,467,000
<br />II. Direct Costs
<br />4
<br />Remedial Work/Demolition
<br />3
<br />$550,000
<br />Off-site Improvements
<br />319,000
<br />On-site Improvements
<br />93,654 Sf Land
<br />$17
<br />/Sf Land
<br />1,628,000
<br />Residential Shell Costs
<br />81,218 Sf GBA
<br />$115
<br />/Sf GBA
<br />9,340,000
<br />Furnishings, Fixtures & Equipment
<br />76,000
<br />Contractor Fees / General Rqts
<br />14% Construction Costs
<br />1,580,000
<br />Construction Bonds
<br />2% Construction Costs
<br />226,000
<br />Contingency Allowance
<br />5% Other Direct Costs
<br />658,000
<br />Total Direct Costs
<br />81,218 Sf GBA
<br />$177
<br />/Sf GBA
<br />$14,377,000
<br />III. Indirect Costs
<br />Architecture, Engineering & Consulting
<br />10% Direct Costs
<br />$1,438,000
<br />Public Permits & Fees
<br />9
<br />69 Units
<br />$31,900
<br />/Unit
<br />2,201,000
<br />Taxes, Insurance, Legal & Accounting
<br />3% Direct Costs
<br />431,000
<br />Marketing & Leasing
<br />69 Units
<br />$1,700
<br />/Unit
<br />117,000
<br />Developer Fee
<br />6
<br />11% Eligible Basis
<br />2,000,000
<br />Contingency Allowance
<br />5% Other Indirect Costs
<br />309,000
<br />Total Indirect Costs
<br />$6,496,000
<br />IV. Financing Costs
<br />Interest During Construction
<br />Acquisition Loan Rl
<br />$3,743,000 Loan Amount
<br />4.70%
<br />Interest
<br />$440,000
<br />Acquisition Loan N2
<br />7
<br />$1,151,000 Loan Amount
<br />5.25%
<br />Interest
<br />151,000
<br />Predevelopment Loan
<br />$2,209,000 Loan Amount
<br />5.25%
<br />Interest
<br />290,000
<br />Construction Loan
<br />9
<br />$16,992,000 Loan Amount
<br />2.50%
<br />Interest
<br />446,000
<br />Financing Fees
<br />Acquisition Loan N1
<br />$3,743,000 Loan Amount
<br />1.00
<br />Points
<br />37,000
<br />Construction Loan
<br />$16,992,000 Loan Amount
<br />2.00
<br />Points
<br />340,000
<br />Permanent Loan
<br />$8,477,000 Loan Amount
<br />2.00
<br />Points
<br />170,000
<br />Operating Reserve
<br />3 Months Operating Exp / Debt
<br />Svc
<br />221,000
<br />TCAC Fees
<br />9
<br />71,000
<br />Total Financing Costs
<br />$2,166,000
<br />V. JTotal Development Costs
<br />69 Units
<br />$413,100
<br />/Unit
<br />$28,506,000
<br />3 Based on Developer estimate and supported by an appraisal prepared by Lidgard and Associates, Inc. on January 20, 2015.
<br />' 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 />a 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 />Filename: AMCAL 41516;PF_9%;trb 65A-55
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