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7/28/2019 REAL 1005 Term Project Pro Forma
1/24
L U X U R Y L I V I N G
ELECTUS UNUS
Project
Highlights
90 Luxury Rental
Apartments
50 One
Bedrooms
40 Two
Bedrooms
Ground Level
Retail
Ideal Midtown
Manhattan
Location
890 East 54th Street,
New York, New York
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Page 2
EXECUTIVE SUMMARYElectus Unus is a luxury high-rise mixed-use development boasting 90 exceptional residential units and 2 street-level retail suites in the heart of Midtown Manhattan. The project construction will span one year followed by a
year of lease-up. Upon stabilization, the ownership entity Electus Unus LLC, will hold the property for an addi-
tional four years before reversion.Based on our investment projections, upon disposition, the investment will return an investment level IRR of 44%
with an NPV of $3,610,199. The developer, Rump International L.P., is the managing member and is searchingfor 3 equity investors. Equity in the amount of $2.225 million must be raised in exchange for limited memberownership stake in the single use entity Electus Unus, LLC. The equity will be dispersed in three increments:
The general partner will provide funds for the land deposit in the amount of 100K to secure the property immedi-ately, $1.3M to purchase and demo the existing property this year, and an additional down payment of $2.4 mil-lion for the equity portion of the construction costs as well as the closing costs affiliated with the permanentmortgage.
The deal will be structured with a 10% pari passu return split in the first tranche. Subsequently, the Sponsor willreceive 30% of the returns until the limited member achieve a return of 15%. Next, sponsor will receive 40% ofthe profits until the investors achieve a 20% return. Once the investor return is achieved, the remaining profitsare split evenly among the entity members.
ELECTUS UNUS LLC ENTITY INFORMATIONThe Developer and Investors will form a Limited Liability Company LLC by the name of Electus Unus LLC
for the sole purpose of entering into contract and, ultimately purchasing the property at 890 East 54th Street. TheLLC has been specifically chosen to be the ownership entity due to the following tax and liability advantages:
The investors liability is limited to the amount invested. The LLC is a pass-through entity. All gains/losses pass directly to the members, because an LLC is not a
taxable entity. An LLC incurs no double taxation (as in a C corporation). In general, an LLC insulates the members from potential liabilities arising out of the operation of the real es-
tate Because all assets inside an LLC are at risk, the single use LLC is used to limit liability to the amount invest-
ed in a single asset.
The developer will assume the role of managing member of the LLC. The equity investors will contribute as lim-ited members. All members will own a proportional share of the ownership entity. Because the LLC is a pass-through entity, all members will be taxed at their respective individual or entity level rates.
CONTENTSExecuve SummaryEnty InformaonInvestor SummaryMarket AnalysisProperty DescriponFloor PlanProject CostsTimelineInvestment BriefPro Forma Projecons
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I n v e s t o r S u m m a r y K e y R e t u r n s & R a t i o s
Electus Unus LLC Calculation of Internal Rate of Return and NPV
Year
0
1
2
3
4
56
IRR
NPV
Electus Unus LLC Key Ratios
Loan to Value ("LTV")
Mortgage/ Purchase Price 18,542,301$ 23,177,876$ = 80.0%
Cash on Cash Return (Pre-Tax)
(Pre-Tax Cash Flow/Initial Equity 744,225$ 2,560,336$ = 29.1%
Investment)
Cash on Cash Return (After Tax)
(After Tax Cash Flow/Initial Equity 578,500$ 2,560,336$ = 22.6%
Investment)
Gross Rent Multiplier ("GRM")
(Property Cost/Gross Rent Potential) 19,314,897$ 3,482,340$ = 5.55x
Debt Service Coverage
(NOI Annual/Debt Service) 2,370,907$ 1,537,331$ = 1.54xExpense Ratio
(Total Operating Expenses/Gross 1,045,386$ 3,482,340$ = 30.0%
Rent Potential)
Margin of Safety
(NOI - Debt Service) 2,370,907$ 1,537,331$ = 833,577$
Internal Rate of Return (After Tax) 43.53%
Net Present Value (After Tax) 3,610,199$
610,391
444,6816,697,458
January 1, 2013 (2,419,336)
Initial Equity
Investment
November 15, 2012
43.53%
Total Cash Flow
After Tax Cash Flow
Operations
3,610,199$
From Sale After Tax
Cash Flow
(141,000)
(2,419,336)
1,335,009
578,500
January 1, 2014
January 1, 2015
January 1, 2016
January 1, 2017December 31, 2018
(141,000)
1,335,009
578,500
610,391
444,681477,875 6,219,583
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Page 4
Development Brief
Electus Unus LLC proposes to purchase theland with a fire gutted building shell at 890E. 54th Street in Midtown Manhattan. Uponacquisition, the developer proposes demol-ishing the existing building and constructinga new mixed-use luxury high-rise structure inits place.
The developer has completed the due dili-gence process which includes the marketanalysis, structural inspection and develop-
ment of a financial model for the purpose ofthe decision to invest.
The land must be secured with a 10% depos-it by October 2012. The developer antici-pates closing on the property by Novemberof 2012. Demolition and pre-developmentdesign review will begin immediately afterclosing. Simultaneously, the constructionloan will be processed and secured by theend of December for 90% of the construc-
tion costs. The construction phase is sched-uled to be completed by end of year 2013, atwhich time lease-up will begin.
Property Description &
Amenities
The property is located in Midtown East Man-
hattan and boasts views of both the East River
and the Manhattan Skyline.
The property has a maximum allowable building
area of 98,000 square feet. Based on the pre-
development design review, the highest and best
use consists of 90 luxury apartment rentals and
2 30,000 square feet retail suites on the ground
floor. The unit mix will consist of 50 one-bedroom and 40 two-bedroom units.
The property will boast luxury amenities includ-
ing 24 hour doorman service, indoor swimming
pool, large gym and spa, banquet rooms, a roof-
top terrace, and business center with board
rooms.
FLOOR PLANS
MANHATTAN APARTMENT MARKET ANALYSIS As f inancing standards remain tight in the for-sale segment, and uncerta inty presides over the economy, an expanding renter pool will keep vacancies below prereces-
sion levels. Despite record-low interest rates, stringent underwriting standards and employment jitters are keeping many potential buyers sidelined. As the economy
grows at a tepid pace, households are hedging against any potential setbacks by renting versus taking on mortgage debt. Unce rtainty in the global economy will contin-
ue to drive foreign wealth and institutional investors to acquire core, trophy apartment assets in Manhattan. Due to the inte nse competition for this product type, first-
year returns will hover around 3 percent.
Employers will generate 95,000 positions in New York City this year, representing a 2.5 percent annual rate of growth. The pr ofessional and business services, along
with the education and health services sectors wi ll create the bulk of the new jobs in tha t time, while the f inancia l service s industry is on pace to lose additional work-
ers.In 2012, just over 2,700 market-rate units will hit the market, which is well above last years total of 1,700 apartments.
By year end, vacancy will fall below prerecession levels to 2.3 percent, representing a 20 -basis point improvement from the prior 12 months. In 2011, vacancy tumbled
120 basis points. At this point, it would be difficult to project vacancies falling much further than this near frictional rate.
Average asking rents will finish 2012 at $3,730 per month, up 1 percent from the preceding year. Effective rents will rise 1. 6 percent during this time to $3,615 per
month. Last year, asking rents increased 3 percent, while effective rents climbed 3.3 percent.Source: Marcus & Mil l ichap Manhattan Multifamily Research Report 2012 Q4
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P r o j e c t C o s tD e v e l o p m e n t P h a s e
Electus Unus LLC Development Budget
to
Total Cost SF Cost Equity Debt
Land Acquisition 10% 90%
Land Contract Deposit 100,000$ 1.02$ 10,000$ 90,000$
Land Cost: 900,000 9.18 90,000 810,000
Closing Costs: 60,000 0.61 6,000 54,000
Demo Costs: 350,000 3.57 35,000 315,000
Total 1,410,000 14.39 141,000 1,269,000
Construction Costs
Building CostsHard Costs: 14,700,000 150.00 1,470,000 13,230,000
Soft Costs: 1,470,000 15.00 147,000 1,323,000
Pre-Development Costs
Engineering, design, architects, fees and costs: 500,000 5.10 50,000 450,000
NYC plumbing, water stema connection permits: 75,000 0.77 7,500 67,500
Land, soil tests, environmental testing: 25,000 0.26 2,500 22,500
otal 16,770,000 171.12 1,677,000 15,093,000
Construction Loan
Construction Loan Interest: 1,024,897 10.46 102,490 922,407
Construction Loan Fees: 40,000 0.41 4,000 36,000
Lender's Legal Fees: 20,000 0.20 2,000 18,000Engineering Review: 10,000 0.10 1,000 9,000
Borrower's Legal Fees: 15,000 0.15 1,500 13,500
otal 1,109,897 11.33 110,990 998,907
TaxesConstruction Period Real Estate Taxes: 25,000 0.26 2,500 22,500
Construction Cost Total 17,904,897 182.70 1,790,490 16,114,407
Total Investment 19,314,897 197.09 1,931,490 16,114,407
November 15, 2012 December 31, 2013
Page 5
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Page 6
INVESTMENT BRIEF
The projections of cash flow are based on market conditions with the understanding that real estate is an inherently risky investment and may result in loss of principal.
The developer is projecting a 3% increase in gross rents over each year of the holding period. Expenses will also grow at 2% per annum. In accordance with lender
standards , the projects have been calculated with the assumption of 2% vacancy and credit loss for residential and 1% for commercial space.
The developer has secured permanent finance contingent upon certain terms and market conditions. These are the terms:
6.5% annual interest rate
25 year amortization
An LTV of 80%
Costs associated with mortgage in excess of $600,000 dollars
The loan will presumably be valued at 120% of the project costs. Furthermore, at an LTV of 80%, the risks associated with increases in vacancy rates are much higher
due to the smaller amount of equity placed in the property. In the other hand, given the market conditions, the higher leverage will allow the investors a greater return
on their investment.
Upon substantial completion of the construction phase of the development. The permanent mortgage will take out the construction loan. According to our projec-
tions, there will be a surplus of loan funds attributable to the valuation of the property at time T1. The surplus loan funds will be reinvested into the property during
the lease up year to offset any lease up vacancy deficiency. At year end of 2014, the funds will be distributed to the investors on a pari passu bases as is consistent with
the operating agreement for distribution of profits among the members.
As the pro forma analysis projections show, the returns on equity are projected to be quite substantial. Upon disposition at the end of year 5, the property is expected
to provide a internal rate of return equal to 43%. Needless to say this is an incredible return and we are pleased to present this opportunity to you.
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P r o F o r m a P r o j e c t i o n5 Y e a r P r o p e r t y P e r f o r m a n c e
Electus Unus LLC Performing Financial Projections
YEAR ENDING
Gross Potential Revenue:
1 Bedroom
2 Bedroom
Affordable 1-bedroomRetail
Total Potential Gross Income
Vacancy and Credit Loss:
ResidentialRetail
Total Vacancy Allowance
Effective Gross Income:
ResidentialRetail
Total Effective Gross Income
Operating ExpensesReal Estate axes
Total Operating Expenses
Net Operating IncomeNet Selling Price
Total Unlevered Cash Flow
Depreciation Expense
Perm. Mortage Interest Expense
Perm. Mortgage Costs
Perm. Mortgage Cost Balance
Mortgage Balance
Net Income (Before-Tax)
Net Proceeds From Sale
Total Levered Cashflow
Income Tax From OperationsTaxes on Sale
Net Income (Aft er-Tax)
Net Proceeds From Sale (After-Tax)
Leasing Commissions:
ResidentialRetail
otal Leasing Commissions
Depreciation Expense
Debt Amortization
Income From Take-Out MortgageEquity-after-tax Cash Flow
Income ax From Operations
axes on Sale
Equity-before-tax Cash Flow
1,158,894
1
December 31, 2014
360,000
(3,600)
(1,200,126)
(1,073,476)
(1,045,386)-
(62,447)(3,600)
(922,000)-
356,400
(922,000)
(68,237)
2,498,000
2,138,000360,000
18,542,301 18,247,568 17,932,313 17,595,108 17,234,424
(503,077)
(3,000) (3,000)
650,178
8,367,216
- - -
(109,900)
(3,000)
42
December 31, 2015
(650,178)
(1,242,598)
(69,430)
(25,154)
1,335,009
(649,500)
1,848,500
650,178
559,157
(25,000)
-
(69,850) (71,837)
(69,430)
(1,222,076)
(650,178)
(25,154)
(650,178)
1,848,500 2,370,907
- -
(624,500)
2,434,614 2,195,228 27,545,785
3,151,690356,400 356,400
25,282,970- -
3,416,293 3,508,090
343,249
- -
(63,034) (64,925) (66,873)
(25,154)
1,711,684
(66,034)
6,219,583
(120,137) (152,582)
(69,873)
(3,000)
120,137
- -
650,178
(195,705)
559,157
1,350,000$
1,680,000
360,00030,000
5
December 31, 2018
(1,132,209)(305,005)
(1,407,413)
(67,925)
(25,154)
650,178
(305,005)
(3,600)
3,246,241 3,343,628
(1,102,408)
2,434,614
3
32,782
(1,073,476)-
(64,320) (66,250)
(67,920)
December 31, 2017
360,000
1,417,229$ 1,459,745$ 1,503,538$
December 31, 2016
33,76530,900
3,482,340
1,766,955 1,819,963 1,874,562
31,827360,000
3,576,010 3,672,491
2,262,814
(1,151,533)
(650,178)
2,195,228
(1,176,647)
(650,178)
(1,437,213)
356,400
3,602,641 3,700,028
(1,711,684)
283,367
-
806,096
578,500 610,391
152,582-
-
195,705
564,818 8,561,724
165,725
744,225
(294,733) (315,255) (337,205) (360,684)
307,775 363,452 223,112
(165,725)
-
650,178
(64,198)
(3,000)(61,198)
(385,798)
1,335,009-
(106,900)
(2,560,336)
(2,560,336) 444,681 6,697,458
-
(3,600)
473,499(69,430)
(19,314,897)
(1,045,386)
3,059,893
(66,047)
(2,560,336)
473,499
2,370,907
7,931,267
343,249 435,950
(16,848,627)
(25,154)
3,771,8653,420,000
1,375,950$
1,715,490
360,000
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Page 8
INVESTMENT BRIEF
This
P r o F o r m a P r o j e c t i o nC a p i t a l S u m m a r y
Electus Unus LLC Capital Summary
IRR 31-Dec-12 31-Dec-13 31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 31-Dec-18
Project-Level Cash Flows
Construction Phase (Sale Yr. 1) 11% (18,793,407) 15,592,917 5,794,469 - - - -
Operational Phase 16% (19,171,147) 1,848,500 2,370,907 2,434,614 2,195,228 27,545,785
Both Phases (Sale Yr. 7) 10% (18,793,407) (3,578,229) 1,848,500 2,370,907 2,434,614 2,195,228 27,545,785
Debt Investor Cash Flows 7% (17,383,407) (133,997) 1,537,331 1,537,331 1,537,331 1,537,331 18,385,957
Equity-Entity-Level Cash Flows (EBTCF)
Construction Phase (1,410,000) (2,419,336) - - - - -
Operational Phase 1,335,009 744,225 806,096 564,818 8,561,724Both Phases 31% (1,410,000) (2,419,336) 1,335,009 744,225 806,096 564,818 8,561,724
Preferred-Partner-Level Cash Flows
Construction Phase - (2,250,000)
Both Phases 48% - (2,250,000) 1,173,194 654,018 690,900 378,713 6,003,693
Subordinated-Partner-Level Cash Flows
Construction Phase (141,000) (169,336)
Both Phases 59% (141,000) (169,336) 161,815 90,207 115,196 186,106 2,001,231
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Page 9
Electus Unus LLC Project Capital Structure Projections
Year Ending 31-Dec-12 31-Dec-13 31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 31-Dec-18
Project Cash Requirments as Proposed:
Site Acquisition 1,410,000Hard & Soft Development Costs - 17,904,897
Total Development Phase Cash Requirments (1,410,000) (17,904,897)
Development Phase Total Equity Funding 141,000 2,419,336
Development Phase Debt Funding
(Construction Loan) 17,383,407
Construction Loan Repayment (17,383,407)
Proposed Permanent Loan Amount (Take Out) 18,542,301Operating PBTCF 1,738,600 2,306,710 2,368,581 2,127,303 2,192,942
Reversion PBTCF 25,282,970
PBTCF 1,738,600 2,306,710 2,368,581 2,127,303 27,475,912
Permanent Mortgage Costs (25,154) (25,154) (25,154) (25,154) (528,231)Permanent Loan Debt Service (1,537,331) (1,537,331) (1,537,331) (1,537,331) (1,537,331)
Permanent Loan Repayment (16,848,627)Permanent Loan Debt CFs 1,537,331 1,537,331 1,537,331 1,537,331 18,385,957
Construction Loan Take-Out Balance 1,158,894 - - - -
Operating EBTCF 1,335,009 744,225 806,096 564,818 127,381Reversion EBTCF - - - - 8,434,343
EBTCF 1,335,009 744,225 806,096 564,818 8,561,724
Preferred Equity Capital Account
Preferred Return Allocation
Beginning Equity Investment Balance - - 2,250,000 1,076,806 422,788 - -
Annual Preferred Investment - 2,250,000 - - - - -Preferred Return Earned - - 1,173,194 654,018 690,900 378,713 6,003,693
Preferred Return Paid - - (1,173,194) (654,018) 268,112 (378,713) (6,003,693)
Accrued But Unpaid Preferred Return - - - - - - -
Ending Equity Investment Balance - 2,250,000 1,076,806 422,788 - - -
Reversion Preferred Allocations:
Allocation to Satisfy Preferred Return Requirment - - - - - - 5,744,436
Allocation to Return Subordinated Investment Requirement - - - - - - 2,186,831
P r o F o r m a P r o j e c t i o nC a p i t a l S t r u c t u r e P r o j e c t i o n s
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Page 10
INVESTMENT BRIEF
This
P r o F o r m a P r o j e c t i o nE q u i t y W a t e r f a l l S c h e d u l e
Electus Unus LLC Equity Waterfall Structure Schedule
Managing Member Equity Contribution 12.12%
Limited Member #1 Equity Contribution 29.29%
Limited Member #2 Equity Contribution 29.29%
Limited Member #3 Equity Contribution 29.29%
Total Equity Contribution Needed 100%
Yr 0 0 1 2 3 4 5 Split % Balance
NCF (141,000) (2,419,336) 1,335,009 744,225 806,096 564,818 8,561,724 8,561,724
All cash flow split pari passu until each member has 10% IRR
LM1 10.00% - (708,697) 391,065 218,006 230,300 - - 29% 8,561,724
LM2 10.00% - (708,697) 391,065 218,006 230,300 - - 29%
LM3 10.00% - (708,697) 391,065 218,006 230,300 - - 29%
GM 10.00% (141,000) (169,336) 161,815 90,207 115,196 23,800 - 12% 8,561,724
Sponsor receives 30% promoted interest until Investor receives 15% IRR
LM1 91,500 - 23%
LM2 91,500 - 23%
LM3 91,500 - 23%
GM 162,306 - 30%LM1 15.00% - (708,697) 391,065 218,006 230,300 91,500 - 8,561,724
LM2 15.00% - (708,697) 391,065 218,006 230,300 91,500 -
LM3 15.00% - (708,697) 391,065 218,006 230,300 91,500 -GM 21.91% (141,000) (169,336) 161,815 90,207 115,196 186,106 -
Total 16.37% (141,000) (2,295,426) 1,335,009 744,225 806,096 460,606 - 8,561,724
Sponsor receives 40% until Investor receives 20% IRR
LM1 34,738 92,800 20%
LM2 34,738 92,800 20%
LM3 34,738 92,800 20%GM 41,685 185,600 40%
LM1 20.00% - (708,697) 391,065 218,006 230,300 126,238 92,800 8,468,924
LM2 20.00% - (708,697) 391,065 218,006 230,300 126,238 92,800
LM3 20.00% - (708,697) 391,065 218,006 230,300 126,238 92,800GM 29.15% (141,000) (169,336) 161,815 90,207 115,196 186,106 185,600
Total 21.94% (141,000) (2,295,426) 1,335,009 744,225 806,096 564,818 464,000 8,004,924
Sponsor receives a 25% promote on all remaining cash flow
LM1 2,001,231 25%
LM2 2,001,231 25%
LM3 2,001,231 25%GM 2,001,231 25%
LM1 50% - (708,697) 391,065 218,006 230,300 126,238 2,001,231 8,004,924
LM2 50% - (708,697) 391,065 218,006 230,300 126,238 2,001,231
LM3 50% - (708,697) 391,065 218,006 230,300 126,238 2,001,231GM 59% (141,000) (169,336) 161,815 90,207 115,196 186,106 2,001,231
Total 52% (141,000) (2,295,426) 1,335,009 744,225 806,096 564,818 8,004,924 -
Com 53% (141,000) ( 2,295,426) 1,335,009 744,225 806,096 564,818 8,468,924 -
2,560,336
310,336$
750,000
750,000
750,000
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INVESTMENT BRIEF
This
P r o F o r m a P r o j e c t i o nS a l e P r o c e e d s a n d T a x C a l c u l a t i o n s
Electus Unus LLC Sales Proceeds and Tax Calculations
Calculation of Net Sales Proceeds
Net Operating Income As Per Year 6 2,129,092$
Terminal Cap Rate 8%
Estimated Selling Price 26,613,653Cost of Sale 1,330,683
Net Selling Price 25,282,970
Mortgage Costs Balance (503,077)
Mortgage Balance At Date Of Sale (16,848,627)Net Proceeds Pre-Tax 7,931,267
Taxes On Sale (1,711,684)
After-Tax Sales Proceeds 6,219,583
Calculation Of Tax On Gain on Sale
Net Sale Price 25,282,970Adjusted Basis (16,039,006)
Gain On Sale 9,243,964
Tax CalculationGain On Sale 9,243,964
Depreciation Recapture Tax 3,250,890 25% 812,723Capital Gain Tax 5,993,073 15% 898,961
1,711,684Total tax
5% of gross sale price
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Page 12
INVESTMENT BRIEF
This
S c h e d u l e o f d e p r e c i a t i o n
Electus Unus LLC Schedule of Depreciation
Land and Building CostAdding: Closing Costs
Demo Costs
Closing Costs
Land, Building, and Acquisition CostsLess: Cost of Land
Depreciable Basis
Recovery Period Years
Depreciation Per Year
Depreciation For 5 Year Holding Period
Schedule of Adjusted Basis
Original Cost Plus Acquisition CostsLess: Accumulated Depreciation
Adjusted Basis
60,000
Land
350,000
16,039,006
TotalBuilding
17,879,897(3,250,890)
18,879,897$
17,879,897
28
19,289,897
14,629,006
1,410,000-
1,410,000
(1,410,000)
410,000
650,178
19,289,897(3,250,890)
3,250,890
P r o F o r m a P r o j e c t i o n
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Page 13
INVESTMENT BRIEF
This
P r o F o r m a P r o j e c t i o nC o n s t r u c t i o n L o a n D r a w S c h e d u l e
Electus Unus LLC Construction Loan Draw Schedule
Construction LoanInterest Rate 10%
Retainage 10%
Months 12
Cumulative Interest
Date Draw Retainage Net Draw Draw Expense
Loan 17,383,407.04
1 2,172,926 217,293 1,955,633 1,955,633 16,297
2 2,172,926 217,293 1,955,633 3,911,267 32,594
3 2,172,926 217,293 1,955,633 5,866,900 48,891
4 2,172,926 217,293 1,955,633 7,822,533 65,188
5 1,241,672 124,167 1,117,505 8,940,038 74,500
6 1,241,672 124,167 1,117,505 10,057,543 83,813
7 1,241,672 124,167 1,117,505 11,175,047 93,125
8 1,241,672 124,167 1,117,505 12,292,552 102,438
9 1,241,672 124,167 1,117,505 13,410,057 111,750
10 1,241,672 124,167 1,117,505 14,527,562 121,063
11 1,241,672 124,167 1,117,505 15,645,066 130,376
12 1,738,341 1,738,341 17,383,407 144,862
Total: 19,121,748 1,738,341 17,383,407 1,024,897
December 31, 2013
March 31, 2013
April 30, 2013
May 31, 2013
June 30, 2013
July 31, 2013
August 31, 2013
September 30, 2013
October 31, 2013
November 30, 2013
December 31, 2012
January 31, 2013
February 28, 2013
17,383,407
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INVESTMENT BRIEF
This
P r o F o r m a P r o j e c t i o nL e a s e - U p Y e a r M a t r i x & R e n t R o l l
Electus Unus LLC Lease-up Year Matrix Schedule
1 2 3 4 5 6 7 8 9 10 11 12
Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 TotalRent Roll
1 Bedroom 27,500 27,500 62,500 62,500 62,500 75,000 75,000 97,500 100,000 105,000 112,500 117,500 925,000
2 Bedroom 31,500 31,500 80,500 80,500 80,500 98,000 98,000 129,500 133,000 140,000 140,000 140,000 1,183,000
Affordable 1-bedroom 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000
Retail 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 360,000
Total 91,500 91,500 175,500 175,500 175,500 205,500 205,500 259,500 265,500 277,500 285,000 290,000 2,498,0002014
Electus Unus LLC Lease-up Year Rent Roll
Unit Unit Type Market Rent Actual Rent Lease From Lease To Next Lease Current Lease
R1 Retail $15,000/month $15,000/month 1-Jan-14 31-Dec-19 12.00 0.00
R2 Retail $15,000/month $15,000/month 1-Jan-14 31-Dec-19 12.00 0.00
1 1 Bedroom $2,500/month $2,500/month 1-Jan-14 31-Dec-14 12.00 0.00
2 1 Bedroom $2,500/month $2,500/month 1-Jan-14 31-Dec-14 12.00 0.00
3 1 Bedroom $2,500/month $2,500/month 1-Jan-14 31-Dec-14 12.00 0.00
4 1 Bedroom $2,500/month $2,500/month 1-Jan-14 31-Dec-14 12.00 0.00
5 1 Bedroom $2,500/month $2,500/month 1-Jan-14 31-Dec-14 12.00 0.00
6 1 Bedroom $2,500/month $2,500/month 1-Jan-14 31-Dec-14 12.00 0.00
7 1 Bedroom $2,500/month $2,500/month 1-Jan-14 31-Dec-14 12.00 0.00
8 1 Bedroom $2,500/month $2,500/month 1-Jan-14 31-Dec-14 12.00 0.00
9 1 Bedroom $2,500/month $2,500/month 1-Jan-14 31-Dec-14 12.00 0.00
10 1 Bedroo m $2,500/month $2,500/month 1-Mar-14 28-Feb-15 10.00 2.00
11 1 Bedroo m $2,500/month $2,500/month 1-Mar-14 28-Feb-15 10.00 2.00
12 1 Bedroo m $2,500/month $2,500/month 1-Mar-14 28-Feb-15 10.00 2.00
13 1 Bedroo m $2,500/month $2,500/month 1-Mar-14 28-Feb-15 10.00 2.00
14 1 Bedroo m $2,500/month $2,500/month 1-Mar-14 28-Feb-15 10.00 2.00
15 1 Bedroo m $2,500/month $2,500/month 1-Mar-14 28-Feb-15 10.00 2.00
16 1 Bedroo m $2,500/month $2,500/month 1-Mar-14 28-Feb-15 10.00 2.00
17 1 Bedroo m $2,500/month $2,500/month 1-Mar-14 28-Feb-15 10.00 2.00
18 1 Bedroo m $2,500/month $2,500/month 1-Mar-14 28-Feb-15 10.00 2.00
19 1 Bedroo m $2,500/month $2,500/month 1-Mar-14 28-Feb-15 10.00 2.00
20 1 Bedroo m $2,500/month $2,500/month 1-Mar-14 28-Feb-15 10.00 2.00
21 1 Bedroo m $2,500/month $2,500/month 1-Mar-14 28-Feb-15 10.00 2.00
22 1 Bedroo m $2,500/month $2,500/month 1-Mar-14 28-Feb-15 10.00 2.00
23 1 Bedroo m $2,500/month $2,500/month 1-Mar-14 28-Feb-15 10.00 2.00
24 1 Bedroo m $2,500/month $2,500/month 1-Jun-14 31-May-15 7.00 5.00
25 1 Bedroo m $2,500/month $2,500/month 1-Jun-14 31-May-15 7.00 5.00
26 1 Bedroo m $2,500/month $2,500/month 1-Jun-14 31-May-15 7.00 5.00
27 1 Bedroo m $2,500/month $2,500/month 1-Jun-14 31-May-15 7.00 5.00
28 1 Bedroo m $2,500/month $2,500/month 1-Jun-14 31-May-15 7.00 5.00
29 1 Bedroo m $2,500/month $2,500/month 1-Aug-14 31-Jul-15 5.00 7.00
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INVESTMENT BRIEF
This
P r o F o r m a P r o j e c t i o nR e n t R o l l ( c o n t i n u e d )
30 1 Bedro om $2,500/month $2,500/month 1-Aug-14 31-Jul-15 5.00 7.00
31 1 Bedro om $2,500/month $2,500/month 1-Aug-14 31-Jul-15 5.00 7.00
32 1 Bedro om $2,500/month $2,500/month 1-Aug-14 31-Jul-15 5.00 7.0033 1 Bedro om $2,500/month $2,500/month 1-Aug-14 31-Jul-15 5.00 7.00
34 1 Bedro om $2,500/month $2,500/month 1-Aug-14 31-Jul-15 5.00 7.00
35 1 Bedro om $2,500/month $2,500/month 1-Aug-14 31-Jul-15 5.00 7.00
36 1 Bedro om $2,500/month $2,500/month 1-Aug-14 31-Jul-15 5.00 7.00
37 1 Bedro om $2,500/month $2,500/month 1-Aug-14 31-Jul-15 5.00 7.00
38 1 Bedro om $2,500/month $2,500/month 1-Sep-14 31-Aug-15 4.00 8.00
39 1 Bedro om $2,500/month $2,500/month 1-Oct-14 30-Sep-15 3.00 9.00
40 1 Bedro om $2,500/month $2,500/month 1-Oct-14 30-Sep-15 3.00 9.00
41 1 Bedro om $2,500/month $2,500/month 1-Nov-14 31-Oct-15 2.00 10.00
42 1 Bedro om $2,500/month $2,500/month 1-Nov-14 31-Oct-15 2.00 10.00
43 1 Bedro om $2,500/month $2,500/month 1-Nov-14 31-Oct-15 2.00 10.00
44 1 Bedro om $2,500/month $2,500/month 1-Dec-14 30-Nov-15 1.00 11.0045 1 Bedro om $2,500/month $2,500/month 1-Dec-14 30-Nov-15 1.00 11.00
46 Affordable 1-bedroom $0,500/month $500/month 1-Jan-14 31-Dec-14 12.00 0.00
47 Affordable 1-bedroom $0,500/month $500/month 1-Jan-14 31-Dec-14 12.00 0.00
48 Affordable 1-bedroom $0,500/month $500/month 1-Jan-14 31-Dec-14 12.00 0.00
49 Affordable 1-bedroom $0,500/month $500/month 1-Jan-14 31-Dec-14 12.00 0.00
50 Affordable 1-bedroom $0,500/month $500/month 1-Jan-14 31-Dec-14 12.00 0.00
51 2 Bedro om $3,500/month $3,500/month 1-Jan-14 31-Dec-14 12.00 0.00
52 2 Bedro om $3,500/month $3,500/month 1-Jan-14 31-Dec-14 12.00 0.00
53 2 Bedro om $3,500/month $3,500/month 1-Jan-14 31-Dec-14 12.00 0.00
54 2 Bedro om $3,500/month $3,500/month 1-Jan-14 31-Dec-14 12.00 0.00
55 2 Bedro om $3,500/month $3,500/month 1-Jan-14 31-Dec-14 12.00 0.0056 2 Bedro om $3,500/month $3,500/month 1-Jan-14 31-Dec-14 12.00 0.00
57 2 Bedro om $3,500/month $3,500/month 1-Jan-14 31-Dec-14 12.00 0.00
58 2 Bedro om $3,500/month $3,500/month 1-Jan-14 31-Dec-14 12.00 0.00
59 2 Bedro om $3,500/month $3,500/month 1-Jan-14 31-Dec-14 12.00 0.00
60 2 Bedro om $3,500/month $3,500/month 1-Mar-14 28-Feb-15 10.00 2.00
61 2 Bedro om $3,500/month $3,500/month 1-Mar-14 28-Feb-15 10.00 2.00
62 2 Bedro om $3,500/month $3,500/month 1-Mar-14 28-Feb-15 10.00 2.00
63 2 Bedro om $3,500/month $3,500/month 1-Mar-14 28-Feb-15 10.00 2.00
64 2 Bedro om $3,500/month $3,500/month 1-Mar-14 28-Feb-15 10.00 2.00
65 2 Bedro om $3,500/month $3,500/month 1-Mar-14 28-Feb-15 10.00 2.00
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INVESTMENT BRIEF
This
P r o F o r m a P r o j e c t i o nR e n t R o l l C o n t i n u e d
66 2 Bedroom $3,500/month $3,500/month 1-Mar-14 28-Feb-15 10.00 2.00
67 2 Bedroom $3,500/month $3,500/month 1-Mar-14 28-Feb-15 10.00 2.00
68 2 Bedroom $3,500/month $3,500/month 1-Mar-14 28-Feb-15 10.00 2.00
69 2 Bedroom $3,500/month $3,500/month 1-Mar-14 28-Feb-15 10.00 2.00
70 2 Bedroom $3,500/month $3,500/month 1-Mar-14 28-Feb-15 10.00 2.00
71 2 Bedroom $3,500/month $3,500/month 1-Mar-14 28-Feb-15 10.00 2.00
72 2 Bedroom $3,500/month $3,500/month 1-Mar-14 28-Feb-15 10.00 2.00
73 2 Bedroom $3,500/month $3,500/month 1-Mar-14 28-Feb-15 10.00 2.00
74 2 Bedroom $3,500/month $3,500/month 1-Jun-14 31-May-15 7.00 5.00
75 2 Bedroom $3,500/month $3,500/month 1-Jun-14 31-May-15 7.00 5.00
76 2 Bedroom $3,500/month $3,500/month 1-Jun-14 31-May-15 7.00 5.0077 2 Bedroom $3,500/month $3,500/month 1-Jun-14 31-May-15 7.00 5.00
78 2 Bedroom $3,500/month $3,500/month 1-Jun-14 31-May-15 7.00 5.00
79 2 Bedroom $3,500/month $3,500/month 1-Aug-14 31-Jul-15 5.00 7.00
80 2 Bedroom $3,500/month $3,500/month 1-Aug-14 31-Jul-15 5.00 7.00
81 2 Bedroom $3,500/month $3,500/month 1-Aug-14 31-Jul-15 5.00 7.00
82 2 Bedroom $3,500/month $3,500/month 1-Aug-14 31-Jul-15 5.00 7.00
83 2 Bedroom $3,500/month $3,500/month 1-Aug-14 31-Jul-15 5.00 7.00
84 2 Bedroom $3,500/month $3,500/month 1-Aug-14 31-Jul-15 5.00 7.00
85 2 Bedroom $3,500/month $3,500/month 1-Aug-14 31-Jul-15 5.00 7.00
86 2 Bedroom $3,500/month $3,500/month 1-Aug-14 31-Jul-15 5.00 7.00
87 2 Bedroom $3,500/month $3,500/month 1-Aug-14 31-Jul-15 5.00 7.0088 2 Bedroom $3,500/month $3,500/month 1-Sep-14 31-Aug-15 4.00 8.00
89 2 Bedroom $3,500/month $3,500/month 1-Oct-14 30-Sep-15 3.00 9.00
90 2 Bedroom $3,500/month $3,500/month 1-Oct-14 30-Sep-15 3.00 9.00
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INVESTMENT BRIEF
This
P r o F o r m a P r o j e c t i o n
Electus Unus LLC Permanent Loan Amortization Schedule
Compound Annual Rate: 6.75% Commitment Letter Charges: 185,423 Perm Loan Closing Fees: 185,423
Effective Annual Rate 6.963% Legal Fees: 60,000 Borrower's Legal Fees: 30,000
Periodic Rate 0.5625% Misc Costs: 30,000 Lender's Legal Fees: 20,000
Daily Rate 0.01849% Borrower's Costs: 70,000 Other Lender Fees: 48,000
CASH FLOW DATA
Event Start Date Amount Number Period
1 Loan 1
2 Payment 300 Monthly
AMORTIZATION SCHEDULE - Normal Amortization
Date Debt Service Interest Principal Balance
Loan 18,542,301
1 (128,111) (104,300) (23,810) 18,518,490
2 (128,111) (104,167) (23,944) 18,494,546
3 (128,111) (104,032) (24,079) 18,470,4674 (128,111) (103,896) (24,215) 18,446,252
5 (128,111) (103,760) (24,351) 18,421,902
6 (128,111) (103,623) (24,488) 18,397,414
7 (128,111) (103,485) (24,625) 18,372,789
8 (128,111) (103,347) (24,764) 18,348,025
9 (128,111) (103,208) (24,903) 18,323,121
10 (128,111) (103,068) (25,043) 18,298,078
11 (128,111) (102,927) (25,184) 18,272,894
12 (128,111) (102,785) (25,326) 18,247,568
Total (1,537,331) (1,242,598) (294,733)
13 (128,111) (102,643) (25,468) 18,222,100
14 (128,111) (102,499) (25,612) 18,196,48815 (128,111) (102,355) (25,756) 18,170,732
16 (128,111) (102,210) (25,901) 18,144,832
17 (128,111) (102,065) (26,046) 18,118,786
18 (128,111) (101,918) (26,193) 18,092,593
19 (128,111) (101,771) (26,340) 18,066,253
20 (128,111) (101,623) (26,488) 18,039,765
21 (128,111) (101,474) (26,637) 18,013,127
22 (128,111) (101,324) (26,787) 17,986,340
23 (128,111) (101,173) (26,938) 17,959,403
24 (128,111) (101,022) (27,089) 17,932,313
Totals (1,537,331) (1,222,076) (315,255)
December 31, 2015
(128,111)$
October 31, 2015
November 30, 2015
December 31, 2013
January 31, 2014 January 31, 2039
End Date
18,542,301$
2014
2015
January 31, 2014
December 31, 2013
February 28, 2014
March 31, 2014April 30, 2014
May 31, 2014
June 30, 2014
July 31, 2014
August 31, 2014
September 30, 2014
October 31, 2014
November 30, 2014
September 30, 2015
December 31, 2014
January 31, 2015
February 28, 2015March 31, 2015
April 30, 2015
May 31, 2015
June 30, 2015
July 31, 2015
August 31, 2015
P e r m a n e n t L o a n A m o r t i z a t i o n S c h e d u l e
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INVESTMENT BRIEF
This
P r o F o r m a P r o j e c t i o n
25 (128,111) (100,869) (27,242) 17,905,072
26 (128,111) (100,716) (27,395) 17,877,677
27 (128,111) (100,562) (27,549) 17,850,12828 (128,111) (100,407) (27,704) 17,822,424
29 (128,111) (100,251) (27,860) 17,794,564
30 (128,111) (100,094) (28,016) 17,766,548
31 (128,111) (99,937) (28,174) 17,738,374
32 (128,111) (99,778) (28,333) 17,710,041
33 (128,111) (99,619) (28,492) 17,681,549
34 (128,111) (99,459) (28,652) 17,652,897
35 (128,111) (99,298) (28,813) 17,624,084
36 (128,111) (99,135) (28,975) 17,595,108
Totals (1,537,331) (1,200,126) (337,205)
37 (128,111) (98,972) (29,138) 17,565,970
38 (128,111) (98,809) (29,302) 17,536,668
39 (128,111) (98,644) (29,467) 17,507,20040 (128,111) (98,478) (29,633) 17,477,568
41 (128,111) (98,311) (29,800) 17,447,768
42 (128,111) (98,144) (29,967) 17,417,801
43 (128,111) (97,975) (30,136) 17,387,665
44 (128,111) (97,806) (30,305) 17,357,360
45 (128,111) (97,635) (30,476) 17,326,884
46 (128,111) (97,464) (30,647) 17,296,237
47 (128,111) (97,291) (30,820) 17,265,417
48 (128,111) (97,118) (30,993) 17,234,424
Totals (1,537,331) (1,176,647) (360,684)
49 (128,111) (96,944) (31,167) 17,203,257
50 (128,111) (96,768) (31,343) 17,171,91551 (128,111) (96,592) (31,519) 17,140,396
52 (128,111) (96,415) (31,696) 17,108,699
53 (128,111) (96,236) (31,874) 17,076,825
54 (128,111) (96,057) (32,054) 17,044,771
55 (128,111) (95,877) (32,234) 17,012,537
56 (128,111) (95,696) (32,415) 16,980,122
57 (128,111) (95,513) (32,598) 16,947,524
58 (128,111) (95,330) (32,781) 16,914,743
59 (128,111) (95,145) (32,965) 16,881,778
60 (128,111) (94,960) (33,151) 16,848,627
Totals (1,537,331) (1,151,533) (385,798)
February 28, 2018March 31, 2018
April 30, 2018
May 31, 2018
June 30, 2018
July 31, 2018
Augus t 31, 2018
September 30, 2018
October 31, 2018
July 31, 2017
Augus t 31, 2017
September 30, 2017
October 31, 2017
November 30, 2017
December 31, 2017
January 31, 2018
November 30, 2018
December 31, 2018
2016
2017
2018
January 31, 2016
February 29, 2016
March 31, 2016April 30, 2016
May 31, 2016
June 30, 2016
July 31, 2016
Augus t 31, 2016
September 30, 2016
October 31, 2016
November 30, 2016
December 31, 2016
January 31, 2017
February 28, 2017
March 31, 2017April 30, 2017
May 31, 2017
June 30, 2017
A m o r t i z a t i o n S c h e d u l e ( c o n t i n u e d )
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This
A s s u m p t i o n s
Project
Project Entity: Electus Unus LLC
Address: 890 East 54th Street, New York, New York
Gross Building SqFt: 98,000 sf
Unit mix:
1 Bedroom 50 Units2 Bedroom 40 Units
Total Apartment Units 90 Units
Retail 2 Units
Affordable 1-bedroom
@ 9% /grsqft
@ 20% of m arket rent10% of one-bedrooms
Leasing
Residential Lease Term:
Retail Lease Term:
Lease ConcessionResidential Renewal Lease Increase: 3%
Leasing Commission Costs at Renewal:
Leasing Commissions:
Lease-up Year: to
Stabilization year: to
Operational year: toJanuary 1, 2016
January 1, 2014
January 1, 2015
December 31, 2014
December 31, 2015
December 31, 2018
0st Month Free
2% of effective gross income
72 Months
12 Months
5% of effective gross income
Market
Apartment:
1 Bedroom
2 Bedroom
Affordable 1-bedroom
Vacancy and Credit Loss 2%
Commercial:
Retail Space
Vacancy and Credit Loss 1%
$2,500/month
$500/month
$3,500/month
$15,000/month
P r o F o r m a P r o j e c t i o n
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INVESTMENT BRIEF
This
P r o F o r m a P r o j e c t i o nA s s u m p t i o n s ( c o n t i n u e d )
Loans
Construction Loan:
Construction Loan Closing Date
Construction Annual Rate 10%Construction Loan Draw: Term Percentage
4 Months 50%
7 Months 50%
1 Months 10%
Construction Loan Fees:
Lender's Legal Fees:
Engineering Review:
Borrower's Legal Fees:
Perm Loan: 80% LTV
Perm Loan Closing Date:
Perm Annual Rate 6.75%
Amortization 25 Years
Compound Period 12 (Monthly)
Commitment Letter Charges: 185,423
Legal Fees: $60,000
Misc Costs: $30,000
Borrower's Costs: $70,000
Perm Loan Closing Fees: 185,423
Borrower's Legal Fees: $30,000
Lender's Legal Fees: $20,000
Other Lender Fees: $48,000
$40,000.00
$20,000.00
$10,000.00
$15,000.00
December 31, 2013
1% of total perm loan
December 31, 2012
1% of total perm loan
90% of total construction costs
Tax
Federal Tax Rate: 35%
Capital Gain Tax Rate: 15%
Depreciation Term:
Depreciation Rate: 25%
Equity Deal
Preferred Return 10%
27.5 Years
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INVESTMENT BRIEF
This
P r o F o r m a P r o j e c t i o nA s s u m p t i o n s ( c o n t i n u e d )
Project
Project Entity: Electus Unus LLC
Address: 890 East 54th Street, New York, New York
Gross Building SqFt: 98,000 sf
Unit mix:
1 Bedroom 50 Units
2 Bedroom 40 Units
Total Apartment Units 90 Units
Retail 2 Units
Affordable 1-bedroom
@ 9% /grsqft
@ 20% of m arket rent10% of one-bedrooms
Leasing
Residential Lease Term:
Retail Lease Term:
Lease Concession
Residential Renewal Lease Increase: 3%
Leasing Commission Costs at Renewal:
Leasing Commissions:
Lease-up Year: to
Stabilization year: to
Operational year: toJanuary 1, 2016
January 1, 2014
January 1, 2015
December 31, 2014
December 31, 2015
December 31, 2018
0st Month Free
2% of effective gross income
72 Months
12 Months
5% of effective gross income
Market
Apartment:
1 Bedroom
2 Bedroom
Affordable 1-bedroom
Vacancy and Credit Loss 2%
Commercial:
Retail Space
Vacancy and Credit Loss 1%
$2,500/month
$500/month
$3,500/month
$15,000/month
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INVESTMENT BRIEF
This
P r o F o r m a P r o j e c t i o nA s s u m p t i o n s ( c o n t i n u e d )
Valuation
Valuation Multiple:
Sale Date:
Going-Out Cap Rate: 8%
Costs of Sale:
Hurdle Rate: 12%
120% of total cost of project
12/31/2018
5% of gross sale price
Building Costs
Hard Construction Costs: $150 pbsf
Soft Costs:
Construction Period: to
Pre-development Costs
Engine ering, desig n, archit ects , fe es and costs : $500,000
NYC plumbing, water stema conn ect ion permits: $75,000
Land, soil tests, en vironmental testing : $25,000
10% /Hard Costs
January 1, 2013 December 31, 2013
Land Acquisition
Acquisition Date:
Closing Costs:
Land Cost:
Land Contract Deposit 10%
Demo Costs: $350,000
November 15, 2012
6% of purchase price
$1,000,000
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INVESTMENT BRIEF
This
P r o F o r m a P r o j e c t i o nA s s u m p t i o n s ( c o n t i n u e d )
Expenses
Operating Expenses:
Lease-up YearStabilized year
Operating Expense Growth
Real Estate Taxes:
Land & Building
Tax Growth:
Stabilized Tax Rate 10.739%
Real Estate Tax Exemption:
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
100% 100% 70% 70% 50% 50%
Lease year
$25,000/annum
25% of EGI
30% of EGI
2%/annum
% of Exemption
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Electus Unus, LLC890 East 54th Street New
York, NY