1
Exhibit 99.(b)(4)
ARROWTREE APARTMENTS ACTUAL
NET CASH FLOW 1/25/95- 1996
"HOLD SCENERIO" 5 YEARS ACTUAL ACTUAL 12/31/95 BUDGET PROJ PROJ
-------------------------------------------------------------------------------------------------
1993 1994 FISCAL YR YEAR 1 YEAR 2 YEAR 3
-------------------------------------------------------------------------------------------------
RENT POTENTIAL 775,440 808,740 843,640 877,860 904,196 931,322
% increase 3.00% 4.29% 4.32% 4.06% 3.00% 3.00%
+/- POTENTIAL (7,350) (27,917) (30,280) (32,902) (21,393) (18,911)
%increase 0.95% 3.45% 3.59% 3.75% 2.37% 2.03%
CONCESSIONS (38,712) (15,142) (5,452) (8,500) (9,042) (9,313)
% 4.99% 1.87% 0.65% 0.97% 1.00% 1.00%
VACANCY (58,029) (48,890) (35,691) (23,145) (45,210) (46,566)
% 7.48% 6.05% 4.23% 2.64% 5.00% 5.00%
DELINQUENT (16,118) 1,599 (1,134) (4,860) (2,125) (2,189)
% 2.37% -0.21% 0.14% 0.57% 0.25% 0.25%
- ---------------------------------------------------------------------------------------------------------------------------------
RENTAL INCOME 655,231 718,390 771,083 808,453 826,426 854,342
OTHER INCOME 43,465 32,470 22,014 23,828 24,543 25,279
% increase 3.00% -25.30% -32.20% 8.24% 3.00% 3.00%
SPECIAL OPERATIONS
% increase 2.00%
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME 698,696 750,860 793,097 832,281 850,969 879,622
- ---------------------------------------------------------------------------------------------------------------------------------
CONTROLLABLE COSTS 195,208 205,450 189,061 193,976 199,795 205,789
% increase 3.00% 5.25% -7.98% 2.60% 3.00% 3.00%
MANAGEMENT FEES 20,207 34,141 39,655 41,614 42,548 43,981
% increase 5.00% 68.96% 16.15% 4.94% 2.25% 3.37%
- ---------------------------------------------------------------------------------------------------------------------------------
UTILITIES 57,645 57,952 56,048 60,609 62,427 64,300
% increase 3.00% 0.53% -3.29% 8.14% 3.00% 3.00%
TAXES 101,643 94,107 81,782 84,960 89,208 93,668
% increase 5.00% -7.41% -13.10% 3.89% 5.00% 5.00%
INSURANCE 16,974 18,037 16,456 17,109 17,622 18,151
% increase 3.00% 6.26% -8.77% 3.97% 3.00% 3.00%
- ---------------------------------------------------------------------------------------------------------------------------------
OVERHEAD 176,262 170,096 154,286 162,678 169,258 176,119
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 391,677 409,687 383,002 398,268 411,601 425,890
- ---------------------------------------------------------------------------------------------------------------------------------
NET OPERATING INCOME 307,019 341,173 410,095 434,013 439,367 453,732
11.12% 20.20% 5.83% 1.23% 3.27%
DEF MAINT/CAP IMPV/Per Unit 500 94,442 177,026 128,753 57,695 57,000 58,710
% increase 3.00%
- ---------------------------------------------------------------------------------------------------------------------------------
NET CASH FLOW B/DEBT SERV 212,577 164,147 281,342 376,318 382,367 395,022
DEBT SERVICE PAID 0 (166,632) (166,632)
- ---------------------------------------------------------------------------------------------------------------------------------
NET CASH FLOW A/DEBT 212,577 (2,485) 114,710
ARROWTREE APARTMENTS
NET CASH FLOW
"HOLD SCENERIO" 5 YEARS PROJ PROJ
-----------------------------
YEAR 4 YEAR 5
-----------------------------
RENT POTENTIAL 959,261 988,039
% increase 3.00% 3.00%
+/- POTENTIAL (18,698) (19,063)
%increase 1.95% 1.93%
CONCESSIONS (9,593) (9,880)
% 1.00% 1.00%
VACANCY (47,963) (49,402)
% 5.00% 5.00%
DELINQUENT (2,254) (2,322)
% 0.25% 0.25%
- ------------------------------------------------------------
RENTAL INCOME 880,754 907,372
OTHER INCOME 26,037 26,819
% increase 3.00% 3.00%
SPECIAL OPERATIONS
% increase
- ------------------------------------------------------------
TOTAL INCOME 906,791 934,190
- ------------------------------------------------------------
CONTROLLABLE COSTS 211,963 218,322
% increase 3.00% 3.00%
MANAGEMENT FEES 45,340 46,710
% increase 3.09% 3.02%
- ------------------------------------------------------------
UTILITIES 66,229 68,216
% increase 3.00% 3.00%
TAXES 98,352 103,269
% increase 5.00% 5.00%
INSURANCE 18,695 19,256
% increase 3.00% 3.00%
- ------------------------------------------------------------
OVERHEAD 183,276 190,742
- ------------------------------------------------------------
TOTAL EXPENSES 440,579 455,773
- ------------------------------------------------------------
NET OPERATING INCOME 466,212 478,417
2.75% 2.62%
DEF MAINT/CAP IMPV/Per Unit 500 60,471 62,285
% increase
- ------------------------------------------------------------
NET CASH FLOW B/DEBT SERV 405,741 416,132
DEBT SERVICE PAID
- ------------------------------------------------------------
NET CASH FLOW A/DEBT
T-12 IS BASED ON 1995 PROPERTY TAX EXPENSE
2
ARROWTREE APARTMENTS
RATIOS/PER UNIT AND PER SQ FT COMPARISONS
"HOLD SCENERIO" 5 YEARS
ACTUAL
1/25/95- 1996
ACTUAL 12/31/95 BUDGET PROJ PROJ PROJ PROJ
--------------------------------------------------------------------------------
1994 FISCAL YR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
--------------------------------------------------------------------------------
RENT POTENTIAL LESS CONCESSIONS PER UNIT 580 613 635 654 674 694 715
RENT POTENTIAL INCREASE PER UNIT 23 19 20 20 21
RENT POTENTIAL LESS CONCESSIONS PER SQ.FT. $ 0.52 $ 0.55 $ 0.57 $ 0.59 $ 0.61 $ 0.63 $ 0.65
REVENUES/SQ.FT. $ 0.50 0.52 $ 0.55 $ 0.56 $ 0.58 $ 0.60 $ 0.62
EXPENSES PER UNIT 3,594 3,360 3,494 3,611 3,736 3,865 3,998
EXPENSES SQ.FT. $ 3.24 $ 3.03 $ 3.15 $ 3.26 $ 3.37 $ 3.49 $ 3.61
CONTROLLABLE EXPENSES PER UNIT 1,802 1,658 1,702 1,753 1,805 1,859 1,915
CONTROLLABLE EXPENSES PER SQ FT $ 1.63 $ 1.50 $ 1.54 $ 1.58 $ 1.63 $ 1.68 $ 1.73
OVERHEAD PER UNIT 1,492 1,353 1,427 1,485 1,545 1,608 1,673
OVERHEAD PER SQ FT $ 1.35 $ 1.22 $ 1.29 $ 1.34 $ 1.39 $ 1.45 $ 1.51
EXPENSE TO REVENUE RATIO 54.56% 48.29% 47.85% 48.37% 48.42% 48.59% 48.79%
NOI PER UNIT 2,993 3,597 3,807 3,854 3,980 4,090 4,197
DEF MAINT/CAP X PER UNIT 1,553 1,129 506 500 515 530 546
- ----------------------------------------------------------------------------------------------------------------------------------
CURRENT EFFECTIVE RENT RATE
BEGINNING "RENT ROLL" @ 1/1/96
SQUARE RENTAL RENT/ TOTAL TOTAL
UNIT TYPE NUMBER FEET RATE SQ FT SQ FT RENT
One-bdrm/One Bth 9 690 470 $ 0.68 6,210 $ 4,230
One-Bdrm/One Bth 18 866 500 $ 0.58 15,588 $ 9,000
Two-Bdrm/One1/2Bth 29 1,098 605 $ 0.55 31,842 $17,545
Two-Bdrm/One1/2Bth 22 1,200 705 $ 0.59 26,400 $15,510
Three-Bdrm/One & 2-1/2's Bth 1 1,300 725 $ 0.56 1,300 $ 725
Three-Bdrm/One & 2-1/2's Bth 7 1,222 695 $ 0.57 8,554 $ 4,865
Three-Bdrm/One & 2-1/2's Bth 28 1,300 760 $ 0.58 36,400 $21,280
TOTAL 114
WEIGHTED AVE 1,108 $642 $ 0.58 126,294 $ 73,155 per mth
$877,860 per year
3
ARROWTREE APARTMENTS S/(U) S/(U) S/(U) S/(U)
SOURCES & USES OF CASH FLOW DUE TO OF CASH OF CASH OF CASH OF CASH
"HOLD SCENERIO" 5 YEARS CLOSING YR 1 YR 2 YR 3 YR 4
-------------------------------------------------------------------------
Test Scales 1 2 3 4
Second Funding Test N N N N
D/S "a" Test Multiplyer 0 0 0 0
D/S "b" Test Multiplyer 1 1 1 1
Counter "a" w/"b" 0 0 0 0
Counter "b" Test 12 12 12 12
Counter "Current" 0 0 0 0
Counter "a" w/current 12 0 0 0
Counter "Sale" Test 12 12 12 12
NET OPERATING INCOME 434,013 439,367 453,732 466,212
DEFERRED MAINTENANCE/CAPITAL IMPVMNTS (57,695) (57,000) (58,710) (60,471)
OTHER EXPENSES & GENERAL RESERVES 100 (11,400) (11,742) (12,094) (12,457)
NEW MORTGAGE IN YEAR 2,750,000 0 0 0 0
COST OF REFINANCE (67,021) 0 0 0 0
DEBT SERVICE 1a 0 0 0 0
DEBT SERVICE 1b (214,555) (232,325) (232,325) (232,325)
ESCROWS DUE AT CLOSING (71,111) 59,235 0
MORTGAGE BALOON - PAYOFF 1a 0 0 0 0
MORTGAGE BALOON - PAYOFF 1b 0 0 0 0
MORTGAGE - DEBT
MORTGAGE BALOON - PAYOFF (1,476,745)
ADD'L CASH FLOWS DUE
SALE OF PROPERTY IN YEAR 0 0 0 0
COST OF SALE IN YEAR 0 0 0 0
ADDITIONAL RESERVE (286,142)
PROJECTED DEVELOPMENT COSTS
ACCRUED PROPERTY TAXES @ 10/95 (33,407)
TAX ESCROW AS OF 10/95 55,332
ESTIMATED CASH @ 12/95 70,840
ESTIMATED REPLACEMENT RESERVE CASH @ 12/95 110,000
ACCOUNTS PAYABLE @ 10/95 (7,374)
-------------------------------------------------------------------------
SUBTOTAL - NET CASH FLOW 1,245,123 (5,704) 138,301 150,603 160,959
-------------------------------------------------------------------------
REFI/SALES FEES DUE HFGI 1.00% 5.00% (27,500) 0 0 0 0
ADD'L PARTNERSHIP FUNDS DUE 0 5,704 0 0 0
ADD'L PARTNERSHIP FUNDS REPAID 0 0 (5,704) 0 0
-------------------------------------------------------------------------
CASH FLOW FROM PROPERTY OPERATIONS 1,217,623 0 132,597 150,603 160,959
-------------------------------------------------------------------------
ARROWTREE APARTMENTS S/(U) S/(U) S/(U) S/(U) S/(U) S/(U)
SOURCES & USES OF CASH FLOW OF CASH OF CASH OF CASH OF CASH OF CASH OF CASH
"HOLD SCENERIO" 5 YEARS YR 5 YR 6 YR 7 YR 8 YR 9 YR 10
-------------------------------------------------------------------------
5 6 7 8 9 10
N N N N N N
0 0 0 0 0 0
1 (0) 0 0 0 0
0 0 0 0 0 0
12 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
12 0 0 0 0 0
NET OPERATING INCOME 478,417 0 0 0 0 0
DEFERRED MAINTENANCE/CAPITAL IMPVMNTS (62,285) 0 0 0 0 0
OTHER EXPENSES & GENERAL RESERVES (12,831) 0 0 0 0 0
NEW MORTGAGE IN YEAR 0 0 0 0 0 0
COST OF REFINANCE 0 0 0 0 0 0
DEBT SERVICE 1a 0 0 0 0 0 0
DEBT SERVICE 1b (232,325) 0 0 0 0 0
ESCROWS DUE AT CLOSING
MORTGAGE BALOON - PAYOFF 1a 0 0 0 0 0 0
MORTGAGE BALOON - PAYOFF 1b (2,647,022) 0 0 0 0 0
MORTGAGE - DEBT
MORTGAGE BALOON - PAYOFF
ADD'L CASH FLOWS DUE
SALE OF PROPERTY IN YEAR 4,559,793 0 0 0 0 0
COST OF SALE IN YEAR (68,397) 0 0 0 0 0
ADDITIONAL RESERVE 286,142
PROJECTED DEVELOPMENT COSTS
ACCRUED PROPERTY TAXES @ 10/95 (33,407)
TAX ESCROW AS OF 10/95 55,332
ESTIMATED CASH @ 12/95
ESTIMATED REPLACEMENT RESERVE CASH @ 12/95
ACCOUNTS PAYABLE @ 10/95 (7,374)
-------------------------------------------------------------------------
SUBTOTAL - NET CASH FLOW 2,316,044 0 0 0 0 0
-------------------------------------------------------------------------
REFI/SALES FEES DUE HFGI (227,990) 0 0 0 0 0
ADD'L PARTNERSHIP FUNDS DUE 0 0 0 0 0 0
ADD'L PARTNERSHIP FUNDS REPAID 0 0 0 0 0 0
-------------------------------------------------------------------------
CASH FLOW FROM PROPERTY OPERATIONS 2,088,055 0 0 0 0 0
-------------------------------------------------------------------------
4
HALL 7 TAILS ASSOCIATES
"Hold Scenerio" 5 Years
DISBURSEMENTS DETAIL:
LP'S NON AFFILIATES 15,917 0 131,238 22,958 0 1,691,114
CH 2 0 15 3 0 191
HFGI 1 0 9 2 0 118
PHOENIX/INWOOD 1 0 9 2 0 114
GP'S NON HFGI/CH 10 0 80 14 0 1,025
CH 151 0 1,246 218 0 16,061
HFGI 0 0 0 0 0 0
PHOENIX/INWOOD 0 0 0 0 0 0
HFGI ADVANCES 83,574 0 0 0 0 120,560
OTHER 1,117,967 0 0 127,407 160,959 258,871
HFGI SALES COMMISSION & REFI FEES 27,500 0 0 0 0 227,990
HFGI ADVANCES FUNDED & REPAID 0 (5,704) 5,704 0 0 0
B/DISTRIBUTIONS
--------------------------------------------------------------------
TOTAL DISBURSEMENTS 1,245,123 (5,704) 138,301 150,603 160,959 2,316,044
====================================================================
HALL 7 TAILS ASSOCIATES
"Hold Scenerio" 5 Years
HFGI/AFFILIATES - DISBURSEMENTS DETAIL:
Summary HFGI 110,075 (5,704) 5,713 2 0 348,668
Summary PHOENIX/INWOOD 1 0 9 2 0 114
Summary CH 153 0 1,261 221 0 16,252
--------------------------------------------------------------------
TOTAL SUMMARY HFGI/CH/HPI 111,229 (5,704) 6,983 224 0 365,034
====================================================================
PV OF HFGI/CH SUMMARY 10.00% $338,641
- ------------------------------------------------ --------------
--------------------------------------------------------------------
Management Fee Profit (4% out of 6%) 4.00% 0 33,291 34,039 35,185 36,272 37,368
====================================================================
PV OF MGT FEE PROFIT 10.00% $132,807
- ------------------------------------------------ --------------
SUMMARY HFGI/CH/HPI W/MGT FEE PROFIT
Summary HFGI w/MGT FEE PROFIT 111,075 27,587 39,752 35,186 36,272 386,035
Summary PHOENIX/INWOOD 1 0 9 2 0 114
Summary CH 153 0 1,261 221 0 16,252
--------------------------------------------------------------------
TOTAL SUMMARY HFGI/CH/HPI & MGT FEE PROFIT 111,229 27,587 41,022 35,409 36,272 402,402
====================================================================
PV OF MGT FEE PROFIT 10.00% $471,448
- ------------------------------------------------ --------------
HALL 7 TAILS ASSOCIATES
"Hold Scenerio" 5 Years
DISBURSEMENTS DETAIL:
LP'S NON AFFILIATES 0 0 0 0 0 1,861,228
CH 0 0 0 0 0 211
HFGI 0 0 0 0 0 130
PHOENIX/INWOOD 0 0 0 0 0 126
GP'S NON HFGI/CH 0 0 0 0 0 1,128
CH 0 0 0 0 0 17,677
HFGI 0 0 0 0 0 0
PHOENIX/INWOOD 0 0 0 0 0 0
HFGI ADVANCES 0 0 0 0 0 204,134
OTHER 0 0 0 0 0 1,665,204
HFGI SALES COMMISSION & REFI FEES 0 0 0 0 0 255,490
HFGI ADVANCES FUNDED & REPAID 0 0 0 0 0 0
B/DISTRIBUTIONS
-----------------------------------------------------
TOTAL DISBURSEMENTS 0 0 0 0 0 4,005,327
=====================================================
HALL 7 TAILS ASSOCIATES
"Hold Scenerio" 5 Years
HFGI/AFFILIATES - DISBURSEMENTS DETAIL:
Summary HFGI 0 0 0 0 0 459,753
Summary PHOENIX/INWOOD 0 0 0 0 0 126
Summary CH 0 0 0 0 0 17,887
-----------------------------------------------------
TOTAL SUMMARY HFGI/CH/HPI 0 0 0 0 0 477,767
=====================================================
PV OF HFGI/CH SUMMARY 10.00%
- ------------------------------------------------
-----------------------------------------------------
Management Fee Profit (4% out of 6%) 4.00% 0 0 0 0 0 176,154
=====================================================
PV OF MGT FEE PROFIT 10.00%
- ------------------------------------------------
SUMMARY HFGI/CH/HPI W/MGT FEE PROFIT
Summary HFGI w/MGT FEE PROFIT 0 0 0 0 0 635,908
Summary PHOENIX/INWOOD 0 0 0 0 0 126
Summary CH 0 0 0 0 0 17,887
-----------------------------------------------------
TOTAL SUMMARY HFGI/CH/HPI & MGT FEE PROFIT 0 0 0 0 0 653,921
=====================================================
PV OF MGT FEE PROFIT 10.00%
- ------------------------------------------------
5
ARROWTREE APARTMENTS
"HOLD SCENARIO" 5 YEARS
ASSUMPTIONS
SALES CURRENT DEBT
- -------------------------------------------- ----------------------------------------------
Sale Date (Month, Year) 60/5 Maturity Date 15-Jun-97
Cap Rate 10.00% Maturity Amount 2,377,237
Cost of Sale--Non HFGI 1.50% Current Debt Driver 0
Cost of Sale--HFGI 5.00% Term Remaining
Replacement Reserve/Unit--Current $ 271
RR Annual % Incr 3.00% Current Balloon 25-Nov-95/1,476,745
Replacement Reserve/Unit--Sales $ 305 Monthly D/S--1st 22/13,886
Monthly D/S--1st
Monthly D/S--2nd
REFINANCE SCENARIO #"A" REFINANCE SCENARIO #"B"
- -------------------------------------------- ----------------------------------------------
Year of Refinance 0 Loan Proceeds 2,750,000
Cost of Refinance--Non HFGI 4.00% Cost of Refinance--Non HFGI 67,021
Replacement Reserve/Unit--Ref $ 271 Replacement Reserve/$ 71,111
220+T-Bill 8.30% Interest Rate 7.57%
Constant 9.50% Constant 8.45%
Term (Months/Years) 0/0 Term (Months/Years) 60/5
Coverage Ratio 1.25 Coverage Ratio 1.25
Amo--Months 300 Amo--Months 360
@ CLOSING B/S DATA HFGI DISTRIBUTION NPV DATA
- --------------------------------------------- --------------------------------------------------
Accrued Property Taxes (1) (33,407) Discount Rate 10.00%
Property Tax Escrow 55,332 NPV Dollars--HFGI/CH/HPI $338,641
Cash on Hand 36,753 NPV Dollars--Mgt Fee Profit $132,807
Replacement/Deficit Escrows 100,000 NPV $'s--HFGI/CH/HPI/Mgt Fee Profit $471,448
Accounts Payable (7,374)
(1) Based on 4/6 of O/S Installment
6
BRAMBLETREE APARTMENTS
NET CASH FLOW
"HOLD SCENARIO" 5 YEARS
ACTUAL
1/25/95- 1996
ACTUAL ACTUAL 12/31/95 BUDGET PROJ PROJ PROJ PROJ
1993 1994 FISCAL YR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
----------- ------------ ---------- ----------- --------- --------- ---------- ----------
RENT POTENTIAL 1,338,080 1,338,310 1,485,777 1,565,191 1,612,147 1,660,511 1,710,327 1,761,636
% increase 3.00% 3.75% 7.02% 5.34% 3.00% 3.00% 3.00% 3.00%
+/- POTENTIAL (30,111) (28,527) (42,863) (37,947) (32,965) (32,423) (33,014) (33,908)
% increase 2.25% 2.05% 2.88% 2.42% 2.04% 1.95% 1.93% 1.92%
CONCESSIONS (2,360) (1,023) (3,065) (3,900) (4,030) (4,151) (4,276) (4,404)
% 0.18% 0.07% 0.21% 0.25% 0.25% 0.25% 0.25% 0.25%
VACANCY (122,867) (82,422) (115,674) (82,348) (96,729) (99,631) (102,620) (105,698)
% 9.18% 5.94% 7.79% 5.26% 6.00% 6.00% 6.00% 6.00%
DELINQUENT (18,090) (3,546) 1,457 (5,400) (7,557) (7,784) (8,017) (8,258)
% 1.49% 0.27% -0.11% 0.37% 0.50% 0.50% 0.50% 0.50%
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
RENTAL INCOME 1,164,652 1,272,792 1,325,632 1,435,596 1,470,866 1,516,522 1,562,401 1,609,368
OTHER INCOME 35,715 36,657 24,199 30,400 31,312 32,251 33,219 34,215
% increase 3.00% 2.64% -33.99% 25.63% 3.00% 3.00% 3.00% 3.00%
SPECIAL OPERATIONS
% increase 2.00%
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL INCOME 1,200,367 1,309,449 1,349,831 1,465,996 1,502,178 1,548,774 1,595,620 1,643,584
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
CONTROLLABLE COSTS 307,057 302,184 270,632 288,811 297,475 306,400 315,592 325,059
% increase 3.00% -1.59% -10.44% 6.72% 3.00% 3.00% 3.00% 3.00%
MANAGEMENT FEES 59,815 65,929 67,492 73,300 75,109 77,439 79,781 82,179
% increase 5.00% 10.22% 2.37% 8.61% 2.47% 3.10% 3.02% 3.01%
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
UTILITIES 106,240 94,274 95,346 103,056 106,148 109,332 112,612 115,990
% increase 3.00% -11.26% 1.14% 8.09% 3.00% 3.00% 3.00% 3.00%
TAXES 97,368 100,741 109,136 114,396 120,116 126,122 132,428 139,049
% increase 5.00% 3.46% 8.33% 4.82% 5.00% 5.00% 5.00% 5.00%
INSURANCE 28,187 28,341 26,173 25,536 26,302 27,091 27,904 28,741
% increase 3.00% 0.55% -7.65% -2.43% 3.00% 3.00% 3.00% 3.00%
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
OVERHEAD 231,795 223,356 230,655 242,988 252,566 262,545 272,944 283,780
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL EXPENSES 598,667 591,469 568,779 605,099 625,150 646,383 668,316 691,019
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
NET OPERATING INCOME 601,700 717,980 781,052 860,897 877,028 902,391 927,303 952,565
19.33% 8.78% 10.22% 1.87% 2.89% 2.76% 2.72%
DEF MAINT/CAP IMPV/Per 128,783 196,521 146,505 157,284 118,000 121,540 125,186 128,942
Unit--500
% increase 3.00%
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
NET CASH FLOW B/DEBT SERV 472,917 521,459 634,547 703,613 759,028 780,851 802,117 823,623
DEBT SERVICE PAID (663,282) (425,856) (502,357)
-------- -------- --------
NET CASH FLOW A/DEBT (190,365) 95,603 132,190
T-12 IS BASED ON 1995 PROPERTY TAX EXPENSE.
7
BRAMBLETREE APARTMENTS
RATIOS/PER UNIT AND PER SQ. FT. COMPARISONS
"HOLD SCENARIO" 5 YEARS
ACTUAL
1/25/95- 1996
ACTUAL 12/31/95 BUDGET PROJ PROJ PROJ PROJ
1994 FISCAL YR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
--------- ---------- --------- --------- --------- --------- ----------
RENT POTENTIAL LESS CONCESSIONS PER UNIT 4.90 524 551 568 585 602 620
RENT POTENTIAL INCREASE PER UNIT 28 17 17 18 18
RENT POTENTIAL LESS CONCESSIONS PER SQ. FT $ 0.59 $ 0.63 $ 0.66 $ 0.68 $ 0.70 $ 0.72 $ 0.75
REVENUES/SQ. FT $ 0.56 $ 0.57 $ 0.62 $ 0.64 $ 0.66 $ 0.68 $ 0.70
EXPENSES PER UNIT 2,506 2,410 2,564 2,649 2,739 2,832 2,928
EXPENSES SQ. FT $ 3.01 $ 2.90 $ 3.08 $ 3.18 $ 3.29 $ 3.40 $ 3.52
CONTROLLABLE EXPENSES PER UNIT 1,280 1,147 1,224 1,260 1,298 1,337 1,377
CONTROLLABLE EXPENSES PER SQ. FT $ 1.54 $ 1.38 $ 1.47 $ 1.51 $ 1.56 $ 1.61 $ 1.65
OVERHEAD PER UNIT 946 977 1,030 1,070 1,112 1,157 1,202
OVERHEAD PER SQ. FT $ 1.14 $ 1.17 $ 1.24 $ 1.29 $ 1.34 $ 1.39 $ 1.44
EXPENSE TO REVENUE RATIO 45.17% 42.14% 41.28% 41.62% 41.74% 41.88% 42.04%
NOI PER UNIT 3,042 3,310 3,648 3,716 3,824 3,929 4,036
DEF MAINT/CAP X PER UNIT 833 621 666 500 515 530 546
CURRENT EFFECTIVE RENT RATE
BEGINNING "RENT ROLL" @ 1/1/96
SQUARE RENTAL RENT/ TOTAL TOTAL
UNIT TYPE NUMBER FEET RATE SQ. FT. SQ. FT. RENT
------------ ----------- ----------- ----------- ----------- -------
One Bedroom/One Bath 52 660 $ 464 $ 0.70 34,320 $ 24,128
One Bedroom/One Bath 52 660 $ 464 $ 0.70 34,320 $ 24,128
Two Bedrooms/Two Baths 54 950 $ 604 $ 0.64 51,300 $ 32,640
Two Bedrooms/Two Baths 54 950 $ 604 $ 0.64 51,300 $ 32,640
Three Bedrooms/Two Baths 12 1,050 $ 704 $ 0.67 12,600 $ 8,448
Three Bedrooms/Two Baths 12 1,050 $ 704 $ 0.67 12,600 $ 8,448
------------ ----------- ----------- ----------- ----------- -----------
TOTAL 236
WEIGHTED AVERAGE 832 $ 553 $ 0.66 196,440 $ 130,433 per month
$ 1,565,191 per year
8
BRAMBLETREE APARTMENTS
SOURCES & USES OF CASH FLOW
"HOLD SCENARIO" 5 YEARS
DATE PREPARED 03-JUN-96
01:53:45 PM
S/(U) S/(U) S/(U) S/(U)
DUE AT OF CASH OF CASH OF CASH OF CASH
CLOSING YR 1 YR 2 YR 3 YR 4
-------------------------- ------- ------- ------- -------
Test Scales 1 2 3 4
Second Funding Test N N N N
D/S "a" Test Multiplier 0 0 0 0
D/S "b" Test Multiplier 1 1 1 1
Counter "a"--w\"b" 0 0 0 0
Counter "b" Test 12 12 12 12
Counter "Current" 0 0 0 0
Counter "a"--w\current 12 0 0 0
Counter "Note" Test 12 12 12 12
NET OPERATING INCOME 860,897 877,028 902,391 927,303
DEFERRED MAINTENANCE/CAPITAL
IMPVMNTS (157,284) (118,000) (121,540) (125,186)
OTHER EXPENSES & GENERAL
RESERVES 100 (23,600) (24,308) (25,037) (25,788)
NEW MORTGAGE IN YEAR 6,568,116 0 0 0 0
COST OF REFINANCE (131,362) 0 0 0 0
DEBT SERVICE 1a 0 0 0 0
DEBT SERVICE 1b (567,317) (585,019) (585,019) (585,019)
ESCROWS DUE AT CLOSING (118,000) 0
MORTGAGE BALLOON--PAYOFF 1a 0 0 0 0
MORTGAGE BALLOON--PAYOFF 1b 0 0 0 0
MORTGAGE--DEBT
MORTGAGE BALLOON--PAYOFF (7,100,000)
ADD'L CASH FLOWS DUE 0
SALE OF PROPERTY IN YEAR 0 0 0 0
COST OF SALE IN YEAR 0 0 0 0
ADDITIONAL RESERVE
PROJECTED DEVELOPMENT COSTS
ACCRUED PROPERTY TAXES
@ 10/95 (99,771)
TAX ESCROW AS OF 10/95 112,044
ESTIMATED CASH @ 12/95 235,472
ESTIMATED REPLACEMENT
RESERVE CASH @ 12/95 0
ACCOUNTS PAYABLE @ 10/95 (8,321)
SUBTOTAL--NET CASH FLOW (545,774) 112,696 149,701 170,794 191,309
S/(U) S/(U) S/(U) S/(U) S/(U) S/(U)
OF CASH OF CASH OF CASH OF CASH OF CASH OF CASH
YR 5 YR 6 YR 7 YR 8 YR 9 YR 10
------- ------- ------- ------- ------- -------
5 6 7 8 9 10
N N N N N N
0 0 0 0 0 0
1 (0) 0 0 0 0
0 0 0 0 0 0
12 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
12 0 0 0 0 0
NET OPERATING INCOME 952,565 0 0 0 0 0
DEFERRED MAINTENANCE/CAPITAL
IMPVMNTS (128,942) 0 0 0 0 0
OTHER EXPENSES & GENERAL
RESERVES (26,562) 0 0 0 0 0
NEW MORTGAGE IN YEAR 0 0 0 0 0 0
COST OF REFINANCE 0 0 0 0 0 0
DEBT SERVICE 1a 0 0 0 0 0 0
DEBT SERVICE 1b (585,019) 0 0 0 0 0
ESCROWS DUE AT CLOSING
MORTGAGE BALLOON--PAYOFF 1a 0 0 0 0 0 0
MORTGAGE BALLOON--PAYOFF 1b (6,140,185) 0 0 0 0 0
MORTGAGE--DEBT
MORTGAGE BALLOON--PAYOFF
ADD'L CASH FLOWS DUE
SALE OF PROPERTY IN YEAR 9,064,004 0 0 0 0 0
COST OF SALE IN YEAR (135,960) 0 0 0 0 0
ADDITIONAL RESERVE 0
PROJECTED DEVELOPMENT COSTS
ACCRUED PROPERTY TAXES
@ 10/95 (99,771)
TAX ESCROW AS OF 10/95 112,044
ESTIMATED CASH @ 12/95
ESTIMATED REPLACEMENT
RESERVE CASH @ 12/95
ACCOUNTS PAYABLE @ 10/95 (8,321)
SUBTOTAL--NET CASH FLOW 3,003,852 0 0 0 0 0
9
S/(U) S/(U) S/(U) S/(U)
DUE AT OF CASH OF CASH OF CASH OF CASH
CLOSING YR 1 YR 2 YR 3 YR 4
(continued) -------------------------- ------- ------- ------- -------
REFI/SALES FEES DUE HFGI 1.00% 5.00% (65,681) 0 0 0 0
ADD'L PARTNERSHIP FUNDS DUE 35.59% 259,922 0 0 0 0
ADD'L PARTNERSHIP FUNDS
REPAID 0 (40,109) (53,279) (60,786) (68,087)
ADD'L PARTNERSHIP FUNDS
DUE OTHER 64.41% 351,533 (72,588) (96,422) (110,008) (72,514)
------ -------- ------- ------- -------- -------
CASH FLOW FROM PROPERTY
OPERATIONS 0 0 0 0 0 50,708
====== ======== ======= ======= ======== =======
S/(U) S/(U) S/(U) S/(U) S/(U) S/(U)
OF CASH OF CASH OF CASH OF CASH OF CASH OF CASH
YR 5 YR 6 YR 7 YR 8 YR 9 YR 10
------- ------- ------- ------- ------- -------
REFI/SALES FEES DUE HFGI (453,200) 0 0 0 0 0
ADD'L PARTNERSHIP FUNDS DUE 0 0 0 0 0 0
ADD'L PARTNERSHIP FUNDS
REPAID (37,662) 0 0 0 0 0
ADD'L PARTNERSHIP FUNDS
DUE OTHER 0 0 0 0 0 0
--------- --- --- --- --- ---
CASH FLOW FROM PROPERTY
OPERATIONS 2,512,989 0 0 0 0 0
========= === === === === ===
10
HALL BRAMBLETREE ASSOC.
"HOLD SCENARIO" 5 YEARS
DISBURSEMENTS DETAIL
S/(U) S/(U) S/(U) S/(U) S/(U)
DUE AT OF CASH OF CASH OF CASH OF CASH OF CASH
CLOSING YR 1 YR 2 YR 3 YR 4 YR 5
---------------------- --------- --------- --------- --------- --------
LP'S NON AFFILIATES 0 0 0 0 0 684,336 0
CH 0 0 0 0 0 0 0
HFGI 0 0 0 0 0 653,218 0
PHOENIX/INWOOD 0 0 0 0 0 0 0
GP'S NON HFGI/CH 0 0 0 0 0 2,173 0
CH 0 0 0 0 0 0 0
HFGI 0 0 0 0 0 543 0
PHOENIX/INWOOD 0 0 0 0 0 24,581 0
HFGI ADVANCES 0 0 0 0 50,708 502,390 0
OTHER (351,533) 72,588 96,422 110,008 72,514 645,748 0
HFGI SALES COMMISSION & REFI FEES 65,681 0 0 0 0 453,200 0
HFGI ADVANCES FUNDED & REPAID B/
DISTRIBUTIONS (259,922) 40,109 53,279 60,786 68,087 37,662 0
---------- --------- --------- --------- --------- --------- ---------
TOTAL DISBURSEMENTS (545,774) 112,696 149,701 170,794 191,309 3,003,852 0
========== ========= ========= ========= ========= ========= =========
HALL BRAMBLETREE ASSOC.
HFGI/AFFILIATES--DISBURSEMENTS DETAIL
"HOLD SCENARIO" 5 YEARS
Summary HFGI (194,241) 40,109 53,279 60,786 118,795 1,647,013 0
Summary PHOENIX/INWOOD 0 0 0 0 0 24,581 0
Summary CH 0 0 0 0 0 0 0
---------- --------- --------- --------- --------- --------- ---------
TOTAL SUMMARY HFGI/CH/HPI (194,241) 40,109 53,279 60,786 118,795 1,671,594 0
========== ========= ========= ========= ========= ========= =========
PV OF HFGI/CH/SUMMARY 10.00% $1,050,990
Management Fee Profit
(4% out of 6%) 4.00% 0 58,640 60,087 61,951 63,825 65,743 0
========== ========= ========= ========= ========= ========= =========
PV OF MGT FEE PROFIT 10.00% $ 233,927
SUMMARY HFGI/CH/HPI w/MGT FEE PROFIT
Summary HFGI w/MGT FEE PROFIT (194,241) 98,749 113,366 122,737 182,620 1,712,757 0
Summary PHOENIX/INWOOD 0 0 0 0 0 24,581 0
Summary CH 0 0 0 0 0 0 0
---------- --------- --------- --------- --------- --------- ---------
TOTAL SUMMARY HFGI/CH/HPI &
MGT FEE PROFIT (194,241) 98,749 113,366 122,737 182,620 1,737,338 0
========== ========= ========= ========= ========= ========= =========
PV OF MGT FEE PROFIT 10.00% $1,284,917
S/(U) S/(U) S/(U) S/(U) S/(U)
OF CASH OF CASH OF CASH OF CASH OF CASH
YR 6 YR 7 YR 8 YR 9 YR 10
--------- --------- --------- --------- ---------
LP'S NON AFFILIATES 0 0 0 0 684,336
CH 0 0 0 0 0
HFGI 0 0 0 0 653,218
PHOENIX/INWOOD 0 0 0 0 0
GP'S NON HFGI/CH 0 0 0 0 2,173
CH 0 0 0 0 0
HFGI 0 0 0 0 543
PHOENIX/INWOOD 0 0 0 0 24,581
HFGI ADVANCES 0 0 0 0 553,098
OTHER 0 0 0 0 645,748
HFGI SALES COMMISSION & REFI FEES 0 0 0 0 518,881
HFGI ADVANCES FUNDED & REPAID B/
DISTRIBUTIONS 0 0 0 0 0
--------- --------- --------- --------- ---------
TOTAL DISBURSEMENTS 0 0 0 0 3,082,579
========= ========= ========= ========= =========
HALL BRAMBLETREE ASSOC.
HFGI/AFFILIATES--DISBURSEMENTS DETAIL
"HOLD SCENARIO" 5 YEARS
Summary HFGI 0 0 0 0 1,725,740
Summary PHOENIX/INWOOD 0 0 0 0 24,581
Summary CH 0 0 0 0 0
--------- --------- --------- --------- ---------
TOTAL SUMMARY HFGI/CH/HPI 0 0 0 0 1,750,321
========= ========= ========= ========= =========
PV OF HFGI/CH/SUMMARY 10.00%
Management Fee Profit
(4% out of 6%) 4.00% 0 0 0 0 310,246
========= ========= ========= ========= =========
PV OF MGT FEE PROFIT 10.00%
SUMMARY HFGI/CH/HPI w/MGT FEE PROFIT
Summary HFGI w/MGT FEE PROFIT 0 0 0 0 2,035,986
Summary PHOENIX/INWOOD 0 0 0 0 24,581
Summary CH 0 0 0 0 0
--------- --------- --------- --------- ---------
TOTAL SUMMARY HFGI/CH/HPI &
MGT FEE PROFIT 0 0 0 0 2,060,567
========= ========= ========= ========= =========
PV OF MGT FEE PROFIT 10.00%
11
BRAMBLETREE APARTMENTS
"HOLD SCENARIO" 5 YEARS
ASSUMPTIONS
SALES CURRENT DEBT
- ------------------------------------------ --------------------------------------------------------
Sale Date (Month, Year) 60/5 Maturity Date 01-Nov-98
Cap Rate 10.00% Maturity Amount 7,257,034
Cost of Sale--Non HFGI 1.50% Current Debt Driver 0
Cost of Sale--HFGI 5.00% Term Remaining
Replacement Reserve/Unit--Current $271
RR Annual % Incr 3.00% Current Balloon 25-Nov-95/7,100,000
Replacement Reserve/Unit--Sales $305 Monthly D/S--1st 12/44,120
Monthly D/S--1st 26/44,326
Monthly D/S--2nd
REFINANCE SCENARIO #"A" REFINANCE SCENARIO #"B"
- ------------------------------------------ --------------------------------------------------------
Year of Refinance 0 Loan Proceeds 6,568,116
Cost of Refinance--Non HFGI 4.00% Cost of Refinance--Non HFGI 131,362
Replacement Reserve/Unit--Ref $271 Replacement Reserve/$ 118,000
220+T-Bill 8.30% 220 + T-Bill 7.55%
Constant 9.50% Constant 8.91%
Term (Months/Years) 0/0 Term (Months/Years) 60/5
Coverage Ratio 1.25 Coverage Ratio 1.25
Amo--Months 300 Amo--Months 300
@ CLOSING B/S DATA HFGI DISTRIBUTION NPV DATA
- ------------------------------------------ -------------------------------------------------------
Accrued Property Taxes (99,771) Discount Rate 10.00%
Property Tax Escrow 112,044 NPV Dollars--HFGI/CH/HPI $1,050,990
Cash on Hand 189,868 NPV Dollars--Mgt Fee Profit $233,927
Replacement/Deficit Escrows 38,358 NPV $'s-HFGI/CH/HPI/Mgt Fee Profit $1,284,917
Accounts Payable (8,321)
12
MIDTREE (PHOENIX SQ) APARTMENTS
NET CASH FLOW
"HOLD SCENARIO" 5 YEARS
ACTUAL
1/25/95- 1996
ACTUAL ACTUAL 12/31/95 BUDGET
1993 1994 FISCAL YR YEAR 1
-------- -------- --------- ----------
RENT POTENTIAL 831,305 902,400 926,105 960,090
% increase 3.00% 8.55% 2.63% 3.67%
+/- POTENTIAL (38,795) (30,845) (4,435) (10,276)
% increase 4.67% 3.42% 0.48% 1.07%
CONCESSIONS (60) 0 (5,313) (4,000)
% 0.01% 0.00% 0.57% 0.42%
VACANCY (16,933) (44,134) (62,293) (50,474)
% 2.04% 4.89% 6.73% 5.26%
DELINQUENT (1,389) (3,579) (1,503) (4,200)
% 0.17% 0.42% 0.18% 0.46%
------- ------- ------- -------
RENTAL INCOME 774,128 823,842 852,561 891,140
OTHER INCOME 136,021 152,484 122,300 130,406
% increase 3.00% 12.10% -19.79% 6.63%
SPECIAL OPERATIONS
% increase 2.00%
-------- -------- -------- ----------
TOTAL INCOME 910,149 976,326 974,861 1,021,546
-------- -------- -------- ----------
CONTROLLABLE COSTS 158,521 172,664 177,555 180,787
% increase 3.00% 8.92% 2.83% 1.82%
MANAGEMENT FEES 36,445 39,033 48,743 51,077
% increase 5.00% 7.10% 24.88% 4.79%
------- ------- ------- -------
UTILITIES 134,984 140,734 123,792 131,326
% increase 3.00% 4.26% -12.04% 6.09%
TAXES 40,436 40,308 50,349 52,000
% increase 5.00% -0.32% 24.91% 3.28%
INSURANCE 18,023 15,902 15,572 15,900
% increase 3.00% -11.77% -2.08% 2.11%
------- ------- ------- -------
OVERHEAD 193,443 196,944 189,713 199,226
------- ------- ------- -------
TOTAL EXPENSES 388,409 408,641 416,011 431,090
-------- -------- -------- -------
NET OPERATING INCOME 521,740 567,685 558,850 590,456
8.81% -1.56% 5.66%
DEF MAINT/CAP IMPV/Per Unit--350 83,085 75,669 72,995 53,570
% increase 3.00%
------- ------- ------- -------
NET CASH FLOW B/DEBT SERV 438,655 492,016 485,855 536,886
DEBT SERVICE PAID (399,577) (437,689) (428,175)
------- ------- -------
NET CASH FLOW A/DEBT 39,078 54,327 57,680
PROJ PROJ PROJ PROJ
YEAR 2 YEAR 3 YEAR 4 YEAR 5
------- --------- --------- ---------
RENT POTENTIAL 988,893 1,018,559 1,049,116 1,080,590
% increase 3.00% 3.00% 3.00% 3.00%
+/- POTENTIAL (9,770) (9,859) (10,104) (10,394)
% increase 0.99% 0.97% 0.96% 0.96%
CONCESSIONS (4,450) (4,584) (4,721) (4,863)
% 0.45% 0.45% 0.45% 0.45%
VACANCY (49,445) (50,928) (52,456) (54,029)
% 5.00% 5.00% 5.00% 5.00%
DELINQUENT (4,675) (4,815) (4,960) (5,108)
% 0.50% 0.50% 0.50% 0.50%
------- --------- --------- ---------
RENTAL INCOME 920,553 948,374 976,876 1,006,195
OTHER INCOME 134,318 138,348 142,498 146,773
% increase 3.00% 3.00% 3.00% 3.00%
SPECIAL OPERATIONS
% increase
------- --------- --------- ---------
TOTAL INCOME 1,054,872 1,086,721 1,119,374 1,152,968
------- --------- --------- ---------
CONTROLLABLE COSTS 186,211 191,797 197,551 203,477
% increase 3.00% 3.00% 3.00% 3.00%
MANAGEMENT FEES 52,744 54,336 55,969 57,648
% increase 3.26% 3.02% 3.00% 3.00%
------- --------- --------- ---------
UTILITIES 135,266 139,324 143,503 147,809
% increase 3.00% 3.00% 3.00% 3.00%
TAXES 54,600 57,330 60,196 63,206
% increase 5.00% 5.00% 5.00% 5.00%
INSURANCE 16,377 16,868 17,374 17,896
% increase 3.00% 3.00% 3.00% 3.00%
------- --------- --------- ---------
OVERHEAD 206,243 213,522 221,074 228,910
------- --------- --------- ---------
TOTAL EXPENSES 445,197 459,655 474,594 490,036
------- --------- --------- ---------
NET OPERATING INCOME 609,675 627,066 644,780 662,932
3.25% 2.85% 2.82% 2.82%
DEF MAINT/CAP IMPV/Per Unit--350 42,700 43,981 45,300 46,659
% increase
------- --------- --------- ---------
NET CASH FLOW B/DEBT SERV 566,975 583,085 599,480 616,272
DEBT SERVICE PAID
NET CASH FLOW A/DEBT
T-12 IS BASED ON 1995 PROPERTY TAX EXPENSE
13
MIDTREE (PHOENIX SQ) APARTMENTS
RATIOS/PER UNIT AND PER SQ. FT. COMPARISONS
"HOLD SCENARIO" 5 YEARS
ACTUAL
1/25/95- 1996
ACTUAL 12/31/95 BUDGET PROJ PROJ PROJ PROJ
1994 FISCAL YR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
------ --------- ------ ------ ------ ------ ------
RENT POTENTIAL LESS CONCESSIONS PER UNIT 616 629 653 672 693 713 735
RENT POTENTIAL INCREASE PER UNIT 24 19 20 21 21
RENT POTENTIAL LESS CONCESSIONS PER SF $ 0.65 $ 0.66 $ 0.69 $ 0.71 $ 0.73 $ 0.75 $ 0.77
REVENUES/SQ. FT $ 0.70 $ 0.70 $ 0.73 $ 0.76 $ 0.78 $ 0.80 $ 0.83
EXPENSES PER UNIT 3,350 3,410 3,534 3,649 3,768 3,890 4,017
EXPENSES SQ. FT $ 3.52 $ 3.58 $ 3.71 $ 3.83 $ 3.95 $ 4.08 $ 4.22
CONTROLLABLE EXPENSES PER UNIT 1,415 1,455 1,482 1,526 1,572 1,619 1,668
CONTROLLABLE EXPENSES PER SQ. FT $ 1.49 $ 1.53 $ 1.56 $ 1.60 $ 1.65 $ 1.70 $ 1.75
OVERHEAD PER UNIT 1,614 1,555 1,633 1,691 1,750 1,812 1,876
OVERHEAD PER SQ. FT $ 1.69 $ 1.63 $ 1.71 $ 1.77 $ 1.84 $ 1.90 $ 1.97
EXPENSE TO REVENUE RATIO 41.85% 42.67% 42.20% 42.20% 42.30% 42.40% 42.50%
NOI PER UNIT 4,653 4,581 4,840 4,997 5,140 5,285 5,434
DEF MAINT/CAP X PER UNIT 620 598 439 350 361 371 382
CURRENT EFFECTIVE RENT RATE
BEGINNING "RENT ROLL" @ 1/1/96
SQUARE RENTAL RENT/ TOTAL TOTAL
UNIT TYPE NUMBER FEET RATE SQ. FT. SQ. FT. RENT
------- ------ ------ ------- -------- --------
One Bedroom/One Bath 26 824 $ 578 $0.70 21,424 $ 15,015
One Bedroom/One Bath 40 904 $ 608 $0.67 36,175 $ 24,300
Two Bedrooms/Two Baths 41 1,037 $ 728 $0.70 42,517 $ 29,828
Two Bedrooms/Two Baths 14 1,108 $ 758 $0.68 15,512 $ 10,605
Guest 1 600 $ 260 $0.43 600 $ 260
--- ----- ----- ----- ------- --------
TOTAL 122
WEIGHTED AVERAGE 953 $ 656 $0.69 116,228 $ 80,008 per month
$960,090 per year
14
MIDTREE (PHOENIX SQ) APARTMENTS
SOURCES & USES OF CASH FLOW
"HOLD SCENARIO" 5 YEARS
S/(U) S/(U) S/(U) S/(U) S/(U)
DUE AT OF CASH OF CASH OF CASH OF CASH OF CASH
CLOSING YR 1 YR 2 YR 3 YR 4 YR 5
Test Scales 1 2 3 4 5
Second Funding Test N N N N N
D/S "a" Test Multiplier 0 0 0 0 0
D/S "b" Test Multiplier 0 0 0 0 0
Counter "a"--w\"b" 0 0 0 0 0
Counter "b" Test 0 0 0 0 0
Counter "Current" 12 12 12 12 12
Counter "a"--w\current 0 0 0 0 0
Counter "Note" Test 12 12 12 12 12
NET OPERATING INCOME 590,456 609,675 627,066 644,780 662,932
DEFERRED MAINTENANCE/CAPITAL
IMPVMNTS (53,570) (42,700) (43,981) (45,300) (46,659)
OTHER EXPENSES & GENERAL
RESERVES 100 (12,200) (12,566) (12,943) (13,331) (13,731)
NEW MORTGAGE IN YEAR 0 0 0 0 0 0
COST OF REFINANCE 0 0 0 0 0 0
DEBT SERVICE 1a 0 0 0 0 0
DEBT SERVICE 1b 0 0 0 0 0
ESCROWS DUE AT CLOSING 0 0
MORTGAGE BALLOON--PAYOFF 1a 0 0 0 0 0
MORTGAGE BALLOON--PAYOFF 1b 0 0 0 0 0
NET--REPLACEMENT RESERVE FUNDING/DRAWS
MORTGAGE--DEBT (373,332) (373,332) (373,332) (373,332) (373,332)
MORTGAGE BALLOON--PAYOFF (4,019,386)
ADD'L CASH FLOWS DUE 0
SALE OF PROPERTY IN YEAR 0 0 0 0 6,443,469
COST OF SALE IN YEAR 0 0 0 0 (96,652)
ADDITIONAL RESERVE (54,524) 54,524
PROJECTED DEVELOPMENT COSTS
ACCRUED PROPERTY TAXES
@ 11/95 (24,499) (24,499)
TAX ESCROW AS OF 11/95 33,645 33,645
ESTIMATED CASH @ 12/95 84,345
ESTIMATED REPLACEMENT
RESERVE CASH @ 12/95 0
ACCOUNTS PAYABLE @ 11/95 (33,467) (33,467)
SUBTOTAL--NET CASH FLOW 0 181,175 181,077 196,810 212,816 2,586,843
DEVLPMNT/REFI/SALES FEES D 1.00% 5.00% 0 0 0 0 0 (322,173)
ADD'L PARTNERSHIP FUNDS DUE 0 0 0 0 0 0
ADD'L PARTNERSHIP FUNDS
REPAID 0 0 0 0 0 0
- ------- ------- ------- ------- ---------
CASH FLOW FROM PROPERTY
OPERATIONS 0 181,175 181,077 196,810 212,816 2,264,669
= ======= ======= ======= ======= =========
S/(U) S/(U) S/(U) S/(U) S/(U)
DUE AT OF CASH OF CASH OF CASH OF CASH OF CASH
CLOSING YR 6 YR 7 YR 8 YR 9 YR 10
Test Scales 6 7 8 9 10
Second Funding Test N N N N N
D/S "a" Test Multiplie 0 0 0 0 0
D/S "b" Test Multiplie 0 0 0 0 0
Counter "a"--w\"b" 0 0 0 0 0
Counter "b" Test 0 0 0 0 0
Counter "Current" 0 0 0 0 0
Counter "a"--w\current 0 0 0 0 0
Counter "Note" Test 0 0 0 0 0
NET OPERATING INCOME 0 0 0 0 0
DEFERRED MAINTENANCE/CAPITAL
IMPVMNTS 0 0 0 0 0
OTHER EXPENSES & GENERAL
RESERVES 0 0 0 0 0
NEW MORTGAGE IN YEAR 0 0 0 0 0
COST OF REFINANCE 0 0 0 0 0
DEBT SERVICE 1a 0 0 0 0 0
DEBT SERVICE 1b 0 0 0 0 0
ESCROWS DUE AT CLOSING
MORTGAGE BALLOON--PAYOFF 1a 0 0 0 0 0
MORTGAGE BALLOON--PAYOFF 1b 0 0 0 0 0
NET--REPLACEMENT RESERVE FUNDING/DRAWS
MORTGAGE--DEBT
MORTGAGE BALLOON--PAYOFF
ADD'L CASH FLOWS DUE
SALE OF PROPERTY IN YEAR 0 0 0 0 0
COST OF SALE IN YEAR 0 0 0 0 0
ADDITIONAL RESERVE
PROJECTED DEVELOPMENT COSTS
ACCRUED PROPERTY TAXES
@ 11/95
TAX ESCROW AS OF 11/95
ESTIMATED CASH @ 12/95
ESTIMATED REPLACEMENT
RESERVE CASH @ 12/95
ACCOUNTS PAYABLE @ 11/95
SUBTOTAL--NET CASH FLOW 0 0 0 0 0
DEVLPMNT/REFI/SALES FEES D 0 0 0 0 0
ADD'L PARTNERSHIP FUNDS DUE 0 0 0 0 0
ADD'L PARTNERSHIP FUNDS
REPAID 0 0 0 0 0
- - - - -
CASH FLOW FROM PROPERTY
OPERATIONS 0 0 0 0 0
= = = = =
15
MIDTREE ASSOCIATES
DISBURSEMENTS DETAIL
"HOLD SCENARIO" 5 YEARS
LP'S NON AFFILIATES 0 0 79,194 84,099 48,160 512,495 0 0
CH 0 0 0 0 0 0 0 0
HFGI 0 0 92,282 92,998 56,120 597,193 0 0
PHOENIX/INWOOD 0 0 0 0 0 0 0 0
GP'S NON HFGI/CH 0 0 275 292 167 1,780 0 0
CH 0 0 3 4 2 23 0 0
HFGI 0 0 70 74 42 451 0 0
PHOENIX/INWOOD 0 0 3,151 3,346 1,916 20,393 0 0
HFGI ADVANCES 0 181,175 6,100 3,733 36,120 384,368 0 0
OTHER 0 0 0 7,264 70,288 747,967 0 0
HFGI SALES COMMISSION & REFI FEES 0 0 0 0 0 322,173 0 0
HFGI ADVANCES FUNDED & REPAID B/
DISTRIBUTIONS 0 0 0 0 0 0 0 0
- ------- ------- ------- ------- --------- - -
TOTAL DISBURSEMENTS 0 181,175 181,077 196,810 212,816 2,586,843 0 0
= ======= ======= ======= ======= ========= = =
LP'S NON AFFILIATES 0 0 0 723,948
CH 0 0 0 0
HFGI 0 0 0 843,593
PHOENIX/INWOOD 0 0 0 0
GP'S NON HFGI/CH 0 0 0 2,514
CH 0 0 0 32
HFGI 0 0 0 637
PHOENIX/INWOOD 0 0 0 28,808
HFGI ADVANCES 0 0 0 611,496
OTHER 0 0 0 825,519
HFGI SALES COMMISSION & REFI FEES 0 0 0 322,173
HFGI ADVANCES FUNDED & REPAID B/
DISTRIBUTIONS 0 0 0 0
- - - ---------
TOTAL DISBURSEMENTS 0 0 0 3,358,721
= = = =========
MIDTREE ASSOCIATES
HFGI/AFFILIATES--DISBURSEMENTS DETAIL
"HOLD SCENARIO" 5 YEARS
Summary HFGI 0 181,175 98,452 101,805 92,282 1,304,185
Summary PHOENIX/INWOOD 0 0 3,151 3,346 1,916 20,393
Summary CH 0 0 3 4 2 23
---------- ---------- ------- ------- ------- ---------
TOTAL SUMMARY HFGI/CH/HPI 0 181,175 101,607 105,155 94,201 1,324,601
========== ========== ======= ======= ======= =========
PV OF HFGI/CH/SUMMARY 10.00% $1,214,495
Management Fee Profit
(4% out of 6%) 4.00% 0 40,862 42,195 43,469 44,775 46,119
========== ========== ======= ======= ======= =========
PV OF MGT FEE PROFIT 10.00% $ 163,896
SUMMARY HFGI/CH/HPI w/MGT FEE PROFIT
Summary HFGI w/MGT FEE PROFIT 0 222,037 140,647 145,274 137,057 1,350,304
Summary PHOENIX/INWOOD 0 0 3,151 3,346 1,916 20,393
----------
Summary CH 0 0 3 4 2 23
---------- ---------- ------- ------- ------- ---------
TOTAL SUMMARY HFGI/CH/HPI &
MGT FEE PROFIT 0 222,037 143,802 148,624 138,975 1,370,720
========== ========== ======= ======= ======= =========
PV OF MGT FEE PROFIT 10.00% $1,378,391
Summary HFGI 0 0 0 0 0 1,777,899
Summary PHOENIX/INWOOD 0 0 0 0 0 28,808
Summary CH 0 0 0 0 0 32
- - - - - ---------
TOTAL SUMMARY HFGI/CH/HPI 0 0 0 0 0 1,806,739
= = = = = =========
PV OF HFGI/CH/SUMMARY 10.00%
Management Fee Profit
(4% out of 6%) 4.00% 0 0 0 0 0 217,419
= = = = = =========
PV OF MGT FEE PROFIT 10.00%
SUMMARY HFGI/CH/HPI w/MGT FEE PROFIT
Summary HFGI w/MGT FEE PROFIT 0 0 0 0 0 1,995,319
Summary PHOENIX/INWOOD 0 0 0 0 0 28,808
Summary CH 0 0 0 0 0 32
- - - - - ---------
TOTAL SUMMARY HFGI/CH/HPI &
MGT FEE PROFIT 0 0 0 0 0 2,024,158
= = = = = =========
PV OF MGT FEE PROFIT 10.00%
16
AMOUNT REFLECTED AS "DUE AT CLOSING" BASED ON ACTUAL CLOSING STATEMENT OF PW
LOAN REFINANCE.
MIDTREE (PHOENIX SQ) APARTMENTS
ASSUMPTIONS
"HOLD SCENARIO" 5 YEARS
SALES CURRENT DEBT
Sale Date (Month, Year) 60/5 Maturity Date 01-Dec-00
Cap Rate 10.00% Maturity Amount
Cost of Sale--Non HFGI 1.50% Current Debt Driver 1
Cost of Sale--HFGI 5.00% Term Remaining
Replacement Reserve/Unit--Current $271
RR Annual % Incr 3.00% Current Balloon 25-Nov-95/4,200,000
Replacement Reserve/Unit--Sales $305 Monthly D/S--1st 60/31,111
Monthly D/S--1st
Monthly D/S--2nd
REFINANCE SCENARIO #"A" REFINANCE SCENARIO #"B"
Year of Refinance 0 Loan Proceeds 0
Cost of Refinance--Non HFGI 4.00% Cost of Refinance--Non HFGI 0
Replacement Reserve/Unit--Ref $271 Replacement Reserve/$ 0
220+T-Bill 8.30% 220 + T-Bill 8.10%
Constant 9.50% Constant 8.89%
Term (Months/Years) 0/0 Term (Months/Years) 0/0
Coverage Ratio 1.25 Coverage Ratio 1.25
Amo--Months 300 Amo--Months 360
@ CLOSING B/S DATA HFGI DISTRIBUTION NPV DATA
Accrued Property Taxes (24,499) Discount Rate 10.00%
Property Tax Escrow 33,645 NPV Dollars--HFGI/CH/HPI $1,214,495
Cash on Hand 80,966 NPV Dollars--Mgt Fee Profit $ 163,896
Replacement/Deficit Escrows 0 NPV $'s-HFGI/CH/HPI/Mgt Fee Profit $1,378,391
Accounts Payable (33,467)
17
NORTHTREE (CANDLEWICK) APARTMENTS
NET CASH FLOW
"HOLD SCENARIO" 5 YEARS
ACTUAL
1/25/95- 1996
ACTUAL ACTUAL 12/31/95 BUDGET PROJ
1993 1994 FISCAL YR YEAR 1 YEAR 2
------ ------ --------- ------ ------
RENT POTENTIAL 987,064 1,099,480 1,159,440 1,204,209 1,240,335
% increase 3.00% 11.39% 5.45% 3.86% 3.00%
+/- POTENTIAL (40,711) (35,135) (33,135) (20,562) (18,896)
% increase 4.12% 3.20% 2.86% 1.71% 1.52%
CONCESSIONS (632) (315) (3,375) (300) (1,240)
% 0.06% 0.03% 0.29% 0.02% 0.10%
VACANCY (30,006) (31,952) (34,092) (32,213) (37,210)
% 3.04% 2.91% 2.94% 2.68% 3.00%
DELINQUENT (6,949) (8,915) (8,000) (6,060) (6,009)
% 0.73% 0.84% 0.71% 0.52% 0.50%
---------- ---------- ---------- ---------- ----------
RENTAL INCOME 908,766 1,023,163 1,080,838 1,145,074 1,176,979
OTHER INCOME 158,353 171,132 136,271 144,455 148,789
% increase 3.00% 8.07% -20.37% 6.01% 3.00%
SPECIAL OPERATIONS
% increase 2.00%
---------- ---------- ---------- ---------- ----------
TOTAL INCOME 1,067,119 1,194,295 1,217,109 1,289,529 1,325,768
---------- ---------- ---------- ---------- ----------
CONTROLLABLE COSTS 220,361 219,153 215,638 229,704 236,595
% increase 3.00% -0.55% -1.60% 6.52% 3.00%
MANAGEMENT FEES 21,878 45.926% 60,855 64,476 66,288
% increase 5.00% 109.92% 32.51% 5.95% 2.81%
---------- ---------- ---------- ---------- ----------
UTILITIES 142,751 148,384 133,531 137,025 141,136
% increase 3.00% 3.95% -10.01% 2.62% 3.00%
TAXES 45,616 45,449 45,275 67,000 70,350
% increase 5.00% -0.37% 1.82% 44.79% 5.00%
INSURANCE 19,078 16,149 18,809 17,640 18,169
% increase 3.00% -15.35% 16.47% -6.22% 3.00%
---------- ---------- ---------- ---------- ----------
OVERHEAD 207,445 209,982 198,615 221,665 229,655
---------- ---------- ---------- ---------- ----------
TOTAL EXPENSES 449,684 475,061 475,108 515,845 532,538
---------- ---------- ---------- ---------- ----------
NET OPERATING INCOME 617,435 719,234 742,001 773,684 793,230
16.49% 3.17% 4.27% 2.53%
DEF MAINT/CAP IMPV/Per Unit--350 175,317 146,469 66,729 108,872 64,400
% increase 3.00%
---------- ---------- ---------- ---------- ----------
NET CASH FLOW B/DEBT SERV 442,118 572,765 675,272 664,812 728,830
DEBT SERVICE PAID (452,792) (490,417) (544,094)
---------- ---------- ----------
NET CASH FLOW A/DEBT (10,674) 82,348 131,178
PROJ PROJ PROJ
YEAR 3 YEAR 4 YEAR 5
------ ------ ------
RENT POTENTIAL 1,277,545 1,315,872 1,355,348
% increase 3.00% 3.00% 3.00%
+/- POTENTIAL (18,702) (19,009) (19,495)
% increase 1.46% 1.44% 1.44%
CONCESSIONS (1,278) (1,316) (1,355)
% 0.10% 0.10% 0.10%
VACANCY (38,326) (39,476) (40,660)
% 3.00% 3.00% 3.00%
DELINQUENT (6,190) (6,375) (6,567)
% 0.50% 0.50% 0.50%
---------- ---------- ----------
RENTAL INCOME 1,213,050 1,249,695 1,287,270
OTHER INCOME 153,252 157,850 162,585
% increase 3.00% 3.00% 3.00%
SPECIAL OPERATIONS
% increase
---------- ---------- ----------
TOTAL INCOME 1,366,302 1,407,545 1,449,856
---------- ---------- ----------
CONTROLLABLE COSTS 243,693 251,004 258,534
% increase 3.00% 3.00% 3.00%
MANAGEMENT FEES 68,315 70,377 72,493
% increase 3.06% 3.02% 3.01%
---------- ---------- ----------
UTILITIES 145,370 149,731 154,223
% increase 3.00% 3.00% 3.00%
TAXES 73,868 77,561 81,439
% increase 5.00% 5.00% 5.00%
INSURANCE 18,714 19,276 19,854
% increase 3.00% 3.00% 3.00%
---------- ---------- ----------
OVERHEAD 237,952 246,567 255,516
---------- ---------- ----------
TOTAL EXPENSES 549,960 567,948 586,542
---------- ---------- ----------
NET OPERATING INCOME 816,342 839,596 863,313
2.91% 2.85% 2.82%
DEF MAINT/CAP IMPV/Per Unit--350 66,332 68,322 70,372
% increase
---------- ---------- ----------
NET CASH FLOW B/DEBT SERV 750,010 771,274 792,942
DEBT SERVICE PAID
NET CASH FLOW A/DEBT
T-12 IS BASED ON 1995 PROPERTY TAX EXPENSE.
17
18
NORTHTREE (CANDLEWICK) APARTMENTS
RATIOS/PER UNIT AND PER SQ. FT. COMPARISONS
"HOLD SCENARIO" 5 YEARS
ACTUAL
1/25/95- 1996
ACTUAL 12/31/95 BUDGET PROJ PROJ PROJ PROJ
1994 FISCAL YR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
------ --------- ------ ------ ------ ------- ------
RENT POTENTIAL LESS CONCESSIONS PER UNIT 498 524 545 561 578 595 613
RENT POTENTIAL INCREASE PER UNIT 22 16 17 17 18
RENT POTENTIAL LESS CONCESSIONS PER SQ. FT $ 0.71 $ 0.75 $ 0.78 $ 0.80 $ 0.83 $ 0.85 $ 0.88
REVENUES/SQ. FT $ 0.77 $ 0.79 $ 0.83 $ 0.86 $ 0.88 $ 0.91 $ 0.94
EXPENSES PER UNIT 2,582 2,582 2,804 2,894 2,989 3,087 3,188
EXPENSES SQ. FT $ 3.69 $ 3.69 $ 4.00 $ 4.13 $ 4.27 $ 4.41 $ 4.55
CONTROLLABLE EXPENSES PER UNIT 1,191 1,172 1,248 1,286 1,324 1,364 1,405
CONTROLLABLE EXPENSES PER SQ. FT $ 1.70 $ 1.67 $ 1.78 $ 1.84 $ 1.89 $ 1.95 $ 2.01
OVERHEAD PER UNIT 1,141 1,079 1,205 1,248 1,293 1,340 1,389
OVERHEAD PER SQ. FT $ 1.63 $ 1.54 $ 1.72 $ 1.78 $ 1.85 $ 1.91 $ 1.98
EXPENSE TO REVENUE RATIO 39.78% 39.04% 40.00% 40.17% 40.25% 40.35% 40.46%
NOI PER UNIT 3,909 4,033 4,205 4,311 4,437 4,563 4,692
DEF MAINT/CAP X PER UNIT 796 363 592 350 361 371 382
CURRENT EFFECTIVE RENT RATE
BEGINNING "RENT ROLL" @ 1/1/96
SQUARE RENTAL RENT/ TOTAL TOTAL
UNIT TYPE NUMBER FEET RATE SQ. FT. SQ. FT. RENT
------ ------ ------ ------- ------- -----
A1 40 541 454 $ 0.84 21,640 $ 18,160
A2 40 582 484 $ 0.83 23,280 $ 19,360
A3 2 700 497 $ 0.71 1,400 $ 994
A4 2 720 537 $ 0.75 1,440 $ 1,074
A5 29 890 539 $ 0.61 25,810 $ 15,631
A6 39 900 622 $ 0.69 35,100 $ 24,268
A7 32 630 652 $ 1.03 20,160 $ 20,864
TOTAL 184
WEIGHTED AVERAGE 700 $ 545 $ 0.78 128,830 $ 100,351 per mth
$ 1,204,209 per year
18
19
NORTHTREE (CANDLEWICK) APARTMENTS
SOURCES & USES OF CASH FLOW
"HOLD SCENARIO" 5 YEARS
S/(U) S/(U) S/(U) S/(U) S/(U)
DUE AT OF CASH OF CASH OF CASH OF CASH OF CASH
CLOSING YR 1 YR 2 YR 3 YR 4 YR 5
------- ------- ------- -------- ------- -------
Test Scales 1 2 3 4 5
Second Funding Test N N N N N
D/S "a" Test Multiplier 0 0 0 0 0
D/S "b" Test Multiplier 1 1 1 1 1
Counter "a"--w\"b" 0 0 0 0 0
Counter "b" Test 12 12 12 12 12
Counter "Current" 0 0 0 0 0
Counter "a"--w\current 12 0 0 0 0
Counter "Note" Test 12 12 12 12 12
NET OPERATING INCOME 773,684 793,230 816,342 839,596 863,313
DEFERRED MAINTENANCE/CAPITAL
IMPVMNTS (108,872) (64,400) (66,332) (68,322) (70,372)
OTHER EXPENSES & GENERAL
RESERVES 100 (18,400) (18,952) (19,521) (20,106) (20,709)
NEW MORTGAGE IN YEAR 5,000,000 0 0 0 0 0
COST OF REFINANCE (125,000) 0 0 0 0 0
DEBT SERVICE 1a 0 0 0 0 0
DEBT SERVICE 1b (467,723) (467,723) (467,723) (467,723) (467,723)
ESCROWS DUE AT CLOSING 0 0
MORTGAGE BALLOON--PAYOFF 1a 0 0 0 0 0
MORTGAGE BALLOON--PAYOFF 1b 0 0 0 0 (4,556,384)
MORTGAGE--DEBT
MORTGAGE BALLOON--PAYOFF (4,850,000)
ADD'L CASH FLOWS DUE 0
SALE OF PROPERTY IN YEAR 0 0 0 0 8,314,882
COST OF SALE IN YEAR 0 0 0 0 (124,723)
ADDITIONAL RESERVE (5,727) 5,727
PROJECTED DEVELOPMENT COSTS
ACCRUED PROPERTY TAXES
@ 11/95 (32,105) (32,105)
TAX ESCROW AS OF 11/95 48,422 48,422
ESTIMATED CASH @ 12/95 0 128,461
ESTIMATED REPLACEMENT
RESERVE CASH @ 12/95 0
ACCOUNTS PAYABLE @ 11/95 (9,806) (9,806)
SUBTOTAL--NET CASH FLOW 25,000 301,422 242,154 262,767 283,445 3,950,522
S/(U) S/(U) S/(U) S/(U) S/(U)
OF CASH OF CASH OF CASH OF CASH OF CASH
DUE AT YR 6 YR 7 YR 8 YR 9 YR 10
CLOSING ------ -------- ------- ------- ------
Test Scales 6 7 8 9 10
Second Funding Test N N N N N
D/S "a" Test Multiplier 0 0 0 0 0
D/S "b" Test Multiplier (0) 0 0 0 0
Counter "a"--w\"b" 0 0 0 0 0
Counter "b" Test 0 0 0 0 0
Counter "Current" 0 0 0 0 0
Counter "a"--w\current 0 0 0 0 0
Counter "Note" Test 0 0 0 0 0
NET OPERATING INCOME 0 0 0 0 0
DEFERRED MAINTENANCE/CAPITAL
IMPVMNTS 0 0 0 0 0
OTHER EXPENSES & GENERAL
RESERVES 0 0 0 0 0
NEW MORTGAGE IN YEAR 0 0 0 0 0
COST OF REFINANCE 0 0 0 0 0
DEBT SERVICE 1a 0 0 0 0 0
DEBT SERVICE 1b 0 0 0 0 0
ESCROWS DUE AT CLOSING
MORTGAGE BALLOON--PAYOFF 1a 0 0 0 0 0
MORTGAGE BALLOON--PAYOFF 1b 0 0 0 0 0
MORTGAGE--DEBT
MORTGAGE BALLOON--PAYOFF
ADD'L CASH FLOWS DUE
SALE OF PROPERTY IN YEAR 0 0 0 0 0
COST OF SALE IN YEAR 0 0 0 0 0
ADDITIONAL RESERVE
PROJECTED DEVELOPMENT COSTS
ACCRUED PROPERTY TAXES
@ 11/95
TAX ESCROW AS OF 11/95
ESTIMATED CASH @ 12/95
ESTIMATED REPLACEMENT
RESERVE CASH @ 12/95
ACCOUNTS PAYABLE @ 11/95
SUBTOTAL--NET CASH FLOW 0 0 0 0 0
19
20
S/<U> S/<U> S/<U> S/<U> S/<U>
OF CASH OF CASH OF CASH OF CASH OF CASH
DUE AT CLOSING YR 1 YR 2 YR 3 YR 4 YR 5
-------------------------- -------- -------- -------- -------- ----------
DEVLPMNT/REFI/SALES FEES D 1.00% 5.00% (50,000) 0 0 0 0 (415,744)
ADD'L PARTNERSHIP FUNDS DUE 25,000 0 0 0 0 0
ADD'L PARTNERSHIP FUNDS
REPAID 0 (25,000) 0 0 0 0
---------- ------- ------- ------- ------- ------- ---------
CASH FLOW FROM PROPERTY
OPERATIONS 0 276,422 242,154 262,767 283,445 3,534,778
========== ======= ======= ======= ======= ======= =========
S/<U> S/<U> S/<U> S/<U> S/<U>
OF CASH OF CASH OF CASH OF CASH OF CASH
YR 6 YR 7 YR 8 YR 9 YR 10
---------- ------- ------- -------- --------
DEVLPMNT/REFI/SALES FEES D 0 0 0 0 0
ADD'L PARTNERSHIP FUNDS DUE 0 0 0 0 0
ADD'L PARTNERSHIP FUNDS
REPAID 0 0 0 0 0
---------- ------- ------- -------- --------
CASH FLOW FROM PROPERTY
OPERATIONS 0 0 0 0 0
========== ======= ======= ======== ========
20
21
NORTHTREE ASSOCIATES
DISBURSEMENTS DETAIL
"HOLD SCENARIO" 5 YEARS
LP'S NON AFFILIATES 0 0 12,610 35,100 37,862 697,978 0
CH 0 0 37 102 110 2,033 0
HFGI 0 0 737 2,051 2,213 40,788 0
PHOENIX/INWOOD 0 0 33,344 92,816 100,120 1,845,697 0
GP'S NON HFGI/CH 0 0 37 103 111 2,054 0
CH 0 0 0 1 1 26 0
HFGI 0 0 9 26 28 520 0
PHOENIX/INWOOD 0 0 425 1,183 1,276 23,527 0
HFGI ADVANCES 0 276,422 147,756 0 0 0 0
OTHER 0 0 47,199 131,383 141,722 922,156 0
HFGI SALES COMMISSION & REFI FEES 50,000 0 0 0 0 415,744 0
HFGI ADVANCES FUNDED & REPAID B/
DISTRIBUTIONS (25,000) 25,000 0 0 0 0 0
---------- ------- ------- ------- ------- --------- -------
TOTAL DISBURSEMENTS 25,000 301,422 242,154 262,767 283,445 3,950,522 0
========== ======= ======= ======= ======= ========= =======
NORTHTREE ASSOCIATES
HFGI/AFFILIATES--DISBURSEMENTS DETAIL
"HOLD SCENARIO" 5 YEARS
Summary HFGI 25,000 301,422 148,502 2,077 2,241 457,052 0
Summary PHOENIX/INWOOD 0 0 33,769 93,999 101,397 1,869,224 0
Summary CH 0 0 37 104 112 2,059 0
---------- ------- ------- ------- ------- --------- -------
TOTAL SUMMARY HFGI/CH/HPI 25,000 301,422 182,308 96,180 103,749 2,328,335 0
========== ======= ======= ======= ======= ========= =======
PV OF HFGI/CH/SUMMARY 10.00% $2,038,525
Management Fee Profit
(4% out of 6%) 4.00% 0 51,581 53,031 54,652 56,302 57,994 0
========== ======= ======== ======= ======= ========= =======
PV OF MGT FEE PROFIT 10.00% $206,245
SUMMARY HFGI/CH/HPI W/MGT FEE PROFIT
Summary HFGI w/MGT FEE PROFIT 25,000 353,004 201,533 56,729 58,543 515,046 0
Summary PHOENIX/INWOOD 0 0 33,769 93,999 101,397 1,869,224 0
Summary CH 0 0 37 104 112 2,059 0
---------- ------- ------- ------- ------- --------- -------
TOTAL SUMMARY HFGI/CH/HPI &
MGT FEE PROFIT 25,000 353,004 235,339 150,832 160,051 2,386,329 0
========== ======= ======= ======= ======= ========= =======
PV OF MGT FEE PROFIT 10.00% $2,244,769
NORTHTREE ASSOCIATES
DISBURSEMENTS DETAIL
"HOLD SCENARIO" 5 YEARS
LP'S NON AFFILIATES 0 0 0 0 783,549
CH 0 0 0 0 2,282
HFGI 0 0 0 0 45,789
PHOENIX/INWOOD 0 0 0 0 2,071,978
GP'S NON HFGI/CH 0 0 0 0 2,305
CH 0 0 0 0 29
HFGI 0 0 0 0 584
PHOENIX/INWOOD 0 0 0 0 26,411
HFGI ADVANCES 0 0 0 0 424,178
OTHER 0 0 0 0 1,242,461
HFGI SALES COMMISSION & REFI FEES 0 0 0 0 465,744
HFGI ADVANCES FUNDED & REPAID B/
DISTRIBUTIONS 0 0 0 0 0
-------- -------- -------- -------- ---------
TOTAL DISBURSEMENTS 0 0 0 0 5,065,310
======== ======== ======== ======== =========
NORTHTREE ASSOCIATES
HFGI/AFFILIATES--DISBURSEMENTS DETAIL
"HOLD SCENARIO" 5 YEARS
Summary HFGI 0 0 0 0 936,295
Summary PHOENIX/INWOOD 0 0 0 0 2,098,389
Summary CH 0 0 0 0 2,311
-------- -------- -------- -------- ---------
TOTAL SUMMARY HFGI/CH/HPI 0 0 0 0 3,036,995
======== ======== ======== ======== =========
PV OF HFGI/CH/SUMMARY 10.00%
Management Fee Profit
(4% out of 6%) 4.00% 0 0 0 0 273,560
======== ======== ======== ======== =========
PV OF MGT FEE PROFIT 10.00%
SUMMARY HFGI/CH/HPI W/MGT FEE PROFIT
Summary HFGI w/MGT FEE PROFIT 0 0 0 0 1,209,855
Summary PHOENIX/INWOOD 0 0 0 0 2,098,389
Summary CH 0 0 0 0 2,311
-------- -------- -------- -------- --------
TOTAL SUMMARY HFGI/CH/HPI &
MGT FEE PROFIT 0 0 0 0 3,310,554
======== ======== ======== ======== =========
PV OF MGT FEE PROFIT 10.00%
21
22
NORTHTREE (CANDLEWICK) APARTMENTS
ASSUMPTIONS
"HOLD SCENARIO" 5 YEARS
SALES CURRENT DEBT
Sale Date (Month, Year) 60 5 Maturity Date 01-Jan-99
Cap Rate 10.00% Maturity Amount 4,752,189
Cost of Sale--Non HFGI 1.50% Current Debt Driver 0
Cost of Sale--HFGI 5.00% Term Remaining
Replacement Reserve/Unit--Current $271
RR Annual % Incr 3.00% Current Balloon 25-Nov-95 4,850,000
Replacement Reserve/Unit--Sales $305 Monthly D/S--1st 40/39,417
Monthly D/S--1st
Monthly D/S--2nd
@ CLOSING B/S DATA HFGI DISTRIBUTION NPV DATA
Accrued Property Taxes (32,105) Discount Rate 10.00%
Property Tax Escrow 48,422 NPV Dollars--HFGI/CH/HPI $2,038,525
Cash on Hand 76,450 NPV Dollars--Mgt Fee Profit $206,245
Replacement/Deficit Escrows 0 NPV $'s-HFGI/CH/HPI/Mgt Fee Profit $2,244,769
Accounts Payable (9,806)
REFINANCE SCENARIO #"A" REFINANCE SCENARIO #"B"
Year of Refinance 0 Loan Proceeds 5,000,000
Cost of Refinance--Non HFGI 4.00% Cost of Refinance--Non HFGI 125,000
Replacement Reserve/Unit--Ref $271 Replacement Revenue/$ 0
220+T-Bill 8.30% Interest Rate 7.58%
Constant 9.50% Constant 9.35%
Term (Mnths/Yrs) 0/0 Term (Mnths/Yrs) 60/5
Coverage Ratio 1.25 Coverage Ratio 1.25
Amo--Months 300 Amo--Months 264
22
23
LANETREE
NET CASH FLOW CALCULATIONS
# of Units 299
BASE CASE
ASSUMPTIONS 1996 1997 1998
-------------------------- ----------- ----------- ---------
NET CASH FLOW CALC
PRELIMINARY 1996 OPER BUDGET - NOI 1,364,622 1,419,207 1,475,975
GROWTH RATE % 4.00% 4.00%
Adj Replacement Reserves to 300 0 0 (89,700)
Net Cap X/PR - (Net of Escrow Dep/Withdraw) 250 (74,750) (77,740) 0
Partnership Expense (10,175) (10,582) (11,005)
Debt Service 1st (761,205) (761,205) (761,205)
Debt Service 2nd (89,419) (89,419) (89,419)
--------- --------- ---------
ANNUAL CASH FLOW B/PARTNERSHIP LOAN D/S 429,074 480,262 524,647
Partnership Loan D/S (117,483) (117,483) (175,488)
Contribution Advances/Receipts To Cover Partnership Operations (24,245) (26,526) (18,730) (2,777)
Contribution Agreement Payments of Prior Period Contribution Receipts 0 0 0
Contribution Agreement Receipts of Prior Period Contribution Advances 16,716 2,091 13,227
--------- --------- ---------
ANNUAL CASH FLOW B/1ST PRIORITY 301,781 346,140 359,609
ADD'L 3RD PARTY ADVS TO COVER 1ST & 2ND PRIORITY DISTRIBUTION 10,327 0 0 0
--------- --------- ---------
ANNUAL CASH FLOW B/1ST PRIORITY; A/THIRD PARTY ADVANCES 301,781 346,140 359,609
1ST PRIORITY
90%-- To Hall L.P. (6% Preference) 90.00% (196,793) (196,793) (196,793)
9%-- To Common L.P. 9.00% (19,679) (19,679) (19,679)
1%-- To Common G.P. 1.00% (2,187) (2,187) (2,187)
--------- --------- ---------
ANNUAL CASH FLOW A/1ST PRIORITY 83,122 127,482 140,950
2ND PRIORITY
90%-- To Common L.P./MNote Related (Mgt N) 90.00% (36,248) (36,248) (36,248)
9%-- To Common L.P./Other 9.00% (3,625) (3,625) (3,625)
1%-- To Common G.P. 1.00% (403) (403) (403)
--------- --------- ---------
ANNUAL CASH FLOW A/2ND PRIORITY 42,846 87,206 100,675
3RD PRIORITY
100%-- To Hall L.P. (Partial Profit Participation) 100.00% (6,473) (6,473) (6,473)
--------- --------- ---------
ANNUAL CASH FLOW A/3RD PRIORITY 36,373 80,733 94,201
4TH PRIORITY
100%-- To Common L.P./MN Related (Mgt N) 100.00% (1,192) (1,192) (1,192)
--------- --------- ---------
ANNUAL CASH FLOW A/4TH PRIORITY 35,181 79,541 93,009
5TH PRIORITY
100%-- Repayment of Advances by Third Parties 100.00% (11,360) 0 0
--------- --------- ---------
ANNUAL CASH FLOW A/5TH PRIORITY 28,821 79,541 93,009
@ SALE
1999 2000 12/2000
----------- ----------- ----------
NET CASH FLOW CALC
PRELIMINARY 1996 OPER BUDGET - NOI 1,535,014 1,596,415 14,248,709
GROWTH RATE % 4.00% 4.00%
Adj Replacement Reserves to (93,288) (97,020)
Net Cap X/PR - (Net of Escrow Dep/Withdraw) 0 0
Partnership Expense (11,445) (11,903) (284,974)
Debt Service 1st (761,205) (761,205) (9,051,184)
Debt Service 2nd (89,419) (89,419) (925,659)
--------- --------- ----------
ANNUAL CASH FLOW B/PARTNERSHIP LOAN D/S 579,657 636,869 3,986,892
Partnership Loan D/S (175,488) (175,488) (1,024,818)
Contribution Advances/Receipts To Cover Partnership Operations (1,947) (1,074) 75,299
Contribution Agreement Payments of Prior Period Contribution Receipts 0 0 0
Contribution Agreement Receipts of Prior Period Contribution Advances 2,409 0 (34,443)
--------- --------- ----------
ANNUAL CASH FLOW B/1ST PRIORITY 404,632 460,307 3,002,930
ADD'L 3RD PARTY ADVS TO COVER 1ST & 2ND PRIORITY DISTRIBUTION 0 0 1,312,638
--------- --------- ----------
ANNUAL CASH FLOW B/1ST PRIORITY; A/THIRD PARTY ADVANCES 404,632 460,307 4,315,568
1ST PRIORITY
90%-- To Hall L.P. (6% Preference) (196,793) (196,793) (3,279,878)
9%-- To Common L.P. (19,679) (19,679) (327,988)
1%-- To Common G.P. (2,187) (2,187) (36,443)
--------- --------- ----------
ANNUAL CASH FLOW A/1ST PRIORITY 185,973 241,648 671,259
2ND PRIORITY
90%-- To Common L.P./MNote Related (Mgt N) (36,248) (36,248) (604,133)
9%-- To Common L.P./Other (3,625) (3,625) (60,413)
1%-- To Common G.P. (403) (403) (6,713)
--------- --------- ----------
ANNUAL CASH FLOW A/2ND PRIORITY 145,698 201,373 0
3RD PRIORITY
100%-- To Hall L.P. (Partial Profit Participation) (6,473) (6,473) 0
--------- --------- ----------
ANNUAL CASH FLOW A/3RD PRIORITY 139,225 194,900 0
4TH PRIORITY
100%-- To Common L.P./MN Related (Mgt N) (1,192) (1,192) 0
--------- --------- ----------
ANNUAL CASH FLOW A/4TH PRIORITY 138,032 193,707 0
5TH PRIORITY
100%-- Repayment of Advances by Third Parties 0 0 0
--------- --------- ----------
ANNUAL CASH FLOW A/5TH PRIORITY 138,032 193,707 0
23
24
BASE CASE
ASSUMPTIONS 1996 1997 1998
-------------------------- ----------- ----------- ---------
6TH PRIORITY
20%-- To Hall L.P. (Profit Participation) 20.00% (4,764) (15,908) (18,602)
-- To Common L.P. Mgmt Note Related (Profit Participation) (878) (2,930) (3,426)
79%-- To Common L.P.--Other (Profit Participation) 79.00% (17,952) (59,943) (70,094)
1%-- To Common G.P. (Profit Participation) 1.00% (227) (759) (887)
80.00% 0 0 0
SUMMARY
Summary --To Hall L.P. 208,030 219,174 221,868
Summary --To Common L.P. Mgmt Note Related 38,318 40,371 40,867
Summary --To Common L.P. Other 41,256 83,248 93,398
Summary --To Repayment of Advances by Third Parties 11,360 0 0
Summary --To Common G.P. 2,817 3,348 3,477
0 0 0
Cash Flow to Common G.P. (Net of NPF Advances/Repayments) 55,432 86,596 96,874
NPV of Common G.P. ERR
@ SALE
1999 2000 12/2000
----------- ----------- ----------
6TH PRIORITY
20%-- To Hall L.P. (Profit Participation) (27,606) (38,741) 0
-- To Common L.P. Mgmt Note Related (Profit Participation) (5,085) (7,136) 0
79%-- To Common L.P.--Other (Profit Participation) (104,024) (145,982) 0
1%-- To Common G.P. (Profit Participation) (1,317) (1,848) 0
0 (0) 0
SUMMARY
Summary --To Hall L.P. 230,872 242,007 3,279,878
Summary --To Common L.P. Mgmt Note Related 42,525 44,576 604,133
Summary --To Common L.P. Other 127,328 169,286 388,401
Summary --To Repayment of Advances by Third Parties 0 0 0
Summary --To Common G.P. 3,906 4,437 43,156
0 0 0
Cash Flow to Common G.P. (Net of NPF Advances/Repayments) 131,234 173,723 (881,081)
NPV of Common G.P.
24
25
TWINTREE
NET CASH FLOW CALCULATIONS
# of Units 186
BASE CASE
ASSUMPTIONS 1996 1997 1998
-------------------------- --------- ----------- -----------
NET CASH FLOW CALC
PRELIMINARY 1996 OPER BUDGET - NOI 834,510 867,890 902,606
GROWTH RATE % 4.00% 4.00%
Adj Replacement Reserves to 300 0 0 (55,800)
Net Cap X/RR - (Net of Escrow Dep/Withdraw) 450 (75,333) (78,346) 0
Partnership Expense (10,175) (10,582) (11,005)
Debt Service 1st (492,206) (492,206) (492,206)
Debt Service 2nd (57,975) (57,975) (57,975)
-------- -------- --------
ANNUAL CASH FLOW B/PARTNERSHIP LOAN D/S 198,821 228,781 285,620
Partnership Loan D/S (75,855) (75,855) (113,307)
Contribution Advances/Receipts To Cover Partnership Operations (8,765) (10,468) (7,895) (1,371)
Contribution Agreement Payments of Prior Period Contribution Receipts 0 0 0
Contribution Agreement Receipts of Prior Period Contribution Advances 6,597 882 6,527
-------- -------- --------
ANNUAL CASH FLOW B/1ST PRIORITY 119,095 145,912 177,470
ADD'L 3RD PARTY ADVS TO COVER 1ST & 2ND PRIORITY DISTRIBUTIONS 20,889 0 0 0
------ -------- -------- --------
ANNUAL CASH FLOW B/1ST PRIORITY; A/THIRD PARTY ADVANCES 119,095 145,912 177,470
======== ======== ========
1ST PRIORITY
90%-- To Hall L.P. (6% Preference) 90.00% (84,218) (84,218) (84,218)
9%-- To Common L.P. 9.00% (8,422) (8,422) (8,422)
1%-- To Common G.P. 1.00% (936) (936) (936)
-------- -------- --------
ANNUAL CASH FLOW A/1ST PRIORITY 25,519 52,337 83,894
2ND PRIORITY
90%-- To Common L.P./MNote Related (Mgt N) 90.00% (22,469) (22,469) (22,469)
9%-- To Common L.P./Other 9.00% (2,247) (2,247) (2,247)
1%-- To Common G.P. 1.00% (250) (250) (250)
-------- -------- --------
ANNUAL CASH FLOW A/2ND PRIORITY 553 27,371 58,929
3RD PRIORITY
100%-- To Hall L.P. (Partial Profit Participation) 100.00% 553 (2,964) (2,964)
-------- -------- --------
ANNUAL CASH FLOW A/3RD PRIORITY 0 24,408 55,965
4TH PRIORITY
100%-- To Common L.P./MN Related (Mgt N) 100.00% 0 (791) (791)
-------- -------- --------
ANNUAL CASH FLOW A/4TH PRIORITY 0 23,617 55,175
5TH PRIORITY
100%-- Repayment of Advances by Third Parties 100.00% 0 (23,617) (1,825)
-------- -------- --------
ANNUAL CASH FLOW A/5TH PRIORITY 0 0 53,349
6TH PRIORITY
20%-- To Hall L.P. (Profit Participation) 20.00% 0 0 (10,670)
-- To Common L.P. Mgmt Note Related (Profit Participation) 0 0 (2,847)
79%-- To Common L.P.--Other (Profit Participation) 79.00% 0 0 (39,335)
1%-- To Common G.P. (Profit Participation) 1.00% 0 0 (498)
80.00% 0 0 0
SUMMARY
Summary -- To Hall L.P. 84,771 87,182 97,852
Summary -- To Common L.P. Mgmt Note Related 22,469 23,260 26,106
Summary -- To Common L.P. Other 10,669 10,669 50,004
Summary -- To Repayment of Advances by Third Parties 0 23,617 1,825
Summary -- To Common G.P. 1,185 1,185 1,683
0 0 0
Cash Flow to Common G.P. (Net of NPF Advances/Repayments) 11,854 35,471 53,512
NPV of Common G.P. ERR ERR
@ SALE
1999 2000 12/2000
----------- ----------- ----------
NET CASH FLOW CALC
PRELIMINARY 1996 OPER BUDGET - NOI 938,710 976,259 8,701,838
GROWTH RATE % 4.00% 4.00%
Adj Replacement Reserves to (58,032) (60,353)
Net Cap X/RR - (Net of Escrow Dep/Withdraw) 0 0
Partnership Expense (11,445) (11,903) (174,037)
Debt Service 1st (492,206) (492,206) (5,852,629)
Debt Service 2nd (57,975) (57,975) (600,152)
-------- -------- ----------
ANNUAL CASH FLOW B/PARTNERSHIP LOAN D/S 319,052 353,821 2,075,020
Partnership Loan D/S (113,307) (113,307) (661,693)
Contribution Advances/Receipts To Cover Partnership Operations (991) (560) 30,050
Contribution Agreement Payments of Prior Period Contribution Receipts 0 0 0
Contribution Agreement Receipts of Prior Period Contribution Advances 1,226 0 (15,232)
-------- -------- ----------
ANNUAL CASH FLOW B/1ST PRIORITY 205,980 239,954 1,428,145
ADD'L 3RD PARTY ADVS TO COVER 1ST & 2ND PRIORITY DISTRIBUTIONS 0 0 547,544
-------- -------- ----------
ANNUAL CASH FLOW B/1ST PRIORITY; A/THIRD PARTY ADVANCES 205,980 239,954 1,975,689
======== ======== ==========
1ST PRIORITY
90%-- To Hall L.P. (6% Preference) (84,218) (84,218) (1,403,636)
9%-- To Common L.P. (8,422) (8,422) (140,364)
1%-- To Common G.P. (936) (936) (15,596)
-------- -------- ----------
ANNUAL CASH FLOW A/1ST PRIORITY 112,405 146,379 416,093
2ND PRIORITY
90%-- To Common L.P./MNote Related (Mgt N) (22,469) (22,469) (374,484)
9%-- To Common L.P./Other (2,247) (2,247) (37,448)
1%-- To Common G.P. (250) (250) (4,161)
-------- -------- ----------
ANNUAL CASH FLOW A/2ND PRIORITY 87,439 121,413 0
3RD PRIORITY
100%-- To Hall L.P. (Partial Profit Participation) (2,964) (2,964) 0
------ -------- ----------
ANNUAL CASH FLOW A/3RD PRIORITY 84,475 118,450 0
4TH PRIORITY
100%-- To Common L.P./MN Related (Mgt N) (791) (791) 0
-------- -------- ----------
ANNUAL CASH FLOW A/4TH PRIORITY 83,685 117,659 0
5TH PRIORITY
100%-- Repayment of Advances by Third Parties 0 0 0
-------- -------- ----------
ANNUAL CASH FLOW A/5TH PRIORITY 83,685 117,659 0
6TH PRIORITY
20%-- To Hall L.P. (Profit Participation) (16,737) (23,532) 0
-- To Common L.P. Mgmt Note Related (Profit Participation) (4,465) (6,278) 0
79%-- To Common L.P.--Other (Profit Participation) (61,701) (86,751) 0
1%-- To Common G.P. (Profit Participation) (781) (1,098) 0
0 0 0
SUMMARY
Summary -- To Hall L.P. 103,919 110,713 1,403,636
Summary -- To Common L.P. Mgmt Note Related 27,725 29,538 374,484
Summary -- To Common L.P. Other 72,370 97,420 117,812
Summary -- To Repayment of Advances by Third Parties 0 0 0
Summary -- To Common G.P. 1,966 2,284 19,757
0 0 0
Cash Flow to Common G.P. (Net of NPF Advances/Repayments) 74,337 99,703 (349,975)
NPV of Common G.P.
25
26
COACHTREE
NET CASH FLOW CALCULATIONS
# of Units 198
BASE CASE
ASSUMPTIONS 1996 1997 1998
-------------------------- ----------- ----------- --------
NET CASH FLOW CALC
PRELIMINARY 1996 OPER BUDGET - NOI 813,396 846,493 880,353
GROWTH RATE % 4.00% 4.00%
Adj Replacement Reserves to 300 0 0 (59,400)
Net Cap X/RR - (Net of Escrow Dep/Withdraw) 678 (134,242) (139,612) 0
Partnership Expense (10,175) (10,582) (11,005)
Debt Service 1st (438,292) (438,292) (438,292)
Debt Service 2nd (51,096) (51,096) (51,096)
-------- -------- --------
ANNUAL CASH FLOW B/PARTNERSHIP LOAN D/S 180,130 206,911 320,559
Partnership Loan D/S (67,530) (67,530) (100,871)
Contribution Advances/Receipts To Cover Partnership Operations (13,835) (9,586) (7,196) (1,747)
Contribution Agreement Payments of Prior Period Contribution Receipts 0 0 0
Contribution Agreement Receipts of Prior Period Contribution Advances 6,041 804 8,322
-------- -------- --------
ANNUAL CASH FLOW B/1ST PRIORITY 109,056 132,989 226,263
ADD'L 3RD PARTY ADVS TO COVER 1ST & 2ND PRIORITY DISTRIBUTION 183 0 0 0
-------- -------- --------
ANNUAL CASH FLOW B/1ST PRIORITY; A/THIRD PARTY ADVANCES 109,056 132,989 226,263
======== ======== ========
1ST PRIORITY
90%-- To Hall L.P. (6% Preference) 90.00% (67,090) (67,090) (67,090)
9%-- To Common L.P. 9.00% (6,709) (6,709) (6,709)
1%-- To Common G.P. 1.00% (745) (745) (745)
-------- -------- --------
ANNUAL CASH FLOW A/1ST PRIORITY 34,511 58,445 151,719
2ND PRIORITY
90%-- To Common L.P./MNote Related (Mgt N) 90.00% (21,392) (21,392) (21,392)
9%-- To Common L.P./Other 9.00% (2,139) (2,139) (2,139)
1%-- To Common G.P. 1.00% (238) (238) (238)
-------- -------- --------
ANNUAL CASH FLOW A/2ND PRIORITY 10,742 34,676 127,950
3RD PRIORITY
100%-- To Hall L.P. (Partial Profit Participation) 100.00% (2,458) (2,458) (2,458)
-------- -------- --------
ANNUAL CASH FLOW A/3RD PRIORITY 8,285 32,218 125,492
4TH PRIORITY
100%-- To Common L.P./MN Related (Mgmt N) 100.00% (784) (784) (784)
-------- -------- --------
ANNUAL CASH FLOW A/4TH PRIORITY 7,501 31,434 124,709
5TH PRIORITY
100%-- Repayment of Advances by Third Parties 100.00% (201) 0 0
-------- -------- --------
ANNUAL CASH FLOW A/5TH PRIORITY 7,300 31,434 124,709
@ SALE
1999 2000 12/2000
--------- ----------- ----------
NET CASH FLOW CALC
PRELIMINARY 1996 OPER BUDGET - NOI 915,567 952,190 8,425,718
GROWTH RATE % 4.00% 4.00%
Adj Replacement Reserves to (61,776) (64,247)
Net Cap X/RR - (Net of Escrow Dep/Withdraw) 0 0
Partnership Expense (11,445) (11,903) (168,514)
Debt Service 1st (438,292) (438,292) (5,211,560)
Debt Service 2nd (51,096) (51,096) (528,948)
-------- -------- ----------
ANNUAL CASH FLOW B/PARTNERSHIP LOAN D/S 352,957 386,651 2,516,695
Partnership Loan D/S (100,871) (100,871) (589,068)
Contribution Advances/Receipts To Cover Partnership Operations (1,214) (665) 34,244
Contribution Agreement Payments of Prior Period Contribution Receipts 0 0 0
Contribution Agreement Receipts of Prior Period Contribution Advances 1,502 0 (16,669)
-------- -------- ----------
ANNUAL CASH FLOW B/1ST PRIORITY 252,375 285,115 1,945,202
ADD'L 3RD PARTY ADVS TO COVER 1ST & 2ND PRIORITY DISTRIBUTION 0 0 0
-------- -------- ----------
ANNUAL CASH FLOW B/1ST PRIORITY; A/THIRD PARTY ADVANCES 252,375 285,115 1,945,202
======== ======== ==========
1ST PRIORITY
90%-- To Hall L.P. (6% Preference) (67,090) (67,090) (1,118,164)
9%-- To Common L.P. (6,709) (6,709) (111,816)
1%-- To Common G.P. (745) (745) (12,424)
-------- -------- ----------
ANNUAL CASH FLOW A/1ST PRIORITY 177,830 210,571 702,797
2ND PRIORITY
90%-- To Common L.P./MNote Related (Mgt N) (21,392) (21,392) (356,534)
9%-- To Common L.P./Other (2,139) (2,139) (36,653)
1%-- To Common G.P. (238) (238) (3,961)
-------- -------- ----------
ANNUAL CASH FLOW A/2ND PRIORITY 154,061 186,802 306,648
3RD PRIORITY
100%-- To Hall L.P. (Partial Profit Participation) (2,458) (2,458) (40,964)
-------- -------- ----------
ANNUAL CASH FLOW A/3RD PRIORITY 151,604 183,344 265,685
4TH PRIORITY
100%-- To Common L.P./MN Related (Mgmt N) (784) (784) (13,062)
-------- -------- ----------
ANNUAL CASH FLOW A/4TH PRIORITY 150,820 183,560 252,623
5TH PRIORITY
100%-- Repayment of Advances by Third Parties 0 0 0
-------- -------- ----------
ANNUAL CASH FLOW A/5TH PRIORITY 150,820 183,560 252,623
26
27
6TH PRIORITY
20%-- To Hall L.P. (Profit Participation) 20.00% (1,460) (6,287) (24,942)
-- To Common L.P. Mgmt Note Related (Profit Participation) (466) (2,005) (7,953)
79%-- To Common L.P.--Other (Profit Participation) 79.00% (5,307) (22,854) (90,666)
1%-- To Common G.P. (Profit Participation) 1.00% (67) (289) (1,148)
80.00% 0 0 0
SUMMARY
Summary --To Hall L.P. 71,008 75,835 94,489
Summary --To Common L.P. Mgmt Note Related 22,641 24,180 30,129
Summary --To Common L.P. Other 14,155 31,702 99,515
Summary --To Repayment of Advances by Third Parties 201 0 0
Summary --To Common G.P. 1,050 1,272 2,131
----- ----- -----
0 0 0
Cash Flow to Common G.P. (Net of NPF Advances/Repayments) 15,407 32,974 101,645
NPV of Common G.P. ERR ERR
6TH PRIORITY
20%-- To Hall L.P. (Profit Participation) (30,164) (36,712) (50,525)
-- To Common L.P. Mgmt Note Related (Profit Participation (9,618) (11,706) (16,110)
79%-- To Common L.P.--Other (Profit Participation) 109,650) (133,453) (183,663)
1%-- To Common G.P. (Profit Participation) (1,388) (1,689) (2,325)
0 0 0
SUMMARY
Summary --To Hall L.P. 99,712 106,260 1,209,652
Summary --To Common L.P. Mgmt Note Related 31,794 33,882 385,706
Summary --To Common L.P. Other 118,498 142,301 331,133
Summary --To Repayment of Advances by Third Parties 0 0 0
Summary --To Common G.P. 2,371 2,672 18,710
------- ------- ---------
0 0 0
Cash Flow to Common G.P. (Net of NPF Advances/Repayments) 120,869 144,974 349,844
NPV of Common G.P. ERR
27
28
Arrowtree Apartments -- HIMF Value "As Is" Discounted Cash Flow
Dobie Rd., Okemos, Michigan
ASSUMPTIONS FROM MARKET ANALYSIS EXPENSES PER SF
-------------------------------- -------- ------
Management $ 38,114 $ 0.30
Gross Rental Income $813,360 Payroll 86,162 $ 0.68
No Units 114 Taxes 81,346 $ 0.64
Other Income $ 22,016 Insurance 16,456 $ 0.13
Stabilized Occupancy 93.00% Utilities 56,048 $ 0.44
Total Square Feet 126,294 M/R & Res 137,199 $ 1.09
Expense Growth Rate 4.00% Adv. Pro 24,263 $ 0.19
Resale Cap Rate 11.00% Admin. 22,480 $ 0.18
-------- --------
TOTAL $462,068 $ 3.65
TIME PERIOD YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6
- ------------------------------ ----------- ----------- ----------- ----------- ----------- -----------
Total Rental Income .......... $ 813,360 $ 845,894 $ 879,730 $ 914,919 $ 951,516 $ 989,577
% Increase ................... 0.00% 4.00% 4.00% 4.00% 4.00% 4.00%
Other Income ................. $ 22,016 $ 22,897 $ 23,813 $ 24,765 $ 25,756 $ 26,786
% Increase ................... 0.00% 4.00% 4.00% 4.00% 4.00% 4.00%
Gross Potential Income ....... $ 835,376 $ 868,791 $ 903,543 $ 939,684 $ 977,272 $ 1,016,363
Vacancy Rate ................. 5.00% 7.00% 7.00% 7.00% 7.00% 7.00%
Vacancy Loss ................. $ (41,775) $ (60,815) $ (63,248) $ (65,778) $ (68,409) $ (71,145)
----------- ----------- ----------- ----------- ----------- -----------
Effective Gross Income ....... $ 793,601 $ 807,976 $ 840,295 $ 873,906 $ 908,863 $ 945,218
Total Expenses ............... $ (462,068) $ (480,551) $ (499,773) $ (519,764) $ (540,554) $ (562,176)
Per/Sq. Ft ................... $ (3.66) $ (3.81) $ (3.96) $ (4.12) $ (4.28) $ (4.45)
----------- ----------- ----------- ----------- ----------- -----------
Net Operating Income ......... $ 331,533 $ 327,425 $ 340,522 $ 354,142 $ 368,309 $ 383,042
Less: Deferred Maintenance
O&M Program Cost .......... $ (30,000)
Less: 1st Lien ............... $ (245,371) $ (245,371) $ (245,371) $ (245,371) $ (245,371)
Reversion-- 11.00% ........... $ 3,482,197
Selling Expense @ 3.00% ...... $ (104,466)
Less: 1st Lien Principal ..... $(2,524,777)
----------- ----------- ----------- ----------- -----------
Fund Available for Priorities $ 56,162 $ 82,054 $ 95,151 $ 108,771 $ 975,892
Less: 1st Priority
Capital Call from Investors $ (56,162) $ (82,054) $ (33,659)
Less: 2nd Priority
HIMF Deferred Interest .... $ (61,493) $ (108,771) $ (376,973)
Less: 3rd Priority
HFGI Advances (P&I) ....... $ (120,560)
Less: 4th Priority
Cash Flow to Investors .... $ (478,358)
Net Cash Flow ................ $ 0 $ 0 $ 0 $ 0 $ 0
----------- ----------- ----------- ----------- -----------
Total HIMF Cash Flow ......... $ 0 $ 0 $ 61,493 $ 108,771 $ 376,973
=========== =========== =========== =========== ===========
Discount Rate ................ 11.00% 11.50% 12.00% 12.50% 13.00% 13.50%
----------- ----------- ----------- ----------- ----------- -----------
PW of HIMF Cash Flow ......... $ 340,329 $ 333,479 $ 326,800 $ 320,287 $ 313,935 $ 307,739
Discounted @ 50% .......... $ 170,165 $ 166,740 $ 163,400 $ 160,143 $ 156,967 $ 153,870
Discounted @ 60% .......... $ 136,132 $ 133,392 $ 130,720 $ 128,115 $ 125,574 $ 123,096
1
29
BRAMBLETREE -- HIMF VALUE "AS IS" DISCOUNTED CASH FLOW
1802 APOLLO RD.
GARLAND, TEXAS
- --------------------------------------------------------------------------------
NET RENTABLE AREA 196,440 OPERATING EXPENSES (YEAR ONE) PER SF
NUMBER OF UNITS 236
STABILIZED OCCUPANCY 93.00% MANAGEMENT $ 71,313 $0.36
EXPENSE GROWTH RAT 4.00% REAL ESTATE TAXES $ 109,135 $0.56
RESALE CAP RATE 10.50% INSURANCE $ 26,173 $0.13
UTILITIES $ 95,347 $0.49
MAINTENANCE/REPAIRS $ 227,195 $1.16
GENERAL/ADMIN $ 59,019 $0.30
PAYROLL $ 130,920 $0.67
--------- -----
TOTAL OPERATING EXPENSES $ 719,102 $3.66
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6
- --------------------------------- ------------- ------------ ------------ ----------- ------------- -----------
Rental Income.................... $1,442,914 $1,500,631 $1,560,656 $1,623,082 $ 1,688,005 $ 1,755,526
% Increase....................... 0.00% 4.00% 4.00% 4.00% 4.00% 4.00%
Plus: Other Income.............. 24,198 25,166 26,173 27,219 28,308 29,441
% Increase....................... 0.00% 4.00% 4.00% 4.00% 4.00% 4.00%
Gross Potential Income........... $1,467,112 $1,525,796 $1,586,828 $1,650,301 $ 1,716,314 $ 1,784,966
Less: Vacancy/Collection Loss.... (118,732) (106,806) (111,078) (115,521) (120,142) (124,948)
---------- ---------- ---------- ---------- ----------- -----------
% of Gross Potential Income...... 8.09% 7.00% 7.00% 7.00% 7.00% 7.00%
Effective Gross Income........... $1,348,380 $1,418,991 $1,475,750 $1,534,780 $ 1,596,172 $ 1,660,018
Total Operating Expenses......... $ (719,102) $ (747,866) $ (777,781) $ (808,892) $ (841,248) $ (874,898)
---------- ---------- ---------- ---------- ----------- -----------
Per/Sq. Ft....................... $ (3.66) $ (3.81) $ (3.96) $ (4.12) $ (4.28) $ (4.45)
Net Operating Income............. $ 629,278 $ 671,125 $ 697,970 $ 725,888 $ 754,924 $ 785,121
Less: 1st Lien FNMA.............. $ (591,000)
Cash Flow PMT-1st Lien........ $ (38,278)
Less: New First Lien............. $ (398,203) $ (398,203) $ (398,203) $ (398,203)
Cash Flow........................ $ 0 $ 272,922 $ 299,767 $ 327,685 $ 356,721
Reversion @ 10.50%............... $ 7,477,342
Less: Selling Expense @ 3.00%.... $ (224,320)
Less: New Lien Principal......... $(5,290,514)
===========
$ 1,962,508
Cash Flow with Reversion......... $ 0 $ 272,922 $ 299,767 $ 327,685 $ 2,319,229
Less: 1st Priority
HIMF/HFGI Refinancing Payback
66.1% HIMF From Cash Flow..... $ 0 $ (180,401) $ (198,146) $ (216,600) $ (169,708)
33.9% HFGI From Cash Flow..... $ 0 $ (92,520) $ (101,621) $ (111,085) $ (87,036)
Funds Available for 2nd Priority. $ 0 $ 0 $ 0 $ 0 $ 2,062,484
(Cash Flow & Reversion)
Less: 2nd Priority
HFGI Pro Rata (16.95%)........ $ 0 $ 0 $ 0 $ 0 $ (349,591)
HMIF Pro Rata (33.05%)........ $ 0 $ 0 $ 0 $ 0 $ (681,651)
---------- ---------- ---------- ---------- -----------
LP/GP Pro Rata (50%).......... $ 0 $ 0 $ 0 $ 0 $(1,031,242)
HIMF 1st Lien Refinancing Cost... $ 764,854
----------
Total HIMF Cash Flow............. $ (764,854) $ 180,401 $ 198,146 $ 216,600 $ 851,359
========== ========== ========== ========== ===========
Discount Rate.................... 11.00% 11.50% 12.00% 12.50% 13.00%
---------- ---------- ---------- ---------- -----------
PW of HIMF Cash Flow............. $ 250,164 $ 236,234 $ 222,683 $ 209,499 $ 196,672
Discounted @ 50%.............. $ 125,082 $ 118,117 $ 111,341 $ 104,749 $ 98,336
Discounted @ 60%.............. $ 100,065 $ 94,493 $ 89,073 $ 83,800 $ 78,669
CXA\03032\0068DOCS\VAL-RPT.CHT
2
30
PHOENIX SQUARE -- HIMF VALUE "AS IS" DISCOUNTED CASH FLOW
7000 PHOENIX AVE., NE
ALBUQUERQUE, NEW MEXICO
NET RENTABLE AREA 116,345 OPERATING EXPENSES (YEAR ONE) PER SF
NUMBER OF UNITS 122
FIRST YEAR OCCUPANCY 95.00% MANAGEMENT $ 39,138 $0.34
EXPENSE GROWTH RATE 4.00% AD/PROMOTION $ 24,850 $0.21
RESALE CAP RATE 11.00% REAL ESTATE TAXES $ 50,268 $0.43
INSURANCE $ 15,572 $0.13
UTILITIES $ 32,697 $0.28
MAINTENANCE/REPAIRS $116,463 $1.00
GENERAL/ADMIN. $ 28,313 $0.24
PAYROLL $ 78,709 $0.68
-------- -----
TOTAL OPERATING EXPENSES $386,010 $3.32
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6
- --------------------------------- ---------- ---------- ------------ ------------ ------------ -----------
Rental Income.................... $ 921,670 $ 958,537 $ 996,878 $ 1,036,753 $ 1,078,224 $ 1,121,352
% Increase....................... 0.00% 4.00% 4.00% 4.00% 4.00% 4.00%
Plus: Other Income.............. 30,947 32,185 33,472 34,811 36,204 37,652
% Increase....................... 0.00% 4.00% 4.00% 4.00% 4.00% 4.00%
Gross Potential Income........... $ 952,617 $ 990,722 $1,030,351 $ 1,071,565 $ 1,114,427 $ 1,159,004
Less: Vacancy/Collection Loss.... (69,107) (49,536) (51,518) (53,578) (55,721) (57,950)
% of Gross Potential Income...... 7.25% 5.00% 5.00% 5.00% 5.00% 5.00%
--------- --------- ---------- ----------- ----------- -----------
Effective Gross Income........... $ 883,510 $ 941,186 $ 978,833 $ 1,017,986 $ 1,058,706 $ 1,101,054
Less Operating Expenses.......... $(386,010) $(401,450) $ (417,508) $ (434,209) $ (451,577) $ (469,640)
Per Square Foot.................. $ (3.32) $ (3.45) $ (3.59) $ (3.73) $ (3.88) $ (4.04)
Net Operating Incom.............. $ 497,500 $ 539,735 $ 561,325 $ 583,778 $ 607,129 $ 631,414
Less: 1st Lien-- ATENA........... $(373,337) $(373,337) $ (373,337) $ (373,337) $ (373,337)
Reversion @ 11.00%............... $ 5,740,126
Less: Selling Expense @ 3.00%.... $ (172,204)
Less: 1st Lien Balance........... $(3,996,571)
Net Reversion.................... $ 1,571,351
===========
Cash Flow with Reversion......... $ 124,163 $ 166,398 $ 187,988 $ 210,441 $ 1,805,143
Less: 1st Priority
HFGI Post Petition Loan....... $ (462)
Less: 2nd Priority
LP Capital & Preferred........ $(123,701) $(166,398) $ (59,592)
Less: 3rd Priority
HFGI Prorata (16.7%).......... $ (21,382) $ (35,073) $ (300,856)
HIMF Prorata (33.3%).......... $ (42,765) $ (70,147) $ (601,714)
---------- ----------- -----------
LP/GP Prorata (50%)........... $ (64,148) $ (105,221) $ (902,573)
Net Cash Flow ................... $ 0 $ 0 $ 0 $ 0 $ 0
Total HIMF Cash Flow............. $ 0 $ 0 $ 42,765 $ 70,147 $ 601,714
========= ========= ========== =========== ===========
Discount Rate.................... 11.00% 11.50% 12.00% 12.50% 13.00% 14.00%
--------- --------- ---------- ----------- ----------- -----------
PW of HIMF Cash Flow............. $ 434,565 $ 425,388 $ 416,448 $ 407,736 $ 399,247 $ 382,909
Discounted @ 50%.............. $ 217,283 $ 212,694 $ 208,224 $ 203,868 $ 199,623 $ 191,455
Discounted @ 60%.............. $ 173,826 $ 170,155 $ 166,579 $ 163,094 $ 159,699 $ 153,164
3
31
CANDLEWICK -- HIMF VALUE "AS IS" DISCOUNTED CASH FLOW
3011 JANE PLACE, NE
ALBUQUERQUE, NEW MEXICO
NET RENTABLE AREA 128,830 OPERATING EXPENSES (YEAR ONE) PER SF
NUMBER OF UNITS 184
FIRST YEAR OCCUPANCY 95.00% MANAGEMENT $ 48,675 $0.38
EXPENSE GROWTH RATE 4.00% AD/PROMOTION $ 31,823 $0.25
RESALE CAP RATE 11.00% REAL ESTATE TAXES $ 64,783 $0.50
INSURANCE $ 18,809 $0.15
UTILITIES $ 34,937 $0.27
MAINTENANCE/REPAIRS $115,940 $0.90
GENERAL/ADMIN. $ 29,048 $0.23
PAYROLL $105,551 $0.82
-------- -----
TOTAL OPERATING EXPENSES $449,566 $3.49
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6
- -------------------------------- ----------- ---------- ----------- ----------- ------------ -----------
Rental Income.................... $1,126,305 $1,171,357 $1,218,211 $ 1,266,940 $ 1,317,618 $1,370,322
% Increase....................... 0.00% 4.00% 4.00% 4.00% 4.00% 4.00%
Plus: Other Income.............. 36,860 38,334 39,868 41,462 43,121 44,846
% Increase....................... 0.00% 4.00% 4.00% 4.00% 4.00% 4.00%
Gross Potential Income........... $1,163,165 $1,209,692 $1,258,079 $ 1,308,402 $ 1,360,739 $1,415,168
Less: Vacancy/Collection Loss.... (44,838) (60,485) (62,904) (65,420) (68,037) (70,758)
% of Gross Potential Income...... 3.85% 5.00% 5.00% 5.00% 5.00% 5.00%
---------- ---------- ---------- ----------- ----------- ----------
Effective Gross Income........... $1,118,327 $1,149,207 $1,195,175 $ 1,242,982 $ 1,292,702 $1,344,410
Less Operating Expenses.......... $ (449,566) $ (467,549) $ (486,251) $ (505,701) $ (525,929) $ (546,966)
Per Square Foot.................. $ (3.49) $ (3.63) $ (3.77) $ (3.93) $ (4.08) $ (4.25)
Net Operating Income............. $ 668,761 $ 681,658 $ 708,925 $ 737,282 $ 766,773 $ 797,444
Less: Deferred Maintenance....... $ (75,000) $ (50,000)
Less: 1st Lien - Atena........... $ (479,988) $ (479,988) $ (479,988) $ (479,988) $ (479,988)
Reversion @ 11.50%............... $ 6,934,295
Less: Selling Expense @ 3.00%.... $ (208,029)
Less: 1st Lien Balance........... $(4,388,366)
Net Reversion.................... $ 2,337,900
===========
Cash Flow & Reversion............ $ 113,773 $ 151,670 $ 228,937 $ 257,294 $ 2,624,685
Less: 1st Priority
HFGI Post Petition Loan....... $ (113,773) $ (151,670) $ (187,436)
Lawsuit (4145398+$307482)
Less: 2nd Priority
HIMF Prorata (50%)............ $ (20,750) $ (128,647) $(1,312,342)
LP/GP Prorata (50%) .......... $ (20,750) $ (128,647) $(1,312,342)
Net Cash Flow ................... $ 0 $ 0 $ 0 $ 0 $ 0
Total HIMF Cash Flow............ $ 0 $ 0 $ 20,750 $ 128,647 $ 1,312,342
========== ========== ========== =========== ===========
Discount Rate................... 11.00% 11.50% 12.00% 12.50% 13.00% 14.00%
---------- ---------- ---------- ----------- ----------- -----------
Maket Value Range............... $ 878,727 $ 859,708 $ 841,185 $ 823,144 $ 805,569 $ 771,765
Discounted @ 50%............. $ 439,364 $ 429,854 $ 420,593 $ 411,572 $ 402,785 $ 385,882
Discounted @ 60%............. $ 351,491 $ 343,883 $ 336,474 $ 329,258 $ 322,228 $ 308,706
4
32
THE LAKES (LANETREE) -- HIMF VALUE "AS IS" DISCOUNTED CASH FLOW
4800 SAN MATEO LANE, NE
ALBUQUERQUE, NEW MEXICO
NET RENTABLE AREA 232,462 OPERATING EXPENSES (YEAR ONE) PER SF
NUMBER OF UNITS 298
FIRST YEAR OCCUPANCY 95.00% MANAGEMENT $ 84,488 $0.36
EXPENSE GROWTH RATE 4.00% AD/PROMOTION $ 47,244 $0.20
RESALE CAP RATE 11.50% REAL ESTATE TAXES $ 80,658 $0.35
INSURANCE $ 44,519 $0.19
UTILITIES $ 81,362 $0.35
MAINTENANCE/REPAIRS $218,736 $0.94
GENERAL/ADMIN. $ 30,431 $0.13
PAYROLL $118,380 $0.81
-------- -----
TOTAL OPERATING EXPENSES $774,818 $3.33
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6
- ------------------------------------- ---------- ------------ ------------ ---------- ------------ ----------
Rental Income........................ $2,068,778 $2,151,529 $2,237,590 $2,327,094 $ 2,420,178 $2,516,985
% Increase........................... 0.00% 4.00% 4.00% 4.00% 4.00% 4.00%
Plus: Other Income.................. 127,781 132,892 138,208 143,736 149,486 155,465
% Increase........................... 0.00% 4.00% 4.00% 4.00% 4.00% 4.00%
Gross Potential Income............... $2,196,559 $2,284,421 $2,375,798 $2,470,830 $ 2,569,663 $2,672,450
Less: Vacancy/Collection Loss........ (214,210) (114,221) (118,790) (123,542) (128,483) (133,622)
% of Gross Potential Income.......... 9.75% 5.00% 5.00% 5.00% 5.00% 5.00%
---------- ---------- ---------- ---------- ----------- ----------
Effective Gross Income............... $1,982,349 $2,170,200 $2,257,008 $2,347,289 $ 2,441,180 $2,538,827
Total Operating Expenses............. $ (774,818) $ (805,811) $ (838,043) $ (871,565) $ (906,427) $ (942,685)
Per Square Foot...................... $ (3.33) $ (3.47) $ (3.61) $ (3.75) $ (3.90) $ (4.06)
---------- ---------- ---------- ---------- ----------- ----------
Net Operating Incom.................. $1,207,531 $1,364,390 $1,418,985 $1,475,724 $ 1,534,753 $1,596,143
Less: 1st Lien ...................... $ (757,584) $ (757,584) $ (757,584) $ (757,584) $ (757,584)
Less: 2nd Lien....................... $ (89,419) $ (89,419) $ (89,419) $ (89,419) $ (89,419)
Less: 3rd Lien (PW Mtg.)............. $ (117,483) $ (117,483) $ (172,685) $ (167,082) $ (161,480)
Reversion @ 11.50%................... $13,879,503
Less: Selling Expense @ 3.00%........ $ (416,385)
Less: 1st Lien Principal ............ $(9,051,184)
Less: 2nd Lien Principal............. $ (925,659)
Less: 3rd Line Pirncipal (PW Mgt).... $(1,042,170)
-----------
Net Reversion to Senior Equity....... $ 2,444,105
===========
Cash Flow (net of Reversion)......... $ 243,045 $ 399,904 $ 399,277 $ 461,639 $ 526,270
Hall-Lanetree Pre/Cf Payments
6% Preference of $3279878......... $ 243,045 $ 196,793 $ 196,793 $ 196,793 $ 196,793
20% of Cash Flow.................. $ 0 $ 40,622 $ 40,497 $ 52,969 $ 65,895
Reversion-- Senior Equity......... $ 2,444,105
Funds Available to Priorities........ $ 243,045 $ 237,415 $ 237,290 $ 249,762 $ 2,706,793
(Hall-Lanetree CF & Rev)
Less: 2nd Priority................... $ 0
Less: 3rd Priority
HFGI Pro Rata (10.8%)............. $ (28,735) $ (26,116) $ (26,102) $ (27,474) $ (200,204)
HMIF Pro Rata (39.2%)............. $ (94,788) $ (92,592) $ (92,543) $ (97,407) $ (709,814)
LP/GP Pro Rata (50%).............. $ (121,523) $ (118,708) $ (118,645) $ (124,881) $ (910,019)
Less: 4th Prioroity
HFGI Post/Pre Petition Debt....... $ (193,662)
Cash Flow ........................... $ (0) $ (0) $ (0) $ (0) $ 693,094
Total HIMF Cash Flow................. $ 94,788 $ 92,592 $ 92,543 $ 97,407 $ 709,814
========== ========== ========== ========== ===========
Discount Rate........................ 11.00% 11.50% 12.00% 12.50% 13.00% 14.00%
---------- ---------- ---------- ---------- ----------- ----------
PW of HIMF Cash Flow................. $ 713,616 $ 701,151 $ 688,988 $ 677,118 $ 665,533 $ 643,186
Discounted @ 50%.................. $ 356,808 $ 350,575 $ 344,494 $ 338,559 $ 332,767 $ 321,593
Discounted @ 60%.................. $ 285,446 $ 280,460 $ 275,595 $ 270,847 $ 266,213 $ 257,274
5
33
Los Altos Tower (Twintree) -- HIMF Value"As Is" Discounted Cash Flow
9125 Copper Ave., NE
Albuquerque, New Mexico
Net Rentable Area........................... 170,635 Operating Expenses (Year One) Per SF
Number of Units............................. 185 Management $ 51,708 $ 0.30
Stabilized Occupancy........................ 95.00% Ad/Promotion $ 20,893 $ 0.12
Expense Growth Rate......................... 4.00% Real Estate Taxes $ 69,395 $ 0.41
Resale Cap Rate............................. 11.00% Insurance $ 24,619 $ 0.14
Utilities $ 51,191 $ 0.30
Maintenance/Repairs $148,706 $ 0.87
General/Admin. $ 32,529 $ 0.19
Payroll $111,920 $ 0.66
-------- -------
Total Operating Expenses $510,961 $ 2.99
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6
- ------------------------------- ---------- ---------- ---------- ----------- ----------- ----------
Rental Income............................... $1,324,439 $1,377,417 $1,432,513 $1,489,814 $ 1,549,406 $1,611,383
% Increase................... 0.00% 4.00% 4.00% 4.00% 4.00% 4.00%
Plus: Other Income.......................... $ 70,985 $ 73,824 $ 76,777 $ 79,848 $ 83,042 $ 86,634
% Increase................... 0.00% 4.00% 4.00% 4.00% 4.00% 4.00%
Gross Potential Income...................... $1,395,424 $1,451,241 $1,509,291 $1,569,662 $ 1,632,449 $1,697,747
Less: Vacancy/Collection Loss............... (195,277) (72,562) (75,465) (78,483) (81,622) (84,887)
% of Gross Potential Income.. 13.99% 5.00% 5.00% 5.00% 5.00% 5.00%
Effective Gross Income...................... $1,200,147 $1,378,679 $1,433,826 $1,491,179 $ 1,550,826 $1,612,859
Total Operating Expenses.................... $ (510,961) $ (531,399) $ (552,665) $ (574,762) $ (597,752) $ (621,662)
Per/Sq. Ft................... $ (2.99) $ (3.11) $ (3.24) $ (3.37) $ (3.50) $ (3.64)
---------- ---------- ---------- ---------- ----------- ----------
Net Operating Income........................ $ 689,186 $ 847,279 $ 881,171 $ 916,417 $ 953,074 $ 991,197
Less: 1st Lien.............................. $ (489,865) $ (489,865) $ (489,865) $ (489,865) $ (489,865) $ (489,865)
Less: 2nd Lien.............................. $ (57,975) $ (57,975) $ (57,975) $ (57,975) $ (57,975) $ (57,975)
Less: 3rd Lien (PW Mtg)..................... $ (75,855) $ (75,855) $ (111,498) $ (107,880) $ (104,263) $ (113,307)
Reversion-- 11.00%.......................... $ 9,010,883
Less Selling Expense @ 3.00%................ $ (270,326)
Less: 1st Lien Principal.................... $(5,852,629)
Less: 2nd Lien Principal.................... $ (600,152)
Less: 3rd Lien Principal (PW Mtg)........... $ (672,895)
-----------
Net Reversion to Senior Equity.............. $ 1,614,881
Cash Flow (Net of Reversion................. $ 65,491 $ 223,584 $ 221,833 $ 260,697 $ 300,971
Hall-Twintree Pre/CF Payments
6% Preference @ $1403626.................... $ 65,491 $ 84,218 $ 84,218 $ 84,218 $ 84,218
20% of Cash Flows........................... $ 0 $ 27,873 $ 27,523 $ 35,296 $ 43,351
Reversion 6% to 20% Pre/CF.................. $ 1,614,881
Funds Available to Priorities............... $ 65,491 $ 112,091 $ 111,741 $ 119,514 $ 1,742,449
(Hall-Twintree CF & Rev)
Less: 2nd Priority-Cap & Pref............... $ (65,491) $ (104,810)
Less: 3rd Priority-Post Petition Debt
Debt & Def Com 2% ........... $ 185,734 $ (7,281) $ (111,741) $ (119,514) $ (139,729)
Less: 4th Priority
HFGI Post/Pre Pet. Debt (10%) $ 0 $ 0 $ 0 $ 0 $ (160,272)
HMIF Debt Pro Rata (40%)..... $ 0 $ 0 $ 0 $ 0 $ (641,088)
LP/GP Pro Rata (50%)......... $ 0 $ 0 $ 0 $ 0 $ (801,360)
Cash Flow ............................. $ 0 $ 0 $ 0 $ 0 $ 0
Total HIMF Cash Flow........................ $ 0 $ 0 $ 0 $ 0 $ (641,088)
========== ========== ========== ========== ===========
Discount Rate............................... 11.00% 11.50% 12.00% 12.50% 13.00% 14.00%
---------- ---------- ---------- ---------- ----------- ----------
PW of HIMF Cash Flow........................ $ 380,455 $ 372,000 $ 363,771 $ 355,758 $ 347,957 $ 332,961
Discounted @ 50%............. $ 190,227 $ 186,000 $ 181,885 $ 177,879 $ 173,978 $ 166,481
Discounted @ 60%............. $ 152,182 $ 148,800 $ 145,508 $ 142,303 $ 139,183 $ 133,184
6
34
The Villas (Coachtree)-- HIMF Value......... "As Is" Discounted Cash Flow
1111 Cardenas Dr., SE
Albuquerque, New Mexico
Net Rentable Area........................... 161,712 Operating Expenses (Year One) Per SF
Number of Units............................. 195 Management $ 52,904 $ 0.33
Stabilized Occupancy........................ 95.00% Ad/Promotion $ 18,144 $ 0.11
Expense Growth Rate......................... 4.00% Real Estate Taxes $ 72,951 $ 0.45
Resale Cap Rate............................. 11.50% Insurance $ 24,152 $ 0.15
Utilities $ 51,748 $ 0.32
Maintenance/Repairs $ 164,274 $ 1.02
General/Admin. $ 21,253 $ 0.13
Payroll $ 109,516 $ 0.68
--------- -------
Total Operating Expenses $ 514,942 $ 3.18
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6
- -------------------------------------------- ----------- ---------- ---------- ----------- ------------ ----------
Rental Income............................... $1,266,608 $1,317,272 $1,369,963 $1,424,762 $ 1,481,752 $1,541,022
% Increase................... 0.00% 4.00% 4.00% 4.00% 4.00% 4.00%
Plus: Other Income.......................... $ 70,498 $ 73,318 $ 76,251 $ 79,301 $ 82,473 $ 85,772
% Increase................... 0.00% 4.00% 4.00% 4.00% 4.00% 4.00%
Gross Potential Income...................... $1,337,106 $1,390,590 $1,446,214 $1,504,062 $ 1,564,225 $1,626,794
Less: Vacancy/Collection Loss............... (132,571) (69,530) (72,311) (75,203) (78,211) (81,340)
% of Gross Potential Income.. 9.91% 5.00% 5.00% 5.00% 5.00% 5.00%
---------- ---------- ---------- ---------- ----------- ----------
Effective Gross Income...................... $1,204,535 $1,321,061 $1,373,903 $1,428,859 $ 1,486,014 $1,545,454
Total Operating Expenses.................... $ (514,942) $ (535,540) $ (556,961) $ (579,240) $ (602,409) $ (626,506)
Per/Sq. Ft................... $ (3.18) $ (3.31) $ (3.44) $ (3.58) $ (3.73) $ (3.87)
---------- ---------- ---------- ---------- ----------- ----------
Net Operating Income........................ $ 689,593 $ 785,521 $ 816,942 $ 849,620 $ 883,604 $ 918,949
Less: 1st Lien.............................. $ (436,208) $ (436,208) $ (436,208) $ (436,208) $ (436,208)
Less: 2nd Lien.............................. $ (51,096) $ (51,096) $ (51,096) $ (51,096) $ (51,096)
Less: 3rd Lien (PW Mtg)..................... $ (67,530) $ (67,530) $ (99,261) $ (96,039) $ (92,818)
Reversion-- 11.50%.......................... $ 7,990,857
Less Selling Expense @ 3.00%................ $ (239,726)
Less: 1st Lien Principal.................... $(5,211,560)
Less: 2nd Lien Principal.................... $ (528,948)
Less: 3rd Lien Principal (PW Mtg)........... $ (599,042)
-----------
Net Reversion to Senior Equity.............. $ 1,411,581
Cash Flow (Net of Reversion................. $ 134,759 $ 230,687 $ 266,377 $ 266,277 $ 303,482
Hall-Coachtree Pre/CF Payments
6% Preference @ $1118164.................... $ 67,090 $ 67,090 $ 67,090 $ 67,090 $ 67,090
20% of Cash Flows........................... $ 13,534 $ 32,719 $ 32,657 $ 39,837 $ 47,278
Reversion - Senior Equity................... $ 1,411,581
Funds Available to Priorities............... $ 80,624 $ 99,809 $ 99,747 $ 106,927 $ 1,525,949
(Hall-Coachtree CF & Rev)
Less: 2nd Priority-LP/GP
Capital & Pref............... $ (38,320)
Less: 3rd Priority-HFG
Post Petition................ $ (42,304) $ (99,809) $ (44,821)
Less: 4th Priority-HFG
Def Comm @3%................. $ (54,927) $ (106,927) $ (87,679)
Less: 5th Priority-HFG Post
Petition Debt-Def Accrued Int $ (118,481)
Less: 6th Priority-HFG Post
HFGI Pre-P Debt Pro Rata (5%) $ 0 $ 0 $ 0 $ 0 $ (65,989)
HMIF Debt Pro Rata (45%)..... $ 0 $ 0 $ 0 $ 0 $ (593,905)
LP/GP Pro Rata (50%)......... $ 0 $ 0 $ 0 $ 0 $ (659,895)
Cash Flow ............................. $ 0 $ 0 $ 0 $ 0 $ 0
Total HIMF Cash Flow........................ $ 0 $ 0 $ 0 $ 0 $ 593,905
========== ========== ========== ========== ===========
Discount Rate............................... 11.00% 11.50% 12.00% 12.50% 13.00% 14.00%
---------- ---------- ---------- ---------- ----------- ----------
PW of HIMF Cash Flow........................ $ 352,454 $ 344,622 $ 336,998 $ 329,575 $ 322,348 $ 308,456
Discounted @ 50%............. $ 176,227 $ 172,311 $ 168,499 $ 164,788 $ 161,174 $ 154,228
Discounted @ 60%............. $ 140,982 $ 137,849 $ 134,799 $ 131,830 $ 128,939 $ 123,382
7