NATURAL DECISION SYSTEMS, INC.
REPORT ON INSIGNIA'S REAL ESTATE PORTFOLIO
DECEMBER 31, 1996
NATURAL DECISION SYSTEMS, INC.
Software and Services for Real Estate Professionals
Mr. Ronald Consiglio
President
Angeles Mortgage Investment Trust
340 North Westlake Boulevard
Westlake Village, CA 91362 November 13, 1997
Dear Mr. Consiglio,
At your request we have performed agreed-upon procedures, analysis, prospective
financial information calculations and research enumerated in our attached
summary report, with respect to the Insignia's Portfolio of Real Estate
Holdings at December 31, 1996. The sufficiency of these procedures, analysis,
calculations and research is solely the responsibility of the specified users
of these reports. Consequently, we make no representation regarding the
sufficiency of the process described herein, for the purpose for which this
report has been requested or any other purpose.
It is our conclusion that the portfolio's Current Value, the formulated value
of the real estate in Insignia's portfolio of real estate holdings at December
31, 1996, lies within the value range of $1,067,000,000 and $1,183,000,000. The
Stated Values are the property values submitted by Insignia. Our conclusion is
solely based on and derived from the agreed-upon procedures, analysis,
prospective financial calculations and research enumerated in our attached
summary report. Our conclusion is not appraised market values of individual
properties, the portfolio, or Insignia's ownership interests in the real
estate.
We were not engaged to, and did not perform an examination, the objective of
which would have been the expression of an opinion on fair market value of the
portfolio, real estate, or ownership interests in the real estate. Accordingly,
we do not express such an opinion.
Real Estate Services Division
43 Calyx Lane
Cedar Crest, NM 87008
Tel: (505) 286-8882 realestNDS@aol.com
Fax: (505) 286-8883 www.wodesigns.com/nds
2
In reaching our conclusion, we have relied on the accuracy and completeness of
Insignia's property data as provided to us by Angeles Mortgage Investment Trust
and we have not independently verified such information.
This report is intended solely for the use of the Board of Trustees and
management of Angeles Mortgage Investment Trust and should not be used by those
who have not agreed with the process and taken responsibility for the
sufficiency of the process for their purposes. This report may not be
reproduced, summarized, excerpted from, or otherwise publicly referred to or
disclosed in any manner, without the written consent of Natural Decision
Systems, Inc.
Our engagement does not include reporting on events and transactions subsequent
to the date of this report. Accordingly, we have no responsibility to update
this report for events and circumstances after the date of this report.
Natural Decision Systems, Inc.
Real Estate Services Division
43 Calyx Lane
Cedar Crest, NM 87008
Tel: (505) 286-8882 realestNDS@aol.com
Fax: (505) 286-8883 www.wodesigns.com/nds
3
SUMMARY REPORT IN SUPPORT OF THE CURRENT
VALUE FINDINGS
DECEMBER 31, 1996
OVERVIEW
The following pages present a summary of results of findings and of the
procedures, analysis, methodologies, major assumptions used in prospective
financial calculations and research in support of our conclusion in our cover
report dated November 13, 1997.
Portfolio Current Values
- ------------------------
The December 31, 1996 full dispersion (range) of the portfolio's Current Values
is $1,067,000,000 to $1,183,000,000, resulting in a going in CAP rates of
12.92% to 10.43%. The narrower range of the Current Values of the portfolio is
$1,107,000,000 to $1,153,000,000, resulting in going in CAP rates of 10.86% to
10.86%.
Limiting Factors
- -----------------
No process or conclusions should be implied unless expressly detailed in this
report. The sufficiency of all the procedures, analysis, calculations and
research is solely the responsibility of the specified users of these reports.
Consequently, we make no representation regarding the sufficiency of the
process described herein, for the purpose for which this report has been
requested or any other purpose.
The cover report and the attached summary reports comprise Natural Decision
Systems, Inc.'s complete written November 13, 1997 report. A copy of the Master
View(TM) proprietary software and database files has been submitted to Angeles
Mortgage Investment Trust as additional supporting detail.
4
SUMMARY REPORT IN SUPPORT OF THE CURRENT
VALUE FINDINGS
DECEMBER 31, 1996
OVERVIEW
Total Portfolio Analytics
- -------------------------
The full Current Value range results in the following simulated rates of
returns:
Unleveraged Lower Percentile Upper Percentile
IRR 13.231% 12.000%
ARR 14.490% 12.820%
GIR 12.920% 10.430%
Leveraged
IRR 19.371% 16.210%
ARR 29.840% 24.259%
The narrow Current Value range results in the following simulated rates of
returns:
Unleveraged Lower Current Values Upper Current Values
IRR 12.596% 12.608%
ARR 13.601% 13.618%
GIR 10.860% 10.860%
Leveraged
IRR 17.683% 17.609%
ARR 26.442% 26.015%
Portfolio's Multi-Family Analytics
- ----------------------------------
The multi-family simulated rates of returns for the upper percentile of the
full Current Value range are:
Upper Percentile Single Discount Band of Discounts
- ---------------- ------------------------ ------------------------------
Unleveraged Leveraged Unleveraged Leveraged
------------ ----------- ------------- --------------
CAP IRR ARR IRR ARR IRR ARR IRR ARR
Weighted Mean 11.12 12.58 13.58 17.86 27.35 12.62 13.63 17.97 27.59
Mean 11.27 12.65 13.63 18.09 27.58 12.71 13.72 18.26 27.94
Median 11.00 12.50 13.65 17.68 27.71 12.72 13.67 18.32 27.79
Low 8.50 10.50 11.06 11.74 16.74 10.96 11.68 13.16 19.83
High 13.50 14.50 15.53 23.86 35.22 13.99 15.39 21.86 34.65
5
SUMMARY REPORT IN SUPPORT OF THE CURRENT
VALUE FINDINGS
DECEMBER 31, 1996
OVERVIEW
Portfolio's Multi-Family Analytics
- ----------------------------------
The multi-family simulated rates of returns for the lower percentile of the
full Current Value range are:
Lower Percentile Single Discount Band of Discounts
------------------------ ------------------------------
Unleveraged Leveraged Unleveraged Leveraged
------------ ----------- ------------- --------------
CAP IRR ARR IRR ARR IRR ARR IRR ARR
Weighted Mean 11.19 13.24 14.45 19.44 29.74 13.28 14.51 19.62 30.25
Mean 11.27 13.27 14.48 19.73 30.60 13.31 14.54 19.83 30.82
Median 11.00 13.12 14.53 19.30 31.22 13.31 14.55 19.94 31.09
Low 8.50 11.02 11.76 13.33 18.08 11.31 12.16 14.15 21.73
High 13.50 15.22 16.53 25.85 39.21 14.97 16.86 24.35 38.48
The multi-family simulated rates of returns for the upper percentile of the
narrow Current Value range are:
Upper Percentile Single Discount Band of Discounts
------------------------ ------------------------------
Unleveraged Leveraged Unleveraged Leveraged
------------ ----------- ------------- --------------
CAP IRR ARR IRR ARR IRR ARR IRR ARR
Weighted Mean 11.18 12.61 13.58 17.66 25.94 12.63 13.61 17.76 26.23
Mean 11.27 12.65 13.61 17.97 26.96 12.66 13.64 18.00 27.00
Median 11.00 12.50 13.65 17.62 27.71 12.70 13.65 18.22 27.21
Low 8.50 10.50 11.06 11.82 15.70 10.75 11.39 12.54 18.27
High 13.50 14.50 15.53 23.86 35.22 14.21 15.75 22.20 34.27
The multi-family simulated rates of returns for the lower percentile of the
narrow Current Value range are:
Lower Percentile Single Discount Band of Discounts
------------------------ ------------------------------
Unleveraged Leveraged Unleveraged Leveraged
------------ ----------- ------------- --------------
CAP IRR ARR IRR ARR IRR ARR IRR ARR
Weighted Mean 11.19 13.24 14.45 17.73 26.24 12.60 13.56 17.74 26.34
Mean 11.27 12.65 13.61 18.01 27.12 12.63 13.59 17.94 26.97
Median 11.00 12.50 13.65 17.62 27.71 12.67 13.61 18.10 27.31
Low 8.50 10.50 11.06 11.82 16.08 10.69 11.32 12.38 18.54
High 13.50 14.50 15.53 23.86 35.22 14.19 15.73 22.16 34.01
6
SUMMARY REPORT IN SUPPORT OF THE CURRENT
VALUE FINDINGS
DECEMBER 31, 1996
OVERVIEW
Dispersion Of Current Values
- ----------------------------
The below graph depicts the individual portfolio Current Values based on the
process described in subsequent pages. The full modeling range of Current
Values is $1,067,000,000 to $1,183,000,000, and the range with the most
frequent occurrence of Current Values, narrower range, is $1,107,000,000 to
$1,153,000,000.
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE
PURPOSE OF EDGAR FILING.]
[GRAPHIC OMITTED]
7
SUMMARY REPORT IN SUPPORT OF THE CURRENT
VALUE FINDINGS
DECEMBER 31, 1996
OVERVIEW
Simulated Performance Statistics
- --------------------------------
The subsequent graphs depict the simulated rates of returns, for the various
ranges of Current Values, for the multi-family portion of the portfolio based
on the process described in subsequent pages. The series of rates of returns
are as follows:
1. Single discount, unleveraged internal rate of return.
2. Single discount, unleveraged average rate of return.
3. Single discount, leveraged internal rate of return.
4. Single discount, leveraged average rate of return.
5. Band of discounts, unleveraged internal rate of return.
6. Band of discounts, unleveraged average rate of return.
7. Band of discounts, leveraged internal rate of return.
8. Band of discounts, leveraged average rate of return.
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE
PURPOSE OF EDGAR FILING.]
[GRAPHIC OMITTED]
8
SUMMARY REPORT IN SUPPORT OF THE CURRENT
VALUE FINDINGS
DECEMBER 31, 1996
OVERVIEW
Simulated Performance Statistics
- --------------------------------
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE
PURPOSE OF EDGAR FILING.]
[GRAPHIC OMITTED]
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE
PURPOSE OF EDGAR FILING.]
[GRAPHIC OMITTED]
9
SUMMARY REPORT IN SUPPORT OF THE CURRENT
VALUE FINDINGS
DECEMBER 31, 1996
OVERVIEW
Simulated Performance Statistics
- --------------------------------
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE
PURPOSE OF EDGAR FILING.]
[GRAPHIC OMITTED]
10
SUMMARY REPORT IN SUPPORT OF THE CURRENT
VALUE FINDINGS
DECEMBER 31, 1996
AGREED UPON PROCEDURES
The following are the procedures and research used to form the basis for our
Current Value conclusions. A procedure is a process that includes discussions
with management, analysis, research, prospective financial information
calculations, and other procedural steps in support of our conclusion. Had the
process been expanded or additional procedures implemented, the Current Value
range could have been materially different. Examples of an expansion of the
process would be reading of engineering reports to determine needed deferred
maintenance on the projects and analyzing appraisals, if any, of the
properties. The users of this report take full responsibility for the
sufficiency of the procedures for their purposes.
o Entered the list of Insignia's real estate holdings provided by Angeles
Mortgage Investment Trust, at December 31, 1996 into Master View(TM)'s
software. The fields entered included the following:
1. Property name
2. Property type
3. Property identification number
4. Property zip code
5. Property rentable square feet
6. Property stated value
7. Portfolio name
8. Selected properties' 1996 & 1995 revenue & operating expenses
9. Selected properties' 1997 gross rent potential
10. Selected properties' 1996 & 1995 capit expenditures
o The 1996 property operations were used as the proforma operations for
the prospective financial yield information. These proforma operations did
not include any capitalized or amortized repairs and maintenance expense.
11
SUMMARY REPORT IN SUPPORT OF THE CURRENT
VALUE FINDINGS
DECEMBER 31, 1996
AGREED UPON PROCEDURES
o The basis for all December 31, 1996 market factors were:
1. Master View(TM)'s MSA market database.
2. Research for additional market data on zip codes of each property.
3. Non statistical methodology for confirming zip code market data from
local and national real estate sources.
4. Applying Natural Decision Systems, Inc.'s proprietary real estate
alpha, beta and efficient modeling on zip code market data and
property performance to determine a risk adjusted stabilized market
rent for each property. This is based in major part on the MPT and
CAPM financial modeling techniques. Additionally, use of the
unadjusted market and contract rents as market rents was used to
determine certain dispersion points of Current Value.
5. Applying Natural Decision Systems, Inc.'s proprietary real estate
band of discount rates on selected components of the properties'
benefits and values to determine a set of ranges of Current Values.
6. The annual capital expenditures for repairs and maintenance for each
of the multi-family properties was based on the Harper & Fiacchi 1996
study and J .D. Fisher 1995 study.
7. The real estate investment performance measurement is based on the
following component of total return:
o Capital Return
o General Market Growth
o NOI Market Growth
o Investment
o Income Return
o Market Based Annual Return
o Lease Based Annual Return
Additionally, the real estate performance measurement is also based
on current financing criteria applied to the Current Value and the
computation of a leveraged total return.
8. The methodology for computing the Current Value was applying discount
rates of return on property benefits and adding the individual
discounted results. This is sometimes known as the yield
capitalization or discounted cash flow method.
12
SUMMARY REPORT IN SUPPORT OF THE CURRENT
VALUE FINDINGS
DECEMBER 31, 1996
PROSPECTIVE FINANCIAL ASSUMPTIONS
Computing portfolio Current Values is based on property performance yields. The
main hypothesis is that the properties in Insignia's portfolio will not be
disposed of during the ten-year evaluation period ending December 31, 2006.
o The period for each annual yield performance measurement is the eleven years
ending December 31, 2007. This assumes that the properties will be held for
at least one economic cycle of seven to ten years.
o The risk adjusted stabilized market rent at December 31, 1996 incorporates
one investment cycle of general market growth with 2% annual inflationary
growth.
o The contract-based market rent at December 31, 1996 incorporates one
investment cycle of general market growth with 2% annual inflationary
growth.
o The leased rent at December 31, 1996 for multi-family properties will end on
December 31, 1996. The December 31, 1996 commercial leased rent is phased
out 50% by December 31, 1999 and 50% by December 31, 2000.
o A 2% annual inflationary growth for other revenues.
o A 2% annual inflationary growth for operating expenses.
o The absorption of the vacated space occurs on the vacated date at the
available rentable square feet using the inflationary grown risk adjusted
stabilized market rent at the absorption date.
o The absorption of the vacated space occurs on the vacated date at the
available rentable square feet using the inflationary grown contract based
market rent at the absorption date.
o The term for each new absorbed rental is one year for multi-family and four
years for commercial. This process continues until the end of the projected
period.
o Annual funded operating reserves is assumed to be in a range of 1%
increments, of annual actual rents, of the 12.5% to 87.5% percentile of the
4% to 8% standard for multi-family properties.
o Annual funded operating reserves is assumed to be in a range of 1% of annual
actual rents for commercial properties.
o Multi-family capital improvements, capitalized repair and maintenance, and
refurbishment's are included in the annual funded operating reserves
mentioned above.
o Commercial tenant improvements are assumed to be a dollar ($1.00) per square
foot for absorbed space.
13
SUMMARY REPORT IN SUPPORT OF THE CURRENT
VALUE FINDINGS
DECEMBER 31, 1996
PROSPECTIVE FINANCIAL ASSUMPTIONS
o The financing criteria applied to the Current Values of all properties at
December 31, 1996 are as follows:
1. Loan to Value ratio is 75%
2. Debt coverage ratio is 110% of net operating income
3. Interest rate is 10%
4. Compound period is monthly
5. Amortization period is 180 months
6. Maturity date of loans December 31, 2003
7. Refinancing at December 31, 2003 of the amount due, on the same terms as
the original financing, for another seven years
o The property benefits used to compute the annual internal rate of return
and average annual rate of return is the annual net operating income
before and after deducting operating reserves, tenant improvements and
debt service, to which is added the any positive refinancing arbitrage in
the year it occurred.
o All overall or band of discount rates are constituted from investor market
driven factors and generally consists of the following components:
1. Risk free rate of return
2. Interest rate risk burden
3. Inflation risk burden
4. Credit risk burden
5. Efficient market rate of return
6. Property type risk burden
7. Market sector risk burden
o Annual, quarterly and monthly compounding periods are used for all discount
rates.
14
PROPERTY AND PORTFOLIO PERFORMANCE ANALYTICS
DECEMBER 31, 1996
The following pages 16 to 21 are the key individual prospective financial
portfolio & property performance analytics for the upper percentile of the full
range.
o Schedule of Property Current Values and Performance Statistics
o Summary of Portfolio Current Values with Performance Statistics
The following pages 22 to 27 are the key individual prospective financial
portfolio & property performance analytics for the lower percentile of the full
range.
o Schedule of Property Current Values and Performance Statistics
o Summary of Portfolio Current Values with Performance Statistics
The following pages 28 to 33 are the key individual prospective financial
portfolio & property performance analytics for the upper percentile of the
narrow range.
o Schedule of Property Current Values and Performance Statistics
o Summary of Portfolio Current Values with Performance Statistics
The following pages 34 to 39 are the key individual prospective financial
portfolio & property performance analytics for the lower percentile of the
narrow range.
o Schedule of Property Current Values and Performance Statistics
o Summary of Portfolio Current Values with Performance Statistics
The following pages 40 to 43 are the stated values submitted by Insignia
15
SCHEDULE OF PROPERTY CURRENT VALUES WITH SIMULATED PERFORMANCE
STATISTICS FOR UPPER PERCENTILE OF FULL RANGE
DECEMBER 31, 1996
UNLEVERAGED LEVERAGED
PROPERTY VALUE CAP DISC IRR ARR IRR ARR
444 Deharo $8,559,904 11.00 12.00 12.00 14.53 14.42 23.78
Alpine $4,027,253 11.50 12.00 12.00 12.68 16.33 23.82
Arbour East $11,249,428 10.50 12.00 12.00 12.96 16.14 24.92
Autumn Run $13,220,134 10.00 12.00 12.00 13.11 16.04 25.53
Baymeadows $23,295,186 11.50 12.00 12.00 12.68 16.33 23.82
Breckinridge Square $9,516,561 12.50 12.00 12.00 12.44 16.52 22.84
Briar Bay Racquet Club $6,773,438 11.00 12.00 12.00 12.82 16.24 24.36
Brighton Crest Apts $11,017,783 10.00 12.00 12.00 13.11 16.04 25.53
Carriage House Apts $3,017,226 12.50 12.00 12.00 12.44 16.52 22.84
Cedar Brooke $4,052,316 12.00 12.00 12.00 12.56 16.43 23.32
Cedar Rim $4,349,495 10.50 12.00 12.00 12.96 16.14 24.93
Celina Plaza $6,271,578 10.00 12.00 12.00 13.11 16.04 25.53
Cherry Creek Garden $14,131,006 10.00 12.00 12.00 13.11 16.04 25.53
Chimney Hill $10,680,884 10.50 12.00 12.00 12.96 16.14 24.92
Churchill Park $11,127,194 12.00 12.00 12.00 12.56 16.43 23.32
Citadel $6,823,210 10.50 12.00 12.00 12.96 16.14 24.93
Citadel Village $5,113,668 10.00 12.00 12.00 13.11 16.04 25.53
City Heights $5,320,040 10.50 12.00 12.00 12.96 16.14 24.92
Colony At Kenilworth $16,260,922 12.00 12.00 12.00 12.56 16.43 23.32
Colony House Apts $5,725,681 10.50 12.00 12.00 12.96 16.14 24.92
Colony Of Springdale $5,966,258 11.00 12.00 12.00 12.82 16.24 24.36
Cooper's Pond $8,176,866 11.50 12.00 12.00 12.68 16.33 23.82
Coopers Pointe $5,583,956 12.00 12.00 12.00 12.56 16.43 23.32
Copper Mill $8,097,807 13.00 12.00 12.00 12.32 16.61 22.38
Corporate Center $2,483,278 12.50 12.00 12.00 13.20 16.04 25.90
Countrywood Apts $12,397,033 12.50 12.00 12.00 12.44 16.52 22.83
Creekside $10,567,956 10.00 12.00 12.00 13.11 16.04 25.53
Davie Minis $4,755,938 11.00 12.00 12.00 13.74 15.52 27.45
Essex Park Apts $8,546,527 12.00 12.00 12.00 12.56 16.43 23.32
Fairway Apts $7,201,448 10.50 12.00 12.00 12.96 16.14 24.92
Fairway View I $7,403,002 12.50 12.00 12.00 12.44 16.52 22.84
Fairway View Ii $6,985,147 12.50 12.00 12.00 12.44 16.52 22.84
Foothill Place $20,002,123 10.00 12.00 12.00 13.11 16.04 25.53
Four Winds $10,823,237 11.50 12.00 12.00 12.68 16.33 23.82
Foxfire Apartments $10,309,472 12.50 12.00 12.00 12.44 16.52 22.84
16
SCHEDULE OF PROPERTY CURRENT VALUES WITH SIMULATED PERFORMANCE
STATISTICS FOR UPPER PERCENTILE OF FULL RANGE
DECEMBER 31, 1996
UNLEVERAGED LEVERAGED
PROPERTY VALUE CAP DISC IRR ARR IRR ARR
Foxfire Apts $8,506,565 10.50 12.00 12.00 12.96 16.14 24.93
Greenspoint $13,349,192 10.50 12.00 12.00 12.96 16.14 24.93
Hampton Greens $7,828,403 11.00 12.00 12.00 12.82 16.24 24.36
Heritage Pointe $3,062,238 12.00 12.00 12.00 12.56 16.43 23.32
Huntington Athletic Club $10,174,995 11.50 12.00 12.00 12.68 16.33 23.82
Indian Creek Village $9,112,762 11.00 12.00 12.00 12.82 16.24 24.36
Knolls $10,158,338 11.00 12.00 12.00 12.82 16.24 24.36
Knollwood $11,891,033 10.05 12.00 12.00 13.09 16.05 25.47
Lake Forest $8,516,328 11.50 12.00 12.00 12.68 16.33 23.82
Lake Johnson Mews $8,090,421 12.50 12.00 12.00 12.44 16.52 22.84
Lake Villa $4,743,819 11.00 12.00 12.00 12.82 16.24 24.36
Lakes $21,491,603 12.50 12.00 12.00 12.44 16.52 22.84
Lakeside $23,380,952 10.50 12.00 12.00 12.96 16.14 24.93
Lakeside Place $21,382,635 10.50 12.00 12.00 12.96 16.14 24.93
Lamplighter Park $6,562,564 10.50 12.00 12.00 12.96 16.14 24.93
Lauderhill Minis $1,526,286 9.00 12.00 12.00 15.76 14.50 31.62
Lexington Apts $7,769,917 12.00 12.00 12.00 12.56 16.43 23.32
Loft $7,369,093 12.50 12.00 12.00 12.44 16.52 22.84
Magnolia Trace $5,186,036 13.50 12.00 12.00 12.21 16.70 21.95
Mcmillian Place $11,299,562 10.50 12.00 12.00 12.96 16.14 24.92
Meadows $5,059,448 8.50 12.00 12.00 13.62 15.72 27.62
Millhopper Apts $4,496,606 12.50 12.00 12.00 12.44 16.52 22.84
Misty Woods $6,966,444 11.00 12.00 12.00 12.82 16.24 24.36
Nob Hill Villa $12,625,206 10.50 12.00 12.00 12.96 16.14 24.92
North River Village $4,499,829 10.50 12.00 12.00 12.96 16.14 24.93
Northlake $3,309,099 11.00 12.00 12.00 13.93 15.55 28.80
Northwoods Apts $9,338,487 12.00 12.00 12.00 12.56 16.43 23.32
Nottingham Square $12,560,324 12.00 12.00 12.00 12.56 16.43 23.32
Oak Run $12,818,624 11.00 12.00 12.00 12.82 16.24 24.36
Oakwood Village $6,059,328 10.50 12.00 12.00 12.96 16.14 24.92
Old Salem $11,181,525 13.00 12.00 12.00 12.32 16.61 22.38
Overlook $2,405,364 12.50 12.00 12.00 12.44 16.52 22.84
Overlook Point $10,807,583 12.50 12.00 12.00 12.44 16.52 22.84
Palm Lake $3,492,344 11.50 12.00 12.00 12.68 16.33 23.82
Park Capitol $5,581,674 10.00 12.00 12.00 13.11 16.04 25.53
17
SCHEDULE OF PROPERTY CURRENT VALUES WITH SIMULATED PERFORMANCE
STATISTICS FOR UPPER PERCENTILE OF FULL RANGE
DECEMBER 31, 1996
UNLEVERAGED LEVERAGED
PROPERTY VALUE CAP DISC IRR ARR IRR ARR
Parktown Townhouses $9,504,786 10.50 12.00 12.00 12.96 16.14 24.92
Patchen Place $5,672,509 12.00 12.00 12.00 12.56 16.43 23.31
Pennbrook $32,459,855 11.00 12.00 12.00 12.82 16.24 24.36
Phoenix Bus Center $3,239,684 13.50 12.00 12.00 12.21 16.70 21.95
Phoenix Bus Center C $0 13.00 12.00 0.00 0.00 0.00 0.00
Pines Of Roanoke $5,578,554 11.50 12.00 12.00 12.68 16.33 23.82
Pinetree $6,362,733 11.00 12.00 12.00 12.82 16.24 24.36
Place Du Plantier $7,238,609 12.50 12.00 12.00 12.44 16.52 22.84
Plantation Creek $23,254,315 10.50 12.00 12.00 12.96 16.14 24.93
Plantation Crossing $7,355,551 9.05 12.00 12.00 13.42 15.85 26.78
Plantation Gardens $12,530,633 12.00 12.00 12.00 12.56 16.43 23.31
Point West $2,458,388 12.00 12.00 12.00 12.56 16.43 23.32
Post Ridge $6,347,710 10.50 12.00 12.00 12.96 16.14 24.92
Preston Creek $7,137,983 11.00 12.00 12.00 12.82 16.24 24.36
Professional Plaza $4,811,591 10.75 12.00 12.00 14.38 14.66 24.80
Promontory Point $6,712,655 9.80 12.00 12.00 13.17 16.00 25.78
Quail Hollow Apts $5,641,877 11.50 12.00 12.00 12.68 16.33 23.82
Quail Run Apts $10,716,992 12.00 12.00 12.00 12.56 16.43 23.31
Raintree Apts $4,066,575 12.00 12.00 12.00 12.56 16.43 23.31
Regency Oaks $8,658,793 11.50 12.00 12.00 12.68 16.33 23.82
River Reach Apts $10,019,697 11.00 12.00 12.00 12.82 16.24 24.36
Rivers Edge $3,426,492 11.50 12.00 12.00 12.68 16.33 23.82
Rocky Creek Apts $3,312,318 11.50 12.00 12.00 12.68 16.33 23.82
Rocky Ridge $2,411,043 11.00 12.00 12.00 12.82 16.24 24.36
Sandpiper Apartments $6,405,163 11.50 12.00 12.00 12.68 16.33 23.82
Sands Point $14,006,959 10.50 12.00 12.00 12.96 16.14 24.92
Shirewood $3,662,934 13.00 12.00 12.00 12.32 16.61 22.38
Signal Pointe Apts $9,482,094 10.50 12.00 12.00 12.96 16.14 24.92
Silverado $4,342,845 10.00 12.00 12.00 13.11 16.04 25.53
Ski Lodge $13,417,662 12.00 12.00 12.00 12.56 16.43 23.32
Society Park $4,366,725 12.00 12.00 12.00 12.56 16.43 23.32
Society Park East $4,581,627 13.00 12.00 12.00 12.32 16.61 22.38
South City Business Center $2,773,365 11.00 12.00 12.00 15.69 14.85 35.84
South Port Apts $6,324,324 13.00 12.00 12.00 12.32 16.61 22.38
Southpoint $6,708,037 12.50 12.00 12.00 12.44 16.52 22.84
18
SCHEDULE OF PROPERTY CURRENT VALUES WITH SIMULATED PERFORMANCE
STATISTICS FOR UPPER PERCENTILE OF FULL RANGE
DECEMBER 31, 1996
UNLEVERAGED LEVERAGED
PROPERTY VALUE CAP DISC IRR ARR IRR ARR
St Charleston Village $9,838,766 10.00 12.00 12.00 13.11 16.04 25.53
Stone Mountain West $5,129,906 10.05 12.00 12.00 13.09 16.05 25.46
Stoney Creek $9,224,705 11.00 12.00 12.00 12.82 16.24 24.36
Stratford Place $5,096,867 9.80 12.00 12.00 13.17 16.00 25.78
Summerhill $4,338,887 11.00 12.00 12.00 12.82 16.24 24.36
Summerwalk $6,738,472 10.50 12.00 12.00 12.96 16.14 24.93
Sun River Village $11,734,245 10.50 12.00 12.00 12.96 16.14 24.92
Sunrunner $5,143,886 11.50 12.00 12.00 12.68 16.33 23.82
Tahoe Springs $11,423,276 11.00 12.00 12.00 12.82 16.24 24.36
Tamarac Village $18,502,380 10.00 12.00 12.00 13.11 16.04 25.53
Tar River Estates $9,799,959 13.50 12.00 12.00 12.21 16.70 21.95
Tates Creek Village $5,714,123 12.50 12.00 12.00 12.44 16.52 22.84
The Apartment $5,104,124 12.50 12.00 12.00 12.44 16.52 22.84
The Landings $4,701,124 12.00 12.00 12.00 12.32 15.31 17.64
The Lodge $12,158,623 10.00 12.00 12.00 13.11 16.04 25.53
The Palisades $8,660,758 12.50 12.00 12.00 12.44 16.52 22.84
The Sterling Apartment $16,468,067 11.00 12.00 12.00 12.82 16.24 24.36
The Sterling Commerce $1,650,889 12.00 12.00 12.00 13.03 16.33 25.20
Torrey Pines $5,994,374 10.50 12.00 12.00 12.96 16.14 24.92
Ventura Landing $3,036,769 11.00 12.00 12.00 12.82 16.24 24.36
Village $18,189,508 11.00 12.00 12.00 12.82 16.24 24.36
Village Apts $3,894,214 12.00 12.00 12.00 12.56 16.43 23.32
Village East $4,394,506 10.00 12.00 12.00 13.11 16.04 25.53
Village Gardens $4,971,522 11.00 12.00 12.00 12.82 16.24 24.36
Village Green $3,962,562 8.50 12.00 12.00 13.62 15.72 27.63
Village In The Woods $15,112,998 11.00 12.00 12.00 12.82 16.24 24.36
Vinings Peak $10,492,755 10.50 12.00 12.00 12.96 16.14 24.92
West Chase $2,333,136 12.00 12.00 12.00 12.56 16.43 23.32
Williamsburg I $11,634,851 11.50 12.00 12.00 12.68 16.33 23.82
Williamsburg Manor $7,573,280 12.50 12.00 12.00 12.44 16.52 22.84
Willowick Apts $4,057,715 12.00 12.00 12.00 12.56 16.43 23.31
Windsor Hills $7,892,116 11.50 12.00 12.00 12.68 16.33 23.82
Wood Lake $10,112,824 10.05 12.00 12.00 13.09 16.05 25.47
Woodcreek $16,840,451 10.50 12.00 12.00 12.96 16.14 24.92
Woodland Village I $8,277,445 12.00 12.00 12.00 12.55 16.43 23.30
Woods Of Inverness $5,859,717 11.00 12.00 12.00 12.82 16.24 24.36
Total Value $1,183,488,460
19
SUMMARY OF PORTFOLIO'S CURRENT VALUE AND SIMULATED PERFORMANCE
STATISTICS
DECEMBER 31, 1996
PORTFOLIO CURRENT VALUE, UPPER PERCENTILE FULL RANGE
Capital Return Component
- ------------------------
Reversionary Value
General Market Growth: $ 100,120,787
NOI Growth (or Reduction): 395,912,487
Proforma Entry Value: 866,377,915
Total Reversionary Value: 1,362,411,189
Less: Sales Commissions: 13,624,112
Net Reversionary Value: $ 1,348,787,077
- ---------------------- --------------
Discounted Reversionary Value
General Market Growth: 32,236,215
NOI Growth (or Reduction): 127,473,225
Proforma Entry Value: 278,950,501
Total Discounted Reversionary Value: 438,659,940
Less: Sales Commissions: 4,386,599
Net Discounted Reversionary Value: $ 434,273,341
- --------------------------------- ---------------
Income Return Components
- ------------------------
Net Operating Income
Market NOI: 743,879,871
Leased NOI: 5,335,248
TOTAL PORTFOLIO CURRENT VALUE: $ 1,183,488,460
- ----------------------------- ---------------
Unleveraged Annual Internal Rate of Return: 12.000%
Unleveraged Annual Average Rate of Return: 12.820%
Going In CAP Rate, Adjusted NOI 10.430%
20
SUMMARY OF PORTFOLIO'S SIMULATED PERFORMANCE STATISTICS
DECEMBER 31, 1996
LEVERAGED UPPER PERCENTILE FULL RANGE PORTFOLIO PERFORMANCE
Capital Investment
- ------------------
Current Value: $ 1,183,488,460
Financing For Buyer 885,762,806
Initial Equity Investment: 297,725,654
- -------------------------
Income Returns
- --------------
Cash Flow
1997 $9,255,543
1998 10,913,449
1999 13,150,577
2000 14,971,856
2001 20,646,651
2002 23,171,691
2003 286,045,868
2004 25,417,324
2005 31,497,232
2006 34,223,212 469,293,403
--------------
Capital Returns
- ----------------
Net Reversionary Value: $ 1,348,787,077
Ending Loan Balance: 798,102,821
Reversionary Value After Debt: 550,684,256
-----------
Leveraged Annual Internal Rate of Return: 16.210%
Leveraged Annual Average Rate of Return: 24.259%
21
SCHEDULE OF PROPERTY CURRENT VALUES WITH SIMULATED PERFORMANCE
STATISTICS FOR LOWER PERCENTILE OF FULL RANGE
DECEMBER 31, 1996
UNLEVERAGED LEVERAGED
PROPERTY VALUE CAP DISC IRR ARR IRR ARR
444 Deharo $7,955,018 11.00 13.12 13.12 16.39 17.12 32.71
Alpine $3,619,589 11.50 13.64 13.64 14.95 20.87 32.88
Arbour East $10,457,700 10.50 13.12 13.12 14.53 19.17 31.22
Autumn Run $12,378,642 10.00 12.59 12.59 13.95 17.64 28.89
Baymeadows $30,525,305 11.50 14.17 14.17 15.70 20.38 28.56
Breckinridge Square $9,596,765 12.50 13.9 13.90 15.00 21.89 33.10
Briar Bay Racquet Club $4,159,098 11.00 12.59 12.59 13.63 17.88 27.62
Brighton Crest Apts $9,971,175 10.00 12.59 12.59 14.03 17.56 29.20
Carriage House Apts $3,732,031 12.50 13.64 13.64 14.64 20.33 28.59
Cedar Brooke $3,376,568 12.00 14.17 14.17 15.53 22.45 35.20
Cedar Rim $4,243,881 10.50 12.59 12.59 13.79 17.76 28.23
Celina Plaza $4,250,931 10.00 12.59 12.59 13.95 17.64 28.88
Cherry Creek Garden $11,850,182 10.00 12.59 12.59 13.95 17.64 28.89
Chimney Hill $8,371,975 10.50 13.12 13.12 14.53 19.17 31.22
Churchill Park $8,869,081 12.00 13.9 13.90 15.16 21.74 33.72
Citadel $5,848,852 10.50 13.64 13.64 15.29 20.56 34.25
Citadel Village $5,189,037 10.00 12.59 12.59 13.95 17.64 28.89
City Heights $3,317,096 10.50 12.59 12.59 13.79 17.76 28.23
Colony At Kenilworth $14,097,985 12.00 14.17 14.17 15.62 22.32 35.57
Colony House Apts $3,945,583 10.50 13.12 13.12 14.53 19.17 31.22
Colony Of Springdale $5,686,102 11.00 13.12 13.12 14.37 19.30 30.56
Cooper's Pond $7,049,918 11.50 13.12 13.12 14.21 19.44 29.93
Coopers Pointe $4,994,041 12.00 13.12 13.12 14.06 19.57 29.34
Copper Mill $6,438,455 13.00 14.17 14.17 13.86 24.75 28.52
Corporate Center $2,143,045 12.50 14.17 14.17 16.36 21.87 38.55
Countrywood Apts $13,223,856 12.50 13.64 13.64 14.64 21.16 31.65
Creekside $7,111,139 10.00 12.59 12.59 13.95 17.64 28.89
Davie Minis $4,294,329 11.00 13.64 13.64 16.30 19.63 38.27
Essex Park Apts $4,612,433 12.00 13.12 13.12 14.06 19.57 29.34
Fairway Apts $4,614,071 10.50 13.64 13.64 15.29 20.56 34.26
Fairway View I $6,600,169 12.50 13.64 13.64 14.64 21.16 31.65
Fairway View Ii $5,586,047 12.50 13.64 13.64 14.73 21.04 32.00
Foothill Place $14,608,452 10.00 12.07 12.07 13.20 16.23 25.91
Four Winds $9,762,241 11.50 13.12 13.12 14.21 19.44 29.93
Foxfire Apartments $11,768,767 12.50 13.64 13.64 14.52 21.29 31.17
22
SCHEDULE OF PROPERTY CURRENT VALUES WITH SIMULATED PERFORMANCE
STATISTICS FOR LOWER PERCENTILE OF FULL RANGE
DECEMBER 31, 1996
UNLEVERAGED LEVERAGED
PROPERTY VALUE CAP DISC IRR ARR IRR ARR
Foxfire Apts $7,259,437 10.50 13.12 13.12 14.53 19.17 31.22
Greenspoint $9,971,654 10.50 13.12 13.12 14.53 19.17 31.22
Hampton Greens $4,803,463 11.00 13.64 13.64 15.11 20.72 33.55
Heritage Pointe $2,766,976 12.00 14.17 14.17 15.53 22.45 35.21
Huntington Athletic Club $7,611,391 11.50 12.59 12.59 12.36 19.23 22.52
Indian Creek Village $8,725,823 11.00 12.59 12.59 13.63 17.88 27.62
Knolls $10,494,384 11.00 13.64 13.64 15.11 20.72 33.55
Knollwood $9,826,861 10.05 13.12 13.12 14.69 19.04 31.85
Lake Forest $7,743,682 11.50 14.17 14.17 15.70 22.28 35.88
Lake Johnson Mews $7,736,919 12.50 13.64 13.64 14.64 21.16 31.65
Lake Villa $4,534,543 11.00 13.64 13.64 15.11 20.72 33.55
Lakes $19,618,488 12.50 13.64 13.64 14.64 21.16 31.65
Lakeside $25,097,296 10.50 12.59 12.59 13.79 17.76 28.23
Lakeside Place $14,828,711 10.50 13.12 13.12 14.53 19.17 31.22
Lamplighter Park $4,618,703 10.50 12.59 12.59 13.79 17.76 28.23
Lauderhill Minis $1,766,091 9.00 9.97 9.97 12.26 10.12 16.38
Lexington Apts $7,601,549 12.00 14.17 14.17 15.53 22.45 35.21
Loft $7,996,882 12.50 13.64 13.64 14.64 21.16 31.65
Magnolia Trace $5,685,622 13.50 15.22 15.22 16.53 25.85 39.20
Mcmillian Place $6,970,588 10.50 13.64 13.64 15.29 20.56 34.26
Meadows $3,953,193 8.50 11.54 11.54 12.95 14.49 25.20
Millhopper Apts $4,079,438 12.50 14.69 14.69 16.11 24.05 37.53
Misty Woods $5,408,371 11.00 12.59 12.59 13.63 17.88 27.62
Nob Hill Villa $9,550,008 10.50 13.12 13.12 14.53 19.17 31.22
North River Village $4,408,964 10.50 13.12 13.12 14.53 19.17 31.22
Northlake $2,892,018 11.00 14.17 14.17 17.38 20.85 42.60
Northwoods Apts $8,570,001 12.00 14.17 14.17 15.53 22.45 35.20
Nottingham Square $12,035,422 12.00 14.17 14.17 15.53 22.45 35.20
Oak Run $9,245,407 11.00 13.64 13.64 15.11 20.72 33.55
Oakwood Village $4,601,887 10.50 12.59 12.59 13.79 17.76 28.24
Old Salem $10,985,251 13.00 14.17 14.17 15.22 22.77 33.96
Overlook $2,235,216 12.50 14.17 14.17 15.37 22.61 34.57
Overlook Point $8,258,230 12.50 14.17 14.17 15.37 22.61 34.57
Palm Lake $3,794,539 11.50 12.59 12.59 13.49 17.99 27.04
Park Capitol $4,837,891 10.00 11.02 11.02 11.76 13.33 20.13
23
SCHEDULE OF PROPERTY CURRENT VALUES WITH SIMULATED PERFORMANCE
STATISTICS FOR LOWER PERCENTILE OF FULL RANGE
DECEMBER 31, 1996
UNLEVERAGED LEVERAGED
PROPERTY VALUE CAP DISC IRR ARR IRR ARR
Parktown Townhouses $8,781,374 10.50 13.12 13.12 14.53 19.17 31.22
Patchen Place $5,238,547 12.00 13.64 13.64 14.79 21.02 32.25
Pennbrook $40,827,109 11.00 12.59 12.59 13.47 16.77 21.87
Phoenix Bus Center $2,540,526 13.50 15.22 15.22 16.53 25.85 39.21
Phoenix Bus Center C $0 13.00 13.64 0.00 0.00 0.00 0.00
Pines Of Roanoke $6,227,092 11.50 13.12 13.12 14.21 19.44 29.93
Pinetree $4,427,889 11.00 12.59 12.59 13.63 17.88 27.62
Place Du Plantier $5,849,387 12.50 13.64 13.64 14.64 21.16 31.65
Plantation Creek $17,808,515 10.50 13.12 13.12 14.53 19.17 31.22
Plantation Crossing $5,584,821 9.05 12.07 12.07 13.52 16.03 27.17
Plantation Gardens $13,651,336 12.00 14.17 14.17 15.53 22.45 35.20
Point West $3,250,508 12.00 13.12 13.12 14.06 18.07 23.66
Post Ridge $6,462,801 10.50 13.12 13.12 14.53 19.17 31.22
Preston Creek $5,684,108 11.00 13.64 13.64 15.11 20.72 33.55
Professional Plaza $4,790,042 10.75 12.07 12.07 14.49 14.83 25.32
Promontory Point $5,512,385 9.80 12.07 12.07 13.27 16.18 26.16
Quail Hollow Apts $5,663,136 11.50 14.17 14.17 15.70 22.28 35.88
Quail Run Apts $9,253,775 12.00 13.12 13.12 14.06 19.57 29.34
Raintree Apts $4,620,958 12.00 14.17 14.17 15.53 22.45 35.20
Regency Oaks $8,361,200 11.50 12.59 12.59 13.49 17.99 27.04
River Reach Apts $15,238,463 11.00 12.59 12.59 13.63 15.58 18.38
Rivers Edge $4,562,875 11.50 13.64 13.64 14.95 18.83 25.07
Rocky Creek Apts $3,155,224 11.50 12.59 12.59 13.49 17.99 27.03
Rocky Ridge $2,374,633 11.00 13.12 13.12 14.37 19.30 30.56
Sandpiper Apartments $6,199,919 11.50 12.59 12.59 13.49 17.99 27.04
Sands Point $13,089,910 10.50 13.12 13.12 14.53 19.17 31.22
Shirewood $3,132,099 13.00 14.17 14.17 15.22 22.77 33.96
Signal Pointe Apts $10,158,329 10.50 12.59 12.59 13.79 17.76 28.23
Silverado $1,610,506 10.00 12.59 12.59 13.95 17.64 28.88
Ski Lodge $11,471,442 12.00 14.17 14.17 15.53 22.45 35.20
Society Park $9,117,362 12.00 13.64 13.64 14.79 16.63 18.08
Society Park East $3,915,754 13.00 14.17 14.17 15.22 22.77 33.96
South City Business Center $2,391,352 11.00 14.17 14.17 19.79 19.56 52.26
South Port Apts $5,581,148 13.00 14.17 14.17 15.22 22.77 33.96
Southpoint $5,740,660 12.50 13.64 13.64 14.64 21.16 31.65
24
SCHEDULE OF PROPERTY CURRENT VALUES WITH SIMULATED PERFORMANCE
STATISTICS FOR LOWER PERCENTILE OF FULL RANGE
DECEMBER 31, 1996
UNLEVERAGED LEVERAGED
PROPERTY VALUE CAP DISC IRR ARR IRR ARR
St Charleston Village $10,343,193 10.00 11.54 11.54 12.47 14.79 22.99
Stone Mountain West $6,233,681 10.05 13.12 13.12 14.69 17.94 26.52
Stoney Creek $6,569,700 11.00 13.64 13.64 15.11 20.72 33.55
Stratford Place $5,274,569 9.80 12.07 12.07 13.27 16.18 26.17
Summerhill $3,432,204 11.00 13.64 13.64 15.11 20.72 33.55
Summerwalk $5,358,789 10.50 13.12 13.12 14.53 19.17 31.22
Sun River Village $11,857,677 10.50 13.12 13.12 14.53 19.17 31.22
Sunrunner $3,391,691 11.50 12.59 12.59 13.49 17.99 27.04
Tahoe Springs $10,799,206 11.00 12.59 12.59 13.63 17.88 27.62
Tamarac Village $14,907,745 10.00 12.59 12.59 13.95 17.64 28.89
Tar River Estates $8,506,432 13.50 14.69 14.69 15.80 24.39 36.28
Tates Creek Village $5,888,205 12.50 14.17 14.17 15.37 22.61 34.57
The Apartment $4,354,469 12.50 14.17 14.17 15.37 22.61 34.57
The Landings $3,586,114 12.00 13.12 13.12 13.72 19.94 27.97
The Lodge $9,545,316 10.00 12.59 12.59 13.95 17.64 28.89
The Palisades $6,394,612 12.50 14.17 14.17 15.37 22.61 34.57
The Sterling Apartment $17,216,939 11.00 12.59 12.59 13.63 17.88 27.62
The Sterling Commerce $1,546,237 12.00 13.12 13.12 14.58 19.54 31.43
Torrey Pines $6,030,655 10.50 12.07 12.07 13.05 16.33 25.30
Ventura Landing $3,442,306 11.00 13.12 13.12 14.37 19.30 30.56
Village $16,797,607 11.00 12.59 12.59 13.63 17.88 27.62
Village Apts $3,841,493 12.00 14.17 14.17 15.53 22.45 35.20
Village East $3,931,809 10.00 12.59 12.59 13.95 17.64 28.89
Village Gardens $4,696,528 11.00 12.59 12.59 13.63 17.88 27.62
Village Green $3,968,568 8.50 11.54 11.54 12.95 14.49 25.20
Village In The Woods $13,594,345 11.00 13.12 13.12 14.37 19.30 30.56
Vinings Peak $8,117,937 10.50 13.12 13.12 14.53 19.17 31.22
West Chase $2,340,817 12.00 13.64 13.64 14.79 21.02 32.25
Williamsburg I $7,161,716 11.50 14.17 14.17 15.70 22.28 35.88
Williamsburg Manor $7,197,741 12.50 13.64 13.64 14.64 21.16 31.65
Willowick Apts $3,282,903 12.00 14.17 14.17 15.53 22.45 35.20
Windsor Hills $6,703,731 11.50 13.64 13.64 14.95 20.87 32.88
Wood Lake $6,597,149 10.05 13.12 13.12 14.69 19.04 31.85
Woodcreek $15,175,522 10.50 13.12 13.12 14.53 19.17 31.22
Woodland Village I $7,347,449 12.00 13.12 13.12 14.06 19.57 29.34
Woods Of Inverness $4,651,232 11.00 13.12 13.12 14.37 19.30 30.56
Total Value $1,067,125,930
25
SUMMARY OF PORTFOLIO'S CURRENT VALUE AND SIMULATED PERFORMANCE
STATISTICS
DECEMBER 31, 1996
PORTFOLIO CURRENT VALUE, LOWER PERCENTILE FULL RANGE
Capital Return Components
- -------------------------
Reversionary Value
General Market Growth: $203,978,484
NOI Growth (or Reduction): 320,285,312
Proforma Entry Value: 788,118,908
Total Reversionary Value: 1,312,382,704
Less: Sales Commissions: 13,123,827
Net Reversionary Value: 1,299,258,877
Discounted Reversionary Value
General Market Growth: 59,177,071
NOI Growth (or Reduction): 91,675,586
Proforma Entry Value: 228,774,259
Total Discounted Reversionary Value: 379,626,916
Less: Sales Commissions: 3,796,269
Net Discounted Reversionary Value: $375,830,647
--------------------------------- ------------
Income Return Components
- ------------------------
Net Operating Income
Market NOI: $ 686,070,971
Leased NOI: 5,224,313
TOTAL PORTFOLIO CURRENT VALUE: $1,067,125,930
- ------------------------------ --------------
Unleveraged Annual Internal Rate of Return: 13.231%
Unleveraged Annual Average Rate of Return: 14.490%
Going In CAP Rate, Adjusted NOI 12.920%
26
SUMMARY OF PORTFOLIO'S SIMULATED PERFORMANCE STATISTICS
DECEMBER 31, 1996
LEVERAGED LOWER PERCENTILE FULL RANGE PORTFOLIO PERFORMANCE
Capital Investment
- ------------------
Current Value: $1,067,125,930
Financing For Buyer 786,674,993
Initial Equity Investment: 280,450,937
- ------------------------- -----------
Income Returns
- --------------
Cash Flow
1997 18,782,566
1998 20,498,541
1999 22,579,915
2000 24,247,323
2001 29,762,863
2002 32,125,163
2003 277,571,840
2004 32,532,719
2005 38,440,139
2006 40,997,101 537,538,170
-----------
Capital Returns
- ----------------
Net Reversionary Value: $1,299,258,877
Ending Loan Balance: 719,482,909
Reversionary Value After Debt: 579,775,968
-----------
Leveraged Annual Internal Rate of Return: 19.371%
Leveraged Annual Average Rate of Return: 29.840%
27
SCHEDULE OF PROPERTY CURRENT VALUES WITH SIMULATED PERFORMANCE
STATISTICS FOR UPPER PERCENTILE OF NARROW RANGE
DECEMBER 31, 1996
UNLEVERAGED LEVERAGED
PROPERTY VALUE CAP DISC IRR ARR IRR ARR
444 Deharo $8,282,136 11.00 12.50 12.50 15.35 15.59 27.40
Alpine $3,923,049 11.50 13.00 13.00 14.05 19.12 29.28
Arbour East $11,290,754 10.50 12.50 12.50 13.65 17.50 27.71
Autumn Run $13,377,495 10.00 12.00 12.00 13.11 16.04 25.53
Baymeadows $32,941,723 11.50 13.50 13.50 14.74 18.12 23.17
Breckinridge Square $10,322,378 12.50 13.25 13.25 14.10 20.07 29.50
Briar Bay Racquet Club $4,557,917 11.00 12.00 12.00 12.82 16.24 24.36
Brighton Crest Apts $10,739,607 10.00 12.00 12.00 13.18 15.98 25.81
Carriage House Apts $4,011,309 12.50 13.00 13.00 13.76 17.83 22.61
Cedar Brooke $3,682,431 12.00 13.50 13.50 14.59 20.63 31.46
Cedar Rim $4,575,520 10.50 12.00 12.00 12.96 16.14 24.93
Celina Plaza $4,724,006 10.00 12.00 12.00 13.11 16.04 25.52
Cherry Creek Garden $12,729,260 10.00 12.00 12.00 13.11 16.04 25.53
Chimney Hill $9,110,666 10.50 12.50 12.50 13.65 17.50 27.71
Churchill Park $9,595,966 12.00 13.25 13.25 14.24 19.94 30.07
Citadel $6,385,125 10.50 13.00 13.00 14.36 18.85 30.54
Citadel Village $5,568,183 10.00 12.00 12.00 13.11 15.87 24.51
City Heights $3,590,798 10.50 12.00 12.00 12.96 16.14 24.93
Colony At Kenilworth $15,208,114 12.00 13.50 13.50 14.67 20.52 31.79
Colony House Apts $4,326,569 10.50 12.50 12.50 13.65 17.50 27.71
Colony Of Springdale $6,199,202 11.00 12.50 12.50 13.50 17.62 27.10
Cooper's Pond $7,734,624 11.50 12.50 12.50 13.36 17.73 26.53
Coopers Pointe $5,383,451 12.00 12.50 12.50 13.22 17.85 25.98
Copper Mill $6,915,144 13.00 13.50 13.50 13.07 22.60 25.38
Corporate Center $2,227,552 12.50 13.50 13.50 15.36 20.10 34.55
Countrywood Apts $14,182,156 12.50 13.00 13.00 13.76 19.37 28.15
Creekside $7,703,779 10.00 12.00 12.00 13.11 16.04 25.53
Davie Minis $4,467,338 11.00 13.00 13.00 15.28 18.08 34.20
Essex Park Apts $5,043,698 12.00 12.50 12.50 13.22 17.85 25.98
Fairway Apts $5,060,528 10.50 13.00 13.00 14.36 18.85 30.54
Fairway View I $7,087,651 12.50 13.00 13.00 13.76 19.37 28.15
Fairway View Ii $6,003,099 12.50 13.00 13.00 13.84 19.27 28.46
Foothill Place $15,673,974 10.00 11.50 11.50 12.41 14.67 22.75
Four Winds $10,509,959 11.50 12.50 12.50 13.36 17.73 26.53
Foxfire Apartments $12,646,611 12.50 13.00 13.00 13.65 18.86 25.45
28
SCHEDULE OF PROPERTY CURRENT VALUES WITH SIMULATED PERFORMANCE
STATISTICS FOR UPPER PERCENTILE OF NARROW RANGE
DECEMBER 31, 1996
UNLEVERAGED LEVERAGED
PROPERTY VALUE CAP DISC IRR ARR IRR ARR
Foxfire Apts $7,864,139 10.50 12.50 12.50 13.65 17.50 27.71
Greenspoint $10,769,894 10.50 12.50 12.50 13.65 17.50 27.71
Hampton Greens $5,250,944 11.00 13.00 13.00 14.20 18.98 29.89
Heritage Pointe $3,006,383 12.00 13.50 13.50 14.59 20.63 31.46
Huntington Athletic Club $8,161,861 11.50 12.00 12.00 11.66 17.32 19.73
Indian Creek Village $9,399,100 11.00 12.00 12.00 12.82 16.24 24.36
Knolls $11,257,159 11.00 13.00 13.00 14.20 18.94 29.68
Knollwood $10,613,715 10.05 12.50 12.50 13.80 17.40 28.29
Lake Forest $8,374,084 11.50 13.50 13.50 14.74 20.48 32.07
Lake Johnson Mews $8,290,573 12.50 13.00 13.00 13.76 19.37 28.15
Lake Villa $4,889,565 11.00 13.00 13.00 14.20 18.99 29.89
Lakes $21,044,329 12.50 13.00 13.00 13.76 19.37 28.15
Lakeside $27,054,007 10.50 12.00 12.00 12.96 15.84 23.34
Lakeside Place $16,324,074 10.50 12.50 12.50 13.65 17.50 27.71
Lamplighter Park $5,015,722 10.50 12.00 12.00 12.96 16.14 24.93
Lauderhill Minis $1,828,187 9.00 9.50 9.50 11.50 9.20 14.02
Lexington Apts $8,240,671 12.00 13.50 13.50 14.59 20.63 31.46
Loft $8,581,947 12.50 13.00 13.00 13.76 19.37 28.14
Magnolia Trace $6,145,417 13.50 14.50 14.50 15.53 23.86 35.22
Mcmillian Place $7,598,727 10.50 13.00 13.00 14.36 18.85 30.54
Meadows $4,329,113 8.50 11.00 11.00 12.17 13.03 22.36
Millhopper Apts $4,404,387 12.50 14.00 14.00 15.14 22.15 33.63
Misty Woods $5,844,655 11.00 12.00 12.00 12.82 16.24 24.36
Nob Hill Villa $10,351,245 10.50 12.50 12.50 13.65 17.50 27.71
North River Village $4,786,806 10.50 12.50 12.50 13.65 17.50 27.71
Northlake $3,012,356 11.00 13.50 13.50 16.28 19.25 38.23
Northwoods Apts $9,217,496 12.00 13.50 13.50 14.59 20.63 31.45
Nottingham Square $13,013,570 12.00 13.50 13.50 14.59 20.63 31.45
Oak Run $10,005,556 11.00 13.00 13.00 14.20 18.98 29.89
Oakwood Village $5,066,370 10.50 12.00 12.00 12.96 16.14 24.93
Old Salem $11,838,085 13.00 13.50 13.50 14.30 20.91 30.31
Overlook $2,488,146 12.50 13.50 13.50 14.44 20.77 30.87
Overlook Point $8,883,693 12.50 13.50 13.50 14.44 20.77 30.87
Palm Lake $4,134,506 11.50 12.00 12.00 12.68 16.33 23.82
Park Capitol $5,185,243 10.00 10.50 10.50 11.06 11.82 17.62
29
SCHEDULE OF PROPERTY CURRENT VALUES WITH SIMULATED PERFORMANCE
STATISTICS FOR UPPER PERCENTILE OF NARROW RANGE
DECEMBER 31, 1996
UNLEVERAGED LEVERAGED
PROPERTY VALUE CAP DISC IRR ARR IRR ARR
Parktown Townhouses $9,532,174 10.50 12.50 12.50 13.65 17.50 27.71
Patchen Place $5,667,312 12.00 13.00 13.00 13.90 19.24 28.70
Pennbrook $43,530,731 11.00 12.00 12.00 12.67 14.96 17.97
Phoenix Bus Center $2,790,197 13.50 14.50 14.50 15.53 23.86 35.22
Phoenix Bus Center C $0 13.00 13.00 0.00 0.00 0.00 0.00
Pines Of Roanoke $6,730,636 11.50 12.50 12.50 13.36 17.37 24.91
Pinetree $4,803,655 11.00 12.00 12.00 12.82 16.24 24.36
Place Du Plantier $6,309,946 12.50 13.00 13.00 13.76 19.37 28.15
Plantation Creek $19,157,080 10.50 12.50 12.50 13.65 17.50 27.71
Plantation Crossing $6,053,274 9.05 11.50 11.50 12.70 14.50 24.00
Plantation Gardens $14,735,988 12.00 13.50 13.50 14.59 20.63 31.45
Point West $3,499,244 12.00 12.50 12.50 13.22 16.05 19.23
Post Ridge $6,959,136 10.50 12.50 12.50 13.65 17.50 27.71
Preston Creek $6,187,878 11.00 13.00 13.00 14.20 18.98 29.89
Professional Plaza $4,973,008 10.75 11.50 11.50 13.59 13.47 21.37
Promontory Point $6,046,336 9.80 11.50 11.50 12.47 14.64 22.98
Quail Hollow Apts $6,125,138 11.50 13.50 13.50 14.75 20.48 32.07
Quail Run Apts $9,998,932 12.00 12.50 12.50 13.22 17.85 25.98
Raintree Apts $4,987,099 12.00 13.50 13.50 14.59 19.91 28.63
Regency Oaks $9,042,634 11.50 12.00 12.00 12.68 16.33 23.82
River Reach Apts $16,326,988 11.00 12.00 12.00 12.82 14.15 15.70
Rivers Edge $4,900,509 11.50 13.00 13.00 14.05 16.85 20.68
Rocky Creek Apts $3,415,270 11.50 12.00 12.00 12.68 16.33 23.82
Rocky Ridge $2,599,678 11.00 12.50 12.50 13.50 17.62 27.10
Sandpiper Apartments $6,768,867 11.50 12.00 12.00 12.68 16.33 23.82
Sands Point $14,098,993 10.50 12.50 12.50 13.65 17.50 27.71
Shirewood $3,426,801 13.00 13.50 13.50 14.31 20.91 30.31
Signal Pointe Apts $10,972,237 10.50 12.00 12.00 12.96 15.84 23.34
Silverado $1,894,563 10.00 12.00 12.00 13.11 16.04 25.52
Ski Lodge $12,339,819 12.00 13.50 13.50 14.59 20.63 31.45
Society Park $9,870,942 12.00 13.00 13.00 13.90 15.30 15.83
Society Park East $4,260,526 13.00 13.50 13.50 14.31 20.91 30.31
South City Business Center $2,501,210 11.00 13.50 13.50 18.48 18.13 47.02
South Port Apts $6,001,388 13.00 13.50 13.50 14.31 20.91 30.31
Southpoint $6,190,312 12.50 13.00 13.00 13.76 19.37 28.15
30
SCHEDULE OF PROPERTY CURRENT VALUES WITH SIMULATED PERFORMANCE
STATISTICS FOR UPPER PERCENTILE OF NARROW RANGE
DECEMBER 31, 1996
UNLEVERAGED LEVERAGED
PROPERTY VALUE CAP DISC IRR ARR IRR ARR
St Charleston Village $11,144,166 10.00 11.00 11.00 11.73 13.08 18.59
Stone Mountain West $6,727,673 10.05 12.50 12.50 13.80 15.94 21.28
Stoney Creek $7,161,075 11.00 13.00 13.00 14.20 18.98 29.89
Stratford Place $5,763,672 9.80 11.50 11.50 12.47 14.63 22.90
Summerhill $3,792,994 11.00 13.00 13.00 14.20 18.98 29.89
Summerwalk $5,881,229 10.50 12.50 12.50 13.65 17.50 27.71
Sun River Village $12,738,345 10.50 12.50 12.50 13.65 17.50 27.71
Sunrunner $3,705,713 11.50 12.00 12.00 12.68 16.33 23.82
Tahoe Springs $11,704,141 11.00 12.00 12.00 12.82 16.24 24.36
Tamarac Village $16,125,028 10.00 12.00 12.00 13.11 16.04 25.53
Tar River Estates $9,205,725 13.50 14.00 14.00 14.85 22.46 32.48
Tates Creek Village $6,382,315 12.50 13.50 13.50 14.44 20.77 30.87
The Apartment $4,714,599 12.50 13.50 13.50 14.44 20.77 30.87
The Landings $3,881,248 12.00 12.50 12.50 12.92 18.14 24.78
The Lodge $10,275,345 10.00 12.00 12.00 13.11 16.04 25.53
The Palisades $6,951,433 12.50 13.50 13.50 14.44 20.77 30.87
The Sterling Apartment $18,991,612 11.00 12.00 12.00 12.82 16.24 24.36
The Sterling Commerce $1,602,838 12.00 12.50 12.50 13.72 17.77 27.96
Torrey Pines $6,513,628 10.50 11.50 11.50 12.27 14.75 22.19
Ventura Landing $3,780,096 11.00 12.50 12.50 13.50 17.27 25.45
Village $18,256,487 11.00 12.00 12.00 12.82 16.24 24.36
Village Apts $4,151,938 12.00 13.50 13.50 14.59 20.63 31.45
Village East $4,233,973 10.00 12.00 12.00 13.11 16.04 25.53
Village Gardens $5,048,036 11.00 12.00 12.00 12.82 16.24 24.36
Village Green $4,323,497 8.50 11.00 11.00 12.17 12.87 20.81
Village In The Woods $14,717,192 11.00 12.50 12.50 13.50 17.62 27.10
Vinings Peak $8,817,812 10.50 12.50 12.50 13.65 17.50 27.71
West Chase $2,559,045 12.00 13.00 13.00 13.90 19.25 28.70
Williamsburg I $7,854,020 11.50 13.50 13.50 14.75 20.48 32.07
Williamsburg Manor $7,727,732 12.50 13.00 13.00 13.76 19.37 28.15
Willowick Apts $3,571,175 12.00 13.50 13.50 14.59 20.63 31.46
Windsor Hills $7,221,627 11.50 13.00 13.00 14.05 19.12 29.28
Wood Lake $7,157,126 10.05 12.50 12.50 13.80 17.40 28.29
Woodcreek $16,283,378 10.50 12.50 12.50 13.65 17.50 27.71
Woodland Village I $7,978,062 12.00 12.50 12.50 13.22 17.85 25.98
Woods Of Inverness $5,139,628 11.00 12.50 12.50 13.50 17.62 27.10
Total Value $1,152,835,601
31
SUMMARY OF PORTFOLIO'S CURRENT VALUE AND SIMULATED PERFORMANCE
STATISTICS
DECEMBER 31, 1996
PORTFOLIO CURRENT VALUE, UPPER PERCENTILE NARROW RANGE
Capital Return Component
- ------------------------
Reversionary Value
General Market Growth: $155,522,141
NOI Growth (or Reduction): 384,648,076
Proforma Entry Value: 827,074,110
Total Reversionary Value: 1,367,244,328
Less: Sales Commissions: 13,672,443
Net Reversionary Value: $1,353,571,884
- ---------------------- --------------
Discounted Reversionary Value
General Market Growth: 47,727,384
NOI Growth (or Reduction): 116,532,209
Proforma Entry Value: 253,621,423
Total Discounted Reversionary Value: 417,881,016
Less: Sales Commissions: 4,178,810
Net Discounted Reversionary Value: $413,702,206
- -------------------------------- ------------
Income Return Components
- ------------------------
Net Operating Income
Market NOI: 733,857,713
Leased NOI: 5,275,683
TOTAL PORTFOLIO CURRENT VALUE: $1,152,835,601
- ------------------------------ --------------
Unleveraged Annual Internal Rate of Return: 12.608%
Unleveraged Annual Average Rate of Return: 13.618%
Going In CAP Rate, Adjusted NOI 10.860%
32
SUMMARY OF PORTFOLIO'S SIMULATED PERFORMANCE STATISTICS
DECEMBER 31, 1996
LEVERAGED UPPER PERCENTILE NARROW RANGE PORTFOLIO PERFORMANCE
Capital Investment
- ------------------
Current Value: $1,152,835,601
Financing For Buyer 842,116,385
Initial Equity Investment: 310,719,216
- ------------------------ -----------
Income Returns
- --------------
Cash Flow
1997 $16,657,052
1998 18,478,822
1999 20,661,399
2000 22,432,048
2001 28,052,923
2002 30,522,600
2003 300,694,075
2004 30,063,521
2005 36,084,970
2006 38,758,159 542,405,569
-----------
Capital Returns
- ----------------
Net Reversionary Value: $1,353,571,884
Ending Loan Balance: 776,921,301
Reversionary Value After Debt: 576,650,583
-----------
Leveraged Annual Internal Rate of Return: 17.609%
Leveraged Annual Average Rate of Return: 26.015%
33
SCHEDULE OF PROPERTY CURRENT VALUES WITH SIMULATED PERFORMANCE
STATISTICS FOR LOWER PERCENTILE OF NARROW RANGE
DECEMBER 31, 1996
UNLEVERAGED LEVERAGED
PROPERTY VALUE CAP DISC IRR ARR IRR ARR
444 Deharo $8,064,090 11.00 12.91 12.91 16.03 16.59 30.79
Alpine $3,772,811 11.50 12.92 12.92 13.93 18.89 28.83
Arbour East $10,863,005 10.50 12.47 12.47 13.62 17.43 27.56
Autumn Run $13,073,108 10.00 11.69 11.69 12.68 15.19 23.80
Baymeadows $30,489,939 11.50 14.19 14.19 15.73 20.44 28.70
Breckinridge Square $9,944,865 12.50 13.27 13.27 14.13 20.12 29.60
Briar Bay Racquet Club $4,101,335 11.00 12.83 12.83 13.96 18.53 28.95
Brighton Crest Apts $10,749,251 10.00 11.36 11.36 12.29 14.25 22.24
Carriage House Apts $3,776,831 12.50 13.43 13.43 14.35 19.61 26.93
Cedar Brooke $3,679,174 12.00 12.65 12.65 13.43 18.27 26.81
Cedar Rim $4,177,109 10.50 12.86 12.86 14.17 18.48 29.75
Celina Plaza $4,372,197 10.00 12.13 12.13 13.28 16.38 26.23
Cherry Creek Garden $12,619,063 10.00 11.55 11.55 12.49 14.82 23.05
Chimney Hill $8,951,822 10.50 11.99 11.99 12.94 16.11 24.86
Churchill Park $9,479,275 12.00 12.73 12.73 13.54 18.50 27.24
Citadel $6,078,936 10.50 12.98 12.98 14.33 18.80 30.43
Citadel Village $5,452,237 10.00 11.77 11.77 12.79 15.42 24.26
City Heights $3,397,413 10.50 12.19 12.19 13.22 16.66 25.98
Colony At Kenilworth $14,694,573 12.00 13.43 13.43 14.58 20.33 31.41
Colony House Apts $4,250,446 10.50 11.86 11.86 12.77 15.77 24.18
Colony Of Springdale $5,879,921 11.00 12.54 12.54 13.56 17.74 27.34
Cooper's Pond $7,167,786 11.50 12.83 12.83 13.81 18.65 28.34
Coopers Pointe $5,089,201 12.00 12.79 12.79 13.61 18.66 27.54
Copper Mill $6,722,221 13.00 13.33 13.33 12.85 22.09 24.49
Corporate Center $2,242,259 12.50 13.39 13.39 15.20 19.80 33.88
Countrywood Apts $13,732,036 12.50 12.97 12.97 13.73 19.30 28.01
Creekside $7,671,976 10.00 11.34 11.34 12.20 14.23 21.88
Davie Minis $4,388,987 11.00 13.29 13.29 15.73 18.77 36.01
Essex Park Apts $4,808,728 12.00 12.39 12.39 13.08 17.55 25.41
Fairway Apts $4,945,070 10.50 12.46 12.46 13.60 17.40 27.49
Fairway View I $6,834,633 12.50 13.02 13.02 13.79 19.44 28.27
Fairway View Ii $5,830,572 12.50 12.89 12.89 13.69 18.96 27.85
Foothill Place $15,683,783 10.00 10.91 10.91 11.61 13.02 19.60
Four Winds $10,527,339 11.50 11.83 11.83 12.45 15.84 22.89
Foxfire Apartments $12,212,964 12.50 12.98 12.98 13.63 19.34 27.29
34
SCHEDULE OF PROPERTY CURRENT VALUES WITH SIMULATED PERFORMANCE
STATISTICS FOR LOWER PERCENTILE OF NARROW RANGE
DECEMBER 31, 1996
UNLEVERAGED LEVERAGED
PROPERTY VALUE CAP DISC IRR ARR IRR ARR
Foxfire Apts $7,546,668 10.50 12.46 12.46 13.60 17.40 27.48
Greenspoint $10,743,168 10.50 11.86 11.86 12.77 15.76 24.17
Hampton Greens $5,216,869 11.00 12.23 12.23 13.12 16.86 25.59
Heritage Pointe $2,929,312 12.00 13.15 13.15 14.11 19.67 29.55
Huntington Athletic Club $7,689,295 11.50 12.41 12.41 12.13 18.64 21.61
Indian Creek Village $8,852,575 11.00 12.35 12.35 13.29 17.20 26.26
Knolls $10,716,224 11.00 13.28 13.28 14.59 19.74 31.47
Knollwood $10,241,115 10.05 12.42 12.42 13.69 17.19 27.85
Lake Forest $8,043,530 11.50 13.49 13.49 14.74 20.47 32.04
Lake Johnson Mews $8,059,234 12.50 12.92 12.92 13.65 19.14 27.71
Lake Villa $4,641,458 11.00 13.24 13.24 14.53 19.63 31.23
Lakes $20,392,136 12.50 12.96 12.96 13.71 19.25 27.91
Lakeside $25,977,278 10.50 12.02 12.02 12.98 16.18 25.01
Lakeside Place $14,645,789 10.50 13.33 13.33 14.84 19.73 32.44
Lamplighter Park $4,703,358 10.50 12.29 12.29 13.36 16.93 26.52
Lauderhill Minis $1,683,476 9.00 10.63 10.63 13.35 11.46 20.27
Lexington Apts $7,952,312 12.00 13.36 13.36 14.40 20.25 30.70
Loft $8,174,033 12.50 13.25 13.25 14.11 20.08 29.52
Magnolia Trace $6,183,681 13.50 13.66 13.66 14.39 21.50 30.66
Mcmillian Place $7,777,452 10.50 11.79 11.79 12.67 15.55 23.76
Meadows $3,854,361 8.50 11.95 11.95 13.54 15.58 27.34
Millhopper Apts $4,380,208 12.50 13.41 13.41 14.32 20.51 30.36
Misty Woods $5,517,030 11.00 12.26 12.26 13.17 16.95 25.75
Nob Hill Villa $9,978,622 10.50 12.37 12.37 13.48 17.16 27.00
North River Village $4,660,719 10.50 12.18 12.18 13.21 16.63 25.92
Northlake $3,205,137 11.00 12.50 12.50 14.70 16.81 31.90
Northwoods Apts $9,055,616 12.00 13.19 13.19 14.16 19.77 29.73
Nottingham Square $12,913,520 12.00 12.92 12.92 13.79 19.02 28.26
Oak Run $9,818,918 11.00 12.60 12.60 13.65 17.91 27.68
Oakwood Village $4,828,959 10.50 11.79 11.79 12.67 15.55 23.76
Old Salem $11,498,335 13.00 13.34 13.34 14.09 20.46 29.46
Overlook $2,272,978 12.50 13.86 13.86 14.95 21.78 32.88
Overlook Point $8,942,289 12.50 12.75 12.75 13.43 18.67 26.80
Palm Lake $3,556,096 11.50 13.72 13.72 15.06 21.09 33.34
Park Capitol $4,937,258 10.00 10.69 10.69 11.32 12.38 18.54
35
SCHEDULE OF PROPERTY CURRENT VALUES WITH SIMULATED PERFORMANCE
STATISTICS FOR LOWER PERCENTILE OF NARROW RANGE
DECEMBER 31, 1996
UNLEVERAGED LEVERAGED
PROPERTY VALUE CAP DISC IRR ARR IRR ARR
Parktown Townhouses $8,538,343 10.50 13.60 13.60 15.23 20.45 34.01
Patchen Place $5,563,788 12.00 12.59 12.59 13.34 18.09 26.45
Pennbrook $41,011,852 11.00 12.52 12.52 13.36 16.55 21.41
Phoenix Bus Center $2,911,090 13.50 12.73 12.73 13.15 18.83 25.70
Phoenix Bus Center C $0 13.00 12.73 0.00 0.00 0.00 0.00
Pines Of Roanoke $6,454,190 11.50 12.50 12.50 13.36 17.73 26.52
Pinetree $4,337,877 11.00 12.94 12.94 14.12 18.83 29.58
Place Du Plantier $6,145,575 12.50 12.77 12.77 13.45 18.72 26.90
Plantation Creek $19,384,720 10.50 11.69 11.69 12.54 15.29 23.24
Plantation Crossing $5,999,108 9.05 10.92 10.92 11.90 12.90 21.07
Plantation Gardens $14,572,350 12.00 13.01 13.01 13.91 19.27 28.75
Point West $3,235,980 12.00 13.20 13.20 14.17 18.30 24.15
Post Ridge $6,826,642 10.50 12.19 12.19 13.22 16.67 25.99
Preston Creek $5,946,231 11.00 12.86 12.86 14.01 18.61 29.12
Professional Plaza $5,060,399 10.75 11.24 11.24 13.18 12.87 19.77
Promontory Point $5,248,975 9.80 12.88 12.88 14.44 18.35 30.83
Quail Hollow Apts $5,965,200 11.50 13.25 13.25 14.39 19.80 30.67
Quail Run Apts $9,722,809 12.00 12.26 12.26 12.90 17.17 24.70
Raintree Apts $5,088,165 12.00 12.47 12.47 13.18 17.02 22.79
Regency Oaks $8,295,345 11.50 12.73 12.73 13.67 18.37 27.78
River Reach Apts $15,159,295 11.00 12.68 12.68 13.75 15.78 18.75
Rivers Edge $4,787,479 11.50 12.80 12.80 13.78 16.60 20.51
Rocky Creek Apts $3,300,277 11.50 11.83 11.83 12.45 15.85 22.91
Rocky Ridge $2,430,144 11.00 12.72 12.72 13.81 18.23 28.33
Sandpiper Apartments $6,047,192 11.50 13.02 13.02 14.08 19.18 29.41
Sands Point $13,934,801 10.50 12.06 12.06 13.04 16.31 25.27
Shirewood $3,232,732 13.00 13.59 13.59 14.43 21.17 30.82
Signal Pointe Apts $10,582,150 10.50 11.91 11.91 12.83 15.89 24.42
Silverado $1,745,897 10.00 11.26 11.26 12.09 14.02 21.45
Ski Lodge $12,100,094 12.00 13.22 13.22 14.20 19.85 29.90
Society Park $8,841,353 12.00 14.19 14.19 15.56 17.70 19.85
Society Park East $4,037,140 13.00 13.61 13.61 14.46 21.23 30.93
South City Bus Center $2,554,929 11.00 13.19 13.19 17.88 17.45 44.63
South Port Apts $5,768,640 13.00 13.57 13.57 14.40 21.10 30.69
Southpoint $6,021,368 12.50 12.80 12.80 13.49 18.80 27.06
36
SCHEDULE OF PROPERTY CURRENT VALUES WITH SIMULATED PERFORMANCE
STATISTICS FOR LOWER PERCENTILE OF NARROW RANGE
DECEMBER 31, 1996
UNLEVERAGED LEVERAGED
PROPERTY VALUE CAP DISC IRR ARR IRR ARR
St Charleston Village $9,740,127 10.00 12.54 12.54 13.87 17.48 28.56
Stone Mountain West $6,534,979 10.05 12.33 12.33 13.55 15.75 21.38
Stoney Creek $6,819,944 11.00 12.99 12.99 14.19 18.97 29.86
Stratford Place $5,176,349 9.80 12.38 12.38 13.71 17.02 27.93
Summerhill $3,629,307 11.00 12.68 12.68 13.75 18.11 28.09
Summerwalk $5,704,097 10.50 12.06 12.06 13.05 16.31 25.28
Sun River Village $12,519,392 10.50 12.20 12.20 13.23 16.69 26.03
Sunrunner $3,553,641 11.50 11.80 11.80 12.42 15.76 22.76
Tahoe Springs $10,262,594 11.00 13.47 13.47 14.87 20.25 32.56
Tamarac Village $15,369,697 10.00 12.09 12.09 13.23 16.27 26.01
Tar River Estates $8,971,180 13.50 13.71 13.71 14.46 21.65 30.93
Tates Creek Village $6,090,749 12.50 13.56 13.56 14.53 20.93 31.19
The Apartment $4,470,627 12.50 13.69 13.69 14.71 21.30 31.93
The Landings $3,434,631 12.00 13.90 13.90 14.77 22.16 32.16
The Lodge $10,071,033 10.00 11.71 11.71 12.70 15.24 23.89
The Palisades $6,702,567 12.50 13.32 13.32 14.20 20.28 29.90
The Sterling Apartment $18,176,748 11.00 11.68 11.68 12.38 15.34 22.62
The Sterling Commerce $1,579,769 12.00 12.75 12.75 14.06 18.48 29.34
Torrey Pines $5,895,710 10.50 12.45 12.45 13.58 17.36 27.41
Ventura Landing $3,543,210 11.00 12.62 12.62 13.67 17.96 27.78
Village $17,771,065 11.00 11.64 11.64 12.34 15.24 22.44
Village Apts $4,082,159 12.00 13.09 13.09 14.02 19.49 29.18
Village East $4,144,204 10.00 11.72 11.72 12.72 15.28 23.98
Village Gardens $4,799,854 11.00 12.22 12.22 13.12 16.86 25.58
Village Green $3,869,471 8.50 11.95 11.95 13.54 15.58 27.34
Village In The Woods $13,520,877 11.00 13.21 13.21 14.50 19.56 31.09
Vinings Peak $8,612,555 10.50 12.12 12.12 13.12 16.47 25.58
West Chase $2,485,808 12.00 12.59 12.59 13.34 18.10 26.46
Williamsburg I $7,907,097 11.50 12.44 12.44 13.27 17.56 26.19
Williamsburg Manor $7,447,736 12.50 13.04 13.04 13.81 19.47 28.34
Willowick Apts $3,475,139 12.00 13.16 13.16 14.12 19.68 29.56
Windsor Hills $7,103,250 11.50 12.64 12.64 13.54 18.11 27.27
Wood Lake $7,136,832 10.05 11.81 11.81 12.82 15.52 24.38
Woodcreek $16,244,509 10.50 11.97 11.97 12.92 16.06 24.76
Woodland Village I $7,676,455 12.00 12.36 12.36 13.03 17.44 25.22
Woods Of Inverness $4,636,745 11.00 13.17 13.17 14.44 19.45 30.86
Total Value $1,107,326,202
37
SUMMARY OF PORTFOLIO'S CURRENT VALUE AND SIMULATED PERFORMANCE STATISTICS
DECEMBER 31, 1996
PORTFOLIO CURRENT VALUE, LOWER PERCENTILE NARROW RANGE
Capital Return Components
- -------------------------
Reversionary Value
General Market Growth: $147,606,466
NOI Growth (or Reduction): 331,642,176
Proforma Entry Value: 833,134,062
Total Reversionary Value: 1,312,382,704
Less: Sales Commissions: 13,123,827
Net Reversionary Value: 1,299,258,877
Discounted Reversionary Value
General Market Growth: 39,732,277
NOI Growth (or Reduction): 96,000,472
Proforma Entry Value: 290,933,944
Total Discounted Reversionary Value: 426,666,693
Less: Sales Commissions: 4,572,413
Net Discounted Reversionary Value: $422,094,280
--------------------------------- -------------
Income Return Components
- ------------------------
Net Operating Income
Market NOI: $ 679,818,055
Leased NOI: 5,413,868
TOTAL PORTFOLIO CURRENT VALUE: $1,107,326,202
- ---------------------------- --------------
Unleveraged Annual Internal Rate of Return: 12.596%
Unleveraged Annual Average Rate of Return: 13.601%
Going In CAP Rate, Adjusted NOI 10.860%
38
SUMMARY OF PORTFOLIO'S SIMULATED PERFORMANCE STATISTICS
DECEMBER 31, 1996
LEVERAGED LOWER PERCENTILE NARROW RANGE PORTFOLIO PERFORMANCE
Capital Investment
- ------------------
Current Value: $1,107,326,202
Financing For Buyer 816,063,652
Initial Equity Investment: 291,262,550
- -------------------------- -----------
Income Returns
- --------------
Cash Flow
1997 $14,992,822
1998 16,708,797
1999 18,790,171
2000 20,457,579
2001 25,973,118
2002 28,335,418
2003 282,919,724
2004 28,670,573
2005 34,577,994
2006 37,134,956 508,561,152
-----------
Capital Returns
- ----------------
Net Reversionary Value: $1,299,258,877
Ending Loan Balance: 746,413,817
Reversionary Value After Debt: 552,845,059
-----------
Leveraged Annual Internal Rate of Return: 17.683%
Leveraged Annual Average Rate of Return: 26.442%
39
SCHEDULE OF THE STATED VALUES OF REAL ESTATE IN INSIGNIA'S PORTFOLIO
OF HOLDINGS
DECEMBER 31, 1996
PROPERTY NAME ID ZIP CODE MSA SQUARE FEET STATED VALUE
444 Deharo * 5765 94107 San Francisco 123,942 $9,692,000
Alpine 8638 35216 Birmingham 137,400 $4,400,000
Arbour East 5737 37076 Nashville 387,425 $11,637,767
Autumn Run 8677 60563 Chicago 245,708 $17,250,000
Baymeadows 442 32256 Jacksonville-FL 1,084,096 $28,400,000
Breckinridge Square 5722 40220 Louisville 332,280 $9,973,702
Briar Bay Racquet Club 5709 33176 Miami 152,750 $8,128,851
Brighton Crest Apts. 713 30062 Atlanta 293,706 $13,009,060
Carriage House Apts. 474 28054 Charlotte 123,450 $3,200,000
Cedar Brooke (Quail Crk) 5727 64055 Kansas City 148,008 $3,600,000
Cedar Rim 5763 98056 Seattle 109,200 $4,738,920
Celina Plaza 5753 79925 El Paso 248,133 $6,496,245
Cherry Creek Garden 8656 80111 Denver 263,560 $14,618,223
Chimney Hill 5715 30067 Atlanta 342,477 $11,587,396
Churchill Park 5723 40220 Louisville 350,954 $11,130,602
Citadel 5754 79925 El Paso 263,968 $6,790,215
Citadel Village 5700 80909 Colorado Sprgs 110,125 $5,062,036
City Heights 5764 98144 Seattle 94,203 $5,221,064
Colony At Kenilworth 8637 21204 Baltimore 342,376 $17,000,000
Colony House Apts. 402 37130 Nashville 204,196 $6,500,000
Colony of Springdale 5732 45246 Cincinnati 215,680 $6,960,400
Coopers Pointe 8676 29406 Charleston-SC 160,968 $5,876,509
Cooper's Pond 8657 33614 Tampa 304,310 $8,485,101
Copper Mill 8675 23294 Richmond 158,568 $9,300,000
Corporate Center * 5777 33634 Tampa 107,670 $2,850,000
Countrywood Apts. 450 27604 Raleigh 378,568 $13,600,000
Creekside 8658 80222 Denver 196,448 $10,440,353
Davie Minis * 5782 33328 Miami 64,240 $4,238,000
Essex Park Apts. 403 29210 Colombia-SC 279,384 $8,300,000
Fairway Apts 644 75075 Dallas 216,536 $8,396,505
Fairway View I 8636 70808 Baton Rouge 204,628 $8,100,000
Fairway View II 8641 70808 Baton Rouge 168,036 $7,400,000
Foothill Place 5758 84109 Salt Lake City 415,334 $20,694,706
Four Winds 8674 66204 Kansas City 312,054 $14,218,133
Foxfire Apartments 476 27704 Raleigh 318,480 $10,900,000
40
SCHEDULE OF THE STATED VALUES OF REAL ESTATE IN INSIGNIA'S PORTFOLIO
OF HOLDINGS
DECEMBER 31, 1996
PROPERTY NAME ID ZIP CODE MSA SQUARE FEET STATED VALUE
Foxfire Apts. 509 30360 Atlanta 280,700 $8,300,000
Greenspoint 8684 85032 Phoenix 278,064 $14,670,994
Hampton Greens 8689 75228 Dallas 216,492 $7,915,803
Heritage Pointe 304 30165 Atlanta 139,487 $3,000,000
Huntington Athletic Club 8647 27560 Raleigh 206,208 $12,148,784
Indian Creek Village 5719 66212 Kansas City 269,777 $10,169,905
Knolls 5701 80904 Colorado Sprgs 242,682 $10,059,782
Knollwood 5739 37221 Nashville 358,935 $12,145,898
Lake Forest 5731 68164 Omaha 300,300 $8,550,000
Lake Johnson Mews 453 27606 Raleigh 190,152 $8,700,000
Lake Villa 5726 48111 Detroit 116,300 $4,751,200
Lakes 5728 27609 Raleigh 497,715 $20,974,213
Lakeside 8623 60532 Chicago 480,184 $28,500,000
Lakeside Place 8750 77042 Houston 780,229 $24,948,629
Lamplighter Park 5762 98007 Seattle 140,892 $7,600,000
Lauderhill Minis * 5784 33351 Miami 61,127 $3,322,000
Lexington Apts. 646 34237 Sarasota 277,680 $8,600,000
Loft 5729 27609 Raleigh 205,615 $8,358,113
Magnolia Trace 5724 70816 Baton Rouge 242,236 $5,606,716
Mcmillian Place 8670 75238 Dallas 290,051 $11,086,109
Meadows 8629 32701 Orlando 153,995 $4,918,353
Millhopper Apts. 457 32607 Gainesville 156,800 $5,400,000
Misty Woods 8669 28205 Charlotte 162,623 $8,148,412
Nob Hill Villa 5740 37211 Nashville 389,030 $11,736,668
North River Village 507 30350 Atlanta 171,420 $4,700,000
Northlake * 5767 30084 Atlanta 77,621 $2,711,000
Northwoods Apartments 8642 32514 Pensacola 276,080 $9,232,671
Nottingham Square 475 50322 Des Moines 387,350 $14,000,000
Oak Run 8663 75240 Dallas 307,996 $13,638,818
Oakwood Village 8630 32792 Orlando 225,223 $5,888,073
Old Salem 454 22901 Charlottesville 379,147 $12,200,000
Overlook 5738 38127 Memphis 180,849 $2,642,003
Overlook Point 8664 84119 Salt Lake City 256,600 $11,394,234
Palm Lake 5714 33617 Tampa 153,700 $4,397,956
Park Capitol 5759 84103 Salt Lake City 102,493 $5,745,491
41
SCHEDULE OF THE STATED VALUES OF REAL ESTATE IN INSIGNIA'S PORTFOLIO
OF HOLDINGS
DECEMBER 31, 1996
PROPERTY NAME ID ZIP CODE MSA SQUARE FEET STATED VALUE
Parktown Townhouses 315 77536 Houston 350,853 $8,850,000
Patchen Place 8643 40517 Lexington 161,712 $5,250,000
Pennbrook 8627 19054 Philadelphia 660,175 $36,300,000
Phoenix Bus Center 5783 30349 Atlanta 199,290 $1,832,000
Phoenix Bus Center * 5783x 30349 Atlanta 0 $0
Pines of Roanoke 8644 24018 Roanoke 199,290 $6,832,716
Pinetree 8624 28210 Charlotte 171,140 $5,886,494
Place Du Plantier 8635 70808 Baton Rouge 205,264 $7,800,000
Plantation Creek 8673 30328 Atlanta 550,360 $21,700,215
Plantation Crossing 8681 30067 Atlanta 190,030 $7,147,522
Plantation Gardens 5712 33324 Fort Lauderdale 324,650 $14,934,971
Point West 5736 29414 Charleston-SC 101,130 $2,450,140
Post Ridge 5741 37221 Nashville 223,340 $6,700,000
Preston Creek 8753 75240 Dallas 216,660 $8,200,000
Professional Plaza * 5778 84107 Salt Lake City 75,732 $3,700,000
Promontory Point 8688 78754 Austin 183,600 $9,300,000
Quail Hollow Apts. 303 29169 Colombia-SC 259,858 $5,700,000
Quail Run Apts. 348 29206 Colombia-SC 410,848 $11,500,000
Raintree Apts. 314 29621 Atlanta 170,032 $4,500,000
Regency Oaks 8437 32730 Orlando 339,191 $8,203,527
River Reach Apts. 477 32207 Jacksonville-FL 373,750 $12,700,000
Rivers Edge 5761 98002 Seattle 111,660 $3,552,904
Rocky Creek Apts. 473 30907 Augusta 131,400 $3,170,000
Rocky Ridge 8634 35216 Birmingham 107,790 $3,400,000
Sandpiper Apartments 5681 33716 Tampa 261,204 $7,090,745
Sands Point 8685 85021 Phoenix 339,852 $14,891,746
Shirewood 5725 71104 Shreveport 205,200 $3,704,936
Signal Pointe Apts. 316 32792 Orlando 337,760 $10,050,000
Silverado 5756 79925 El Paso 175,670 $4,440,294
Ski Lodge 8633 36117 Montgomery 413,380 $12,800,000
Society Park 5713 33617 Tampa 33,617 $5,009,517
Society Park East 5708 32937 Melbourne 171,444 $4,468,530
South City Bus Center * 5166 91911 San Diego 168,598 $5,796,000
South Port Apts. 5670 74133 Tulsa 193,480 $6,107,693
Southpoint 8645 27707 Raleigh 162,800 $8,400,000
42
SCHEDULE OF THE STATED VALUES OF REAL ESTATE IN INSIGNIA'S PORTFOLIO
OF HOLDINGS
DECEMBER 31, 1996
PROPERTY NAME ID ZIP CODE MSA SQUARE FEET STATED VALUE
St Charleston Village 8742 89102 Las Vegas 269,528 $10,668,458
Stone Mountain West 306 30083 Atlanta 205,222 $5,600,000
Stoney Creek 8687 75238 Dallas 279,296 $8,831,833
Stratford Place 5746 78741 Austin 183,840 $5,474,199
Summerhill 8754 75243 Dallas 188,096 $4,526,215
Summerwalk 8625 32792 Orlando 251,488 $6,596,193
Sun River Village 8743 85283 Phoenix 286,168 $12,246,594
Sunrunner 8667 33716 Tampa 144,969 $5,400,000
Tahoe Springs 5710 33166 Miami 316,910 $11,900,000
Tamarac Village 5703 80231 Denver 411,529 $19,000,000
Tar River Estates 647 27858 Greenville-NC 402,330 $10,000,000
Tates Creek Village 5720 40517 Lexington 195,460 $6,181,648
The Apartment 5730 68134 Omaha 192,960 $4,853,117
The Landings 8653 33614 Tampa 121,335 $3,254,358
The Lodge 8659 80231 Denver 233,400 $11,678,029
The Palisades 8631 36116 Montgomery 378,065 $6,911,218
The Sterling Apart Homes 5328 19103 Philadelphia 519,101 $18,210,458
The Sterling Com Center * 5238 19103 Philadelphia 109,785 $0
Torrey Pines 8744 89102 Las Vegas 172,160 $6,752,378
Ventura Landing 5711 32822 Orlando 166,952 $3,900,000
Village 8651 08043 Philadelphia 384,464 $20,599,975
Village Apts. 6804 33511 Tampa 117,950 $4,541,581
Village East 5702 80915 Colorado Sprgs 103,095 $4,152,933
Village Gardens 478 80525 Fort Collins 107,874 $4,900,000
Village Green 5705 32701 Orlando 140,000 $4,000,000
Village in the Woods 8660 77429 Houston 523,108 $15,171,844
Vinings Peak 8680 30339 Atlanta 274,550 $12,794,732
West Chase 5721 40504 Lexington 102,750 $2,513,704
Williamsburg I 8648 46222 Indianapolis 288,800 $13,500,000
Williamsburg II (incld in I) 8649 46222 Indianapolis 144,400 $0
Williamsburg Manor 5680 27511 Raleigh 212,800 $8,303,951
Willowick Apts 406 29615 Greenville-SC 127,980 $4,600,000
Windsor Hills 649 24060 Montgomery 270,855 $7,224,625
Wood Lake 8682 30339 Atlanta 212,118 $11,565,594
Woodcreek 8672 85204 Phoenix 353,760 $17,409,726
Woodland Village I 455 29210 Colombia-SC 385,492 $9,900,000
Woods of Inverness 8654 77073 Houston 266,468 $7,028,825
Insignia Stated Value 1,266,919,751
* = Commercial
43