OVERVIEW:
HC Realty has performed an comprehensive financial analysis of the proposed Apartment Complex and we have concluded that it will be a viable business opportunity. The financial analysis was conducted based on the HC Realty's most likely ProForma. By using the most likely ProForma, our team was able to determine a realistic projection
FINANCING:
In order to acquire funding for Gateway Villas, we are going to obtain a loan from The Bank of the Ozarks. The following numbers are representative of similar market averages.
Amortization Period: 25 years, 300 months
Interest Rate: 4.5%
Loan-to-Value: 65%
Discount Points: 1% of loan amount
Holding Period: 10 years
Acquisition Costs: $28,007,482.64
Selling Costs: 4% to our Investment Sales Broker at Holiday Fenoglio Fowler
"Going In" Cap Rate: 6.9%
Calculated using the Extraction Method utilizing Comporable Sales
"Residual" Cap Rate: 7.15%
Unknown market conditions may exist in future thus we have added 25 basis points to our Going In Cap Rate.
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