Flats at Sky Village › reiwise_production › market... · Year Built: 1969 FINANCIAL INFORMATION...

Flats at Sky Village

10304 West 58th Place | Arvada, CO 80004

Mike Phillips, CCIM(303) [email protected]

Matt Ritter(303) [email protected]

Phone: (303) 962-9563 ● Fax: (720) 881-3286 ● 1777 South Harrison Street, Suite 420 ● Denver, CO 80210 ● www.pinnaclerea.com

Excellent location in Arvada (Denver)●

Fully renovated in 2010●

100% Occupied●

Great loan that must be assumed, 4.5% interest, 35 year amortization, balance$5,610,000

●

Good unit mix●

Table of Contents

Real Estate Investment Details ..................................................................................... 3

Biography......................................................................................................................... 4

Property Description .................................................................................................... 5

Property Photos ............................................................................................................. 6

Maps and Aerials ........................................................................................................... 7

Executive Summary ...................................................................................................... 8

Resale Report .................................................................................................................. 9

Internal Rate of Return Analysis .................................................................................. 10

Cash Flow Analysis ...................................................................................................... 11

Cash In Cash Out ........................................................................................................... 12

Annual Property Operating Data .................................................................................. 14

Property Resale Analysis ........................................................................................... 15

Financial Indicators ...................................................................................................... 16

Loan Analysis ................................................................................................................. 17

Investment Return Analysis .......................................................................................... 18

Cumulative Analysis .................................................................................................... 19

Property Equity Analysis ............................................................................................ 20

Equity vs. Debt ............................................................................................................... 21

Cumulative Wealth Analysis .......................................................................................... 22

Operating Income Analysis ........................................................................................... 23

Gross Income Vs. Operating Expenses ...................................................................... 24

Pinnacle REA - Underwriting ........................................................................ Attachment

Seller's Actual Numbers ............................................................................ Attachment

Sales & Rent Comparables ........................................................................... Attachment

Listing Broker/Owner Brochure .................................................................. Attachment

Denver Average Expenses 2010 .................................................................. Attachment

Real Estate Investment Details

ANALYSIS

Analysis Date: October 2010

PROPERTY

Property: Flats at Sky Village

Property Address: 10304 West 58th PlaceArvada, CO 80004

Year Built: 1969

FINANCIAL INFORMATION

Down Payment: $1,890,000

Closing Costs: $140,250

LT Capital Gain: 15.00%

Federal Tax Rate: 35.0%

Discount Rate: 8.00%

PURCHASE INFORMATION

Property Type: Multi-Family

Purchase Price: $7,500,000

Units: 105

Total Rentable Sq. Ft.: 74,803

Resale Valuation 8.0% (capitalization of noi)

Resale Expenses: 7.0%

LOANS

Debt Term Rate Payment LO Costs

Fixed $5,610,000 35 yrs 4.5% $26,550

INCOME & EXPENSES

Gross Operating Income: $920,815

Monthly GOI: $76,735

Total Annual Expenses: ($402,925)

Monthly Expenses: ($33,577)

CONTACT INFORMATION

Mike Phillips, CCIM

(303) 962-9563

[email protected]

Matt Ritter

(303) 962-9550

[email protected]

The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projectionsand analysis.

page 3 of 24

BiographyFlats at Sky Village

10304 West 58th PlaceArvada, CO 80004

Mike Phillips, CCIM(303) 962-9563

PROFESSIONAL BIO

Matt Ritter, principal of Pinnacle Real EstateAdvisors, LLC founded the company withpartner, Jeff Johnson. Prior to the creation ofPinnacle, Matt was a top producing SeniorBroker Associate with a boutique brokerage firmin Denver. Matt served on DMCAR’s (DenverMetropolitan Commercial Association ofRealtors) board of directors and executivecommittee and has won several accoladesincluding top producer, and was selected byRealtor Magazine to be recognized nationally as“30 Under 30” in 2005. He received this awarddue to the Johnson Ritter Team’s continued

success, coupled with his age and involvement in commercial real estate. Holding a degree infinance he relocated from the Chicago area.

Mike Phillips, CCIM, joined Pinnacle Real Estate Advisors, LLC, in April 2010, specializing in theBrokerage of larger Multifamily Investment Properties. Consistently a Top Producer for over 21years, Mike's experience in multifamily real estate is far-reaching. Mike has owned and/or acted asGeneral Partner of over 700 multifamily units and, in addition, has been directly responsible for theoperations and management of over 11,000 units. Mike founded and acted as CEO of severalDallas-based real estate firms which focus on multifamily brokerage, property management andinvestments. Mike has personally brokered over 160 multifamily transactions with deal size since2001 averaging over 100 units. Due to his tremendous experience, knowledge and understandingin brokerage as well as property management, Mike has become an authority in both sides of thedeal, representing both Sellers and Buyers. A pilot since an early age, Mike holds a CommercialPilot's Certificate (multi-engine, instrument, and a past Flight Instructor) with over 2,000 logged flighthours. Mike is a Certified Commercial Investment Member (CCIM) and a Certified PropertyManager (CPM) candidate. Mike is a licensed broker in Colorado, Texas and Montana.

page 4 of 24

Property DescriptionFlats at Sky Village



Pinnacle Real Estate Advisors, LLCProperty Description and Recommendations

The Flats at Sky Bridge is a 105 unit apartmentcomplex located in a great area of Arvada justoutside Denver, Colorado. It was fully renovatedin 2010 and has a good unit mix of 1/1's and2/1's. It should have no deferred maintenance.

The Seller is asking $8,000,000 but ourunderwriting results in a current top side value of$7,500,000. At this price, it should be a 7.26% orgreater, depending on current financials whichwe cannot get until an offer is made.

One of the great aspects of this deal is thecurrent (new) loan which has a balance of $5,610,000 at 4.5% interest rate, FULLY amortized over35 years. This loan must be assumed.

Please review the following package including the Pinnacle's underwriting model to see our opinionof the deal. Let us know if you have further interest.

page 5 of 24

Property PhotosFlats at Sky Village



Flats at Sky VillageProperty Photos

page 6 of 24

Maps and AerialsFlats at Sky Village



Maps of PropertyFlats at Sky Village

page 7 of 24

Executive SummaryFlats at Sky Village



ACQUISITION COSTS

Purchase Price, Points and Closing Costs $7,640,250

Investment - Cash $2,030,250

First Loan $5,610,000

INVESTMENT INFORMATION

Purchase Price $7,500,000

Price per Unit $71,429

Price per Sq. Ft. $100.26

Income per Unit $9,202

Expenses per Unit ($3,837)

INCOME, EXPENSES & CASH FLOW

Gross Scheduled Income $966,201

Total Vacancy and Credits ($45,386)

Operating Expenses ($402,925)

Net Operating Income $517,890

Debt Service ($318,596)

Cash Flow Before Taxes $199,294

Total Interest (Debt Service) ($251,069)

Depreciation and Amortization ($222,589)

Taxable Income (Loss) $44,233

Tax Savings (Costs) ($15,482)

Cash Flow After Taxes $183,812

FINANCIAL INDICATORS

Cash on Cash Return Before Taxes 9.82%

Optimal Internal Rate of Return (yr 5) 11.34%

Debt Coverage Ratio 1.63

Capitalization Rate 6.91%

Gross Rent Multiplier 7.76

Gross Income / Square Feet $12.92

Gross Expenses / Square Feet ($5.39)

Operating Expense Ratio 43.76%

page 8 of 24

Resale ReportFlats at Sky Village



NET PROCEEDS FROM SALE

Adjusted Basis

Basis At Acquisition $7,640,250

-Depreciation $1,142,254

Adjusted Basis at Sale $6,497,996

Capital Gain

Sale Price $8,066,725

-Sale Expenses ($564,671)

-Adjusted Basis at Sale $6,497,996

Gain or (Loss) $1,004,058

-Depreciation (limited to gain) $1,004,058

Capital Gain from Appreciation

Sales Proceeds After Tax

Sale Price $8,066,725

-Sale Expenses $564,671

-Mortgage Balance $5,239,880

+Balance of Replacement Reserves $131,250

Sale Proceeds Before Tax $2,393,424

-Tax On Depreciation $251,015

-Tax On Capital Gain

Sale Proceeds After Tax $2,142,409

page 9 of 24

Internal Rate of Return AnalysisFlats at Sky Village



BEFORE TAX IRR

Time Future Cash Flows

Initial Investment ($2,030,250)

End of Year 1 $199,294




End of Year 5* $2,692,994

IRR = 14.59% * ($299,570 + $2,393,424)

AFTER TAX IRR

Time Future Cash Flows

Initial Investment ($2,030,250)





End of Year 5* $2,386,812

IRR = 11.34% * ($244,402 + $2,142,409)

page 10 of 24

Cash Flow AnalysisFlats at Sky Village



Description Year 1 Year 2 Year 3 Year 4 Year 5

GROSS SCHEDULED INCOME $966,201 $995,187 $1,025,043 $1,055,794 $1,087,468

Turnover Vacancy ($45,386) ($46,747) ($48,150) ($49,594) ($51,082)

General Vacancy $0 $0 $0 $0 $0

Total Operating Expenses ($402,925) ($406,692) ($410,496) ($414,339) ($418,220)

NET OPERATING INCOME $517,890 $541,748 $566,397 $591,861 $618,166

Loan Payment ($318,596) ($318,596) ($318,596) ($318,596) ($318,596)

NET CASH FLOW (b/t) $199,294 $223,151 $247,800 $273,265 $299,570

Cash On Cash Return b/t 9.82% 10.99% 12.21% 13.46% 14.76%


Depreciation ($222,589) ($232,300) ($232,300) ($232,300) ($222,767)

Loan Interest ($251,069) ($247,966) ($244,722) ($241,328) ($237,778)

TAXABLE INCOME (LOSS) $44,233 $61,482 $89,375 $118,234 $157,621

Income Taxes ($15,482) ($21,519) ($31,281) ($41,382) ($55,167)

CASH FLOW (a/t) $183,812 $201,633 $216,519 $231,883 $244,402

Cash On Cash Return a/t 9.05% 9.93% 10.66% 11.42% 12.04%

Footnotes: b/t = before taxes;a/t = after taxes

page 11 of 24

Cash In Cash OutFlats at Sky Village




Rental Income $907,716 $934,947 $962,996 $991,886 $1,021,642

Miscellaneous Income $58,485 $60,240 $62,047 $63,908 $65,825




GROSS OPERATING INCOME $920,815 $948,440 $976,893 $1,006,200 $1,036,386

Expenses

Replacement Reserves ($26,250) ($26,250) ($26,250) ($26,250) ($26,250)

Property Taxes ($40,342) ($40,745) ($41,153) ($41,564) ($41,980)

Utilities ($78,302) ($79,085) ($79,876) ($80,675) ($81,481)

Insurance ($21,000) ($21,210) ($21,422) ($21,636) ($21,853)

On-Site Payroll ($100,839) ($101,847) ($102,866) ($103,895) ($104,933)

Maint./MR Supplies ($41,486) ($41,901) ($42,320) ($42,743) ($43,170)

Admin / Misc. ($28,665) ($28,952) ($29,241) ($29,534) ($29,829)

Contract Services ($19,215) ($19,407) ($19,601) ($19,797) ($19,995)

Management Fee ($46,826) ($47,294) ($47,767) ($48,245) ($48,727)

TOTAL OPERATING EXPENSES ($402,925) ($406,692) ($410,496) ($414,339) ($418,220)


Footnotes: Cash Flow IRR based upon net cash flow and principle payments

page 12 of 24

Cash In Cash OutFlats at Sky Village




Debt Service

Loan Interest ($251,069) ($247,966) ($244,722) ($241,328) ($237,778)

Principal Payments ($67,528) ($70,630) ($73,875) ($77,269) ($80,818)

NET CASH FLOW (b/t) $199,294 $223,151 $247,800 $273,265 $299,570

Cash Flow IRR N/A N/A N/A -16.73% N/A

Projected Property Value $6,771,849 $7,079,958 $7,398,263 $7,727,076 $8,066,725

Resale Expenses ($474,029) ($495,597) ($517,878) ($540,895) ($564,671)

Proceeds b/f Debt Payoff $6,297,819 $6,584,361 $6,880,384 $7,186,181 $7,502,054

Loan Principal Balance ($5,542,472) ($5,471,842) ($5,397,967) ($5,320,698) ($5,239,880)

Replacement Reserves $26,250 $52,500 $78,750 $105,000 $131,250

Net Proceeds From Sale $781,597 $1,165,019 $1,561,167 $1,970,482 $2,393,424

Net Resale IRR N/A -12.26% 3.54% 10.84% 14.59%

Footnotes: Cash Flow IRR based upon net cash flow and principle payments

page 13 of 24

Annual Property Operating DataFlats at Sky Village




Rental Income $907,716 $934,947 $962,996 $991,886 $1,021,642

Miscellaneous Income $58,485 $60,240 $62,047 $63,908 $65,825




GROSS OPERATING INCOME $920,815 $948,440 $976,893 $1,006,200 $1,036,386

Expenses

Replacement Reserves ($26,250) ($26,250) ($26,250) ($26,250) ($26,250)

Property Taxes ($40,342) ($40,745) ($41,153) ($41,564) ($41,980)

Utilities ($78,302) ($79,085) ($79,876) ($80,675) ($81,481)

Insurance ($21,000) ($21,210) ($21,422) ($21,636) ($21,853)

On-Site Payroll ($100,839) ($101,847) ($102,866) ($103,895) ($104,933)

Maint./MR Supplies ($41,486) ($41,901) ($42,320) ($42,743) ($43,170)

Admin / Misc. ($28,665) ($28,952) ($29,241) ($29,534) ($29,829)

Contract Services ($19,215) ($19,407) ($19,601) ($19,797) ($19,995)

Management Fee ($46,826) ($47,294) ($47,767) ($48,245) ($48,727)

TOTAL OPERATING EXPENSES ($402,925) ($406,692) ($410,496) ($414,339) ($418,220)


page 14 of 24

Property Resale AnalysisFlats at Sky Village




Projected Property Value $6,771,849 $7,079,958 $7,398,263 $7,727,076 $8,066,725

Resale Expenses ($474,029) ($495,597) ($517,878) ($540,895) ($564,671)

Proceeds b/f Debt Payoff $6,297,819 $6,584,361 $6,880,384 $7,186,181 $7,502,054

Basis at Acquisition $7,640,250 $7,640,250 $7,640,250 $7,640,250 $7,640,250

Depreciation ($222,589) ($454,888) ($687,188) ($919,487) ($1,142,254)

Adjusted Tax Basis $7,417,661 $7,185,362 $6,953,062 $6,720,763 $6,497,996

Resale Tax Gain (Loss) ($1,119,842) ($601,000) ($72,678) $465,418 $1,004,058

Resale Tax Benefit (Cost) $0 $0 $0 ($116,355) ($251,015)

Loan Principal Balance ($5,542,472) ($5,471,842) ($5,397,967) ($5,320,698) ($5,239,880)

Replacement Reserves $26,250 $52,500 $78,750 $105,000 $131,250

Net Resale Proceeds $781,597 $1,165,019 $1,561,167 $1,854,128 $2,142,409

Footnotes: b/f = before

page 15 of 24

Financial IndicatorsFlats at Sky Village




Gross Rent Multiplier 7.01 7.11 7.22 7.32 7.42

Capitalization Rate 6.91% 7.22% 7.55% 7.89% 8.24%

Cash On Cash Return b/t 9.82% 10.99% 12.21% 13.46% 14.76%

Cash On Cash Return a/t 9.05% 9.93% 10.66% 11.42% 12.04%

Debt Coverage Ratio 1.63 1.70 1.78 1.86 1.94

Gross Income per Sq. Ft. $12.92 $13.30 $13.70 $14.11 $14.54

Expenses per Sq. Ft. ($5.39) ($5.44) ($5.49) ($5.54) ($5.59)

Net Income Multiplier 13.08 13.07 13.06 13.06 13.05

Operating Expense Ratio 43.76% 42.88% 42.02% 41.18% 40.35%

Loan To Value Ratio 81.85% 77.29% 72.96% 68.86% 64.96%

Footnotes: b/t = before taxes; a/t = after taxes

page 16 of 24

Loan AnalysisFlats at Sky Village




LOAN 1

Debt Service Analysis

Principal Payments $67,528 $70,630 $73,875 $77,269 $80,818

Interest Payments $251,069 $247,966 $244,722 $241,328 $237,778

Total Debt Service $318,596 $318,596 $318,596 $318,596 $318,596

Principal Balance Analysis

Beginning Principal Balance $5,610,000 $5,542,472 $5,471,842 $5,397,967 $5,320,698

Principal Reductions $67,528 $70,630 $73,875 $77,269 $80,818

Ending Principal Balance $5,542,472 $5,471,842 $5,397,967 $5,320,698 $5,239,880

page 17 of 24

Investment Return AnalysisFlats at Sky Village




Cash Flow - To Date $183,812 $385,445 $601,964 $833,847 $1,078,249

Net Resale Proceeds $781,597 $1,165,019 $1,561,167 $1,854,128 $2,142,409

Invested Capital ($2,030,250) ($2,030,250) ($2,030,250) ($2,030,250) ($2,030,250)

Net Return on Investment ($1,064,841) ($479,786) $132,881 $657,725 $1,190,408

Internal Rate of Return N/A -13.30% 2.35% 8.27% 11.34%

Modified IRR -52.45% -12.20% 2.87% 8.24% 10.82%

NPV (cash flow + reversion) ($1,122,018) ($655,586) ($218,386) $106,006 $405,137

PV (NOI + reversion) $6,310,842 $6,589,018 $6,855,484 $7,110,706 $7,355,134

Footnotes: a/t = after taxes; Modified IRR = Modified Internal Rate of Return; PV = Present Value; NPV = Net Present Value; NOI = Net Operating IncomeReversion = Amount received from the resale; Net Return on Investment = Cash Flow (a/t To Date) + Net Proceeds from Resale - Invested Capital.

page 18 of 24

Cumulative AnalysisFlats at Sky Village




Equity (appreciation) ($728,151) ($420,042) ($101,737) $227,076 $566,725

Equity (loan reduction) $67,528 $138,158 $212,033 $289,302 $370,120

CASH FLOW (a/t) $183,812 $385,445 $601,964 $833,847 $1,078,249

Totals - To Date ($476,811) $103,561 $712,259 $1,350,224 $2,015,093

Invested Capital ($2,030,250) ($2,030,250) ($2,030,250) ($2,030,250) ($2,030,250)

ROIC - To Date -23.49% 5.10% 35.08% 66.51% 99.25%

Footnotes: a/t = after taxes; ROIC = Return On Invested Capital

page 19 of 24

Property Equity AnalysisFlats at Sky Village



Year 1 2 3 4 5

$290,000

$580,000

$870,000

$1,160,000

$1,450,000

$1,740,000

$2,030,000

$2,320,000

$2,610,000

$2,900,000

Legend

Initial Equity Equity (loan reduction) Equity (appreciation)

page 20 of 24

Equity vs. DebtFlats at Sky Village



Year 1 2 3 4 5

$560,000

$1,120,000

$1,680,000

$2,240,000

$2,800,000

$3,360,000

$3,920,000

$4,480,000

$5,040,000

$5,600,000

Legend

Equity Loan Principal Balance

page 21 of 24

Cumulative Wealth AnalysisFlats at Sky Village



Year 1 2 3 4 5

$210,000

$420,000

$630,000

$840,000

$1,050,000

$1,260,000

$1,470,000

$1,680,000

$1,890,000

$2,100,000

Legend

Equity (loan reduction) Equity (appreciation) CASH FLOW (a/t)

page 22 of 24

Operating Income AnalysisFlats at Sky Village



Year 1 2 3 4 5

$110,000

$220,000

$330,000

$440,000

$550,000

$660,000

$770,000

$880,000

$990,000

$1,100,000

Legend

GROSS OPERATING INCOME NET OPERATING INCOME NET CASH FLOW (b/t)

page 23 of 24

Gross Income Vs. Operating ExpensesFlats at Sky Village



Year 1 2 3 4 5

$110,000

$220,000

$330,000

$440,000

$550,000

$660,000

$770,000

$880,000

$990,000

$1,100,000

Legend

GROSS SCHEDULED INCOME Total Operating Expenses

page 24 of 24

Pinnacle REA - UnderwritingFlats at Sky Village10304 West 58th PlaceArvada, CO 80004

Flats at Sky Village10364 W. 58th Place, Arvada, CO 80004

Year 1 - Based on Current Numbers Second Year - Stabilized

Apart Average Market

Quant Size current rents Rent Rents Rent

610 30 1/1 $638 $19,140 $670 $20,100

741 46 2/1 $741 $34,086 $780 $35,880 ASKING PRICE: 8,000,000$

773 29 Lg 2/1 $773 $22,417 $801 $23,229 MBP Opinion of Value 7,500,000$ CAP Rate

Price per Unit: 71,429$

Number of Units: 105. Units

Down Payment $1,890,000

Closing/Rehab Costs $140,250 Property Grade

Total Cash Needed $2,030,250

1st Year ROI 11.11%

Stablized ROI 12.46%

Monthly Rental Income $75,643 $79,209

Total Rentable Square Feet: 85,224 Performance Ratio Investor Minimums This Property

Average Unit SF: 812 GOING IN CAP RATE 6.25% 7.26%

Income Year 1 Stabilized STABILIZED CAP RATE 7.50% 7.62%

Rent (Potential Rental Income) $907,716 $950,508 Gross Rent Multiplier 8.50 8.14

Utility Reimbursement $44,436 Escalation Y2 $44,436 First year Cash on Cash 10.00% 11.11%

Miscellaneous $10,269 3.00% $10,372 Stabilized Cash on Cash 11.00% 12.46%

Laundry $3,780 $3,780 AFTER TAX IRR 11.00% 12.33%minus: Collections, Loss to Lease, Etc. 1% ($9,077) DSCR 1.20 1.71

minus: Vacancy Factor 4% ($36,309) 6% ($57,030) Break-Even Ratio 90.0% 75.5%

Total Effective Gross Income (EGI): $920,815 $952,065 YESRe-Sale CAP Rate 8.00% Hold in # of Years

Expenses % of EGI $/Unit Year 1 StabilizedEstimated Sale Price based on

Final HOLD year NOI $ 8,446,000 5 Years

4.38% 384$ $40,342 1.00% $40,745 Loan Information

-$ Down Payment: 25% $1,890,000

8.50% 746$ $78,302 $79,085 Loan Amount: 75% $5,610,000

Insurance 2.28% 200$ $21,000 $21,210 Loan Interest Rate: 4.50%

On-site Payroll 10.95% 960$ $100,839 $101,848 Amortization Period 35

Maint./MR Supplies 4.51% 395$ $41,486 $41,900 Property Information

Admin. / Misc. 3.11% 273$ $28,665 $28,952 Land Size in Acres: 3.32 Acres

Contract Services 2.09% 183$ $19,215 $19,407 Land Size in SF: 144,619 SF

Management Fee 5.09% 446$ $46,826 $47,294 Units/Acre: 31.63 Units per Acre

40.91% Total Expenses: $376,675 IREM average $380,441 Leasable Area: 85,224 Square Feet

Expenses per Unit $3,587 $4,228 $3,623 Roofs:

Expenses per Square Foot $4.42 $5.18 $4.46 Type HVAC:

$544,141 $571,624 Metering: Electric: Separate

Cap Rate @ 7,500,000$ 7.26% Gas: RUBBS

8.00% $7,145,297 Water: RUBBS

EGI Effective Gross Income $920,815 $952,065 Property Grade B

Expenses Operating Expenses $376,675 $380,441 Area Grade B

NOI Net Operating Income $544,141 $571,624 Actual Current Occupancy 96%

Debt Service Proposed $318,596 $318,596 Neighborhood direction Stable

Cash Flow Net Income before Reserves $225,544 $253,027 Age of Property 1969

250$ ($26,250) ($26,250)

Cash Flow Net Income after Reserves $199,294 $226,777

Return on Investment 11.11% 12.46%

See attachments for Budget, Cash Flows, Resale and IRR calculations Buyer's Offer Analysis

Sale Price 7,500,000$ Price CAP RATE Note

Down Payment at 25% down $1,890,000 8,000,000$ 6.80% Asking Price

Financing at 4.50% interest rate - 1st Note $5,610,000 7,500,000$ 7.26% Suggested MAX

Subtotal $7,500,000 7,380,000$ 7.37%

Renovation + Closing Costs $140,250 7,260,000$ 7.50%

Total Cost $7,640,250 7,140,000$ 7.62%

7,020,000$ 7.75% Suggested Start

Cash Requirement

Down Payment $1,890,000

Est. Closing Costs $140,250

Renovation

Total Cash $2,030,250 Insert Picture(s) Here

© Intellectual Property of MBP Capital, Inc.

Central HVAC

Unit S.F.

Investment Analysis Summary

Does This Property Pass the Minimum Criteria?

Property Taxes

Franchise Tax

Utilities

Please see attached Budget, Actual Rent Roll and Financials (if available), Rent Comparables, and Sales Comparables. The above and

attached Budget numbers were derived from property actuals, industry and sub-market norms, and over 20 years of multi-family property

management experience. Please read the below Disclaimer.

Property Taxes are

calculated based on worst

case scenario (Purchase

price)

Funded Capital Reserves per Unit: Notes: This Analysis is based on the MBP Opinion of Value. The below Offer

Analysis shows the Asking Price, our suggested TOP PRICE, and a step down to

where we believe the initial offer on this Property should begin.

105. Units

Increase /

Decrease

Net Operating Income

Misc. Notes about Property

Re-sale Value if sold at this CAP Rate & this NOI

Flat

7.26%

BDoes This Property Pass the Minimum Criteria?

New Loan

Matt Ritter / Mike Phillips, CCIM

Pinnacle Real Estate Advisors

1777 S. Harrison Street, Suite 420

Denver, CO 80210

(303) 962-9550; (303) 962-9563

DISCLAIMER: This analysis is not all inclusive nor do we guarantee any portion. It is to be used as a projection analysis only and is not to be considered fact. A thorough investigation is recommended during the inspection and feasability period. This package has been prepared for informational purposes only to assist a potential purchaser in determining whether it wishes to proceed with an in depth investigation of the property. The information contained within this investment analysis has been derived from information deemed reliable or may even be estimated information. However, it is subject to errors, omissions, price change, and/or withdrawal, and no warranty is made as to the accuracy. Further, no warranties or representations shall be made by MBP Capital, Inc. and/or its agents, representatives, or affiliates regarding oral statements which have been made in the discussion of the above property. This presentation was sent to the recipient under the assumption that he is a buying principal unless otherwise agreed to in writing. Any potential purchaser of this subject property is hereby advised to

Asking Price

$6,000,000

$6,500,000

$7,000,000

$7,500,000

$8,000,000

$8,500,000

6.80% 7.26% 7.37% 7.50% 7.62% 7.75%

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CAP Rates at Different Offer Prices

Offer Price Analysis

MAX Offer Price

Name of Property

Number of Units

Assumptions Loan Info Management & Taxes

% Turn-over/Month 3% Down Payment: 25% 7,500,000$

Turns per month 3.15 Loan Interest Rate: 4.50% Estimated Tax for 2010 40,342$

# pools: 0 Amortization Period 35 Management Fee 5% Monthly Tax Escrow 3,361.83$

REVENUE Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 12 month TOTAL $/SF $/unit

Forcasted Rental Income 71,860.85 72,096.81 72,332.78 72,568.74 72,804.71 73,040.67 73,276.64 73,512.60 73,748.57 73,984.53 74,220.50 74,456.46 877,903.86 $10.30 8,361$

Application Fee 330.75 330.75 330.75 330.75 330.75 330.75 330.75 330.75 330.75 330.75 330.75 330.75 3,969.00 $0.05 38$

Late Fee 262.50 262.50 262.50 262.50 262.50 262.50 262.50 262.50 262.50 262.50 262.50 262.50 3,150.00 $0.04 30$

Vending Income 52.50 52.50 52.50 52.50 52.50 52.50 52.50 52.50 52.50 52.50 52.50 52.50 630.00 $0.01 6$

Payphone Commission 10.50 10.50 10.50 10.50 10.50 10.50 10.50 10.50 10.50 10.50 10.50 10.50 126.00 $0.00 1$

Laundry Commission 315.00 315.00 315.00 315.00 315.00 315.00 315.00 315.00 315.00 315.00 315.00 315.00 3,780.00 $0.04 36$

Misc. Income 210.00 210.00 210.00 210.00 210.00 210.00 210.00 210.00 210.00 210.00 210.00 210.00 2,520.00 $0.03 24$

Total Revenue 73,042.10 73,278.06 73,514.03 73,749.99 73,985.96 74,221.92 74,457.89 74,693.85 74,929.82 75,165.78 75,401.75 75,637.71 892,078.86 $10.47 8,496$

REIMBURSEMENTS Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 12 month TOTAL $/SF $/unit

Utility Reimbursement 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 44,436.00 $0.52 423$

Total Reimbursements 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 44,436.00 $0.52 423$

TOTAL INCOME 76,745.10 76,981.06 77,217.03 77,452.99 77,688.96 77,924.92 78,160.89 78,396.85 78,632.82 78,868.78 79,104.75 79,340.71 936,514.86 $10.99 8,919$

EXPENSES Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 12 month TOTAL $/SF $/unit

Management Fee 3,837.26 3,849.05 3,860.85 3,872.65 3,884.45 3,896.25 3,908.04 3,919.84 3,931.64 3,943.44 3,955.24 3,967.04 46,825.74 $0.55 446$

Total Management Fees 3,837.26 3,849.05 3,860.85 3,872.65 3,884.45 3,896.25 3,908.04 3,919.84 3,931.64 3,943.44 3,955.24 3,967.04 46,825.74 $0.55 446$

Payroll Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 12 month TOTAL $/SF $/unit

Manager & Management Staff 3,150.00 3,150.00 3,150.00 3,150.00 3,150.00 3,150.00 3,150.00 3,150.00 3,150.00 3,150.00 3,150.00 3,150.00 37,800.00 $0.44 360$

Maintenance & Make-ready Staff 4,094.21 4,094.21 4,094.21 4,094.21 4,094.21 4,094.21 4,094.21 4,094.21 4,094.21 4,094.21 4,094.21 4,094.21 49,130.55 $0.58 468$

Contract Labor - Office 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $0.00 -$

Contract Labor - Maintenance 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $0.00 -$

Contract Labor - Make-Ready 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $0.00 -$

Payroll Expense 1,159.07 1,159.07 1,159.07 1,159.07 1,159.07 1,159.07 1,159.07 1,159.07 1,159.07 1,159.07 1,159.07 1,159.07 13,908.89 $0.16 132$

Health Insurance 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $0.00 -$

Total Payroll 8,403.29 8,403.29 8,403.29 8,403.29 8,403.29 8,403.29 8,403.29 8,403.29 8,403.29 8,403.29 8,403.29 8,403.29 100,839.44 $1.18 960$

Taxes/Insurance Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 12 month TOTAL $/SF $/unit

R/E Taxes 3,361.83 3,361.83 3,361.83 3,361.83 3,361.83 3,361.83 3,361.83 3,361.83 3,361.83 3,361.83 3,361.83 3,361.83 40,342.00 $0.47 384$

NEW Franchise Tax Estimate 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $0.00 -$

Property Insurance 1,750.00 1,750.00 1,750.00 1,750.00 1,750.00 1,750.00 1,750.00 1,750.00 1,750.00 1,750.00 1,750.00 1,750.00 21,000.00 $0.25 200$

Insurance - Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $0.00 -$

Total Taxes/Insurance 5,111.83 5,111.83 5,111.83 5,111.83 5,111.83 5,111.83 5,111.83 5,111.83 5,111.83 5,111.83 5,111.83 5,111.83 61,342.00 $0.72 584$

Utilities Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 12 month TOTAL $/SF $/unit

Electricity (House) or ALL 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 78,302.00 $0.92 746$

Electricity (Vacant) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $0.00 -$

Gas 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $0.00 -$

Water/Sewer 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $0.00 -$

Total Utilities 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 78,302.00 $0.92 746$

Maintenance (Supplies) Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 12 month TOTAL $/SF $/unit

Plumbing 196.88 196.88 196.88 196.88 196.88 196.88 196.88 196.88 196.88 196.88 196.88 196.88 2,362.50 $0.03 23$

Electric 196.88 196.88 196.88 196.88 196.88 196.88 196.88 196.88 196.88 196.88 196.88 196.88 2,362.50 $0.03 23$

Locks/Keys 78.75 78.75 78.75 78.75 78.75 78.75 78.75 78.75 78.75 78.75 78.75 78.75 945.00 $0.01 9$

HVAC 315.00 315.00 315.00 315.00 315.00 315.00 315.00 315.00 315.00 315.00 315.00 315.00 3,780.00 $0.04 36$

General Maintenance 472.50 472.50 472.50 472.50 472.50 472.50 472.50 472.50 472.50 472.50 472.50 472.50 5,670.00 $0.07 54$

Pool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $0.00 -$

Total Maintenance Supplies 1,260.00 1,260.00 1,260.00 1,260.00 1,260.00 1,260.00 1,260.00 1,260.00 1,260.00 1,260.00 1,260.00 1,260.00 15,120.00 $0.18 144$

Leasing

Flats at Sky Village Purchase Price $7,500,000

105 Asking Price $8,000,000

Year 2 assessed value (Purchase Price)

This Budget was prepared by:

Pinnacle Real Estate AdvisorsOperating Budget for

First 12 Months

This analysis is the © Intellectual Property of MBP Capital, Inc. It is based on our opinion of the property ONLY.

Contract Maintenance Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 12 month TOTAL $/SF $/unit

Plumbing (Contract) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $0.00 -$

Electric (Contract) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $0.00 -$

HVAC (Contract) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $0.00 -$

Total Contract Maintenance 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $0.00 -$

Make-Ready Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 12 month TOTAL $/SF $/unit

Painting 295.31 295.31 295.31 295.31 295.31 295.31 295.31 295.31 295.31 295.31 295.31 295.31 3,543.75 $0.04 34$

Resurfacing 177.19 177.19 177.19 177.19 177.19 177.19 177.19 177.19 177.19 177.19 177.19 177.19 2,126.25 $0.02 20$

Wallpaper 59.06 59.06 59.06 59.06 59.06 59.06 59.06 59.06 59.06 59.06 59.06 59.06 708.75 $0.01 7$

Carpet Cleaning 118.13 118.13 118.13 118.13 118.13 118.13 118.13 118.13 118.13 118.13 118.13 118.13 1,417.50 $0.02 14$

Carpet Installation 472.50 472.50 472.50 472.50 472.50 472.50 472.50 472.50 472.50 472.50 472.50 472.50 5,670.00 $0.07 54$

Housekeeping 129.94 129.94 129.94 129.94 129.94 129.94 129.94 129.94 129.94 129.94 129.94 129.94 1,559.25 $0.02 15$

Make-Ready Supplies 945.00 945.00 945.00 945.00 945.00 945.00 945.00 945.00 945.00 945.00 945.00 945.00 11,340.00 $0.13 108$

Total Make-Ready Supplies 2,197.13 2,197.13 2,197.13 2,197.13 2,197.13 2,197.13 2,197.13 2,197.13 2,197.13 2,197.13 2,197.13 2,197.13 26,365.50 $0.31 251$

Contract Services Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 12 month TOTAL $/SF $/unit

Landscaping 735.00 735.00 735.00 735.00 735.00 735.00 735.00 735.00 735.00 735.00 735.00 735.00 8,820.00 $0.10 84$

Pest Control 236.25 236.25 236.25 236.25 236.25 236.25 236.25 236.25 236.25 236.25 236.25 236.25 2,835.00 $0.03 27$

Trash Collection 630.00 630.00 630.00 630.00 630.00 630.00 630.00 630.00 630.00 630.00 630.00 630.00 7,560.00 $0.09 72$

Security 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $0.00 -$

Total Contract Services 1,601.25 1,601.25 1,601.25 1,601.25 1,601.25 1,601.25 1,601.25 1,601.25 1,601.25 1,601.25 1,601.25 1,601.25 19,215.00 $0.23 183$

Admin Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 12 month TOTAL $/SF $/unit

Legal/Accounting 157.50 157.50 157.50 157.50 157.50 157.50 157.50 157.50 157.50 157.50 157.50 157.50 1,890.00 $0.02 18$

Dues/Subscriptions 105.00 105.00 105.00 105.00 105.00 105.00 105.00 105.00 105.00 105.00 105.00 105.00 1,260.00 $0.01 12$

Fees/Permits 131.25 131.25 131.25 131.25 131.25 131.25 131.25 131.25 131.25 131.25 131.25 131.25 1,575.00 $0.02 15$

Bank Charges 26.25 26.25 26.25 26.25 26.25 26.25 26.25 26.25 26.25 26.25 26.25 26.25 315.00 $0.00 3$

Misc. 105.00 105.00 105.00 105.00 105.00 105.00 105.00 105.00 105.00 105.00 105.00 105.00 1,260.00 $0.01 12$

Telephone 367.50 367.50 367.50 367.50 367.50 367.50 367.50 367.50 367.50 367.50 367.50 367.50 4,410.00 $0.05 42$

Office Supplies 52.50 52.50 52.50 52.50 52.50 52.50 52.50 52.50 52.50 52.50 52.50 52.50 630.00 $0.01 6$

Computer Supplies 26.25 26.25 26.25 26.25 26.25 26.25 26.25 26.25 26.25 26.25 26.25 26.25 315.00 $0.00 3$

Computer/Software Lease 131.25 131.25 131.25 131.25 131.25 131.25 131.25 131.25 131.25 131.25 131.25 131.25 1,575.00 $0.02 15$

Postage/Delivery 26.25 26.25 26.25 26.25 26.25 26.25 26.25 26.25 26.25 26.25 26.25 26.25 315.00 $0.00 3$

Print Ads 630.00 630.00 630.00 630.00 630.00 630.00 630.00 630.00 630.00 630.00 630.00 630.00 7,560.00 $0.09 72$

Locator Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $0.00 -$

Third Party Submeter Co. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $0.00 -$

Marketing Items 630.00 630.00 630.00 630.00 630.00 630.00 630.00 630.00 630.00 630.00 630.00 630.00 7,560.00 $0.09 72$

Total Admin 2,388.75 2,388.75 2,388.75 2,388.75 2,388.75 2,388.75 2,388.75 2,388.75 2,388.75 2,388.75 2,388.75 2,388.75 28,665.00 $0.34 273$

TOTAL OPERATING EXPENSES 31,324.67 31,336.46 31,348.26 31,360.06 31,371.86 31,383.66 31,395.46 31,407.25 31,419.05 31,430.85 31,442.65 31,454.45 376,674.68 $4.42 3,587$

NET OPERATING INCOME 45,420.43 45,644.60 45,868.77 46,092.93 46,317.10 46,541.27 46,765.43 46,989.60 47,213.76 47,437.93 47,662.10 47,886.26 559,840.18 $6.57 5,332$

Debt Service Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 12 month TOTAL $/SF $/unit

1st Principle & Interest 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 318,596.43 $3.74 3,034$

2nd Principle & Interest 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $0.00 -$

Total Debt Service 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 318,596.43 $3.74 3,034$

NET CASH FLOW 18,870.73 19,094.90 19,319.06 19,543.23 19,767.40 19,991.56 20,215.73 20,439.89 20,664.06 20,888.23 21,112.39 21,336.56 241,243.75 $2.83 2,298$

Minus $250/unit Replacement Reserves 2,187.50 2,187.50 2,187.50 2,187.50 2,187.50 2,187.50 2,187.50 2,187.50 2,187.50 2,187.50 2,187.50 2,187.50 26,250.00 250$

NET CASH AFTER RESERVES 16,683.23 16,907.40 17,131.56 17,355.73 17,579.90 17,804.06 18,028.23 18,252.39 18,476.56 18,700.73 18,924.89 19,149.06 214,993.75 $2.52 2,048$

Operating Budget for First 12 Months - Continued


SUMMARY Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 12 month TOTAL $/SF $/unit

Total Revenue 73,042.10 73,278.06 73,514.03 73,749.99 73,985.96 74,221.92 74,457.89 74,693.85 74,929.82 75,165.78 75,401.75 75,637.71 892,078.86 $10.47 8,496$

Total Reimbursements 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 3,703.00 44,436.00 $0.52 423$

TOTAL INCOME 76,745.10 76,981.06 77,217.03 77,452.99 77,688.96 77,924.92 78,160.89 78,396.85 78,632.82 78,868.78 79,104.75 79,340.71 936,514.86 $10.99 8,919$

Total Management Fees 3,837.26 3,849.05 3,860.85 3,872.65 3,884.45 3,896.25 3,908.04 3,919.84 3,931.64 3,943.44 3,955.24 3,967.04 46,825.74 $0.55 446$

Total Payroll 8,403.29 8,403.29 8,403.29 8,403.29 8,403.29 8,403.29 8,403.29 8,403.29 8,403.29 8,403.29 8,403.29 8,403.29 100,839.44 $1.18 960$

Total Taxes/Insurance 5,111.83 5,111.83 5,111.83 5,111.83 5,111.83 5,111.83 5,111.83 5,111.83 5,111.83 5,111.83 5,111.83 5,111.83 61,342.00 $0.72 584$

Total Utilities 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 6,525.17 78,302.00 $0.92 746$

Total Maintenance Supplies 1,260.00 1,260.00 1,260.00 1,260.00 1,260.00 1,260.00 1,260.00 1,260.00 1,260.00 1,260.00 1,260.00 1,260.00 15,120.00 $0.18 144$

Total Contract Maintenance 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $0.00 -$

Total Make-Ready Supplies 2,197.13 2,197.13 2,197.13 2,197.13 2,197.13 2,197.13 2,197.13 2,197.13 2,197.13 2,197.13 2,197.13 2,197.13 26,365.50 $0.31 251$

Total Contract Services 1,601.25 1,601.25 1,601.25 1,601.25 1,601.25 1,601.25 1,601.25 1,601.25 1,601.25 1,601.25 1,601.25 1,601.25 19,215.00 $0.23 183$

Total Admin 2,388.75 2,388.75 2,388.75 2,388.75 2,388.75 2,388.75 2,388.75 2,388.75 2,388.75 2,388.75 2,388.75 2,388.75 28,665.00 $0.34 273$

TOTAL EXPENSES 31,324.67 31,336.46 31,348.26 31,360.06 31,371.86 31,383.66 31,395.46 31,407.25 31,419.05 31,430.85 31,442.65 31,454.45 376,674.68 $4.42 3,587$

NET OPERATING INCOME 45,420.43 45,644.60 45,868.77 46,092.93 46,317.10 46,541.27 46,765.43 46,989.60 47,213.76 47,437.93 47,662.10 47,886.26 559,840.18 $6.57 5,332$

Total Debt Service 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 26,549.70 318,596.43 $3.74 3,034$

Net Cash Flow 18,870.73 19,094.90 19,319.06 19,543.23 19,767.40 19,991.56 20,215.73 20,439.89 20,664.06 20,888.23 21,112.39 21,336.56 241,243.75 $2.83 2,298$

Minus $250/unit Replacement Reserves 2,187.50 2,187.50 2,187.50 2,187.50 2,187.50 2,187.50 2,187.50 2,187.50 2,187.50 2,187.50 2,187.50 2,187.50 26,250.00 - 250.00

NET CASH AFTER RESERVES 16,683.23 16,907.40 17,131.56 17,355.73 17,579.90 17,804.06 18,028.23 18,252.39 18,476.56 18,700.73 18,924.89 19,149.06 214,993.75 2.52 2,047.56

Operating Budget for First 12 Months - Continued

11% 0%

21%

5%

27%

11%

8%

5% 12%

Expense Distribution

Property Taxes

Franchise Tax

Utilities

Insurance

On-site Payroll

Maint./MR Supplies

Admin. / Misc.

Contract Services

Management Fee

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

EGI Expenses NOI Debt Service Cash Flow

Income and Expense Comparison

Current Income Stabilized Iincome

7.26%

11.11%

12.46%

8.00%

1

Financial Indicators

CAP Rate 1st Year ROI Stablized ROI Re-Sale CAP Rate


Property Name Annual Property Operating DataLocation

Type of Property Purchase Price

Size of Property plus Acquisition Costs

plus Loan Fees/Costs/Renovation

Purpose of analysis Less Mortages

Equals Initial Investment

Assessed/Appraised Values

Land & Personal 25%

Improvements 75% Amort Loan

Property Tax Rate 4034200.00% -$ Balance Periodic Pmt Pmts/Yr Interest Period Term

Total 100% 1st $5,610,000 $26,549.70 12 4.5% 35 10

2nd 12 7.25% 30 10

Adjusted Basis as of: 20-Oct-10

%

ALL FIGURES ARE ANNUAL $/Unit of GOI COMMENTS/FOOTNOTES

1 POTENTIAL RENTAL INCOME 8,644.91 907,716

2 Less: Vacancy & Cr. Losses (432.25) ( 5.% of PRI ) (45,386)

3 EFFECTIVE RENTAL INCOME 8,212.67 862,330

4 Plus: Utility Reimb. & Other Income 557.00 58,485

5 GROSS OPERATING INCOME (GOI) 8,769.67 100.00% 920,815

6 OPERATING EXPENSES:

7 384.21 4.38% 40,342

8 Franchise Tax -

9 745.73 8.50% 78,302

10 200.00 2.28% 21,000

11 960.38 10.95% 100,839

12 395.10 4.51% 41,486

13 273.00 3.11% 28,665

14 183.00 2.09% 19,215

15 445.96 5.09% 46,826

16 3,587.38 40.91% 376,675

17 5,182.29 59.09% 544,141

18 3,034.25 34.60% 318,596

19 Less: Participation Payments - -

20 NET INCOME 2,148.04 24.49% 225,544 NET

21 250.00 26,250

22 1,898.04$ 21.64% 199,294

Pinnacle Real Estate Advisors

Disclaimer: This entire analysis was done as an estimation of income and expenses and there may be errors. It was NOT prepared by a CPA. There are tax related calculations throughout this analysis and MBP Capital, Inc. expressly and

emphatically encourages and requires that you do not depend on this analysis as fact. This analysis was put together to help you decide whether or not this property fits your investment needs and we suggest that you make your own calculations

and make decisions based on advice from your attorney and tax related professionals. This analysis is not all inclusive nor do we guarantee any portion. It is to be used as a projection analysis only and is not to be considered fact. A thorough

investigation is recommended during the inspection and feasability period. This package has been prepared for informational purposes only to assist a potential purchaser in determining whether it wishes to proceed with an in depth investigation

of the property. The information contained within this investment analysis has been derived from information deemed reliable or may even be estimated information. However, it is subject to errors, omissions, price change, and/or withdrawal, and

no warranty is made as to the accuracy. Further, no warranties or representations shall be made by MBP Capital, Inc. and/or its agents, representatives, or affiliates regarding oral statements which have been made in the discussion of the above

property. This presentation was sent to the recipient under the assumption that he is a buying principal unless otherwise agreed to in writing. Any potential purchaser of this subject property is hereby advised to conduct an investigation into the

operation of the property, the income, expenses, and overall performance and not to depend on the enclosed information to be all inclusive or fact.

General Partner fees (if any)

Less: Funded Reserves Replacement Reserves

CASH FLOW BEFORE TAXES CASH FLOW estimate

TOTAL OPERATING EXPENSES IREM estimated average = $4,228/unit

NET OPERATING INCOME NOI

Less: Annual Debt Service Principal and Interest for all loans

Administrative / Misc. Office, phone, advertising, postage, signs, & all admin. & misc.

Contract Services Landscaping, trash, pest control, security

Management Fees Estimated Property Management Company Fees

Property Insurance Estimated First Year Insurance expense

On-Site Payroll On-site staff (management & maintenance) plus payroll expense

Maintenance / Make-ready Supplies Estimated cost of all maintenance and make-ready materials

Gross Operating Income

Real Estate Taxes Current Year Property Taxes

Utilities Previous 12 months Utility cost plus escalation %

Misc. Income and Utility Reimbursements

98,175.00$

Purchase (5,610,000.00)$

2,030,250.00$

-$

7,542,075.00$

First Year Operating Data

Rent if 100% Occupied

Estimated Vacany and Collection Loss

Estimated Rental Income minus Rent Losses



Multifamily 7,500,000.00$

105 (Units) 42,075.00$

1st Mortgage 2nd Mortgage Improvements Personal Property

$5,610,000 Value $5,656,556 $75,421 $7,500,000

4.50% 7.25% C. R. Method SL SL $42,075

35 30 Useful Life 27.5 15 $7,542,075

10 10 In Service Date 1-Jan 1-Jan

12 12 Date of Sale 1-Jan 1-Jan

$26,549.70 12 Months % age 3.636% 6.667%

$318,596 11.5 Months % age 3.485% 6.389%

$98,175

1 2 3 4 5 6 7 8 9 10 11

1 $929,112 $950,508 $979,023 $1,008,394 $1,038,646 $1,069,805

2 $46,456 $57,030 $58,741 $60,504 $62,319 $64,188

3 $882,656 $893,478 $920,282 $947,890 $976,327 $1,005,617

4 $58,611 $58,588 $60,345 $62,156 $64,020 $65,941

5 $941,267 $952,065 $980,627 $1,010,046 $1,040,347 $1,071,558

6

7 40,342$ 40,745$ 41,153$ 41,564$ 41,980$ 42,400$ 42,824$ 43,252$ 43,685$ 44,121$ 44,563$

8 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

9 78,302$ 79,085$ 79,876$ 80,675$ 81,481$ 82,296$ 83,119$ 83,950$ 84,790$ 85,638$ 86,494$

10 21,000$ 21,210$ 21,422$ 21,636$ 21,853$ 22,071$ 22,292$ 22,515$ 22,740$ 22,967$ 23,197$

11 100,839$ 101,848$ 102,866$ 103,895$ 104,934$ 105,983$ 107,043$ 108,114$ 109,195$ 110,287$ 111,389$

12 41,486$ 41,900$ 42,319$ 42,743$ 43,170$ 43,602$ 44,038$ 44,478$ 44,923$ 45,372$ 45,826$

13 28,665$ 28,952$ 29,241$ 29,534$ 29,829$ 30,127$ 30,428$ 30,733$ 31,040$ 31,350$ 31,664$

14 19,215$ 19,407$ 19,601$ 19,797$ 19,995$ 20,195$ 20,397$ 20,601$ 20,807$ 21,015$ 21,225$

15 46,826$ 47,294$ 47,767$ 48,245$ 48,727$ 49,214$ 49,706$ 50,204$ 50,706$ 51,213$ 51,725$

16

17 $376,675 $380,441 $384,246 $388,088 $391,969 $395,889

18 $564,593 $571,624 $596,381 $621,958 $648,378 $675,669

19 $251,068 $247,966 $244,722 $241,328 $237,778

20

21 $197,131 $205,672 $205,672 $205,672 $197,131

22 $4,819 $5,028 $5,028 $5,028 $4,819

23 $9,818 $9,818 $9,818 $9,818 $9,818

24

25

26 $101,757 $103,140 $131,142 $160,112 $198,833

27 $35,615 $36,099 $45,900 $56,039 $69,591

28 $564,593 $571,624 $596,381 $621,958 $648,378

29 $318,596 $318,596 $318,596 $318,596 $318,596

30 $26,250 $26,250 $26,250 $26,250 $26,250

33 $219,746 $226,777 $251,535 $277,111 $303,532

34 $35,615 $36,099 $45,900 $56,039 $69,591

35 $184,131 $190,678 $205,635 $221,072 $233,940


Property Taxes

CASH FLOW

NET OPERATING INCOME (Line 7)

-Annual Debt Service

minus Funded Capital Reserves

CASH FLOW BEFORE TAXES

-Tax Liability (Savings) (Line 37 )

CASH FLOW AFTER TAXES

-Cost Recovery-Personal Property

-Loan Costs Amortization

-

-

REAL ESTATE TAXABLE INCOME

Tax Liability (Savings) at 35%

TOTAL OPERATING EXPENSES

NET OPERATING INCOME

-Interest-First Mortgage

-Interest-Second Mortgage

-Cost Recovery-Improvements

Contract Services

Management Fee

Franchise Tax

Utilities

Insurance

On-site Payroll

Maint./MR Supplies

Admin. / Misc.

-Vacancy & Credit Losses

EFFECTIVE RENTAL INCOME

+Other Income (collectable)

GROSS OPERATING INCOME

OPERATING EXPENSES

Periodic Payment

Annual Debt Service

Loan Fees/Costs

TAXABLE INCOME

End of Year

POTENTIAL RENTAL INCOME

Interest Rate Acquisition Costs

Amortization Period Total Acquisition Basis

Loan Term

Payments/Year

Date Prepared October 20, 2010

MORTGAGE DATA COST RECOVERY DATA BASIS DATA

Amount Acquisition Price

Purpose of Analysis Potential Purchase Equals Initial Investment $2,030,250

Prepared by Matt Ritter / Mike Phillips, CCIM

Type of Property Multifamily Plus Loan Costs $98,175

Size of Property (sf/units) 105 Minus Mortgages $5,610,000

Cash Flow Analysis Worksheet

Property Name Flats at Sky Village Acquisition Price $7,500,000

Location 10364 W. 58th Place, Arvada, CO 80004Plus Acquisition Costs & Renovation $42,075


1 End of Year: 1 2 3 4 5 6 7 8 9 10

2 Principal Balance - 1st Mortgage $5,542,472 $5,471,841 $5,397,967 $5,320,698 $5,239,880

3 Principal Balance - 2nd Mortgage

4 TOTAL UNPAID BALANCE $5,542,472 $5,471,841 $5,397,967 $5,320,698 $5,239,880

5 END OF YEAR 1 2 3 4 5 6 7 8 9 10

6 PROJECTED SALES PRICE (Rounded to nearest 000) $8,446,000

7 Basis at Acquisition $7,542,075

8 +Capital Additions

9 -Cost Recovery (Depreciation) Taken $1,036,000

10 -Basis in Partial Sales

11 =Adjusted Basis at Sale $6,506,075

12 Sale Price $8,446,000

13 -Costs of Sale $591,220

14 -Adjusted Basis at Sale (Line 11) $6,506,075

15 -

16 =Gain or (Loss) $1,348,705

17 -Straight Line Cost Recovery (limited to gain) (Line 9) $1,036,000

18 -Suspended Losses

19 =Capital Gain from Appreciation $312,705

20 Unamortized Loan Fees/Costs (negative) ($49,088)

21 +

22 =Ordinary Taxable Income ($49,088)

23 Sale Price $8,446,000

24 Cost of Sale $591,220

25 -Participaiton Payments on Sale

26 -Mortgage Balance(s) $5,239,880

27 +Balance of Funded Reserves

28 =SALE PROCEEDS BEFORE TAX $2,614,900

29 -Tax (Savings)on Ordinary Income (Line 22 x 35%) ($17,181)

30 -Tax on Cost Recovery Recapture (Line 17 x 25%) $259,000

31 -Tax on Capital Gain (Line 19 x 15%) $46,906

32 =SALE PROCEEDS AFTER TAX $2,326,175

CALCULATION OF SALE PROCEEDS

Cash Sale Worksheet

MORTGAGE BALANCES

ITEMS TAXED AS ORDINARY INCOME

CALCULATION OF SALE PROCEEDS

CALCULATION OF ADJUSTED BASIS

CALCULATION OF CAPITAL GAIN ON SALE

EOY $ EOY $

0 ($2,030,250) 0 ($2,030,250)

1 $219,746 + 1 $184,131 +

2 $226,777 + 2 $190,678 +

3 $251,535 + 3 $205,635 +

4 $277,111 + 4 $221,072 +

5 $303,532 + $2,614,900 5 $233,940 + $2,326,175

6 + 6 +

7 + 7 +

8 + 8 +

9 + 9 +

10 + 10 +

IRR = 16.43% IRR = 12.33%

NPV @ = NPV @ =

1 2 3 4 5 6 7 8 9 10

$7,500,000 $7,825,000 $8,160,000 $8,507,000 $8,865,000

$5,542,472 $5,471,842 $5,397,967 $5,320,699 $5,239,880

73.90% 69.93% 66.15% 62.54% 59.11%

1.77 1.79 1.87 1.95 2.04

7.53% 7.62% 7.95% 8.29% 8.65% 9.01%

10.82% 11.17% 12.39% 13.65% 14.95%

9.07% 9.39% 10.13% 10.89% 11.52%

7.62%

8.07

24.94%


Gross Rent Multiplier

Effective Tax Rate

Loan to Value

Debt Service Coverage Ratio

Return on Asset

Before Tax Cash on Cash

After Tax Cash on Cash

Acquisition Cap Rate

Loan Balance

Measures of Investment PerformanceBefore Tax After Tax

End of Year

Value Using Acquisition Cap Rate

EOY Cash Flows Sale Proceeds

($2,030,250)

1 $219,746

2 $226,777

3 $251,535

4 $277,111

5 $303,532 + $2,614,900.43

6

7

8

9

10

IRR = 16.43%Beginning

Amount

Beginning Amount Plus Amount Ending

Investment Earned/ Amount Withdrawn/ Investment

Year Amount + Return On = Earned - Cash Flow = Amount Return Of

1 $2,030,250 + $333,564 = $2,363,814 - $219,746 = $2,144,067 ($113,817)

2 $2,144,067 + $352,264 = $2,496,331 - $226,777 = $2,269,553 ($125,486)

3 $2,269,553 + $372,880 = $2,642,434 - $251,535 = $2,390,899 ($121,346)

4 $2,390,899 + $392,817 = $2,783,716 - $277,111 = $2,506,605 ($115,706)

5 $2,506,605 + $411,827 = $2,918,432 - $2,918,432 = $2,506,605

6 + = - =

7 + = - =

8 + = - =

9 + = - =

10 + = - =

$1,863,352 $3,893,602 $2,030,250

Proof of Before Tax IRR

Totals


Seller's Actual NumbersFlats at Sky Village10304 West 58th PlaceArvada, CO 80004

Jul 2008 Aug 2008 Sep 2008 Oct 2008 Nov 2008 Dec 2008 Jan 2009 Feb 2009 Mar 2009 Apr 2009 May 2009 Jun 2009 Total

500000 REVENUE

510000 Rental Income

510010 Apartment Rental Income510050 Gross Mkt Rent Potential 76,605.00 75,970.00 75,465.00 75,465.00 75,490.00 75,490.00 75,490.00 76,240.00 77,425.00 77,425.00 76,846.00 61,975.78 899,886.7

8510060 Gross Market Rent -

Affordable0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10,475.00 10,475.00

510100 Gain/Loss to Lease -3,851.00 -2,860.00 -2,329.00 -1,544.00 -1,299.00 -1,213.00 -1,053.00 -1,737.00 -2,726.00 -2,430.00 -2,275.00 0.00 -23,317.00510120 Prior Period Rent Adjustment 0.00 0.00 0.00 0.00 947.00 -497.91 0.00 46.00 0.00 0.00 -873.00 0.00 -377.91510130 Prior Period Hsg Rent Adj 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 98.00 0.00 98.00510150 Potential Rent 72,754.00 73,110.00 73,136.00 73,921.00 75,138.00 73,779.09 74,437.00 74,549.00 74,699.00 74,995.00 73,796.00 72,450.78 886,764.8

7510200 Vacancy -10,235.00 -5,702.00 -7,652.00 -1,646.78 -232.90 -2,282.02 -1,976.78 -1,448.73 -1,267.98 -4,794.55 -4,430.50 0.00 -41,669.24510300 Models -1,270.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,270.00510350 Employee Units 0.00 0.00 -140.00 -150.00 -300.00 -150.00 -150.00 -150.00 -150.00 -150.00 -268.71 -160.00 -1,768.71510360 Government Subsidy Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -32.67 -32.67510420 Non-recurring Concessions -5,435.13 -9,043.06 -1,250.00 -1,449.00 0.00 0.00 141.99 616.13 250.00 -25.00 -100.00 -700.00 -16,994.07510950 Less: Writeoffs 0.00 0.00 0.00 -842.92 0.00 -2,542.50 0.00 0.00 -59.61 0.00 0.00 0.00 -3,445.03510951 Write Off Rent Recovery 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 213.69 3,080.25 0.00 0.00 3,293.94510990 Total Apt Rental Income 55,813.87 58,364.94 64,094.00 69,832.30 74,605.10 68,804.57 72,452.21 73,566.40 73,685.10 73,105.70 68,996.79 71,558.11 824,879.0

9513000 Other Rental Income513150 Storage 0.00 0.00 0.00 25.00 60.79 50.00 186.84 200.34 200.00 200.00 225.00 248.33 1,396.30513250 MTM Premium 3.65 350.00 173.54 350.00 130.00 150.00 200.00 200.00 250.00 177.42 100.00 260.00 2,344.61513300 Pet Premium 396.13 625.00 540.32 698.47 667.50 604.19 639.51 670.62 903.22 725.00 680.00 650.00 7,799.96519090 Total Other Rental Income 399.78 975.00 713.86 1,073.47 858.29 804.19 1,026.35 1,070.96 1,353.22 1,102.42 1,005.00 1,158.33 11,540.87519990 Total Rental Income 56,213.65 59,339.94 64,807.86 70,905.77 75,463.39 69,608.76 73,478.56 74,637.36 75,038.32 74,208.12 70,001.79 72,716.44 836,419.9

6

520000 Other Income520050 Application Fees 780.00 570.00 490.00 340.00 270.00 140.00 315.00 385.00 135.00 405.00 180.00 360.00 4,370.00520100 NSF Fees 0.00 0.00 0.00 50.00 0.00 300.00 150.00 50.00 50.00 0.00 50.00 0.00 650.00520150 Late Fees 81.00 15.00 320.00 500.00 560.00 1,354.00 660.00 260.00 130.00 320.00 555.00 210.00 4,965.00520250 Initial Pet Fees 0.00 0.00 0.00 200.00 100.00 100.00 100.00 300.00 200.00 100.00 0.00 0.00 1,100.00520360 Administrative Fees 0.00 0.00 0.00 500.00 300.00 300.00 300.00 400.00 300.00 100.00 300.00 300.00 2,800.00520400 Clubroom Rental 0.00 0.00 0.00 0.00 0.00 0.00 0.00 25.00 0.00 0.00 25.00 0.00 50.00520500 Transfer Fees 0.00 0.00 0.00 100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 100.00520600 Lease Cancellation Fees 1,850.00 0.00 2,369.46 -1,589.46 0.00 750.00 0.00 2,035.74 -525.89 0.00 448.87 0.00 5,338.72

The Flats at Sky Village (fka Ralston Valley) (13007) Page 1

Income Statement (12 months)Period = Jul 2008-Jun 2009

Book = ,Accrual,Budget

Monday, June 15, 2009

03:15 PM

Jul 2008 Aug 2008 Sep 2008 Oct 2008 Nov 2008 Dec 2008 Jan 2009 Feb 2009 Mar 2009 Apr 2009 May 2009 Jun 2009 Total520850 Damages/Cleaning -37.00 0.00 1,325.89 -1,285.89 0.00 2,190.00 0.00 295.16 0.00 292.00 1,601.95 1,682.86 6,064.97520900 Interest Income 0.00 0.00 0.00 0.00 1,234.28 0.00 0.00 42.17 0.00 110.18 848.71 30.99 2,266.33521050 Miscellaneous -1.90 99.40 -1.05 55.00 0.00 -500.00 0.00 0.00 0.00 0.00 50.00 4.15 -294.40521990 Total Other Income 2,672.10 684.40 4,504.30 -1,130.35 2,464.28 4,634.00 1,525.00 3,793.07 289.11 1,327.18 4,059.53 2,588.00 27,410.62

530000 Corporate Apartment Income530200 Utilities 0.00 0.00 0.00 -0.02 0.02 0.00 0.00 0.00 0.00 0.00 0.00 4,535.43 4,535.43530990 Total Corporate Apt Income 0.00 0.00 0.00 -0.02 0.02 0.00 0.00 0.00 0.00 0.00 0.00 4,535.43 4,535.43

540000 Laundry Income540100 Coin-op Laundry 417.00 431.63 0.00 20.00 892.13 1,069.01 555.88 509.88 470.88 532.13 590.13 504.88 5,993.55540990 Total Laundry Income 417.00 431.63 0.00 20.00 892.13 1,069.01 555.88 509.88 470.88 532.13 590.13 504.88 5,993.55

550000 Cost Recovery550050 Reimbursed Electricity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8.00 8.00550250 Other Reimbursed Costs -426.00 426.00 4,142.00 2,401.00 0.00 86.00 0.00 0.00 0.00 0.00 0.00 0.00 6,629.00550990 Total Cost Recovery -426.00 426.00 4,142.00 2,401.00 0.00 86.00 0.00 0.00 0.00 0.00 0.00 8.00 6,637.00599990 TOTAL REVENUE 58,876.75 60,881.97 73,454.16 72,196.40 78,819.82 75,397.77 75,559.44 78,940.31 75,798.31 76,067.43 74,651.45 80,352.75 880,996.5

6

600000 EXPENSES

700000 CONTROLLABLE EXPENSES

700010 Payroll

710000 Salary & Wages

711000 Administrative Salaries711200 Manager 3,142.26 4,736.55 3,182.68 3,327.57 3,107.70 3,182.69 4,736.30 3,182.70 3,182.70 3,182.69 3,903.23 1,628.84 40,495.91711800 Other Admin Salaries 0.00 0.00 0.00 0.00 1,067.63 -1,068.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.37711990 Total Admin Salaries 3,142.26 4,736.55 3,182.68 3,327.57 4,175.33 2,114.69 4,736.30 3,182.70 3,182.70 3,182.69 3,903.23 1,628.84 40,495.54

712000 Leasing Salaries712200 Leasing Consultant 980.84 2,617.92 1,542.40 1,019.62 1,127.16 1,399.86 1,624.08 1,345.32 1,251.39 1,221.09 2,189.79 557.52 16,876.99712990 Total Leasing Salaries 980.84 2,617.92 1,542.40 1,019.62 1,127.16 1,399.86 1,624.08 1,345.32 1,251.39 1,221.09 2,189.79 557.52 16,876.99

713000 Maintenance Salaries713100 Divisional Maint Mgr 0.00 18.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 18.05713200 Maintenance Manager 3,708.80 4,463.65 3,127.32 3,278.72 2,891.95 2,974.74 4,540.12 3,301.22 3,672.00 2,720.00 3,838.00 1,445.00 39,961.52





03:15 PM

Jul 2008 Aug 2008 Sep 2008 Oct 2008 Nov 2008 Dec 2008 Jan 2009 Feb 2009 Mar 2009 Apr 2009 May 2009 Jun 2009 Total713400 Maintenance Assistant 196.00 0.00 1,841.68 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,037.68713855 OT-Maintenance 0.00 204.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 223.12 0.00 0.00 427.12713990 Total Maint Salaries 3,904.80 4,685.70 4,969.00 3,278.72 2,891.95 2,974.74 4,540.12 3,301.22 3,672.00 2,943.12 3,838.00 1,445.00 42,444.37713999 Total Salary & Wages 8,027.90 12,040.17 9,694.08 7,625.91 8,194.44 6,489.29 10,900.50 7,829.24 8,106.09 7,346.90 9,931.02 3,631.36 99,816.90

714000 Bonus714050 Bonus - Administrative 1,062.54 565.00 755.00 550.00 573.33 86.67 0.00 2,258.43 0.00 2,665.00 0.00 0.00 8,515.97714100 Bonus - Leasing 1,062.54 1,575.00 1,255.00 250.00 573.33 151.67 780.01 108.33 645.00 0.00 795.00 0.00 7,195.88714150 Bonus - Maintenance 0.00 0.00 0.00 150.00 273.33 86.67 0.00 108.33 0.00 0.00 0.00 0.00 618.33714190 Total Bonus 2,125.08 2,140.00 2,010.00 950.00 1,419.99 325.01 780.01 2,475.09 645.00 2,665.00 795.00 0.00 16,330.18

714195 Payroll Taxes714200 Payroll Taxes - Administrative 318.85 399.92 310.59 328.81 311.69 274.46 531.54 507.86 303.56 443.19 353.79 137.15 4,221.41714250 Payroll Taxes - Leasing 165.51 320.77 229.53 122.03 160.08 148.70 221.17 169.10 167.69 183.47 288.01 63.90 2,239.96714300 Payroll Taxes - Maintenance 304.78 447.89 497.88 333.94 266.99 206.15 486.20 342.68 329.25 309.69 411.25 141.88 4,078.58714339 Total Payroll Taxes 789.14 1,168.58 1,038.00 784.78 738.76 629.31 1,238.91 1,019.64 800.50 936.35 1,053.05 342.93 10,539.95

714340 Insurance Benefits714350 Ins. Benefits - Administrative 247.01 508.00 508.00 576.41 508.00 508.00 346.14 324.14 324.14 324.14 544.97 164.47 4,883.42714400 Ins. Benefits - Leasing 0.00 0.00 24.79 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 24.79714450 Ins. Benefits - Maintenance 313.42 10.09 159.42 345.80 334.50 356.49 370.10 376.86 209.81 0.00 9.15 0.00 2,485.64714489 Total Insurance Benefits 560.43 518.09 692.21 922.21 842.50 864.49 716.24 701.00 533.95 324.14 554.12 164.47 7,393.85

714490 401K Contribution714500 401K Contr - Administrative 100.88 119.28 36.65 0.00 0.00 0.00 115.83 34.96 81.90 122.97 95.41 36.65 744.53714550 401K Contr - Leasing 0.00 0.00 1.98 0.00 0.00 0.00 41.42 32.71 32.38 36.08 43.90 12.54 201.01714600 401K Contr - Maintenance 10.37 0.81 13.54 0.00 0.00 0.00 1.19 14.40 81.60 0.00 0.00 0.00 121.91714630 401K Contribution 0.00 0.00 0.00 0.17 0.00 34.91 0.00 0.00 0.00 0.00 0.00 0.00 35.08714639 Total 401K Contribution 111.25 120.09 52.17 0.17 0.00 34.91 158.44 82.07 195.88 159.05 139.31 49.19 1,102.53

714640 Workers Compensation714650 Workers Comp -

Administrative113.71 154.80 139.72 204.18 194.18 159.95 127.32 245.77 96.87 152.23 99.08 19.98 1,707.79

714700 Workers Comp - Leasing 59.67 115.89 81.63 36.85 49.66 45.31 53.61 42.29 41.87 43.84 77.10 8.45 656.17714750 Workers Comp - Maintenance 270.71 427.38 428.80 309.44 251.58 188.60 293.09 132.79 167.25 170.92 260.81 64.40 2,965.77714790 Total Workers

Compensation444.09 698.07 650.15 550.47 495.42 393.86 474.02 420.85 305.99 366.99 436.99 92.83 5,329.73

714795 Other Payroll714800 Uniform 0.00 263.03 0.00 406.55 42.18 0.00 0.00 0.00 0.00 0.00 275.81 384.82 1,372.39





03:15 PM

Jul 2008 Aug 2008 Sep 2008 Oct 2008 Nov 2008 Dec 2008 Jan 2009 Feb 2009 Mar 2009 Apr 2009 May 2009 Jun 2009 Total714850 Temp Help - Admin 242.44 0.00 133.76 133.76 592.57 133.76 0.00 0.00 0.00 0.00 0.00 0.00 1,236.29714855 Temp Help - Maintenance 0.00 4,026.28 2,624.00 0.00 0.00 0.00 0.00 0.00 1,039.36 0.00 1,158.31 712.80 9,560.75714870 Payroll Fees 109.08 135.14 61.98 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 306.20714900 Other 0.00 0.00 0.00 0.00 0.00 8.19 3.22 0.32 0.00 0.00 0.09 0.00 11.82714990 Total Other Payroll 351.52 4,424.45 2,819.74 540.31 634.75 141.95 3.22 0.32 1,039.36 0.00 1,434.21 1,097.62 12,487.45715990 Total Payroll 12,409.41 21,109.45 16,956.35 11,373.85 12,325.86 8,878.82 14,271.34 12,528.21 11,626.77 11,798.43 14,343.70 5,378.40 153,000.5

9

720000 Utilities720050 Electricity-Vacant 417.63 1,541.14 -458.43 60.74 137.42 97.47 112.47 0.00 0.00 22.94 35.98 86.08 2,053.44720100 Electricity-Common Area 756.22 1,940.95 0.00 1,084.89 947.55 1,001.85 1,046.26 983.38 821.46 862.78 994.06 902.85 11,342.25720150 Gas-Vacant 0.00 0.00 -750.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -750.00720200 Gas-Common Area 8,323.39 5,960.09 750.00 2,512.40 2,155.30 4,386.68 6,194.47 9,573.77 6,989.91 6,260.02 5,076.87 3,146.12 61,329.02720250 Water 2,862.55 0.00 0.00 3,098.75 0.00 2,497.20 0.00 2,700.86 0.00 2,638.60 0.00 2,811.23 16,609.19720300 Sewer 2,361.11 0.00 0.00 2,351.11 0.00 2,351.11 0.00 2,575.50 0.00 2,575.50 0.00 2,575.50 14,789.83720350 Trash Removal 800.98 796.69 769.63 763.66 752.55 801.99 748.17 746.40 512.50 520.82 520.34 522.06 8,255.79720390 Other Utilities -8.00 -152.00 0.00 224.00 -56.00 -56.00 -40.00 -32.00 -16.00 -40.00 -32.00 -16.00 -224.00720500 Reimbursed Water -1,880.19 -2,072.00 -2,490.79 -3,205.26 -3,158.48 -3,132.00 -3,412.28 -3,700.79 0.00 0.00 0.00 0.00 -23,051.79720600 Reimbursed-Other Utilities 0.00 24.00 0.00 -264.00 0.00 0.00 0.00 0.00 -3,776.73 -3,931.11 -4,103.35 0.00 -12,051.19720990 Total Utilities 13,633.69 8,038.87 -2,179.59 6,626.29 778.34 7,948.30 4,649.09 12,847.12 4,531.14 8,909.55 2,491.90 10,027.84 78,302.54

725000 Redecorating/Make-Ready725050 Carpet Cleaning -265.00 40.00 0.00 0.00 135.00 190.00 165.00 115.00 0.00 285.00 190.00 80.00 935.00725060 Carpet Repair -125.00 165.00 0.00 0.00 0.00 0.00 0.00 0.00 35.00 60.00 55.00 0.00 190.00725200 Painting 57.73 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 44.73 0.00 0.00 102.46725250 Window Coverings Repairs 0.00 0.00 344.22 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 344.22725350 Contract Cleaning 200.00 0.00 560.00 1,475.00 715.00 0.00 285.00 95.00 845.00 0.00 380.00 740.00 5,295.00725360 Vacant Unit Prep 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 62.57 0.00 0.00 62.57725400 Cleaning Supplies 64.39 34.71 0.00 32.14 0.00 0.00 21.06 8.93 72.40 0.00 0.00 0.00 233.63725990 Total Redecorate/Make-

Ready-67.88 239.71 904.22 1,507.14 850.00 190.00 471.06 218.93 952.40 452.30 625.00 820.00 7,162.88

730000 Landscaping/Contracted Srvs730050 Landscape Contract 4,158.77 -468.00 1,300.00 1,300.00 0.00 0.00 0.00 0.00 0.00 1,055.71 1,055.71 1,055.71 9,457.90730100 Seasonal Color 0.00 0.00 0.00 0.00 0.00 145.98 0.00 0.00 0.00 0.00 0.00 0.00 145.98730300 Other Landscaping 0.00 0.00 0.00 0.00 0.00 377.00 0.00 0.00 0.00 0.00 0.00 0.00 377.00730450 Pest Control -80.00 50.00 100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 70.00730500 Contract Cable 0.00 0.00 0.00 0.00 0.00 0.00 141.97 46.76 59.99 79.99 46.01 0.00 374.72730550 Snow Removal 0.00 0.00 0.00 0.00 0.00 180.00 315.00 360.00 0.00 7.00 180.00 0.00 1,042.00





03:15 PM

Jul 2008 Aug 2008 Sep 2008 Oct 2008 Nov 2008 Dec 2008 Jan 2009 Feb 2009 Mar 2009 Apr 2009 May 2009 Jun 2009 Total730620 Contract Common Area

Cleaning590.00 0.00 1,915.00 -1,260.00 850.00 0.00 930.00 120.00 1,275.00 0.00 330.00 710.00 5,460.00

730990 TotalLandscaping/Contracted

4,668.77 -418.00 3,315.00 40.00 850.00 702.98 1,386.97 526.76 1,334.99 1,142.70 1,611.72 1,765.71 16,927.60

735000 Repairs & Maintenance735040 Electrical 5.89 594.52 303.20 66.40 69.43 0.00 181.55 125.68 356.87 26.77 62.74 110.50 1,903.55735080 Plumbing 0.00 0.00 0.00 0.00 0.00 0.00 411.75 141.00 157.00 0.00 143.00 0.00 852.75735090 Plumbing Supplies 54.88 809.18 233.64 154.91 188.56 0.00 42.94 10.35 62.57 86.81 66.65 94.19 1,804.68735120 HVAC 0.00 0.00 588.82 0.00 0.00 0.00 0.00 128.14 0.00 0.00 0.00 0.00 716.96735130 HVAC Supplies 0.00 0.00 0.00 0.00 0.00 0.00 30.93 0.00 193.53 0.00 0.00 0.00 224.46735160 Appliances/Equipment -180.49 744.33 -243.43 52.34 50.98 0.00 31.31 0.00 0.00 47.43 0.00 35.24 537.71735200 Interior 0.00 227.92 532.28 25.38 4.09 0.00 250.00 6.29 0.00 47.40 0.00 0.00 1,093.36735240 Exterior 0.00 0.00 0.00 0.00 13.68 0.00 0.00 0.00 67.00 48.07 0.00 0.00 128.75735360 Pool & Spa 415.08 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 110.60 140.52 666.20735370 Pool Supplies 100.69 495.55 0.00 0.00 0.00 0.00 0.00 0.00 0.00 155.78 594.99 19.16 1,366.17735380 Lighting 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 54.17 72.57 0.00 126.74735400 Recreational Facilities 0.00 398.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 398.00735440 Lawn Sprinkler/Irrigation 0.00 799.71 388.73 0.00 0.00 0.00 0.00 0.00 225.12 0.00 57.72 79.59 1,550.87735520 Windows/Screens/Doors 602.12 1,347.34 133.07 0.00 225.49 0.00 13.23 43.28 41.18 196.84 115.53 0.00 2,718.08735530 Door Repairs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 52.62 190.65 0.00 102.12 345.39735560 General Supplies -1,500.00 248.80 0.00 14.73 0.00 0.00 126.42 200.86 0.00 24.83 0.00 0.00 -884.36735580 Tools/Equipment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 28.34 0.00 0.00 53.01 81.35735640 Cleaning & Supplies -1,642.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,642.00735650 Water Extraction 0.00 0.00 329.39 0.00 85.00 0.00 0.00 384.04 0.00 0.00 0.00 0.00 798.43735680 Fire/Life Safety -750.00 0.00 602.87 0.00 0.00 194.48 0.00 0.00 30.25 0.00 0.00 1,000.98 1,078.58735685 Safety Tool

Equipment/Rep/Sup0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.39 0.00 0.00 2.39

735690 Countertop/Kitchen Repairs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 31.38 0.00 0.00 31.38735700 Bathroom Repairs 0.00 0.00 0.00 55.66 0.00 0.00 0.00 18.24 63.15 211.51 65.31 52.51 466.38735800 Painting Supplies 0.00 115.28 0.00 16.83 63.26 0.00 0.00 0.00 26.65 7.21 54.12 6.53 289.88735810 Locks & Keys 0.00 27.16 31.43 124.87 0.00 287.88 0.00 0.00 0.00 535.26 10.21 54.97 1,071.78735880 Other 0.00 109.06 0.00 273.76 0.00 1,043.02 -33.97 0.00 0.00 0.00 29.97 561.15 1,982.99735990 Total Repairs & Maintenance -2,893.83 5,916.85 2,900.00 784.88 700.49 1,525.38 1,054.16 1,057.88 1,304.28 1,666.50 1,383.41 2,310.47 17,710.47

740000 Leasing & Marketing740025 Lead2Lease 119.00 -119.00 0.00 0.00 476.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 476.00740100 Apartment Guide/Magazine 0.00 0.00 0.00 0.00 450.00 0.00 900.00 450.00 450.00 450.00 450.00 450.00 3,600.00740250 Collateral Materials 0.00 203.15 0.00 383.28 0.00 20.86 0.00 0.00 0.00 0.00 80.03 0.00 687.32740300 Banners/Flags 969.01 896.00 0.00 14.26 42.15 0.00 0.00 0.00 0.00 0.00 294.10 0.00 2,215.52





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Jul 2008 Aug 2008 Sep 2008 Oct 2008 Nov 2008 Dec 2008 Jan 2009 Feb 2009 Mar 2009 Apr 2009 May 2009 Jun 2009 Total740350 Signage 174.00 0.00 0.00 0.00 147.10 0.00 0.00 12.95 0.00 0.00 0.00 0.00 334.05740400 Model Furniture 487.64 233.82 0.00 0.00 0.00 -108.09 0.00 0.00 0.00 0.00 0.00 0.00 613.37740500 Promotions 0.00 1,000.00 0.00 0.00 0.00 24.20 -24.20 0.00 24.20 0.00 0.00 0.00 1,024.20740550 Prospect Refreshments 0.00 0.00 0.00 28.86 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 28.86740600 Resident Functions/Parties 0.00 0.00 0.00 0.00 0.00 0.00 0.00 62.29 0.00 0.00 0.00 0.00 62.29740650 Resident Referral 0.00 0.00 0.00 0.00 1,000.00 1,000.00 0.00 0.00 0.00 0.00 0.00 100.00 2,100.00740700 Locator/Broker Fees 0.00 0.00 299.00 0.00 0.00 0.00 0.00 299.00 0.00 0.00 0.00 0.00 598.00740750 Mkt Studies/Shopper Rpts 0.00 215.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 105.00 0.00 320.00740850 Resident Retention 0.00 430.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 37.28 0.00 -233.83 233.45740900 Other Adv/Internet/Website 0.00 0.00 125.00 0.00 426.75 813.00 -88.00 750.00 525.00 325.00 310.00 425.00 3,611.75740950 Other Marketing 0.00 0.00 0.00 0.00 0.00 119.00 511.79 64.12 0.00 0.00 13.82 0.00 708.73740990 Total Leasing & Marketing 1,749.65 2,858.97 424.00 426.40 2,542.00 1,868.97 1,299.59 1,638.36 999.20 812.28 1,252.95 741.17 16,613.54

745000 General & Administrative745040 Telephone 516.58 197.94 237.76 0.00 602.32 130.96 0.00 340.07 57.04 166.07 134.79 117.84 2,501.37745050 Cell Phone -225.00 0.00 9.10 525.00 85.70 0.00 46.47 405.57 51.60 103.32 46.46 96.73 1,144.95745060 Internet Service 0.00 0.00 0.00 0.00 0.00 0.00 0.00 334.34 76.37 149.37 130.70 130.65 821.43745120 Pagers/Beepers -90.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -90.00745160 Employee Recruiting 153.00 0.00 0.00 0.00 0.00 153.00 -153.00 0.00 0.00 153.00 0.00 0.00 306.00745200 Training & Education 51.00 0.00 118.92 8.00 248.00 423.78 -340.64 124.00 90.69 0.00 21.00 23.23 767.98745240 Employee Travel/Mileage 0.00 150.00 0.00 75.00 75.00 217.39 0.00 0.00 0.00 0.00 0.00 0.00 517.39745280 Employee Recognition 0.00 0.00 14.68 19.85 0.00 190.67 -10.60 134.21 0.00 338.94 101.98 51.12 840.85745320 Office Supplies 39.00 50.59 226.17 159.71 165.53 65.31 -3.75 220.68 80.56 152.37 291.66 0.00 1,447.83745360 Postal/Express Mail 227.34 129.46 142.55 129.12 129.74 147.86 45.47 146.19 189.28 135.58 97.49 35.16 1,555.24745400 Dues and Subscriptions 42.00 42.00 0.00 0.00 0.00 0.00 245.00 0.00 0.00 0.00 42.00 0.00 371.00745440 Office Equipment 0.00 207.02 225.40 243.48 199.30 211.62 225.40 199.30 199.30 199.30 199.30 199.30 2,308.72745520 Credit Verification Fees 293.83 0.00 72.45 72.45 72.45 72.45 72.45 72.45 72.45 72.45 72.45 72.45 1,018.33745560 Eviction Legal Fees 0.00 0.00 0.00 0.00 0.00 189.00 0.00 169.00 169.00 0.00 0.00 0.00 527.00745600 Gov Licenses Fees/Permits 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.00 0.00 0.00 0.00 0.00 10.00745640 Banking Fees/Charges 0.00 0.00 55.00 0.00 42.43 0.00 0.00 0.00 0.00 1,160.57 0.00 1,173.80 2,431.80745680 Computer Services & Fees -614.00 0.00 0.00 0.00 0.00 615.00 -307.50 2,100.00 328.75 100.00 0.00 100.00 2,322.25745720 Apt Association Dues 0.00 0.00 238.50 0.00 0.00 0.00 0.00 0.00 248.85 0.00 0.00 0.00 487.35745760 Print/Copy/Fax 199.30 0.00 0.00 0.00 81.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 280.80745840 Other G & A 84.00 0.00 0.00 10.00 0.00 -45.00 0.00 0.00 0.00 0.00 0.00 0.00 49.00745990 Total General & Admin. 677.05 777.01 1,340.53 1,242.61 1,701.97 2,372.04 -180.70 4,255.81 1,563.89 2,730.97 1,137.83 2,000.28 19,619.29746990 TOTAL CONTROLLABLE

EXPENSES30,176.86 38,522.86 23,660.51 22,001.17 19,748.66 23,486.49 22,951.51 33,073.07 22,312.67 27,512.73 22,846.51 23,043.87 309,336.9

1

747000 NON-CONTROLLABLEEXPENSES





03:15 PM


750000 Management Fees750050 Management Fee 2,700.00 2,700.00 2,700.00 2,700.00 2,700.00 2,700.00 2,700.00 2,700.00 2,700.00 2,700.00 2,700.00 0.00 29,700.00750990 Total Management Fees 2,700.00 2,700.00 2,700.00 2,700.00 2,700.00 2,700.00 2,700.00 2,700.00 2,700.00 2,700.00 2,700.00 0.00 29,700.00

755000 Insurance755050 Property 638.75 638.75 638.75 638.75 638.75 638.75 3,430.21 1,479.01 848.82 -117.38 1,197.80 0.00 10,670.96755990 Total Insurance 638.75 638.75 638.75 638.75 638.75 638.75 3,430.21 1,479.01 848.82 -117.38 1,197.80 0.00 10,670.96

760000 Real Estate & Property Taxes760050 Real Estate Property Taxes 3,786.00 3,786.00 2,386.79 3,786.00 3,786.00 3,786.00 3,786.00 3,786.00 3,559.11 3,786.00 3,786.00 0.00 40,019.90760150 Tax Service Consultants 0.00 0.00 0.00 0.00 323.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 323.00760990 Total Real Estate & Prop

Tax3,786.00 3,786.00 2,386.79 3,786.00 4,109.00 3,786.00 3,786.00 3,786.00 3,559.11 3,786.00 3,786.00 0.00 40,342.90

772990 TOTAL NON-CONTROLLABLE EXP

7,124.75 7,124.75 5,725.54 7,124.75 7,447.75 7,124.75 9,916.21 7,965.01 7,107.93 6,368.62 7,683.80 0.00 80,713.86

773990 TOTAL OPERATINGEXPENSES

37,301.61 45,647.61 29,386.05 29,125.92 27,196.41 30,611.24 32,867.72 41,038.08 29,420.60 33,881.35 30,530.31 23,043.87 390,050.77

774990 NET OPERATING INCOME 21,575.14 15,234.36 44,068.11 43,070.48 51,623.41 44,786.53 42,691.72 37,902.23 46,377.71 42,186.08 44,121.14 57,308.88 490,945.79

774995 OTHER NON-OPERATING/CAPITAL EXP.

775000 Interest-Mrtg Encumbrance775011 Interest Expense 21,326.46 21,289.37 21,166.20 28,211.03 25,075.06 19,394.02 0.00 12,375.09 25,041.83 13,061.45 13,061.45 0.00 200,001.9

6775050 1st Mortgage Note 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 13,017.56 13,017.56775990 Total Interest-Mort Encumb 21,326.46 21,289.37 21,166.20 28,211.03 25,075.06 19,394.02 0.00 12,375.09 25,041.83 13,061.45 13,061.45 13,017.56 213,019.5

2

776000 Non-Routine Maintenance776150 Furniture & Fixtures 0.00 0.00 0.00 0.00 -200.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -200.00776255 Vinyl Replacement 0.00 0.00 0.00 0.00 0.00 0.00 0.00 132.95 0.00 0.00 0.00 0.00 132.95776990 Total Non-Routine Maint 0.00 0.00 0.00 0.00 -200.00 0.00 0.00 132.95 0.00 0.00 0.00 0.00 -67.05

781000 Professional/Partnership Exp781100 Partnership Accounting 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,150.00 0.00 0.00 1,150.00781230 Asset Management Fee 1,160.00 1,160.00 1,160.00 1,160.00 1,160.00 1,160.00 0.00 0.00 1,511.00 0.00 0.00 4,752.69 13,223.69781990 Total Prof/Partnership Exp 1,160.00 1,160.00 1,160.00 1,160.00 1,160.00 1,160.00 0.00 0.00 1,511.00 1,150.00 0.00 4,752.69 14,373.69





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790000 Make-a-difference CenterExpense

790188 Supplies 0.00 448.45 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 448.45790199 Total Make-a-difference

Center Expense0.00 448.45 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 448.45

920000 Capitalized Expenditures920420 Unit Carpet Replacement 0.00 -4,581.15 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -4,581.15920430 Unit Vinyl Replacement 0.00 -3,640.65 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -3,640.65920990 Total Cap. Expenditure 0.00 -8,221.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -8,221.80990990 TOTAL OTHER NON-

OPERATING/CAPITAL EXP.22,486.46 14,676.02 22,326.20 29,371.03 26,035.06 20,554.02 0.00 12,508.04 26,552.83 14,211.45 13,061.45 17,770.25 219,552.8

1999990 NET INCOME -911.32 558.34 21,741.91 13,699.45 25,588.35 24,232.51 42,691.72 25,394.19 19,824.88 27,974.63 31,059.69 39,538.63 271,392.9

8





03:15 PM

Rent RollThe Flats at Sky Village (fka Ralston Valley) (13007)As of: 06/15/2009

Page 1

OtherDeposits Move out Balance

MarketRent

UnitSq Ft

ResidentDepositNameResidentUnit typeUnit

LeaseExpirationMove In

ActualRent

Current/Notice Residents

0001 izb2.1 t0366606 Matthew/Rachel Bozeman/Klohr896 824.00 775.00 300.00 200.00 0.0007/03/2008 10/31/2009

0002 izb1.1 t0377940 Rosemary Wildeman890 785.00 775.00 300.00 0.00 0.0008/30/2008 08/31/2009

0003 izb2.1 t0479443 Pat Duffy896 799.00 800.00 0.00 0.00 0.0005/09/2009 05/31/2010

0004 izb1.1 iz000004 Leonid/Vira Verlan890 760.00 750.00 300.00 0.00 0.0005/03/2007 06/30/2010

0005 izb2.1 iz000005 Jennifer/Bryce Norman/Chrenshaw896 799.00 735.00 300.00 0.00 0.0008/24/2007 10/31/2009

0006 izb1.1 iz000006 Richard Gibson890 760.00 735.00 300.00 200.00 0.0010/27/2007 10/31/2009

0007 izb1.1 iz000007 Nikolay/Klara *Repnitsky890 785.00 199.00 300.00 0.00 0.0004/01/2007 03/31/2010

0008 iza1.1 iz000008 John Basavan610 660.00 660.00 300.00 0.00 0.0005/01/2002 11/30/2009

0009 izb1.1 t0374404 Jackie Scott890 760.00 750.00 300.00 0.00 0.0008/11/2008 09/30/2009

0010 izb1.1 iz000010 Patricia *Conroy890 760.00 94.00 300.00 0.00 0.0003/01/2007 02/28/2010

0011 izb1.1 VACANT VACANT890 760.00 0.00 0.00 0.00 0.00

0012 izb1.1 t0378432 Ian/Shawn Wright/Urban890 760.00 750.00 300.00 100.00 0.0009/06/2008 09/30/2009

0013 izb1.1 t0360026 Meaghan/Chris Vari/Peterson890 785.00 735.00 300.00 200.00 0.0007/10/2008 07/31/2009

0014 izb2.1 t0382403 Katie Richardson896 824.00 800.00 200.00 0.00 0.0010/17/2008 10/31/2009

0015 izb1.1 t0477101 Lenny Vigil890 760.00 770.00 200.00 0.00 0.0004/17/2009 01/16/2010

0016 izb2.1 t0462871 Alexa Beaman896 799.00 785.00 200.00 200.00 0.0002/14/2009 09/13/2009

0017 izb1.1 t0487451 Darcy Garcia890 760.00 760.00 580.00 0.00 0.0005/27/2009 05/31/2010

0018 izb2.1 t0444058 Amy Brandt896 799.00 775.00 200.00 0.00 0.0012/20/2008 12/31/2009

0020 iza1.1 t0379540 Josh Pembleton610 635.00 635.00 300.00 0.00 0.0009/06/2008 06/05/2009 06/30/2009

0021 izb2.1 iz000021 Teri Castillo896 799.00 720.00 300.00 0.00 0.0008/18/2006 01/31/2010

0022 iza1.1 t0370952 Jeff Foucrier610 635.00 635.00 300.00 0.00 0.0008/15/2008 08/31/2009

0023 izb2.1 iz000023 Vladimar/Liliya *Mikhaylova896 799.00 265.00 300.00 0.00 0.0004/01/2000 03/31/2010

0024 iza1.1 iz000024 Anthony Whiteside610 635.00 635.00 300.00 0.00 0.0003/05/2007 06/30/2009

0025 iza1.1 iz000025 Brian T. Elster610 635.00 615.00 300.00 200.00 0.0006/16/2007 06/30/2009

0026 iza1.1 iz000026 Darin Frahm610 635.00 635.00 250.00 0.00 0.0003/11/1995 09/30/2009

0027 iza1.1 t0474737 Catherine *Nigg610 635.00 137.00 517.50 0.00 0.0005/01/2009 04/30/2010

0028 iza1.1 iz000028 Renee Thomas610 635.00 635.00 300.00 0.00 0.0005/14/2005 09/26/2009

0029 iza1.1 iz000029 Lidiya *Khrestsova610 635.00 126.00 300.00 0.00 0.0005/01/2007 04/30/2010

0030 iza1.1 iz000030 Zoya *Prezhbilova610 635.00 98.00 300.00 0.00 -15.0011/12/2002 05/31/2010

0031 iza1.1 t0353944 William *Taylor610 635.00 137.00 300.00 0.00 0.0004/01/2008 03/31/2010

0032 izb2.1 t0383638 Max/Jamey Cage/Young896 799.00 800.00 200.00 0.00 0.0010/06/2008 11/30/2009

0033 iza1.1 iz000033 Lidiya *Yefremenkova610 635.00 123.00 300.00 0.00 0.0005/01/2006 04/30/2010

0034 izb2.1 iz000034 Maile L./Kathleen Jones/Bommersbach896 799.00 740.00 300.00 200.00 0.0003/11/2006 06/28/2009 08/03/2009

0035 iza1.1 iz000035 James *Boyle610 635.00 121.00 300.00 200.00 -18.0004/15/2002 04/30/2010

0036 izb2.1 t0334733 Clarence/Clarise Maestas/Fox896 799.00 775.00 300.00 200.00 0.0002/01/2008 07/31/2009 08/10/2009

0037 izb2.1 iz000037 Doug/Marjorie Brown896 799.00 760.00 690.00 0.00 0.0010/01/2004 08/07/2010



MarketRent

UnitSq Ft



ActualRent


0038 izb1.1 iz000038 Randy Mielo890 760.00 715.00 699.00 0.00 0.0002/01/2006 04/30/2010

0039 izb2.1 iz000039 Leonid/Vaciliso *Karcha896 799.00 237.00 300.00 0.00 0.0005/01/2002 06/30/2009

0040 izb1.1 iz000040 Viktor/Anna *Pavlov890 760.00 293.00 300.00 0.00 0.0001/01/2006 12/31/2009

0041 izb2.1 t0474231 Lacey & Micah Goshorn/Edwards896 799.00 800.00 200.00 0.00 0.0005/02/2009 03/01/2010

0042 izb1.1 iz000042 Diana Sexton890 760.00 745.00 300.00 0.00 0.0011/25/1997 01/31/2009

0043 iza1.1 iz000043 Yuzik *Pshichenko610 635.00 114.00 300.00 0.00 0.0010/18/2007 10/31/2009

0044 iza1.1 iz000044 Anyat *Krotov610 635.00 123.00 300.00 0.00 0.0005/01/2007 04/30/2010

0045 iza1.1 iz000045 Luydmila *Kovina610 635.00 127.00 300.00 0.00 0.0002/01/2006 01/31/2010

0046 iza1.1 t0446214 Sue Whiting610 635.00 635.00 200.00 0.00 0.0012/31/2008 12/30/2009

0047 iza1.1 iz000047 Jimmy R. Guss610 635.00 635.00 300.00 0.00 0.0011/20/1999 10/31/2009

0048 iza1.1 iz000048 James F Kohler610 635.00 615.00 300.00 0.00 0.0006/01/2006 08/31/2009

0049 iza1.1 iz000049 Kevin Friede610 635.00 635.00 300.00 200.00 0.0009/01/2005 11/30/2009

0050 izb1.1 t0372353 Arielle Andrews890 760.00 750.00 300.00 200.00 0.0008/29/2008 09/30/2009

0051 izb1.1 t0454678 Conor Coughlin890 760.00 750.00 200.00 0.00 0.0002/07/2009 08/06/2009 08/06/2009

0052 izb1.1 t0373707 George Pingarron890 760.00 740.00 300.00 100.00 0.0008/09/2008 10/31/2009

0053 izb1.1 t0374390 Yuriy/Inna Tarasov890 760.00 750.00 300.00 0.00 0.0009/16/2008 07/31/2009

0054 izb1.1 t0461166 Jeramie Gerhardt890 760.00 760.00 960.00 0.00 60.0003/20/2009 12/19/2009

0055 izb1.1 t0481920 Carolyn Harris890 760.00 760.00 200.00 0.00 0.0005/29/2009 11/28/2009

0056 iza1.1 t0366779 Dan Russell610 635.00 635.00 300.00 0.00 0.0007/19/2008 07/31/2009

0057 izb1.1 iz000057 Jason Goetz890 760.00 740.00 300.00 200.00 0.0008/01/2006 08/31/2009

0058 izb1.1 iz000058 Laurie Arndt890 760.00 725.00 300.00 200.00 0.0007/15/2007 07/31/2009 07/31/2009

0059 izb1.1 iz000059 Guo Cai/Chum Jin Chen/Gin890 760.00 750.00 300.00 0.00 0.0008/01/2007 09/30/2009

0060 izb1.1 iz000060 Chor Shing/Tip Lan Ng890 760.00 725.00 300.00 0.00 0.0008/25/2007 08/31/2009

0061 iza1.1 iz000061 Joanne *Cummings610 635.00 160.00 300.00 0.00 0.0009/16/2006 08/31/2009

0062 iza1.1 iz000062 Viktor/Zinayida Tarasov610 635.00 635.00 300.00 0.00 0.0009/01/2006 03/31/2010

0063 iza1.1 iz000063 Dorothy *Symmes610 635.00 129.00 300.00 0.00 0.0003/01/2007 02/28/2010

0064 iza1.1 t0488101 Oleksandr Buksha610 635.00 635.00 517.50 0.00 0.0006/06/2009 06/05/2010

0065 iza1.1 iz000065 Jo Lynn Meacham610 635.00 600.00 300.00 0.00 0.0006/01/1987 10/31/2009

0066 iza1.1 iz000066 Olga *Kuyarova610 635.00 388.00 300.00 0.00 -76.0006/01/2007 06/30/2009


0068 izb2.1 t0367671 Beth Mahoney896 799.00 775.00 300.00 100.00 0.0007/25/2008 07/31/2009 08/09/2009

0069 izb1.1 iz000069 Marlinda Cook890 760.00 735.00 99.00 200.00 0.0007/25/2004 06/30/2009 06/30/2009

0070 izb2.1 t0372046 Joshua/Rachel Ross/Wye896 799.00 795.00 99.00 200.00 0.0008/01/2008 07/31/2009

0071 izb1.1 t0454563 Maine Ardrey890 760.00 750.00 200.00 100.00 0.0001/14/2009 07/13/2009 07/14/2009

0072 izb2.1 iz000072 Xue Zhong Zheng896 799.00 750.00 300.00 0.00 0.0010/01/2007 09/30/2009

0073 izb2.1 t0475579 Joshua Morgan896 799.00 800.00 200.00 0.00 0.0004/11/2009 10/10/2009

0074 iza1.1 iz000074 Tricia S. *Mc Carthy610 635.00 98.00 99.00 0.00 0.0010/01/2004 02/28/2010

0075 izb2.1 t0355897 Sergey Pushkarev896 799.00 775.00 300.00 0.00 0.0005/06/2008 05/31/2009 06/30/2009

0076 izb1.1 iz000076 Volodymyr Kublytskyy890 760.00 735.00 300.00 0.00 0.0003/16/2006 10/31/2009

0077 izb2.1 t0463974 Kurt Speckman896 799.00 785.00 200.00 100.00 0.0003/02/2009 03/31/2010

Rent Roll Monday, June 15, 2009


MarketRent

UnitSq Ft



ActualRent


0078 izb1.1 t0384281 Chris/Ryan Buchholz/Dietz890 760.00 750.00 200.00 0.00 352.5011/01/2008 04/30/2009 06/15/2009

0079 izb1.1 iz000079 Jennifer/Dave (Co-Signer) Cure890 760.00 760.00 300.00 200.00 0.0012/01/2006 11/30/2009

0080 izb1.1 t0382402 Larysa/Leanid Ivanchyk890 760.00 750.00 1,050.00 0.00 0.0010/20/2008 07/31/2009 06/30/2009

0081 izb1.1 iz000081 *Viktor/Lidiya Kublitskiy890 760.00 277.00 300.00 0.00 0.0010/01/2007 09/30/2009

0082 izb1.1 t0383639 Spenser/Mereditth Hill/Murphy890 760.00 760.00 200.00 0.00 0.0010/02/2008 11/30/2009

0083 izb1.1 t0445915 Jose Rivera890 760.00 750.00 200.00 0.00 0.0012/06/2008 05/05/2010

0084 izb1.1 t0442847 James Martin890 760.00 750.00 200.00 0.00 0.0011/12/2008 11/30/2009

0085 izb2.1 t0371258 Adrian/ Janine Teran896 799.00 775.00 300.00 0.00 0.0008/19/2008 03/31/2010

0086 izb1.1 t0367554 Raven/Jonathan Gebhart/Bath890 785.00 745.00 300.00 400.00 0.0006/28/2008 07/31/2009


0088 izb1.1 t0379468 David Barhite890 760.00 750.00 300.00 200.00 0.0009/10/2008 06/30/2009

0089 izb2.1 t0454401 Patti Short896 799.00 775.00 200.00 100.00 0.0002/07/2009 08/06/2009

0090 izb1.1 iz000090 Steadman G O Connor890 760.00 750.00 300.00 0.00 0.0010/01/1998 06/30/2009

0091 izb2.1 iz000091 Ron Johnson896 824.00 750.00 275.00 200.00 0.0005/01/1986 09/30/2009

0092 izb1.1 t0338811 Sandra Wright890 785.00 760.00 300.00 200.00 0.0003/01/2008 11/30/2009

0093 izb2.1 t0440550 Odilia/Jose Villareal896 799.00 775.00 200.00 0.00 0.0012/20/2008 12/31/2009

0094 izb1.1 t0483232 Kendra Miller890 760.00 760.00 200.00 0.00 0.0005/16/2009 12/15/2009

0095 izb2.1 t0372422 Dmitry Leonov896 799.00 795.00 697.50 0.00 194.1308/01/2008 05/31/2009 06/23/2009


0097 iza1.1 t0440808 Chad Harrison610 660.00 660.00 200.00 100.00 0.0012/02/2008 07/01/2009

0098 izb2.1 t0371450 Cody/Lisa Conlan/Coffin896 824.00 825.00 300.00 0.00 885.7803/14/2009 08/31/2009

0099 izb1.1 t0372414 Katherine Cordova890 760.00 750.00 675.00 0.00 0.0008/01/2008 08/31/2009

0100 izb2.1 t0348867 Rita *Alba896 799.00 272.00 300.00 0.00 -36.0003/17/2008 02/28/2010

0101 izb1.1 t0374785 Brett/Phillip Shibao/Suitt890 760.00 750.00 300.00 0.00 0.0008/15/2008 08/31/2009

0102 izb2.1 t0463060 Kristy Gutierrez896 799.00 785.00 200.00 0.00 850.0002/11/2009 08/10/2009

0103 izb1.1 t0366203 Tammy Brown890 785.00 745.00 300.00 100.00 0.0006/28/2008 09/30/2009


0105 izb1.1 t0453751 Chelsey Hall890 760.00 750.00 950.00 0.00 0.0001/16/2009 08/31/2009Future Residents/Applicants

0011 izb1.1 t0487882 Daniela Gonzalez890 760.00 0.00 200.00 0.00 -100.0006/20/2009 04/19/2010

0078 izb1.1 t0483967 Shavonne Cordova890 760.00 0.00 150.00 0.00 0.0007/15/2009 07/14/2010

0080 izb1.1 t0488946 Nick Richards890 760.00 0.00 0.00 0.00 0.0008/01/2009 07/31/2010



MarketRent

UnitSq Ft



ActualRent

80,158 99

53,839.004,456

95.19

4.81

Current/Notice Res.

Future Residents/Applicants

SquareFootage

MarketRent

ActualRent

SecurityDeposit

OtherDeposit

# ofUnits

UnitOccupancy

Occupied Units

Vacant Units

Totals:

61,513.00 30,958.50 4,800.00

0.00 350.00 0.00

73,007.00

84,614 76,846.00 61,513.00 31,308.50 4,800.00 104 100.00

Balance

2,197.41

-100.00

2,097.41

SqFtOccupancy

94.73

5.27

100.00


Sales & Rent ComparablesFlats at Sky Village10304 West 58th PlaceArvada, CO 80004

Mike PPinnacle Real Estate Advisors303-962-9555

MARKET AREA STATISTICS

Year/Quarter: 2010/3All Units - Gross Rents

Number of Properties: 8 Avg Property Grade: 86.436 Sales Statistics(last 5 years)Avg Sales Price/Unit: $64,381

Avg Sales Price/Sq Ft: $83.00Avg Last Sale Date: 04/25/2008

Number of Sales: 7

Average Year Built: 1978 All Units Avg Sq Ft: 750Total Units: 1,168 Vacant Units: 67Total Sq Ft: 876,093 Occupied Units: 1,101

Total Unf Rent: $890,491 Vacancy Rate: 5.74%

Unit Type

(Beds/Baths): Studio 1/1 1/1+ 2/1 2/1+ 3/1 3/1+ 4/1 4/1+ Tot/AvgTotal Units 55 557 0 268 230 7 51 0 0 1,168Total Sq Ft 22,265 339,649 0 226,851 219,756 6,860 60,712 0 0 876,093Unit Ratio 4.7% 47.7% 0.0% 22.9% 19.7% 0.6% 4.4% 0.0% 0.0% 100%

# Unf Units 55 557 0 268 230 7 51 0 0 1,168

Unf Units Sq Ft 22,265 339,649 0 226,851 219,756 6,860 60,712 0 0 876,093Avg Sq Ft 405 610 0 846 955 980 1,190 0 0 750

Avg Lo Unf Rents/Unit $505 $665 $0 $795 $912 $815 $1,255 $0 $0 $762

Avg Lo Unf Rents/Sq Ft $1.25 $1.09 $0.00 $0.94 $0.95 $0.83 $1.05 $0.00 $0.00 $1.02

Avg Hi Unf Rents/Unit $0 $752 $0 $920 $992 $0 $1,416 $0 $0 $873

Avg Hi Unf Rents/Sq Ft $0.00 $1.18 $0.00 $1.03 $0.99 $0.00 $1.14 $0.00 $0.00 $1.14

Avg Hi/Lo Unf Rent $505 $670 $0 $801 $920 $815 $1,274 $0 $0 $769

Avg Hi/Lo Unf/Sq Ft $1.25 $1.10 $0.00 $0.95 $0.96 $0.83 $1.07 $0.00 $0.00 $1.03

Lowest Overall Rent/Unit $485 $565 $0 $565 $675 $815 $785 $0 $0 $485

Lowest Overall Rent/Sq Ft $1.02 $0.86 $0.00 $0.58 $0.75 $0.57 $0.74 $0.00 $0.00 $0.57Highest Overall Rent/Unit $575 $959 $0 $1,017 $1,093 $815 $1,416 $0 $0 $1,416

Highest Overall Rent/Sq Ft $1.45 $1.33 $0.00 $1.14 $1.18 $0.90 $1.14 $0.00 $0.00 $1.45

3Q 2010 © Colorado Apartment Insights 3Q 2010


MARKET AREA STATISTICS

Unit Mix Ratio



MARKET AREA STATISTICSPROPERTY LIST

Property Name Address City State Zip Phone YearBuilt

TotalUnits

PropertyGrade

52nd Marketplace 7797 W. 52nd Ave. Arvada CO 80002 (303) 424-4900 1974 157 67.77Flats at Sky Village 10364 W. 58th Pl. Arvada CO 80004 (303) 423-1253 1970 105 93.44Foothills Park 9750 W. 59th Ave. Arvada CO 80004 (303) 425-7301 1987 219 92.93Kipling Village 4665 Kipling St. Wheat

RidgeCO 80033 (303) 421-5291 1970 109 76.40

Kipling Village II 4635 Kipling St. WheatRidge

CO 80033 (303) 421-5291 1972 190 71.59

Panorama at Arvada Ridge 5654 Kipling Pky. Arvada CO 80002 (303) 940-8900 2005 264 118.00Prospect Pointe 9201 Oberon Rd. Arvada CO 80004 (303) 425-1331 1972 66 66.01Village West 12155 W. 58th Pl. Arvada CO 80004 (303) 422-0729 1972 58 46.84


Listing Broker/Owner BrochureFlats at Sky Village10304 West 58th PlaceArvada, CO 80004

STATEMENT OF INCOME AND EXPENSES


10304 West 58th Place

Arvada, Colorado

Price $8,000,000 Total Units 105 Roof Flat

Per Unit $76,190 Year Built 1959 Const Frame

Per SF $81.63 Building GSF 98,008 Zoning Resdiential

GRM 8.81 Land SF 24,950 Heat Hot Water

Rentable NSF 85,224

Approx. Rent

Sq. Ft. Current Market Current Market

30 610 $638 $625 $19,140 $18,750

46 890 $741 $750 $34,089 $34,500

29 896 $773 $775 $22,415 $22,475

105 812 $720 $721 $75,644 $75,725

Current

RR

Currrent

RR Per Unit Per SF % of EGIOperating Income:

Gross Scheduled Income (GSI) $907,728 $8,645

Less: Vacancy (7%) ($63,541) -$605

Effective Rental Income $844,187 $8,040

Laundry & Vending $5,640 $54

Storage/Pet Rent $10,200 $97

Utility Income $44,436 $423

Misc Income $7,500 $71

Effective Gross Income $911,963 $8,094

Operating Expenses: Annualized Per Unit Per SF % of EGIPayroll $101,665 968 $1.04 11.15%

Utilities $78,302 746 $0.80 8.59%

Repairs and Maintenance $41,799 398 $0.43 4.58%

Leasing and Advertising $16,613 158 $0.17 1.82%

Administrative $19,619 187 $0.20 2.15%

Insurance $10,670 102 $0.11 1.17%

Taxes $40,342 384 $0.41 4.42%

Management $45,598 434 $0.47 5.00%

Office $7,620 73 $0.08 0.84%

Total Operating Expenses $362,228 $3,450 $3.70 39.72%

OPERATING INCOME BEFORE RESERVES $549,735 $0.00 $5.61 60.56%

NET OPERATING INCOME $549,735 $0 $5.61 60.28%

Less: Debt Service ($318,596) ($3,034) ($3.25) -34.94%

DCR 1.73

CASH FLOW BEFORE TAXES (CFBT) $231,138 $0 $2.36 25.35%

CASH ON CASH RETURN 9.67%

(CFBT / Down Payment)

CAPITALIZATION RATE 6.87%

(NOI / Price)

LOAN INFORMATIONPrice: Amortization: 35

29.88% Down: Loan Rate: 4.500%*

Loan Amt Monthly PI: ($26,550)

Monthly Income

PRICE AND PROPERTY DESCRIPTION

Annual

Income Statement

Units Style/Baths

Total/Avg

1 Bed 1 Bath

$5,610,000

ANNUAL INCOME DETAIL

$8,000,000

$2,390,000

2 Bed 1 Bath

Lg 2 Bed 1 Bath

The Information has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified i t and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm

its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not repr esent the current or future performance of the property. The value of this transaction to you depends on tax and

other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a ca reful, independent investigation of the property to determine to your satisfaction the suitability of the property for

your needs.

\ Type Square Feet Status Deposit Misc Charges Current Rent

1 2b1bL 896 leased $775

2 2b1b 890 leased $775

3 2b1bL 896 leased $800

4 2b1b 890 leased $750

5 2b1bL 896 leased $735

6 2b1b 890 leased $735

7 2b1b 890 leased $735

8 1b1b 610 leased $660

9 2b1b 890 leased $750

10 2b1b 890 leased $735

11 2b1b 890 leased $750

12 2b1b 890 leased $750

13 2b1b 890 leased $735

14 2b1bL 896 leased $800

15 2b1b 890 leased $770

16 2b1bL 896 VACANT $785

17 2b1b 890 leased $760

18 2b1bL 896 leased $775

19 1b1b 610 OFFICE $635

20 1b1b 610 leased $635

21 2b1bL 896 leased $720

22 1b1b 610 leased $635

23 2b1bL 896 leased $775

24 1b1b 610 leased $635

25 1b1b 610 leased $615

26 1b1b 610 leased $635

27 1b1b 610 leased $635

28 1b1b 610 leased $635

29 1b1b 610 leased $635

30 1b1b 610 leased $635

31 1b1b 610 leased $635

32 2b1bL 896 leased $800

33 1b1b 610 leased $635

34 2b1bL 896 leased $740

35 1b1b 610 leased $635

36 2b1bL 896 leased $775

37 2b1bL 896 leased $760

38 2b1b 890 leased $715

39 2b1bL 896 leased $775

40 2b1b 890 leased $735

41 2b1bL 896 leased $800

42 2b1b 890 leased $745

43 1b1b 610 leased $635

44 1b1b 610 leased $635

45 1b1b 610 leased $635

46 1b1b 610 leased $635

47 1b1b 610 leased $615

48 1b1b 610 leased $635

49 1b1b 610 leased $750

50 2b1b 890 leased $750

51 2b1b 890 leased $740

52 2b1b 890 leased $750

53 2b1b 890 leased $760

54 2b1b 890 leased $635

55 2b1b 890 leased $740

56 1b1b 610 leased $725

57 2b1b 890 leased $740

Rent Roll feb 2008


10304 West 58th Place

Arvada, Colorado

58 2b1b 890 leased $725

59 2b1b 890 leased $745

60 2b1b 890 leased $725

61 1b1b 610 leased $615

62 1b1b 610 leased $615

63 1b1b 610 leased $615

64 1b1b 610 leased $635

65 1b1b 610 leased $600

66 1b1b 610 leased $615

67 2b1b 890 leased $735

68 2b1bL 896 leased $775

69 2b1b 890 leased $735

70 2b1bL 896 leased $795

71 2b1b 890 leased $750

72 2b1bL 896 leased $750

73 2b1bL 896 leased $775

74 1b1b 610 leased $625

75 2b1bL 896 leased $775

76 2b1b 890 leased $735

77 2b1bL 896 VACANT $775

78 2b1b 890 leased $750

79 2b1b 890 leased $699

80 2b1b 890 leased $750

81 2b1b 890 leased $735

82 2b1b 890 leased $750

83 2b1b 890 leased $750

84 2b1b 890 leased $750

85 2b1bL 896 leased $775

86 2b1b 890 leased $745

87 2b1bL 896 leased $775

88 2b1b 890 leased $750

89 2b1bL 896 leased $775

90 2b1b 890 leased $750

91 2b1bL 896 leased $750

92 2b1b 890 leased $725

93 2b1bL 896 leased $775

94 2b1b 890 leased $750

95 2b1bL 896 leased $795

96 2b1b 890 leased $750

97 1b1b 610 leased $660

98 2b1bL 896 leased $775

99 2b1b 890 leased $750

100 2b1bL 896 leased $750

101 2b1b 890 leased $750

102 2b1bL 896 leased $785

103 2b1b 890 leased $745

104 2b1b 890 leased $735

105 2b1b 890 leased $750

Total 105 85224 0 $75,644

UNITS TYPE SQ FT Current Average Montly Income Annual Income

30 1b1b 610 $638 $19,140 $229,680

46 2b1b 890 $741 $34,089 $409,068

29 2b1bL 896 $773 $22,415 $268,980

105 $75,644 $907,728

Vacant 2 1.90%

Leased 102 97.14%

Denver Average Expenses 2010Flats at Sky Village10304 West 58th PlaceArvada, CO 80004

Apartment Operating Expenses

Communities Over 50 Units

in the

Denver Metropolitan Area

Prepared on

May 24, 2010

Prepared by

Cary W. Bruteig, MAI, CRE

Apartment Appraisers & Consultants, Inc.

900 E. Louisiana Avenue, Suite 110

Denver, Colorado 80210

303-722-4222

Price $150.00

How Expenses Are Classified Administration: Advertising and promotion Leasing office costs such as: Marketing Telephone Office supplies Postage Copier Legal accounting Referral fees Model units Insurance:

Property insurance includes extended coverage on buildings, contents and general business liability.

Maintenance and Repair: General Maintenance and repairs Maintenance contracts Trash removal Cleaning supplies Grounds maintenance Snow removal Contracts – all other services Management: Fees for offsite property management. Payroll: Salaries for onsite leasing agents, maintenance personnel and janitors. Payroll taxes Health insurance Employee occupied apartment units (at market rent) Leasing commissions Real Estate Taxes: Yearly property taxes Personal property taxes Utilities: Gas Electric Water and sewer fees Exterior lighting Heating of vacant apartment units Utilities for laundry rooms and management office

These expenses are gross, not net. Reimbursements are classibied as Other Income.

Comparable Expenses - 1960's Construction, Denver Metro AreaRec. No. Avg Ins. Mgmt Gas/ Water Total Total Total No. YOC Units Size Admin Insur. /SF Maint. Mgmt. % EGI Payroll Taxes Utilities Elec. /Sew. Per Unit Per SF % EGI0091 1961 115 708 $754 $176 $0.25 $614 $161 2.5% $1,460 $489 $842 $582 $260 $4,496 $6.35 69.7%0187 1969 320 842 $276 $104 $0.12 $453 $258 3.5% $837 $507 $988 $397 $591 $3,422 $4.06 46.4%0229 1968 70 1,121 $113 $204 $0.18 $471 $264 4.9% $341 $340 $622 $549 $73 $2,355 $2.10 43.9%0273 1962 170 671 $675 $173 $0.26 $677 $288 3.9% $1,296 $234 $934 $673 $261 $4,277 $6.37 58.0%0336 1965 60 604 $521 $243 $0.40 $471 $643 6.9% $1,708 $286 $805 $643 $162 $4,676 $7.74 50.1%0427 1968 240 699 $334 $125 $0.18 $531 $249 3.9% $1,228 $492 $1,088 $557 $531 $4,047 $5.79 64.2%0435 1961 90 550 $818 $159 $0.29 $606 $348 5.8% $1,173 $255 $868 $671 $197 $4,228 $7.68 70.1%0495 1969 100 849 $920 $283 $0.33 $1,181 $466 4.9% $1,468 $492 $1,095 $667 $427 $5,905 $6.95 62.5%0528 1962 140 829 $265 $221 $0.27 $448 $234 3.0% $1,212 $243 $1,166 $3,789 $4.57 48.6%0642 1969 120 503 $319 $176 $0.35 $557 $298 4.1% $956 $286 $526 $319 $208 $3,120 $6.20 42.6%1535 1961 110 763 $317 $326 $0.43 $493 $296 4.0% $655 $249 $1,071 $3,406 $4.46 45.8%

Minimum 1961 60 503 $113 $104 $0.12 $448 $161 2.5% $341 $234 $526 $319 $73 $2,355 $2.10 42.6%Median 1965 115 708 $334 $176 $0.27 $531 $288 4.0% $1,212 $286 $934 $582 $260 $4,047 $6.20 50.1%Average 1965 140 740 $483 $199 $0.28 $591 $319 4.3% $1,121 $352 $910 $562 $301 $3,975 $5.66 54.7%Maximum 1969 320 1,121 $920 $326 $0.43 $1,181 $643 6.9% $1,708 $507 $1,166 $673 $591 $5,905 $7.74 70.1%

Prepared by Apartment Appraisers & Consultants, 5/2010. No. of units has been rounded to protect confidentiality.Data from 2007 to 2009 actual statements and budgets.

Comparable Expenses - 1970's Construction, Denver Metro AreaRec. No. Avg Ins. Mgmt Gas/ Water Total Total Total No. YOC Units Size Admin Insur. /SF Maint. Mgmt. % EGI Payroll Taxes Utilities Elec. /Sew. Per Unit Per SF % EGI0320 1974 320 599 $441 $234 $0.39 $669 $399 5.0% $1,174 $329 $569 $373 $196 $3,815 $6.37 47.8%0118 1974 160 653 $592 $163 $0.25 $569 $245 3.0% $1,039 $476 $608 $477 $131 $3,692 $5.65 45.7%0473 1973 230 678 $398 $376 $0.55 $899 $320 4.0% $899 $481 $1,303 $4,676 $6.90 58.5%0466 1970 280 714 $419 $343 $0.48 $709 $235 3.0% $1,011 $303 $1,065 $853 $212 $4,085 $5.72 52.7%0569 1976 530 729 $491 $231 $0.32 $889 $413 4.9% $1,103 $356 $727 $502 $226 $4,210 $5.78 50.1%0112 1972 350 757 $412 $145 $0.19 $577 $203 2.7% $1,087 $322 $823 $560 $263 $3,568 $4.71 47.7%0478 1972 210 807 $498 $200 $0.25 $702 $379 4.3% $1,085 $386 $524 $146 $379 $3,774 $4.67 42.5%0250 1970 100 814 $362 $96 $0.12 $501 $312 4.2% $1,349 $425 $539 $454 $84 $3,584 $4.41 48.0%0582 1973 270 818 $531 $158 $0.19 $760 $306 3.9% $1,094 $277 $1,230 $677 $553 $4,356 $5.33 55.9%0708 1972 190 823 $600 $175 $0.21 $1,197 $480 3.7% $1,455 $711 $695 $435 $260 $5,314 $6.46 40.8%0205 1973 325 830 $479 $154 $0.19 $604 $283 3.0% $1,055 $274 $1,581 $1,096 $485 $4,429 $5.34 46.7%0025 1972 100 907 $408 $347 $0.38 $924 $219 3.0% $1,137 $381 $1,442 $882 $560 $4,857 $5.36 65.9%0400 1979 140 910 $542 $211 $0.23 $890 $345 3.5% $1,395 $599 $275 $165 $110 $4,257 $4.68 43.5%0037 1970 600 933 $541 $89 $0.10 $792 $235 2.8% $1,387 $313 $922 $258 $664 $4,279 $4.59 51.1%0549 1977 190 943 $667 $189 $0.20 $1,253 $379 3.5% $1,007 $594 $1,046 $510 $536 $5,135 $5.44 46.8%0553 1973 270 1,063 $551 $180 $0.17 $1,157 $440 3.5% $843 $585 $1,360 $602 $757 $5,117 $4.82 40.3%

Minimum 1970 100 599 $362 $89 $0.10 $501 $203 2.7% $843 $274 $275 $146 $84 $3,568 $4.41 40.3%Median 1973 250 816 $495 $185 $0.22 $776 $316 3.5% $1,091 $384 $873 $502 $263 $4,268 $5.35 47.8%Average 1973 267 811 $496 $206 $0.26 $818 $325 3.6% $1,133 $426 $919 $533 $361 $4,322 $5.39 49.0%Maximum 1979 600 1,063 $667 $376 $0.55 $1,253 $480 5.0% $1,455 $711 $1,581 $1,096 $757 $5,314 $6.90 65.9%


Comparable Expenses - 1980's Construction, Denver Metro AreaRec. No. Avg Ins. Mgmt Gas/ Water Total Total Total No. YOC Units Size Admin Insur. /SF Maint. Mgmt. % EGI Payroll Taxes Utilities Elec. /Sew. Per Unit Per SF % EGI0542 1984 220 657 $510 $144 $0.22 $1,185 $358 4.6% $1,287 $563 $381 $84 $297 $4,428 $6.74 57.2%0005 1987 320 686 $518 $206 $0.30 $648 $437 4.9% $1,074 $797 $423 $117 $306 $4,103 $5.98 46.0%0315 1982 380 759 $461 $141 $0.19 $789 $394 5.0% $986 $368 $778 $227 $551 $3,917 $5.16 49.4%0067 1987 190 774 $543 $166 $0.21 $398 $212 2.8% $1,380 $370 $1,027 $655 $373 $4,097 $5.30 54.8%0288 1984 320 779 $151 $114 $0.15 $637 $318 4.0% $1,108 $356 $483 $86 $397 $3,166 $4.07 39.7%0146 1984 330 791 $162 $121 $0.15 $558 $220 2.5% $1,194 $573 $448 $103 $345 $3,275 $4.14 37.3%0073 1987 480 793 $277 $165 $0.21 $612 $245 3.0% $1,205 $328 $668 $182 $487 $3,501 $4.42 42.5%0068 1984 660 820 $259 $124 $0.15 $433 $146 3.2% $579 $271 $570 $250 $320 $2,382 $2.91 52.4%0050 1980 430 850 $572 $129 $0.15 $843 $231 3.0% $1,052 $301 $639 $256 $384 $3,768 $4.43 48.9%0386 1986 400 856 $451 $254 $0.30 $423 $368 4.0% $959 $495 $564 $106 $458 $3,513 $4.10 38.3%0075 1986 190 871 $379 $42 $0.05 $469 $322 4.0% $706 $733 $457 $275 $182 $3,109 $3.57 38.7%0035 1986 290 885 $186 $165 $0.19 $618 $333 4.0% $1,224 $440 $667 $124 $543 $3,633 $4.10 43.6%0535 1980 350 921 $467 $112 $0.12 $540 $251 2.7% $1,344 $301 $1,021 $686 $336 $4,037 $4.38 43.2%0084 1984 260 925 $425 $127 $0.14 $632 $315 3.3% $1,132 $613 $781 $272 $509 $4,025 $4.35 42.2%

Minimum 1980 190 657 $151 $42 $0.05 $398 $146 2.5% $579 $271 $381 $84 $182 $2,382 $2.91 37.3%Median 1984 325 807 $438 $135 $0.17 $615 $317 3.6% $1,120 $405 $605 $205 $379 $3,701 $4.37 43.4%Average 1984 344 812 $383 $144 $0.18 $628 $296 3.6% $1,088 $465 $636 $245 $392 $3,640 $4.55 45.3%Maximum 1987 660 925 $572 $254 $0.30 $1,185 $437 5.0% $1,380 $797 $1,027 $686 $551 $4,428 $6.74 57.2%


Comparable Expenses - 1990's Construction, Denver Metro AreaRec. No. Avg Ins. Mgmt Gas/ Water Total Total Total No. YOC Units Size Admin Insur. /SF Maint. Mgmt. % EGI Payroll Taxes Utilities Elec. /Sew. Per Unit Per SF % EGI0665 1990 170 846 $397 $157 $0.18 $507 $549 5.0% $1,080 $666 $731 $189 $542 $4,087 $4.83 36.9%1087 1998 240 878 $660 $149 $0.17 $626 $351 3.0% $1,399 $770 $381 $273 $108 $4,337 $4.94 36.8%1092 1998 330 896 $440 $108 $0.12 $767 $302 2.8% $1,317 $692 $556 $242 $315 $4,183 $4.67 39.2%1153 1999 350 897 $464 $185 $0.21 $412 $272 2.8% $1,019 $913 $609 $256 $352 $3,874 $4.32 40.2%1157 1999 370 902 $403 $182 $0.20 $393 $276 2.8% $1,167 $965 $607 $251 $355 $3,993 $4.42 40.5%1142 1999 310 922 $484 $191 $0.21 $520 $274 2.8% $850 $1,073 $611 $170 $440 $4,003 $4.34 40.2%1054 1998 230 924 $604 $197 $0.21 $1,027 $407 3.5% $1,249 $878 $715 $306 $409 $5,077 $5.49 43.0%0987 1996 340 958 $524 $124 $0.13 $626 $309 2.9% $1,280 $778 $560 $253 $307 $4,202 $4.39 39.3%1056 1998 450 980 $362 $127 $0.13 $596 $301 2.9% $1,302 $573 $509 $150 $359 $3,770 $3.85 36.6%4378 1997 600 1,019 $351 $185 $0.18 $1,394 $489 3.7% $1,317 $830 $431 $113 $318 $4,997 $4.91 37.7%1137 1999 510 1,029 $298 $214 $0.21 $729 $440 3.7% $1,035 $1,081 $543 $4,341 $4.22 36.9%4377 1996 600 1,037 $357 $185 $0.18 $1,398 $502 3.7% $1,340 $834 $456 $141 $315 $5,072 $4.89 37.3%0714 1994 290 1,060 $460 $229 $0.22 $1,038 $368 2.9% $1,203 $622 $602 $446 $156 $4,522 $4.27 35.6%4375 1995 330 1,097 $438 $193 $0.18 $918 $542 3.7% $1,605 $803 $539 $218 $321 $5,038 $4.59 33.9%

Minimum 1990 170 846 $298 $108 $0.12 $393 $272 2.8% $850 $573 $381 $113 $108 $3,770 $3.85 33.9%Median 1998 335 941 $439 $185 $0.18 $678 $360 3.0% $1,265 $817 $558 $242 $321 $4,270 $4.51 37.5%Average 1997 366 960 $446 $173 $0.18 $782 $384 3.3% $1,226 $820 $561 $231 $331 $4,393 $4.58 38.2%Maximum 1999 600 1,097 $660 $229 $0.22 $1,398 $549 5.0% $1,605 $1,081 $731 $446 $542 $5,077 $5.49 43.0%


Comparable Expenses - 2000's Construction, Denver Metro AreaRec. No. Avg Ins. Mgmt Gas/ Water Total Total Total No. YOC Units Size Admin Insur. /SF Maint. Mgmt. % EGI Payroll Taxes Utilities Elec. /Sew. Per Unit Per SF % EGI

1215 2001 170 845 $514 $207 $0.25 $769 $327 4.3% $909 $884 $488 $4,098 $4.85 53.7%1343 2002 250 901 $656 $121 $0.13 $579 $288 2.8% $1,430 $574 $648 $267 $381 $4,297 $4.77 41.8%1344 2002 230 909 $620 $153 $0.17 $961 $297 3.0% $1,410 $715 $565 $223 $341 $4,721 $5.19 46.8%1240 2001 290 926 $570 $197 $0.21 $526 $279 2.7% $838 $1,102 $693 $265 $428 $4,205 $4.54 41.2%4310 2009 260 931 $499 $200 $0.21 $443 $221 1.6% $1,176 $777 $324 $3,640 $3.91 26.2%1447 2004 250 939 $726 $161 $0.17 $501 $363 3.0% $1,265 $832 $624 $296 $328 $4,472 $4.76 37.2%1321 2001 220 952 $622 $155 $0.16 $613 $316 3.0% $1,400 $542 $577 $231 $347 $4,226 $4.44 40.3%1238 2000 490 1,000 $328 $97 $0.10 $891 $468 4.0% $1,220 $992 $537 $211 $325 $4,532 $4.53 38.5%

Minimum 2000 170 845 $328 $97 $0.10 $443 $221 1.6% $838 $542 $324 $211 $325 $3,640 $3.91 26.2%Median 2002 250 929 $595 $158 $0.17 $596 $307 3.0% $1,243 $805 $571 $248 $344 $4,262 $4.65 40.8%Average 2003 270 925 $567 $161 $0.18 $660 $320 3.0% $1,206 $802 $557 $249 $358 $4,274 $4.62 40.7%Maximum 2009 490 1,000 $726 $207 $0.25 $961 $468 4.3% $1,430 $1,102 $693 $296 $428 $4,721 $5.19 53.7%


Flats at Sky Village › reiwise_production › market... · Year Built: 1969 FINANCIAL INFORMATION...

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