LoopNet€¦ · income qualifying residents earning no more than 30%, 50%, and 60% of Area Medium Income (AMI) limits, which are provided by the Georgia Housing and Finance Authority

LIHTC Advisors

Whispering Pines Apartments40 Units | 2784 Kelly Lake Road | Decatur, GA 30032

EXCLUSIVE OFFERING

2 LIHTC ADVISORS WHISPERING PINES | 40 UNITS

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Jeff Dilbone Investment Property Advisors513-489-7011 (phone)513-460-1745 (direct)

12639 W. Explorer DriveSuite 200Boise, ID 83713

Jeff Irish800.840.3021 (phone)208.286.5013 (direct)888.506.2771 (fax)[email protected]

Jordan Skyles800.840.3021 (phone)208.631.4981 (direct)888.506.2771 (fax)[email protected]

John Nicolas800.840.3021 (phone)208.891.8901 (direct)888.506.2771 (fax)[email protected]

www.lihtcadvisors.com

LIHTC Advisors


Whispering Pines Apartments

40 Units 2784 Kelly Lake Road

Decatur, GA 30032

Table of Contents

PROPERTY OVERVIEW

DescriptionArea Highlights

Market HighlightsSummary

Area Maps

FINANCIAL ANALYSIS

Executive SummaryIncome & Expenses

Cash Flow SummaryUnit Mix

Income & Rent LimitsHistorical AMI, MAX Rent, & FMR

COMPARABLE PROPERTIES

Rent Comparables MapRental & Occupancy Statistics

Rent Comparable Details

DEMOGRAPHIC ANALYSIS

Demographic Analysis


Property Overview

• Located Close to Shopping, Restaurants, and Area Amenities

• Metro Atlanta has the Eighth Largest Economy in the Country and the Third Highest Concentration of Fortune 500 Companies

• High Historical Occupancy with a 2016 Vacancy Rate Below 4%

• Located Just 6 Miles from Downtown Atlanta, GA

HIGHLIGHTS


Property Description

Whispering Pines is a 40-unit LIHTC property located in Decatur, GA. The property offers a mix of spacious one and two bedroom floor plans to income qualifying residents. The property is conveniently located close to shopping, restaurants, entertainment, and area amenities.

Whispering Pines was built in 1965 and rehabbed and placed in service in 2006 under the Section 42 Low-Income Housing Tax Credit (LIHTC) program. There is an existing regulatory agreement in place which requires 31 units to be rented to income qualifying residents earning no more than 30%, 50%, and 60% of Area Medium Income (AMI) limits, which are provided by the Georgia Housing and Finance Authority. The remaining units are to be rented at market rate. The property is still within its initial tax credit compliance period. Please see the Property Summary page and Unit Mix page for further details. A qualified purchaser can be a non-profit or for-profit entity that agrees to maintain the affordability restrictions.

Residents benefit from on-site laundry, a covered outdoor pavilion, business center, fitness center, playground, and an open playing field. Unit amenities include an open floor plan with full appliance package, W/D connections, as well as central air and heat.

COMMUNITY AMENITIES

• Business Center• Covered Pavilion• Fitness Center• On-Site Laundry• Open Playing Field• Playground

UNIT AMENITIES

• Full Appliance Package• W/D Connections• Central Air & Heat


Area Highlights

Decatur is a city in, and the county seat of DeKalb County, Georgia. With a population of 20,148 the municipality is sometimes assumed to be larger since multiple zip codes in the county bear the Decatur name. Decatur is located on the northeastern and southeastern sides of Atlanta, GA and is only 6 miles from downtown Atlanta.

Decatur has a thriving art and festival scene with events running all year long. The Decatur Arts Alliance has worked with the city to install public art around the city, provide gallery space, and supporting arts education throughout the city. Some annual festivals in Decatur include the Decatur Beach Party, concerts on the square, art walks, parades, runs, and races.

Sporting events are available in nearby Atlanta at venues that are accessible from Decatur without having to enter the heart of the city. Professional sports include teams in the MLB, NBA, and NFL. The Atlanta Motor Speedway,

NEIGHBORHOOD AMENITIES

• Kelly Lake Elementary School (0.5 miles)

• The Gallery at South DeKalb (0.9 miles)

• Flat Shoals Elementary School (1.5 miles)

• Georgia Regional Hospital (1.9 miles)

LOCATION HIGHLIGHTS

• Population: 20,148• 6 miles from downtown

Atlanta, GA

TOP EMPLOYERS (NO. EMPLOYEES)

• DeKalb County Government (1,200)• Emory University Health Clinic (600)• Decatur Board of Education (489)• Agnes Scott College (290)• DeVry (290)• City of Decatur (200)

located 30 miles south of downtown Atlanta, is one of the largest and oldest in the country. It hosts two NASCAR Busch and Nextel Cup races each year.

Metro Atlanta is the most populous metro area in the US state of Georgia and the ninth-largest metropolitan statistical area (MSA) in the United States. Its economic, cultural and demographic center is Atlanta, and it had a 2015 estimated population of 5.7 million people according to the U.S. Census Bureau.

With a GDP of $304 billion, the Metro Atlanta economy is the eighth-largest in the country and 17th-largest in the world. Corporate operations play a major role in the economy, as the city claims the country’s third-largest concentration of Fortune 500 companies, and hosts the global headquarters of corporations such as The Coca-Cola Company, The Home Depot, Delta Air Lines, AT&T Mobility, Chick-fil-A, and UPS.


Apartment Market Highlights

Vacancies have compressed and remained between 7-8% for nearly three and a half years while building steadily ramped up. At the beginning of the cycle, the absorption rate at new deliveries averaged 25-30 units per month, with many projects hitting a monthly rate of 35-40 move-ins. Following the surge of apartments in 2015, this rate declined to 22 units per month and minor concessions began to show up, but fundamentals were considered excellent (including record rent growth). In 2016, new deliveries witnessed slightly slower absorption of 19-20 units per month, but concessions steadily increased through the year and averaged about one month free in Q4 2016. Deliveries in the first part of 2017 are seeing sightly lower absorption closer to 16 units per month, but similar concessions. This slowdown is not considered out of the ordinary for a metro that has taken a regular delivery of 0.5% of inventory every quarter since Q3 2014, but does underline issues for construction-heavy submarkets like Buckhead and Downtown/Midtown that are already experiencing volatility in rent growth and vacancy.

VACANCY

SOURCE: CoStar- August 2017

12 month Deliveries in Units 12 month Net Absorption Vacancy Rate 12 month Rent Growth9,703 7,584 8.1% 3.4%

The current vacancy rate and rent growth figures are on decidedly better footing than market conditions in 2007-08, the last time this many units were delivered in consecutive years. Another reason to be optimistic about the latest figures is the fact that a significant number of older properties recently started renovations, inflating the current vacancy, and when ready for lease, these rehabbed units will target a different renter from the new 4 & 5 Star supply, limiting competitive overlap. Further, job creation and household growth in Atlanta remain above the national average and are projected to be among the best in the country through 2021. Finally, the home ownership rate is decidedly down compared to its historic average, increasing demand for rental units compared to the previous cycle. So while the days of 6-8% rent growth may be past, the metro is in sound shape as a whole.

OVERVIEW

Rent growth fell for the sixth consecutive quarter through Q1 2017, but remains close to four times the historical average. In a construction-heavy metro like Atlanta, that continued growth is a good indicator of the demand present here. The current rent gains are now being driven by 3 Star and older 4 Star assets, as competition continues to expand among new deliveries offering concessions. Projects in outlying submarkets are also experiencing stronger-than-average rent growth simply because they still represent value for most renters, partially because of relatively limited amounts of new construction outside of the urban core. In basic terms, an overall housing shortage still exists in the Atlanta metro for renters and homeowners alike, pushing housing costs across tenure lines.

RENT


Apartment Market Highlights

Investment in Atlanta has increased steadily since bottoming out in 2009, and 2016 did not disappoint. The sustained performance of multifamily in Atlanta has attracted a steadily growing amount of investment this cycle, with 2016 clearly setting the high-water mark at $8.3 billion. Cap rates remained near 5% for a second consecutive year. Volume through the first half of 2017 is well behind the pace needed to replicate 2016’s figures; however, pricing has continued to edge up.

SALES

ANNUAL JOB GROWTH Atlanta’s economy is producing a lot of new jobs. As a result of its above-average recovery, Atlanta has nearly 200,000 (7.6%) more jobs through 2016 than it did at the height of the last cycle. And figures from the BLS show Atlanta remains out in front of other major metros in regards to its growth rate in the first half of 2017, adding 80,000 net jobs y-o-y through May 2017. One of the biggest drivers of growth has been white-collar employment, especially tech, IT, and R&D positions, with major recent job announcements that include Comcast’s new innovation lab underway in SunTrust Park and a strong presence from the IT operations of GM, Microsoft, and Verizon in North Fulton. More impressively, the growth of tech jobs in Midtown is expected to continue to drive demand for high-end housing, particularly near Tech Square. During the recovery, Atlanta’s concentration of high-tech jobs has increased from about 10% above the US average to more than 20%. The education and health services sector has also fared well and will contribute significantly to economic expansion over the forecast. Emory University Hospital is underway with a new 450,000 SF tower on its Clifton Campus that will complete in 2017. Although some blue-collar sectors such as construction (especially housing-related) and manufacturing are still below prerecession levels, warehouse and distribution employment has bounced back as large companies like Kroger, Smucker’s, and Shaw Industries have expanded their logistics operations presence here.

SOURCE: CoStar- August 2017


NAME & LOCATIONProperty Name Whispering Pines ApartmentsProperty Address 2784 Kelly Lake Road

Decatur, GA 30032

SECTION 42 LIHTC RESTRICTIONSPlaced in Service 2006End of Initial Compliance Period 12/31/2020End of Extended Use Period 12/31/2035

SITE INFORMATIONAssessor’s Parcel Number 15-137-03-005Number of Units 40Number of Buildings 8 (7 apartment buildings & 1 office building)Number of Stories 2Rentable Square Feet 36,000Year Built 1965Rehabbed 2006Lot Size 3.48 AcresDensity 11.49 Units/AcreType of Ownership Fee SimpleLandscaping Mature Landscaping, Trees, and ShrubsTopography Relatively Flat

UTILITIESWater City of AtlantaElectric Georgia Power Co.Gas Atlanta Gas Light Co.

CONSTRUCTIONExterior BrickRoof Asphalt Shingles

# OF UNITS

RENTABLESF

PLACEDIN SERVICE

LOT SIZE

40 36,000 2006 3.48 Acres

Property Summary


Aerial Map


Local Map

Whispering Pines

CVS (0.2 miles)

Wendy’s, Popeye’s, TA New Orleans Seafood (0.3 miles)

Kelly Lake Elementary School (0.5 miles)

Rainbow Village Shopping Center: Fresh Valu Foods, Family Dollar, Chapel Beauty, Church’s Chicken (0.7 miles)

The Gallery at South DeKalb: Macy’s, Foot Locker, Satellite Cinemas, Hollywood Beauty Supply, Champs Sports (0.9 miles)

Big Lots (0.9 miles)

Flat Shoals Elementary School (1.5 miles)

Columbia High School (1.5 miles)

Georgia Regional Hospital (1.9 miles)

Exchange Recreation Center (2.2 miles)

Flat Shoals Library (2.3 miles)

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F

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K

J

H

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B

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Local Map

Rainbow Village Shopping Center

WHISPERING PINES

APARTMENTS

The Gallery at South Dekalb

Columbia High School

Porter Sanford III Performing Arts & Community

Center


Regional Map

• Atlanta, GA (6 miles)

• Brookhaven, GA (8 miles)

• Sandy Springs, GA (16 miles)

• Marietta, GA (26 miles)

• Johns Creek, GA (24 miles)

• McDonough, GA (30 miles)


Financial Analysis

LIST PRICE PRICE/UNIT PRICE/SF PROFORMANOI

PROFORMANOI/UNIT

PROFORMACAP RATE

$1,150,000 $28,750 $31.94 $80,476 $2,012 7.00%


Executive Summary

Name Whispering PinesAddress 2784 Kelly Lake RoadCity, State, Zip Decatur, GA 30032County DeKalb County

Year Built 1965Placed In Service 2006End of Initial Tax Credit Compliance PeriodEnd of LIHTC RestrictionsQualified Contract Eligible No

Total Number of Units 40Net Rentable Square Feet 36,000 SF

PRICING FIGURES - WITH PROPOSED NEW FINANCING

LIST PRICE $1,150,000Price per Unit $28,750Price per SF $31.94

PROFORMA 10-Year All Cash IRR%* 7.91%PROFORMA 10-Year Leveraged Cash IRR%* 13.85%

Closing Cost $11,500Capital Expense $60,000Total Acquisition Cost $1,221,500

FINANCIAL SUMMARY

* IRR Analysis assumes 1.00% in Closing Costs, $1,500 per unit in Capital Expense, 7.25% exit cap, with a 5.00% cost of sale.

PROPERTY INFORMATION

December 31, 2020December 31, 2035


Executive Summary

PROPOSED NEW FINANCING

Program ConventionalLoan to Value % 75.00%Interest Rate 4.40%Interest Only Period (Months) 0Amortization Period (Years) 30

Total Acquisition Cost $1,221,500Loan Amount $862,500Loan Fee @ 1.00% $8,625Down Payment $367,625

Annual Debt Service - P&I $51,829

Year 1 PROFORMA Debt Coverage Ratio 1.55

PROFORMACAP Rate 7.00%NOI $80,476Year 1 Debt Service $51,829Net Cash Flow After Debt Service $28,647Cash on Cash % 7.79%

FINANCING

VITAL DATA


Income & Expenses

OPERATIONAL ANALYSIS YE 2016 PER UNIT T12 June'17 PER UNIT PROFORMA PER UNIT

INCOME

Gross Potential Rent $298,679 $0.69 $306,367 $0.71 $255,550 $0.59Subsidy Income $0 $0.00 $0 $0.00 $63,133 $0.15Gain (Loss) to Lease 0.00% $0 $0 0.00% $0 $0 0.00% $0 $0POTENTIAL RENTAL INCOME $298,679 $7,467 $306,367 $7,659 $318,683 $7,967 (1)% Increase over Prior Year 2.57% 4.02%

Economic LossVacancy Loss 3.38% ($10,094) ($252) 2.60% ($7,951) ($199) 4.00% ($12,747) ($319) (2)Bad Debt 4.90% ($14,633) ($366) 4.44% ($13,603) ($340) 3.00% ($9,560) ($239)Concessions 0.28% ($830) ($21) 0.31% ($948) ($24) 0.00% $0 $0

Total Economic Loss 8.56% ($25,557) ($639) 7.34% ($22,502) ($563) 7.00% ($22,308) ($558)

NET RENTAL INCOME $273,122 $6,828 $283,865 $7,097 $296,375 $7,409

Other IncomeForfeited Security Deposits/Lease Termination $8,710 $218 $9,004 $225 $9,229 $231Late Charges $3,200 $80 $4,500 $113 $4,613 $115Misc. Other Income $1,906 $48 $1,886 $47 $1,933 $48

Total Other Income $13,816 $345 $15,390 $385 $15,775 $394

EFFECTIVE GROSS INCOME $286,938 $7,173 $299,255 $7,481 $312,150 $7,804

EXPENSES

FIXED OPERATIONAL EXPENSETotal Real Estate Property Taxes 6% $15,958 $399 5% $15,779 $394 6% $19,667 $492 (3)Total Property Insurance Expense 4% $12,019 $300 4% $12,019 $300 4% $12,319 $308Total Property Utility Expense 19% $55,365 $1,384 20% $58,759 $1,469 19% $60,228 $1,506

TOTAL FIXED OPERATIONAL EXP 29% $83,342 $2,084 29% $86,557 $2,164 30% $92,215 $2,305

VARIABLE OPERATIONAL EXPENSETotal Maint. Contract Services 6% $16,588 $415 6% $19,289 $482 5% $16,588 $415 (4)Total Repairs & Maintenance 8% $21,991 $550 7% $22,086 $552 7% $22,639 $566Total Administrative Expenses 5% $15,691 $392 6% $19,156 $479 4% $11,835 $296 (5)Total Leasing & Marketing 2% $6,753 $169 2% $6,980 $175 1% $4,000 $100 (6)Total Payroll and Salary Expenses 17% $49,291 $1,232 21% $61,466 $1,537 16% $49,291 $1,232 (7)Property Management Fee 4.92% $14,125 $353 4.97% $14,867 $372 5.00% $15,608 $390Non-Profit Fee 2.61% $7,500 $188 2.51% $7,500 $188 2.40% $7,500 $188 (8)

TOTAL VARIABLE OPERATIONAL EXP 46% $131,939 $3,298 51% $151,344 $3,784 41% $127,460 $3,186

TOTAL FIXED & VARIABLE EXPENSES 75% $215,281 $5,382 79% $237,901 $5,948 70% $219,674 $5,492

Reserves & Replacements $12,000 $300 $12,000 $300 $12,000 $300

TOTAL OPERATING EXPENSES 79% $227,281 $5,682 84% $249,901 $6,248 74% $231,674 $5,792

NET OPERATING INCOME $59,657 $1,491 $49,354 $1,234 $80,476 $2,012


Comments to Income & Expenses

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

REAL ESTATE TAX ANALYSIS

Parcel #: 15-137-03-005

2017 ProformaTotal Market Value $1,019,240 $1,049,817Exemptions $0 $0Value after Exemptions $1,019,240 $1,049,817Assessment Ratio 40.00% 40.00%Assessed Value $407,696 $419,927

Tax Rate 4.419% 4.419%Ad Valorem Taxes $18,016 $18,557Assessments $1,110 $1,110Total Taxes Due $19,126 $19,667

Notes

NOTES TO PROFORMA

Potential Rental Income: 8/3/2017 Rent Roll annualized and increased by 1.0%.

Vacancy: Based on the rent roll from 8/3/17, occupancy is 97.5%. Analysis uses a 4% vacancy factor going forward.

Contract Services: Analysis assumes a return to the expense seen in 2016.

Real Estate Taxes: See notes below.

Administrative: Analysis assumes the removal of all Travel, Conference and Corporate Chargeback expenses.

Payroll & Salary: Analysis assumes a return to the expense seen in 2016.

Non-Profit Fee: The owner is currently paying the non-profit GP an annual fee of $7,500 which is paid in quarterly installments.Analysis assumes new owner will continue paying this fee to meet the non-profit controlling interest requirement.

Leasing & Marketing: Analysis assumes a reduction based on the high occupancy experienced at the property.

Per the County Assessor's, taxes based on 40% of the Market Value.

Analysis assumes that real estate taxes will be based on the 2017 tax expense for the year, but increased by 3%.


PROPERTY CASH FLOW ANALYSIS - ASSUMPTIONS

YEAR 1 OPERATIONS BASED ON Proforma

Gross Potential Rent Growth NA 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25%Other Income Growth NA 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50%Loss to Lease 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Vacancy 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%Bad Debt 3.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%Concessions 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Property Taxes NA 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%Insurance NA 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50%Utilities NA 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50%Property Management Fee 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%Other Expenses NA 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50%Replacement Reserves NA 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

CASH FLOW SUMMARY Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

INCOMEGross Potential Rent $318,683 $325,854 $333,185 $340,682 $348,347 $356,185 $364,199 $372,394 $380,773 $389,340

Gain (Loss) to Lease $0 $0 $0 $0 $0 $0 $0 $0 $0 $0POTENTIAL RENTAL INCOME $318,683 $325,854 $333,185 $340,682 $348,347 $356,185 $364,199 $372,394 $380,773 $389,340

Economic Operational LossVacancy Loss ($12,747) ($13,034) ($13,327) ($13,627) ($13,934) ($14,247) ($14,568) ($14,896) ($15,231) ($15,574)Bad Debt ($9,560) ($6,517) ($6,664) ($6,814) ($6,967) ($7,124) ($7,284) ($7,448) ($7,615) ($7,787)

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Operational Loss ($22,308) ($19,551) ($19,991) ($20,441) ($20,901) ($21,371) ($21,852) ($22,344) ($22,846) ($23,360)

NET RENTAL INCOME $296,375 $306,302 $313,194 $320,241 $327,447 $334,814 $342,347 $350,050 $357,926 $365,980

Total Other Income $15,775 $16,169 $16,573 $16,988 $17,412 $17,848 $18,294 $18,751 $19,220 $19,700

EFFECTIVE GROSS INCOME $312,150 $322,471 $329,767 $337,229 $344,859 $352,662 $360,641 $368,801 $377,146 $385,680

OPERATIONAL EXPENSESFIXED OPERATIONAL EXPENSE

Total Real Estate Property Taxes $19,667 $20,257 $20,865 $21,491 $22,135 $22,799 $23,483 $24,188 $24,914 $25,661Total Property Insurance Expense $12,319 $12,627 $12,943 $13,267 $13,598 $13,938 $14,287 $14,644 $15,010 $15,385Total Property Utility Expense $60,228 $61,734 $63,277 $64,859 $66,481 $68,143 $69,846 $71,592 $73,382 $75,217

TOTAL FIXED OPERATIONAL EXP $92,215 $94,618 $97,085 $99,616 $102,214 $104,880 $107,616 $110,424 $113,306 $116,263

VARIABLE OPERATIONAL EXPENSETotal Maint. Contract Services $16,588 $17,003 $17,428 $17,864 $18,310 $18,768 $19,237 $19,718 $20,211 $20,717Total Repairs & Maintenance $22,639 $23,205 $23,785 $24,379 $24,989 $25,613 $26,254 $26,910 $27,583 $28,272Total Administrative Expenses $11,835 $12,131 $12,434 $12,745 $13,063 $13,390 $13,725 $14,068 $14,420 $14,780Total Leasing & Marketing $4,000 $4,100 $4,203 $4,308 $4,415 $4,526 $4,639 $4,755 $4,874 $4,995Total Payroll and Salary Expenses $49,291 $50,523 $51,786 $53,081 $54,408 $55,768 $57,162 $58,591 $60,056 $61,557Property Management Fee $15,608 $16,124 $16,488 $16,861 $17,243 $17,633 $18,032 $18,440 $18,857 $19,284Non-Profit Fee $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500

TOTAL VARIABLE OPERATIONAL EXP $127,460 $130,585 $133,624 $136,737 $139,928 $143,198 $146,549 $149,982 $153,500 $157,106

TOTAL FIXED & VARIABLE EXPENSE $219,674 $225,203 $230,708 $236,354 $242,143 $248,078 $254,165 $260,406 $266,806 $273,369

Replacement Reserves $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000

TOTAL OPERATING EXPENSES $231,674 $237,203 $242,708 $248,354 $254,143 $260,078 $266,165 $272,406 $278,806 $285,369

PROPERTY NET OPERATING INCOME $80,476 $85,269 $87,059 $88,875 $90,716 $92,583 $94,476 $96,395 $98,340 $100,311

1ST MTG DEBT SERVICE EXPENSESFirst Mortgage Interest $37,667 $37,031 $36,366 $35,672 $34,947 $34,189 $33,397 $32,569 $31,705 $30,801First Mortgage Principal $14,162 $14,798 $15,462 $16,157 $16,882 $17,640 $18,432 $19,260 $20,124 $21,028

TOTAL 1ST MTG DEBT SERVICE $51,829 $51,829 $51,829 $51,829 $51,829 $51,829 $51,829 $51,829 $51,829 $51,829

CASH FLOW AFTER DEBT SERVICE $28,647 $33,440 $35,230 $37,046 $38,887 $40,754 $42,647 $44,566 $46,511 $48,483

DEBT SERVICE COVERAGE RATIO 1.55 1.65 1.68 1.71 1.75 1.79 1.82 1.86 1.90 1.94INDICATED CAPITALIZATION RATE 7.00% 7.41% 7.57% 7.73% 7.89% 8.05% 8.22% 8.38% 8.55% 8.72%

Concessions

Cash Flow


UNIT TYPE SET-ASIDE NUMBER OF UNITS

UNIT SIZE

ASKING RENT

ASKING RENT PSF

MAX TC RENT

CURRENT UA

MAX NET TC RENT

1 BD 1 BTH 30% 1 700 $324 $0.46 $416 $92 $324 1 BD 1 BTH 50% 4 700 $601 $0.86 $693 $92 $601 1 BD 1 BTH 60% 2 700 $650 $0.93 $832 $92 $740 1 BD 1 BTH MARKET 1 700 $700 $1.00 N/A N/A N/A1 BD UNIT TOTAL 8 5,600 $4,728 $4,852 $4,2081 BD UNIT AVG 700 $591 $0.84 $693 $601

2 BD 1.5 BTH 30% 4 950 $389 $0.41 $499 $110 $389

2 BD 1.5 BTH 50% 17 950 $722 $0.76 $832 $110 $722

2 BD 1.5 BTH 60% 3 950 $775 $0.82 $999 $110 $889

2 BD 1.5 BTH MARKET 8 950 $889 $0.94 N/A N/A N/A

2 BD UNIT TOTAL 32 30,400 $23,267 $19,137 $16,497

2 BD UNIT AVG 950 $727 $0.77 $797 $687

TOTAL 40 36,000 $27,995 $23,989 $20,705AVERAGE 900 $700 $0.78 $960 $828* The unit mix above was based on 8/3/2017 Rent Roll.

AFFORDABILITY RESTRICTIONS

LIHTC Regulatory Agreement: 5 units at 30% AMI, 21 units at 50% AMI, 5 units at 60% AMI and the remaining 9 units are unrestricted market rate units, with restrictions running through December 2035. Throughout the Compliance Period, a qualified nonprofit organization shall hold a controlling interest in the Project and five on-going supportive services designed for the physical/social needs of the tenants must be provided.

Unit Mix


Whispering Pines is a Section 42 LIHTC property which means that federal tax credits were given to help finance the property. The property currently is required to hold the maximum rent charged at or below a level considered appropriate for the households that have incomes at or below 30%, 50%, and 60% of the local Area Median Income (AMI) for the county.

DeKalb County Effective Year: 2017

Area Median Income: $69,700

Tax Credit Property Income LimitsINCOME 30% 50% 60%1 Person $15,540 $25,900 $31,0802 Person $17,760 $29,600 $35,5203 Person $19,980 $33,300 $39,9604 Person $22,170 $36,950 $44,3405 Person $23,970 $39,950 $47,9406 Person $25,740 $42,900 $51,4807 Person $27,510 $45,850 $55,020

Tax Credit Maximum Allowable RentsSet Aside Unit

Type # of

UnitsMax Rent UA Max Net

Rent30% 1 BD 1 $416 $92 $324 50% 1 BD 4 $693 $92 $601 60% 1 BD 2 $832 $92 $740 30% 2 BD 4 $499 $110 $389 50% 2 BD 17 $832 $110 $722 60% 2 BD 3 $999 $110 $889

20%

80%

Unit Breakdown By Unit Type

1 BD 2 BD

$591

$727

$601

$687

$0

$100

$200

$300

$400

$500

$600

$700

$800

1 BD 2 BD

Asking Rents to Net Max Tax Credit Rents

Asking Rent Net Max Rent


Max Allowable LIHTC Rent Growth- 2BD/ 60%

Year Rent % Change

2007 $961 -2008 $961 0.00%2009 $996 3.64%2010 $997 0.10%2011 $999 0.20%2012 $999 0.00%2013 $999 0.00%2014 $999 0.00%2015 $999 0.00%2016 $999 0.00%2017 $999 0.00%

5 Yr Avg 0.00%10 Yr Avg 0.39%

$62,000

$64,000

$66,000

$68,000

$70,000

$72,000

$74,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

AMI Growth RateYear AMI % Change

2007 $67,100 -2008 $69,200 3.13%2009 $71,700 3.61%2010 $71,800 0.14%2011 $68,300 (4.87%)2012 $69,300 1.46%2013 $66,300 (4.33%)2014 $64,400 (2.87%)2015 $68,300 6.06%2016 $67,500 (1.17%)2017 $69,700 3.26%

5 Yr Avg 0.19%10 Yr Avg 0.44%

$940

$950

$960

$970

$980

$990

$1,000

$1,010

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

SOURCE: novoco.com

*The high watermark year is 2010 at $71,800


Fair Market RentsYear 1 BD 2 BD

2007 $700 $7792008 $741 $8242009 $789 $8782010 $820 $9122011 $792 $8812012 $757 $8422013 $737 $8742014 $756 $8962015 $773 $9162016 $820 $9492017 $858 $990

$700

$750

$800

$850

$900

$950

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

FMR AveragesYear FMR Avg. % Change

2007 $740 -2008 $783 5.81%2009 $834 6.52%2010 $866 3.90%2011 $837 (3.41%)2012 $800 (4.42%)2013 $806 0.75%2014 $826 2.55%2015 $845 2.24%2016 $885 4.74%2017 $924 4.47%

5 Yr Avg 2.95%10 Yr Avg 2.31%

SOURCE: novoco.com


Rent Comparables

WHISPERING PINESOCCUPANCY

COMPARABLES AVERAGE OCCUPANCY

WHISPERING PINESRENT/SF

COMPARABLES AVERAGE RENT/SF

98% 98% $0.73 $0.91


Rent Comparables Map

C

B

D

E

A

Whispering Pines

Park 35 Apts.A C

B DThornberry Apts.

Columbia Mill Apts.

Magnolia Circle Apts.

Rainbow Forest Apts.E


Occupancy- 98% Average

Rent Per SF- $0.91 Average

Occupancy & Rent per SF

$0.60

$0.65

$0.70

$0.75

$0.80

$0.85

$0.90

$0.95

$1.00

$1.05

$1.10

* A B C D E

80%

82%

84%

86%

88%

90%

92%

94%

96%

98%

100%

* A B C D E

Whispering Pines

Park 35 Apts.A C

B DThornberry Apts.

Columbia Mill Apts.

Magnolia Circle Apts.

Rainbow Forest Apts.E


Rent Comparables

A

Unit Type # of Units Rent SF RentPer SF

1BD 1BTH- 30% 1 $324 700 $0.461BD 1BTH- 50% 4 $601 700 $0.861BD 1BTH- 60% 2 $650 700 $0.931BD 1BTH- MARKET 1 $700 700 $1.002BD 2BTH- 30% 4 $389 950 $0.412BD 1BTH- 50% 17 $722 950 $0.762BD 1BTH- 60% 3 $775 950 $0.822BD 1BTH- MARKET 8 $889 950 $0.94TOTALS/AVG. 40 $700 900 $0.73

*Actual Rent per SF is $0.73 from the 8/3/2017 Rent Roll

2784 Kelly Lake RoadDecatur, GA 30032

WHISPERING PINES 40 UNITS OCCUPANCY: 98% YEAR BUILT: 1965REHABBED: 2006


1BD 1BTH 40 $740 705 $1.05 2BD 1BTH 224 $769 852 $0.90 3BD 1BTH 32 $934 1,260 $0.74 4BD 2BTH 8 $1,019 1,380 $0.74 TOTALS/AVG. 304 $789 890 $0.89

*Tenant pays electric, sewer, & trash utilities3529 Robins Landing Way

Decatur, GA 30032

Distance to Subject: 2.5 miles

PARK 35 304 UNITS OCCUPANCY: 96% YEAR BUILT: 2000


Rent Comparables

C

B


1BD 1BTH 144 $625 575 $1.09 2BD 1BTH 48 $750 715 $1.05 2BD 2BTH 16 $800 765 $1.05 3BD 2BTH 72 $925 815 $1.13 TOTALS/AVG. 280 $734 672 $1.09

*Tenant pays electric utility2435 Aylesbury Loop

Decatur, GA 30034


THORNBERRY 280 UNITS OCCUPANCY: 94% YEAR BUILT: 1972REHABBED: 1997

2239 Flat Shoals RoadAtlanta, GA 30316


COLUMBIA MILL 108 UNITS OCCUPANCY: 98% YEAR BUILT: 2013


1BD 1BTH 28 $799 766 $1.04 2BD 2BTH 44 $999 1,031 $0.97 2BD 2.5BTH 12 $1,099 1,192 $0.92 3BD 2BTH 24 $1,199 1,235 $0.97 TOTALS/AVG. 108 $1,003 1,026 $0.98

*LIHTC Property with 50% and 60% units*Tenant pays water, sewer, & electric utilities


Rent Comparables

E

D


1BD 1BTH 32 $720 725 $0.99 2BD 2BTH 52 $815 1,015 $0.80 TOTALS/AVG. 84 $779 905 $0.86

*LIHTC Property with 50% & 60% units*Tenant pays all utilities

100 Dash Lewis DriveDecatur, GA 30034


MAGNOLIA CIRCLE 84 UNITS OCCUPANCY: 100% YEAR BUILT: 2003

3100 Rainbow Forest CircleDecatur, GA 30034


RAINBOW FOREST 156 UNITS OCCUPANCY: 100% YEAR BUILT: 1970


2BD 1.5BTH 60 $853 1,161 $0.73 2BD 2BTH 40 $863 1,161 $0.74 3BD 2BTH 26 $983 1,464 $0.67 3BD 2.5BTH 30 $973 1,322 $0.74 TOTALS/AVG. 156 $900 1,242 $0.72

*Tenant pays electric utility


Demographics

DECATURMEDIAN HOME COST

DECATURMEDIAN RENT

DECATURUNEMPLOYMENT RATE

DECATURJOB GROWTH

$477,100 $2,534 5.0%(6/2017)

0.6%(since 1/2017)

SOURCE: zillow.com, homefacts.com


0

5,000

10,000

15,000

20,000

25,000

Under $25,000 $25,000- $50,000 $50,000- $75,000 $75,000- $100,000 $100,000- $125,000 $125,000- $150,000 $150,000- $200,000 $200,000+

Demographic Analysis

POPULATION 1 MILE 3 MILES 5 MILES

2017 Estimated Population 10,541 80,353 225,419Population Growth 2010-2017 6.50% 3.39% 4.11%

HOUSEHOLDS

2017 Estimated Households 4,003 30,492 87,186Household Growth 2010-2017 6.58% 3.52% 4.26%

INCOME

2017 Household Income: Average $41,129 $59,406 $72,126 2017 Household Income: Median $30,160 $43,383 $51,254

HOUSEHOLD INCOME LEVELS BY POPULATION

OWNER61%

RENTER39% OCCUPIED

95%VACANT

5%

SOURCE: CoStar

www.lihtcadvisors.com

LIHTC Advisors

Documents

LoopNet€¦ · income qualifying residents earning no more than 30%, 50%, and 60% of Area Medium Income (AMI) limits, which are provided by the Georgia Housing and Finance Authority