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Page 1: PROGRAM & VISION STATEMENT · program & vision statement ONE Big Sky District is a large, mixed-use, multi-anchor program supporting broad development goals driving the long-term

PROGRAM amp VISION STATEMENT

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 33

PROGRAM amp VISION STATEMENT

ONE Big Sky District is a large mixed-use multi-anchor program supporting broad development goals driving the long-termeconomic vitality of the City of Billings the State of Montana and the region This destination concept relies on privatepublicpartnerships to support anchoring institutions including health care tourism education and the financial sector working togetherto drive economic growth and job creation

INTRODUCTION

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 44

PROGRAM amp VISION STATEMENT

There are several primary goals and objectives for the ONE Big Sky District including

bull Lifestyle Goalso Create a development strategy that capitalizes on planning and design that trends toward re-urbanization and more healthy

built and natural environmentso Develop a series of memorable urban experiences and programmatic offerings that appeal to all of Billingsrsquo residents and

visitorso Embrace the authentic Billings and Montana experience

bull Fiscal amp Economic Goalso Build a comprehensive plan to grow tax base for the City the County and the Stateo Strengthen our position in the region to be the most attractive market for new private businesso Create new jobs to drive not only the local but also the regional and statewide economieso Realize a return on public investment at a significant ratio

bull Civic amp Community Goalso Support a range of housing options and more mixed-use developments in the downtown coreo Establish Billings as one of the Mountain Regionrsquos dominant destination cities for visitation driven by anchoring institutions (eg

health care and education) and an emerging tourism economy to draw meetings conventions and related activities

bull Tomorrows Workforce Goalso Become a model city nationally to attract and retain a skilled workforce from professional to industrial and the trades

GOALS amp ASPIRATIONS

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 55

PROGRAM amp VISION STATEMENT

A strong district development strategy can strengthen Billings as a destination city and enhance the economic climate ndash using health care and tourism as catalysts to anchor the transformation of Billings into the next generation

DISTRICT DEVELOPMENT PLAN

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 66

PROGRAM amp VISION STATEMENT

There are a number of key drivers that define the opportunity for major economic development generated from the ONE Big Sky District and certain constraints that must be understood and addressed including

KEY DRIVERSbull A dynamic economic development community energized to take actionbull Public-private partnerships (P3) are an emerging and proven national trendbull A stable economic base for the futurebull An opportunity to define an urban landscape which can support major economic developmentbull Lifestyle amenities and character in the community and region that can become the foundation to an authentic ldquoBillings and

Montana Experiencerdquobull Opportunities for important community anchors that can drive economic development

CONSTRAINTSbull An uncertain political climate and environment at the local and state levelsbull A massive and evolving jobs dilemma in Billingsbull Limited proven model for public finance in support of major economic developmentbull Lack of accurate information on the project circulating in the communitybull Without vision and an action plan Billings will have limited appeal with institutional capital investors

KEY DRIVERS CONSTRAINTS

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 77

PROGRAM amp VISION STATEMENT

Based on our preliminary market analysis the City of Billings has the potential to support a diverse program in the ONE Big Sky Center Development Districts of the magnitude as described below

While these forecasts are preliminary and based primarily on macro-level demand analysis the demographic strength economic base industry growth metrics combined with the regional trade area of Billings indicate that growth patterns will support a robust development program over a 15 to 20 year planning horizon

PROGRAM STATEMENT

Program

Gap Analysis - Phase 1

Sources amp Uses

SOURCES OF FUNDS

Phase 1

Phase 1

PRIVATEPUBLIC327189000181689000

SOURCES OF FUNDS

Full Buildout

Full Buildout

PRIVATEPUBLIC1493002000229157000

Sources amp Uses (Simplified)

SOURCES OF FUNDS

Phase 1

Phase 1

PRIVATEPUBLIC327189000181689000

SOURCES OF FUNDS

Full Buildout

Full Buildout

PRIVATEPUBLIC1493002000229157000

MPB by Uses

MPB by Component

Economic amp Fiscal Summary

Economic amp Fiscal Calcs LOW

Economic amp Fiscal Calcs HIGH

Hotel - Phase 1

Hotel - Phase 1 (Gap)

Hotel - Phase 2

Retail - Phase 1

Retail - Phase 2

Office - Phase 1

Office - Phase 1 (Gap)

Office - Phase 2

Bioscience - Phase 1

Bioscience - Phase 1 (Gap)

Bioscience - Phase 2

Health - Phase 1

Health - Phase 2

Medical Office - Phase 1

Medical Office - Phase 2

Residential - Phase 1

Residential - Phase 1 (Gap)

Residential - Phase 2

Senior Housing - Phase 1

Senior Housing - Phase 1 (Gap)

Senior Housing - Phase 2

Mixed-Use Infill - Phase 1

Mixed-Use Infill - Phase 2

Convention - Phase 1

Civic - Phase 1

Parking - Phase 1

Parking - Phase 2

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 88

PROGRAM amp VISION STATEMENT

Why the time is now for this project

- Billings needs a defined vision and plan that will drive our economic future

- Serious workforce challenges in that will only get worse in upcoming years

- Flat economic growth which will result in a growing tax burden on existing property owners

- Billings is in a regional competition ndash with communities around Billings making large investments in their amenities and infrastructure to attract the businesses and workforce of tomorrow

URGENT ISSUES REQUIRING ACTION

  • Slide Number 1
  • Slide Number 2
  • Slide Number 3
  • Slide Number 4
  • Slide Number 5
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
ONE BIG SKY CENTER
Billings Montana
STRUCTURED PARKING - PHASE 2
USES OF FUNDS
Land Acquisition $ -
Construction $ 37200000 $45000 Stall
Development $ 5580000 15
Financing (500 Interest) $ 2428000 85 Loan to Project Costs
Contingency $ 2260000 5
TOTAL $ 47468000 $57425 Stall
Structured Parking Program 827 Stalls
ONE BIG SKY CENTER
Billings Montana
STRUCTURED PARKING - PHASE 1
USES OF FUNDS
Land Acquisition $ -
Construction $ 33990000 $33000 Stall
Development $ 5099000 15
Financing (500 Interest) $ 2219000 85 Loan to Project Costs
Contingency $ 2065000 5
TOTAL $ 43373000 $42110 Stall
Structured Parking Program 1030 Stalls
ONE BIG SKY CENTER
Billings Montana
CIVIC INFRASTRUCTURE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ - Land Acquisition $ - $000 SF
Construction $ 15040000 $18800 SF
Debt Financing $ 32150000 FFampE $ 8080000 $10100 SF
Development $ 5780000 25
Financing $ 1719000 100 Loan to Project Costs
Contingency $ 1531000 5
TOTAL $ 32150000 TOTAL $ 32150000 $40188 SF
Convention Center Program 80000 SF Escalation Rate 50
Year Completed 2022
Interest Rate 450
ONE BIG SKY CENTER
Billings Montana
CONVENTION CENTER - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ - Land Acquisition $ - $000 SF
Construction $ 36300000 $36300 SF
Debt Financing $ 69666000 FFampE $ 13800000 $13800 SF
Development $ 12525000 25
Financing $ 3724000 100 Loan to Project Costs
Contingency $ 3317000 5
TOTAL $ 69666000 TOTAL $ 69666000 $69666 SF
Convention Center Program 100000 SF Escalation Rate 50
Year Completed 2022
Interest Rate 450
ONE BIG SKY CENTER
Billings Montana
MIXED-USE INFILL DEVELOPMENT - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 21368000 Land Acquisition $ 11750000 $4700 SF
Construction $ 36000000 $14400 SF
Debt Financing $ 39683000 Development $ 9000000 25
Financing $ 1953000 65 Loan to Project Costs
Contingency $ 2348000 5
TOTAL $ 61051000 TOTAL $ 61051000 $24420 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2245 $2312 $2382 $2453 $2527 $2603 $2681 $2761 $2844 $2929 $3017 $3108 $3201 $3297 $3396 $3498 3
OPERATING REVENUES
Rent (NNN) 5613000 5781000 5954000 6133000 6317000 6506000 6702000 6903000 7110000 7323000 7543000 7769000 8002000 8242000 8489000 8744000
Expense Reimbursements 4212000 4296000 4383000 4469000 4560000 4650000 4744000 4838000 4935000 5034000 5135000 5237000 5342000 5448000 5557000 5669000
Vacancy Allowance (983000) (756000) (517000) (530000) (544000) (558000) (572000) (587000) (602000) (618000) (634000) (650000) (667000) (685000) (702000) (721000)
Total Revenues 8842000 9321000 9820000 10072000 10333000 10598000 10874000 11154000 11443000 11739000 12044000 12356000 12677000 13005000 13344000 13692000
OPERATING EXPENSES
Operating Expenses 3209000 3273000 3339000 3405000 3474000 3543000 3614000 3686000 3760000 3835000 3912000 3990000 4070000 4151000 4234000 4319000
Property Taxes 1003000 1023000 1044000 1064000 1086000 1107000 1130000 1152000 1175000 1199000 1223000 1247000 1272000 1297000 1323000 1350000
Total Expenses 4212000 4296000 4383000 4469000 4560000 4650000 4744000 4838000 4935000 5034000 5135000 5237000 5342000 5448000 5557000 5669000
NET OPERATING INCOME 4630000 5025000 5437000 5603000 5773000 5948000 6130000 6316000 6508000 6705000 6909000 7119000 7335000 7557000 7787000 8023000
Annual Debt Service (500 25 -yr Amort) 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794
DSCR 166x 181x 195x 201x 207x 214x 220x 227x 234x 241x 248x 256x 263x 271x 280x
Mortgage Balance $38864774 $38004685 $37100593 $36150245 $35151276 $34101198 $32997396 $31837122 $30617485 $29335450 $27987823 $26571249 $25082200 $23516969 $21871658
BEFORE TAX CASH FLOW 1846206 2241206 2653206 2819206 2989206 3164206 3346206 3532206 3724206 3921206 4125206 4335206 4551206 4773206 5003206
REVERSION CALCULATIONS
Project NOI (Year 16) 8023000
Cap Rate 800
Gross Sales Proceeds 100287500
Less Selling Costs 30 (3008625)
Net Sales Proceeds 97278875
Less Mortgage Balance (21871658)
Net Reversion Proceeds 75407217
Gross Rental Rate $3930 $4031 $4135 $4241 $4351 $4462 $4578 $4696 $4818 $4943 $5071 $5202 $5338 $5476 $5618 $5765
Equity $ (21368000) 00 00 1846206 2241206 2653206 2819206 2989206 3164206 3346206 3532206 3724206 3921206 4125206 4335206 4551206 4773206 80410423
ROE 1453 IRR 86 105 124 132 140 148 157 165 174 184 193 203 213 223 234
ONE BIG SKY CENTER
Billings Montana
MIXED-USE INFILL DEVELOPMENT - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 6354000 Land Acquisition $ 3500000 $3500 SF
Construction $ 10700000 $10700 SF
Debt Financing $ 11800000 Development $ 2675000 25
Financing $ 581000 65 Loan to Project Costs
Contingency $ 698000 5
TOTAL $ 18154000 TOTAL $ 18154000 $18154 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $1670 $1720 $1772 $1825 $1880 $1936 $1994 $2054 $2116 $2179 $2244 $2312 $2381 $2452 $2526 $2602 $2680 $2760 $2843 $2928 $3016 3
OPERATING REVENUES
Rent (NNN) 1670000 1720000 1772000 1825000 1880000 1936000 1994000 2054000 2116000 2179000 2244000 2312000 2381000 2452000 2526000 2602000 2680000 2760000 2843000 2928000 3016000
Expense Reimbursements 1254000 1279000 1305000 1330000 1358000 1384000 1412000 1440000 1469000 1498000 1528000 1559000 1590000 1622000 1655000 1687000 1721000 1756000 1791000 1827000 1863000
Vacancy Allowance (292000) (225000) (154000) (158000) (162000) (166000) (170000) (175000) (179000) (184000) (189000) (194000) (199000) (204000) (209000) (214000) (220000) (226000) (232000) (238000) (244000)
Total Revenues 2632000 2774000 2923000 2997000 3076000 3154000 3236000 3319000 3406000 3493000 3583000 3677000 3772000 3870000 3972000 4075000 4181000 4290000 4402000 4517000 4635000
OPERATING EXPENSES
Operating Expenses 955000 974000 994000 1013000 1034000 1054000 1075000 1097000 1119000 1141000 1164000 1187000 1211000 1235000 1260000 1285000 1311000 1337000 1364000 1391000 1419000
Property Taxes 299000 305000 311000 317000 324000 330000 337000 343000 350000 357000 364000 372000 379000 387000 395000 402000 410000 419000 427000 436000 444000
Total Expenses 1254000 1279000 1305000 1330000 1358000 1384000 1412000 1440000 1469000 1498000 1528000 1559000 1590000 1622000 1655000 1687000 1721000 1756000 1791000 1827000 1863000
NET OPERATING INCOME 1378000 1495000 1618000 1667000 1718000 1770000 1824000 1879000 1937000 1995000 2055000 2118000 2182000 2248000 2317000 2388000 2460000 2534000 2611000 2690000 2772000
Annual Debt Service (500 25 -yr Amort) 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779
DSCR 166x 181x 195x 201x 208x 214x 220x 227x 234x 241x 248x 256x 264x 272x 280x 288x 297x 306x 315x 325x
Mortgage Balance $11556695 $11300942 $11032104 $10749512 $10452462 $10140215 $9811992 $9466977 $9104310 $8723088 $8322362 $7901135 $7458357 $6992925 $6503681 $5989406 $5448820 $4880577 $4283261 $3655385
BEFORE TAX CASH FLOW 550221 667221 790221 839221 890221 942221 996221 1051221 1109221 1167221 1227221 1290221 1354221 1420221 1489221 1560221 1632221 1706221 1783221 1862221
REVERSION CALCULATIONS
Project NOI (Year 16) 2772000
Cap Rate 800
Gross Sales Proceeds 34650000
Less Selling Costs 30 (1039500)
Net Sales Proceeds 33610500
Less Mortgage Balance (3655385)
Net Reversion Proceeds 29955115
Gross Rental Rate $2924 $2999 $3077 $3155 $3238 $3320 $3406 $3494 $3585 $3677 $3772 $3871 $3971 $4074 $4181 $4289 $4401 $4516 $4634 $4755 $4879
Equity $ (6354000) 00 00 550221 667221 790221 839221 890221 942221 996221 1051221 1109221 1167221 1227221 1290221 1354221 1420221 1489221 1560221 1632221 1706221 1783221 31817335
ROE 1433 IRR 87 105 124 132 140 148 157 165 175 184 193 203 213 224 234 246 257 269 281 293
ONE BIG SKY CENTER
Billings Montana
SENIOR HOUSING - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 23350000 Land Acquisition $ 4800000 $16000 DU
Construction $ 54000000 $180000 DU
Debt Financing $ 54485000 FFampE $ 3000000 $10000 DU
Development $ 11400000 20
Financing $ 1157000 70 Loan to Project Costs
Contingency $ 3478000 5
TOTAL $ 77835000 TOTAL $ 77835000 $259450 DU
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Number of Units 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Monthly Rent $2620 $2699 $2780 $2863 $2949 $3037 $3128 $3222 $3319 $3419 $3521 $3627 $3735 $3848 $3963 $4082
Rental Rate per Square Foot $440 $453 $467 $481 $495 $510 $525 $541 $557 $574 $591 $609 $627 $646 $666 $686 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 9432000 9715000 10006000 10307000 10616000 10934000 11262000 11600000 11948000 12307000 12676000 13056000 13448000 13851000 14267000 14695000
Miscellaneous 189000 194000 200000 206000 212000 219000 225000 232000 239000 246000 254000 261000 269000 277000 285000 294000 2 of PGI
Vacancy Collections Losses (962000) (495000) (510000) (526000) (541000) (558000) (574000) (592000) (609000) (628000) (647000) (666000) (686000) (706000) (728000) (749000)
Effective Gross Income 8659000 9414000 9696000 9987000 10287000 10595000 10913000 11240000 11578000 11925000 12283000 12651000 13031000 13422000 13824000 14240000
OPERATING EXPENSES
Administrative 160000 165000 170000 175000 180000 185000 191000 197000 203000 209000 215000 221000 228000 235000 242000 249000 17 of PGI
Advertising 67000 69000 71000 73000 75000 77000 80000 82000 84000 87000 90000 92000 95000 98000 101000 104000 07 of PGI
Repairs amp Maintenance 266000 274000 283000 291000 300000 309000 318000 328000 338000 348000 358000 369000 380000 391000 403000 415000 28 of PGI
Utilities 400000 412000 424000 437000 450000 463000 477000 492000 506000 521000 537000 553000 570000 587000 605000 623000 42 of PGI
Payroll 480000 494000 509000 524000 540000 556000 573000 590000 608000 626000 645000 664000 684000 704000 725000 747000 50 of PGI
Insurance 187000 192000 198000 204000 210000 216000 223000 229000 236000 243000 251000 258000 266000 274000 282000 291000 19 of PGI
Property Taxes 1066000 1098000 1131000 1165000 1200000 1236000 1273000 1311000 1350000 1391000 1432000 1475000 1520000 1565000 1612000 1660000 111 of PGI
Management Fee 346000 377000 388000 399000 411000 424000 437000 450000 463000 477000 491000 506000 521000 537000 553000 570000 40 of EGI
Reserves 173000 188000 194000 200000 206000 212000 218000 225000 232000 239000 246000 253000 261000 268000 276000 285000 20 of EGI
Total Expenses 3145000 3269000 3368000 3468000 3572000 3678000 3790000 3904000 4020000 4141000 4265000 4391000 4525000 4659000 4799000 4944000
NET OPERATING INCOME 5514000 6145000 6328000 6519000 6715000 6917000 7123000 7336000 7558000 7784000 8018000 8260000 8506000 8763000 9025000 9296000
Annual Debt Service (500 25 -yr Amort) 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167
DSCR 144x 161x 166x 171x 176x 181x 186x 192x 198x 204x 210x 216x 223x 229x 236x
Mortgage Balance $53361570 $52180663 $50939339 $49634506 $48262916 $46821152 $45305625 $43712561 $42037993 $40277751 $38427451 $36482486 $34438013 $32288942 $30029919
BEFORE TAX CASH FLOW 1691833 2322833 2505833 2696833 2892833 3094833 3300833 3513833 3735833 3961833 4195833 4437833 4683833 4940833 5202833
REVERSION CALCULATIONS
Project NOI (Year 21) 9296000
Cap Rate 700
Gross Sales Proceeds 132800000
Less Selling Costs 30 (3984000)
Net Sales Proceeds 128816000
Less Mortgage Balance (30029919)
Net Reversion Proceeds 98786081
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (23350000) 00 00 1691833 2322833 2505833 2696833 2892833 3094833 3300833 3513833 3735833 3961833 4195833 4437833 4683833 4940833 103988914
ROE 1460 IRR 72 99 107 115 124 133 141 150 160 170 180 190 201 212 223
ONE BIG SKY CENTER
Billings Montana
SENIOR HOUSING - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 7738000 Land Acquisition $ 1800000 $12000 DU
Construction $ 20100000 $134000 DU
Debt Financing $ 18054000 FFampE $ 1200000 $8000 DU
Development $ 4260000 20
Public Investment $ 3300000 Financing $ 432000 70 Loan to Project Costs
Contingency $ 1300000 5
TOTAL $ 29092000 TOTAL $ 29092000 $193947 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Monthly Rent $1610 $1658 $1708 $1759 $1812 $1866 $1922 $1980 $2039 $2101 $2164 $2229 $2295 $2364 $2435 $2508 $2584 $2661 $2741 $2823 $2908
Rental Rate per Square Foot $270 $278 $286 $295 $304 $313 $322 $332 $342 $352 $363 $374 $385 $397 $408 $421 $433 $446 $460 $473 $488 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 2898000 2985000 3074000 3167000 3262000 3360000 3460000 3564000 3671000 3781000 3895000 4012000 4132000 4256000 4383000 4515000 4650000 4790000 4934000 5082000 5234000
Miscellaneous 58000 60000 61000 63000 65000 67000 69000 71000 73000 76000 78000 80000 83000 85000 88000 90000 93000 96000 99000 102000 105000 2 of PGI
Vacancy Collections Losses (296000) (152000) (157000) (162000) (166000) (171000) (176000) (182000) (187000) (193000) (199000) (205000) (211000) (217000) (224000) (230000) (237000) (244000) (252000) (259000) (267000)
Effective Gross Income 2660000 2893000 2978000 3068000 3161000 3256000 3353000 3453000 3557000 3664000 3774000 3887000 4004000 4124000 4247000 4375000 4506000 4642000 4781000 4925000 5072000
OPERATING EXPENSES
Administrative 49000 51000 52000 54000 55000 57000 59000 60000 62000 64000 66000 68000 70000 72000 74000 77000 79000 81000 84000 86000 89000 17 of PGI
Advertising 20000 21000 22000 22000 23000 24000 24000 25000 26000 27000 28000 28000 29000 30000 31000 32000 33000 34000 35000 36000 37000 07 of PGI
Repairs amp Maintenance 82000 84000 87000 89000 92000 95000 98000 101000 104000 107000 110000 113000 117000 120000 124000 128000 131000 135000 139000 144000 148000 28 of PGI
Utilities 123000 126000 130000 134000 138000 142000 147000 151000 156000 160000 165000 170000 175000 180000 186000 191000 197000 203000 209000 215000 222000 42 of PGI
Payroll 147000 152000 156000 161000 166000 171000 176000 181000 187000 192000 198000 204000 210000 216000 223000 230000 236000 244000 251000 258000 266000 50 of PGI
Insurance 57000 59000 61000 63000 64000 66000 68000 70000 73000 75000 77000 79000 82000 84000 87000 89000 92000 95000 98000 100000 104000 19 of PGI
Property Taxes 327000 337000 347000 358000 369000 380000 391000 403000 415000 427000 440000 453000 467000 481000 495000 510000 525000 541000 558000 574000 591000 111 of PGI
Management Fee 106000 116000 119000 123000 126000 130000 134000 138000 142000 147000 151000 155000 160000 165000 170000 175000 180000 186000 191000 197000 203000 40 of EGI
Reserves 53000 58000 60000 61000 63000 65000 67000 69000 71000 73000 75000 78000 80000 82000 85000 88000 90000 93000 96000 99000 101000 20 of EGI
Total Expenses 964000 1004000 1034000 1065000 1096000 1130000 1164000 1198000 1236000 1272000 1310000 1348000 1390000 1430000 1475000 1520000 1563000 1612000 1661000 1709000 1761000
NET OPERATING INCOME 1696000 1889000 1944000 2003000 2065000 2126000 2189000 2255000 2321000 2392000 2464000 2539000 2614000 2694000 2772000 2855000 2943000 3030000 3120000 3216000 3311000
Annual Debt Service (500 25 -yr Amort) 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503
DSCR 134x 149x 153x 158x 163x 168x 173x 178x 183x 189x 195x 200x 206x 213x 219x 225x 232x 239x 246x 254x
Mortgage Balance $17681743 $17290441 $16879120 $16446754 $15992267 $15514529 $15012348 $14484474 $13929594 $13346325 $12733215 $12088736 $11411286 $10699175 $9950632 $9163791 $8336695 $7467282 $6553389 $5592739
BEFORE TAX CASH FLOW 429497 622497 677497 736497 798497 859497 922497 988497 1054497 1125497 1197497 1272497 1347497 1427497 1505497 1588497 1676497 1763497 1853497 1949497
REVERSION CALCULATIONS
Project NOI (Year 21) 3311000
Cap Rate 700
Gross Sales Proceeds 47300000
Less Selling Costs 30 (1419000)
Net Sales Proceeds 45881000
Less Mortgage Balance (5592739)
Net Reversion Proceeds 40288261
NOI Margin 638 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (7738000) 00 00 429497 622497 677497 736497 798497 859497 922497 988497 1054497 1125497 1197497 1272497 1347497 1427497 1505497 1588497 1676497 1763497 1853497 42237758
ROE 1304 IRR 56 80 88 95 103 111 119 128 136 145 155 164 174 184 195 205 217 228 240 252
ONE BIG SKY CENTER
Billings Montana
SENIOR HOUSING - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 8728000 Land Acquisition $ 1800000 $12000 DU
Construction $ 20100000 $134000 DU
Debt Financing $ 20364000 FFampE $ 1200000 $8000 DU
Development $ 4260000 20
Financing $ 432000 70 Loan to Project Costs
Contingency $ 1300000 5
TOTAL $ 29092000 TOTAL $ 29092000 $193947 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Monthly Rent $1960 $2019 $2079 $2142 $2206 $2272 $2340 $2411 $2483 $2557 $2634 $2713 $2794 $2878 $2965 $3054 $3145 $3240 $3337 $3437 $3540
Rental Rate per Square Foot $330 $340 $350 $361 $371 $383 $394 $406 $418 $431 $443 $457 $471 $485 $499 $514 $530 $545 $562 $579 $596 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 3528000 3634000 3743000 3855000 3971000 4090000 4213000 4339000 4469000 4603000 4741000 4884000 5030000 5181000 5336000 5497000 5661000 5831000 6006000 6186000 6372000
Miscellaneous 71000 73000 75000 77000 79000 82000 84000 87000 89000 92000 95000 98000 101000 104000 107000 110000 113000 117000 120000 124000 127000 2 of PGI
Vacancy Collections Losses (360000) (185000) (191000) (197000) (203000) (209000) (215000) (221000) (228000) (235000) (242000) (249000) (257000) (264000) (272000) (280000) (289000) (297000) (306000) (316000) (325000)
Effective Gross Income 3239000 3522000 3627000 3735000 3847000 3963000 4082000 4205000 4330000 4460000 4594000 4733000 4874000 5021000 5171000 5327000 5485000 5651000 5820000 5994000 6174000
OPERATING EXPENSES
Administrative 60000 62000 63000 65000 67000 69000 71000 74000 76000 78000 80000 83000 85000 88000 90000 93000 96000 99000 102000 105000 108000 17 of PGI
Advertising 25000 26000 26000 27000 28000 29000 30000 31000 32000 33000 33000 34000 36000 37000 38000 39000 40000 41000 42000 44000 45000 07 of PGI
Repairs amp Maintenance 100000 103000 106000 109000 112000 116000 119000 123000 126000 130000 134000 138000 142000 146000 151000 155000 160000 165000 170000 175000 180000 28 of PGI
Utilities 150000 154000 159000 163000 168000 173000 179000 184000 189000 195000 201000 207000 213000 220000 226000 233000 240000 247000 254000 262000 270000 42 of PGI
Payroll 179000 185000 190000 196000 202000 208000 214000 221000 227000 234000 241000 248000 256000 263000 271000 280000 288000 297000 305000 315000 324000 50 of PGI
Insurance 70000 72000 74000 76000 79000 81000 83000 86000 88000 91000 94000 97000 99000 102000 106000 109000 112000 115000 119000 122000 126000 19 of PGI
Property Taxes 399000 411000 423000 436000 449000 462000 476000 490000 505000 520000 536000 552000 568000 585000 603000 621000 640000 659000 679000 699000 720000 111 of PGI
Management Fee 130000 141000 145000 149000 154000 159000 163000 168000 173000 178000 184000 189000 195000 201000 207000 213000 219000 226000 233000 240000 247000 40 of EGI
Reserves 65000 70000 73000 75000 77000 79000 82000 84000 87000 89000 92000 95000 97000 100000 103000 107000 110000 113000 116000 120000 123000 20 of EGI
Total Expenses 1178000 1224000 1259000 1296000 1336000 1376000 1417000 1461000 1503000 1548000 1595000 1643000 1691000 1742000 1795000 1850000 1905000 1962000 2020000 2082000 2143000
NET OPERATING INCOME 2061000 2298000 2368000 2439000 2511000 2587000 2665000 2744000 2827000 2912000 2999000 3090000 3183000 3279000 3376000 3477000 3580000 3689000 3800000 3912000 4031000
Annual Debt Service (500 25 -yr Amort) 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551
DSCR 144x 161x 166x 171x 176x 181x 187x 192x 198x 204x 210x 216x 223x 230x 236x 243x 251x 258x 266x 274x
Mortgage Balance $19944113 $19502744 $19038794 $18551107 $18038470 $17499604 $16933170 $16337755 $15711878 $15053980 $14362423 $13635484 $12871354 $12068129 $11223810 $10336294 $9403370 $8422717 $7391892 $6308327
BEFORE TAX CASH FLOW 632449 869449 939449 1010449 1082449 1158449 1236449 1315449 1398449 1483449 1570449 1661449 1754449 1850449 1947449 2048449 2151449 2260449 2371449 2483449
REVERSION CALCULATIONS
Project NOI (Year 21) 4031000
Cap Rate 700
Gross Sales Proceeds 57585714
Less Selling Costs 30 (1727571)
Net Sales Proceeds 55858143
Less Mortgage Balance (6308327)
Net Reversion Proceeds 49549816
NOI Margin 636 652 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (8728000) 00 00 632449 869449 939449 1010449 1082449 1158449 1236449 1315449 1398449 1483449 1570449 1661449 1754449 1850449 1947449 2048449 2151449 2260449 2371449 52033265
ROE 1419 IRR 72 100 108 116 124 133 142 151 160 170 180 190 201 212 223 235 246 259 272 285
ONE BIG SKY CENTER
Billings Montana
RESIDENTIAL - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 67840000 Land Acquisition $ 16000000 $20000 DU
Construction $ 156000000 $195000 DU
Debt Financing $ 158294000 FFampE $ 8000000 $10000 DU
Development $ 32800000 20
Financing $ 3328000 70 Loan to Project Costs
Contingency $ 10006000 5
TOTAL $ 226134000 TOTAL $ 226134000 $282668 DU
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Number of Units 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800
Average Monthly Rent $2840 $2925 $3013 $3103 $3196 $3292 $3391 $3493 $3598 $3706 $3817 $3931 $4049 $4171 $4296 $4425
Rental Rate per Square Foot $355 $366 $377 $388 $400 $412 $424 $437 $450 $463 $477 $491 $506 $521 $537 $553 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 27264000 28082000 28924000 29792000 30686000 31606000 32555000 33531000 34537000 35573000 36641000 37740000 38872000 40038000 41239000 42476000
Miscellaneous 545000 562000 578000 596000 614000 632000 651000 671000 691000 711000 733000 755000 777000 801000 825000 850000 2 of PGI
Vacancy Collections Losses (2781000) (1432000) (1475000) (1519000) (1565000) (1612000) (1660000) (1710000) (1761000) (1814000) (1869000) (1925000) (1982000) (2042000) (2103000) (2166000)
Effective Gross Income 25028000 27212000 28027000 28869000 29735000 30626000 31546000 32492000 33467000 34470000 35505000 36570000 37667000 38797000 39961000 41160000
OPERATING EXPENSES
Administrative 462000 476000 490000 505000 520000 536000 552000 568000 585000 603000 621000 640000 659000 679000 699000 720000 17 of PGI
Advertising 193000 198000 204000 210000 217000 223000 230000 237000 244000 251000 259000 267000 275000 283000 291000 300000 07 of PGI
Repairs amp Maintenance 770000 793000 817000 842000 867000 893000 920000 947000 976000 1005000 1035000 1066000 1098000 1131000 1165000 1200000 28 of PGI
Utilities 1155000 1190000 1226000 1262000 1300000 1339000 1379000 1421000 1463000 1507000 1553000 1599000 1647000 1697000 1747000 1800000 42 of PGI
Payroll 1386000 1428000 1471000 1515000 1560000 1607000 1655000 1705000 1756000 1809000 1863000 1919000 1977000 2036000 2097000 2160000 50 of PGI
Insurance 539000 555000 572000 589000 607000 625000 644000 663000 683000 703000 725000 746000 769000 792000 815000 840000 19 of PGI
Property Taxes 3081000 3173000 3268000 3366000 3467000 3571000 3679000 3789000 3903000 4019000 4140000 4264000 4392000 4524000 4660000 4800000 111 of PGI
Management Fee 1001000 1088000 1121000 1155000 1189000 1225000 1262000 1300000 1339000 1379000 1420000 1463000 1507000 1552000 1598000 1646000 40 of EGI
Reserves 501000 544000 561000 577000 595000 613000 631000 650000 669000 689000 710000 731000 753000 776000 799000 823000 20 of EGI
Total Expenses 9088000 9445000 9730000 10021000 10322000 10632000 10952000 11280000 11618000 11965000 12326000 12695000 13077000 13470000 13871000 14289000
NET OPERATING INCOME 15940000 17767000 18297000 18848000 19413000 19994000 20594000 21212000 21849000 22505000 23179000 23875000 24590000 25327000 26090000 26871000
Annual Debt Service (500 25 -yr Amort) 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452
DSCR 144x 160x 165x 170x 175x 180x 185x 191x 197x 203x 209x 215x 221x 228x 235x
Mortgage Balance $155030125 $151599264 $147992874 $144201974 $140217124 $136028402 $131625377 $126997085 $122132001 $117018009 $111642377 $105991716 $100051957 $93808309 $87245224
BEFORE TAX CASH FLOW 4835548 6662548 7192548 7743548 8308548 8889548 9489548 10107548 10744548 11400548 12074548 12770548 13485548 14222548 14985548
REVERSION CALCULATIONS
Project NOI (Year 21) 26871000
Cap Rate 700
Gross Sales Proceeds 383871429
Less Selling Costs 30 (11516143)
Net Sales Proceeds 372355286
Less Mortgage Balance (87245224)
Net Reversion Proceeds 285110062
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (67840000) 00 00 4835548 6662548 7192548 7743548 8308548 8889548 9489548 10107548 10744548 11400548 12074548 12770548 13485548 14222548 300095610
ROE 1451 IRR 71 98 106 114 122 131 140 149 158 168 178 188 199 210 221
ONE BIG SKY CENTER
Billings Montana
RESIDENTIAL - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 16834000 Land Acquisition $ 4500000 $15000 DU
Construction $ 43500000 $145000 DU
Debt Financing $ 39278000 FFampE $ 2400000 $8000 DU
Development $ 9180000 20
Public Investment $ 7200000 Financing $ 931000 70 Loan to Project Costs
Contingency $ 2801000 5
TOTAL $ 63312000 TOTAL $ 63312000 $211040 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Monthly Rent $1760 $1813 $1867 $1923 $1981 $2040 $2102 $2165 $2230 $2296 $2365 $2436 $2509 $2585 $2662 $2742 $2824 $2909 $2996 $3086 $3179
Rental Rate per Square Foot $220 $227 $233 $240 $248 $255 $263 $271 $279 $287 $296 $305 $314 $323 $333 $343 $353 $364 $375 $386 $397 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 6336000 6526000 6722000 6924000 7131000 7345000 7566000 7792000 8026000 8267000 8515000 8771000 9034000 9305000 9584000 9871000 10167000 10472000 10787000 11110000 11444000
Miscellaneous 127000 131000 134000 138000 143000 147000 151000 156000 161000 165000 170000 175000 181000 186000 192000 197000 203000 209000 216000 222000 229000 2 of PGI
Vacancy Collections Losses (646000) (333000) (343000) (353000) (364000) (375000) (386000) (397000) (409000) (422000) (434000) (447000) (461000) (475000) (489000) (503000) (519000) (534000) (550000) (567000) (584000)
Effective Gross Income 5817000 6324000 6513000 6709000 6910000 7117000 7331000 7551000 7778000 8010000 8251000 8499000 8754000 9016000 9287000 9565000 9851000 10147000 10453000 10765000 11089000
OPERATING EXPENSES
Administrative 107000 111000 114000 117000 121000 124000 128000 132000 136000 140000 144000 149000 153000 158000 162000 167000 172000 177000 183000 188000 194000 17 of PGI
Advertising 45000 46000 47000 49000 50000 52000 53000 55000 57000 58000 60000 62000 64000 66000 68000 70000 72000 74000 76000 78000 81000 07 of PGI
Repairs amp Maintenance 179000 184000 190000 196000 201000 207000 214000 220000 227000 234000 241000 248000 255000 263000 271000 279000 287000 296000 305000 314000 323000 28 of PGI
Utilities 268000 277000 285000 293000 302000 311000 321000 330000 340000 350000 361000 372000 383000 394000 406000 418000 431000 444000 457000 471000 485000 42 of PGI
Payroll 322000 332000 342000 352000 363000 373000 385000 396000 408000 420000 433000 446000 459000 473000 487000 502000 517000 532000 549000 565000 582000 50 of PGI
Insurance 125000 129000 133000 137000 141000 145000 150000 154000 159000 163000 168000 173000 179000 184000 190000 195000 201000 207000 213000 220000 226000 19 of PGI
Property Taxes 716000 737000 759000 782000 806000 830000 855000 880000 907000 934000 962000 991000 1021000 1051000 1083000 1115000 1149000 1183000 1219000 1255000 1293000 111 of PGI
Management Fee 233000 253000 261000 268000 276000 285000 293000 302000 311000 320000 330000 340000 350000 361000 371000 383000 394000 406000 418000 431000 444000 40 of EGI
Reserves 116000 126000 130000 134000 138000 142000 147000 151000 156000 160000 165000 170000 175000 180000 186000 191000 197000 203000 209000 215000 222000 20 of EGI
Total Expenses 2111000 2195000 2261000 2328000 2398000 2469000 2546000 2620000 2701000 2779000 2864000 2951000 3039000 3130000 3224000 3320000 3420000 3522000 3629000 3737000 3850000
NET OPERATING INCOME 3706000 4129000 4252000 4381000 4512000 4648000 4785000 4931000 5077000 5231000 5387000 5548000 5715000 5886000 6063000 6245000 6431000 6625000 6824000 7028000 7239000
Annual Debt Service (500 25 -yr Amort) 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383
DSCR 135x 150x 154x 159x 164x 169x 174x 179x 184x 190x 196x 201x 207x 214x 220x 227x 233x 240x 248x 255x
Mortgage Balance $38468124 $37616814 $36721948 $35781300 $34792527 $33753166 $32660629 $31512196 $30305007 $29036056 $27702182 $26300066 $24826214 $23276958 $21648438 $19936601 $18137182 $16245702 $14257450 $12167476
BEFORE TAX CASH FLOW 950617 1373617 1496617 1625617 1756617 1892617 2029617 2175617 2321617 2475617 2631617 2792617 2959617 3130617 3307617 3489617 3675617 3869617 4068617 4272617
REVERSION CALCULATIONS
Project NOI (Year 21) 7239000
Cap Rate 700
Gross Sales Proceeds 103414286
Less Selling Costs 30 (3102429)
Net Sales Proceeds 100311857
Less Mortgage Balance (12167476)
Net Reversion Proceeds 88144381
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (16834000) 00 00 950617 1373617 1496617 1625617 1756617 1892617 2029617 2175617 2321617 2475617 2631617 2792617 2959617 3130617 3307617 3489617 3675617 3869617 4068617 92416998
ROE 1312 IRR 56 82 89 97 104 112 121 129 138 147 156 166 176 186 196 207 218 230 242 254
ONE BIG SKY CENTER
Billings Montana
RESIDENTIAL - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 18994000 Land Acquisition $ 4500000 $15000 DU
Construction $ 43500000 $145000 DU
Debt Financing $ 44318000 FFampE $ 2400000 $8000 DU
Development $ 9180000 20
Financing $ 931000 70 Loan to Project Costs
Contingency $ 2801000 5
TOTAL $ 63312000 TOTAL $ 63312000 $211040 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Monthly Rent $2120 $2184 $2249 $2317 $2386 $2458 $2531 $2607 $2686 $2766 $2849 $2935 $3023 $3113 $3207 $3303 $3402 $3504 $3609 $3717 $3829
Rental Rate per Square Foot $265 $273 $281 $290 $298 $307 $316 $326 $336 $346 $356 $367 $378 $389 $401 $413 $425 $438 $451 $465 $479 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 7632000 7861000 8097000 8340000 8590000 8848000 9113000 9386000 9668000 9958000 10257000 10564000 10881000 11208000 11544000 11890000 12247000 12615000 12993000 13383000 13784000
Miscellaneous 153000 157000 162000 167000 172000 177000 182000 188000 193000 199000 205000 211000 218000 224000 231000 238000 245000 252000 260000 268000 276000 2 of PGI
Vacancy Collections Losses (779000) (401000) (413000) (425000) (438000) (451000) (465000) (479000) (493000) (508000) (523000) (539000) (555000) (572000) (589000) (606000) (625000) (643000) (663000) (683000) (703000)
Effective Gross Income 7006000 7617000 7846000 8082000 8324000 8574000 8830000 9095000 9368000 9649000 9939000 10236000 10544000 10860000 11186000 11522000 11867000 12224000 12590000 12968000 13357000
OPERATING EXPENSES
Administrative 129000 133000 137000 141000 146000 150000 154000 159000 164000 169000 174000 179000 184000 190000 196000 202000 208000 214000 220000 227000 234000 17 of PGI
Advertising 54000 56000 57000 59000 61000 62000 64000 66000 68000 70000 72000 75000 77000 79000 82000 84000 86000 89000 92000 95000 97000 07 of PGI
Repairs amp Maintenance 216000 222000 229000 236000 243000 250000 257000 265000 273000 281000 290000 298000 307000 317000 326000 336000 346000 356000 367000 378000 389000 28 of PGI
Utilities 323000 333000 343000 353000 364000 375000 386000 398000 410000 422000 435000 448000 461000 475000 489000 504000 519000 535000 551000 567000 584000 42 of PGI
Payroll 388000 400000 412000 424000 437000 450000 463000 477000 492000 506000 522000 537000 553000 570000 587000 605000 623000 641000 661000 681000 701000 50 of PGI
Insurance 151000 155000 160000 165000 170000 175000 180000 186000 191000 197000 203000 209000 215000 222000 228000 235000 242000 249000 257000 265000 273000 19 of PGI
Property Taxes 862000 888000 915000 942000 971000 1000000 1030000 1061000 1092000 1125000 1159000 1194000 1230000 1266000 1304000 1344000 1384000 1425000 1468000 1512000 1558000 111 of PGI
Management Fee 280000 305000 314000 323000 333000 343000 353000 364000 375000 386000 398000 409000 422000 434000 447000 461000 475000 489000 504000 519000 534000 40 of EGI
Reserves 140000 152000 157000 162000 166000 171000 177000 182000 187000 193000 199000 205000 211000 217000 224000 230000 237000 244000 252000 259000 267000 20 of EGI
Total Expenses 2543000 2644000 2724000 2805000 2891000 2976000 3064000 3158000 3252000 3349000 3452000 3554000 3660000 3770000 3883000 4001000 4120000 4242000 4372000 4503000 4637000
NET OPERATING INCOME 4463000 4973000 5122000 5277000 5433000 5598000 5766000 5937000 6116000 6300000 6487000 6682000 6884000 7090000 7303000 7521000 7747000 7982000 8218000 8465000 8720000
Annual Debt Service (500 25 -yr Amort) 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943
DSCR 144x 160x 165x 170x 175x 180x 185x 191x 197x 203x 209x 215x 221x 228x 235x 242x 249x 257x 264x 272x
Mortgage Balance $43404204 $42443657 $41433966 $40372617 $39256968 $38084240 $36851513 $35555718 $34193627 $32761849 $31256819 $29674788 $28011817 $26263766 $24426282 $22494788 $20464475 $18330287 $16086911 $13728759
BEFORE TAX CASH FLOW 1354057 1864057 2013057 2168057 2324057 2489057 2657057 2828057 3007057 3191057 3378057 3573057 3775057 3981057 4194057 4412057 4638057 4873057 5109057 5356057
REVERSION CALCULATIONS
Project NOI (Year 21) 8720000
Cap Rate 700
Gross Sales Proceeds 124571429
Less Selling Costs 30 (3737143)
Net Sales Proceeds 120834286
Less Mortgage Balance (13728759)
Net Reversion Proceeds 107105527
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (18994000) 00 00 1354057 1864057 2013057 2168057 2324057 2489057 2657057 2828057 3007057 3191057 3378057 3573057 3775057 3981057 4194057 4412057 4638057 4873057 5109057 112461584
ROE 1411 IRR 71 98 106 114 122 131 140 149 158 168 178 188 199 210 221 232 244 257 269 282
ONE BIG SKY CENTER
Billings Montana
MEDICAL OFFICE - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 32865000 Land Acquisition $ 6800000 $3400 SF
Construction $ 42000000 $21000 SF
Debt Financing $ 61034000 Development $ 10500000 25
Financing $ 3451000 65 Loan to Project Costs
TI Allowances $ 27000000 $13500 SF
Contingency $ 4148000 5
TOTAL $ 93899000 TOTAL $ 93899000 $46950 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $4250 $4378 $4509 $4644 $4783 $4927 $5075 $5227 $5384 $5545 $5712 $5883 $6059 $6241 $6429 $6621 3
OPERATING REVENUES
Office Rent (NNN) 8500000 8755000 9018000 9288000 9567000 9854000 10149000 10454000 10768000 11091000 11423000 11766000 12119000 12483000 12857000 13243000
Expense Reimbursements 3531000 3601000 3674000 3747000 3822000 3898000 3976000 4056000 4137000 4220000 4304000 4390000 4478000 4568000 4659000 4752000
Vacancy Allowance (1203000) (927000) (635000) (652000) (669000) (688000) (706000) (726000) (745000) (766000) (786000) (808000) (830000) (853000) (876000) (900000)
Total Revenues 10828000 11429000 12057000 12383000 12720000 13064000 13419000 13784000 14160000 14545000 14941000 15348000 15767000 16198000 16640000 17095000
OPERATING EXPENSES
Operating Expenses 2568000 2619000 2672000 2725000 2780000 2835000 2892000 2950000 3009000 3069000 3130000 3193000 3257000 3322000 3388000 3456000
Property Taxes 963000 982000 1002000 1022000 1042000 1063000 1084000 1106000 1128000 1151000 1174000 1197000 1221000 1246000 1271000 1296000
Total Expenses 3531000 3601000 3674000 3747000 3822000 3898000 3976000 4056000 4137000 4220000 4304000 4390000 4478000 4568000 4659000 4752000
NET OPERATING INCOME 7297000 7828000 8383000 8636000 8898000 9166000 9443000 9728000 10023000 10325000 10637000 10958000 11289000 11630000 11981000 12343000
Annual Debt Service (500 25 -yr Amort) 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584
DSCR 170x 183x 196x 202x 208x 214x 221x 227x 234x 241x 248x 256x 264x 272x 280x
Mortgage Balance $59775536 $58452686 $57062157 $55600486 $54064033 $52448972 $50751281 $48966733 $47090885 $45119064 $43046362 $40867616 $38577401 $36170015 $33639462
BEFORE TAX CASH FLOW 3015416 3546416 4101416 4354416 4616416 4884416 5161416 5446416 5741416 6043416 6355416 6676416 7007416 7348416 7699416
REVERSION CALCULATIONS
Project NOI (Year 21) 12343000
Cap Rate 800
Gross Sales Proceeds 154287500
Less Selling Costs 30 (4628625)
Net Sales Proceeds 149658875
Less Mortgage Balance (33639462)
Net Reversion Proceeds 116019413
Gross Rental Rate $6016 $6178 $6346 $6518 $6695 $6876 $7063 $7255 $7453 $7656 $7864 $8078 $8299 $8526 $8758 $8998
Equity $ (32865000) 00 00 3015416 3546416 4101416 4354416 4616416 4884416 5161416 5446416 5741416 6043416 6355416 6676416 7007416 7348416 123718829
ROE 1460 IRR 92 108 125 132 140 149 157 166 175 184 193 203 213 224 234
ONE BIG SKY CENTER
Billings Montana
MEDICAL OFFICE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 21327000 Land Acquisition $ 4375000 $2500 SF
Construction $ 27300000 $15600 SF
Debt Financing $ 39607000 Development $ 6825000 25
Financing $ 2241000 65 Loan to Project Costs
TI Allowances $ 17500000 $10000 SF
Contingency $ 2693000 5
TOTAL $ 60934000 TOTAL $ 60934000 $34819 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3165 $3260 $3358 $3458 $3562 $3669 $3779 $3893 $4009 $4130 $4253 $4381 $4513 $4648 $4787 $4931 $5079 $5231 $5388 $5550 $5716 3
OPERATING REVENUES
Office Rent (NNN) 5539000 5705000 5876000 6052000 6234000 6421000 6614000 6812000 7016000 7227000 7444000 7667000 7897000 8134000 8378000 8629000 8888000 9155000 9429000 9712000 10004000
Expense Reimbursements 2299000 2345000 2392000 2439000 2489000 2538000 2589000 2641000 2694000 2747000 2802000 2859000 2916000 2974000 3033000 3094000 3156000 3219000 3284000 3349000 3417000
Vacancy Allowance (784000) (604000) (413000) (425000) (436000) (448000) (460000) (473000) (486000) (499000) (512000) (526000) (541000) (555000) (571000) (586000) (602000) (619000) (636000) (653000) (671000)
Total Revenues 7054000 7446000 7855000 8066000 8287000 8511000 8743000 8980000 9224000 9475000 9734000 10000000 10272000 10553000 10840000 11137000 11442000 11755000 12077000 12408000 12750000
OPERATING EXPENSES
Operating Expenses 1672000 1705000 1740000 1774000 1810000 1846000 1883000 1921000 1959000 1998000 2038000 2079000 2121000 2163000 2206000 2250000 2295000 2341000 2388000 2436000 2485000
Property Taxes 627000 640000 652000 665000 679000 692000 706000 720000 735000 749000 764000 780000 795000 811000 827000 844000 861000 878000 896000 913000 932000
Total Expenses 2299000 2345000 2392000 2439000 2489000 2538000 2589000 2641000 2694000 2747000 2802000 2859000 2916000 2974000 3033000 3094000 3156000 3219000 3284000 3349000 3417000
NET OPERATING INCOME 4755000 5101000 5463000 5627000 5798000 5973000 6154000 6339000 6530000 6728000 6932000 7141000 7356000 7579000 7807000 8043000 8286000 8536000 8793000 9059000 9333000
Annual Debt Service (500 25 -yr Amort) 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463
DSCR 171x 184x 197x 203x 209x 215x 221x 228x 235x 242x 249x 257x 265x 273x 281x 289x 298x 307x 316x 326x
Mortgage Balance $38790341 $37931899 $37029538 $36081011 $35083955 $34035888 $32934200 $31776148 $30558847 $29279267 $27934221 $26520360 $25034163 $23471930 $21829770 $20103593 $18289103 $16381779 $14376873 $12269393
BEFORE TAX CASH FLOW 1976537 2322537 2684537 2848537 3019537 3194537 3375537 3560537 3751537 3949537 4153537 4362537 4577537 4800537 5028537 5264537 5507537 5757537 6014537 6280537
REVERSION CALCULATIONS
Project NOI (Year 21) 9333000
Cap Rate 800
Gross Sales Proceeds 116662500
Less Selling Costs 30 (3499875)
Net Sales Proceeds 113162625
Less Mortgage Balance (12269393)
Net Reversion Proceeds 100893232
Gross Rental Rate $4479 $4600 $4725 $4852 $4985 $5119 $5259 $5402 $5549 $5699 $5855 $6015 $6179 $6347 $6521 $6699 $6882 $7071 $7265 $7463 $7669
Equity $ (21327000) 00 00 1976537 2322537 2684537 2848537 3019537 3194537 3375537 3560537 3751537 3949537 4153537 4362537 4577537 4800537 5028537 5264537 5507537 5757537 6014537 107173769
ROE 1444 IRR 93 109 126 134 142 150 158 167 176 185 195 205 215 225 236 247 258 270 282 294
ONE BIG SKY CENTER
Billings Montana
AMBULATORY MEDICAL WELLNESS - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 43599000 Land Acquisition $ - $000 SF
Construction $ 122000000 $30500 SF
Debt Financing $ 247062000 FFampE $ 34800000 $8700 SF
Development $ 52700000 25
Financing $ 13320000 85 Loan to Project Costs
Tenant Improvements $ 54000000 $13500 SF
Contingency $ 13841000 5
TOTAL $ 290661000 TOTAL $ 290661000 $72665 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $5055 $5207 $5363 $5524 $5689 $5860 $6036 $6217 $6404 $6596 $6793 $6997 $7207 $7423 $7646 $7876 3
OPERATING REVENUES
Rent (NNN) 20220000 20827000 21451000 22095000 22758000 23441000 24144000 24868000 25614000 26383000 27174000 27989000 28829000 29694000 30585000 31502000
Expense Reimbursements 8345000 8512000 8682000 8856000 9033000 9213000 9398000 9585000 9778000 9973000 10173000 10376000 10584000 10795000 11011000 11231000
Vacancy Allowance (2857000) (2200000) (1507000) (1548000) (1590000) (1633000) (1677000) (1723000) (1770000) (1818000) (1867000) (1918000) (1971000) (2024000) (2080000) (2137000)
Total Revenues 25708000 27139000 28626000 29403000 30201000 31021000 31865000 32730000 33622000 34538000 35480000 36447000 37442000 38465000 39516000 40596000
OPERATING EXPENSES
Operating Expenses 6419000 6547000 6678000 6812000 6948000 7087000 7229000 7373000 7521000 7671000 7825000 7981000 8141000 8304000 8470000 8639000
Property Taxes 1926000 1965000 2004000 2044000 2085000 2126000 2169000 2212000 2257000 2302000 2348000 2395000 2443000 2491000 2541000 2592000
Total Expenses 8345000 8512000 8682000 8856000 9033000 9213000 9398000 9585000 9778000 9973000 10173000 10376000 10584000 10795000 11011000 11231000
NET OPERATING INCOME 17363000 18627000 19944000 20547000 21168000 21808000 22467000 23145000 23844000 24565000 25307000 26071000 26858000 27670000 28505000 29365000
Annual Debt Service (450 25 -yr Amort) 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010
DSCR 105x 113x 121x 125x 128x 132x 136x 140x 145x 149x 154x 158x 163x 168x 173x
Mortgage Balance $241588811 $235864184 $229876570 $223613885 $217063493 $210212178 $203046115 $195550843 $187711241 $179511488 $170935040 $161964592 $152582043 $142768461 $132504045
BEFORE TAX CASH FLOW 883990 2147990 3464990 4067990 4688990 5328990 5987990 6665990 7364990 8085990 8827990 9591990 10378990 11190990 12025990
REVERSION CALCULATIONS
Project NOI (Year 16) 29365000
Cap Rate 800
Gross Sales Proceeds 367062500
Less Selling Costs 30 (11011875)
Net Sales Proceeds 356050625
Less Mortgage Balance (132504045)
Net Reversion Proceeds 223546580
Gross Rental Rate $7141 $7335 $7533 $7738 $7948 $8164 $8386 $8613 $8848 $9089 $9337 $9591 $9853 $10122 $10399 $10683
Equity $ (43599000) 00 00 883990 2147990 3464990 4067990 4688990 5328990 5987990 6665990 7364990 8085990 8827990 9591990 10378990 11190990 235572570
ROE 1476 IRR 20 49 79 93 108 122 137 153 169 185 202 220 238 257 276
ONE BIG SKY CENTER
Billings Montana
AMBULATORY MEDICAL WELLNESS - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 6081000 Land Acquisition $ - $000 SF
Construction $ 17025000 $22700 SF
Debt Financing $ 34457000 FFampE $ 4875000 $6500 SF
Development $ 7350000 25
Financing $ 1858000 85 Loan to Project Costs
Tenant Improvements $ 7500000 $10000 SF
Contingency $ 1930000 5
TOTAL $ 40538000 TOTAL $ 40538000 $54051 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3760 $3873 $3989 $4109 $4232 $4359 $4490 $4624 $4763 $4906 $5053 $5205 $5361 $5522 $5687 $5858 $6034 $6215 $6401 $6593 $6791 3
OPERATING REVENUES
Rent (NNN) 2820000 2905000 2992000 3081000 3174000 3269000 3367000 3468000 3572000 3679000 3790000 3904000 4021000 4141000 4266000 4393000 4525000 4661000 4801000 4945000 5093000
Expense Reimbursements 1165000 1188000 1212000 1236000 1261000 1286000 1312000 1338000 1365000 1392000 1420000 1448000 1477000 1507000 1537000 1568000 1599000 1632000 1664000 1697000 1731000
Vacancy Allowance (399000) (307000) (210000) (216000) (222000) (228000) (234000) (240000) (247000) (254000) (261000) (268000) (275000) (282000) (290000) (298000) (306000) (315000) (323000) (332000) (341000)
Total Revenues 3586000 3786000 3994000 4101000 4213000 4327000 4445000 4566000 4690000 4817000 4949000 5084000 5223000 5366000 5513000 5663000 5818000 5978000 6142000 6310000 6483000
OPERATING EXPENSES
Operating Expenses 896000 914000 932000 951000 970000 989000 1009000 1029000 1050000 1071000 1092000 1114000 1136000 1159000 1182000 1206000 1230000 1255000 1280000 1305000 1331000
Property Taxes 269000 274000 280000 285000 291000 297000 303000 309000 315000 321000 328000 334000 341000 348000 355000 362000 369000 377000 384000 392000 400000
Total Expenses 1165000 1188000 1212000 1236000 1261000 1286000 1312000 1338000 1365000 1392000 1420000 1448000 1477000 1507000 1537000 1568000 1599000 1632000 1664000 1697000 1731000
NET OPERATING INCOME 2421000 2598000 2782000 2865000 2952000 3041000 3133000 3228000 3325000 3425000 3529000 3636000 3746000 3859000 3976000 4095000 4219000 4346000 4478000 4613000 4752000
Annual Debt Service (450 25 -yr Amort) 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278
DSCR 105x 113x 121x 125x 128x 132x 136x 140x 145x 149x 154x 158x 163x 168x 173x 178x 184x 189x 195x 201x
Mortgage Balance $33693671 $32895274 $32060199 $31186761 $30273198 $29317665 $28318236 $27272893 $26179527 $25035932 $23839800 $22588718 $21280162 $19911491 $18479944 $16982631 $15416532 $13778487 $12065191 $10273186
BEFORE TAX CASH FLOW 122722 299722 483722 566722 653722 742722 834722 929722 1026722 1126722 1230722 1337722 1447722 1560722 1677722 1796722 1920722 2047722 2179722 2314722
REVERSION CALCULATIONS
Project NOI (Year 16) 4752000
Cap Rate 800
Gross Sales Proceeds 59400000
Less Selling Costs 30 (1782000)
Net Sales Proceeds 57618000
Less Mortgage Balance (18479944)
Net Reversion Proceeds 39138056
Gross Rental Rate $5313 $5457 $5605 $5756 $5913 $6073 $6239 $6408 $6583 $6761 $6947 $7136 $7331 $7531 $7737 $7948 $8165 $8391 $8620 $8856 $9099
Equity $ (6081000) 00 00 122722 299722 483722 566722 653722 742722 834722 929722 1026722 1126722 1230722 1337722 1447722 1560722 1677722 1796722 1920722 2047722 2179722 41452778
ROE 1418 IRR 20 49 80 93 108 122 137 153 169 185 202 220 238 257 276 295 316 337 358 381
ONE BIG SKY CENTER
Billings Montana
BIOSCIENCE - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 24494000 Land Acquisition $ 4250000 $3400 SF
Construction $ 26125000 $20900 SF
Debt Financing $ 45490000 FFampE $ 4375000 $3500 SF
Development $ 12000000 25
Financing $ 2604000 65 Loan to Project Costs
TI Allowances $ 17500000 $14000 SF
Contingency $ 3130000 5
TOTAL $ 69984000 TOTAL $ 69984000 $55987 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $4975 $5124 $5278 $5436 $5599 $5767 $5940 $6119 $6302 $6491 $6686 $6887 $7093 $7306 $7525 $7751 3
OPERATING REVENUES
Rent (NNN) 6219000 6405000 6597000 6795000 6999000 7209000 7426000 7648000 7878000 8114000 8357000 8608000 8866000 9132000 9406000 9689000
Expense Reimbursements 2608000 2660000 2713000 2768000 2823000 2880000 2937000 2996000 3055000 3116000 3179000 3243000 3307000 3374000 3441000 3510000
Vacancy Allowance (883000) (680000) (466000) (478000) (491000) (504000) (518000) (532000) (547000) (562000) (577000) (593000) (609000) (625000) (642000) (660000)
Total Revenues 7944000 8385000 8844000 9085000 9331000 9585000 9845000 10112000 10386000 10668000 10959000 11258000 11564000 11881000 12205000 12539000
OPERATING EXPENSES
Operating Expenses 2006000 2046000 2087000 2129000 2171000 2215000 2259000 2304000 2350000 2397000 2445000 2494000 2544000 2595000 2647000 2700000
Property Taxes 602000 614000 626000 639000 652000 665000 678000 692000 705000 719000 734000 749000 763000 779000 794000 810000
Total Expenses 2608000 2660000 2713000 2768000 2823000 2880000 2937000 2996000 3055000 3116000 3179000 3243000 3307000 3374000 3441000 3510000
NET OPERATING INCOME 5336000 5725000 6131000 6317000 6508000 6705000 6908000 7116000 7331000 7552000 7780000 8015000 8257000 8507000 8764000 9029000
Annual Debt Service (500 25 -yr Amort) 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160
DSCR 167x 179x 192x 198x 204x 210x 216x 223x 230x 237x 244x 251x 259x 267x 275x
Mortgage Balance $44552039 $43566089 $42529697 $41440281 $40295128 $39091387 $37826060 $36495997 $35097886 $33628244 $32083413 $30459545 $28752597 $26958318 $25072240
BEFORE TAX CASH FLOW 2144840 2533840 2939840 3125840 3316840 3513840 3716840 3924840 4139840 4360840 4588840 4823840 5065840 5315840 5572840
REVERSION CALCULATIONS
Project NOI (Year 16) 9029000
Cap Rate 800
Gross Sales Proceeds 112862500
Less Selling Costs 30 (3385875)
Net Sales Proceeds 109476625
Less Mortgage Balance (25072240)
Net Reversion Proceeds 84404385
Gross Rental Rate $7062 $7252 $7448 $7650 $7858 $8071 $8290 $8515 $8746 $8984 $9229 $9481 $9738 $10005 $10278 $10559
Equity $ (24494000) 00 00 2144840 2533840 2939840 3125840 3316840 3513840 3716840 3924840 4139840 4360840 4588840 4823840 5065840 5315840 89977224
ROE 1428 IRR 88 103 120 128 135 143 152 160 169 178 187 197 207 217 228
ONE BIG SKY CENTER
Billings Montana
BIOSCIENCE - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 5868000 Land Acquisition $ 1250000 $2500 SF
Construction $ 7750000 $15500 SF
Debt Financing $ 10897000 FFampE $ 1250000 $2500 SF
Development $ 3563000 25
Public Investment $ 4000000 Financing $ 773000 65 Loan to Project Costs
TI Allowances $ 5250000 $10500 SF
Contingency $ 929000 5
TOTAL $ 20765000 TOTAL $ 20765000 $41530 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2985 $3075 $3167 $3262 $3360 $3460 $3564 $3671 $3781 $3895 $4012 $4132 $4256 $4384 $4515 $4651 $4790 $4934 $5082 $5234 $5391 3
OPERATING REVENUES
Rent (NNN) 1493000 1537000 1583000 1631000 1680000 1730000 1782000 1836000 1891000 1947000 2006000 2066000 2128000 2192000 2258000 2325000 2395000 2467000 2541000 2617000 2696000
Expense Reimbursements 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
Vacancy Allowance (197000) (152000) (104000) (107000) (110000) (113000) (116000) (119000) (123000) (126000) (129000) (133000) (137000) (141000) (144000) (148000) (153000) (157000) (161000) (166000) (170000)
Total Revenues 1774000 1873000 1976000 2031000 2088000 2145000 2205000 2266000 2328000 2392000 2459000 2528000 2597000 2670000 2745000 2820000 2898000 2980000 3063000 3148000 3236000
OPERATING EXPENSES
Operating Expenses 299000 305000 311000 317000 324000 330000 337000 343000 350000 357000 364000 372000 379000 387000 395000 402000 410000 419000 427000 436000 444000
Property Taxes 179000 183000 186000 190000 194000 198000 202000 206000 210000 214000 218000 223000 227000 232000 236000 241000 246000 251000 256000 261000 266000
Total Expenses 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
NET OPERATING INCOME 1296000 1385000 1479000 1524000 1570000 1617000 1666000 1717000 1768000 1821000 1877000 1933000 1991000 2051000 2114000 2177000 2242000 2310000 2380000 2451000 2526000
Annual Debt Service (500 25 -yr Amort) 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433
DSCR 170x 181x 193x 199x 205x 212x 218x 225x 231x 238x 246x 253x 260x 268x 277x 285x 293x 302x 311x 321x
Mortgage Balance $10672314 $10436133 $10187868 $9926901 $9652583 $9364230 $9061125 $8742512 $8407599 $8055550 $7685490 $7296497 $6887603 $6457788 $6005984 $5531064 $5031847 $4507088 $3955482 $3375655
BEFORE TAX CASH FLOW 531567 620567 714567 759567 805567 852567 901567 952567 1003567 1056567 1112567 1168567 1226567 1286567 1349567 1412567 1477567 1545567 1615567 1686567
REVERSION CALCULATIONS
Project NOI (Year 21) 2526000
Cap Rate 800
Gross Sales Proceeds 31575000
Less Selling Costs 30 (947250)
Net Sales Proceeds 30627750
Less Mortgage Balance (3375655)
Net Reversion Proceeds 27252095
Gross Rental Rate $3942 $4050 $4160 $4276 $4396 $4516 $4642 $4770 $4902 $5036 $5176 $5322 $5468 $5622 $5778 $5936 $6102 $6274 $6448 $6628 $6812
Equity $ (5868000) 00 00 531567 620567 714567 759567 805567 852567 901567 952567 1003567 1056567 1112567 1168567 1226567 1286567 1349567 1412567 1477567 1545567 1615567 28938662
ROE 1421 IRR 91 106 122 129 137 145 154 162 171 180 190 199 209 219 230 241 252 263 275 287
ONE BIG SKY CENTER
Billings Montana
BIOSCIENCE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 7268000 Land Acquisition $ 1250000 $2500 SF
Construction $ 7750000 $15500 SF
Debt Financing $ 13497000 FFampE $ 1250000 $2500 SF
Development $ 3563000 25
Financing $ 773000 65 Loan to Project Costs
TI Allowances $ 5250000 $10500 SF
Contingency $ 929000 5
TOTAL $ 20765000 TOTAL $ 20765000 $41530 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3700 $3811 $3925 $4043 $4164 $4289 $4418 $4551 $4687 $4828 $4972 $5122 $5275 $5434 $5597 $5764 $5937 $6116 $6299 $6488 $6683 3
OPERATING REVENUES
Rent (NNN) 1850000 1906000 1963000 2022000 2082000 2145000 2209000 2275000 2344000 2414000 2486000 2561000 2638000 2717000 2798000 2882000 2969000 3058000 3150000 3244000 3341000
Expense Reimbursements 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
Vacancy Allowance (233000) (180000) (123000) (126000) (130000) (134000) (137000) (141000) (145000) (149000) (153000) (158000) (162000) (167000) (171000) (176000) (181000) (186000) (192000) (197000) (203000)
Total Revenues 2095000 2214000 2337000 2403000 2470000 2539000 2611000 2683000 2759000 2836000 2915000 2998000 3082000 3169000 3258000 3349000 3444000 3542000 3641000 3744000 3848000
OPERATING EXPENSES
Operating Expenses 299000 305000 311000 317000 324000 330000 337000 343000 350000 357000 364000 372000 379000 387000 395000 402000 410000 419000 427000 436000 444000
Property Taxes 179000 183000 186000 190000 194000 198000 202000 206000 210000 214000 218000 223000 227000 232000 236000 241000 246000 251000 256000 261000 266000
Total Expenses 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
NET OPERATING INCOME 1617000 1726000 1840000 1896000 1952000 2011000 2072000 2134000 2199000 2265000 2333000 2403000 2476000 2550000 2627000 2706000 2788000 2872000 2958000 3047000 3138000
Annual Debt Service (500 25 -yr Amort) 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825
DSCR 171x 182x 194x 200x 206x 212x 219x 225x 232x 239x 246x 254x 262x 269x 277x 286x 294x 303x 312x 322x
Mortgage Balance $13218704 $12926171 $12618670 $12295438 $11955668 $11598515 $11223089 $10828456 $10413633 $9977586 $9519231 $9037425 $8530969 $7998602 $7438998 $6850764 $6232434 $5582470 $4899252 $4181079
BEFORE TAX CASH FLOW 670175 779175 893175 949175 1005175 1064175 1125175 1187175 1252175 1318175 1386175 1456175 1529175 1603175 1680175 1759175 1841175 1925175 2011175 2100175
REVERSION CALCULATIONS
Project NOI (Year 21) 3138000
Cap Rate 800
Gross Sales Proceeds 39225000
Less Selling Costs 30 (1176750)
Net Sales Proceeds 38048250
Less Mortgage Balance (4181079)
Net Reversion Proceeds 33867171
Gross Rental Rate $4656 $4788 $4920 $5058 $5200 $5346 $5496 $5648 $5808 $5970 $6136 $6312 $6488 $6672 $6858 $7050 $7250 $7456 $7666 $7882 $8102
Equity $ (7268000) 00 00 670175 779175 893175 949175 1005175 1064175 1125175 1187175 1252175 1318175 1386175 1456175 1529175 1603175 1680175 1759175 1841175 1925175 2011175 35967346
ROE 1427 IRR 92 107 123 131 138 146 155 163 172 181 191 200 210 221 231 242 253 265 277 289
ONE BIG SKY CENTER
Billings Montana
COMMERCIAL OFFICE - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 48554000 Land Acquisition $ 11900000 $3400 SF
Construction $ 68250000 $19500 SF
Debt Financing $ 90173000 Development $ 17063000 25
Financing $ 5025000 65 Loan to Project Costs
TI Allowances $ 30450000 $8700 SF
Contingency $ 6039000 5
TOTAL $ 138727000 TOTAL $ 138727000 $39636 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3570 $3677 $3787 $3901 $4018 $4139 $4263 $4391 $4522 $4658 $4798 $4942 $5090 $5243 $5400 $5562 3
OPERATING REVENUES
Office Rent (NNN) 12495000 12870000 13256000 13654000 14063000 14485000 14920000 15367000 15828000 16303000 16792000 17296000 17815000 18349000 18900000 19467000
Expense Reimbursements 5897000 6015000 6136000 6258000 6383000 6511000 6641000 6774000 6909000 7048000 7188000 7332000 7479000 7628000 7781000 7937000
Vacancy Allowance (1839000) (1416000) (970000) (996000) (1022000) (1050000) (1078000) (1107000) (1137000) (1168000) (1199000) (1231000) (1265000) (1299000) (1334000) (1370000)
Total Revenues 16553000 17469000 18422000 18916000 19424000 19946000 20483000 21034000 21600000 22183000 22781000 23397000 24029000 24678000 25347000 26034000
OPERATING EXPENSES
Operating Expenses 4493000 4583000 4675000 4768000 4863000 4961000 5060000 5161000 5264000 5370000 5477000 5586000 5698000 5812000 5928000 6047000
Property Taxes 1404000 1432000 1461000 1490000 1520000 1550000 1581000 1613000 1645000 1678000 1711000 1746000 1781000 1816000 1853000 1890000
Total Expenses 5897000 6015000 6136000 6258000 6383000 6511000 6641000 6774000 6909000 7048000 7188000 7332000 7479000 7628000 7781000 7937000
NET OPERATING INCOME 10656000 11454000 12286000 12658000 13041000 13435000 13842000 14260000 14691000 15135000 15593000 16065000 16550000 17050000 17566000 18097000
Annual Debt Service (500 25 -yr Amort) 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709
DSCR 168x 181x 194x 200x 206x 212x 219x 225x 232x 239x 247x 254x 262x 270x 278x
Mortgage Balance $88313717 $86359309 $84304910 $82145404 $79875414 $77489287 $74981080 $72344550 $69573129 $66659917 $63597660 $60378732 $56995118 $53438391 $49699695
BEFORE TAX CASH FLOW 4330291 5128291 5960291 6332291 6715291 7109291 7516291 7934291 8365291 8809291 9267291 9739291 10224291 10724291 11240291
REVERSION CALCULATIONS
Project NOI (Year 16) 18097000
Cap Rate 800
Gross Sales Proceeds 226212500
Less Selling Costs 30 (6786375)
Net Sales Proceeds 219426125
Less Mortgage Balance (49699695)
Net Reversion Proceeds 169726430
Gross Rental Rate $5255 $5396 $5541 $5689 $5842 $5999 $6160 $6326 $6496 $6672 $6851 $7037 $7227 $7422 $7623 $7830
Equity $ (48554000) 00 00 4330291 5128291 5960291 6332291 6715291 7109291 7516291 7934291 8365291 8809291 9267291 9739291 10224291 10724291 180966721
ROE 1446 IRR 89 106 123 130 138 146 155 163 172 181 191 201 211 221 232
ONE BIG SKY CENTER
Billings Montana
COMMERCIAL OFFICE - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 11276000 Land Acquisition $ 3750000 $2500 SF
Construction $ 21750000 $14500 SF
Debt Financing $ 20942000 Development $ 5438000 25
Financing $ 1603000 65 Loan to Project Costs
Public Investment $ 12000000 TI Allowances $ 9750000 $6500 SF
Contingency $ 1927000 5
TOTAL $ 44218000 TOTAL $ 44218000 $29479 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $1940 $1998 $2058 $2120 $2183 $2249 $2316 $2386 $2458 $2531 $2607 $2685 $2766 $2849 $2934 $3022 $3113 $3207 $3303 $3402 $3504 3
OPERATING REVENUES
Office Rent (NNN) 2910000 2997000 3087000 3180000 3275000 3373000 3475000 3579000 3686000 3797000 3911000 4028000 4149000 4273000 4402000 4534000 4670000 4810000 4954000 5103000 5256000
Expense Reimbursements 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
Vacancy Allowance (439000) (338000) (231000) (237000) (244000) (250000) (257000) (264000) (271000) (278000) (286000) (293000) (301000) (309000) (318000) (326000) (335000) (344000) (353000) (363000) (373000)
Total Revenues 3949000 4167000 4394000 4511000 4631000 4755000 4883000 5013000 5147000 5285000 5427000 5573000 5722000 5876000 6034000 6197000 6364000 6535000 6712000 6894000 7080000
OPERATING EXPENSES
Operating Expenses 1030000 1051000 1072000 1093000 1115000 1137000 1160000 1183000 1207000 1231000 1256000 1281000 1306000 1332000 1359000 1386000 1414000 1442000 1471000 1501000 1531000
Property Taxes 448000 457000 466000 475000 485000 495000 505000 515000 525000 535000 546000 557000 568000 580000 591000 603000 615000 627000 640000 653000 666000
Total Expenses 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
NET OPERATING INCOME 2471000 2659000 2856000 2943000 3031000 3123000 3218000 3315000 3415000 3519000 3625000 3735000 3848000 3964000 4084000 4208000 4335000 4466000 4601000 4740000 4883000
Annual Debt Service (500 25 -yr Amort) 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098
DSCR 168x 181x 194x 200x 206x 213x 219x 226x 232x 240x 247x 254x 262x 270x 278x 286x 295x 304x 313x 323x
Mortgage Balance $20510195 $20056299 $19579180 $19077651 $18550463 $17996303 $17413791 $16801477 $16157835 $15481264 $14770078 $14022506 $13236687 $12410664 $11542380 $10629673 $9670270 $8661783 $7601699 $6487379
BEFORE TAX CASH FLOW 1001902 1189902 1386902 1473902 1561902 1653902 1748902 1845902 1945902 2049902 2155902 2265902 2378902 2494902 2614902 2738902 2865902 2996902 3131902 3270902
REVERSION CALCULATIONS
Project NOI (Year 21) 4883000
Cap Rate 800
Gross Sales Proceeds 61037500
Less Selling Costs 30 (1831125)
Net Sales Proceeds 59206375
Less Mortgage Balance (6487379)
Net Reversion Proceeds 52718996
Gross Rental Rate $2925 $3003 $3083 $3165 $3250 $3337 $3427 $3518 $3612 $3709 $3809 $3911 $4015 $4123 $4235 $4349 $4466 $4586 $4710 $4838 $4969
Equity $ (11276000) 00 00 1001902 1189902 1386902 1473902 1561902 1653902 1748902 1845902 1945902 2049902 2155902 2265902 2378902 2494902 2614902 2738902 2865902 2996902 3131902 55989898
ROE 1426 IRR 89 106 123 131 139 147 155 164 173 182 191 201 211 221 232 243 254 266 278 290
ONE BIG SKY CENTER
Billings Montana
COMMERCIAL OFFICE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 15476000 Land Acquisition $ 3750000 $2500 SF
Construction $ 21750000 $14500 SF
Debt Financing $ 28742000 Development $ 5438000 25
Financing $ 1603000 65 Loan to Project Costs
TI Allowances $ 9750000 $6500 SF
Contingency $ 1927000 5
TOTAL $ 44218000 TOTAL $ 44218000 $29479 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2655 $2735 $2817 $2901 $2988 $3078 $3170 $3265 $3363 $3464 $3568 $3675 $3785 $3899 $4016 $4136 $4260 $4388 $4520 $4656 $4795 3
OPERATING REVENUES
Office Rent (NNN) 3983000 4102000 4225000 4352000 4482000 4617000 4755000 4898000 5045000 5196000 5352000 5513000 5678000 5848000 6024000 6205000 6391000 6582000 6780000 6983000 7193000
Expense Reimbursements 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
Vacancy Allowance (546000) (421000) (288000) (296000) (304000) (312000) (321000) (330000) (339000) (348000) (358000) (368000) (378000) (388000) (399000) (410000) (421000) (433000) (445000) (457000) (470000)
Total Revenues 4915000 5189000 5475000 5624000 5778000 5937000 6099000 6266000 6438000 6614000 6796000 6983000 7174000 7372000 7575000 7784000 7999000 8218000 8446000 8680000 8920000
OPERATING EXPENSES
Operating Expenses 1030000 1051000 1072000 1093000 1115000 1137000 1160000 1183000 1207000 1231000 1256000 1281000 1306000 1332000 1359000 1386000 1414000 1442000 1471000 1501000 1531000
Property Taxes 448000 457000 466000 475000 485000 495000 505000 515000 525000 535000 546000 557000 568000 580000 591000 603000 615000 627000 640000 653000 666000
Total Expenses 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
NET OPERATING INCOME 3437000 3681000 3937000 4056000 4178000 4305000 4434000 4568000 4706000 4848000 4994000 5145000 5300000 5460000 5625000 5795000 5970000 6149000 6335000 6526000 6723000
Annual Debt Service (500 25 -yr Amort) 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274
DSCR 170x 183x 195x 201x 207x 214x 220x 227x 233x 240x 248x 255x 263x 271x 279x 287x 296x 305x 314x 324x
Mortgage Balance $28149367 $27526413 $26871588 $26183261 $25459718 $24699157 $23899684 $23059309 $22175938 $21247373 $20271300 $19245290 $18166787 $17033106 $15841423 $14588772 $13272032 $11887926 $10433007 $8903651
BEFORE TAX CASH FLOW 1420726 1664726 1920726 2039726 2161726 2288726 2417726 2551726 2689726 2831726 2977726 3128726 3283726 3443726 3608726 3778726 3953726 4132726 4318726 4509726
REVERSION CALCULATIONS
Project NOI (Year 21) 6723000
Cap Rate 800
Gross Sales Proceeds 84037500
Less Selling Costs 30 (2521125)
Net Sales Proceeds 81516375
Less Mortgage Balance (8903651)
Net Reversion Proceeds 72612724
Gross Rental Rate $3641 $3740 $3842 $3947 $4055 $4166 $4280 $4397 $4518 $4641 $4769 $4901 $5035 $5173 $5316 $5463 $5613 $5767 $5927 $6091 $6260
Equity $ (15476000) 00 00 1420726 1664726 1920726 2039726 2161726 2288726 2417726 2551726 2689726 2831726 2977726 3128726 3283726 3443726 3608726 3778726 3953726 4132726 4318726 77122450
ROE 1434 IRR 92 108 124 132 140 148 156 165 174 183 192 202 212 223 233 244 255 267 279 291
ONE BIG SKY CENTER
Billings Montana
RETAIL DINING ENTERTAINMENT - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 33347000 Land Acquisition $ 9000000 $4000 SF
Construction $ 43875000 $19500 SF
Debt Financing $ 61929000 Development $ 8775000 20
Financing $ 3418000 65 Loan to Project Costs
TI Allowances $ 26100000 $11600 SF
Contingency $ 4108000 5
TOTAL $ 95276000 TOTAL $ 95276000 $42345 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Projected Sales per Square Foot $48000 $49440 $50923 $52451 $54024 $55645 $57315 $59034 $60805 $62629 $64508 $66443 $68437 $70490 $72604 $74782 3
Leasable Program 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3840 $3955 $4074 $4196 $4322 $4452 $4585 $4723 $4864 $5010 $5161 $5315 $5475 $5639 $5808 $5983 8 NNN Rent vs Tenant Sales
OPERATING REVENUES
Retail Rent (NNN) 8640000 8899000 9167000 9441000 9725000 10017000 10316000 10627000 10944000 11273000 11612000 11959000 12319000 12688000 13068000 13462000
Expense Reimbursements 3971000 4051000 4132000 4214000 4298000 4385000 4472000 4561000 4653000 4745000 4840000 4938000 5037000 5137000 5240000 5345000
Vacancy Allowance (1261000) (971000) (665000) (683000) (701000) (720000) (739000) (759000) (780000) (801000) (823000) (845000) (868000) (891000) (915000) (940000)
Total Revenues 11350000 11979000 12634000 12972000 13322000 13682000 14049000 14429000 14817000 15217000 15629000 16052000 16488000 16934000 17393000 17867000
OPERATING EXPENSES
Operating Expenses 2888000 2946000 3005000 3065000 3126000 3189000 3252000 3317000 3384000 3451000 3520000 3591000 3663000 3736000 3811000 3887000
Property Taxes 1083000 1105000 1127000 1149000 1172000 1196000 1220000 1244000 1269000 1294000 1320000 1347000 1374000 1401000 1429000 1458000
Total Expenses 3971000 4051000 4132000 4214000 4298000 4385000 4472000 4561000 4653000 4745000 4840000 4938000 5037000 5137000 5240000 5345000
NET OPERATING INCOME 7379000 7928000 8502000 8758000 9024000 9297000 9577000 9868000 10164000 10472000 10789000 11114000 11451000 11797000 12153000 12522000
Annual Debt Service (500 25 -yr Amort) 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369
DSCR 170x 182x 196x 202x 208x 214x 220x 227x 234x 241x 248x 256x 264x 272x 280x
Mortgage Balance $60652082 $59309834 $57898914 $56415809 $54856825 $53218081 $51495496 $49684779 $47781424 $45780688 $43677592 $41466897 $39143099 $36700410 $34132750
BEFORE TAX CASH FLOW 3034631 3583631 4157631 4413631 4679631 4952631 5232631 5523631 5819631 6127631 6444631 6769631 7106631 7452631 7808631
REVERSION CALCULATIONS
Project NOI (Year 21) 12522000
Cap Rate 800
Gross Sales Proceeds 156525000
Less Selling Costs 30 (4695750)
Net Sales Proceeds 151829250
Less Mortgage Balance (34132750)
Net Reversion Proceeds 117696500
Gross Rental Rate $5605 $5756 $5911 $6069 $6232 $6401 $6572 $6750 $6932 $7119 $7312 $7510 $7714 $7922 $8137 $8359
Equity $ (33347000) 00 00 3034631 3583631 4157631 4413631 4679631 4952631 5232631 5523631 5819631 6127631 6444631 6769631 7106631 7452631 125505131
ROE 1458 IRR 91 107 125 132 140 149 157 166 175 184 193 203 213 223 234
ONE BIG SKY CENTER
Billings Montana
RETAIL DINING ENTERTAINMENT - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 10981000 Land Acquisition $ 3000000 $3000 SF
Construction $ 14500000 $14500 SF
Debt Financing $ 20394000 Development $ 2900000 20
Financing $ 1124000 65 Loan to Project Costs
TI Allowances $ 8500000 $8500 SF
Contingency $ 1351000 5
TOTAL $ 31375000 TOTAL $ 31375000 $31375 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Projected Sales per Square Foot $36000 $37080 $38192 $39338 $40518 $41734 $42986 $44275 $45604 $46972 $48381 $49832 $51327 $52867 $54453 $56087 $57769 $59503 $61288 $63126 $65020 3
Leasable Program 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2880 $2966 $3055 $3147 $3241 $3339 $3439 $3542 $3648 $3758 $3870 $3987 $4106 $4229 $4356 $4487 $4622 $4760 $4903 $5050 $5202 8 NNN Rent vs Tenant Sales
OPERATING REVENUES
Retail Rent (NNN) 2880000 2966000 3055000 3147000 3241000 3339000 3439000 3542000 3648000 3758000 3870000 3987000 4106000 4229000 4356000 4487000 4622000 4760000 4903000 5050000 5202000
Expense Reimbursements 776000 791000 807000 824000 840000 857000 874000 891000 909000 928000 946000 965000 984000 1004000 1024000 1045000 1065000 1086000 1108000 1131000 1153000
Vacancy Allowance (366000) (282000) (193000) (199000) (204000) (210000) (216000) (222000) (228000) (234000) (241000) (248000) (255000) (262000) (269000) (277000) (284000) (292000) (301000) (309000) (318000)
Total Revenues 3290000 3475000 3669000 3772000 3877000 3986000 4097000 4211000 4329000 4452000 4575000 4704000 4835000 4971000 5111000 5255000 5403000 5554000 5710000 5872000 6037000
OPERATING EXPENSES
Operating Expenses 418000 426000 435000 444000 452000 462000 471000 480000 490000 500000 510000 520000 530000 541000 552000 563000 574000 585000 597000 609000 621000
Property Taxes 358000 365000 372000 380000 388000 395000 403000 411000 419000 428000 436000 445000 454000 463000 472000 482000 491000 501000 511000 522000 532000
Total Expenses 776000 791000 807000 824000 840000 857000 874000 891000 909000 928000 946000 965000 984000 1004000 1024000 1045000 1065000 1086000 1108000 1131000 1153000
NET OPERATING INCOME 2514000 2684000 2862000 2948000 3037000 3129000 3223000 3320000 3420000 3524000 3629000 3739000 3851000 3967000 4087000 4210000 4338000 4468000 4602000 4741000 4884000
Annual Debt Service (500 25 -yr Amort) 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656
DSCR 176x 188x 200x 206x 212x 219x 225x 232x 239x 246x 254x 261x 269x 277x 286x 294x 303x 312x 322x 331x
Mortgage Balance $19973495 $19531476 $19066842 $18578437 $18065044 $17525385 $16958116 $16361824 $15735025 $15076158 $14383581 $13655572 $12890316 $12085908 $11240344 $10351521 $9417223 $8435125 $7402781 $6317621
BEFORE TAX CASH FLOW 1083344 1253344 1431344 1517344 1606344 1698344 1792344 1889344 1989344 2093344 2198344 2308344 2420344 2536344 2656344 2779344 2907344 3037344 3171344 3310344
REVERSION CALCULATIONS
Project NOI (Year 21) 4884000
Cap Rate 800
Gross Sales Proceeds 61050000
Less Selling Costs 30 (1831500)
Net Sales Proceeds 59218500
Less Mortgage Balance (6317621)
Net Reversion Proceeds 52900879
Gross Rental Rate $3656 $3757 $3862 $3971 $4081 $4196 $4313 $4433 $4557 $4686 $4816 $4952 $5090 $5233 $5380 $5532 $5687 $5846 $6011 $6181 $6355
Equity $ (10981000) 00 00 1083344 1253344 1431344 1517344 1606344 1698344 1792344 1889344 1989344 2093344 2198344 2308344 2420344 2536344 2656344 2779344 2907344 3037344 3171344 56211224
ROE 1471 IRR 99 114 130 138 146 155 163 172 181 191 200 210 220 231 242 253 265 277 289 301
ONE BIG SKY CENTER
Billings Montana
HOTEL - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 39286000 Land Acquisition $ 12000000 $40000 KEY
Construction $ 64500000 $215000 KEY
Debt Financing $ 72960000 FFampE $ 8700000 $29000 KEY
Development $ 18300000 25
Financing $ 3972000 65 Loan to Project Costs
Contingency $ 4774000 5
TOTAL $ 112246000 TOTAL $ 112246000 $374153 KEY
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Number of Rooms 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Daily Rate (ADR) $29700 $30403 $30930 $31858 $32814 $33798 $34812 $35857 $36932 $38040 $39181 $40357 $41568 $42815 $44099 $45422 30
Occupancy Rate 680 720 750 750 750 750 750 750 750 750 750 750 750 750 750 750
OPERATING REVENUES
Rooms Revenue 22115000 23970000 25401000 26163000 26948000 27757000 28590000 29447000 30331000 31241000 32178000 33143000 34137000 35161000 36216000 37303000 639
FampB Revenue 11144000 12079000 12800000 13184000 13579000 13987000 14407000 14839000 15284000 15743000 16215000 16701000 17202000 17718000 18250000 18797000 322
Other Revenue 1350000 1463000 1550000 1597000 1645000 1694000 1745000 1797000 1851000 1907000 1964000 2023000 2083000 2146000 2210000 2277000 39
Total Revenues 34609000 37512000 39751000 40944000 42172000 43438000 44742000 46083000 47466000 48891000 50357000 51867000 53422000 55025000 56676000 58377000
OPERATING EXPENSES Rooms FampB Other
Departmental Expenses 13292000 14406000 15266000 15725000 16196000 16682000 17183000 17698000 18229000 18777000 19340000 19919000 20516000 21132000 21766000 22419000 213 700 586 384
Undistributed Expenses 8998000 9753000 10335000 10645000 10965000 11294000 11633000 11982000 12341000 12712000 13093000 13485000 13890000 14307000 14736000 15178000 260
Management Fee 1038000 1125000 1193000 1228000 1265000 1303000 1342000 1382000 1424000 1467000 1511000 1556000 1603000 1651000 1700000 1751000 30
Insurance 346000 375000 398000 409000 422000 434000 447000 461000 475000 489000 504000 519000 534000 550000 567000 584000 10
Property Taxes 1281000 1388000 1471000 1515000 1560000 1607000 1655000 1705000 1756000 1809000 1863000 1919000 1977000 2036000 2097000 2160000 37
CAPEX Reserve 346000 750000 1193000 1228000 1265000 1303000 1342000 1382000 1424000 1467000 1511000 1556000 1603000 1651000 1700000 1751000
Total Expenses 25301000 27797000 29856000 30750000 31673000 32623000 33602000 34610000 35649000 36721000 37822000 38954000 40123000 41327000 42566000 43843000
NET OPERATING INCOME 9308000 9715000 9895000 10194000 10499000 10815000 11140000 11473000 11817000 12170000 12535000 12913000 13299000 13698000 14110000 14534000
Annual Debt Service (500 25 -yr Amort) 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203
DSCR 182x 190x 193x 199x 205x 211x 218x 224x 231x 238x 245x 252x 260x 268x 276x
Mortgage Balance $71455633 $69874299 $68212062 $66464781 $64628106 $62697463 $60668045 $58534798 $56292410 $53935297 $51457590 $48853119 $46115398 $43237610 $40212589
BEFORE TAX CASH FLOW 4189797 4596797 4776797 5075797 5380797 5696797 6021797 6354797 6698797 7051797 7416797 7794797 8180797 8579797 8991797
REVERSION CALCULATIONS
Project NOI (Year 16) 14534000
Cap Rate 800
Gross Sales Proceeds 181675000
Less Selling Costs 30 (5450250)
Net Sales Proceeds 176224750
Less Mortgage Balance (40212589)
Net Reversion Proceeds 136012161
NOI Margin 269 259 249 249 249 249 249 249 249 249 249 249 249 249 249 249
Equity $ (39286000) 00 00 4189797 4596797 4776797 5075797 5380797 5696797 6021797 6354797 6698797 7051797 7416797 7794797 8180797 8579797 145003959
ROE 1455 IRR 107 117 122 129 137 145 153 162 171 179 189 198 208 218 229
ONE BIG SKY CENTER
Billings Montana
HOTEL - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 15855000 Land Acquisition $ 6000000 $30000 KEY
Construction $ 32000000 $160000 KEY
Debt Financing $ 29446000 FFampE $ 4000000 $20000 KEY
Development $ 9000000 25
Public Investment $ 10000000 Financing $ 1953000 65 Loan to Project Costs
Contingency $ 2348000 5
TOTAL $ 55301000 TOTAL $ 55301000 $276505 KEY
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Rooms 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200
Average Daily Rate (ADR) $17900 $18324 $18641 $19201 $19777 $20370 $20981 $21611 $22259 $22927 $23614 $24323 $25053 $25804 $26578 $27376 $28197 $29043 $29914 $30811 $31736 30
Occupancy Rate 680 720 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750
OPERATING REVENUES
Rooms Revenue 8886000 9631000 10206000 10512000 10828000 11153000 11487000 11832000 12187000 12552000 12929000 13317000 13716000 14128000 14552000 14988000 15438000 15901000 16378000 16869000 17375000 639
FampB Revenue 4478000 4853000 5143000 5297000 5456000 5620000 5788000 5962000 6141000 6325000 6515000 6711000 6912000 7119000 7333000 7553000 7779000 8013000 8253000 8500000 8755000 322
Other Revenue 542000 588000 623000 642000 661000 681000 701000 722000 744000 766000 789000 813000 837000 862000 888000 915000 942000 970000 1000000 1030000 1060000 39
Total Revenues 13906000 15072000 15972000 16451000 16945000 17454000 17976000 18516000 19072000 19643000 20233000 20841000 21465000 22109000 22773000 23456000 24159000 24884000 25631000 26399000 27190000
OPERATING EXPENSES Rooms FampB Other
Departmental Expenses 5341000 5788000 6134000 6318000 6508000 6703000 6903000 7111000 7325000 7544000 7770000 8004000 8244000 8491000 8746000 9008000 9278000 9557000 9844000 10138000 10442000 213 700 586 384
Undistributed Expenses 3616000 3919000 4153000 4277000 4406000 4538000 4674000 4814000 4959000 5107000 5261000 5419000 5581000 5748000 5921000 6099000 6281000 6470000 6664000 6864000 7069000 260
Management Fee 417000 452000 479000 494000 508000 524000 539000 555000 572000 589000 607000 625000 644000 663000 683000 704000 725000 747000 769000 792000 816000 30
Insurance 139000 151000 160000 165000 169000 175000 180000 185000 191000 196000 202000 208000 215000 221000 228000 235000 242000 249000 256000 264000 272000 10
Property Taxes 515000 558000 591000 609000 627000 646000 665000 685000 706000 727000 749000 771000 794000 818000 843000 868000 894000 921000 948000 977000 1006000 37
CAPEX Reserve 139000 301000 479000 494000 508000 524000 539000 555000 572000 589000 607000 625000 644000 663000 683000 704000 725000 747000 769000 792000 816000
Total Expenses 10167000 11169000 11996000 12357000 12726000 13110000 13500000 13905000 14325000 14752000 15196000 15652000 16122000 16604000 17104000 17618000 18145000 18691000 19250000 19827000 20421000
NET OPERATING INCOME 3739000 3903000 3976000 4094000 4219000 4344000 4476000 4611000 4747000 4891000 5037000 5189000 5343000 5505000 5669000 5838000 6014000 6193000 6381000 6572000 6769000
Annual Debt Service (500 25 -yr Amort) 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661
DSCR 181x 189x 192x 198x 204x 210x 217x 223x 230x 237x 244x 251x 259x 267x 274x 283x 291x 300x 309x 318x
Mortgage Balance $28838851 $28200639 $27529775 $26824588 $26083322 $25304132 $24485078 $23624118 $22719111 $21767801 $20767821 $19716680 $18611760 $17450311 $16229439 $14946106 $13597115 $12179106 $10688550 $9121735
BEFORE TAX CASH FLOW 1673339 1837339 1910339 2028339 2153339 2278339 2410339 2545339 2681339 2825339 2971339 3123339 3277339 3439339 3603339 3772339 3948339 4127339 4315339 4506339
REVERSION CALCULATIONS
Project NOI (Year 21) 6769000
Cap Rate 800
Gross Sales Proceeds 84612500
Less Selling Costs 30 (2538375)
Net Sales Proceeds 82074125
Less Mortgage Balance (9121735)
Net Reversion Proceeds 72952390
NOI Margin 269 259 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249
Equity $ (15855000) 00 00 1673339 1837339 1910339 2028339 2153339 2278339 2410339 2545339 2681339 2825339 2971339 3123339 3277339 3439339 3603339 3772339 3948339 4127339 4315339 77458730
ROE 1427 IRR 106 116 120 128 136 144 152 161 169 178 187 197 207 217 227 238 249 260 272 284
ONE BIG SKY CENTER
Billings Montana
HOTEL - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 19355000 Land Acquisition $ 6000000 $30000 KEY
Construction $ 32000000 $160000 KEY
Debt Financing $ 35946000 FFampE $ 4000000 $20000 KEY
Development $ 9000000 25
Financing $ 1953000 65 Loan to Project Costs
Contingency $ 2348000 5
TOTAL $ 55301000 TOTAL $ 55301000 $276505 KEY
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Rooms 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200
Average Daily Rate (ADR) $22100 $22623 $23015 $23706 $24417 $25150 $25904 $26681 $27482 $28306 $29155 $30030 $30931 $31859 $32814 $33799 $34813 $35857 $36933 $38041 $39182 30
Occupancy Rate 680 720 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750
OPERATING REVENUES
Rooms Revenue 10970000 11891000 12601000 12979000 13368000 13769000 14182000 14608000 15046000 15498000 15962000 16441000 16935000 17443000 17966000 18505000 19060000 19632000 20221000 20827000 21452000 639
FampB Revenue 5528000 5992000 6350000 6540000 6736000 6938000 7146000 7361000 7582000 7810000 8043000 8285000 8534000 8790000 9053000 9325000 9605000 9893000 10190000 10495000 10810000 322
Other Revenue 670000 726000 769000 792000 816000 840000 866000 892000 918000 946000 974000 1003000 1034000 1065000 1097000 1129000 1163000 1198000 1234000 1271000 1309000 39
Total Revenues 17168000 18609000 19720000 20311000 20920000 21547000 22194000 22861000 23546000 24254000 24979000 25729000 26503000 27298000 28116000 28959000 29828000 30723000 31645000 32593000 33571000
OPERATING EXPENSES Rooms FampB Other
Departmental Expenses 6593000 7147000 7573000 7800000 8034000 8275000 8523000 8780000 9043000 9315000 9593000 9881000 10179000 10484000 10798000 11122000 11455000 11799000 12153000 12517000 12893000 213 700 586 384
Undistributed Expenses 4464000 4838000 5127000 5281000 5439000 5602000 5770000 5944000 6122000 6306000 6495000 6690000 6891000 7097000 7310000 7529000 7755000 7988000 8228000 8474000 8728000 260
Management Fee 515000 558000 592000 609000 628000 646000 666000 686000 706000 728000 749000 772000 795000 819000 843000 869000 895000 922000 949000 978000 1007000 30
Insurance 172000 186000 197000 203000 209000 215000 222000 229000 235000 243000 250000 257000 265000 273000 281000 290000 298000 307000 316000 326000 336000 10
Property Taxes 635000 689000 730000 752000 774000 797000 821000 846000 871000 897000 924000 952000 981000 1010000 1040000 1071000 1104000 1137000 1171000 1206000 1242000 37
CAPEX Reserve 172000 372000 592000 609000 628000 646000 666000 686000 706000 728000 749000 772000 795000 819000 843000 869000 895000 922000 949000 978000 1007000
Total Expenses 12551000 13790000 14811000 15254000 15712000 16181000 16668000 17171000 17683000 18217000 18760000 19324000 19906000 20502000 21115000 21750000 22402000 23075000 23766000 24479000 25213000
NET OPERATING INCOME 4617000 4819000 4909000 5057000 5208000 5366000 5526000 5690000 5863000 6037000 6219000 6405000 6597000 6796000 7001000 7209000 7426000 7648000 7879000 8114000 8358000
Annual Debt Service (500 25 -yr Amort) 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641
DSCR 183x 191x 195x 201x 207x 213x 219x 226x 233x 239x 247x 254x 262x 270x 278x 286x 294x 303x 312x 322x
Mortgage Balance $35204827 $34425734 $33606781 $32745929 $31841035 $30889844 $29889988 $28838978 $27734196 $26572892 $25352173 $24069000 $22720177 $21302345 $19811975 $18245355 $16598583 $14867560 $13047974 $11135294
BEFORE TAX CASH FLOW 2095359 2297359 2387359 2535359 2686359 2844359 3004359 3168359 3341359 3515359 3697359 3883359 4075359 4274359 4479359 4687359 4904359 5126359 5357359 5592359
REVERSION CALCULATIONS
Project NOI (Year 21) 8358000
Cap Rate 800
Gross Sales Proceeds 104475000
Less Selling Costs 30 (3134250)
Net Sales Proceeds 101340750
Less Mortgage Balance (11135294)
Net Reversion Proceeds 90205456
NOI Margin 269 259 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249
Equity $ (19355000) 00 00 2095359 2297359 2387359 2535359 2686359 2844359 3004359 3168359 3341359 3515359 3697359 3883359 4075359 4274359 4479359 4687359 4904359 5126359 5357359 95797815
ROE 1444 IRR 108 119 123 131 139 147 155 164 173 182 191 201 211 221 231 242 253 265 277 289
ONE BIG SKY CENTER
Billings Montana
ECONOMIC amp FISCAL IMPACT ESTIMATES (HIGH)
PHASE 1 PHASE 2
Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M) Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M)
HOTEL 200 KEYS $ 197 Direct 160 Direct $ 59 Direct $ 02 Income 300 KEYS $ 398 Direct 240 Direct $ 119 Direct $ 05 Income
$ 58 Indirect 34 Indirect $ 17 Indirect $ 01 Corp $ 117 Indirect 50 Indirect $ 34 Indirect $ 02 Corp
$ 32 Induced 21 Induced $ 10 Induced $ 09 Lodging $ 65 Induced 31 Induced $ 21 Induced $ 18 Lodging
$ 288 Total 214 Total $ 86 Total $ 07 Property $ 580 Total 321 Total $ 174 Total $ 15 Property
$ 19 Total $ 39 Total
RETAIL DINING ENTERTAINMENT 100000 SF $ 363 Direct 496 Direct $ 145 Direct $ 04 Income 225000 SF $ 1088 Direct 1221 Direct $ 435 Direct $ 13 Income
$ 23 Indirect 17 Indirect $ 07 Indirect $ 01 Corp $ 69 Indirect 41 Indirect $ 21 Indirect $ 03 Corp
$ 27 Induced 25 Induced $ 11 Induced $ 04 Property $ 81 Induced 61 Induced $ 34 Induced $ 11 Property
$ 413 Total 537 Total $ 163 Total $ 09 Total $ 1239 Total 1323 Total $ 490 Total $ 28 Total
COMMERCIAL OFFICE 150000 SF $ 1259 Direct 600 Direct $ 357 Direct $ 15 Income 350000 SF $ 3947 Direct 1400 Direct $ 1119 Direct $ 46 Income
$ 304 Indirect 205 Indirect $ 95 Indirect $ 05 Corp $ 954 Indirect 479 Indirect $ 299 Indirect $ 15 Corp
$ 211 Induced 174 Induced $ 86 Induced $ 05 Property $ 662 Induced 405 Induced $ 270 Induced $ 15 Property
$ 1774 Total 979 Total $ 538 Total $ 24 Total $ 5563 Total 2284 Total $ 1688 Total $ 75 Total
BIOSCIENCE 50000 SF $ 301 Direct 167 Direct $ 137 Direct $ 05 Income 125000 SF $ 1010 Direct 417 Direct $ 459 Direct $ 16 Income
$ 35 Indirect 25 Indirect $ 13 Indirect $ 01 Corp $ 118 Indirect 62 Indirect $ 42 Indirect $ 04 Corp
$ 70 Induced 51 Induced $ 25 Induced $ 02 Property $ 236 Induced 128 Induced $ 85 Induced $ 06 Property
$ 406 Total 243 Total $ 175 Total $ 08 Total $ 1364 Total 607 Total $ 587 Total $ 26 Total
HEALTHCARE 250000 SF $ 1252 Direct 694 Direct $ 834 Direct $ 28 Income 600000 SF $ 4040 Direct 1667 Direct $ 2690 Direct $ 91 Income
$ 187 Indirect 134 Indirect $ 61 Indirect $ 05 Corp $ 604 Indirect 322 Indirect $ 198 Indirect $ 16 Corp
$ 404 Induced 309 Induced $ 154 Induced $ 09 Property $ 1303 Induced 742 Induced $ 495 Induced $ 30 Property
$ 1844 Total 1138 Total $ 1049 Total $ 43 Total $ 5947 Total 2731 Total $ 3383 Total $ 137 Total
RESIDENTIAL 300 DU $ 09 Property 300 DU $ 33 Property
SENIOR HOUSING 150 DU $ 04 Property 300 DU $ 11 Property
MIXED-USE INFILL DEVELOPMENT 100000 SF $ 240 Direct 179 Direct $ 77 Direct $ 03 Income 250000 SF $ 806 Direct 471 Direct $ 257 Direct $ 09 Income
Retail 20 $ 45 Indirect 31 Indirect $ 14 Indirect $ 01 Corp $ 152 Indirect 77 Indirect $ 47 Indirect $ 03 Corp
Office 20 $ 34 Induced 28 Induced $ 14 Induced $ 02 Property $ 112 Induced 71 Induced $ 46 Induced $ 10 Property
Residential 60 $ 319 Total 238 Total $ 104 Total $ 05 Total $ 1070 Total 620 Total $ 350 Total $ 23 Total
CONVENTION CENTER 150000 SF $ 147 Direct 119 Direct $ 44 Direct $ 02 Income
(Visitor Spending) $ 43 Indirect 25 Indirect $ 13 Indirect $ 01 Corp
$ 24 Induced 15 Induced $ 08 Induced $ 06 Lodging
$ 214 Total 160 Total $ 64 Total $ 08 Total
TOTAL ANNUAL $ 3759 Direct 2416 Direct $ 1652 Direct $ 59 Income $ 16341 Direct 8662 Direct $ 7299 Direct $ 259 Income
$ 696 Indirect 470 Indirect $ 220 Indirect $ 14 Corp $ 2950 Indirect 1664 Indirect $ 938 Indirect $ 62 Corp
$ 802 Induced 623 Induced $ 308 Induced $ 15 Lodging $ 3537 Induced 2276 Induced $ 1365 Induced $ 38 Lodging
$ 5257 Total 3509 Total $ 2180 Total $ 42 Property $ 22827 Total 12602 Total $ 9602 Total $ 188 Property
$ 130 Total $ 546 Total
AGGREGATE TOTAL (30 YEARS) $ 250126 $ 103729 $ 6170 $ 673652 $ 283016 $ 16156
340x 705x
Aggregate Effective Income Tax Rate 2697 Based on BEA Data
Effective Corporate Income Tax Rate 0270 MT DOR Collections BEA GDP
Lodging Tax 7 (4 Lodging Facility Use Tax + 3 Lodging Facility Sales Tax)
Escalation Assumption 30
ONE BIG SKY CENTER
Billings Montana
ECONOMIC amp FISCAL IMPACT ESTIMATES (LOW)
PHASE 1 PHASE 2
Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M) Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M)
HOTEL 200 KEYS $ 160 Direct 160 Direct $ 54 Direct $ 02 Income 300 KEYS $ 398 Direct 240 Direct $ 98 Direct $ 04 Income
$ 47 Indirect 34 Indirect $ 15 Indirect $ 01 Corp $ 117 Indirect 50 Indirect $ 28 Indirect $ 02 Corp
$ 26 Induced 21 Induced $ 09 Induced $ 07 Lodging $ 65 Induced 31 Induced $ 17 Induced $ 18 Lodging
$ 233 Total 214 Total $ 78 Total $ 06 Property $ 580 Total 321 Total $ 143 Total $ 15 Property
$ 16 Total $ 38 Total
RETAIL DINING ENTERTAINMENT 100000 SF $ 363 Direct 496 Direct $ 145 Direct $ 04 Income 225000 SF $ 1088 Direct 1221 Direct $ 435 Direct $ 13 Income
$ 23 Indirect 17 Indirect $ 07 Indirect $ 01 Corp $ 69 Indirect 41 Indirect $ 21 Indirect $ 03 Corp
$ 27 Induced 25 Induced $ 11 Induced $ 04 Property $ 81 Induced 61 Induced $ 34 Induced $ 11 Property
$ 413 Total 537 Total $ 163 Total $ 09 Total $ 1239 Total 1323 Total $ 490 Total $ 28 Total
COMMERCIAL OFFICE 150000 SF $ 1142 Direct 600 Direct $ 324 Direct $ 13 Income 350000 SF $ 3247 Direct 1400 Direct $ 920 Direct $ 37 Income
$ 276 Indirect 205 Indirect $ 87 Indirect $ 04 Corp $ 785 Indirect 479 Indirect $ 246 Indirect $ 12 Corp
$ 191 Induced 174 Induced $ 78 Induced $ 05 Property $ 545 Induced 405 Induced $ 222 Induced $ 15 Property
$ 1609 Total 979 Total $ 488 Total $ 22 Total $ 4577 Total 2284 Total $ 1389 Total $ 64 Total
BIOSCIENCE 50000 SF $ 273 Direct 167 Direct $ 124 Direct $ 04 Income 125000 SF $ 831 Direct 417 Direct $ 378 Direct $ 13 Income
$ 32 Indirect 25 Indirect $ 11 Indirect $ 01 Corp $ 97 Indirect 62 Indirect $ 35 Indirect $ 03 Corp
$ 64 Induced 51 Induced $ 23 Induced $ 02 Property $ 194 Induced 128 Induced $ 70 Induced $ 06 Property
$ 368 Total 243 Total $ 158 Total $ 07 Total $ 1122 Total 607 Total $ 483 Total $ 22 Total
HEALTHCARE 250000 SF $ 1136 Direct 694 Direct $ 756 Direct $ 26 Income 600000 SF $ 3324 Direct 1667 Direct $ 2213 Direct $ 75 Income
$ 170 Indirect 134 Indirect $ 56 Indirect $ 05 Corp $ 497 Indirect 322 Indirect $ 163 Indirect $ 13 Corp
$ 366 Induced 309 Induced $ 139 Induced $ 09 Property $ 1072 Induced 742 Induced $ 408 Induced $ 30 Property
$ 1672 Total 1138 Total $ 951 Total $ 39 Total $ 4893 Total 2731 Total $ 2783 Total $ 118 Total
RESIDENTIAL 300 DU $ 08 Property 300 DU $ 33 Property
SENIOR HOUSING 150 DU $ 03 Property 300 DU $ 11 Property
MIXED-USE INFILL DEVELOPMENT 100000 SF $ 225 Direct 179 Direct $ 72 Direct $ 03 Income 250000 SF $ 706 Direct 471 Direct $ 228 Direct $ 08 Income
Retail 20 $ 41 Indirect 31 Indirect $ 13 Indirect $ 01 Corp $ 128 Indirect 77 Indirect $ 40 Indirect $ 03 Corp
Office 20 $ 31 Induced 28 Induced $ 13 Induced $ 01 Property $ 96 Induced 71 Induced $ 39 Induced $ 10 Property
Residential 60 $ 297 Total 238 Total $ 98 Total $ 05 Total $ 929 Total 620 Total $ 307 Total $ 21 Total
CONVENTION CENTER 150000 SF $ 139 Direct 139 Direct $ 46 Direct $ 02 Income
(Visitor Spending) $ 41 Indirect 29 Indirect $ 13 Indirect $ 01 Corp
$ 23 Induced 18 Induced $ 08 Induced $ 06 Lodging
$ 202 Total 186 Total $ 68 Total $ 08 Total
TOTAL ANNUAL $ 3436 Direct 2435 Direct $ 1521 Direct $ 54 Income $ 13783 Direct 8384 Direct $ 6127 Direct $ 217 Income
$ 630 Indirect 474 Indirect $ 202 Indirect $ 13 Corp $ 2461 Indirect 1610 Indirect $ 780 Indirect $ 52 Corp
$ 728 Induced 626 Induced $ 282 Induced $ 13 Lodging $ 2940 Induced 2201 Induced $ 1133 Induced $ 33 Lodging
$ 4795 Total 3535 Total $ 2005 Total $ 38 Property $ 19183 Total 12195 Total $ 8040 Total $ 178 Property
$ 118 Total $ 480 Total
AGGREGATE TOTAL (30 YEARS) $ 194508 $ 81357 $ 4781 $ 518608 $ 217319 $ 12946
263x 565x
Aggregate Effective Income Tax Rate 2697 Based on BEA Data
Effective Corporate Income Tax Rate 0270 MT DOR Collections BEA GDP
Lodging Tax 7 (4 Lodging Facility Use Tax + 3 Lodging Facility Sales Tax)
Escalation Assumption 20
ONE BIG SKY CENTER
Billings Montana
ECONOMIC amp FISCAL IMPACTS
PHASE 1 FULL BUILDOUT
LOW HIGH LOW HIGH
PROGRAM 10 Million SF 10 Million SF 40 Million SF 50 Million SF
PRIVATE INVESTMENT $3270 Million $3520 Million $10 Billion $20 Billion
VISITATION 10 Million 10 Million 40 Million 40 Million
ECONOMIC OUTPUT 4794618805 (Annually) 5257467756 (Annually) 1918349973 (Annually) 2282740941 (Annually)
(Direct Indirect amp Induced)
EMPLOYMENT 3535 Jobs 3509 Jobs 12195 Jobs 12602 Jobs
(Direct Indirect amp Induced)
EARNINGS 2005455783 (Annually) 2180306006 (Annually) 804037145 (Annually) 9602425147 (Annually)
(Direct Indirect amp Induced)
FISCAL IMPACTS 117843492 (Annually) 1296944889 (Annually) 479704742 (Annually) 5459243472 (Annually)
4780684117 (30 years) 6170269226 (30 years) 1294591687 (30 years) 1615599362 (30 years)
ONE BIG SKY CENTER
Billings Montana
MASTER PROJECT BUDGET - PHASED
TOTAL PHASE 1 PHASE 2
USES OF FUNDS ($MM)
PRIVATE
Hotel $ 1675 $ 553 $ 1122
Retail Dining Entertainment $ 1267 $ 314 $ 953
Commerical Office $ 1829 $ 442 $ 1387
Bioscience $ 907 $ 208 $ 700
Healthcare $ 4860 $ 1015 $ 3846
Residential $ 2894 $ 633 $ 2261
Senior Housing $ 1069 $ 291 $ 778
Mixed-Use Renovation $ 792 $ 182 $ 611
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 322 $ 322 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
ONE BIG SKY CENTER
Billings Montana
USES OF FUNDS - PHASED
TOTAL PHASE 1 PHASE 2
USES OF FUNDS ($MM)
PRIVATE
Land $ 1013 $ 248 $ 765
Construction $ 7838 $ 1711 $ 6128
FFampE $ 726 $ 137 $ 589
Development $ 2175 $ 450 $ 1725
Financing $ 483 $ 101 $ 382
TI Allowances $ 2036 $ 485 $ 1551
Contingency $ 659 $ 140 $ 519
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 687 $ 687 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
ONE BIG SKY CENTER
Billings Montana
SOURCES amp USES - PHASED
TOTAL PHASE 1 PHASE 2
SOURCES OF FUNDS ($MM)
PRIVATE
Equity Investment $ 4370 $ 1023 $ 3347
Debt Financing $ 10560 $ 2249 $ 8311
PUBLIC
Public Investment $ 2292 $ 1817 $ 475
bull City
bull State
bull Federal
TOTAL $ 17222 $ 5089 $ 12133
USES OF FUNDS ($MM)
PRIVATE
Land $ 1013 $ 248 $ 765
Construction $ 7838 $ 1711 $ 6128
FFampE $ 726 $ 137 $ 589
Development $ 2175 $ 450 $ 1725
Financing $ 483 $ 101 $ 382
TI Allowances $ 2036 $ 485 $ 1551
Contingency $ 659 $ 140 $ 519
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 687 $ 687 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
PRIVATE 1493002000 327189000 1165813000
PUBLIC 229157000 181689000 47468000
ONE BIG SKY CENTER
Billings Montana
SOURCES amp USES - PHASED
TOTAL PHASE 1 PHASE 2
SOURCES OF FUNDS ($MM)
PRIVATE
Equity Investment $ 4370 $ 1023 $ 3347
Debt Financing $ 10560 $ 2249 $ 8311
PUBLIC
City Investment $ 602 $ 365 $ 237
State Investment $ 1689 $ 1452 $ 237
TOTAL $ 17222 $ 5089 $ 12133
USES OF FUNDS ($MM)
PRIVATE
Land $ 1047 $ 282 $ 765
Construction $ 8074 $ 1946 $ 6128
FFampE $ 726 $ 137 $ 589
Development $ 2237 $ 512 $ 1725
Financing $ 497 $ 115 $ 382
TI Allowances $ 2036 $ 485 $ 1551
Contingency $ 678 $ 160 $ 519
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 322 $ 322 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
PRIVATE 1493002000 327189000 1165813000
PUBLIC 229157000 181689000 47468000
ONE BIG SKY CENTER
Billings Montana
GAP ANALYSIS - PHASE 1
HOTEL RETAIL OFFICE BIOSCIENCE HEALTHCARE RESIDENTIAL SR HOUSING TOTAL
200 KEYS 100000 SF 150000 SF 50000 SF 250000 SF 300 DU 150 DU
MARKET CONDITIONS $15441 Night $2484 SF $1673 SF $2575 SF $35012 SF $1518 MO $1389 MO
(Current Dollars) Avg Daily Rate NNN Rental Rate NNN Rental Rate NNN Rental Rate Building Value Avg Rental Rate Avg Rental Rate
REQUIRED FOR DEVELOPMENT $19064 Night $2484 SF $2290 SF $3192 SF $35012 SF $1829 MO $1691 MO
(Current Dollars) Avg Daily Rate NNN Rental Rate NNN Rental Rate NNN Rental Rate Building Value Avg Rental Rate Avg Rental Rate
PROJECTED VALUE ($M) $ 453 $ 314 $ 322 $ 168 $ 1015 $ 561 $ 258 $ 3090
PROJECTED COST ($M) $ 553 $ 314 $ 442 $ 208 $ 1015 $ 633 $ 291 $ 3455
GAP ($M) ($ 100) $ - 0 ($ 120) ($ 40) $ - 0 ($ 72) ($ 33) ($ 365)
ONE BIG SKY CENTER
Billings Montana
PROGRAM amp PHASING
PHASE 1 PHASE 2 TOTAL
HOTEL 200 KEYS 300 KEYS 500 KEYS
160000 SF 240000 SF 400000 SF
RETAIL DINING ENTERTAINMENT 100000 SF 225000 SF 325000 SF
COMMERCIAL OFFICE 150000 SF 350000 SF 500000 SF
BIOSCIENCE 50000 SF 125000 SF 175000 SF
HEALTHCARE 250000 SF 600000 SF 850000 SF
Ambulatory Medical Wellness 75000 SF 400000 SF 475000 SF
Medical Office 175000 SF 200000 375000 SF
RESIDENTIAL 300 DU 800 DU 1100 DU
300000 SF 800000 SF 1100000 SF
SENIOR HOUSING 150 DU 300 DU 450 DU
105000 SF 210000 SF 315000 SF
MIXED-USE INFILL DEVELOPMENT 100000 SF 250000 SF 350000 SF
CONVENTION CENTER 100000 SF 50000 SF 150000 SF
CIVIC 80000 SF 50000 SF 130000 SF
PARKING STRUCTURE 1030 Stalls 827 Stalls 1857 Stalls Residential assumed to separately build and finance its own parking in Phase 2
TOTAL (NIC Parking) 1395000 SF 2900000 SF 4295000 SF
Page 2: PROGRAM & VISION STATEMENT · program & vision statement ONE Big Sky District is a large, mixed-use, multi-anchor program supporting broad development goals driving the long-term

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 33

PROGRAM amp VISION STATEMENT

ONE Big Sky District is a large mixed-use multi-anchor program supporting broad development goals driving the long-termeconomic vitality of the City of Billings the State of Montana and the region This destination concept relies on privatepublicpartnerships to support anchoring institutions including health care tourism education and the financial sector working togetherto drive economic growth and job creation

INTRODUCTION

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 44

PROGRAM amp VISION STATEMENT

There are several primary goals and objectives for the ONE Big Sky District including

bull Lifestyle Goalso Create a development strategy that capitalizes on planning and design that trends toward re-urbanization and more healthy

built and natural environmentso Develop a series of memorable urban experiences and programmatic offerings that appeal to all of Billingsrsquo residents and

visitorso Embrace the authentic Billings and Montana experience

bull Fiscal amp Economic Goalso Build a comprehensive plan to grow tax base for the City the County and the Stateo Strengthen our position in the region to be the most attractive market for new private businesso Create new jobs to drive not only the local but also the regional and statewide economieso Realize a return on public investment at a significant ratio

bull Civic amp Community Goalso Support a range of housing options and more mixed-use developments in the downtown coreo Establish Billings as one of the Mountain Regionrsquos dominant destination cities for visitation driven by anchoring institutions (eg

health care and education) and an emerging tourism economy to draw meetings conventions and related activities

bull Tomorrows Workforce Goalso Become a model city nationally to attract and retain a skilled workforce from professional to industrial and the trades

GOALS amp ASPIRATIONS

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 55

PROGRAM amp VISION STATEMENT

A strong district development strategy can strengthen Billings as a destination city and enhance the economic climate ndash using health care and tourism as catalysts to anchor the transformation of Billings into the next generation

DISTRICT DEVELOPMENT PLAN

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 66

PROGRAM amp VISION STATEMENT

There are a number of key drivers that define the opportunity for major economic development generated from the ONE Big Sky District and certain constraints that must be understood and addressed including

KEY DRIVERSbull A dynamic economic development community energized to take actionbull Public-private partnerships (P3) are an emerging and proven national trendbull A stable economic base for the futurebull An opportunity to define an urban landscape which can support major economic developmentbull Lifestyle amenities and character in the community and region that can become the foundation to an authentic ldquoBillings and

Montana Experiencerdquobull Opportunities for important community anchors that can drive economic development

CONSTRAINTSbull An uncertain political climate and environment at the local and state levelsbull A massive and evolving jobs dilemma in Billingsbull Limited proven model for public finance in support of major economic developmentbull Lack of accurate information on the project circulating in the communitybull Without vision and an action plan Billings will have limited appeal with institutional capital investors

KEY DRIVERS CONSTRAINTS

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 77

PROGRAM amp VISION STATEMENT

Based on our preliminary market analysis the City of Billings has the potential to support a diverse program in the ONE Big Sky Center Development Districts of the magnitude as described below

While these forecasts are preliminary and based primarily on macro-level demand analysis the demographic strength economic base industry growth metrics combined with the regional trade area of Billings indicate that growth patterns will support a robust development program over a 15 to 20 year planning horizon

PROGRAM STATEMENT

Program

Gap Analysis - Phase 1

Sources amp Uses

SOURCES OF FUNDS

Phase 1

Phase 1

PRIVATEPUBLIC327189000181689000

SOURCES OF FUNDS

Full Buildout

Full Buildout

PRIVATEPUBLIC1493002000229157000

Sources amp Uses (Simplified)

SOURCES OF FUNDS

Phase 1

Phase 1

PRIVATEPUBLIC327189000181689000

SOURCES OF FUNDS

Full Buildout

Full Buildout

PRIVATEPUBLIC1493002000229157000

MPB by Uses

MPB by Component

Economic amp Fiscal Summary

Economic amp Fiscal Calcs LOW

Economic amp Fiscal Calcs HIGH

Hotel - Phase 1

Hotel - Phase 1 (Gap)

Hotel - Phase 2

Retail - Phase 1

Retail - Phase 2

Office - Phase 1

Office - Phase 1 (Gap)

Office - Phase 2

Bioscience - Phase 1

Bioscience - Phase 1 (Gap)

Bioscience - Phase 2

Health - Phase 1

Health - Phase 2

Medical Office - Phase 1

Medical Office - Phase 2

Residential - Phase 1

Residential - Phase 1 (Gap)

Residential - Phase 2

Senior Housing - Phase 1

Senior Housing - Phase 1 (Gap)

Senior Housing - Phase 2

Mixed-Use Infill - Phase 1

Mixed-Use Infill - Phase 2

Convention - Phase 1

Civic - Phase 1

Parking - Phase 1

Parking - Phase 2

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 88

PROGRAM amp VISION STATEMENT

Why the time is now for this project

- Billings needs a defined vision and plan that will drive our economic future

- Serious workforce challenges in that will only get worse in upcoming years

- Flat economic growth which will result in a growing tax burden on existing property owners

- Billings is in a regional competition ndash with communities around Billings making large investments in their amenities and infrastructure to attract the businesses and workforce of tomorrow

URGENT ISSUES REQUIRING ACTION

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ONE BIG SKY CENTER
Billings Montana
STRUCTURED PARKING - PHASE 2
USES OF FUNDS
Land Acquisition $ -
Construction $ 37200000 $45000 Stall
Development $ 5580000 15
Financing (500 Interest) $ 2428000 85 Loan to Project Costs
Contingency $ 2260000 5
TOTAL $ 47468000 $57425 Stall
Structured Parking Program 827 Stalls
ONE BIG SKY CENTER
Billings Montana
STRUCTURED PARKING - PHASE 1
USES OF FUNDS
Land Acquisition $ -
Construction $ 33990000 $33000 Stall
Development $ 5099000 15
Financing (500 Interest) $ 2219000 85 Loan to Project Costs
Contingency $ 2065000 5
TOTAL $ 43373000 $42110 Stall
Structured Parking Program 1030 Stalls
ONE BIG SKY CENTER
Billings Montana
CIVIC INFRASTRUCTURE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ - Land Acquisition $ - $000 SF
Construction $ 15040000 $18800 SF
Debt Financing $ 32150000 FFampE $ 8080000 $10100 SF
Development $ 5780000 25
Financing $ 1719000 100 Loan to Project Costs
Contingency $ 1531000 5
TOTAL $ 32150000 TOTAL $ 32150000 $40188 SF
Convention Center Program 80000 SF Escalation Rate 50
Year Completed 2022
Interest Rate 450
ONE BIG SKY CENTER
Billings Montana
CONVENTION CENTER - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ - Land Acquisition $ - $000 SF
Construction $ 36300000 $36300 SF
Debt Financing $ 69666000 FFampE $ 13800000 $13800 SF
Development $ 12525000 25
Financing $ 3724000 100 Loan to Project Costs
Contingency $ 3317000 5
TOTAL $ 69666000 TOTAL $ 69666000 $69666 SF
Convention Center Program 100000 SF Escalation Rate 50
Year Completed 2022
Interest Rate 450
ONE BIG SKY CENTER
Billings Montana
MIXED-USE INFILL DEVELOPMENT - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 21368000 Land Acquisition $ 11750000 $4700 SF
Construction $ 36000000 $14400 SF
Debt Financing $ 39683000 Development $ 9000000 25
Financing $ 1953000 65 Loan to Project Costs
Contingency $ 2348000 5
TOTAL $ 61051000 TOTAL $ 61051000 $24420 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2245 $2312 $2382 $2453 $2527 $2603 $2681 $2761 $2844 $2929 $3017 $3108 $3201 $3297 $3396 $3498 3
OPERATING REVENUES
Rent (NNN) 5613000 5781000 5954000 6133000 6317000 6506000 6702000 6903000 7110000 7323000 7543000 7769000 8002000 8242000 8489000 8744000
Expense Reimbursements 4212000 4296000 4383000 4469000 4560000 4650000 4744000 4838000 4935000 5034000 5135000 5237000 5342000 5448000 5557000 5669000
Vacancy Allowance (983000) (756000) (517000) (530000) (544000) (558000) (572000) (587000) (602000) (618000) (634000) (650000) (667000) (685000) (702000) (721000)
Total Revenues 8842000 9321000 9820000 10072000 10333000 10598000 10874000 11154000 11443000 11739000 12044000 12356000 12677000 13005000 13344000 13692000
OPERATING EXPENSES
Operating Expenses 3209000 3273000 3339000 3405000 3474000 3543000 3614000 3686000 3760000 3835000 3912000 3990000 4070000 4151000 4234000 4319000
Property Taxes 1003000 1023000 1044000 1064000 1086000 1107000 1130000 1152000 1175000 1199000 1223000 1247000 1272000 1297000 1323000 1350000
Total Expenses 4212000 4296000 4383000 4469000 4560000 4650000 4744000 4838000 4935000 5034000 5135000 5237000 5342000 5448000 5557000 5669000
NET OPERATING INCOME 4630000 5025000 5437000 5603000 5773000 5948000 6130000 6316000 6508000 6705000 6909000 7119000 7335000 7557000 7787000 8023000
Annual Debt Service (500 25 -yr Amort) 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794
DSCR 166x 181x 195x 201x 207x 214x 220x 227x 234x 241x 248x 256x 263x 271x 280x
Mortgage Balance $38864774 $38004685 $37100593 $36150245 $35151276 $34101198 $32997396 $31837122 $30617485 $29335450 $27987823 $26571249 $25082200 $23516969 $21871658
BEFORE TAX CASH FLOW 1846206 2241206 2653206 2819206 2989206 3164206 3346206 3532206 3724206 3921206 4125206 4335206 4551206 4773206 5003206
REVERSION CALCULATIONS
Project NOI (Year 16) 8023000
Cap Rate 800
Gross Sales Proceeds 100287500
Less Selling Costs 30 (3008625)
Net Sales Proceeds 97278875
Less Mortgage Balance (21871658)
Net Reversion Proceeds 75407217
Gross Rental Rate $3930 $4031 $4135 $4241 $4351 $4462 $4578 $4696 $4818 $4943 $5071 $5202 $5338 $5476 $5618 $5765
Equity $ (21368000) 00 00 1846206 2241206 2653206 2819206 2989206 3164206 3346206 3532206 3724206 3921206 4125206 4335206 4551206 4773206 80410423
ROE 1453 IRR 86 105 124 132 140 148 157 165 174 184 193 203 213 223 234
ONE BIG SKY CENTER
Billings Montana
MIXED-USE INFILL DEVELOPMENT - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 6354000 Land Acquisition $ 3500000 $3500 SF
Construction $ 10700000 $10700 SF
Debt Financing $ 11800000 Development $ 2675000 25
Financing $ 581000 65 Loan to Project Costs
Contingency $ 698000 5
TOTAL $ 18154000 TOTAL $ 18154000 $18154 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $1670 $1720 $1772 $1825 $1880 $1936 $1994 $2054 $2116 $2179 $2244 $2312 $2381 $2452 $2526 $2602 $2680 $2760 $2843 $2928 $3016 3
OPERATING REVENUES
Rent (NNN) 1670000 1720000 1772000 1825000 1880000 1936000 1994000 2054000 2116000 2179000 2244000 2312000 2381000 2452000 2526000 2602000 2680000 2760000 2843000 2928000 3016000
Expense Reimbursements 1254000 1279000 1305000 1330000 1358000 1384000 1412000 1440000 1469000 1498000 1528000 1559000 1590000 1622000 1655000 1687000 1721000 1756000 1791000 1827000 1863000
Vacancy Allowance (292000) (225000) (154000) (158000) (162000) (166000) (170000) (175000) (179000) (184000) (189000) (194000) (199000) (204000) (209000) (214000) (220000) (226000) (232000) (238000) (244000)
Total Revenues 2632000 2774000 2923000 2997000 3076000 3154000 3236000 3319000 3406000 3493000 3583000 3677000 3772000 3870000 3972000 4075000 4181000 4290000 4402000 4517000 4635000
OPERATING EXPENSES
Operating Expenses 955000 974000 994000 1013000 1034000 1054000 1075000 1097000 1119000 1141000 1164000 1187000 1211000 1235000 1260000 1285000 1311000 1337000 1364000 1391000 1419000
Property Taxes 299000 305000 311000 317000 324000 330000 337000 343000 350000 357000 364000 372000 379000 387000 395000 402000 410000 419000 427000 436000 444000
Total Expenses 1254000 1279000 1305000 1330000 1358000 1384000 1412000 1440000 1469000 1498000 1528000 1559000 1590000 1622000 1655000 1687000 1721000 1756000 1791000 1827000 1863000
NET OPERATING INCOME 1378000 1495000 1618000 1667000 1718000 1770000 1824000 1879000 1937000 1995000 2055000 2118000 2182000 2248000 2317000 2388000 2460000 2534000 2611000 2690000 2772000
Annual Debt Service (500 25 -yr Amort) 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779
DSCR 166x 181x 195x 201x 208x 214x 220x 227x 234x 241x 248x 256x 264x 272x 280x 288x 297x 306x 315x 325x
Mortgage Balance $11556695 $11300942 $11032104 $10749512 $10452462 $10140215 $9811992 $9466977 $9104310 $8723088 $8322362 $7901135 $7458357 $6992925 $6503681 $5989406 $5448820 $4880577 $4283261 $3655385
BEFORE TAX CASH FLOW 550221 667221 790221 839221 890221 942221 996221 1051221 1109221 1167221 1227221 1290221 1354221 1420221 1489221 1560221 1632221 1706221 1783221 1862221
REVERSION CALCULATIONS
Project NOI (Year 16) 2772000
Cap Rate 800
Gross Sales Proceeds 34650000
Less Selling Costs 30 (1039500)
Net Sales Proceeds 33610500
Less Mortgage Balance (3655385)
Net Reversion Proceeds 29955115
Gross Rental Rate $2924 $2999 $3077 $3155 $3238 $3320 $3406 $3494 $3585 $3677 $3772 $3871 $3971 $4074 $4181 $4289 $4401 $4516 $4634 $4755 $4879
Equity $ (6354000) 00 00 550221 667221 790221 839221 890221 942221 996221 1051221 1109221 1167221 1227221 1290221 1354221 1420221 1489221 1560221 1632221 1706221 1783221 31817335
ROE 1433 IRR 87 105 124 132 140 148 157 165 175 184 193 203 213 224 234 246 257 269 281 293
ONE BIG SKY CENTER
Billings Montana
SENIOR HOUSING - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 23350000 Land Acquisition $ 4800000 $16000 DU
Construction $ 54000000 $180000 DU
Debt Financing $ 54485000 FFampE $ 3000000 $10000 DU
Development $ 11400000 20
Financing $ 1157000 70 Loan to Project Costs
Contingency $ 3478000 5
TOTAL $ 77835000 TOTAL $ 77835000 $259450 DU
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Number of Units 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Monthly Rent $2620 $2699 $2780 $2863 $2949 $3037 $3128 $3222 $3319 $3419 $3521 $3627 $3735 $3848 $3963 $4082
Rental Rate per Square Foot $440 $453 $467 $481 $495 $510 $525 $541 $557 $574 $591 $609 $627 $646 $666 $686 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 9432000 9715000 10006000 10307000 10616000 10934000 11262000 11600000 11948000 12307000 12676000 13056000 13448000 13851000 14267000 14695000
Miscellaneous 189000 194000 200000 206000 212000 219000 225000 232000 239000 246000 254000 261000 269000 277000 285000 294000 2 of PGI
Vacancy Collections Losses (962000) (495000) (510000) (526000) (541000) (558000) (574000) (592000) (609000) (628000) (647000) (666000) (686000) (706000) (728000) (749000)
Effective Gross Income 8659000 9414000 9696000 9987000 10287000 10595000 10913000 11240000 11578000 11925000 12283000 12651000 13031000 13422000 13824000 14240000
OPERATING EXPENSES
Administrative 160000 165000 170000 175000 180000 185000 191000 197000 203000 209000 215000 221000 228000 235000 242000 249000 17 of PGI
Advertising 67000 69000 71000 73000 75000 77000 80000 82000 84000 87000 90000 92000 95000 98000 101000 104000 07 of PGI
Repairs amp Maintenance 266000 274000 283000 291000 300000 309000 318000 328000 338000 348000 358000 369000 380000 391000 403000 415000 28 of PGI
Utilities 400000 412000 424000 437000 450000 463000 477000 492000 506000 521000 537000 553000 570000 587000 605000 623000 42 of PGI
Payroll 480000 494000 509000 524000 540000 556000 573000 590000 608000 626000 645000 664000 684000 704000 725000 747000 50 of PGI
Insurance 187000 192000 198000 204000 210000 216000 223000 229000 236000 243000 251000 258000 266000 274000 282000 291000 19 of PGI
Property Taxes 1066000 1098000 1131000 1165000 1200000 1236000 1273000 1311000 1350000 1391000 1432000 1475000 1520000 1565000 1612000 1660000 111 of PGI
Management Fee 346000 377000 388000 399000 411000 424000 437000 450000 463000 477000 491000 506000 521000 537000 553000 570000 40 of EGI
Reserves 173000 188000 194000 200000 206000 212000 218000 225000 232000 239000 246000 253000 261000 268000 276000 285000 20 of EGI
Total Expenses 3145000 3269000 3368000 3468000 3572000 3678000 3790000 3904000 4020000 4141000 4265000 4391000 4525000 4659000 4799000 4944000
NET OPERATING INCOME 5514000 6145000 6328000 6519000 6715000 6917000 7123000 7336000 7558000 7784000 8018000 8260000 8506000 8763000 9025000 9296000
Annual Debt Service (500 25 -yr Amort) 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167
DSCR 144x 161x 166x 171x 176x 181x 186x 192x 198x 204x 210x 216x 223x 229x 236x
Mortgage Balance $53361570 $52180663 $50939339 $49634506 $48262916 $46821152 $45305625 $43712561 $42037993 $40277751 $38427451 $36482486 $34438013 $32288942 $30029919
BEFORE TAX CASH FLOW 1691833 2322833 2505833 2696833 2892833 3094833 3300833 3513833 3735833 3961833 4195833 4437833 4683833 4940833 5202833
REVERSION CALCULATIONS
Project NOI (Year 21) 9296000
Cap Rate 700
Gross Sales Proceeds 132800000
Less Selling Costs 30 (3984000)
Net Sales Proceeds 128816000
Less Mortgage Balance (30029919)
Net Reversion Proceeds 98786081
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (23350000) 00 00 1691833 2322833 2505833 2696833 2892833 3094833 3300833 3513833 3735833 3961833 4195833 4437833 4683833 4940833 103988914
ROE 1460 IRR 72 99 107 115 124 133 141 150 160 170 180 190 201 212 223
ONE BIG SKY CENTER
Billings Montana
SENIOR HOUSING - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 7738000 Land Acquisition $ 1800000 $12000 DU
Construction $ 20100000 $134000 DU
Debt Financing $ 18054000 FFampE $ 1200000 $8000 DU
Development $ 4260000 20
Public Investment $ 3300000 Financing $ 432000 70 Loan to Project Costs
Contingency $ 1300000 5
TOTAL $ 29092000 TOTAL $ 29092000 $193947 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Monthly Rent $1610 $1658 $1708 $1759 $1812 $1866 $1922 $1980 $2039 $2101 $2164 $2229 $2295 $2364 $2435 $2508 $2584 $2661 $2741 $2823 $2908
Rental Rate per Square Foot $270 $278 $286 $295 $304 $313 $322 $332 $342 $352 $363 $374 $385 $397 $408 $421 $433 $446 $460 $473 $488 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 2898000 2985000 3074000 3167000 3262000 3360000 3460000 3564000 3671000 3781000 3895000 4012000 4132000 4256000 4383000 4515000 4650000 4790000 4934000 5082000 5234000
Miscellaneous 58000 60000 61000 63000 65000 67000 69000 71000 73000 76000 78000 80000 83000 85000 88000 90000 93000 96000 99000 102000 105000 2 of PGI
Vacancy Collections Losses (296000) (152000) (157000) (162000) (166000) (171000) (176000) (182000) (187000) (193000) (199000) (205000) (211000) (217000) (224000) (230000) (237000) (244000) (252000) (259000) (267000)
Effective Gross Income 2660000 2893000 2978000 3068000 3161000 3256000 3353000 3453000 3557000 3664000 3774000 3887000 4004000 4124000 4247000 4375000 4506000 4642000 4781000 4925000 5072000
OPERATING EXPENSES
Administrative 49000 51000 52000 54000 55000 57000 59000 60000 62000 64000 66000 68000 70000 72000 74000 77000 79000 81000 84000 86000 89000 17 of PGI
Advertising 20000 21000 22000 22000 23000 24000 24000 25000 26000 27000 28000 28000 29000 30000 31000 32000 33000 34000 35000 36000 37000 07 of PGI
Repairs amp Maintenance 82000 84000 87000 89000 92000 95000 98000 101000 104000 107000 110000 113000 117000 120000 124000 128000 131000 135000 139000 144000 148000 28 of PGI
Utilities 123000 126000 130000 134000 138000 142000 147000 151000 156000 160000 165000 170000 175000 180000 186000 191000 197000 203000 209000 215000 222000 42 of PGI
Payroll 147000 152000 156000 161000 166000 171000 176000 181000 187000 192000 198000 204000 210000 216000 223000 230000 236000 244000 251000 258000 266000 50 of PGI
Insurance 57000 59000 61000 63000 64000 66000 68000 70000 73000 75000 77000 79000 82000 84000 87000 89000 92000 95000 98000 100000 104000 19 of PGI
Property Taxes 327000 337000 347000 358000 369000 380000 391000 403000 415000 427000 440000 453000 467000 481000 495000 510000 525000 541000 558000 574000 591000 111 of PGI
Management Fee 106000 116000 119000 123000 126000 130000 134000 138000 142000 147000 151000 155000 160000 165000 170000 175000 180000 186000 191000 197000 203000 40 of EGI
Reserves 53000 58000 60000 61000 63000 65000 67000 69000 71000 73000 75000 78000 80000 82000 85000 88000 90000 93000 96000 99000 101000 20 of EGI
Total Expenses 964000 1004000 1034000 1065000 1096000 1130000 1164000 1198000 1236000 1272000 1310000 1348000 1390000 1430000 1475000 1520000 1563000 1612000 1661000 1709000 1761000
NET OPERATING INCOME 1696000 1889000 1944000 2003000 2065000 2126000 2189000 2255000 2321000 2392000 2464000 2539000 2614000 2694000 2772000 2855000 2943000 3030000 3120000 3216000 3311000
Annual Debt Service (500 25 -yr Amort) 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503
DSCR 134x 149x 153x 158x 163x 168x 173x 178x 183x 189x 195x 200x 206x 213x 219x 225x 232x 239x 246x 254x
Mortgage Balance $17681743 $17290441 $16879120 $16446754 $15992267 $15514529 $15012348 $14484474 $13929594 $13346325 $12733215 $12088736 $11411286 $10699175 $9950632 $9163791 $8336695 $7467282 $6553389 $5592739
BEFORE TAX CASH FLOW 429497 622497 677497 736497 798497 859497 922497 988497 1054497 1125497 1197497 1272497 1347497 1427497 1505497 1588497 1676497 1763497 1853497 1949497
REVERSION CALCULATIONS
Project NOI (Year 21) 3311000
Cap Rate 700
Gross Sales Proceeds 47300000
Less Selling Costs 30 (1419000)
Net Sales Proceeds 45881000
Less Mortgage Balance (5592739)
Net Reversion Proceeds 40288261
NOI Margin 638 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (7738000) 00 00 429497 622497 677497 736497 798497 859497 922497 988497 1054497 1125497 1197497 1272497 1347497 1427497 1505497 1588497 1676497 1763497 1853497 42237758
ROE 1304 IRR 56 80 88 95 103 111 119 128 136 145 155 164 174 184 195 205 217 228 240 252
ONE BIG SKY CENTER
Billings Montana
SENIOR HOUSING - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 8728000 Land Acquisition $ 1800000 $12000 DU
Construction $ 20100000 $134000 DU
Debt Financing $ 20364000 FFampE $ 1200000 $8000 DU
Development $ 4260000 20
Financing $ 432000 70 Loan to Project Costs
Contingency $ 1300000 5
TOTAL $ 29092000 TOTAL $ 29092000 $193947 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Monthly Rent $1960 $2019 $2079 $2142 $2206 $2272 $2340 $2411 $2483 $2557 $2634 $2713 $2794 $2878 $2965 $3054 $3145 $3240 $3337 $3437 $3540
Rental Rate per Square Foot $330 $340 $350 $361 $371 $383 $394 $406 $418 $431 $443 $457 $471 $485 $499 $514 $530 $545 $562 $579 $596 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 3528000 3634000 3743000 3855000 3971000 4090000 4213000 4339000 4469000 4603000 4741000 4884000 5030000 5181000 5336000 5497000 5661000 5831000 6006000 6186000 6372000
Miscellaneous 71000 73000 75000 77000 79000 82000 84000 87000 89000 92000 95000 98000 101000 104000 107000 110000 113000 117000 120000 124000 127000 2 of PGI
Vacancy Collections Losses (360000) (185000) (191000) (197000) (203000) (209000) (215000) (221000) (228000) (235000) (242000) (249000) (257000) (264000) (272000) (280000) (289000) (297000) (306000) (316000) (325000)
Effective Gross Income 3239000 3522000 3627000 3735000 3847000 3963000 4082000 4205000 4330000 4460000 4594000 4733000 4874000 5021000 5171000 5327000 5485000 5651000 5820000 5994000 6174000
OPERATING EXPENSES
Administrative 60000 62000 63000 65000 67000 69000 71000 74000 76000 78000 80000 83000 85000 88000 90000 93000 96000 99000 102000 105000 108000 17 of PGI
Advertising 25000 26000 26000 27000 28000 29000 30000 31000 32000 33000 33000 34000 36000 37000 38000 39000 40000 41000 42000 44000 45000 07 of PGI
Repairs amp Maintenance 100000 103000 106000 109000 112000 116000 119000 123000 126000 130000 134000 138000 142000 146000 151000 155000 160000 165000 170000 175000 180000 28 of PGI
Utilities 150000 154000 159000 163000 168000 173000 179000 184000 189000 195000 201000 207000 213000 220000 226000 233000 240000 247000 254000 262000 270000 42 of PGI
Payroll 179000 185000 190000 196000 202000 208000 214000 221000 227000 234000 241000 248000 256000 263000 271000 280000 288000 297000 305000 315000 324000 50 of PGI
Insurance 70000 72000 74000 76000 79000 81000 83000 86000 88000 91000 94000 97000 99000 102000 106000 109000 112000 115000 119000 122000 126000 19 of PGI
Property Taxes 399000 411000 423000 436000 449000 462000 476000 490000 505000 520000 536000 552000 568000 585000 603000 621000 640000 659000 679000 699000 720000 111 of PGI
Management Fee 130000 141000 145000 149000 154000 159000 163000 168000 173000 178000 184000 189000 195000 201000 207000 213000 219000 226000 233000 240000 247000 40 of EGI
Reserves 65000 70000 73000 75000 77000 79000 82000 84000 87000 89000 92000 95000 97000 100000 103000 107000 110000 113000 116000 120000 123000 20 of EGI
Total Expenses 1178000 1224000 1259000 1296000 1336000 1376000 1417000 1461000 1503000 1548000 1595000 1643000 1691000 1742000 1795000 1850000 1905000 1962000 2020000 2082000 2143000
NET OPERATING INCOME 2061000 2298000 2368000 2439000 2511000 2587000 2665000 2744000 2827000 2912000 2999000 3090000 3183000 3279000 3376000 3477000 3580000 3689000 3800000 3912000 4031000
Annual Debt Service (500 25 -yr Amort) 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551
DSCR 144x 161x 166x 171x 176x 181x 187x 192x 198x 204x 210x 216x 223x 230x 236x 243x 251x 258x 266x 274x
Mortgage Balance $19944113 $19502744 $19038794 $18551107 $18038470 $17499604 $16933170 $16337755 $15711878 $15053980 $14362423 $13635484 $12871354 $12068129 $11223810 $10336294 $9403370 $8422717 $7391892 $6308327
BEFORE TAX CASH FLOW 632449 869449 939449 1010449 1082449 1158449 1236449 1315449 1398449 1483449 1570449 1661449 1754449 1850449 1947449 2048449 2151449 2260449 2371449 2483449
REVERSION CALCULATIONS
Project NOI (Year 21) 4031000
Cap Rate 700
Gross Sales Proceeds 57585714
Less Selling Costs 30 (1727571)
Net Sales Proceeds 55858143
Less Mortgage Balance (6308327)
Net Reversion Proceeds 49549816
NOI Margin 636 652 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (8728000) 00 00 632449 869449 939449 1010449 1082449 1158449 1236449 1315449 1398449 1483449 1570449 1661449 1754449 1850449 1947449 2048449 2151449 2260449 2371449 52033265
ROE 1419 IRR 72 100 108 116 124 133 142 151 160 170 180 190 201 212 223 235 246 259 272 285
ONE BIG SKY CENTER
Billings Montana
RESIDENTIAL - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 67840000 Land Acquisition $ 16000000 $20000 DU
Construction $ 156000000 $195000 DU
Debt Financing $ 158294000 FFampE $ 8000000 $10000 DU
Development $ 32800000 20
Financing $ 3328000 70 Loan to Project Costs
Contingency $ 10006000 5
TOTAL $ 226134000 TOTAL $ 226134000 $282668 DU
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Number of Units 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800
Average Monthly Rent $2840 $2925 $3013 $3103 $3196 $3292 $3391 $3493 $3598 $3706 $3817 $3931 $4049 $4171 $4296 $4425
Rental Rate per Square Foot $355 $366 $377 $388 $400 $412 $424 $437 $450 $463 $477 $491 $506 $521 $537 $553 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 27264000 28082000 28924000 29792000 30686000 31606000 32555000 33531000 34537000 35573000 36641000 37740000 38872000 40038000 41239000 42476000
Miscellaneous 545000 562000 578000 596000 614000 632000 651000 671000 691000 711000 733000 755000 777000 801000 825000 850000 2 of PGI
Vacancy Collections Losses (2781000) (1432000) (1475000) (1519000) (1565000) (1612000) (1660000) (1710000) (1761000) (1814000) (1869000) (1925000) (1982000) (2042000) (2103000) (2166000)
Effective Gross Income 25028000 27212000 28027000 28869000 29735000 30626000 31546000 32492000 33467000 34470000 35505000 36570000 37667000 38797000 39961000 41160000
OPERATING EXPENSES
Administrative 462000 476000 490000 505000 520000 536000 552000 568000 585000 603000 621000 640000 659000 679000 699000 720000 17 of PGI
Advertising 193000 198000 204000 210000 217000 223000 230000 237000 244000 251000 259000 267000 275000 283000 291000 300000 07 of PGI
Repairs amp Maintenance 770000 793000 817000 842000 867000 893000 920000 947000 976000 1005000 1035000 1066000 1098000 1131000 1165000 1200000 28 of PGI
Utilities 1155000 1190000 1226000 1262000 1300000 1339000 1379000 1421000 1463000 1507000 1553000 1599000 1647000 1697000 1747000 1800000 42 of PGI
Payroll 1386000 1428000 1471000 1515000 1560000 1607000 1655000 1705000 1756000 1809000 1863000 1919000 1977000 2036000 2097000 2160000 50 of PGI
Insurance 539000 555000 572000 589000 607000 625000 644000 663000 683000 703000 725000 746000 769000 792000 815000 840000 19 of PGI
Property Taxes 3081000 3173000 3268000 3366000 3467000 3571000 3679000 3789000 3903000 4019000 4140000 4264000 4392000 4524000 4660000 4800000 111 of PGI
Management Fee 1001000 1088000 1121000 1155000 1189000 1225000 1262000 1300000 1339000 1379000 1420000 1463000 1507000 1552000 1598000 1646000 40 of EGI
Reserves 501000 544000 561000 577000 595000 613000 631000 650000 669000 689000 710000 731000 753000 776000 799000 823000 20 of EGI
Total Expenses 9088000 9445000 9730000 10021000 10322000 10632000 10952000 11280000 11618000 11965000 12326000 12695000 13077000 13470000 13871000 14289000
NET OPERATING INCOME 15940000 17767000 18297000 18848000 19413000 19994000 20594000 21212000 21849000 22505000 23179000 23875000 24590000 25327000 26090000 26871000
Annual Debt Service (500 25 -yr Amort) 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452
DSCR 144x 160x 165x 170x 175x 180x 185x 191x 197x 203x 209x 215x 221x 228x 235x
Mortgage Balance $155030125 $151599264 $147992874 $144201974 $140217124 $136028402 $131625377 $126997085 $122132001 $117018009 $111642377 $105991716 $100051957 $93808309 $87245224
BEFORE TAX CASH FLOW 4835548 6662548 7192548 7743548 8308548 8889548 9489548 10107548 10744548 11400548 12074548 12770548 13485548 14222548 14985548
REVERSION CALCULATIONS
Project NOI (Year 21) 26871000
Cap Rate 700
Gross Sales Proceeds 383871429
Less Selling Costs 30 (11516143)
Net Sales Proceeds 372355286
Less Mortgage Balance (87245224)
Net Reversion Proceeds 285110062
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (67840000) 00 00 4835548 6662548 7192548 7743548 8308548 8889548 9489548 10107548 10744548 11400548 12074548 12770548 13485548 14222548 300095610
ROE 1451 IRR 71 98 106 114 122 131 140 149 158 168 178 188 199 210 221
ONE BIG SKY CENTER
Billings Montana
RESIDENTIAL - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 16834000 Land Acquisition $ 4500000 $15000 DU
Construction $ 43500000 $145000 DU
Debt Financing $ 39278000 FFampE $ 2400000 $8000 DU
Development $ 9180000 20
Public Investment $ 7200000 Financing $ 931000 70 Loan to Project Costs
Contingency $ 2801000 5
TOTAL $ 63312000 TOTAL $ 63312000 $211040 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Monthly Rent $1760 $1813 $1867 $1923 $1981 $2040 $2102 $2165 $2230 $2296 $2365 $2436 $2509 $2585 $2662 $2742 $2824 $2909 $2996 $3086 $3179
Rental Rate per Square Foot $220 $227 $233 $240 $248 $255 $263 $271 $279 $287 $296 $305 $314 $323 $333 $343 $353 $364 $375 $386 $397 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 6336000 6526000 6722000 6924000 7131000 7345000 7566000 7792000 8026000 8267000 8515000 8771000 9034000 9305000 9584000 9871000 10167000 10472000 10787000 11110000 11444000
Miscellaneous 127000 131000 134000 138000 143000 147000 151000 156000 161000 165000 170000 175000 181000 186000 192000 197000 203000 209000 216000 222000 229000 2 of PGI
Vacancy Collections Losses (646000) (333000) (343000) (353000) (364000) (375000) (386000) (397000) (409000) (422000) (434000) (447000) (461000) (475000) (489000) (503000) (519000) (534000) (550000) (567000) (584000)
Effective Gross Income 5817000 6324000 6513000 6709000 6910000 7117000 7331000 7551000 7778000 8010000 8251000 8499000 8754000 9016000 9287000 9565000 9851000 10147000 10453000 10765000 11089000
OPERATING EXPENSES
Administrative 107000 111000 114000 117000 121000 124000 128000 132000 136000 140000 144000 149000 153000 158000 162000 167000 172000 177000 183000 188000 194000 17 of PGI
Advertising 45000 46000 47000 49000 50000 52000 53000 55000 57000 58000 60000 62000 64000 66000 68000 70000 72000 74000 76000 78000 81000 07 of PGI
Repairs amp Maintenance 179000 184000 190000 196000 201000 207000 214000 220000 227000 234000 241000 248000 255000 263000 271000 279000 287000 296000 305000 314000 323000 28 of PGI
Utilities 268000 277000 285000 293000 302000 311000 321000 330000 340000 350000 361000 372000 383000 394000 406000 418000 431000 444000 457000 471000 485000 42 of PGI
Payroll 322000 332000 342000 352000 363000 373000 385000 396000 408000 420000 433000 446000 459000 473000 487000 502000 517000 532000 549000 565000 582000 50 of PGI
Insurance 125000 129000 133000 137000 141000 145000 150000 154000 159000 163000 168000 173000 179000 184000 190000 195000 201000 207000 213000 220000 226000 19 of PGI
Property Taxes 716000 737000 759000 782000 806000 830000 855000 880000 907000 934000 962000 991000 1021000 1051000 1083000 1115000 1149000 1183000 1219000 1255000 1293000 111 of PGI
Management Fee 233000 253000 261000 268000 276000 285000 293000 302000 311000 320000 330000 340000 350000 361000 371000 383000 394000 406000 418000 431000 444000 40 of EGI
Reserves 116000 126000 130000 134000 138000 142000 147000 151000 156000 160000 165000 170000 175000 180000 186000 191000 197000 203000 209000 215000 222000 20 of EGI
Total Expenses 2111000 2195000 2261000 2328000 2398000 2469000 2546000 2620000 2701000 2779000 2864000 2951000 3039000 3130000 3224000 3320000 3420000 3522000 3629000 3737000 3850000
NET OPERATING INCOME 3706000 4129000 4252000 4381000 4512000 4648000 4785000 4931000 5077000 5231000 5387000 5548000 5715000 5886000 6063000 6245000 6431000 6625000 6824000 7028000 7239000
Annual Debt Service (500 25 -yr Amort) 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383
DSCR 135x 150x 154x 159x 164x 169x 174x 179x 184x 190x 196x 201x 207x 214x 220x 227x 233x 240x 248x 255x
Mortgage Balance $38468124 $37616814 $36721948 $35781300 $34792527 $33753166 $32660629 $31512196 $30305007 $29036056 $27702182 $26300066 $24826214 $23276958 $21648438 $19936601 $18137182 $16245702 $14257450 $12167476
BEFORE TAX CASH FLOW 950617 1373617 1496617 1625617 1756617 1892617 2029617 2175617 2321617 2475617 2631617 2792617 2959617 3130617 3307617 3489617 3675617 3869617 4068617 4272617
REVERSION CALCULATIONS
Project NOI (Year 21) 7239000
Cap Rate 700
Gross Sales Proceeds 103414286
Less Selling Costs 30 (3102429)
Net Sales Proceeds 100311857
Less Mortgage Balance (12167476)
Net Reversion Proceeds 88144381
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (16834000) 00 00 950617 1373617 1496617 1625617 1756617 1892617 2029617 2175617 2321617 2475617 2631617 2792617 2959617 3130617 3307617 3489617 3675617 3869617 4068617 92416998
ROE 1312 IRR 56 82 89 97 104 112 121 129 138 147 156 166 176 186 196 207 218 230 242 254
ONE BIG SKY CENTER
Billings Montana
RESIDENTIAL - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 18994000 Land Acquisition $ 4500000 $15000 DU
Construction $ 43500000 $145000 DU
Debt Financing $ 44318000 FFampE $ 2400000 $8000 DU
Development $ 9180000 20
Financing $ 931000 70 Loan to Project Costs
Contingency $ 2801000 5
TOTAL $ 63312000 TOTAL $ 63312000 $211040 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Monthly Rent $2120 $2184 $2249 $2317 $2386 $2458 $2531 $2607 $2686 $2766 $2849 $2935 $3023 $3113 $3207 $3303 $3402 $3504 $3609 $3717 $3829
Rental Rate per Square Foot $265 $273 $281 $290 $298 $307 $316 $326 $336 $346 $356 $367 $378 $389 $401 $413 $425 $438 $451 $465 $479 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 7632000 7861000 8097000 8340000 8590000 8848000 9113000 9386000 9668000 9958000 10257000 10564000 10881000 11208000 11544000 11890000 12247000 12615000 12993000 13383000 13784000
Miscellaneous 153000 157000 162000 167000 172000 177000 182000 188000 193000 199000 205000 211000 218000 224000 231000 238000 245000 252000 260000 268000 276000 2 of PGI
Vacancy Collections Losses (779000) (401000) (413000) (425000) (438000) (451000) (465000) (479000) (493000) (508000) (523000) (539000) (555000) (572000) (589000) (606000) (625000) (643000) (663000) (683000) (703000)
Effective Gross Income 7006000 7617000 7846000 8082000 8324000 8574000 8830000 9095000 9368000 9649000 9939000 10236000 10544000 10860000 11186000 11522000 11867000 12224000 12590000 12968000 13357000
OPERATING EXPENSES
Administrative 129000 133000 137000 141000 146000 150000 154000 159000 164000 169000 174000 179000 184000 190000 196000 202000 208000 214000 220000 227000 234000 17 of PGI
Advertising 54000 56000 57000 59000 61000 62000 64000 66000 68000 70000 72000 75000 77000 79000 82000 84000 86000 89000 92000 95000 97000 07 of PGI
Repairs amp Maintenance 216000 222000 229000 236000 243000 250000 257000 265000 273000 281000 290000 298000 307000 317000 326000 336000 346000 356000 367000 378000 389000 28 of PGI
Utilities 323000 333000 343000 353000 364000 375000 386000 398000 410000 422000 435000 448000 461000 475000 489000 504000 519000 535000 551000 567000 584000 42 of PGI
Payroll 388000 400000 412000 424000 437000 450000 463000 477000 492000 506000 522000 537000 553000 570000 587000 605000 623000 641000 661000 681000 701000 50 of PGI
Insurance 151000 155000 160000 165000 170000 175000 180000 186000 191000 197000 203000 209000 215000 222000 228000 235000 242000 249000 257000 265000 273000 19 of PGI
Property Taxes 862000 888000 915000 942000 971000 1000000 1030000 1061000 1092000 1125000 1159000 1194000 1230000 1266000 1304000 1344000 1384000 1425000 1468000 1512000 1558000 111 of PGI
Management Fee 280000 305000 314000 323000 333000 343000 353000 364000 375000 386000 398000 409000 422000 434000 447000 461000 475000 489000 504000 519000 534000 40 of EGI
Reserves 140000 152000 157000 162000 166000 171000 177000 182000 187000 193000 199000 205000 211000 217000 224000 230000 237000 244000 252000 259000 267000 20 of EGI
Total Expenses 2543000 2644000 2724000 2805000 2891000 2976000 3064000 3158000 3252000 3349000 3452000 3554000 3660000 3770000 3883000 4001000 4120000 4242000 4372000 4503000 4637000
NET OPERATING INCOME 4463000 4973000 5122000 5277000 5433000 5598000 5766000 5937000 6116000 6300000 6487000 6682000 6884000 7090000 7303000 7521000 7747000 7982000 8218000 8465000 8720000
Annual Debt Service (500 25 -yr Amort) 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943
DSCR 144x 160x 165x 170x 175x 180x 185x 191x 197x 203x 209x 215x 221x 228x 235x 242x 249x 257x 264x 272x
Mortgage Balance $43404204 $42443657 $41433966 $40372617 $39256968 $38084240 $36851513 $35555718 $34193627 $32761849 $31256819 $29674788 $28011817 $26263766 $24426282 $22494788 $20464475 $18330287 $16086911 $13728759
BEFORE TAX CASH FLOW 1354057 1864057 2013057 2168057 2324057 2489057 2657057 2828057 3007057 3191057 3378057 3573057 3775057 3981057 4194057 4412057 4638057 4873057 5109057 5356057
REVERSION CALCULATIONS
Project NOI (Year 21) 8720000
Cap Rate 700
Gross Sales Proceeds 124571429
Less Selling Costs 30 (3737143)
Net Sales Proceeds 120834286
Less Mortgage Balance (13728759)
Net Reversion Proceeds 107105527
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (18994000) 00 00 1354057 1864057 2013057 2168057 2324057 2489057 2657057 2828057 3007057 3191057 3378057 3573057 3775057 3981057 4194057 4412057 4638057 4873057 5109057 112461584
ROE 1411 IRR 71 98 106 114 122 131 140 149 158 168 178 188 199 210 221 232 244 257 269 282
ONE BIG SKY CENTER
Billings Montana
MEDICAL OFFICE - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 32865000 Land Acquisition $ 6800000 $3400 SF
Construction $ 42000000 $21000 SF
Debt Financing $ 61034000 Development $ 10500000 25
Financing $ 3451000 65 Loan to Project Costs
TI Allowances $ 27000000 $13500 SF
Contingency $ 4148000 5
TOTAL $ 93899000 TOTAL $ 93899000 $46950 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $4250 $4378 $4509 $4644 $4783 $4927 $5075 $5227 $5384 $5545 $5712 $5883 $6059 $6241 $6429 $6621 3
OPERATING REVENUES
Office Rent (NNN) 8500000 8755000 9018000 9288000 9567000 9854000 10149000 10454000 10768000 11091000 11423000 11766000 12119000 12483000 12857000 13243000
Expense Reimbursements 3531000 3601000 3674000 3747000 3822000 3898000 3976000 4056000 4137000 4220000 4304000 4390000 4478000 4568000 4659000 4752000
Vacancy Allowance (1203000) (927000) (635000) (652000) (669000) (688000) (706000) (726000) (745000) (766000) (786000) (808000) (830000) (853000) (876000) (900000)
Total Revenues 10828000 11429000 12057000 12383000 12720000 13064000 13419000 13784000 14160000 14545000 14941000 15348000 15767000 16198000 16640000 17095000
OPERATING EXPENSES
Operating Expenses 2568000 2619000 2672000 2725000 2780000 2835000 2892000 2950000 3009000 3069000 3130000 3193000 3257000 3322000 3388000 3456000
Property Taxes 963000 982000 1002000 1022000 1042000 1063000 1084000 1106000 1128000 1151000 1174000 1197000 1221000 1246000 1271000 1296000
Total Expenses 3531000 3601000 3674000 3747000 3822000 3898000 3976000 4056000 4137000 4220000 4304000 4390000 4478000 4568000 4659000 4752000
NET OPERATING INCOME 7297000 7828000 8383000 8636000 8898000 9166000 9443000 9728000 10023000 10325000 10637000 10958000 11289000 11630000 11981000 12343000
Annual Debt Service (500 25 -yr Amort) 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584
DSCR 170x 183x 196x 202x 208x 214x 221x 227x 234x 241x 248x 256x 264x 272x 280x
Mortgage Balance $59775536 $58452686 $57062157 $55600486 $54064033 $52448972 $50751281 $48966733 $47090885 $45119064 $43046362 $40867616 $38577401 $36170015 $33639462
BEFORE TAX CASH FLOW 3015416 3546416 4101416 4354416 4616416 4884416 5161416 5446416 5741416 6043416 6355416 6676416 7007416 7348416 7699416
REVERSION CALCULATIONS
Project NOI (Year 21) 12343000
Cap Rate 800
Gross Sales Proceeds 154287500
Less Selling Costs 30 (4628625)
Net Sales Proceeds 149658875
Less Mortgage Balance (33639462)
Net Reversion Proceeds 116019413
Gross Rental Rate $6016 $6178 $6346 $6518 $6695 $6876 $7063 $7255 $7453 $7656 $7864 $8078 $8299 $8526 $8758 $8998
Equity $ (32865000) 00 00 3015416 3546416 4101416 4354416 4616416 4884416 5161416 5446416 5741416 6043416 6355416 6676416 7007416 7348416 123718829
ROE 1460 IRR 92 108 125 132 140 149 157 166 175 184 193 203 213 224 234
ONE BIG SKY CENTER
Billings Montana
MEDICAL OFFICE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 21327000 Land Acquisition $ 4375000 $2500 SF
Construction $ 27300000 $15600 SF
Debt Financing $ 39607000 Development $ 6825000 25
Financing $ 2241000 65 Loan to Project Costs
TI Allowances $ 17500000 $10000 SF
Contingency $ 2693000 5
TOTAL $ 60934000 TOTAL $ 60934000 $34819 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3165 $3260 $3358 $3458 $3562 $3669 $3779 $3893 $4009 $4130 $4253 $4381 $4513 $4648 $4787 $4931 $5079 $5231 $5388 $5550 $5716 3
OPERATING REVENUES
Office Rent (NNN) 5539000 5705000 5876000 6052000 6234000 6421000 6614000 6812000 7016000 7227000 7444000 7667000 7897000 8134000 8378000 8629000 8888000 9155000 9429000 9712000 10004000
Expense Reimbursements 2299000 2345000 2392000 2439000 2489000 2538000 2589000 2641000 2694000 2747000 2802000 2859000 2916000 2974000 3033000 3094000 3156000 3219000 3284000 3349000 3417000
Vacancy Allowance (784000) (604000) (413000) (425000) (436000) (448000) (460000) (473000) (486000) (499000) (512000) (526000) (541000) (555000) (571000) (586000) (602000) (619000) (636000) (653000) (671000)
Total Revenues 7054000 7446000 7855000 8066000 8287000 8511000 8743000 8980000 9224000 9475000 9734000 10000000 10272000 10553000 10840000 11137000 11442000 11755000 12077000 12408000 12750000
OPERATING EXPENSES
Operating Expenses 1672000 1705000 1740000 1774000 1810000 1846000 1883000 1921000 1959000 1998000 2038000 2079000 2121000 2163000 2206000 2250000 2295000 2341000 2388000 2436000 2485000
Property Taxes 627000 640000 652000 665000 679000 692000 706000 720000 735000 749000 764000 780000 795000 811000 827000 844000 861000 878000 896000 913000 932000
Total Expenses 2299000 2345000 2392000 2439000 2489000 2538000 2589000 2641000 2694000 2747000 2802000 2859000 2916000 2974000 3033000 3094000 3156000 3219000 3284000 3349000 3417000
NET OPERATING INCOME 4755000 5101000 5463000 5627000 5798000 5973000 6154000 6339000 6530000 6728000 6932000 7141000 7356000 7579000 7807000 8043000 8286000 8536000 8793000 9059000 9333000
Annual Debt Service (500 25 -yr Amort) 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463
DSCR 171x 184x 197x 203x 209x 215x 221x 228x 235x 242x 249x 257x 265x 273x 281x 289x 298x 307x 316x 326x
Mortgage Balance $38790341 $37931899 $37029538 $36081011 $35083955 $34035888 $32934200 $31776148 $30558847 $29279267 $27934221 $26520360 $25034163 $23471930 $21829770 $20103593 $18289103 $16381779 $14376873 $12269393
BEFORE TAX CASH FLOW 1976537 2322537 2684537 2848537 3019537 3194537 3375537 3560537 3751537 3949537 4153537 4362537 4577537 4800537 5028537 5264537 5507537 5757537 6014537 6280537
REVERSION CALCULATIONS
Project NOI (Year 21) 9333000
Cap Rate 800
Gross Sales Proceeds 116662500
Less Selling Costs 30 (3499875)
Net Sales Proceeds 113162625
Less Mortgage Balance (12269393)
Net Reversion Proceeds 100893232
Gross Rental Rate $4479 $4600 $4725 $4852 $4985 $5119 $5259 $5402 $5549 $5699 $5855 $6015 $6179 $6347 $6521 $6699 $6882 $7071 $7265 $7463 $7669
Equity $ (21327000) 00 00 1976537 2322537 2684537 2848537 3019537 3194537 3375537 3560537 3751537 3949537 4153537 4362537 4577537 4800537 5028537 5264537 5507537 5757537 6014537 107173769
ROE 1444 IRR 93 109 126 134 142 150 158 167 176 185 195 205 215 225 236 247 258 270 282 294
ONE BIG SKY CENTER
Billings Montana
AMBULATORY MEDICAL WELLNESS - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 43599000 Land Acquisition $ - $000 SF
Construction $ 122000000 $30500 SF
Debt Financing $ 247062000 FFampE $ 34800000 $8700 SF
Development $ 52700000 25
Financing $ 13320000 85 Loan to Project Costs
Tenant Improvements $ 54000000 $13500 SF
Contingency $ 13841000 5
TOTAL $ 290661000 TOTAL $ 290661000 $72665 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $5055 $5207 $5363 $5524 $5689 $5860 $6036 $6217 $6404 $6596 $6793 $6997 $7207 $7423 $7646 $7876 3
OPERATING REVENUES
Rent (NNN) 20220000 20827000 21451000 22095000 22758000 23441000 24144000 24868000 25614000 26383000 27174000 27989000 28829000 29694000 30585000 31502000
Expense Reimbursements 8345000 8512000 8682000 8856000 9033000 9213000 9398000 9585000 9778000 9973000 10173000 10376000 10584000 10795000 11011000 11231000
Vacancy Allowance (2857000) (2200000) (1507000) (1548000) (1590000) (1633000) (1677000) (1723000) (1770000) (1818000) (1867000) (1918000) (1971000) (2024000) (2080000) (2137000)
Total Revenues 25708000 27139000 28626000 29403000 30201000 31021000 31865000 32730000 33622000 34538000 35480000 36447000 37442000 38465000 39516000 40596000
OPERATING EXPENSES
Operating Expenses 6419000 6547000 6678000 6812000 6948000 7087000 7229000 7373000 7521000 7671000 7825000 7981000 8141000 8304000 8470000 8639000
Property Taxes 1926000 1965000 2004000 2044000 2085000 2126000 2169000 2212000 2257000 2302000 2348000 2395000 2443000 2491000 2541000 2592000
Total Expenses 8345000 8512000 8682000 8856000 9033000 9213000 9398000 9585000 9778000 9973000 10173000 10376000 10584000 10795000 11011000 11231000
NET OPERATING INCOME 17363000 18627000 19944000 20547000 21168000 21808000 22467000 23145000 23844000 24565000 25307000 26071000 26858000 27670000 28505000 29365000
Annual Debt Service (450 25 -yr Amort) 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010
DSCR 105x 113x 121x 125x 128x 132x 136x 140x 145x 149x 154x 158x 163x 168x 173x
Mortgage Balance $241588811 $235864184 $229876570 $223613885 $217063493 $210212178 $203046115 $195550843 $187711241 $179511488 $170935040 $161964592 $152582043 $142768461 $132504045
BEFORE TAX CASH FLOW 883990 2147990 3464990 4067990 4688990 5328990 5987990 6665990 7364990 8085990 8827990 9591990 10378990 11190990 12025990
REVERSION CALCULATIONS
Project NOI (Year 16) 29365000
Cap Rate 800
Gross Sales Proceeds 367062500
Less Selling Costs 30 (11011875)
Net Sales Proceeds 356050625
Less Mortgage Balance (132504045)
Net Reversion Proceeds 223546580
Gross Rental Rate $7141 $7335 $7533 $7738 $7948 $8164 $8386 $8613 $8848 $9089 $9337 $9591 $9853 $10122 $10399 $10683
Equity $ (43599000) 00 00 883990 2147990 3464990 4067990 4688990 5328990 5987990 6665990 7364990 8085990 8827990 9591990 10378990 11190990 235572570
ROE 1476 IRR 20 49 79 93 108 122 137 153 169 185 202 220 238 257 276
ONE BIG SKY CENTER
Billings Montana
AMBULATORY MEDICAL WELLNESS - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 6081000 Land Acquisition $ - $000 SF
Construction $ 17025000 $22700 SF
Debt Financing $ 34457000 FFampE $ 4875000 $6500 SF
Development $ 7350000 25
Financing $ 1858000 85 Loan to Project Costs
Tenant Improvements $ 7500000 $10000 SF
Contingency $ 1930000 5
TOTAL $ 40538000 TOTAL $ 40538000 $54051 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3760 $3873 $3989 $4109 $4232 $4359 $4490 $4624 $4763 $4906 $5053 $5205 $5361 $5522 $5687 $5858 $6034 $6215 $6401 $6593 $6791 3
OPERATING REVENUES
Rent (NNN) 2820000 2905000 2992000 3081000 3174000 3269000 3367000 3468000 3572000 3679000 3790000 3904000 4021000 4141000 4266000 4393000 4525000 4661000 4801000 4945000 5093000
Expense Reimbursements 1165000 1188000 1212000 1236000 1261000 1286000 1312000 1338000 1365000 1392000 1420000 1448000 1477000 1507000 1537000 1568000 1599000 1632000 1664000 1697000 1731000
Vacancy Allowance (399000) (307000) (210000) (216000) (222000) (228000) (234000) (240000) (247000) (254000) (261000) (268000) (275000) (282000) (290000) (298000) (306000) (315000) (323000) (332000) (341000)
Total Revenues 3586000 3786000 3994000 4101000 4213000 4327000 4445000 4566000 4690000 4817000 4949000 5084000 5223000 5366000 5513000 5663000 5818000 5978000 6142000 6310000 6483000
OPERATING EXPENSES
Operating Expenses 896000 914000 932000 951000 970000 989000 1009000 1029000 1050000 1071000 1092000 1114000 1136000 1159000 1182000 1206000 1230000 1255000 1280000 1305000 1331000
Property Taxes 269000 274000 280000 285000 291000 297000 303000 309000 315000 321000 328000 334000 341000 348000 355000 362000 369000 377000 384000 392000 400000
Total Expenses 1165000 1188000 1212000 1236000 1261000 1286000 1312000 1338000 1365000 1392000 1420000 1448000 1477000 1507000 1537000 1568000 1599000 1632000 1664000 1697000 1731000
NET OPERATING INCOME 2421000 2598000 2782000 2865000 2952000 3041000 3133000 3228000 3325000 3425000 3529000 3636000 3746000 3859000 3976000 4095000 4219000 4346000 4478000 4613000 4752000
Annual Debt Service (450 25 -yr Amort) 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278
DSCR 105x 113x 121x 125x 128x 132x 136x 140x 145x 149x 154x 158x 163x 168x 173x 178x 184x 189x 195x 201x
Mortgage Balance $33693671 $32895274 $32060199 $31186761 $30273198 $29317665 $28318236 $27272893 $26179527 $25035932 $23839800 $22588718 $21280162 $19911491 $18479944 $16982631 $15416532 $13778487 $12065191 $10273186
BEFORE TAX CASH FLOW 122722 299722 483722 566722 653722 742722 834722 929722 1026722 1126722 1230722 1337722 1447722 1560722 1677722 1796722 1920722 2047722 2179722 2314722
REVERSION CALCULATIONS
Project NOI (Year 16) 4752000
Cap Rate 800
Gross Sales Proceeds 59400000
Less Selling Costs 30 (1782000)
Net Sales Proceeds 57618000
Less Mortgage Balance (18479944)
Net Reversion Proceeds 39138056
Gross Rental Rate $5313 $5457 $5605 $5756 $5913 $6073 $6239 $6408 $6583 $6761 $6947 $7136 $7331 $7531 $7737 $7948 $8165 $8391 $8620 $8856 $9099
Equity $ (6081000) 00 00 122722 299722 483722 566722 653722 742722 834722 929722 1026722 1126722 1230722 1337722 1447722 1560722 1677722 1796722 1920722 2047722 2179722 41452778
ROE 1418 IRR 20 49 80 93 108 122 137 153 169 185 202 220 238 257 276 295 316 337 358 381
ONE BIG SKY CENTER
Billings Montana
BIOSCIENCE - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 24494000 Land Acquisition $ 4250000 $3400 SF
Construction $ 26125000 $20900 SF
Debt Financing $ 45490000 FFampE $ 4375000 $3500 SF
Development $ 12000000 25
Financing $ 2604000 65 Loan to Project Costs
TI Allowances $ 17500000 $14000 SF
Contingency $ 3130000 5
TOTAL $ 69984000 TOTAL $ 69984000 $55987 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $4975 $5124 $5278 $5436 $5599 $5767 $5940 $6119 $6302 $6491 $6686 $6887 $7093 $7306 $7525 $7751 3
OPERATING REVENUES
Rent (NNN) 6219000 6405000 6597000 6795000 6999000 7209000 7426000 7648000 7878000 8114000 8357000 8608000 8866000 9132000 9406000 9689000
Expense Reimbursements 2608000 2660000 2713000 2768000 2823000 2880000 2937000 2996000 3055000 3116000 3179000 3243000 3307000 3374000 3441000 3510000
Vacancy Allowance (883000) (680000) (466000) (478000) (491000) (504000) (518000) (532000) (547000) (562000) (577000) (593000) (609000) (625000) (642000) (660000)
Total Revenues 7944000 8385000 8844000 9085000 9331000 9585000 9845000 10112000 10386000 10668000 10959000 11258000 11564000 11881000 12205000 12539000
OPERATING EXPENSES
Operating Expenses 2006000 2046000 2087000 2129000 2171000 2215000 2259000 2304000 2350000 2397000 2445000 2494000 2544000 2595000 2647000 2700000
Property Taxes 602000 614000 626000 639000 652000 665000 678000 692000 705000 719000 734000 749000 763000 779000 794000 810000
Total Expenses 2608000 2660000 2713000 2768000 2823000 2880000 2937000 2996000 3055000 3116000 3179000 3243000 3307000 3374000 3441000 3510000
NET OPERATING INCOME 5336000 5725000 6131000 6317000 6508000 6705000 6908000 7116000 7331000 7552000 7780000 8015000 8257000 8507000 8764000 9029000
Annual Debt Service (500 25 -yr Amort) 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160
DSCR 167x 179x 192x 198x 204x 210x 216x 223x 230x 237x 244x 251x 259x 267x 275x
Mortgage Balance $44552039 $43566089 $42529697 $41440281 $40295128 $39091387 $37826060 $36495997 $35097886 $33628244 $32083413 $30459545 $28752597 $26958318 $25072240
BEFORE TAX CASH FLOW 2144840 2533840 2939840 3125840 3316840 3513840 3716840 3924840 4139840 4360840 4588840 4823840 5065840 5315840 5572840
REVERSION CALCULATIONS
Project NOI (Year 16) 9029000
Cap Rate 800
Gross Sales Proceeds 112862500
Less Selling Costs 30 (3385875)
Net Sales Proceeds 109476625
Less Mortgage Balance (25072240)
Net Reversion Proceeds 84404385
Gross Rental Rate $7062 $7252 $7448 $7650 $7858 $8071 $8290 $8515 $8746 $8984 $9229 $9481 $9738 $10005 $10278 $10559
Equity $ (24494000) 00 00 2144840 2533840 2939840 3125840 3316840 3513840 3716840 3924840 4139840 4360840 4588840 4823840 5065840 5315840 89977224
ROE 1428 IRR 88 103 120 128 135 143 152 160 169 178 187 197 207 217 228
ONE BIG SKY CENTER
Billings Montana
BIOSCIENCE - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 5868000 Land Acquisition $ 1250000 $2500 SF
Construction $ 7750000 $15500 SF
Debt Financing $ 10897000 FFampE $ 1250000 $2500 SF
Development $ 3563000 25
Public Investment $ 4000000 Financing $ 773000 65 Loan to Project Costs
TI Allowances $ 5250000 $10500 SF
Contingency $ 929000 5
TOTAL $ 20765000 TOTAL $ 20765000 $41530 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2985 $3075 $3167 $3262 $3360 $3460 $3564 $3671 $3781 $3895 $4012 $4132 $4256 $4384 $4515 $4651 $4790 $4934 $5082 $5234 $5391 3
OPERATING REVENUES
Rent (NNN) 1493000 1537000 1583000 1631000 1680000 1730000 1782000 1836000 1891000 1947000 2006000 2066000 2128000 2192000 2258000 2325000 2395000 2467000 2541000 2617000 2696000
Expense Reimbursements 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
Vacancy Allowance (197000) (152000) (104000) (107000) (110000) (113000) (116000) (119000) (123000) (126000) (129000) (133000) (137000) (141000) (144000) (148000) (153000) (157000) (161000) (166000) (170000)
Total Revenues 1774000 1873000 1976000 2031000 2088000 2145000 2205000 2266000 2328000 2392000 2459000 2528000 2597000 2670000 2745000 2820000 2898000 2980000 3063000 3148000 3236000
OPERATING EXPENSES
Operating Expenses 299000 305000 311000 317000 324000 330000 337000 343000 350000 357000 364000 372000 379000 387000 395000 402000 410000 419000 427000 436000 444000
Property Taxes 179000 183000 186000 190000 194000 198000 202000 206000 210000 214000 218000 223000 227000 232000 236000 241000 246000 251000 256000 261000 266000
Total Expenses 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
NET OPERATING INCOME 1296000 1385000 1479000 1524000 1570000 1617000 1666000 1717000 1768000 1821000 1877000 1933000 1991000 2051000 2114000 2177000 2242000 2310000 2380000 2451000 2526000
Annual Debt Service (500 25 -yr Amort) 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433
DSCR 170x 181x 193x 199x 205x 212x 218x 225x 231x 238x 246x 253x 260x 268x 277x 285x 293x 302x 311x 321x
Mortgage Balance $10672314 $10436133 $10187868 $9926901 $9652583 $9364230 $9061125 $8742512 $8407599 $8055550 $7685490 $7296497 $6887603 $6457788 $6005984 $5531064 $5031847 $4507088 $3955482 $3375655
BEFORE TAX CASH FLOW 531567 620567 714567 759567 805567 852567 901567 952567 1003567 1056567 1112567 1168567 1226567 1286567 1349567 1412567 1477567 1545567 1615567 1686567
REVERSION CALCULATIONS
Project NOI (Year 21) 2526000
Cap Rate 800
Gross Sales Proceeds 31575000
Less Selling Costs 30 (947250)
Net Sales Proceeds 30627750
Less Mortgage Balance (3375655)
Net Reversion Proceeds 27252095
Gross Rental Rate $3942 $4050 $4160 $4276 $4396 $4516 $4642 $4770 $4902 $5036 $5176 $5322 $5468 $5622 $5778 $5936 $6102 $6274 $6448 $6628 $6812
Equity $ (5868000) 00 00 531567 620567 714567 759567 805567 852567 901567 952567 1003567 1056567 1112567 1168567 1226567 1286567 1349567 1412567 1477567 1545567 1615567 28938662
ROE 1421 IRR 91 106 122 129 137 145 154 162 171 180 190 199 209 219 230 241 252 263 275 287
ONE BIG SKY CENTER
Billings Montana
BIOSCIENCE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 7268000 Land Acquisition $ 1250000 $2500 SF
Construction $ 7750000 $15500 SF
Debt Financing $ 13497000 FFampE $ 1250000 $2500 SF
Development $ 3563000 25
Financing $ 773000 65 Loan to Project Costs
TI Allowances $ 5250000 $10500 SF
Contingency $ 929000 5
TOTAL $ 20765000 TOTAL $ 20765000 $41530 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3700 $3811 $3925 $4043 $4164 $4289 $4418 $4551 $4687 $4828 $4972 $5122 $5275 $5434 $5597 $5764 $5937 $6116 $6299 $6488 $6683 3
OPERATING REVENUES
Rent (NNN) 1850000 1906000 1963000 2022000 2082000 2145000 2209000 2275000 2344000 2414000 2486000 2561000 2638000 2717000 2798000 2882000 2969000 3058000 3150000 3244000 3341000
Expense Reimbursements 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
Vacancy Allowance (233000) (180000) (123000) (126000) (130000) (134000) (137000) (141000) (145000) (149000) (153000) (158000) (162000) (167000) (171000) (176000) (181000) (186000) (192000) (197000) (203000)
Total Revenues 2095000 2214000 2337000 2403000 2470000 2539000 2611000 2683000 2759000 2836000 2915000 2998000 3082000 3169000 3258000 3349000 3444000 3542000 3641000 3744000 3848000
OPERATING EXPENSES
Operating Expenses 299000 305000 311000 317000 324000 330000 337000 343000 350000 357000 364000 372000 379000 387000 395000 402000 410000 419000 427000 436000 444000
Property Taxes 179000 183000 186000 190000 194000 198000 202000 206000 210000 214000 218000 223000 227000 232000 236000 241000 246000 251000 256000 261000 266000
Total Expenses 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
NET OPERATING INCOME 1617000 1726000 1840000 1896000 1952000 2011000 2072000 2134000 2199000 2265000 2333000 2403000 2476000 2550000 2627000 2706000 2788000 2872000 2958000 3047000 3138000
Annual Debt Service (500 25 -yr Amort) 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825
DSCR 171x 182x 194x 200x 206x 212x 219x 225x 232x 239x 246x 254x 262x 269x 277x 286x 294x 303x 312x 322x
Mortgage Balance $13218704 $12926171 $12618670 $12295438 $11955668 $11598515 $11223089 $10828456 $10413633 $9977586 $9519231 $9037425 $8530969 $7998602 $7438998 $6850764 $6232434 $5582470 $4899252 $4181079
BEFORE TAX CASH FLOW 670175 779175 893175 949175 1005175 1064175 1125175 1187175 1252175 1318175 1386175 1456175 1529175 1603175 1680175 1759175 1841175 1925175 2011175 2100175
REVERSION CALCULATIONS
Project NOI (Year 21) 3138000
Cap Rate 800
Gross Sales Proceeds 39225000
Less Selling Costs 30 (1176750)
Net Sales Proceeds 38048250
Less Mortgage Balance (4181079)
Net Reversion Proceeds 33867171
Gross Rental Rate $4656 $4788 $4920 $5058 $5200 $5346 $5496 $5648 $5808 $5970 $6136 $6312 $6488 $6672 $6858 $7050 $7250 $7456 $7666 $7882 $8102
Equity $ (7268000) 00 00 670175 779175 893175 949175 1005175 1064175 1125175 1187175 1252175 1318175 1386175 1456175 1529175 1603175 1680175 1759175 1841175 1925175 2011175 35967346
ROE 1427 IRR 92 107 123 131 138 146 155 163 172 181 191 200 210 221 231 242 253 265 277 289
ONE BIG SKY CENTER
Billings Montana
COMMERCIAL OFFICE - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 48554000 Land Acquisition $ 11900000 $3400 SF
Construction $ 68250000 $19500 SF
Debt Financing $ 90173000 Development $ 17063000 25
Financing $ 5025000 65 Loan to Project Costs
TI Allowances $ 30450000 $8700 SF
Contingency $ 6039000 5
TOTAL $ 138727000 TOTAL $ 138727000 $39636 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3570 $3677 $3787 $3901 $4018 $4139 $4263 $4391 $4522 $4658 $4798 $4942 $5090 $5243 $5400 $5562 3
OPERATING REVENUES
Office Rent (NNN) 12495000 12870000 13256000 13654000 14063000 14485000 14920000 15367000 15828000 16303000 16792000 17296000 17815000 18349000 18900000 19467000
Expense Reimbursements 5897000 6015000 6136000 6258000 6383000 6511000 6641000 6774000 6909000 7048000 7188000 7332000 7479000 7628000 7781000 7937000
Vacancy Allowance (1839000) (1416000) (970000) (996000) (1022000) (1050000) (1078000) (1107000) (1137000) (1168000) (1199000) (1231000) (1265000) (1299000) (1334000) (1370000)
Total Revenues 16553000 17469000 18422000 18916000 19424000 19946000 20483000 21034000 21600000 22183000 22781000 23397000 24029000 24678000 25347000 26034000
OPERATING EXPENSES
Operating Expenses 4493000 4583000 4675000 4768000 4863000 4961000 5060000 5161000 5264000 5370000 5477000 5586000 5698000 5812000 5928000 6047000
Property Taxes 1404000 1432000 1461000 1490000 1520000 1550000 1581000 1613000 1645000 1678000 1711000 1746000 1781000 1816000 1853000 1890000
Total Expenses 5897000 6015000 6136000 6258000 6383000 6511000 6641000 6774000 6909000 7048000 7188000 7332000 7479000 7628000 7781000 7937000
NET OPERATING INCOME 10656000 11454000 12286000 12658000 13041000 13435000 13842000 14260000 14691000 15135000 15593000 16065000 16550000 17050000 17566000 18097000
Annual Debt Service (500 25 -yr Amort) 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709
DSCR 168x 181x 194x 200x 206x 212x 219x 225x 232x 239x 247x 254x 262x 270x 278x
Mortgage Balance $88313717 $86359309 $84304910 $82145404 $79875414 $77489287 $74981080 $72344550 $69573129 $66659917 $63597660 $60378732 $56995118 $53438391 $49699695
BEFORE TAX CASH FLOW 4330291 5128291 5960291 6332291 6715291 7109291 7516291 7934291 8365291 8809291 9267291 9739291 10224291 10724291 11240291
REVERSION CALCULATIONS
Project NOI (Year 16) 18097000
Cap Rate 800
Gross Sales Proceeds 226212500
Less Selling Costs 30 (6786375)
Net Sales Proceeds 219426125
Less Mortgage Balance (49699695)
Net Reversion Proceeds 169726430
Gross Rental Rate $5255 $5396 $5541 $5689 $5842 $5999 $6160 $6326 $6496 $6672 $6851 $7037 $7227 $7422 $7623 $7830
Equity $ (48554000) 00 00 4330291 5128291 5960291 6332291 6715291 7109291 7516291 7934291 8365291 8809291 9267291 9739291 10224291 10724291 180966721
ROE 1446 IRR 89 106 123 130 138 146 155 163 172 181 191 201 211 221 232
ONE BIG SKY CENTER
Billings Montana
COMMERCIAL OFFICE - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 11276000 Land Acquisition $ 3750000 $2500 SF
Construction $ 21750000 $14500 SF
Debt Financing $ 20942000 Development $ 5438000 25
Financing $ 1603000 65 Loan to Project Costs
Public Investment $ 12000000 TI Allowances $ 9750000 $6500 SF
Contingency $ 1927000 5
TOTAL $ 44218000 TOTAL $ 44218000 $29479 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $1940 $1998 $2058 $2120 $2183 $2249 $2316 $2386 $2458 $2531 $2607 $2685 $2766 $2849 $2934 $3022 $3113 $3207 $3303 $3402 $3504 3
OPERATING REVENUES
Office Rent (NNN) 2910000 2997000 3087000 3180000 3275000 3373000 3475000 3579000 3686000 3797000 3911000 4028000 4149000 4273000 4402000 4534000 4670000 4810000 4954000 5103000 5256000
Expense Reimbursements 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
Vacancy Allowance (439000) (338000) (231000) (237000) (244000) (250000) (257000) (264000) (271000) (278000) (286000) (293000) (301000) (309000) (318000) (326000) (335000) (344000) (353000) (363000) (373000)
Total Revenues 3949000 4167000 4394000 4511000 4631000 4755000 4883000 5013000 5147000 5285000 5427000 5573000 5722000 5876000 6034000 6197000 6364000 6535000 6712000 6894000 7080000
OPERATING EXPENSES
Operating Expenses 1030000 1051000 1072000 1093000 1115000 1137000 1160000 1183000 1207000 1231000 1256000 1281000 1306000 1332000 1359000 1386000 1414000 1442000 1471000 1501000 1531000
Property Taxes 448000 457000 466000 475000 485000 495000 505000 515000 525000 535000 546000 557000 568000 580000 591000 603000 615000 627000 640000 653000 666000
Total Expenses 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
NET OPERATING INCOME 2471000 2659000 2856000 2943000 3031000 3123000 3218000 3315000 3415000 3519000 3625000 3735000 3848000 3964000 4084000 4208000 4335000 4466000 4601000 4740000 4883000
Annual Debt Service (500 25 -yr Amort) 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098
DSCR 168x 181x 194x 200x 206x 213x 219x 226x 232x 240x 247x 254x 262x 270x 278x 286x 295x 304x 313x 323x
Mortgage Balance $20510195 $20056299 $19579180 $19077651 $18550463 $17996303 $17413791 $16801477 $16157835 $15481264 $14770078 $14022506 $13236687 $12410664 $11542380 $10629673 $9670270 $8661783 $7601699 $6487379
BEFORE TAX CASH FLOW 1001902 1189902 1386902 1473902 1561902 1653902 1748902 1845902 1945902 2049902 2155902 2265902 2378902 2494902 2614902 2738902 2865902 2996902 3131902 3270902
REVERSION CALCULATIONS
Project NOI (Year 21) 4883000
Cap Rate 800
Gross Sales Proceeds 61037500
Less Selling Costs 30 (1831125)
Net Sales Proceeds 59206375
Less Mortgage Balance (6487379)
Net Reversion Proceeds 52718996
Gross Rental Rate $2925 $3003 $3083 $3165 $3250 $3337 $3427 $3518 $3612 $3709 $3809 $3911 $4015 $4123 $4235 $4349 $4466 $4586 $4710 $4838 $4969
Equity $ (11276000) 00 00 1001902 1189902 1386902 1473902 1561902 1653902 1748902 1845902 1945902 2049902 2155902 2265902 2378902 2494902 2614902 2738902 2865902 2996902 3131902 55989898
ROE 1426 IRR 89 106 123 131 139 147 155 164 173 182 191 201 211 221 232 243 254 266 278 290
ONE BIG SKY CENTER
Billings Montana
COMMERCIAL OFFICE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 15476000 Land Acquisition $ 3750000 $2500 SF
Construction $ 21750000 $14500 SF
Debt Financing $ 28742000 Development $ 5438000 25
Financing $ 1603000 65 Loan to Project Costs
TI Allowances $ 9750000 $6500 SF
Contingency $ 1927000 5
TOTAL $ 44218000 TOTAL $ 44218000 $29479 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2655 $2735 $2817 $2901 $2988 $3078 $3170 $3265 $3363 $3464 $3568 $3675 $3785 $3899 $4016 $4136 $4260 $4388 $4520 $4656 $4795 3
OPERATING REVENUES
Office Rent (NNN) 3983000 4102000 4225000 4352000 4482000 4617000 4755000 4898000 5045000 5196000 5352000 5513000 5678000 5848000 6024000 6205000 6391000 6582000 6780000 6983000 7193000
Expense Reimbursements 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
Vacancy Allowance (546000) (421000) (288000) (296000) (304000) (312000) (321000) (330000) (339000) (348000) (358000) (368000) (378000) (388000) (399000) (410000) (421000) (433000) (445000) (457000) (470000)
Total Revenues 4915000 5189000 5475000 5624000 5778000 5937000 6099000 6266000 6438000 6614000 6796000 6983000 7174000 7372000 7575000 7784000 7999000 8218000 8446000 8680000 8920000
OPERATING EXPENSES
Operating Expenses 1030000 1051000 1072000 1093000 1115000 1137000 1160000 1183000 1207000 1231000 1256000 1281000 1306000 1332000 1359000 1386000 1414000 1442000 1471000 1501000 1531000
Property Taxes 448000 457000 466000 475000 485000 495000 505000 515000 525000 535000 546000 557000 568000 580000 591000 603000 615000 627000 640000 653000 666000
Total Expenses 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
NET OPERATING INCOME 3437000 3681000 3937000 4056000 4178000 4305000 4434000 4568000 4706000 4848000 4994000 5145000 5300000 5460000 5625000 5795000 5970000 6149000 6335000 6526000 6723000
Annual Debt Service (500 25 -yr Amort) 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274
DSCR 170x 183x 195x 201x 207x 214x 220x 227x 233x 240x 248x 255x 263x 271x 279x 287x 296x 305x 314x 324x
Mortgage Balance $28149367 $27526413 $26871588 $26183261 $25459718 $24699157 $23899684 $23059309 $22175938 $21247373 $20271300 $19245290 $18166787 $17033106 $15841423 $14588772 $13272032 $11887926 $10433007 $8903651
BEFORE TAX CASH FLOW 1420726 1664726 1920726 2039726 2161726 2288726 2417726 2551726 2689726 2831726 2977726 3128726 3283726 3443726 3608726 3778726 3953726 4132726 4318726 4509726
REVERSION CALCULATIONS
Project NOI (Year 21) 6723000
Cap Rate 800
Gross Sales Proceeds 84037500
Less Selling Costs 30 (2521125)
Net Sales Proceeds 81516375
Less Mortgage Balance (8903651)
Net Reversion Proceeds 72612724
Gross Rental Rate $3641 $3740 $3842 $3947 $4055 $4166 $4280 $4397 $4518 $4641 $4769 $4901 $5035 $5173 $5316 $5463 $5613 $5767 $5927 $6091 $6260
Equity $ (15476000) 00 00 1420726 1664726 1920726 2039726 2161726 2288726 2417726 2551726 2689726 2831726 2977726 3128726 3283726 3443726 3608726 3778726 3953726 4132726 4318726 77122450
ROE 1434 IRR 92 108 124 132 140 148 156 165 174 183 192 202 212 223 233 244 255 267 279 291
ONE BIG SKY CENTER
Billings Montana
RETAIL DINING ENTERTAINMENT - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 33347000 Land Acquisition $ 9000000 $4000 SF
Construction $ 43875000 $19500 SF
Debt Financing $ 61929000 Development $ 8775000 20
Financing $ 3418000 65 Loan to Project Costs
TI Allowances $ 26100000 $11600 SF
Contingency $ 4108000 5
TOTAL $ 95276000 TOTAL $ 95276000 $42345 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Projected Sales per Square Foot $48000 $49440 $50923 $52451 $54024 $55645 $57315 $59034 $60805 $62629 $64508 $66443 $68437 $70490 $72604 $74782 3
Leasable Program 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3840 $3955 $4074 $4196 $4322 $4452 $4585 $4723 $4864 $5010 $5161 $5315 $5475 $5639 $5808 $5983 8 NNN Rent vs Tenant Sales
OPERATING REVENUES
Retail Rent (NNN) 8640000 8899000 9167000 9441000 9725000 10017000 10316000 10627000 10944000 11273000 11612000 11959000 12319000 12688000 13068000 13462000
Expense Reimbursements 3971000 4051000 4132000 4214000 4298000 4385000 4472000 4561000 4653000 4745000 4840000 4938000 5037000 5137000 5240000 5345000
Vacancy Allowance (1261000) (971000) (665000) (683000) (701000) (720000) (739000) (759000) (780000) (801000) (823000) (845000) (868000) (891000) (915000) (940000)
Total Revenues 11350000 11979000 12634000 12972000 13322000 13682000 14049000 14429000 14817000 15217000 15629000 16052000 16488000 16934000 17393000 17867000
OPERATING EXPENSES
Operating Expenses 2888000 2946000 3005000 3065000 3126000 3189000 3252000 3317000 3384000 3451000 3520000 3591000 3663000 3736000 3811000 3887000
Property Taxes 1083000 1105000 1127000 1149000 1172000 1196000 1220000 1244000 1269000 1294000 1320000 1347000 1374000 1401000 1429000 1458000
Total Expenses 3971000 4051000 4132000 4214000 4298000 4385000 4472000 4561000 4653000 4745000 4840000 4938000 5037000 5137000 5240000 5345000
NET OPERATING INCOME 7379000 7928000 8502000 8758000 9024000 9297000 9577000 9868000 10164000 10472000 10789000 11114000 11451000 11797000 12153000 12522000
Annual Debt Service (500 25 -yr Amort) 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369
DSCR 170x 182x 196x 202x 208x 214x 220x 227x 234x 241x 248x 256x 264x 272x 280x
Mortgage Balance $60652082 $59309834 $57898914 $56415809 $54856825 $53218081 $51495496 $49684779 $47781424 $45780688 $43677592 $41466897 $39143099 $36700410 $34132750
BEFORE TAX CASH FLOW 3034631 3583631 4157631 4413631 4679631 4952631 5232631 5523631 5819631 6127631 6444631 6769631 7106631 7452631 7808631
REVERSION CALCULATIONS
Project NOI (Year 21) 12522000
Cap Rate 800
Gross Sales Proceeds 156525000
Less Selling Costs 30 (4695750)
Net Sales Proceeds 151829250
Less Mortgage Balance (34132750)
Net Reversion Proceeds 117696500
Gross Rental Rate $5605 $5756 $5911 $6069 $6232 $6401 $6572 $6750 $6932 $7119 $7312 $7510 $7714 $7922 $8137 $8359
Equity $ (33347000) 00 00 3034631 3583631 4157631 4413631 4679631 4952631 5232631 5523631 5819631 6127631 6444631 6769631 7106631 7452631 125505131
ROE 1458 IRR 91 107 125 132 140 149 157 166 175 184 193 203 213 223 234
ONE BIG SKY CENTER
Billings Montana
RETAIL DINING ENTERTAINMENT - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 10981000 Land Acquisition $ 3000000 $3000 SF
Construction $ 14500000 $14500 SF
Debt Financing $ 20394000 Development $ 2900000 20
Financing $ 1124000 65 Loan to Project Costs
TI Allowances $ 8500000 $8500 SF
Contingency $ 1351000 5
TOTAL $ 31375000 TOTAL $ 31375000 $31375 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Projected Sales per Square Foot $36000 $37080 $38192 $39338 $40518 $41734 $42986 $44275 $45604 $46972 $48381 $49832 $51327 $52867 $54453 $56087 $57769 $59503 $61288 $63126 $65020 3
Leasable Program 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2880 $2966 $3055 $3147 $3241 $3339 $3439 $3542 $3648 $3758 $3870 $3987 $4106 $4229 $4356 $4487 $4622 $4760 $4903 $5050 $5202 8 NNN Rent vs Tenant Sales
OPERATING REVENUES
Retail Rent (NNN) 2880000 2966000 3055000 3147000 3241000 3339000 3439000 3542000 3648000 3758000 3870000 3987000 4106000 4229000 4356000 4487000 4622000 4760000 4903000 5050000 5202000
Expense Reimbursements 776000 791000 807000 824000 840000 857000 874000 891000 909000 928000 946000 965000 984000 1004000 1024000 1045000 1065000 1086000 1108000 1131000 1153000
Vacancy Allowance (366000) (282000) (193000) (199000) (204000) (210000) (216000) (222000) (228000) (234000) (241000) (248000) (255000) (262000) (269000) (277000) (284000) (292000) (301000) (309000) (318000)
Total Revenues 3290000 3475000 3669000 3772000 3877000 3986000 4097000 4211000 4329000 4452000 4575000 4704000 4835000 4971000 5111000 5255000 5403000 5554000 5710000 5872000 6037000
OPERATING EXPENSES
Operating Expenses 418000 426000 435000 444000 452000 462000 471000 480000 490000 500000 510000 520000 530000 541000 552000 563000 574000 585000 597000 609000 621000
Property Taxes 358000 365000 372000 380000 388000 395000 403000 411000 419000 428000 436000 445000 454000 463000 472000 482000 491000 501000 511000 522000 532000
Total Expenses 776000 791000 807000 824000 840000 857000 874000 891000 909000 928000 946000 965000 984000 1004000 1024000 1045000 1065000 1086000 1108000 1131000 1153000
NET OPERATING INCOME 2514000 2684000 2862000 2948000 3037000 3129000 3223000 3320000 3420000 3524000 3629000 3739000 3851000 3967000 4087000 4210000 4338000 4468000 4602000 4741000 4884000
Annual Debt Service (500 25 -yr Amort) 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656
DSCR 176x 188x 200x 206x 212x 219x 225x 232x 239x 246x 254x 261x 269x 277x 286x 294x 303x 312x 322x 331x
Mortgage Balance $19973495 $19531476 $19066842 $18578437 $18065044 $17525385 $16958116 $16361824 $15735025 $15076158 $14383581 $13655572 $12890316 $12085908 $11240344 $10351521 $9417223 $8435125 $7402781 $6317621
BEFORE TAX CASH FLOW 1083344 1253344 1431344 1517344 1606344 1698344 1792344 1889344 1989344 2093344 2198344 2308344 2420344 2536344 2656344 2779344 2907344 3037344 3171344 3310344
REVERSION CALCULATIONS
Project NOI (Year 21) 4884000
Cap Rate 800
Gross Sales Proceeds 61050000
Less Selling Costs 30 (1831500)
Net Sales Proceeds 59218500
Less Mortgage Balance (6317621)
Net Reversion Proceeds 52900879
Gross Rental Rate $3656 $3757 $3862 $3971 $4081 $4196 $4313 $4433 $4557 $4686 $4816 $4952 $5090 $5233 $5380 $5532 $5687 $5846 $6011 $6181 $6355
Equity $ (10981000) 00 00 1083344 1253344 1431344 1517344 1606344 1698344 1792344 1889344 1989344 2093344 2198344 2308344 2420344 2536344 2656344 2779344 2907344 3037344 3171344 56211224
ROE 1471 IRR 99 114 130 138 146 155 163 172 181 191 200 210 220 231 242 253 265 277 289 301
ONE BIG SKY CENTER
Billings Montana
HOTEL - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 39286000 Land Acquisition $ 12000000 $40000 KEY
Construction $ 64500000 $215000 KEY
Debt Financing $ 72960000 FFampE $ 8700000 $29000 KEY
Development $ 18300000 25
Financing $ 3972000 65 Loan to Project Costs
Contingency $ 4774000 5
TOTAL $ 112246000 TOTAL $ 112246000 $374153 KEY
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Number of Rooms 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Daily Rate (ADR) $29700 $30403 $30930 $31858 $32814 $33798 $34812 $35857 $36932 $38040 $39181 $40357 $41568 $42815 $44099 $45422 30
Occupancy Rate 680 720 750 750 750 750 750 750 750 750 750 750 750 750 750 750
OPERATING REVENUES
Rooms Revenue 22115000 23970000 25401000 26163000 26948000 27757000 28590000 29447000 30331000 31241000 32178000 33143000 34137000 35161000 36216000 37303000 639
FampB Revenue 11144000 12079000 12800000 13184000 13579000 13987000 14407000 14839000 15284000 15743000 16215000 16701000 17202000 17718000 18250000 18797000 322
Other Revenue 1350000 1463000 1550000 1597000 1645000 1694000 1745000 1797000 1851000 1907000 1964000 2023000 2083000 2146000 2210000 2277000 39
Total Revenues 34609000 37512000 39751000 40944000 42172000 43438000 44742000 46083000 47466000 48891000 50357000 51867000 53422000 55025000 56676000 58377000
OPERATING EXPENSES Rooms FampB Other
Departmental Expenses 13292000 14406000 15266000 15725000 16196000 16682000 17183000 17698000 18229000 18777000 19340000 19919000 20516000 21132000 21766000 22419000 213 700 586 384
Undistributed Expenses 8998000 9753000 10335000 10645000 10965000 11294000 11633000 11982000 12341000 12712000 13093000 13485000 13890000 14307000 14736000 15178000 260
Management Fee 1038000 1125000 1193000 1228000 1265000 1303000 1342000 1382000 1424000 1467000 1511000 1556000 1603000 1651000 1700000 1751000 30
Insurance 346000 375000 398000 409000 422000 434000 447000 461000 475000 489000 504000 519000 534000 550000 567000 584000 10
Property Taxes 1281000 1388000 1471000 1515000 1560000 1607000 1655000 1705000 1756000 1809000 1863000 1919000 1977000 2036000 2097000 2160000 37
CAPEX Reserve 346000 750000 1193000 1228000 1265000 1303000 1342000 1382000 1424000 1467000 1511000 1556000 1603000 1651000 1700000 1751000
Total Expenses 25301000 27797000 29856000 30750000 31673000 32623000 33602000 34610000 35649000 36721000 37822000 38954000 40123000 41327000 42566000 43843000
NET OPERATING INCOME 9308000 9715000 9895000 10194000 10499000 10815000 11140000 11473000 11817000 12170000 12535000 12913000 13299000 13698000 14110000 14534000
Annual Debt Service (500 25 -yr Amort) 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203
DSCR 182x 190x 193x 199x 205x 211x 218x 224x 231x 238x 245x 252x 260x 268x 276x
Mortgage Balance $71455633 $69874299 $68212062 $66464781 $64628106 $62697463 $60668045 $58534798 $56292410 $53935297 $51457590 $48853119 $46115398 $43237610 $40212589
BEFORE TAX CASH FLOW 4189797 4596797 4776797 5075797 5380797 5696797 6021797 6354797 6698797 7051797 7416797 7794797 8180797 8579797 8991797
REVERSION CALCULATIONS
Project NOI (Year 16) 14534000
Cap Rate 800
Gross Sales Proceeds 181675000
Less Selling Costs 30 (5450250)
Net Sales Proceeds 176224750
Less Mortgage Balance (40212589)
Net Reversion Proceeds 136012161
NOI Margin 269 259 249 249 249 249 249 249 249 249 249 249 249 249 249 249
Equity $ (39286000) 00 00 4189797 4596797 4776797 5075797 5380797 5696797 6021797 6354797 6698797 7051797 7416797 7794797 8180797 8579797 145003959
ROE 1455 IRR 107 117 122 129 137 145 153 162 171 179 189 198 208 218 229
ONE BIG SKY CENTER
Billings Montana
HOTEL - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 15855000 Land Acquisition $ 6000000 $30000 KEY
Construction $ 32000000 $160000 KEY
Debt Financing $ 29446000 FFampE $ 4000000 $20000 KEY
Development $ 9000000 25
Public Investment $ 10000000 Financing $ 1953000 65 Loan to Project Costs
Contingency $ 2348000 5
TOTAL $ 55301000 TOTAL $ 55301000 $276505 KEY
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Rooms 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200
Average Daily Rate (ADR) $17900 $18324 $18641 $19201 $19777 $20370 $20981 $21611 $22259 $22927 $23614 $24323 $25053 $25804 $26578 $27376 $28197 $29043 $29914 $30811 $31736 30
Occupancy Rate 680 720 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750
OPERATING REVENUES
Rooms Revenue 8886000 9631000 10206000 10512000 10828000 11153000 11487000 11832000 12187000 12552000 12929000 13317000 13716000 14128000 14552000 14988000 15438000 15901000 16378000 16869000 17375000 639
FampB Revenue 4478000 4853000 5143000 5297000 5456000 5620000 5788000 5962000 6141000 6325000 6515000 6711000 6912000 7119000 7333000 7553000 7779000 8013000 8253000 8500000 8755000 322
Other Revenue 542000 588000 623000 642000 661000 681000 701000 722000 744000 766000 789000 813000 837000 862000 888000 915000 942000 970000 1000000 1030000 1060000 39
Total Revenues 13906000 15072000 15972000 16451000 16945000 17454000 17976000 18516000 19072000 19643000 20233000 20841000 21465000 22109000 22773000 23456000 24159000 24884000 25631000 26399000 27190000
OPERATING EXPENSES Rooms FampB Other
Departmental Expenses 5341000 5788000 6134000 6318000 6508000 6703000 6903000 7111000 7325000 7544000 7770000 8004000 8244000 8491000 8746000 9008000 9278000 9557000 9844000 10138000 10442000 213 700 586 384
Undistributed Expenses 3616000 3919000 4153000 4277000 4406000 4538000 4674000 4814000 4959000 5107000 5261000 5419000 5581000 5748000 5921000 6099000 6281000 6470000 6664000 6864000 7069000 260
Management Fee 417000 452000 479000 494000 508000 524000 539000 555000 572000 589000 607000 625000 644000 663000 683000 704000 725000 747000 769000 792000 816000 30
Insurance 139000 151000 160000 165000 169000 175000 180000 185000 191000 196000 202000 208000 215000 221000 228000 235000 242000 249000 256000 264000 272000 10
Property Taxes 515000 558000 591000 609000 627000 646000 665000 685000 706000 727000 749000 771000 794000 818000 843000 868000 894000 921000 948000 977000 1006000 37
CAPEX Reserve 139000 301000 479000 494000 508000 524000 539000 555000 572000 589000 607000 625000 644000 663000 683000 704000 725000 747000 769000 792000 816000
Total Expenses 10167000 11169000 11996000 12357000 12726000 13110000 13500000 13905000 14325000 14752000 15196000 15652000 16122000 16604000 17104000 17618000 18145000 18691000 19250000 19827000 20421000
NET OPERATING INCOME 3739000 3903000 3976000 4094000 4219000 4344000 4476000 4611000 4747000 4891000 5037000 5189000 5343000 5505000 5669000 5838000 6014000 6193000 6381000 6572000 6769000
Annual Debt Service (500 25 -yr Amort) 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661
DSCR 181x 189x 192x 198x 204x 210x 217x 223x 230x 237x 244x 251x 259x 267x 274x 283x 291x 300x 309x 318x
Mortgage Balance $28838851 $28200639 $27529775 $26824588 $26083322 $25304132 $24485078 $23624118 $22719111 $21767801 $20767821 $19716680 $18611760 $17450311 $16229439 $14946106 $13597115 $12179106 $10688550 $9121735
BEFORE TAX CASH FLOW 1673339 1837339 1910339 2028339 2153339 2278339 2410339 2545339 2681339 2825339 2971339 3123339 3277339 3439339 3603339 3772339 3948339 4127339 4315339 4506339
REVERSION CALCULATIONS
Project NOI (Year 21) 6769000
Cap Rate 800
Gross Sales Proceeds 84612500
Less Selling Costs 30 (2538375)
Net Sales Proceeds 82074125
Less Mortgage Balance (9121735)
Net Reversion Proceeds 72952390
NOI Margin 269 259 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249
Equity $ (15855000) 00 00 1673339 1837339 1910339 2028339 2153339 2278339 2410339 2545339 2681339 2825339 2971339 3123339 3277339 3439339 3603339 3772339 3948339 4127339 4315339 77458730
ROE 1427 IRR 106 116 120 128 136 144 152 161 169 178 187 197 207 217 227 238 249 260 272 284
ONE BIG SKY CENTER
Billings Montana
HOTEL - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 19355000 Land Acquisition $ 6000000 $30000 KEY
Construction $ 32000000 $160000 KEY
Debt Financing $ 35946000 FFampE $ 4000000 $20000 KEY
Development $ 9000000 25
Financing $ 1953000 65 Loan to Project Costs
Contingency $ 2348000 5
TOTAL $ 55301000 TOTAL $ 55301000 $276505 KEY
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Rooms 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200
Average Daily Rate (ADR) $22100 $22623 $23015 $23706 $24417 $25150 $25904 $26681 $27482 $28306 $29155 $30030 $30931 $31859 $32814 $33799 $34813 $35857 $36933 $38041 $39182 30
Occupancy Rate 680 720 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750
OPERATING REVENUES
Rooms Revenue 10970000 11891000 12601000 12979000 13368000 13769000 14182000 14608000 15046000 15498000 15962000 16441000 16935000 17443000 17966000 18505000 19060000 19632000 20221000 20827000 21452000 639
FampB Revenue 5528000 5992000 6350000 6540000 6736000 6938000 7146000 7361000 7582000 7810000 8043000 8285000 8534000 8790000 9053000 9325000 9605000 9893000 10190000 10495000 10810000 322
Other Revenue 670000 726000 769000 792000 816000 840000 866000 892000 918000 946000 974000 1003000 1034000 1065000 1097000 1129000 1163000 1198000 1234000 1271000 1309000 39
Total Revenues 17168000 18609000 19720000 20311000 20920000 21547000 22194000 22861000 23546000 24254000 24979000 25729000 26503000 27298000 28116000 28959000 29828000 30723000 31645000 32593000 33571000
OPERATING EXPENSES Rooms FampB Other
Departmental Expenses 6593000 7147000 7573000 7800000 8034000 8275000 8523000 8780000 9043000 9315000 9593000 9881000 10179000 10484000 10798000 11122000 11455000 11799000 12153000 12517000 12893000 213 700 586 384
Undistributed Expenses 4464000 4838000 5127000 5281000 5439000 5602000 5770000 5944000 6122000 6306000 6495000 6690000 6891000 7097000 7310000 7529000 7755000 7988000 8228000 8474000 8728000 260
Management Fee 515000 558000 592000 609000 628000 646000 666000 686000 706000 728000 749000 772000 795000 819000 843000 869000 895000 922000 949000 978000 1007000 30
Insurance 172000 186000 197000 203000 209000 215000 222000 229000 235000 243000 250000 257000 265000 273000 281000 290000 298000 307000 316000 326000 336000 10
Property Taxes 635000 689000 730000 752000 774000 797000 821000 846000 871000 897000 924000 952000 981000 1010000 1040000 1071000 1104000 1137000 1171000 1206000 1242000 37
CAPEX Reserve 172000 372000 592000 609000 628000 646000 666000 686000 706000 728000 749000 772000 795000 819000 843000 869000 895000 922000 949000 978000 1007000
Total Expenses 12551000 13790000 14811000 15254000 15712000 16181000 16668000 17171000 17683000 18217000 18760000 19324000 19906000 20502000 21115000 21750000 22402000 23075000 23766000 24479000 25213000
NET OPERATING INCOME 4617000 4819000 4909000 5057000 5208000 5366000 5526000 5690000 5863000 6037000 6219000 6405000 6597000 6796000 7001000 7209000 7426000 7648000 7879000 8114000 8358000
Annual Debt Service (500 25 -yr Amort) 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641
DSCR 183x 191x 195x 201x 207x 213x 219x 226x 233x 239x 247x 254x 262x 270x 278x 286x 294x 303x 312x 322x
Mortgage Balance $35204827 $34425734 $33606781 $32745929 $31841035 $30889844 $29889988 $28838978 $27734196 $26572892 $25352173 $24069000 $22720177 $21302345 $19811975 $18245355 $16598583 $14867560 $13047974 $11135294
BEFORE TAX CASH FLOW 2095359 2297359 2387359 2535359 2686359 2844359 3004359 3168359 3341359 3515359 3697359 3883359 4075359 4274359 4479359 4687359 4904359 5126359 5357359 5592359
REVERSION CALCULATIONS
Project NOI (Year 21) 8358000
Cap Rate 800
Gross Sales Proceeds 104475000
Less Selling Costs 30 (3134250)
Net Sales Proceeds 101340750
Less Mortgage Balance (11135294)
Net Reversion Proceeds 90205456
NOI Margin 269 259 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249
Equity $ (19355000) 00 00 2095359 2297359 2387359 2535359 2686359 2844359 3004359 3168359 3341359 3515359 3697359 3883359 4075359 4274359 4479359 4687359 4904359 5126359 5357359 95797815
ROE 1444 IRR 108 119 123 131 139 147 155 164 173 182 191 201 211 221 231 242 253 265 277 289
ONE BIG SKY CENTER
Billings Montana
ECONOMIC amp FISCAL IMPACT ESTIMATES (HIGH)
PHASE 1 PHASE 2
Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M) Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M)
HOTEL 200 KEYS $ 197 Direct 160 Direct $ 59 Direct $ 02 Income 300 KEYS $ 398 Direct 240 Direct $ 119 Direct $ 05 Income
$ 58 Indirect 34 Indirect $ 17 Indirect $ 01 Corp $ 117 Indirect 50 Indirect $ 34 Indirect $ 02 Corp
$ 32 Induced 21 Induced $ 10 Induced $ 09 Lodging $ 65 Induced 31 Induced $ 21 Induced $ 18 Lodging
$ 288 Total 214 Total $ 86 Total $ 07 Property $ 580 Total 321 Total $ 174 Total $ 15 Property
$ 19 Total $ 39 Total
RETAIL DINING ENTERTAINMENT 100000 SF $ 363 Direct 496 Direct $ 145 Direct $ 04 Income 225000 SF $ 1088 Direct 1221 Direct $ 435 Direct $ 13 Income
$ 23 Indirect 17 Indirect $ 07 Indirect $ 01 Corp $ 69 Indirect 41 Indirect $ 21 Indirect $ 03 Corp
$ 27 Induced 25 Induced $ 11 Induced $ 04 Property $ 81 Induced 61 Induced $ 34 Induced $ 11 Property
$ 413 Total 537 Total $ 163 Total $ 09 Total $ 1239 Total 1323 Total $ 490 Total $ 28 Total
COMMERCIAL OFFICE 150000 SF $ 1259 Direct 600 Direct $ 357 Direct $ 15 Income 350000 SF $ 3947 Direct 1400 Direct $ 1119 Direct $ 46 Income
$ 304 Indirect 205 Indirect $ 95 Indirect $ 05 Corp $ 954 Indirect 479 Indirect $ 299 Indirect $ 15 Corp
$ 211 Induced 174 Induced $ 86 Induced $ 05 Property $ 662 Induced 405 Induced $ 270 Induced $ 15 Property
$ 1774 Total 979 Total $ 538 Total $ 24 Total $ 5563 Total 2284 Total $ 1688 Total $ 75 Total
BIOSCIENCE 50000 SF $ 301 Direct 167 Direct $ 137 Direct $ 05 Income 125000 SF $ 1010 Direct 417 Direct $ 459 Direct $ 16 Income
$ 35 Indirect 25 Indirect $ 13 Indirect $ 01 Corp $ 118 Indirect 62 Indirect $ 42 Indirect $ 04 Corp
$ 70 Induced 51 Induced $ 25 Induced $ 02 Property $ 236 Induced 128 Induced $ 85 Induced $ 06 Property
$ 406 Total 243 Total $ 175 Total $ 08 Total $ 1364 Total 607 Total $ 587 Total $ 26 Total
HEALTHCARE 250000 SF $ 1252 Direct 694 Direct $ 834 Direct $ 28 Income 600000 SF $ 4040 Direct 1667 Direct $ 2690 Direct $ 91 Income
$ 187 Indirect 134 Indirect $ 61 Indirect $ 05 Corp $ 604 Indirect 322 Indirect $ 198 Indirect $ 16 Corp
$ 404 Induced 309 Induced $ 154 Induced $ 09 Property $ 1303 Induced 742 Induced $ 495 Induced $ 30 Property
$ 1844 Total 1138 Total $ 1049 Total $ 43 Total $ 5947 Total 2731 Total $ 3383 Total $ 137 Total
RESIDENTIAL 300 DU $ 09 Property 300 DU $ 33 Property
SENIOR HOUSING 150 DU $ 04 Property 300 DU $ 11 Property
MIXED-USE INFILL DEVELOPMENT 100000 SF $ 240 Direct 179 Direct $ 77 Direct $ 03 Income 250000 SF $ 806 Direct 471 Direct $ 257 Direct $ 09 Income
Retail 20 $ 45 Indirect 31 Indirect $ 14 Indirect $ 01 Corp $ 152 Indirect 77 Indirect $ 47 Indirect $ 03 Corp
Office 20 $ 34 Induced 28 Induced $ 14 Induced $ 02 Property $ 112 Induced 71 Induced $ 46 Induced $ 10 Property
Residential 60 $ 319 Total 238 Total $ 104 Total $ 05 Total $ 1070 Total 620 Total $ 350 Total $ 23 Total
CONVENTION CENTER 150000 SF $ 147 Direct 119 Direct $ 44 Direct $ 02 Income
(Visitor Spending) $ 43 Indirect 25 Indirect $ 13 Indirect $ 01 Corp
$ 24 Induced 15 Induced $ 08 Induced $ 06 Lodging
$ 214 Total 160 Total $ 64 Total $ 08 Total
TOTAL ANNUAL $ 3759 Direct 2416 Direct $ 1652 Direct $ 59 Income $ 16341 Direct 8662 Direct $ 7299 Direct $ 259 Income
$ 696 Indirect 470 Indirect $ 220 Indirect $ 14 Corp $ 2950 Indirect 1664 Indirect $ 938 Indirect $ 62 Corp
$ 802 Induced 623 Induced $ 308 Induced $ 15 Lodging $ 3537 Induced 2276 Induced $ 1365 Induced $ 38 Lodging
$ 5257 Total 3509 Total $ 2180 Total $ 42 Property $ 22827 Total 12602 Total $ 9602 Total $ 188 Property
$ 130 Total $ 546 Total
AGGREGATE TOTAL (30 YEARS) $ 250126 $ 103729 $ 6170 $ 673652 $ 283016 $ 16156
340x 705x
Aggregate Effective Income Tax Rate 2697 Based on BEA Data
Effective Corporate Income Tax Rate 0270 MT DOR Collections BEA GDP
Lodging Tax 7 (4 Lodging Facility Use Tax + 3 Lodging Facility Sales Tax)
Escalation Assumption 30
ONE BIG SKY CENTER
Billings Montana
ECONOMIC amp FISCAL IMPACT ESTIMATES (LOW)
PHASE 1 PHASE 2
Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M) Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M)
HOTEL 200 KEYS $ 160 Direct 160 Direct $ 54 Direct $ 02 Income 300 KEYS $ 398 Direct 240 Direct $ 98 Direct $ 04 Income
$ 47 Indirect 34 Indirect $ 15 Indirect $ 01 Corp $ 117 Indirect 50 Indirect $ 28 Indirect $ 02 Corp
$ 26 Induced 21 Induced $ 09 Induced $ 07 Lodging $ 65 Induced 31 Induced $ 17 Induced $ 18 Lodging
$ 233 Total 214 Total $ 78 Total $ 06 Property $ 580 Total 321 Total $ 143 Total $ 15 Property
$ 16 Total $ 38 Total
RETAIL DINING ENTERTAINMENT 100000 SF $ 363 Direct 496 Direct $ 145 Direct $ 04 Income 225000 SF $ 1088 Direct 1221 Direct $ 435 Direct $ 13 Income
$ 23 Indirect 17 Indirect $ 07 Indirect $ 01 Corp $ 69 Indirect 41 Indirect $ 21 Indirect $ 03 Corp
$ 27 Induced 25 Induced $ 11 Induced $ 04 Property $ 81 Induced 61 Induced $ 34 Induced $ 11 Property
$ 413 Total 537 Total $ 163 Total $ 09 Total $ 1239 Total 1323 Total $ 490 Total $ 28 Total
COMMERCIAL OFFICE 150000 SF $ 1142 Direct 600 Direct $ 324 Direct $ 13 Income 350000 SF $ 3247 Direct 1400 Direct $ 920 Direct $ 37 Income
$ 276 Indirect 205 Indirect $ 87 Indirect $ 04 Corp $ 785 Indirect 479 Indirect $ 246 Indirect $ 12 Corp
$ 191 Induced 174 Induced $ 78 Induced $ 05 Property $ 545 Induced 405 Induced $ 222 Induced $ 15 Property
$ 1609 Total 979 Total $ 488 Total $ 22 Total $ 4577 Total 2284 Total $ 1389 Total $ 64 Total
BIOSCIENCE 50000 SF $ 273 Direct 167 Direct $ 124 Direct $ 04 Income 125000 SF $ 831 Direct 417 Direct $ 378 Direct $ 13 Income
$ 32 Indirect 25 Indirect $ 11 Indirect $ 01 Corp $ 97 Indirect 62 Indirect $ 35 Indirect $ 03 Corp
$ 64 Induced 51 Induced $ 23 Induced $ 02 Property $ 194 Induced 128 Induced $ 70 Induced $ 06 Property
$ 368 Total 243 Total $ 158 Total $ 07 Total $ 1122 Total 607 Total $ 483 Total $ 22 Total
HEALTHCARE 250000 SF $ 1136 Direct 694 Direct $ 756 Direct $ 26 Income 600000 SF $ 3324 Direct 1667 Direct $ 2213 Direct $ 75 Income
$ 170 Indirect 134 Indirect $ 56 Indirect $ 05 Corp $ 497 Indirect 322 Indirect $ 163 Indirect $ 13 Corp
$ 366 Induced 309 Induced $ 139 Induced $ 09 Property $ 1072 Induced 742 Induced $ 408 Induced $ 30 Property
$ 1672 Total 1138 Total $ 951 Total $ 39 Total $ 4893 Total 2731 Total $ 2783 Total $ 118 Total
RESIDENTIAL 300 DU $ 08 Property 300 DU $ 33 Property
SENIOR HOUSING 150 DU $ 03 Property 300 DU $ 11 Property
MIXED-USE INFILL DEVELOPMENT 100000 SF $ 225 Direct 179 Direct $ 72 Direct $ 03 Income 250000 SF $ 706 Direct 471 Direct $ 228 Direct $ 08 Income
Retail 20 $ 41 Indirect 31 Indirect $ 13 Indirect $ 01 Corp $ 128 Indirect 77 Indirect $ 40 Indirect $ 03 Corp
Office 20 $ 31 Induced 28 Induced $ 13 Induced $ 01 Property $ 96 Induced 71 Induced $ 39 Induced $ 10 Property
Residential 60 $ 297 Total 238 Total $ 98 Total $ 05 Total $ 929 Total 620 Total $ 307 Total $ 21 Total
CONVENTION CENTER 150000 SF $ 139 Direct 139 Direct $ 46 Direct $ 02 Income
(Visitor Spending) $ 41 Indirect 29 Indirect $ 13 Indirect $ 01 Corp
$ 23 Induced 18 Induced $ 08 Induced $ 06 Lodging
$ 202 Total 186 Total $ 68 Total $ 08 Total
TOTAL ANNUAL $ 3436 Direct 2435 Direct $ 1521 Direct $ 54 Income $ 13783 Direct 8384 Direct $ 6127 Direct $ 217 Income
$ 630 Indirect 474 Indirect $ 202 Indirect $ 13 Corp $ 2461 Indirect 1610 Indirect $ 780 Indirect $ 52 Corp
$ 728 Induced 626 Induced $ 282 Induced $ 13 Lodging $ 2940 Induced 2201 Induced $ 1133 Induced $ 33 Lodging
$ 4795 Total 3535 Total $ 2005 Total $ 38 Property $ 19183 Total 12195 Total $ 8040 Total $ 178 Property
$ 118 Total $ 480 Total
AGGREGATE TOTAL (30 YEARS) $ 194508 $ 81357 $ 4781 $ 518608 $ 217319 $ 12946
263x 565x
Aggregate Effective Income Tax Rate 2697 Based on BEA Data
Effective Corporate Income Tax Rate 0270 MT DOR Collections BEA GDP
Lodging Tax 7 (4 Lodging Facility Use Tax + 3 Lodging Facility Sales Tax)
Escalation Assumption 20
ONE BIG SKY CENTER
Billings Montana
ECONOMIC amp FISCAL IMPACTS
PHASE 1 FULL BUILDOUT
LOW HIGH LOW HIGH
PROGRAM 10 Million SF 10 Million SF 40 Million SF 50 Million SF
PRIVATE INVESTMENT $3270 Million $3520 Million $10 Billion $20 Billion
VISITATION 10 Million 10 Million 40 Million 40 Million
ECONOMIC OUTPUT 4794618805 (Annually) 5257467756 (Annually) 1918349973 (Annually) 2282740941 (Annually)
(Direct Indirect amp Induced)
EMPLOYMENT 3535 Jobs 3509 Jobs 12195 Jobs 12602 Jobs
(Direct Indirect amp Induced)
EARNINGS 2005455783 (Annually) 2180306006 (Annually) 804037145 (Annually) 9602425147 (Annually)
(Direct Indirect amp Induced)
FISCAL IMPACTS 117843492 (Annually) 1296944889 (Annually) 479704742 (Annually) 5459243472 (Annually)
4780684117 (30 years) 6170269226 (30 years) 1294591687 (30 years) 1615599362 (30 years)
ONE BIG SKY CENTER
Billings Montana
MASTER PROJECT BUDGET - PHASED
TOTAL PHASE 1 PHASE 2
USES OF FUNDS ($MM)
PRIVATE
Hotel $ 1675 $ 553 $ 1122
Retail Dining Entertainment $ 1267 $ 314 $ 953
Commerical Office $ 1829 $ 442 $ 1387
Bioscience $ 907 $ 208 $ 700
Healthcare $ 4860 $ 1015 $ 3846
Residential $ 2894 $ 633 $ 2261
Senior Housing $ 1069 $ 291 $ 778
Mixed-Use Renovation $ 792 $ 182 $ 611
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 322 $ 322 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
ONE BIG SKY CENTER
Billings Montana
USES OF FUNDS - PHASED
TOTAL PHASE 1 PHASE 2
USES OF FUNDS ($MM)
PRIVATE
Land $ 1013 $ 248 $ 765
Construction $ 7838 $ 1711 $ 6128
FFampE $ 726 $ 137 $ 589
Development $ 2175 $ 450 $ 1725
Financing $ 483 $ 101 $ 382
TI Allowances $ 2036 $ 485 $ 1551
Contingency $ 659 $ 140 $ 519
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 687 $ 687 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
ONE BIG SKY CENTER
Billings Montana
SOURCES amp USES - PHASED
TOTAL PHASE 1 PHASE 2
SOURCES OF FUNDS ($MM)
PRIVATE
Equity Investment $ 4370 $ 1023 $ 3347
Debt Financing $ 10560 $ 2249 $ 8311
PUBLIC
Public Investment $ 2292 $ 1817 $ 475
bull City
bull State
bull Federal
TOTAL $ 17222 $ 5089 $ 12133
USES OF FUNDS ($MM)
PRIVATE
Land $ 1013 $ 248 $ 765
Construction $ 7838 $ 1711 $ 6128
FFampE $ 726 $ 137 $ 589
Development $ 2175 $ 450 $ 1725
Financing $ 483 $ 101 $ 382
TI Allowances $ 2036 $ 485 $ 1551
Contingency $ 659 $ 140 $ 519
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 687 $ 687 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
PRIVATE 1493002000 327189000 1165813000
PUBLIC 229157000 181689000 47468000
ONE BIG SKY CENTER
Billings Montana
SOURCES amp USES - PHASED
TOTAL PHASE 1 PHASE 2
SOURCES OF FUNDS ($MM)
PRIVATE
Equity Investment $ 4370 $ 1023 $ 3347
Debt Financing $ 10560 $ 2249 $ 8311
PUBLIC
City Investment $ 602 $ 365 $ 237
State Investment $ 1689 $ 1452 $ 237
TOTAL $ 17222 $ 5089 $ 12133
USES OF FUNDS ($MM)
PRIVATE
Land $ 1047 $ 282 $ 765
Construction $ 8074 $ 1946 $ 6128
FFampE $ 726 $ 137 $ 589
Development $ 2237 $ 512 $ 1725
Financing $ 497 $ 115 $ 382
TI Allowances $ 2036 $ 485 $ 1551
Contingency $ 678 $ 160 $ 519
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 322 $ 322 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
PRIVATE 1493002000 327189000 1165813000
PUBLIC 229157000 181689000 47468000
ONE BIG SKY CENTER
Billings Montana
GAP ANALYSIS - PHASE 1
HOTEL RETAIL OFFICE BIOSCIENCE HEALTHCARE RESIDENTIAL SR HOUSING TOTAL
200 KEYS 100000 SF 150000 SF 50000 SF 250000 SF 300 DU 150 DU
MARKET CONDITIONS $15441 Night $2484 SF $1673 SF $2575 SF $35012 SF $1518 MO $1389 MO
(Current Dollars) Avg Daily Rate NNN Rental Rate NNN Rental Rate NNN Rental Rate Building Value Avg Rental Rate Avg Rental Rate
REQUIRED FOR DEVELOPMENT $19064 Night $2484 SF $2290 SF $3192 SF $35012 SF $1829 MO $1691 MO
(Current Dollars) Avg Daily Rate NNN Rental Rate NNN Rental Rate NNN Rental Rate Building Value Avg Rental Rate Avg Rental Rate
PROJECTED VALUE ($M) $ 453 $ 314 $ 322 $ 168 $ 1015 $ 561 $ 258 $ 3090
PROJECTED COST ($M) $ 553 $ 314 $ 442 $ 208 $ 1015 $ 633 $ 291 $ 3455
GAP ($M) ($ 100) $ - 0 ($ 120) ($ 40) $ - 0 ($ 72) ($ 33) ($ 365)
ONE BIG SKY CENTER
Billings Montana
PROGRAM amp PHASING
PHASE 1 PHASE 2 TOTAL
HOTEL 200 KEYS 300 KEYS 500 KEYS
160000 SF 240000 SF 400000 SF
RETAIL DINING ENTERTAINMENT 100000 SF 225000 SF 325000 SF
COMMERCIAL OFFICE 150000 SF 350000 SF 500000 SF
BIOSCIENCE 50000 SF 125000 SF 175000 SF
HEALTHCARE 250000 SF 600000 SF 850000 SF
Ambulatory Medical Wellness 75000 SF 400000 SF 475000 SF
Medical Office 175000 SF 200000 375000 SF
RESIDENTIAL 300 DU 800 DU 1100 DU
300000 SF 800000 SF 1100000 SF
SENIOR HOUSING 150 DU 300 DU 450 DU
105000 SF 210000 SF 315000 SF
MIXED-USE INFILL DEVELOPMENT 100000 SF 250000 SF 350000 SF
CONVENTION CENTER 100000 SF 50000 SF 150000 SF
CIVIC 80000 SF 50000 SF 130000 SF
PARKING STRUCTURE 1030 Stalls 827 Stalls 1857 Stalls Residential assumed to separately build and finance its own parking in Phase 2
TOTAL (NIC Parking) 1395000 SF 2900000 SF 4295000 SF
Page 3: PROGRAM & VISION STATEMENT · program & vision statement ONE Big Sky District is a large, mixed-use, multi-anchor program supporting broad development goals driving the long-term

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 44

PROGRAM amp VISION STATEMENT

There are several primary goals and objectives for the ONE Big Sky District including

bull Lifestyle Goalso Create a development strategy that capitalizes on planning and design that trends toward re-urbanization and more healthy

built and natural environmentso Develop a series of memorable urban experiences and programmatic offerings that appeal to all of Billingsrsquo residents and

visitorso Embrace the authentic Billings and Montana experience

bull Fiscal amp Economic Goalso Build a comprehensive plan to grow tax base for the City the County and the Stateo Strengthen our position in the region to be the most attractive market for new private businesso Create new jobs to drive not only the local but also the regional and statewide economieso Realize a return on public investment at a significant ratio

bull Civic amp Community Goalso Support a range of housing options and more mixed-use developments in the downtown coreo Establish Billings as one of the Mountain Regionrsquos dominant destination cities for visitation driven by anchoring institutions (eg

health care and education) and an emerging tourism economy to draw meetings conventions and related activities

bull Tomorrows Workforce Goalso Become a model city nationally to attract and retain a skilled workforce from professional to industrial and the trades

GOALS amp ASPIRATIONS

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 55

PROGRAM amp VISION STATEMENT

A strong district development strategy can strengthen Billings as a destination city and enhance the economic climate ndash using health care and tourism as catalysts to anchor the transformation of Billings into the next generation

DISTRICT DEVELOPMENT PLAN

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 66

PROGRAM amp VISION STATEMENT

There are a number of key drivers that define the opportunity for major economic development generated from the ONE Big Sky District and certain constraints that must be understood and addressed including

KEY DRIVERSbull A dynamic economic development community energized to take actionbull Public-private partnerships (P3) are an emerging and proven national trendbull A stable economic base for the futurebull An opportunity to define an urban landscape which can support major economic developmentbull Lifestyle amenities and character in the community and region that can become the foundation to an authentic ldquoBillings and

Montana Experiencerdquobull Opportunities for important community anchors that can drive economic development

CONSTRAINTSbull An uncertain political climate and environment at the local and state levelsbull A massive and evolving jobs dilemma in Billingsbull Limited proven model for public finance in support of major economic developmentbull Lack of accurate information on the project circulating in the communitybull Without vision and an action plan Billings will have limited appeal with institutional capital investors

KEY DRIVERS CONSTRAINTS

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 77

PROGRAM amp VISION STATEMENT

Based on our preliminary market analysis the City of Billings has the potential to support a diverse program in the ONE Big Sky Center Development Districts of the magnitude as described below

While these forecasts are preliminary and based primarily on macro-level demand analysis the demographic strength economic base industry growth metrics combined with the regional trade area of Billings indicate that growth patterns will support a robust development program over a 15 to 20 year planning horizon

PROGRAM STATEMENT

Program

Gap Analysis - Phase 1

Sources amp Uses

SOURCES OF FUNDS

Phase 1

Phase 1

PRIVATEPUBLIC327189000181689000

SOURCES OF FUNDS

Full Buildout

Full Buildout

PRIVATEPUBLIC1493002000229157000

Sources amp Uses (Simplified)

SOURCES OF FUNDS

Phase 1

Phase 1

PRIVATEPUBLIC327189000181689000

SOURCES OF FUNDS

Full Buildout

Full Buildout

PRIVATEPUBLIC1493002000229157000

MPB by Uses

MPB by Component

Economic amp Fiscal Summary

Economic amp Fiscal Calcs LOW

Economic amp Fiscal Calcs HIGH

Hotel - Phase 1

Hotel - Phase 1 (Gap)

Hotel - Phase 2

Retail - Phase 1

Retail - Phase 2

Office - Phase 1

Office - Phase 1 (Gap)

Office - Phase 2

Bioscience - Phase 1

Bioscience - Phase 1 (Gap)

Bioscience - Phase 2

Health - Phase 1

Health - Phase 2

Medical Office - Phase 1

Medical Office - Phase 2

Residential - Phase 1

Residential - Phase 1 (Gap)

Residential - Phase 2

Senior Housing - Phase 1

Senior Housing - Phase 1 (Gap)

Senior Housing - Phase 2

Mixed-Use Infill - Phase 1

Mixed-Use Infill - Phase 2

Convention - Phase 1

Civic - Phase 1

Parking - Phase 1

Parking - Phase 2

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 88

PROGRAM amp VISION STATEMENT

Why the time is now for this project

- Billings needs a defined vision and plan that will drive our economic future

- Serious workforce challenges in that will only get worse in upcoming years

- Flat economic growth which will result in a growing tax burden on existing property owners

- Billings is in a regional competition ndash with communities around Billings making large investments in their amenities and infrastructure to attract the businesses and workforce of tomorrow

URGENT ISSUES REQUIRING ACTION

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  • Slide Number 5
  • Slide Number 6
  • Slide Number 7
  • Slide Number 8
ONE BIG SKY CENTER
Billings Montana
STRUCTURED PARKING - PHASE 2
USES OF FUNDS
Land Acquisition $ -
Construction $ 37200000 $45000 Stall
Development $ 5580000 15
Financing (500 Interest) $ 2428000 85 Loan to Project Costs
Contingency $ 2260000 5
TOTAL $ 47468000 $57425 Stall
Structured Parking Program 827 Stalls
ONE BIG SKY CENTER
Billings Montana
STRUCTURED PARKING - PHASE 1
USES OF FUNDS
Land Acquisition $ -
Construction $ 33990000 $33000 Stall
Development $ 5099000 15
Financing (500 Interest) $ 2219000 85 Loan to Project Costs
Contingency $ 2065000 5
TOTAL $ 43373000 $42110 Stall
Structured Parking Program 1030 Stalls
ONE BIG SKY CENTER
Billings Montana
CIVIC INFRASTRUCTURE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ - Land Acquisition $ - $000 SF
Construction $ 15040000 $18800 SF
Debt Financing $ 32150000 FFampE $ 8080000 $10100 SF
Development $ 5780000 25
Financing $ 1719000 100 Loan to Project Costs
Contingency $ 1531000 5
TOTAL $ 32150000 TOTAL $ 32150000 $40188 SF
Convention Center Program 80000 SF Escalation Rate 50
Year Completed 2022
Interest Rate 450
ONE BIG SKY CENTER
Billings Montana
CONVENTION CENTER - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ - Land Acquisition $ - $000 SF
Construction $ 36300000 $36300 SF
Debt Financing $ 69666000 FFampE $ 13800000 $13800 SF
Development $ 12525000 25
Financing $ 3724000 100 Loan to Project Costs
Contingency $ 3317000 5
TOTAL $ 69666000 TOTAL $ 69666000 $69666 SF
Convention Center Program 100000 SF Escalation Rate 50
Year Completed 2022
Interest Rate 450
ONE BIG SKY CENTER
Billings Montana
MIXED-USE INFILL DEVELOPMENT - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 21368000 Land Acquisition $ 11750000 $4700 SF
Construction $ 36000000 $14400 SF
Debt Financing $ 39683000 Development $ 9000000 25
Financing $ 1953000 65 Loan to Project Costs
Contingency $ 2348000 5
TOTAL $ 61051000 TOTAL $ 61051000 $24420 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2245 $2312 $2382 $2453 $2527 $2603 $2681 $2761 $2844 $2929 $3017 $3108 $3201 $3297 $3396 $3498 3
OPERATING REVENUES
Rent (NNN) 5613000 5781000 5954000 6133000 6317000 6506000 6702000 6903000 7110000 7323000 7543000 7769000 8002000 8242000 8489000 8744000
Expense Reimbursements 4212000 4296000 4383000 4469000 4560000 4650000 4744000 4838000 4935000 5034000 5135000 5237000 5342000 5448000 5557000 5669000
Vacancy Allowance (983000) (756000) (517000) (530000) (544000) (558000) (572000) (587000) (602000) (618000) (634000) (650000) (667000) (685000) (702000) (721000)
Total Revenues 8842000 9321000 9820000 10072000 10333000 10598000 10874000 11154000 11443000 11739000 12044000 12356000 12677000 13005000 13344000 13692000
OPERATING EXPENSES
Operating Expenses 3209000 3273000 3339000 3405000 3474000 3543000 3614000 3686000 3760000 3835000 3912000 3990000 4070000 4151000 4234000 4319000
Property Taxes 1003000 1023000 1044000 1064000 1086000 1107000 1130000 1152000 1175000 1199000 1223000 1247000 1272000 1297000 1323000 1350000
Total Expenses 4212000 4296000 4383000 4469000 4560000 4650000 4744000 4838000 4935000 5034000 5135000 5237000 5342000 5448000 5557000 5669000
NET OPERATING INCOME 4630000 5025000 5437000 5603000 5773000 5948000 6130000 6316000 6508000 6705000 6909000 7119000 7335000 7557000 7787000 8023000
Annual Debt Service (500 25 -yr Amort) 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794
DSCR 166x 181x 195x 201x 207x 214x 220x 227x 234x 241x 248x 256x 263x 271x 280x
Mortgage Balance $38864774 $38004685 $37100593 $36150245 $35151276 $34101198 $32997396 $31837122 $30617485 $29335450 $27987823 $26571249 $25082200 $23516969 $21871658
BEFORE TAX CASH FLOW 1846206 2241206 2653206 2819206 2989206 3164206 3346206 3532206 3724206 3921206 4125206 4335206 4551206 4773206 5003206
REVERSION CALCULATIONS
Project NOI (Year 16) 8023000
Cap Rate 800
Gross Sales Proceeds 100287500
Less Selling Costs 30 (3008625)
Net Sales Proceeds 97278875
Less Mortgage Balance (21871658)
Net Reversion Proceeds 75407217
Gross Rental Rate $3930 $4031 $4135 $4241 $4351 $4462 $4578 $4696 $4818 $4943 $5071 $5202 $5338 $5476 $5618 $5765
Equity $ (21368000) 00 00 1846206 2241206 2653206 2819206 2989206 3164206 3346206 3532206 3724206 3921206 4125206 4335206 4551206 4773206 80410423
ROE 1453 IRR 86 105 124 132 140 148 157 165 174 184 193 203 213 223 234
ONE BIG SKY CENTER
Billings Montana
MIXED-USE INFILL DEVELOPMENT - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 6354000 Land Acquisition $ 3500000 $3500 SF
Construction $ 10700000 $10700 SF
Debt Financing $ 11800000 Development $ 2675000 25
Financing $ 581000 65 Loan to Project Costs
Contingency $ 698000 5
TOTAL $ 18154000 TOTAL $ 18154000 $18154 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $1670 $1720 $1772 $1825 $1880 $1936 $1994 $2054 $2116 $2179 $2244 $2312 $2381 $2452 $2526 $2602 $2680 $2760 $2843 $2928 $3016 3
OPERATING REVENUES
Rent (NNN) 1670000 1720000 1772000 1825000 1880000 1936000 1994000 2054000 2116000 2179000 2244000 2312000 2381000 2452000 2526000 2602000 2680000 2760000 2843000 2928000 3016000
Expense Reimbursements 1254000 1279000 1305000 1330000 1358000 1384000 1412000 1440000 1469000 1498000 1528000 1559000 1590000 1622000 1655000 1687000 1721000 1756000 1791000 1827000 1863000
Vacancy Allowance (292000) (225000) (154000) (158000) (162000) (166000) (170000) (175000) (179000) (184000) (189000) (194000) (199000) (204000) (209000) (214000) (220000) (226000) (232000) (238000) (244000)
Total Revenues 2632000 2774000 2923000 2997000 3076000 3154000 3236000 3319000 3406000 3493000 3583000 3677000 3772000 3870000 3972000 4075000 4181000 4290000 4402000 4517000 4635000
OPERATING EXPENSES
Operating Expenses 955000 974000 994000 1013000 1034000 1054000 1075000 1097000 1119000 1141000 1164000 1187000 1211000 1235000 1260000 1285000 1311000 1337000 1364000 1391000 1419000
Property Taxes 299000 305000 311000 317000 324000 330000 337000 343000 350000 357000 364000 372000 379000 387000 395000 402000 410000 419000 427000 436000 444000
Total Expenses 1254000 1279000 1305000 1330000 1358000 1384000 1412000 1440000 1469000 1498000 1528000 1559000 1590000 1622000 1655000 1687000 1721000 1756000 1791000 1827000 1863000
NET OPERATING INCOME 1378000 1495000 1618000 1667000 1718000 1770000 1824000 1879000 1937000 1995000 2055000 2118000 2182000 2248000 2317000 2388000 2460000 2534000 2611000 2690000 2772000
Annual Debt Service (500 25 -yr Amort) 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779
DSCR 166x 181x 195x 201x 208x 214x 220x 227x 234x 241x 248x 256x 264x 272x 280x 288x 297x 306x 315x 325x
Mortgage Balance $11556695 $11300942 $11032104 $10749512 $10452462 $10140215 $9811992 $9466977 $9104310 $8723088 $8322362 $7901135 $7458357 $6992925 $6503681 $5989406 $5448820 $4880577 $4283261 $3655385
BEFORE TAX CASH FLOW 550221 667221 790221 839221 890221 942221 996221 1051221 1109221 1167221 1227221 1290221 1354221 1420221 1489221 1560221 1632221 1706221 1783221 1862221
REVERSION CALCULATIONS
Project NOI (Year 16) 2772000
Cap Rate 800
Gross Sales Proceeds 34650000
Less Selling Costs 30 (1039500)
Net Sales Proceeds 33610500
Less Mortgage Balance (3655385)
Net Reversion Proceeds 29955115
Gross Rental Rate $2924 $2999 $3077 $3155 $3238 $3320 $3406 $3494 $3585 $3677 $3772 $3871 $3971 $4074 $4181 $4289 $4401 $4516 $4634 $4755 $4879
Equity $ (6354000) 00 00 550221 667221 790221 839221 890221 942221 996221 1051221 1109221 1167221 1227221 1290221 1354221 1420221 1489221 1560221 1632221 1706221 1783221 31817335
ROE 1433 IRR 87 105 124 132 140 148 157 165 175 184 193 203 213 224 234 246 257 269 281 293
ONE BIG SKY CENTER
Billings Montana
SENIOR HOUSING - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 23350000 Land Acquisition $ 4800000 $16000 DU
Construction $ 54000000 $180000 DU
Debt Financing $ 54485000 FFampE $ 3000000 $10000 DU
Development $ 11400000 20
Financing $ 1157000 70 Loan to Project Costs
Contingency $ 3478000 5
TOTAL $ 77835000 TOTAL $ 77835000 $259450 DU
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Number of Units 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Monthly Rent $2620 $2699 $2780 $2863 $2949 $3037 $3128 $3222 $3319 $3419 $3521 $3627 $3735 $3848 $3963 $4082
Rental Rate per Square Foot $440 $453 $467 $481 $495 $510 $525 $541 $557 $574 $591 $609 $627 $646 $666 $686 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 9432000 9715000 10006000 10307000 10616000 10934000 11262000 11600000 11948000 12307000 12676000 13056000 13448000 13851000 14267000 14695000
Miscellaneous 189000 194000 200000 206000 212000 219000 225000 232000 239000 246000 254000 261000 269000 277000 285000 294000 2 of PGI
Vacancy Collections Losses (962000) (495000) (510000) (526000) (541000) (558000) (574000) (592000) (609000) (628000) (647000) (666000) (686000) (706000) (728000) (749000)
Effective Gross Income 8659000 9414000 9696000 9987000 10287000 10595000 10913000 11240000 11578000 11925000 12283000 12651000 13031000 13422000 13824000 14240000
OPERATING EXPENSES
Administrative 160000 165000 170000 175000 180000 185000 191000 197000 203000 209000 215000 221000 228000 235000 242000 249000 17 of PGI
Advertising 67000 69000 71000 73000 75000 77000 80000 82000 84000 87000 90000 92000 95000 98000 101000 104000 07 of PGI
Repairs amp Maintenance 266000 274000 283000 291000 300000 309000 318000 328000 338000 348000 358000 369000 380000 391000 403000 415000 28 of PGI
Utilities 400000 412000 424000 437000 450000 463000 477000 492000 506000 521000 537000 553000 570000 587000 605000 623000 42 of PGI
Payroll 480000 494000 509000 524000 540000 556000 573000 590000 608000 626000 645000 664000 684000 704000 725000 747000 50 of PGI
Insurance 187000 192000 198000 204000 210000 216000 223000 229000 236000 243000 251000 258000 266000 274000 282000 291000 19 of PGI
Property Taxes 1066000 1098000 1131000 1165000 1200000 1236000 1273000 1311000 1350000 1391000 1432000 1475000 1520000 1565000 1612000 1660000 111 of PGI
Management Fee 346000 377000 388000 399000 411000 424000 437000 450000 463000 477000 491000 506000 521000 537000 553000 570000 40 of EGI
Reserves 173000 188000 194000 200000 206000 212000 218000 225000 232000 239000 246000 253000 261000 268000 276000 285000 20 of EGI
Total Expenses 3145000 3269000 3368000 3468000 3572000 3678000 3790000 3904000 4020000 4141000 4265000 4391000 4525000 4659000 4799000 4944000
NET OPERATING INCOME 5514000 6145000 6328000 6519000 6715000 6917000 7123000 7336000 7558000 7784000 8018000 8260000 8506000 8763000 9025000 9296000
Annual Debt Service (500 25 -yr Amort) 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167
DSCR 144x 161x 166x 171x 176x 181x 186x 192x 198x 204x 210x 216x 223x 229x 236x
Mortgage Balance $53361570 $52180663 $50939339 $49634506 $48262916 $46821152 $45305625 $43712561 $42037993 $40277751 $38427451 $36482486 $34438013 $32288942 $30029919
BEFORE TAX CASH FLOW 1691833 2322833 2505833 2696833 2892833 3094833 3300833 3513833 3735833 3961833 4195833 4437833 4683833 4940833 5202833
REVERSION CALCULATIONS
Project NOI (Year 21) 9296000
Cap Rate 700
Gross Sales Proceeds 132800000
Less Selling Costs 30 (3984000)
Net Sales Proceeds 128816000
Less Mortgage Balance (30029919)
Net Reversion Proceeds 98786081
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (23350000) 00 00 1691833 2322833 2505833 2696833 2892833 3094833 3300833 3513833 3735833 3961833 4195833 4437833 4683833 4940833 103988914
ROE 1460 IRR 72 99 107 115 124 133 141 150 160 170 180 190 201 212 223
ONE BIG SKY CENTER
Billings Montana
SENIOR HOUSING - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 7738000 Land Acquisition $ 1800000 $12000 DU
Construction $ 20100000 $134000 DU
Debt Financing $ 18054000 FFampE $ 1200000 $8000 DU
Development $ 4260000 20
Public Investment $ 3300000 Financing $ 432000 70 Loan to Project Costs
Contingency $ 1300000 5
TOTAL $ 29092000 TOTAL $ 29092000 $193947 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Monthly Rent $1610 $1658 $1708 $1759 $1812 $1866 $1922 $1980 $2039 $2101 $2164 $2229 $2295 $2364 $2435 $2508 $2584 $2661 $2741 $2823 $2908
Rental Rate per Square Foot $270 $278 $286 $295 $304 $313 $322 $332 $342 $352 $363 $374 $385 $397 $408 $421 $433 $446 $460 $473 $488 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 2898000 2985000 3074000 3167000 3262000 3360000 3460000 3564000 3671000 3781000 3895000 4012000 4132000 4256000 4383000 4515000 4650000 4790000 4934000 5082000 5234000
Miscellaneous 58000 60000 61000 63000 65000 67000 69000 71000 73000 76000 78000 80000 83000 85000 88000 90000 93000 96000 99000 102000 105000 2 of PGI
Vacancy Collections Losses (296000) (152000) (157000) (162000) (166000) (171000) (176000) (182000) (187000) (193000) (199000) (205000) (211000) (217000) (224000) (230000) (237000) (244000) (252000) (259000) (267000)
Effective Gross Income 2660000 2893000 2978000 3068000 3161000 3256000 3353000 3453000 3557000 3664000 3774000 3887000 4004000 4124000 4247000 4375000 4506000 4642000 4781000 4925000 5072000
OPERATING EXPENSES
Administrative 49000 51000 52000 54000 55000 57000 59000 60000 62000 64000 66000 68000 70000 72000 74000 77000 79000 81000 84000 86000 89000 17 of PGI
Advertising 20000 21000 22000 22000 23000 24000 24000 25000 26000 27000 28000 28000 29000 30000 31000 32000 33000 34000 35000 36000 37000 07 of PGI
Repairs amp Maintenance 82000 84000 87000 89000 92000 95000 98000 101000 104000 107000 110000 113000 117000 120000 124000 128000 131000 135000 139000 144000 148000 28 of PGI
Utilities 123000 126000 130000 134000 138000 142000 147000 151000 156000 160000 165000 170000 175000 180000 186000 191000 197000 203000 209000 215000 222000 42 of PGI
Payroll 147000 152000 156000 161000 166000 171000 176000 181000 187000 192000 198000 204000 210000 216000 223000 230000 236000 244000 251000 258000 266000 50 of PGI
Insurance 57000 59000 61000 63000 64000 66000 68000 70000 73000 75000 77000 79000 82000 84000 87000 89000 92000 95000 98000 100000 104000 19 of PGI
Property Taxes 327000 337000 347000 358000 369000 380000 391000 403000 415000 427000 440000 453000 467000 481000 495000 510000 525000 541000 558000 574000 591000 111 of PGI
Management Fee 106000 116000 119000 123000 126000 130000 134000 138000 142000 147000 151000 155000 160000 165000 170000 175000 180000 186000 191000 197000 203000 40 of EGI
Reserves 53000 58000 60000 61000 63000 65000 67000 69000 71000 73000 75000 78000 80000 82000 85000 88000 90000 93000 96000 99000 101000 20 of EGI
Total Expenses 964000 1004000 1034000 1065000 1096000 1130000 1164000 1198000 1236000 1272000 1310000 1348000 1390000 1430000 1475000 1520000 1563000 1612000 1661000 1709000 1761000
NET OPERATING INCOME 1696000 1889000 1944000 2003000 2065000 2126000 2189000 2255000 2321000 2392000 2464000 2539000 2614000 2694000 2772000 2855000 2943000 3030000 3120000 3216000 3311000
Annual Debt Service (500 25 -yr Amort) 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503
DSCR 134x 149x 153x 158x 163x 168x 173x 178x 183x 189x 195x 200x 206x 213x 219x 225x 232x 239x 246x 254x
Mortgage Balance $17681743 $17290441 $16879120 $16446754 $15992267 $15514529 $15012348 $14484474 $13929594 $13346325 $12733215 $12088736 $11411286 $10699175 $9950632 $9163791 $8336695 $7467282 $6553389 $5592739
BEFORE TAX CASH FLOW 429497 622497 677497 736497 798497 859497 922497 988497 1054497 1125497 1197497 1272497 1347497 1427497 1505497 1588497 1676497 1763497 1853497 1949497
REVERSION CALCULATIONS
Project NOI (Year 21) 3311000
Cap Rate 700
Gross Sales Proceeds 47300000
Less Selling Costs 30 (1419000)
Net Sales Proceeds 45881000
Less Mortgage Balance (5592739)
Net Reversion Proceeds 40288261
NOI Margin 638 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (7738000) 00 00 429497 622497 677497 736497 798497 859497 922497 988497 1054497 1125497 1197497 1272497 1347497 1427497 1505497 1588497 1676497 1763497 1853497 42237758
ROE 1304 IRR 56 80 88 95 103 111 119 128 136 145 155 164 174 184 195 205 217 228 240 252
ONE BIG SKY CENTER
Billings Montana
SENIOR HOUSING - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 8728000 Land Acquisition $ 1800000 $12000 DU
Construction $ 20100000 $134000 DU
Debt Financing $ 20364000 FFampE $ 1200000 $8000 DU
Development $ 4260000 20
Financing $ 432000 70 Loan to Project Costs
Contingency $ 1300000 5
TOTAL $ 29092000 TOTAL $ 29092000 $193947 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Monthly Rent $1960 $2019 $2079 $2142 $2206 $2272 $2340 $2411 $2483 $2557 $2634 $2713 $2794 $2878 $2965 $3054 $3145 $3240 $3337 $3437 $3540
Rental Rate per Square Foot $330 $340 $350 $361 $371 $383 $394 $406 $418 $431 $443 $457 $471 $485 $499 $514 $530 $545 $562 $579 $596 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 3528000 3634000 3743000 3855000 3971000 4090000 4213000 4339000 4469000 4603000 4741000 4884000 5030000 5181000 5336000 5497000 5661000 5831000 6006000 6186000 6372000
Miscellaneous 71000 73000 75000 77000 79000 82000 84000 87000 89000 92000 95000 98000 101000 104000 107000 110000 113000 117000 120000 124000 127000 2 of PGI
Vacancy Collections Losses (360000) (185000) (191000) (197000) (203000) (209000) (215000) (221000) (228000) (235000) (242000) (249000) (257000) (264000) (272000) (280000) (289000) (297000) (306000) (316000) (325000)
Effective Gross Income 3239000 3522000 3627000 3735000 3847000 3963000 4082000 4205000 4330000 4460000 4594000 4733000 4874000 5021000 5171000 5327000 5485000 5651000 5820000 5994000 6174000
OPERATING EXPENSES
Administrative 60000 62000 63000 65000 67000 69000 71000 74000 76000 78000 80000 83000 85000 88000 90000 93000 96000 99000 102000 105000 108000 17 of PGI
Advertising 25000 26000 26000 27000 28000 29000 30000 31000 32000 33000 33000 34000 36000 37000 38000 39000 40000 41000 42000 44000 45000 07 of PGI
Repairs amp Maintenance 100000 103000 106000 109000 112000 116000 119000 123000 126000 130000 134000 138000 142000 146000 151000 155000 160000 165000 170000 175000 180000 28 of PGI
Utilities 150000 154000 159000 163000 168000 173000 179000 184000 189000 195000 201000 207000 213000 220000 226000 233000 240000 247000 254000 262000 270000 42 of PGI
Payroll 179000 185000 190000 196000 202000 208000 214000 221000 227000 234000 241000 248000 256000 263000 271000 280000 288000 297000 305000 315000 324000 50 of PGI
Insurance 70000 72000 74000 76000 79000 81000 83000 86000 88000 91000 94000 97000 99000 102000 106000 109000 112000 115000 119000 122000 126000 19 of PGI
Property Taxes 399000 411000 423000 436000 449000 462000 476000 490000 505000 520000 536000 552000 568000 585000 603000 621000 640000 659000 679000 699000 720000 111 of PGI
Management Fee 130000 141000 145000 149000 154000 159000 163000 168000 173000 178000 184000 189000 195000 201000 207000 213000 219000 226000 233000 240000 247000 40 of EGI
Reserves 65000 70000 73000 75000 77000 79000 82000 84000 87000 89000 92000 95000 97000 100000 103000 107000 110000 113000 116000 120000 123000 20 of EGI
Total Expenses 1178000 1224000 1259000 1296000 1336000 1376000 1417000 1461000 1503000 1548000 1595000 1643000 1691000 1742000 1795000 1850000 1905000 1962000 2020000 2082000 2143000
NET OPERATING INCOME 2061000 2298000 2368000 2439000 2511000 2587000 2665000 2744000 2827000 2912000 2999000 3090000 3183000 3279000 3376000 3477000 3580000 3689000 3800000 3912000 4031000
Annual Debt Service (500 25 -yr Amort) 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551
DSCR 144x 161x 166x 171x 176x 181x 187x 192x 198x 204x 210x 216x 223x 230x 236x 243x 251x 258x 266x 274x
Mortgage Balance $19944113 $19502744 $19038794 $18551107 $18038470 $17499604 $16933170 $16337755 $15711878 $15053980 $14362423 $13635484 $12871354 $12068129 $11223810 $10336294 $9403370 $8422717 $7391892 $6308327
BEFORE TAX CASH FLOW 632449 869449 939449 1010449 1082449 1158449 1236449 1315449 1398449 1483449 1570449 1661449 1754449 1850449 1947449 2048449 2151449 2260449 2371449 2483449
REVERSION CALCULATIONS
Project NOI (Year 21) 4031000
Cap Rate 700
Gross Sales Proceeds 57585714
Less Selling Costs 30 (1727571)
Net Sales Proceeds 55858143
Less Mortgage Balance (6308327)
Net Reversion Proceeds 49549816
NOI Margin 636 652 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (8728000) 00 00 632449 869449 939449 1010449 1082449 1158449 1236449 1315449 1398449 1483449 1570449 1661449 1754449 1850449 1947449 2048449 2151449 2260449 2371449 52033265
ROE 1419 IRR 72 100 108 116 124 133 142 151 160 170 180 190 201 212 223 235 246 259 272 285
ONE BIG SKY CENTER
Billings Montana
RESIDENTIAL - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 67840000 Land Acquisition $ 16000000 $20000 DU
Construction $ 156000000 $195000 DU
Debt Financing $ 158294000 FFampE $ 8000000 $10000 DU
Development $ 32800000 20
Financing $ 3328000 70 Loan to Project Costs
Contingency $ 10006000 5
TOTAL $ 226134000 TOTAL $ 226134000 $282668 DU
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Number of Units 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800
Average Monthly Rent $2840 $2925 $3013 $3103 $3196 $3292 $3391 $3493 $3598 $3706 $3817 $3931 $4049 $4171 $4296 $4425
Rental Rate per Square Foot $355 $366 $377 $388 $400 $412 $424 $437 $450 $463 $477 $491 $506 $521 $537 $553 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 27264000 28082000 28924000 29792000 30686000 31606000 32555000 33531000 34537000 35573000 36641000 37740000 38872000 40038000 41239000 42476000
Miscellaneous 545000 562000 578000 596000 614000 632000 651000 671000 691000 711000 733000 755000 777000 801000 825000 850000 2 of PGI
Vacancy Collections Losses (2781000) (1432000) (1475000) (1519000) (1565000) (1612000) (1660000) (1710000) (1761000) (1814000) (1869000) (1925000) (1982000) (2042000) (2103000) (2166000)
Effective Gross Income 25028000 27212000 28027000 28869000 29735000 30626000 31546000 32492000 33467000 34470000 35505000 36570000 37667000 38797000 39961000 41160000
OPERATING EXPENSES
Administrative 462000 476000 490000 505000 520000 536000 552000 568000 585000 603000 621000 640000 659000 679000 699000 720000 17 of PGI
Advertising 193000 198000 204000 210000 217000 223000 230000 237000 244000 251000 259000 267000 275000 283000 291000 300000 07 of PGI
Repairs amp Maintenance 770000 793000 817000 842000 867000 893000 920000 947000 976000 1005000 1035000 1066000 1098000 1131000 1165000 1200000 28 of PGI
Utilities 1155000 1190000 1226000 1262000 1300000 1339000 1379000 1421000 1463000 1507000 1553000 1599000 1647000 1697000 1747000 1800000 42 of PGI
Payroll 1386000 1428000 1471000 1515000 1560000 1607000 1655000 1705000 1756000 1809000 1863000 1919000 1977000 2036000 2097000 2160000 50 of PGI
Insurance 539000 555000 572000 589000 607000 625000 644000 663000 683000 703000 725000 746000 769000 792000 815000 840000 19 of PGI
Property Taxes 3081000 3173000 3268000 3366000 3467000 3571000 3679000 3789000 3903000 4019000 4140000 4264000 4392000 4524000 4660000 4800000 111 of PGI
Management Fee 1001000 1088000 1121000 1155000 1189000 1225000 1262000 1300000 1339000 1379000 1420000 1463000 1507000 1552000 1598000 1646000 40 of EGI
Reserves 501000 544000 561000 577000 595000 613000 631000 650000 669000 689000 710000 731000 753000 776000 799000 823000 20 of EGI
Total Expenses 9088000 9445000 9730000 10021000 10322000 10632000 10952000 11280000 11618000 11965000 12326000 12695000 13077000 13470000 13871000 14289000
NET OPERATING INCOME 15940000 17767000 18297000 18848000 19413000 19994000 20594000 21212000 21849000 22505000 23179000 23875000 24590000 25327000 26090000 26871000
Annual Debt Service (500 25 -yr Amort) 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452
DSCR 144x 160x 165x 170x 175x 180x 185x 191x 197x 203x 209x 215x 221x 228x 235x
Mortgage Balance $155030125 $151599264 $147992874 $144201974 $140217124 $136028402 $131625377 $126997085 $122132001 $117018009 $111642377 $105991716 $100051957 $93808309 $87245224
BEFORE TAX CASH FLOW 4835548 6662548 7192548 7743548 8308548 8889548 9489548 10107548 10744548 11400548 12074548 12770548 13485548 14222548 14985548
REVERSION CALCULATIONS
Project NOI (Year 21) 26871000
Cap Rate 700
Gross Sales Proceeds 383871429
Less Selling Costs 30 (11516143)
Net Sales Proceeds 372355286
Less Mortgage Balance (87245224)
Net Reversion Proceeds 285110062
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (67840000) 00 00 4835548 6662548 7192548 7743548 8308548 8889548 9489548 10107548 10744548 11400548 12074548 12770548 13485548 14222548 300095610
ROE 1451 IRR 71 98 106 114 122 131 140 149 158 168 178 188 199 210 221
ONE BIG SKY CENTER
Billings Montana
RESIDENTIAL - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 16834000 Land Acquisition $ 4500000 $15000 DU
Construction $ 43500000 $145000 DU
Debt Financing $ 39278000 FFampE $ 2400000 $8000 DU
Development $ 9180000 20
Public Investment $ 7200000 Financing $ 931000 70 Loan to Project Costs
Contingency $ 2801000 5
TOTAL $ 63312000 TOTAL $ 63312000 $211040 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Monthly Rent $1760 $1813 $1867 $1923 $1981 $2040 $2102 $2165 $2230 $2296 $2365 $2436 $2509 $2585 $2662 $2742 $2824 $2909 $2996 $3086 $3179
Rental Rate per Square Foot $220 $227 $233 $240 $248 $255 $263 $271 $279 $287 $296 $305 $314 $323 $333 $343 $353 $364 $375 $386 $397 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 6336000 6526000 6722000 6924000 7131000 7345000 7566000 7792000 8026000 8267000 8515000 8771000 9034000 9305000 9584000 9871000 10167000 10472000 10787000 11110000 11444000
Miscellaneous 127000 131000 134000 138000 143000 147000 151000 156000 161000 165000 170000 175000 181000 186000 192000 197000 203000 209000 216000 222000 229000 2 of PGI
Vacancy Collections Losses (646000) (333000) (343000) (353000) (364000) (375000) (386000) (397000) (409000) (422000) (434000) (447000) (461000) (475000) (489000) (503000) (519000) (534000) (550000) (567000) (584000)
Effective Gross Income 5817000 6324000 6513000 6709000 6910000 7117000 7331000 7551000 7778000 8010000 8251000 8499000 8754000 9016000 9287000 9565000 9851000 10147000 10453000 10765000 11089000
OPERATING EXPENSES
Administrative 107000 111000 114000 117000 121000 124000 128000 132000 136000 140000 144000 149000 153000 158000 162000 167000 172000 177000 183000 188000 194000 17 of PGI
Advertising 45000 46000 47000 49000 50000 52000 53000 55000 57000 58000 60000 62000 64000 66000 68000 70000 72000 74000 76000 78000 81000 07 of PGI
Repairs amp Maintenance 179000 184000 190000 196000 201000 207000 214000 220000 227000 234000 241000 248000 255000 263000 271000 279000 287000 296000 305000 314000 323000 28 of PGI
Utilities 268000 277000 285000 293000 302000 311000 321000 330000 340000 350000 361000 372000 383000 394000 406000 418000 431000 444000 457000 471000 485000 42 of PGI
Payroll 322000 332000 342000 352000 363000 373000 385000 396000 408000 420000 433000 446000 459000 473000 487000 502000 517000 532000 549000 565000 582000 50 of PGI
Insurance 125000 129000 133000 137000 141000 145000 150000 154000 159000 163000 168000 173000 179000 184000 190000 195000 201000 207000 213000 220000 226000 19 of PGI
Property Taxes 716000 737000 759000 782000 806000 830000 855000 880000 907000 934000 962000 991000 1021000 1051000 1083000 1115000 1149000 1183000 1219000 1255000 1293000 111 of PGI
Management Fee 233000 253000 261000 268000 276000 285000 293000 302000 311000 320000 330000 340000 350000 361000 371000 383000 394000 406000 418000 431000 444000 40 of EGI
Reserves 116000 126000 130000 134000 138000 142000 147000 151000 156000 160000 165000 170000 175000 180000 186000 191000 197000 203000 209000 215000 222000 20 of EGI
Total Expenses 2111000 2195000 2261000 2328000 2398000 2469000 2546000 2620000 2701000 2779000 2864000 2951000 3039000 3130000 3224000 3320000 3420000 3522000 3629000 3737000 3850000
NET OPERATING INCOME 3706000 4129000 4252000 4381000 4512000 4648000 4785000 4931000 5077000 5231000 5387000 5548000 5715000 5886000 6063000 6245000 6431000 6625000 6824000 7028000 7239000
Annual Debt Service (500 25 -yr Amort) 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383
DSCR 135x 150x 154x 159x 164x 169x 174x 179x 184x 190x 196x 201x 207x 214x 220x 227x 233x 240x 248x 255x
Mortgage Balance $38468124 $37616814 $36721948 $35781300 $34792527 $33753166 $32660629 $31512196 $30305007 $29036056 $27702182 $26300066 $24826214 $23276958 $21648438 $19936601 $18137182 $16245702 $14257450 $12167476
BEFORE TAX CASH FLOW 950617 1373617 1496617 1625617 1756617 1892617 2029617 2175617 2321617 2475617 2631617 2792617 2959617 3130617 3307617 3489617 3675617 3869617 4068617 4272617
REVERSION CALCULATIONS
Project NOI (Year 21) 7239000
Cap Rate 700
Gross Sales Proceeds 103414286
Less Selling Costs 30 (3102429)
Net Sales Proceeds 100311857
Less Mortgage Balance (12167476)
Net Reversion Proceeds 88144381
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (16834000) 00 00 950617 1373617 1496617 1625617 1756617 1892617 2029617 2175617 2321617 2475617 2631617 2792617 2959617 3130617 3307617 3489617 3675617 3869617 4068617 92416998
ROE 1312 IRR 56 82 89 97 104 112 121 129 138 147 156 166 176 186 196 207 218 230 242 254
ONE BIG SKY CENTER
Billings Montana
RESIDENTIAL - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 18994000 Land Acquisition $ 4500000 $15000 DU
Construction $ 43500000 $145000 DU
Debt Financing $ 44318000 FFampE $ 2400000 $8000 DU
Development $ 9180000 20
Financing $ 931000 70 Loan to Project Costs
Contingency $ 2801000 5
TOTAL $ 63312000 TOTAL $ 63312000 $211040 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Monthly Rent $2120 $2184 $2249 $2317 $2386 $2458 $2531 $2607 $2686 $2766 $2849 $2935 $3023 $3113 $3207 $3303 $3402 $3504 $3609 $3717 $3829
Rental Rate per Square Foot $265 $273 $281 $290 $298 $307 $316 $326 $336 $346 $356 $367 $378 $389 $401 $413 $425 $438 $451 $465 $479 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 7632000 7861000 8097000 8340000 8590000 8848000 9113000 9386000 9668000 9958000 10257000 10564000 10881000 11208000 11544000 11890000 12247000 12615000 12993000 13383000 13784000
Miscellaneous 153000 157000 162000 167000 172000 177000 182000 188000 193000 199000 205000 211000 218000 224000 231000 238000 245000 252000 260000 268000 276000 2 of PGI
Vacancy Collections Losses (779000) (401000) (413000) (425000) (438000) (451000) (465000) (479000) (493000) (508000) (523000) (539000) (555000) (572000) (589000) (606000) (625000) (643000) (663000) (683000) (703000)
Effective Gross Income 7006000 7617000 7846000 8082000 8324000 8574000 8830000 9095000 9368000 9649000 9939000 10236000 10544000 10860000 11186000 11522000 11867000 12224000 12590000 12968000 13357000
OPERATING EXPENSES
Administrative 129000 133000 137000 141000 146000 150000 154000 159000 164000 169000 174000 179000 184000 190000 196000 202000 208000 214000 220000 227000 234000 17 of PGI
Advertising 54000 56000 57000 59000 61000 62000 64000 66000 68000 70000 72000 75000 77000 79000 82000 84000 86000 89000 92000 95000 97000 07 of PGI
Repairs amp Maintenance 216000 222000 229000 236000 243000 250000 257000 265000 273000 281000 290000 298000 307000 317000 326000 336000 346000 356000 367000 378000 389000 28 of PGI
Utilities 323000 333000 343000 353000 364000 375000 386000 398000 410000 422000 435000 448000 461000 475000 489000 504000 519000 535000 551000 567000 584000 42 of PGI
Payroll 388000 400000 412000 424000 437000 450000 463000 477000 492000 506000 522000 537000 553000 570000 587000 605000 623000 641000 661000 681000 701000 50 of PGI
Insurance 151000 155000 160000 165000 170000 175000 180000 186000 191000 197000 203000 209000 215000 222000 228000 235000 242000 249000 257000 265000 273000 19 of PGI
Property Taxes 862000 888000 915000 942000 971000 1000000 1030000 1061000 1092000 1125000 1159000 1194000 1230000 1266000 1304000 1344000 1384000 1425000 1468000 1512000 1558000 111 of PGI
Management Fee 280000 305000 314000 323000 333000 343000 353000 364000 375000 386000 398000 409000 422000 434000 447000 461000 475000 489000 504000 519000 534000 40 of EGI
Reserves 140000 152000 157000 162000 166000 171000 177000 182000 187000 193000 199000 205000 211000 217000 224000 230000 237000 244000 252000 259000 267000 20 of EGI
Total Expenses 2543000 2644000 2724000 2805000 2891000 2976000 3064000 3158000 3252000 3349000 3452000 3554000 3660000 3770000 3883000 4001000 4120000 4242000 4372000 4503000 4637000
NET OPERATING INCOME 4463000 4973000 5122000 5277000 5433000 5598000 5766000 5937000 6116000 6300000 6487000 6682000 6884000 7090000 7303000 7521000 7747000 7982000 8218000 8465000 8720000
Annual Debt Service (500 25 -yr Amort) 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943
DSCR 144x 160x 165x 170x 175x 180x 185x 191x 197x 203x 209x 215x 221x 228x 235x 242x 249x 257x 264x 272x
Mortgage Balance $43404204 $42443657 $41433966 $40372617 $39256968 $38084240 $36851513 $35555718 $34193627 $32761849 $31256819 $29674788 $28011817 $26263766 $24426282 $22494788 $20464475 $18330287 $16086911 $13728759
BEFORE TAX CASH FLOW 1354057 1864057 2013057 2168057 2324057 2489057 2657057 2828057 3007057 3191057 3378057 3573057 3775057 3981057 4194057 4412057 4638057 4873057 5109057 5356057
REVERSION CALCULATIONS
Project NOI (Year 21) 8720000
Cap Rate 700
Gross Sales Proceeds 124571429
Less Selling Costs 30 (3737143)
Net Sales Proceeds 120834286
Less Mortgage Balance (13728759)
Net Reversion Proceeds 107105527
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (18994000) 00 00 1354057 1864057 2013057 2168057 2324057 2489057 2657057 2828057 3007057 3191057 3378057 3573057 3775057 3981057 4194057 4412057 4638057 4873057 5109057 112461584
ROE 1411 IRR 71 98 106 114 122 131 140 149 158 168 178 188 199 210 221 232 244 257 269 282
ONE BIG SKY CENTER
Billings Montana
MEDICAL OFFICE - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 32865000 Land Acquisition $ 6800000 $3400 SF
Construction $ 42000000 $21000 SF
Debt Financing $ 61034000 Development $ 10500000 25
Financing $ 3451000 65 Loan to Project Costs
TI Allowances $ 27000000 $13500 SF
Contingency $ 4148000 5
TOTAL $ 93899000 TOTAL $ 93899000 $46950 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $4250 $4378 $4509 $4644 $4783 $4927 $5075 $5227 $5384 $5545 $5712 $5883 $6059 $6241 $6429 $6621 3
OPERATING REVENUES
Office Rent (NNN) 8500000 8755000 9018000 9288000 9567000 9854000 10149000 10454000 10768000 11091000 11423000 11766000 12119000 12483000 12857000 13243000
Expense Reimbursements 3531000 3601000 3674000 3747000 3822000 3898000 3976000 4056000 4137000 4220000 4304000 4390000 4478000 4568000 4659000 4752000
Vacancy Allowance (1203000) (927000) (635000) (652000) (669000) (688000) (706000) (726000) (745000) (766000) (786000) (808000) (830000) (853000) (876000) (900000)
Total Revenues 10828000 11429000 12057000 12383000 12720000 13064000 13419000 13784000 14160000 14545000 14941000 15348000 15767000 16198000 16640000 17095000
OPERATING EXPENSES
Operating Expenses 2568000 2619000 2672000 2725000 2780000 2835000 2892000 2950000 3009000 3069000 3130000 3193000 3257000 3322000 3388000 3456000
Property Taxes 963000 982000 1002000 1022000 1042000 1063000 1084000 1106000 1128000 1151000 1174000 1197000 1221000 1246000 1271000 1296000
Total Expenses 3531000 3601000 3674000 3747000 3822000 3898000 3976000 4056000 4137000 4220000 4304000 4390000 4478000 4568000 4659000 4752000
NET OPERATING INCOME 7297000 7828000 8383000 8636000 8898000 9166000 9443000 9728000 10023000 10325000 10637000 10958000 11289000 11630000 11981000 12343000
Annual Debt Service (500 25 -yr Amort) 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584
DSCR 170x 183x 196x 202x 208x 214x 221x 227x 234x 241x 248x 256x 264x 272x 280x
Mortgage Balance $59775536 $58452686 $57062157 $55600486 $54064033 $52448972 $50751281 $48966733 $47090885 $45119064 $43046362 $40867616 $38577401 $36170015 $33639462
BEFORE TAX CASH FLOW 3015416 3546416 4101416 4354416 4616416 4884416 5161416 5446416 5741416 6043416 6355416 6676416 7007416 7348416 7699416
REVERSION CALCULATIONS
Project NOI (Year 21) 12343000
Cap Rate 800
Gross Sales Proceeds 154287500
Less Selling Costs 30 (4628625)
Net Sales Proceeds 149658875
Less Mortgage Balance (33639462)
Net Reversion Proceeds 116019413
Gross Rental Rate $6016 $6178 $6346 $6518 $6695 $6876 $7063 $7255 $7453 $7656 $7864 $8078 $8299 $8526 $8758 $8998
Equity $ (32865000) 00 00 3015416 3546416 4101416 4354416 4616416 4884416 5161416 5446416 5741416 6043416 6355416 6676416 7007416 7348416 123718829
ROE 1460 IRR 92 108 125 132 140 149 157 166 175 184 193 203 213 224 234
ONE BIG SKY CENTER
Billings Montana
MEDICAL OFFICE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 21327000 Land Acquisition $ 4375000 $2500 SF
Construction $ 27300000 $15600 SF
Debt Financing $ 39607000 Development $ 6825000 25
Financing $ 2241000 65 Loan to Project Costs
TI Allowances $ 17500000 $10000 SF
Contingency $ 2693000 5
TOTAL $ 60934000 TOTAL $ 60934000 $34819 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3165 $3260 $3358 $3458 $3562 $3669 $3779 $3893 $4009 $4130 $4253 $4381 $4513 $4648 $4787 $4931 $5079 $5231 $5388 $5550 $5716 3
OPERATING REVENUES
Office Rent (NNN) 5539000 5705000 5876000 6052000 6234000 6421000 6614000 6812000 7016000 7227000 7444000 7667000 7897000 8134000 8378000 8629000 8888000 9155000 9429000 9712000 10004000
Expense Reimbursements 2299000 2345000 2392000 2439000 2489000 2538000 2589000 2641000 2694000 2747000 2802000 2859000 2916000 2974000 3033000 3094000 3156000 3219000 3284000 3349000 3417000
Vacancy Allowance (784000) (604000) (413000) (425000) (436000) (448000) (460000) (473000) (486000) (499000) (512000) (526000) (541000) (555000) (571000) (586000) (602000) (619000) (636000) (653000) (671000)
Total Revenues 7054000 7446000 7855000 8066000 8287000 8511000 8743000 8980000 9224000 9475000 9734000 10000000 10272000 10553000 10840000 11137000 11442000 11755000 12077000 12408000 12750000
OPERATING EXPENSES
Operating Expenses 1672000 1705000 1740000 1774000 1810000 1846000 1883000 1921000 1959000 1998000 2038000 2079000 2121000 2163000 2206000 2250000 2295000 2341000 2388000 2436000 2485000
Property Taxes 627000 640000 652000 665000 679000 692000 706000 720000 735000 749000 764000 780000 795000 811000 827000 844000 861000 878000 896000 913000 932000
Total Expenses 2299000 2345000 2392000 2439000 2489000 2538000 2589000 2641000 2694000 2747000 2802000 2859000 2916000 2974000 3033000 3094000 3156000 3219000 3284000 3349000 3417000
NET OPERATING INCOME 4755000 5101000 5463000 5627000 5798000 5973000 6154000 6339000 6530000 6728000 6932000 7141000 7356000 7579000 7807000 8043000 8286000 8536000 8793000 9059000 9333000
Annual Debt Service (500 25 -yr Amort) 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463
DSCR 171x 184x 197x 203x 209x 215x 221x 228x 235x 242x 249x 257x 265x 273x 281x 289x 298x 307x 316x 326x
Mortgage Balance $38790341 $37931899 $37029538 $36081011 $35083955 $34035888 $32934200 $31776148 $30558847 $29279267 $27934221 $26520360 $25034163 $23471930 $21829770 $20103593 $18289103 $16381779 $14376873 $12269393
BEFORE TAX CASH FLOW 1976537 2322537 2684537 2848537 3019537 3194537 3375537 3560537 3751537 3949537 4153537 4362537 4577537 4800537 5028537 5264537 5507537 5757537 6014537 6280537
REVERSION CALCULATIONS
Project NOI (Year 21) 9333000
Cap Rate 800
Gross Sales Proceeds 116662500
Less Selling Costs 30 (3499875)
Net Sales Proceeds 113162625
Less Mortgage Balance (12269393)
Net Reversion Proceeds 100893232
Gross Rental Rate $4479 $4600 $4725 $4852 $4985 $5119 $5259 $5402 $5549 $5699 $5855 $6015 $6179 $6347 $6521 $6699 $6882 $7071 $7265 $7463 $7669
Equity $ (21327000) 00 00 1976537 2322537 2684537 2848537 3019537 3194537 3375537 3560537 3751537 3949537 4153537 4362537 4577537 4800537 5028537 5264537 5507537 5757537 6014537 107173769
ROE 1444 IRR 93 109 126 134 142 150 158 167 176 185 195 205 215 225 236 247 258 270 282 294
ONE BIG SKY CENTER
Billings Montana
AMBULATORY MEDICAL WELLNESS - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 43599000 Land Acquisition $ - $000 SF
Construction $ 122000000 $30500 SF
Debt Financing $ 247062000 FFampE $ 34800000 $8700 SF
Development $ 52700000 25
Financing $ 13320000 85 Loan to Project Costs
Tenant Improvements $ 54000000 $13500 SF
Contingency $ 13841000 5
TOTAL $ 290661000 TOTAL $ 290661000 $72665 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $5055 $5207 $5363 $5524 $5689 $5860 $6036 $6217 $6404 $6596 $6793 $6997 $7207 $7423 $7646 $7876 3
OPERATING REVENUES
Rent (NNN) 20220000 20827000 21451000 22095000 22758000 23441000 24144000 24868000 25614000 26383000 27174000 27989000 28829000 29694000 30585000 31502000
Expense Reimbursements 8345000 8512000 8682000 8856000 9033000 9213000 9398000 9585000 9778000 9973000 10173000 10376000 10584000 10795000 11011000 11231000
Vacancy Allowance (2857000) (2200000) (1507000) (1548000) (1590000) (1633000) (1677000) (1723000) (1770000) (1818000) (1867000) (1918000) (1971000) (2024000) (2080000) (2137000)
Total Revenues 25708000 27139000 28626000 29403000 30201000 31021000 31865000 32730000 33622000 34538000 35480000 36447000 37442000 38465000 39516000 40596000
OPERATING EXPENSES
Operating Expenses 6419000 6547000 6678000 6812000 6948000 7087000 7229000 7373000 7521000 7671000 7825000 7981000 8141000 8304000 8470000 8639000
Property Taxes 1926000 1965000 2004000 2044000 2085000 2126000 2169000 2212000 2257000 2302000 2348000 2395000 2443000 2491000 2541000 2592000
Total Expenses 8345000 8512000 8682000 8856000 9033000 9213000 9398000 9585000 9778000 9973000 10173000 10376000 10584000 10795000 11011000 11231000
NET OPERATING INCOME 17363000 18627000 19944000 20547000 21168000 21808000 22467000 23145000 23844000 24565000 25307000 26071000 26858000 27670000 28505000 29365000
Annual Debt Service (450 25 -yr Amort) 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010
DSCR 105x 113x 121x 125x 128x 132x 136x 140x 145x 149x 154x 158x 163x 168x 173x
Mortgage Balance $241588811 $235864184 $229876570 $223613885 $217063493 $210212178 $203046115 $195550843 $187711241 $179511488 $170935040 $161964592 $152582043 $142768461 $132504045
BEFORE TAX CASH FLOW 883990 2147990 3464990 4067990 4688990 5328990 5987990 6665990 7364990 8085990 8827990 9591990 10378990 11190990 12025990
REVERSION CALCULATIONS
Project NOI (Year 16) 29365000
Cap Rate 800
Gross Sales Proceeds 367062500
Less Selling Costs 30 (11011875)
Net Sales Proceeds 356050625
Less Mortgage Balance (132504045)
Net Reversion Proceeds 223546580
Gross Rental Rate $7141 $7335 $7533 $7738 $7948 $8164 $8386 $8613 $8848 $9089 $9337 $9591 $9853 $10122 $10399 $10683
Equity $ (43599000) 00 00 883990 2147990 3464990 4067990 4688990 5328990 5987990 6665990 7364990 8085990 8827990 9591990 10378990 11190990 235572570
ROE 1476 IRR 20 49 79 93 108 122 137 153 169 185 202 220 238 257 276
ONE BIG SKY CENTER
Billings Montana
AMBULATORY MEDICAL WELLNESS - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 6081000 Land Acquisition $ - $000 SF
Construction $ 17025000 $22700 SF
Debt Financing $ 34457000 FFampE $ 4875000 $6500 SF
Development $ 7350000 25
Financing $ 1858000 85 Loan to Project Costs
Tenant Improvements $ 7500000 $10000 SF
Contingency $ 1930000 5
TOTAL $ 40538000 TOTAL $ 40538000 $54051 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3760 $3873 $3989 $4109 $4232 $4359 $4490 $4624 $4763 $4906 $5053 $5205 $5361 $5522 $5687 $5858 $6034 $6215 $6401 $6593 $6791 3
OPERATING REVENUES
Rent (NNN) 2820000 2905000 2992000 3081000 3174000 3269000 3367000 3468000 3572000 3679000 3790000 3904000 4021000 4141000 4266000 4393000 4525000 4661000 4801000 4945000 5093000
Expense Reimbursements 1165000 1188000 1212000 1236000 1261000 1286000 1312000 1338000 1365000 1392000 1420000 1448000 1477000 1507000 1537000 1568000 1599000 1632000 1664000 1697000 1731000
Vacancy Allowance (399000) (307000) (210000) (216000) (222000) (228000) (234000) (240000) (247000) (254000) (261000) (268000) (275000) (282000) (290000) (298000) (306000) (315000) (323000) (332000) (341000)
Total Revenues 3586000 3786000 3994000 4101000 4213000 4327000 4445000 4566000 4690000 4817000 4949000 5084000 5223000 5366000 5513000 5663000 5818000 5978000 6142000 6310000 6483000
OPERATING EXPENSES
Operating Expenses 896000 914000 932000 951000 970000 989000 1009000 1029000 1050000 1071000 1092000 1114000 1136000 1159000 1182000 1206000 1230000 1255000 1280000 1305000 1331000
Property Taxes 269000 274000 280000 285000 291000 297000 303000 309000 315000 321000 328000 334000 341000 348000 355000 362000 369000 377000 384000 392000 400000
Total Expenses 1165000 1188000 1212000 1236000 1261000 1286000 1312000 1338000 1365000 1392000 1420000 1448000 1477000 1507000 1537000 1568000 1599000 1632000 1664000 1697000 1731000
NET OPERATING INCOME 2421000 2598000 2782000 2865000 2952000 3041000 3133000 3228000 3325000 3425000 3529000 3636000 3746000 3859000 3976000 4095000 4219000 4346000 4478000 4613000 4752000
Annual Debt Service (450 25 -yr Amort) 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278
DSCR 105x 113x 121x 125x 128x 132x 136x 140x 145x 149x 154x 158x 163x 168x 173x 178x 184x 189x 195x 201x
Mortgage Balance $33693671 $32895274 $32060199 $31186761 $30273198 $29317665 $28318236 $27272893 $26179527 $25035932 $23839800 $22588718 $21280162 $19911491 $18479944 $16982631 $15416532 $13778487 $12065191 $10273186
BEFORE TAX CASH FLOW 122722 299722 483722 566722 653722 742722 834722 929722 1026722 1126722 1230722 1337722 1447722 1560722 1677722 1796722 1920722 2047722 2179722 2314722
REVERSION CALCULATIONS
Project NOI (Year 16) 4752000
Cap Rate 800
Gross Sales Proceeds 59400000
Less Selling Costs 30 (1782000)
Net Sales Proceeds 57618000
Less Mortgage Balance (18479944)
Net Reversion Proceeds 39138056
Gross Rental Rate $5313 $5457 $5605 $5756 $5913 $6073 $6239 $6408 $6583 $6761 $6947 $7136 $7331 $7531 $7737 $7948 $8165 $8391 $8620 $8856 $9099
Equity $ (6081000) 00 00 122722 299722 483722 566722 653722 742722 834722 929722 1026722 1126722 1230722 1337722 1447722 1560722 1677722 1796722 1920722 2047722 2179722 41452778
ROE 1418 IRR 20 49 80 93 108 122 137 153 169 185 202 220 238 257 276 295 316 337 358 381
ONE BIG SKY CENTER
Billings Montana
BIOSCIENCE - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 24494000 Land Acquisition $ 4250000 $3400 SF
Construction $ 26125000 $20900 SF
Debt Financing $ 45490000 FFampE $ 4375000 $3500 SF
Development $ 12000000 25
Financing $ 2604000 65 Loan to Project Costs
TI Allowances $ 17500000 $14000 SF
Contingency $ 3130000 5
TOTAL $ 69984000 TOTAL $ 69984000 $55987 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $4975 $5124 $5278 $5436 $5599 $5767 $5940 $6119 $6302 $6491 $6686 $6887 $7093 $7306 $7525 $7751 3
OPERATING REVENUES
Rent (NNN) 6219000 6405000 6597000 6795000 6999000 7209000 7426000 7648000 7878000 8114000 8357000 8608000 8866000 9132000 9406000 9689000
Expense Reimbursements 2608000 2660000 2713000 2768000 2823000 2880000 2937000 2996000 3055000 3116000 3179000 3243000 3307000 3374000 3441000 3510000
Vacancy Allowance (883000) (680000) (466000) (478000) (491000) (504000) (518000) (532000) (547000) (562000) (577000) (593000) (609000) (625000) (642000) (660000)
Total Revenues 7944000 8385000 8844000 9085000 9331000 9585000 9845000 10112000 10386000 10668000 10959000 11258000 11564000 11881000 12205000 12539000
OPERATING EXPENSES
Operating Expenses 2006000 2046000 2087000 2129000 2171000 2215000 2259000 2304000 2350000 2397000 2445000 2494000 2544000 2595000 2647000 2700000
Property Taxes 602000 614000 626000 639000 652000 665000 678000 692000 705000 719000 734000 749000 763000 779000 794000 810000
Total Expenses 2608000 2660000 2713000 2768000 2823000 2880000 2937000 2996000 3055000 3116000 3179000 3243000 3307000 3374000 3441000 3510000
NET OPERATING INCOME 5336000 5725000 6131000 6317000 6508000 6705000 6908000 7116000 7331000 7552000 7780000 8015000 8257000 8507000 8764000 9029000
Annual Debt Service (500 25 -yr Amort) 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160
DSCR 167x 179x 192x 198x 204x 210x 216x 223x 230x 237x 244x 251x 259x 267x 275x
Mortgage Balance $44552039 $43566089 $42529697 $41440281 $40295128 $39091387 $37826060 $36495997 $35097886 $33628244 $32083413 $30459545 $28752597 $26958318 $25072240
BEFORE TAX CASH FLOW 2144840 2533840 2939840 3125840 3316840 3513840 3716840 3924840 4139840 4360840 4588840 4823840 5065840 5315840 5572840
REVERSION CALCULATIONS
Project NOI (Year 16) 9029000
Cap Rate 800
Gross Sales Proceeds 112862500
Less Selling Costs 30 (3385875)
Net Sales Proceeds 109476625
Less Mortgage Balance (25072240)
Net Reversion Proceeds 84404385
Gross Rental Rate $7062 $7252 $7448 $7650 $7858 $8071 $8290 $8515 $8746 $8984 $9229 $9481 $9738 $10005 $10278 $10559
Equity $ (24494000) 00 00 2144840 2533840 2939840 3125840 3316840 3513840 3716840 3924840 4139840 4360840 4588840 4823840 5065840 5315840 89977224
ROE 1428 IRR 88 103 120 128 135 143 152 160 169 178 187 197 207 217 228
ONE BIG SKY CENTER
Billings Montana
BIOSCIENCE - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 5868000 Land Acquisition $ 1250000 $2500 SF
Construction $ 7750000 $15500 SF
Debt Financing $ 10897000 FFampE $ 1250000 $2500 SF
Development $ 3563000 25
Public Investment $ 4000000 Financing $ 773000 65 Loan to Project Costs
TI Allowances $ 5250000 $10500 SF
Contingency $ 929000 5
TOTAL $ 20765000 TOTAL $ 20765000 $41530 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2985 $3075 $3167 $3262 $3360 $3460 $3564 $3671 $3781 $3895 $4012 $4132 $4256 $4384 $4515 $4651 $4790 $4934 $5082 $5234 $5391 3
OPERATING REVENUES
Rent (NNN) 1493000 1537000 1583000 1631000 1680000 1730000 1782000 1836000 1891000 1947000 2006000 2066000 2128000 2192000 2258000 2325000 2395000 2467000 2541000 2617000 2696000
Expense Reimbursements 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
Vacancy Allowance (197000) (152000) (104000) (107000) (110000) (113000) (116000) (119000) (123000) (126000) (129000) (133000) (137000) (141000) (144000) (148000) (153000) (157000) (161000) (166000) (170000)
Total Revenues 1774000 1873000 1976000 2031000 2088000 2145000 2205000 2266000 2328000 2392000 2459000 2528000 2597000 2670000 2745000 2820000 2898000 2980000 3063000 3148000 3236000
OPERATING EXPENSES
Operating Expenses 299000 305000 311000 317000 324000 330000 337000 343000 350000 357000 364000 372000 379000 387000 395000 402000 410000 419000 427000 436000 444000
Property Taxes 179000 183000 186000 190000 194000 198000 202000 206000 210000 214000 218000 223000 227000 232000 236000 241000 246000 251000 256000 261000 266000
Total Expenses 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
NET OPERATING INCOME 1296000 1385000 1479000 1524000 1570000 1617000 1666000 1717000 1768000 1821000 1877000 1933000 1991000 2051000 2114000 2177000 2242000 2310000 2380000 2451000 2526000
Annual Debt Service (500 25 -yr Amort) 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433
DSCR 170x 181x 193x 199x 205x 212x 218x 225x 231x 238x 246x 253x 260x 268x 277x 285x 293x 302x 311x 321x
Mortgage Balance $10672314 $10436133 $10187868 $9926901 $9652583 $9364230 $9061125 $8742512 $8407599 $8055550 $7685490 $7296497 $6887603 $6457788 $6005984 $5531064 $5031847 $4507088 $3955482 $3375655
BEFORE TAX CASH FLOW 531567 620567 714567 759567 805567 852567 901567 952567 1003567 1056567 1112567 1168567 1226567 1286567 1349567 1412567 1477567 1545567 1615567 1686567
REVERSION CALCULATIONS
Project NOI (Year 21) 2526000
Cap Rate 800
Gross Sales Proceeds 31575000
Less Selling Costs 30 (947250)
Net Sales Proceeds 30627750
Less Mortgage Balance (3375655)
Net Reversion Proceeds 27252095
Gross Rental Rate $3942 $4050 $4160 $4276 $4396 $4516 $4642 $4770 $4902 $5036 $5176 $5322 $5468 $5622 $5778 $5936 $6102 $6274 $6448 $6628 $6812
Equity $ (5868000) 00 00 531567 620567 714567 759567 805567 852567 901567 952567 1003567 1056567 1112567 1168567 1226567 1286567 1349567 1412567 1477567 1545567 1615567 28938662
ROE 1421 IRR 91 106 122 129 137 145 154 162 171 180 190 199 209 219 230 241 252 263 275 287
ONE BIG SKY CENTER
Billings Montana
BIOSCIENCE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 7268000 Land Acquisition $ 1250000 $2500 SF
Construction $ 7750000 $15500 SF
Debt Financing $ 13497000 FFampE $ 1250000 $2500 SF
Development $ 3563000 25
Financing $ 773000 65 Loan to Project Costs
TI Allowances $ 5250000 $10500 SF
Contingency $ 929000 5
TOTAL $ 20765000 TOTAL $ 20765000 $41530 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3700 $3811 $3925 $4043 $4164 $4289 $4418 $4551 $4687 $4828 $4972 $5122 $5275 $5434 $5597 $5764 $5937 $6116 $6299 $6488 $6683 3
OPERATING REVENUES
Rent (NNN) 1850000 1906000 1963000 2022000 2082000 2145000 2209000 2275000 2344000 2414000 2486000 2561000 2638000 2717000 2798000 2882000 2969000 3058000 3150000 3244000 3341000
Expense Reimbursements 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
Vacancy Allowance (233000) (180000) (123000) (126000) (130000) (134000) (137000) (141000) (145000) (149000) (153000) (158000) (162000) (167000) (171000) (176000) (181000) (186000) (192000) (197000) (203000)
Total Revenues 2095000 2214000 2337000 2403000 2470000 2539000 2611000 2683000 2759000 2836000 2915000 2998000 3082000 3169000 3258000 3349000 3444000 3542000 3641000 3744000 3848000
OPERATING EXPENSES
Operating Expenses 299000 305000 311000 317000 324000 330000 337000 343000 350000 357000 364000 372000 379000 387000 395000 402000 410000 419000 427000 436000 444000
Property Taxes 179000 183000 186000 190000 194000 198000 202000 206000 210000 214000 218000 223000 227000 232000 236000 241000 246000 251000 256000 261000 266000
Total Expenses 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
NET OPERATING INCOME 1617000 1726000 1840000 1896000 1952000 2011000 2072000 2134000 2199000 2265000 2333000 2403000 2476000 2550000 2627000 2706000 2788000 2872000 2958000 3047000 3138000
Annual Debt Service (500 25 -yr Amort) 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825
DSCR 171x 182x 194x 200x 206x 212x 219x 225x 232x 239x 246x 254x 262x 269x 277x 286x 294x 303x 312x 322x
Mortgage Balance $13218704 $12926171 $12618670 $12295438 $11955668 $11598515 $11223089 $10828456 $10413633 $9977586 $9519231 $9037425 $8530969 $7998602 $7438998 $6850764 $6232434 $5582470 $4899252 $4181079
BEFORE TAX CASH FLOW 670175 779175 893175 949175 1005175 1064175 1125175 1187175 1252175 1318175 1386175 1456175 1529175 1603175 1680175 1759175 1841175 1925175 2011175 2100175
REVERSION CALCULATIONS
Project NOI (Year 21) 3138000
Cap Rate 800
Gross Sales Proceeds 39225000
Less Selling Costs 30 (1176750)
Net Sales Proceeds 38048250
Less Mortgage Balance (4181079)
Net Reversion Proceeds 33867171
Gross Rental Rate $4656 $4788 $4920 $5058 $5200 $5346 $5496 $5648 $5808 $5970 $6136 $6312 $6488 $6672 $6858 $7050 $7250 $7456 $7666 $7882 $8102
Equity $ (7268000) 00 00 670175 779175 893175 949175 1005175 1064175 1125175 1187175 1252175 1318175 1386175 1456175 1529175 1603175 1680175 1759175 1841175 1925175 2011175 35967346
ROE 1427 IRR 92 107 123 131 138 146 155 163 172 181 191 200 210 221 231 242 253 265 277 289
ONE BIG SKY CENTER
Billings Montana
COMMERCIAL OFFICE - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 48554000 Land Acquisition $ 11900000 $3400 SF
Construction $ 68250000 $19500 SF
Debt Financing $ 90173000 Development $ 17063000 25
Financing $ 5025000 65 Loan to Project Costs
TI Allowances $ 30450000 $8700 SF
Contingency $ 6039000 5
TOTAL $ 138727000 TOTAL $ 138727000 $39636 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3570 $3677 $3787 $3901 $4018 $4139 $4263 $4391 $4522 $4658 $4798 $4942 $5090 $5243 $5400 $5562 3
OPERATING REVENUES
Office Rent (NNN) 12495000 12870000 13256000 13654000 14063000 14485000 14920000 15367000 15828000 16303000 16792000 17296000 17815000 18349000 18900000 19467000
Expense Reimbursements 5897000 6015000 6136000 6258000 6383000 6511000 6641000 6774000 6909000 7048000 7188000 7332000 7479000 7628000 7781000 7937000
Vacancy Allowance (1839000) (1416000) (970000) (996000) (1022000) (1050000) (1078000) (1107000) (1137000) (1168000) (1199000) (1231000) (1265000) (1299000) (1334000) (1370000)
Total Revenues 16553000 17469000 18422000 18916000 19424000 19946000 20483000 21034000 21600000 22183000 22781000 23397000 24029000 24678000 25347000 26034000
OPERATING EXPENSES
Operating Expenses 4493000 4583000 4675000 4768000 4863000 4961000 5060000 5161000 5264000 5370000 5477000 5586000 5698000 5812000 5928000 6047000
Property Taxes 1404000 1432000 1461000 1490000 1520000 1550000 1581000 1613000 1645000 1678000 1711000 1746000 1781000 1816000 1853000 1890000
Total Expenses 5897000 6015000 6136000 6258000 6383000 6511000 6641000 6774000 6909000 7048000 7188000 7332000 7479000 7628000 7781000 7937000
NET OPERATING INCOME 10656000 11454000 12286000 12658000 13041000 13435000 13842000 14260000 14691000 15135000 15593000 16065000 16550000 17050000 17566000 18097000
Annual Debt Service (500 25 -yr Amort) 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709
DSCR 168x 181x 194x 200x 206x 212x 219x 225x 232x 239x 247x 254x 262x 270x 278x
Mortgage Balance $88313717 $86359309 $84304910 $82145404 $79875414 $77489287 $74981080 $72344550 $69573129 $66659917 $63597660 $60378732 $56995118 $53438391 $49699695
BEFORE TAX CASH FLOW 4330291 5128291 5960291 6332291 6715291 7109291 7516291 7934291 8365291 8809291 9267291 9739291 10224291 10724291 11240291
REVERSION CALCULATIONS
Project NOI (Year 16) 18097000
Cap Rate 800
Gross Sales Proceeds 226212500
Less Selling Costs 30 (6786375)
Net Sales Proceeds 219426125
Less Mortgage Balance (49699695)
Net Reversion Proceeds 169726430
Gross Rental Rate $5255 $5396 $5541 $5689 $5842 $5999 $6160 $6326 $6496 $6672 $6851 $7037 $7227 $7422 $7623 $7830
Equity $ (48554000) 00 00 4330291 5128291 5960291 6332291 6715291 7109291 7516291 7934291 8365291 8809291 9267291 9739291 10224291 10724291 180966721
ROE 1446 IRR 89 106 123 130 138 146 155 163 172 181 191 201 211 221 232
ONE BIG SKY CENTER
Billings Montana
COMMERCIAL OFFICE - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 11276000 Land Acquisition $ 3750000 $2500 SF
Construction $ 21750000 $14500 SF
Debt Financing $ 20942000 Development $ 5438000 25
Financing $ 1603000 65 Loan to Project Costs
Public Investment $ 12000000 TI Allowances $ 9750000 $6500 SF
Contingency $ 1927000 5
TOTAL $ 44218000 TOTAL $ 44218000 $29479 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $1940 $1998 $2058 $2120 $2183 $2249 $2316 $2386 $2458 $2531 $2607 $2685 $2766 $2849 $2934 $3022 $3113 $3207 $3303 $3402 $3504 3
OPERATING REVENUES
Office Rent (NNN) 2910000 2997000 3087000 3180000 3275000 3373000 3475000 3579000 3686000 3797000 3911000 4028000 4149000 4273000 4402000 4534000 4670000 4810000 4954000 5103000 5256000
Expense Reimbursements 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
Vacancy Allowance (439000) (338000) (231000) (237000) (244000) (250000) (257000) (264000) (271000) (278000) (286000) (293000) (301000) (309000) (318000) (326000) (335000) (344000) (353000) (363000) (373000)
Total Revenues 3949000 4167000 4394000 4511000 4631000 4755000 4883000 5013000 5147000 5285000 5427000 5573000 5722000 5876000 6034000 6197000 6364000 6535000 6712000 6894000 7080000
OPERATING EXPENSES
Operating Expenses 1030000 1051000 1072000 1093000 1115000 1137000 1160000 1183000 1207000 1231000 1256000 1281000 1306000 1332000 1359000 1386000 1414000 1442000 1471000 1501000 1531000
Property Taxes 448000 457000 466000 475000 485000 495000 505000 515000 525000 535000 546000 557000 568000 580000 591000 603000 615000 627000 640000 653000 666000
Total Expenses 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
NET OPERATING INCOME 2471000 2659000 2856000 2943000 3031000 3123000 3218000 3315000 3415000 3519000 3625000 3735000 3848000 3964000 4084000 4208000 4335000 4466000 4601000 4740000 4883000
Annual Debt Service (500 25 -yr Amort) 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098
DSCR 168x 181x 194x 200x 206x 213x 219x 226x 232x 240x 247x 254x 262x 270x 278x 286x 295x 304x 313x 323x
Mortgage Balance $20510195 $20056299 $19579180 $19077651 $18550463 $17996303 $17413791 $16801477 $16157835 $15481264 $14770078 $14022506 $13236687 $12410664 $11542380 $10629673 $9670270 $8661783 $7601699 $6487379
BEFORE TAX CASH FLOW 1001902 1189902 1386902 1473902 1561902 1653902 1748902 1845902 1945902 2049902 2155902 2265902 2378902 2494902 2614902 2738902 2865902 2996902 3131902 3270902
REVERSION CALCULATIONS
Project NOI (Year 21) 4883000
Cap Rate 800
Gross Sales Proceeds 61037500
Less Selling Costs 30 (1831125)
Net Sales Proceeds 59206375
Less Mortgage Balance (6487379)
Net Reversion Proceeds 52718996
Gross Rental Rate $2925 $3003 $3083 $3165 $3250 $3337 $3427 $3518 $3612 $3709 $3809 $3911 $4015 $4123 $4235 $4349 $4466 $4586 $4710 $4838 $4969
Equity $ (11276000) 00 00 1001902 1189902 1386902 1473902 1561902 1653902 1748902 1845902 1945902 2049902 2155902 2265902 2378902 2494902 2614902 2738902 2865902 2996902 3131902 55989898
ROE 1426 IRR 89 106 123 131 139 147 155 164 173 182 191 201 211 221 232 243 254 266 278 290
ONE BIG SKY CENTER
Billings Montana
COMMERCIAL OFFICE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 15476000 Land Acquisition $ 3750000 $2500 SF
Construction $ 21750000 $14500 SF
Debt Financing $ 28742000 Development $ 5438000 25
Financing $ 1603000 65 Loan to Project Costs
TI Allowances $ 9750000 $6500 SF
Contingency $ 1927000 5
TOTAL $ 44218000 TOTAL $ 44218000 $29479 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2655 $2735 $2817 $2901 $2988 $3078 $3170 $3265 $3363 $3464 $3568 $3675 $3785 $3899 $4016 $4136 $4260 $4388 $4520 $4656 $4795 3
OPERATING REVENUES
Office Rent (NNN) 3983000 4102000 4225000 4352000 4482000 4617000 4755000 4898000 5045000 5196000 5352000 5513000 5678000 5848000 6024000 6205000 6391000 6582000 6780000 6983000 7193000
Expense Reimbursements 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
Vacancy Allowance (546000) (421000) (288000) (296000) (304000) (312000) (321000) (330000) (339000) (348000) (358000) (368000) (378000) (388000) (399000) (410000) (421000) (433000) (445000) (457000) (470000)
Total Revenues 4915000 5189000 5475000 5624000 5778000 5937000 6099000 6266000 6438000 6614000 6796000 6983000 7174000 7372000 7575000 7784000 7999000 8218000 8446000 8680000 8920000
OPERATING EXPENSES
Operating Expenses 1030000 1051000 1072000 1093000 1115000 1137000 1160000 1183000 1207000 1231000 1256000 1281000 1306000 1332000 1359000 1386000 1414000 1442000 1471000 1501000 1531000
Property Taxes 448000 457000 466000 475000 485000 495000 505000 515000 525000 535000 546000 557000 568000 580000 591000 603000 615000 627000 640000 653000 666000
Total Expenses 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
NET OPERATING INCOME 3437000 3681000 3937000 4056000 4178000 4305000 4434000 4568000 4706000 4848000 4994000 5145000 5300000 5460000 5625000 5795000 5970000 6149000 6335000 6526000 6723000
Annual Debt Service (500 25 -yr Amort) 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274
DSCR 170x 183x 195x 201x 207x 214x 220x 227x 233x 240x 248x 255x 263x 271x 279x 287x 296x 305x 314x 324x
Mortgage Balance $28149367 $27526413 $26871588 $26183261 $25459718 $24699157 $23899684 $23059309 $22175938 $21247373 $20271300 $19245290 $18166787 $17033106 $15841423 $14588772 $13272032 $11887926 $10433007 $8903651
BEFORE TAX CASH FLOW 1420726 1664726 1920726 2039726 2161726 2288726 2417726 2551726 2689726 2831726 2977726 3128726 3283726 3443726 3608726 3778726 3953726 4132726 4318726 4509726
REVERSION CALCULATIONS
Project NOI (Year 21) 6723000
Cap Rate 800
Gross Sales Proceeds 84037500
Less Selling Costs 30 (2521125)
Net Sales Proceeds 81516375
Less Mortgage Balance (8903651)
Net Reversion Proceeds 72612724
Gross Rental Rate $3641 $3740 $3842 $3947 $4055 $4166 $4280 $4397 $4518 $4641 $4769 $4901 $5035 $5173 $5316 $5463 $5613 $5767 $5927 $6091 $6260
Equity $ (15476000) 00 00 1420726 1664726 1920726 2039726 2161726 2288726 2417726 2551726 2689726 2831726 2977726 3128726 3283726 3443726 3608726 3778726 3953726 4132726 4318726 77122450
ROE 1434 IRR 92 108 124 132 140 148 156 165 174 183 192 202 212 223 233 244 255 267 279 291
ONE BIG SKY CENTER
Billings Montana
RETAIL DINING ENTERTAINMENT - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 33347000 Land Acquisition $ 9000000 $4000 SF
Construction $ 43875000 $19500 SF
Debt Financing $ 61929000 Development $ 8775000 20
Financing $ 3418000 65 Loan to Project Costs
TI Allowances $ 26100000 $11600 SF
Contingency $ 4108000 5
TOTAL $ 95276000 TOTAL $ 95276000 $42345 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Projected Sales per Square Foot $48000 $49440 $50923 $52451 $54024 $55645 $57315 $59034 $60805 $62629 $64508 $66443 $68437 $70490 $72604 $74782 3
Leasable Program 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3840 $3955 $4074 $4196 $4322 $4452 $4585 $4723 $4864 $5010 $5161 $5315 $5475 $5639 $5808 $5983 8 NNN Rent vs Tenant Sales
OPERATING REVENUES
Retail Rent (NNN) 8640000 8899000 9167000 9441000 9725000 10017000 10316000 10627000 10944000 11273000 11612000 11959000 12319000 12688000 13068000 13462000
Expense Reimbursements 3971000 4051000 4132000 4214000 4298000 4385000 4472000 4561000 4653000 4745000 4840000 4938000 5037000 5137000 5240000 5345000
Vacancy Allowance (1261000) (971000) (665000) (683000) (701000) (720000) (739000) (759000) (780000) (801000) (823000) (845000) (868000) (891000) (915000) (940000)
Total Revenues 11350000 11979000 12634000 12972000 13322000 13682000 14049000 14429000 14817000 15217000 15629000 16052000 16488000 16934000 17393000 17867000
OPERATING EXPENSES
Operating Expenses 2888000 2946000 3005000 3065000 3126000 3189000 3252000 3317000 3384000 3451000 3520000 3591000 3663000 3736000 3811000 3887000
Property Taxes 1083000 1105000 1127000 1149000 1172000 1196000 1220000 1244000 1269000 1294000 1320000 1347000 1374000 1401000 1429000 1458000
Total Expenses 3971000 4051000 4132000 4214000 4298000 4385000 4472000 4561000 4653000 4745000 4840000 4938000 5037000 5137000 5240000 5345000
NET OPERATING INCOME 7379000 7928000 8502000 8758000 9024000 9297000 9577000 9868000 10164000 10472000 10789000 11114000 11451000 11797000 12153000 12522000
Annual Debt Service (500 25 -yr Amort) 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369
DSCR 170x 182x 196x 202x 208x 214x 220x 227x 234x 241x 248x 256x 264x 272x 280x
Mortgage Balance $60652082 $59309834 $57898914 $56415809 $54856825 $53218081 $51495496 $49684779 $47781424 $45780688 $43677592 $41466897 $39143099 $36700410 $34132750
BEFORE TAX CASH FLOW 3034631 3583631 4157631 4413631 4679631 4952631 5232631 5523631 5819631 6127631 6444631 6769631 7106631 7452631 7808631
REVERSION CALCULATIONS
Project NOI (Year 21) 12522000
Cap Rate 800
Gross Sales Proceeds 156525000
Less Selling Costs 30 (4695750)
Net Sales Proceeds 151829250
Less Mortgage Balance (34132750)
Net Reversion Proceeds 117696500
Gross Rental Rate $5605 $5756 $5911 $6069 $6232 $6401 $6572 $6750 $6932 $7119 $7312 $7510 $7714 $7922 $8137 $8359
Equity $ (33347000) 00 00 3034631 3583631 4157631 4413631 4679631 4952631 5232631 5523631 5819631 6127631 6444631 6769631 7106631 7452631 125505131
ROE 1458 IRR 91 107 125 132 140 149 157 166 175 184 193 203 213 223 234
ONE BIG SKY CENTER
Billings Montana
RETAIL DINING ENTERTAINMENT - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 10981000 Land Acquisition $ 3000000 $3000 SF
Construction $ 14500000 $14500 SF
Debt Financing $ 20394000 Development $ 2900000 20
Financing $ 1124000 65 Loan to Project Costs
TI Allowances $ 8500000 $8500 SF
Contingency $ 1351000 5
TOTAL $ 31375000 TOTAL $ 31375000 $31375 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Projected Sales per Square Foot $36000 $37080 $38192 $39338 $40518 $41734 $42986 $44275 $45604 $46972 $48381 $49832 $51327 $52867 $54453 $56087 $57769 $59503 $61288 $63126 $65020 3
Leasable Program 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2880 $2966 $3055 $3147 $3241 $3339 $3439 $3542 $3648 $3758 $3870 $3987 $4106 $4229 $4356 $4487 $4622 $4760 $4903 $5050 $5202 8 NNN Rent vs Tenant Sales
OPERATING REVENUES
Retail Rent (NNN) 2880000 2966000 3055000 3147000 3241000 3339000 3439000 3542000 3648000 3758000 3870000 3987000 4106000 4229000 4356000 4487000 4622000 4760000 4903000 5050000 5202000
Expense Reimbursements 776000 791000 807000 824000 840000 857000 874000 891000 909000 928000 946000 965000 984000 1004000 1024000 1045000 1065000 1086000 1108000 1131000 1153000
Vacancy Allowance (366000) (282000) (193000) (199000) (204000) (210000) (216000) (222000) (228000) (234000) (241000) (248000) (255000) (262000) (269000) (277000) (284000) (292000) (301000) (309000) (318000)
Total Revenues 3290000 3475000 3669000 3772000 3877000 3986000 4097000 4211000 4329000 4452000 4575000 4704000 4835000 4971000 5111000 5255000 5403000 5554000 5710000 5872000 6037000
OPERATING EXPENSES
Operating Expenses 418000 426000 435000 444000 452000 462000 471000 480000 490000 500000 510000 520000 530000 541000 552000 563000 574000 585000 597000 609000 621000
Property Taxes 358000 365000 372000 380000 388000 395000 403000 411000 419000 428000 436000 445000 454000 463000 472000 482000 491000 501000 511000 522000 532000
Total Expenses 776000 791000 807000 824000 840000 857000 874000 891000 909000 928000 946000 965000 984000 1004000 1024000 1045000 1065000 1086000 1108000 1131000 1153000
NET OPERATING INCOME 2514000 2684000 2862000 2948000 3037000 3129000 3223000 3320000 3420000 3524000 3629000 3739000 3851000 3967000 4087000 4210000 4338000 4468000 4602000 4741000 4884000
Annual Debt Service (500 25 -yr Amort) 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656
DSCR 176x 188x 200x 206x 212x 219x 225x 232x 239x 246x 254x 261x 269x 277x 286x 294x 303x 312x 322x 331x
Mortgage Balance $19973495 $19531476 $19066842 $18578437 $18065044 $17525385 $16958116 $16361824 $15735025 $15076158 $14383581 $13655572 $12890316 $12085908 $11240344 $10351521 $9417223 $8435125 $7402781 $6317621
BEFORE TAX CASH FLOW 1083344 1253344 1431344 1517344 1606344 1698344 1792344 1889344 1989344 2093344 2198344 2308344 2420344 2536344 2656344 2779344 2907344 3037344 3171344 3310344
REVERSION CALCULATIONS
Project NOI (Year 21) 4884000
Cap Rate 800
Gross Sales Proceeds 61050000
Less Selling Costs 30 (1831500)
Net Sales Proceeds 59218500
Less Mortgage Balance (6317621)
Net Reversion Proceeds 52900879
Gross Rental Rate $3656 $3757 $3862 $3971 $4081 $4196 $4313 $4433 $4557 $4686 $4816 $4952 $5090 $5233 $5380 $5532 $5687 $5846 $6011 $6181 $6355
Equity $ (10981000) 00 00 1083344 1253344 1431344 1517344 1606344 1698344 1792344 1889344 1989344 2093344 2198344 2308344 2420344 2536344 2656344 2779344 2907344 3037344 3171344 56211224
ROE 1471 IRR 99 114 130 138 146 155 163 172 181 191 200 210 220 231 242 253 265 277 289 301
ONE BIG SKY CENTER
Billings Montana
HOTEL - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 39286000 Land Acquisition $ 12000000 $40000 KEY
Construction $ 64500000 $215000 KEY
Debt Financing $ 72960000 FFampE $ 8700000 $29000 KEY
Development $ 18300000 25
Financing $ 3972000 65 Loan to Project Costs
Contingency $ 4774000 5
TOTAL $ 112246000 TOTAL $ 112246000 $374153 KEY
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Number of Rooms 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Daily Rate (ADR) $29700 $30403 $30930 $31858 $32814 $33798 $34812 $35857 $36932 $38040 $39181 $40357 $41568 $42815 $44099 $45422 30
Occupancy Rate 680 720 750 750 750 750 750 750 750 750 750 750 750 750 750 750
OPERATING REVENUES
Rooms Revenue 22115000 23970000 25401000 26163000 26948000 27757000 28590000 29447000 30331000 31241000 32178000 33143000 34137000 35161000 36216000 37303000 639
FampB Revenue 11144000 12079000 12800000 13184000 13579000 13987000 14407000 14839000 15284000 15743000 16215000 16701000 17202000 17718000 18250000 18797000 322
Other Revenue 1350000 1463000 1550000 1597000 1645000 1694000 1745000 1797000 1851000 1907000 1964000 2023000 2083000 2146000 2210000 2277000 39
Total Revenues 34609000 37512000 39751000 40944000 42172000 43438000 44742000 46083000 47466000 48891000 50357000 51867000 53422000 55025000 56676000 58377000
OPERATING EXPENSES Rooms FampB Other
Departmental Expenses 13292000 14406000 15266000 15725000 16196000 16682000 17183000 17698000 18229000 18777000 19340000 19919000 20516000 21132000 21766000 22419000 213 700 586 384
Undistributed Expenses 8998000 9753000 10335000 10645000 10965000 11294000 11633000 11982000 12341000 12712000 13093000 13485000 13890000 14307000 14736000 15178000 260
Management Fee 1038000 1125000 1193000 1228000 1265000 1303000 1342000 1382000 1424000 1467000 1511000 1556000 1603000 1651000 1700000 1751000 30
Insurance 346000 375000 398000 409000 422000 434000 447000 461000 475000 489000 504000 519000 534000 550000 567000 584000 10
Property Taxes 1281000 1388000 1471000 1515000 1560000 1607000 1655000 1705000 1756000 1809000 1863000 1919000 1977000 2036000 2097000 2160000 37
CAPEX Reserve 346000 750000 1193000 1228000 1265000 1303000 1342000 1382000 1424000 1467000 1511000 1556000 1603000 1651000 1700000 1751000
Total Expenses 25301000 27797000 29856000 30750000 31673000 32623000 33602000 34610000 35649000 36721000 37822000 38954000 40123000 41327000 42566000 43843000
NET OPERATING INCOME 9308000 9715000 9895000 10194000 10499000 10815000 11140000 11473000 11817000 12170000 12535000 12913000 13299000 13698000 14110000 14534000
Annual Debt Service (500 25 -yr Amort) 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203
DSCR 182x 190x 193x 199x 205x 211x 218x 224x 231x 238x 245x 252x 260x 268x 276x
Mortgage Balance $71455633 $69874299 $68212062 $66464781 $64628106 $62697463 $60668045 $58534798 $56292410 $53935297 $51457590 $48853119 $46115398 $43237610 $40212589
BEFORE TAX CASH FLOW 4189797 4596797 4776797 5075797 5380797 5696797 6021797 6354797 6698797 7051797 7416797 7794797 8180797 8579797 8991797
REVERSION CALCULATIONS
Project NOI (Year 16) 14534000
Cap Rate 800
Gross Sales Proceeds 181675000
Less Selling Costs 30 (5450250)
Net Sales Proceeds 176224750
Less Mortgage Balance (40212589)
Net Reversion Proceeds 136012161
NOI Margin 269 259 249 249 249 249 249 249 249 249 249 249 249 249 249 249
Equity $ (39286000) 00 00 4189797 4596797 4776797 5075797 5380797 5696797 6021797 6354797 6698797 7051797 7416797 7794797 8180797 8579797 145003959
ROE 1455 IRR 107 117 122 129 137 145 153 162 171 179 189 198 208 218 229
ONE BIG SKY CENTER
Billings Montana
HOTEL - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 15855000 Land Acquisition $ 6000000 $30000 KEY
Construction $ 32000000 $160000 KEY
Debt Financing $ 29446000 FFampE $ 4000000 $20000 KEY
Development $ 9000000 25
Public Investment $ 10000000 Financing $ 1953000 65 Loan to Project Costs
Contingency $ 2348000 5
TOTAL $ 55301000 TOTAL $ 55301000 $276505 KEY
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Rooms 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200
Average Daily Rate (ADR) $17900 $18324 $18641 $19201 $19777 $20370 $20981 $21611 $22259 $22927 $23614 $24323 $25053 $25804 $26578 $27376 $28197 $29043 $29914 $30811 $31736 30
Occupancy Rate 680 720 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750
OPERATING REVENUES
Rooms Revenue 8886000 9631000 10206000 10512000 10828000 11153000 11487000 11832000 12187000 12552000 12929000 13317000 13716000 14128000 14552000 14988000 15438000 15901000 16378000 16869000 17375000 639
FampB Revenue 4478000 4853000 5143000 5297000 5456000 5620000 5788000 5962000 6141000 6325000 6515000 6711000 6912000 7119000 7333000 7553000 7779000 8013000 8253000 8500000 8755000 322
Other Revenue 542000 588000 623000 642000 661000 681000 701000 722000 744000 766000 789000 813000 837000 862000 888000 915000 942000 970000 1000000 1030000 1060000 39
Total Revenues 13906000 15072000 15972000 16451000 16945000 17454000 17976000 18516000 19072000 19643000 20233000 20841000 21465000 22109000 22773000 23456000 24159000 24884000 25631000 26399000 27190000
OPERATING EXPENSES Rooms FampB Other
Departmental Expenses 5341000 5788000 6134000 6318000 6508000 6703000 6903000 7111000 7325000 7544000 7770000 8004000 8244000 8491000 8746000 9008000 9278000 9557000 9844000 10138000 10442000 213 700 586 384
Undistributed Expenses 3616000 3919000 4153000 4277000 4406000 4538000 4674000 4814000 4959000 5107000 5261000 5419000 5581000 5748000 5921000 6099000 6281000 6470000 6664000 6864000 7069000 260
Management Fee 417000 452000 479000 494000 508000 524000 539000 555000 572000 589000 607000 625000 644000 663000 683000 704000 725000 747000 769000 792000 816000 30
Insurance 139000 151000 160000 165000 169000 175000 180000 185000 191000 196000 202000 208000 215000 221000 228000 235000 242000 249000 256000 264000 272000 10
Property Taxes 515000 558000 591000 609000 627000 646000 665000 685000 706000 727000 749000 771000 794000 818000 843000 868000 894000 921000 948000 977000 1006000 37
CAPEX Reserve 139000 301000 479000 494000 508000 524000 539000 555000 572000 589000 607000 625000 644000 663000 683000 704000 725000 747000 769000 792000 816000
Total Expenses 10167000 11169000 11996000 12357000 12726000 13110000 13500000 13905000 14325000 14752000 15196000 15652000 16122000 16604000 17104000 17618000 18145000 18691000 19250000 19827000 20421000
NET OPERATING INCOME 3739000 3903000 3976000 4094000 4219000 4344000 4476000 4611000 4747000 4891000 5037000 5189000 5343000 5505000 5669000 5838000 6014000 6193000 6381000 6572000 6769000
Annual Debt Service (500 25 -yr Amort) 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661
DSCR 181x 189x 192x 198x 204x 210x 217x 223x 230x 237x 244x 251x 259x 267x 274x 283x 291x 300x 309x 318x
Mortgage Balance $28838851 $28200639 $27529775 $26824588 $26083322 $25304132 $24485078 $23624118 $22719111 $21767801 $20767821 $19716680 $18611760 $17450311 $16229439 $14946106 $13597115 $12179106 $10688550 $9121735
BEFORE TAX CASH FLOW 1673339 1837339 1910339 2028339 2153339 2278339 2410339 2545339 2681339 2825339 2971339 3123339 3277339 3439339 3603339 3772339 3948339 4127339 4315339 4506339
REVERSION CALCULATIONS
Project NOI (Year 21) 6769000
Cap Rate 800
Gross Sales Proceeds 84612500
Less Selling Costs 30 (2538375)
Net Sales Proceeds 82074125
Less Mortgage Balance (9121735)
Net Reversion Proceeds 72952390
NOI Margin 269 259 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249
Equity $ (15855000) 00 00 1673339 1837339 1910339 2028339 2153339 2278339 2410339 2545339 2681339 2825339 2971339 3123339 3277339 3439339 3603339 3772339 3948339 4127339 4315339 77458730
ROE 1427 IRR 106 116 120 128 136 144 152 161 169 178 187 197 207 217 227 238 249 260 272 284
ONE BIG SKY CENTER
Billings Montana
HOTEL - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 19355000 Land Acquisition $ 6000000 $30000 KEY
Construction $ 32000000 $160000 KEY
Debt Financing $ 35946000 FFampE $ 4000000 $20000 KEY
Development $ 9000000 25
Financing $ 1953000 65 Loan to Project Costs
Contingency $ 2348000 5
TOTAL $ 55301000 TOTAL $ 55301000 $276505 KEY
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Rooms 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200
Average Daily Rate (ADR) $22100 $22623 $23015 $23706 $24417 $25150 $25904 $26681 $27482 $28306 $29155 $30030 $30931 $31859 $32814 $33799 $34813 $35857 $36933 $38041 $39182 30
Occupancy Rate 680 720 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750
OPERATING REVENUES
Rooms Revenue 10970000 11891000 12601000 12979000 13368000 13769000 14182000 14608000 15046000 15498000 15962000 16441000 16935000 17443000 17966000 18505000 19060000 19632000 20221000 20827000 21452000 639
FampB Revenue 5528000 5992000 6350000 6540000 6736000 6938000 7146000 7361000 7582000 7810000 8043000 8285000 8534000 8790000 9053000 9325000 9605000 9893000 10190000 10495000 10810000 322
Other Revenue 670000 726000 769000 792000 816000 840000 866000 892000 918000 946000 974000 1003000 1034000 1065000 1097000 1129000 1163000 1198000 1234000 1271000 1309000 39
Total Revenues 17168000 18609000 19720000 20311000 20920000 21547000 22194000 22861000 23546000 24254000 24979000 25729000 26503000 27298000 28116000 28959000 29828000 30723000 31645000 32593000 33571000
OPERATING EXPENSES Rooms FampB Other
Departmental Expenses 6593000 7147000 7573000 7800000 8034000 8275000 8523000 8780000 9043000 9315000 9593000 9881000 10179000 10484000 10798000 11122000 11455000 11799000 12153000 12517000 12893000 213 700 586 384
Undistributed Expenses 4464000 4838000 5127000 5281000 5439000 5602000 5770000 5944000 6122000 6306000 6495000 6690000 6891000 7097000 7310000 7529000 7755000 7988000 8228000 8474000 8728000 260
Management Fee 515000 558000 592000 609000 628000 646000 666000 686000 706000 728000 749000 772000 795000 819000 843000 869000 895000 922000 949000 978000 1007000 30
Insurance 172000 186000 197000 203000 209000 215000 222000 229000 235000 243000 250000 257000 265000 273000 281000 290000 298000 307000 316000 326000 336000 10
Property Taxes 635000 689000 730000 752000 774000 797000 821000 846000 871000 897000 924000 952000 981000 1010000 1040000 1071000 1104000 1137000 1171000 1206000 1242000 37
CAPEX Reserve 172000 372000 592000 609000 628000 646000 666000 686000 706000 728000 749000 772000 795000 819000 843000 869000 895000 922000 949000 978000 1007000
Total Expenses 12551000 13790000 14811000 15254000 15712000 16181000 16668000 17171000 17683000 18217000 18760000 19324000 19906000 20502000 21115000 21750000 22402000 23075000 23766000 24479000 25213000
NET OPERATING INCOME 4617000 4819000 4909000 5057000 5208000 5366000 5526000 5690000 5863000 6037000 6219000 6405000 6597000 6796000 7001000 7209000 7426000 7648000 7879000 8114000 8358000
Annual Debt Service (500 25 -yr Amort) 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641
DSCR 183x 191x 195x 201x 207x 213x 219x 226x 233x 239x 247x 254x 262x 270x 278x 286x 294x 303x 312x 322x
Mortgage Balance $35204827 $34425734 $33606781 $32745929 $31841035 $30889844 $29889988 $28838978 $27734196 $26572892 $25352173 $24069000 $22720177 $21302345 $19811975 $18245355 $16598583 $14867560 $13047974 $11135294
BEFORE TAX CASH FLOW 2095359 2297359 2387359 2535359 2686359 2844359 3004359 3168359 3341359 3515359 3697359 3883359 4075359 4274359 4479359 4687359 4904359 5126359 5357359 5592359
REVERSION CALCULATIONS
Project NOI (Year 21) 8358000
Cap Rate 800
Gross Sales Proceeds 104475000
Less Selling Costs 30 (3134250)
Net Sales Proceeds 101340750
Less Mortgage Balance (11135294)
Net Reversion Proceeds 90205456
NOI Margin 269 259 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249
Equity $ (19355000) 00 00 2095359 2297359 2387359 2535359 2686359 2844359 3004359 3168359 3341359 3515359 3697359 3883359 4075359 4274359 4479359 4687359 4904359 5126359 5357359 95797815
ROE 1444 IRR 108 119 123 131 139 147 155 164 173 182 191 201 211 221 231 242 253 265 277 289
ONE BIG SKY CENTER
Billings Montana
ECONOMIC amp FISCAL IMPACT ESTIMATES (HIGH)
PHASE 1 PHASE 2
Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M) Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M)
HOTEL 200 KEYS $ 197 Direct 160 Direct $ 59 Direct $ 02 Income 300 KEYS $ 398 Direct 240 Direct $ 119 Direct $ 05 Income
$ 58 Indirect 34 Indirect $ 17 Indirect $ 01 Corp $ 117 Indirect 50 Indirect $ 34 Indirect $ 02 Corp
$ 32 Induced 21 Induced $ 10 Induced $ 09 Lodging $ 65 Induced 31 Induced $ 21 Induced $ 18 Lodging
$ 288 Total 214 Total $ 86 Total $ 07 Property $ 580 Total 321 Total $ 174 Total $ 15 Property
$ 19 Total $ 39 Total
RETAIL DINING ENTERTAINMENT 100000 SF $ 363 Direct 496 Direct $ 145 Direct $ 04 Income 225000 SF $ 1088 Direct 1221 Direct $ 435 Direct $ 13 Income
$ 23 Indirect 17 Indirect $ 07 Indirect $ 01 Corp $ 69 Indirect 41 Indirect $ 21 Indirect $ 03 Corp
$ 27 Induced 25 Induced $ 11 Induced $ 04 Property $ 81 Induced 61 Induced $ 34 Induced $ 11 Property
$ 413 Total 537 Total $ 163 Total $ 09 Total $ 1239 Total 1323 Total $ 490 Total $ 28 Total
COMMERCIAL OFFICE 150000 SF $ 1259 Direct 600 Direct $ 357 Direct $ 15 Income 350000 SF $ 3947 Direct 1400 Direct $ 1119 Direct $ 46 Income
$ 304 Indirect 205 Indirect $ 95 Indirect $ 05 Corp $ 954 Indirect 479 Indirect $ 299 Indirect $ 15 Corp
$ 211 Induced 174 Induced $ 86 Induced $ 05 Property $ 662 Induced 405 Induced $ 270 Induced $ 15 Property
$ 1774 Total 979 Total $ 538 Total $ 24 Total $ 5563 Total 2284 Total $ 1688 Total $ 75 Total
BIOSCIENCE 50000 SF $ 301 Direct 167 Direct $ 137 Direct $ 05 Income 125000 SF $ 1010 Direct 417 Direct $ 459 Direct $ 16 Income
$ 35 Indirect 25 Indirect $ 13 Indirect $ 01 Corp $ 118 Indirect 62 Indirect $ 42 Indirect $ 04 Corp
$ 70 Induced 51 Induced $ 25 Induced $ 02 Property $ 236 Induced 128 Induced $ 85 Induced $ 06 Property
$ 406 Total 243 Total $ 175 Total $ 08 Total $ 1364 Total 607 Total $ 587 Total $ 26 Total
HEALTHCARE 250000 SF $ 1252 Direct 694 Direct $ 834 Direct $ 28 Income 600000 SF $ 4040 Direct 1667 Direct $ 2690 Direct $ 91 Income
$ 187 Indirect 134 Indirect $ 61 Indirect $ 05 Corp $ 604 Indirect 322 Indirect $ 198 Indirect $ 16 Corp
$ 404 Induced 309 Induced $ 154 Induced $ 09 Property $ 1303 Induced 742 Induced $ 495 Induced $ 30 Property
$ 1844 Total 1138 Total $ 1049 Total $ 43 Total $ 5947 Total 2731 Total $ 3383 Total $ 137 Total
RESIDENTIAL 300 DU $ 09 Property 300 DU $ 33 Property
SENIOR HOUSING 150 DU $ 04 Property 300 DU $ 11 Property
MIXED-USE INFILL DEVELOPMENT 100000 SF $ 240 Direct 179 Direct $ 77 Direct $ 03 Income 250000 SF $ 806 Direct 471 Direct $ 257 Direct $ 09 Income
Retail 20 $ 45 Indirect 31 Indirect $ 14 Indirect $ 01 Corp $ 152 Indirect 77 Indirect $ 47 Indirect $ 03 Corp
Office 20 $ 34 Induced 28 Induced $ 14 Induced $ 02 Property $ 112 Induced 71 Induced $ 46 Induced $ 10 Property
Residential 60 $ 319 Total 238 Total $ 104 Total $ 05 Total $ 1070 Total 620 Total $ 350 Total $ 23 Total
CONVENTION CENTER 150000 SF $ 147 Direct 119 Direct $ 44 Direct $ 02 Income
(Visitor Spending) $ 43 Indirect 25 Indirect $ 13 Indirect $ 01 Corp
$ 24 Induced 15 Induced $ 08 Induced $ 06 Lodging
$ 214 Total 160 Total $ 64 Total $ 08 Total
TOTAL ANNUAL $ 3759 Direct 2416 Direct $ 1652 Direct $ 59 Income $ 16341 Direct 8662 Direct $ 7299 Direct $ 259 Income
$ 696 Indirect 470 Indirect $ 220 Indirect $ 14 Corp $ 2950 Indirect 1664 Indirect $ 938 Indirect $ 62 Corp
$ 802 Induced 623 Induced $ 308 Induced $ 15 Lodging $ 3537 Induced 2276 Induced $ 1365 Induced $ 38 Lodging
$ 5257 Total 3509 Total $ 2180 Total $ 42 Property $ 22827 Total 12602 Total $ 9602 Total $ 188 Property
$ 130 Total $ 546 Total
AGGREGATE TOTAL (30 YEARS) $ 250126 $ 103729 $ 6170 $ 673652 $ 283016 $ 16156
340x 705x
Aggregate Effective Income Tax Rate 2697 Based on BEA Data
Effective Corporate Income Tax Rate 0270 MT DOR Collections BEA GDP
Lodging Tax 7 (4 Lodging Facility Use Tax + 3 Lodging Facility Sales Tax)
Escalation Assumption 30
ONE BIG SKY CENTER
Billings Montana
ECONOMIC amp FISCAL IMPACT ESTIMATES (LOW)
PHASE 1 PHASE 2
Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M) Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M)
HOTEL 200 KEYS $ 160 Direct 160 Direct $ 54 Direct $ 02 Income 300 KEYS $ 398 Direct 240 Direct $ 98 Direct $ 04 Income
$ 47 Indirect 34 Indirect $ 15 Indirect $ 01 Corp $ 117 Indirect 50 Indirect $ 28 Indirect $ 02 Corp
$ 26 Induced 21 Induced $ 09 Induced $ 07 Lodging $ 65 Induced 31 Induced $ 17 Induced $ 18 Lodging
$ 233 Total 214 Total $ 78 Total $ 06 Property $ 580 Total 321 Total $ 143 Total $ 15 Property
$ 16 Total $ 38 Total
RETAIL DINING ENTERTAINMENT 100000 SF $ 363 Direct 496 Direct $ 145 Direct $ 04 Income 225000 SF $ 1088 Direct 1221 Direct $ 435 Direct $ 13 Income
$ 23 Indirect 17 Indirect $ 07 Indirect $ 01 Corp $ 69 Indirect 41 Indirect $ 21 Indirect $ 03 Corp
$ 27 Induced 25 Induced $ 11 Induced $ 04 Property $ 81 Induced 61 Induced $ 34 Induced $ 11 Property
$ 413 Total 537 Total $ 163 Total $ 09 Total $ 1239 Total 1323 Total $ 490 Total $ 28 Total
COMMERCIAL OFFICE 150000 SF $ 1142 Direct 600 Direct $ 324 Direct $ 13 Income 350000 SF $ 3247 Direct 1400 Direct $ 920 Direct $ 37 Income
$ 276 Indirect 205 Indirect $ 87 Indirect $ 04 Corp $ 785 Indirect 479 Indirect $ 246 Indirect $ 12 Corp
$ 191 Induced 174 Induced $ 78 Induced $ 05 Property $ 545 Induced 405 Induced $ 222 Induced $ 15 Property
$ 1609 Total 979 Total $ 488 Total $ 22 Total $ 4577 Total 2284 Total $ 1389 Total $ 64 Total
BIOSCIENCE 50000 SF $ 273 Direct 167 Direct $ 124 Direct $ 04 Income 125000 SF $ 831 Direct 417 Direct $ 378 Direct $ 13 Income
$ 32 Indirect 25 Indirect $ 11 Indirect $ 01 Corp $ 97 Indirect 62 Indirect $ 35 Indirect $ 03 Corp
$ 64 Induced 51 Induced $ 23 Induced $ 02 Property $ 194 Induced 128 Induced $ 70 Induced $ 06 Property
$ 368 Total 243 Total $ 158 Total $ 07 Total $ 1122 Total 607 Total $ 483 Total $ 22 Total
HEALTHCARE 250000 SF $ 1136 Direct 694 Direct $ 756 Direct $ 26 Income 600000 SF $ 3324 Direct 1667 Direct $ 2213 Direct $ 75 Income
$ 170 Indirect 134 Indirect $ 56 Indirect $ 05 Corp $ 497 Indirect 322 Indirect $ 163 Indirect $ 13 Corp
$ 366 Induced 309 Induced $ 139 Induced $ 09 Property $ 1072 Induced 742 Induced $ 408 Induced $ 30 Property
$ 1672 Total 1138 Total $ 951 Total $ 39 Total $ 4893 Total 2731 Total $ 2783 Total $ 118 Total
RESIDENTIAL 300 DU $ 08 Property 300 DU $ 33 Property
SENIOR HOUSING 150 DU $ 03 Property 300 DU $ 11 Property
MIXED-USE INFILL DEVELOPMENT 100000 SF $ 225 Direct 179 Direct $ 72 Direct $ 03 Income 250000 SF $ 706 Direct 471 Direct $ 228 Direct $ 08 Income
Retail 20 $ 41 Indirect 31 Indirect $ 13 Indirect $ 01 Corp $ 128 Indirect 77 Indirect $ 40 Indirect $ 03 Corp
Office 20 $ 31 Induced 28 Induced $ 13 Induced $ 01 Property $ 96 Induced 71 Induced $ 39 Induced $ 10 Property
Residential 60 $ 297 Total 238 Total $ 98 Total $ 05 Total $ 929 Total 620 Total $ 307 Total $ 21 Total
CONVENTION CENTER 150000 SF $ 139 Direct 139 Direct $ 46 Direct $ 02 Income
(Visitor Spending) $ 41 Indirect 29 Indirect $ 13 Indirect $ 01 Corp
$ 23 Induced 18 Induced $ 08 Induced $ 06 Lodging
$ 202 Total 186 Total $ 68 Total $ 08 Total
TOTAL ANNUAL $ 3436 Direct 2435 Direct $ 1521 Direct $ 54 Income $ 13783 Direct 8384 Direct $ 6127 Direct $ 217 Income
$ 630 Indirect 474 Indirect $ 202 Indirect $ 13 Corp $ 2461 Indirect 1610 Indirect $ 780 Indirect $ 52 Corp
$ 728 Induced 626 Induced $ 282 Induced $ 13 Lodging $ 2940 Induced 2201 Induced $ 1133 Induced $ 33 Lodging
$ 4795 Total 3535 Total $ 2005 Total $ 38 Property $ 19183 Total 12195 Total $ 8040 Total $ 178 Property
$ 118 Total $ 480 Total
AGGREGATE TOTAL (30 YEARS) $ 194508 $ 81357 $ 4781 $ 518608 $ 217319 $ 12946
263x 565x
Aggregate Effective Income Tax Rate 2697 Based on BEA Data
Effective Corporate Income Tax Rate 0270 MT DOR Collections BEA GDP
Lodging Tax 7 (4 Lodging Facility Use Tax + 3 Lodging Facility Sales Tax)
Escalation Assumption 20
ONE BIG SKY CENTER
Billings Montana
ECONOMIC amp FISCAL IMPACTS
PHASE 1 FULL BUILDOUT
LOW HIGH LOW HIGH
PROGRAM 10 Million SF 10 Million SF 40 Million SF 50 Million SF
PRIVATE INVESTMENT $3270 Million $3520 Million $10 Billion $20 Billion
VISITATION 10 Million 10 Million 40 Million 40 Million
ECONOMIC OUTPUT 4794618805 (Annually) 5257467756 (Annually) 1918349973 (Annually) 2282740941 (Annually)
(Direct Indirect amp Induced)
EMPLOYMENT 3535 Jobs 3509 Jobs 12195 Jobs 12602 Jobs
(Direct Indirect amp Induced)
EARNINGS 2005455783 (Annually) 2180306006 (Annually) 804037145 (Annually) 9602425147 (Annually)
(Direct Indirect amp Induced)
FISCAL IMPACTS 117843492 (Annually) 1296944889 (Annually) 479704742 (Annually) 5459243472 (Annually)
4780684117 (30 years) 6170269226 (30 years) 1294591687 (30 years) 1615599362 (30 years)
ONE BIG SKY CENTER
Billings Montana
MASTER PROJECT BUDGET - PHASED
TOTAL PHASE 1 PHASE 2
USES OF FUNDS ($MM)
PRIVATE
Hotel $ 1675 $ 553 $ 1122
Retail Dining Entertainment $ 1267 $ 314 $ 953
Commerical Office $ 1829 $ 442 $ 1387
Bioscience $ 907 $ 208 $ 700
Healthcare $ 4860 $ 1015 $ 3846
Residential $ 2894 $ 633 $ 2261
Senior Housing $ 1069 $ 291 $ 778
Mixed-Use Renovation $ 792 $ 182 $ 611
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 322 $ 322 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
ONE BIG SKY CENTER
Billings Montana
USES OF FUNDS - PHASED
TOTAL PHASE 1 PHASE 2
USES OF FUNDS ($MM)
PRIVATE
Land $ 1013 $ 248 $ 765
Construction $ 7838 $ 1711 $ 6128
FFampE $ 726 $ 137 $ 589
Development $ 2175 $ 450 $ 1725
Financing $ 483 $ 101 $ 382
TI Allowances $ 2036 $ 485 $ 1551
Contingency $ 659 $ 140 $ 519
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 687 $ 687 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
ONE BIG SKY CENTER
Billings Montana
SOURCES amp USES - PHASED
TOTAL PHASE 1 PHASE 2
SOURCES OF FUNDS ($MM)
PRIVATE
Equity Investment $ 4370 $ 1023 $ 3347
Debt Financing $ 10560 $ 2249 $ 8311
PUBLIC
Public Investment $ 2292 $ 1817 $ 475
bull City
bull State
bull Federal
TOTAL $ 17222 $ 5089 $ 12133
USES OF FUNDS ($MM)
PRIVATE
Land $ 1013 $ 248 $ 765
Construction $ 7838 $ 1711 $ 6128
FFampE $ 726 $ 137 $ 589
Development $ 2175 $ 450 $ 1725
Financing $ 483 $ 101 $ 382
TI Allowances $ 2036 $ 485 $ 1551
Contingency $ 659 $ 140 $ 519
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 687 $ 687 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
PRIVATE 1493002000 327189000 1165813000
PUBLIC 229157000 181689000 47468000
ONE BIG SKY CENTER
Billings Montana
SOURCES amp USES - PHASED
TOTAL PHASE 1 PHASE 2
SOURCES OF FUNDS ($MM)
PRIVATE
Equity Investment $ 4370 $ 1023 $ 3347
Debt Financing $ 10560 $ 2249 $ 8311
PUBLIC
City Investment $ 602 $ 365 $ 237
State Investment $ 1689 $ 1452 $ 237
TOTAL $ 17222 $ 5089 $ 12133
USES OF FUNDS ($MM)
PRIVATE
Land $ 1047 $ 282 $ 765
Construction $ 8074 $ 1946 $ 6128
FFampE $ 726 $ 137 $ 589
Development $ 2237 $ 512 $ 1725
Financing $ 497 $ 115 $ 382
TI Allowances $ 2036 $ 485 $ 1551
Contingency $ 678 $ 160 $ 519
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 322 $ 322 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
PRIVATE 1493002000 327189000 1165813000
PUBLIC 229157000 181689000 47468000
ONE BIG SKY CENTER
Billings Montana
GAP ANALYSIS - PHASE 1
HOTEL RETAIL OFFICE BIOSCIENCE HEALTHCARE RESIDENTIAL SR HOUSING TOTAL
200 KEYS 100000 SF 150000 SF 50000 SF 250000 SF 300 DU 150 DU
MARKET CONDITIONS $15441 Night $2484 SF $1673 SF $2575 SF $35012 SF $1518 MO $1389 MO
(Current Dollars) Avg Daily Rate NNN Rental Rate NNN Rental Rate NNN Rental Rate Building Value Avg Rental Rate Avg Rental Rate
REQUIRED FOR DEVELOPMENT $19064 Night $2484 SF $2290 SF $3192 SF $35012 SF $1829 MO $1691 MO
(Current Dollars) Avg Daily Rate NNN Rental Rate NNN Rental Rate NNN Rental Rate Building Value Avg Rental Rate Avg Rental Rate
PROJECTED VALUE ($M) $ 453 $ 314 $ 322 $ 168 $ 1015 $ 561 $ 258 $ 3090
PROJECTED COST ($M) $ 553 $ 314 $ 442 $ 208 $ 1015 $ 633 $ 291 $ 3455
GAP ($M) ($ 100) $ - 0 ($ 120) ($ 40) $ - 0 ($ 72) ($ 33) ($ 365)
ONE BIG SKY CENTER
Billings Montana
PROGRAM amp PHASING
PHASE 1 PHASE 2 TOTAL
HOTEL 200 KEYS 300 KEYS 500 KEYS
160000 SF 240000 SF 400000 SF
RETAIL DINING ENTERTAINMENT 100000 SF 225000 SF 325000 SF
COMMERCIAL OFFICE 150000 SF 350000 SF 500000 SF
BIOSCIENCE 50000 SF 125000 SF 175000 SF
HEALTHCARE 250000 SF 600000 SF 850000 SF
Ambulatory Medical Wellness 75000 SF 400000 SF 475000 SF
Medical Office 175000 SF 200000 375000 SF
RESIDENTIAL 300 DU 800 DU 1100 DU
300000 SF 800000 SF 1100000 SF
SENIOR HOUSING 150 DU 300 DU 450 DU
105000 SF 210000 SF 315000 SF
MIXED-USE INFILL DEVELOPMENT 100000 SF 250000 SF 350000 SF
CONVENTION CENTER 100000 SF 50000 SF 150000 SF
CIVIC 80000 SF 50000 SF 130000 SF
PARKING STRUCTURE 1030 Stalls 827 Stalls 1857 Stalls Residential assumed to separately build and finance its own parking in Phase 2
TOTAL (NIC Parking) 1395000 SF 2900000 SF 4295000 SF
Page 4: PROGRAM & VISION STATEMENT · program & vision statement ONE Big Sky District is a large, mixed-use, multi-anchor program supporting broad development goals driving the long-term

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 55

PROGRAM amp VISION STATEMENT

A strong district development strategy can strengthen Billings as a destination city and enhance the economic climate ndash using health care and tourism as catalysts to anchor the transformation of Billings into the next generation

DISTRICT DEVELOPMENT PLAN

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 66

PROGRAM amp VISION STATEMENT

There are a number of key drivers that define the opportunity for major economic development generated from the ONE Big Sky District and certain constraints that must be understood and addressed including

KEY DRIVERSbull A dynamic economic development community energized to take actionbull Public-private partnerships (P3) are an emerging and proven national trendbull A stable economic base for the futurebull An opportunity to define an urban landscape which can support major economic developmentbull Lifestyle amenities and character in the community and region that can become the foundation to an authentic ldquoBillings and

Montana Experiencerdquobull Opportunities for important community anchors that can drive economic development

CONSTRAINTSbull An uncertain political climate and environment at the local and state levelsbull A massive and evolving jobs dilemma in Billingsbull Limited proven model for public finance in support of major economic developmentbull Lack of accurate information on the project circulating in the communitybull Without vision and an action plan Billings will have limited appeal with institutional capital investors

KEY DRIVERS CONSTRAINTS

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 77

PROGRAM amp VISION STATEMENT

Based on our preliminary market analysis the City of Billings has the potential to support a diverse program in the ONE Big Sky Center Development Districts of the magnitude as described below

While these forecasts are preliminary and based primarily on macro-level demand analysis the demographic strength economic base industry growth metrics combined with the regional trade area of Billings indicate that growth patterns will support a robust development program over a 15 to 20 year planning horizon

PROGRAM STATEMENT

Program

Gap Analysis - Phase 1

Sources amp Uses

SOURCES OF FUNDS

Phase 1

Phase 1

PRIVATEPUBLIC327189000181689000

SOURCES OF FUNDS

Full Buildout

Full Buildout

PRIVATEPUBLIC1493002000229157000

Sources amp Uses (Simplified)

SOURCES OF FUNDS

Phase 1

Phase 1

PRIVATEPUBLIC327189000181689000

SOURCES OF FUNDS

Full Buildout

Full Buildout

PRIVATEPUBLIC1493002000229157000

MPB by Uses

MPB by Component

Economic amp Fiscal Summary

Economic amp Fiscal Calcs LOW

Economic amp Fiscal Calcs HIGH

Hotel - Phase 1

Hotel - Phase 1 (Gap)

Hotel - Phase 2

Retail - Phase 1

Retail - Phase 2

Office - Phase 1

Office - Phase 1 (Gap)

Office - Phase 2

Bioscience - Phase 1

Bioscience - Phase 1 (Gap)

Bioscience - Phase 2

Health - Phase 1

Health - Phase 2

Medical Office - Phase 1

Medical Office - Phase 2

Residential - Phase 1

Residential - Phase 1 (Gap)

Residential - Phase 2

Senior Housing - Phase 1

Senior Housing - Phase 1 (Gap)

Senior Housing - Phase 2

Mixed-Use Infill - Phase 1

Mixed-Use Infill - Phase 2

Convention - Phase 1

Civic - Phase 1

Parking - Phase 1

Parking - Phase 2

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 88

PROGRAM amp VISION STATEMENT

Why the time is now for this project

- Billings needs a defined vision and plan that will drive our economic future

- Serious workforce challenges in that will only get worse in upcoming years

- Flat economic growth which will result in a growing tax burden on existing property owners

- Billings is in a regional competition ndash with communities around Billings making large investments in their amenities and infrastructure to attract the businesses and workforce of tomorrow

URGENT ISSUES REQUIRING ACTION

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ONE BIG SKY CENTER
Billings Montana
STRUCTURED PARKING - PHASE 2
USES OF FUNDS
Land Acquisition $ -
Construction $ 37200000 $45000 Stall
Development $ 5580000 15
Financing (500 Interest) $ 2428000 85 Loan to Project Costs
Contingency $ 2260000 5
TOTAL $ 47468000 $57425 Stall
Structured Parking Program 827 Stalls
ONE BIG SKY CENTER
Billings Montana
STRUCTURED PARKING - PHASE 1
USES OF FUNDS
Land Acquisition $ -
Construction $ 33990000 $33000 Stall
Development $ 5099000 15
Financing (500 Interest) $ 2219000 85 Loan to Project Costs
Contingency $ 2065000 5
TOTAL $ 43373000 $42110 Stall
Structured Parking Program 1030 Stalls
ONE BIG SKY CENTER
Billings Montana
CIVIC INFRASTRUCTURE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ - Land Acquisition $ - $000 SF
Construction $ 15040000 $18800 SF
Debt Financing $ 32150000 FFampE $ 8080000 $10100 SF
Development $ 5780000 25
Financing $ 1719000 100 Loan to Project Costs
Contingency $ 1531000 5
TOTAL $ 32150000 TOTAL $ 32150000 $40188 SF
Convention Center Program 80000 SF Escalation Rate 50
Year Completed 2022
Interest Rate 450
ONE BIG SKY CENTER
Billings Montana
CONVENTION CENTER - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ - Land Acquisition $ - $000 SF
Construction $ 36300000 $36300 SF
Debt Financing $ 69666000 FFampE $ 13800000 $13800 SF
Development $ 12525000 25
Financing $ 3724000 100 Loan to Project Costs
Contingency $ 3317000 5
TOTAL $ 69666000 TOTAL $ 69666000 $69666 SF
Convention Center Program 100000 SF Escalation Rate 50
Year Completed 2022
Interest Rate 450
ONE BIG SKY CENTER
Billings Montana
MIXED-USE INFILL DEVELOPMENT - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 21368000 Land Acquisition $ 11750000 $4700 SF
Construction $ 36000000 $14400 SF
Debt Financing $ 39683000 Development $ 9000000 25
Financing $ 1953000 65 Loan to Project Costs
Contingency $ 2348000 5
TOTAL $ 61051000 TOTAL $ 61051000 $24420 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2245 $2312 $2382 $2453 $2527 $2603 $2681 $2761 $2844 $2929 $3017 $3108 $3201 $3297 $3396 $3498 3
OPERATING REVENUES
Rent (NNN) 5613000 5781000 5954000 6133000 6317000 6506000 6702000 6903000 7110000 7323000 7543000 7769000 8002000 8242000 8489000 8744000
Expense Reimbursements 4212000 4296000 4383000 4469000 4560000 4650000 4744000 4838000 4935000 5034000 5135000 5237000 5342000 5448000 5557000 5669000
Vacancy Allowance (983000) (756000) (517000) (530000) (544000) (558000) (572000) (587000) (602000) (618000) (634000) (650000) (667000) (685000) (702000) (721000)
Total Revenues 8842000 9321000 9820000 10072000 10333000 10598000 10874000 11154000 11443000 11739000 12044000 12356000 12677000 13005000 13344000 13692000
OPERATING EXPENSES
Operating Expenses 3209000 3273000 3339000 3405000 3474000 3543000 3614000 3686000 3760000 3835000 3912000 3990000 4070000 4151000 4234000 4319000
Property Taxes 1003000 1023000 1044000 1064000 1086000 1107000 1130000 1152000 1175000 1199000 1223000 1247000 1272000 1297000 1323000 1350000
Total Expenses 4212000 4296000 4383000 4469000 4560000 4650000 4744000 4838000 4935000 5034000 5135000 5237000 5342000 5448000 5557000 5669000
NET OPERATING INCOME 4630000 5025000 5437000 5603000 5773000 5948000 6130000 6316000 6508000 6705000 6909000 7119000 7335000 7557000 7787000 8023000
Annual Debt Service (500 25 -yr Amort) 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794
DSCR 166x 181x 195x 201x 207x 214x 220x 227x 234x 241x 248x 256x 263x 271x 280x
Mortgage Balance $38864774 $38004685 $37100593 $36150245 $35151276 $34101198 $32997396 $31837122 $30617485 $29335450 $27987823 $26571249 $25082200 $23516969 $21871658
BEFORE TAX CASH FLOW 1846206 2241206 2653206 2819206 2989206 3164206 3346206 3532206 3724206 3921206 4125206 4335206 4551206 4773206 5003206
REVERSION CALCULATIONS
Project NOI (Year 16) 8023000
Cap Rate 800
Gross Sales Proceeds 100287500
Less Selling Costs 30 (3008625)
Net Sales Proceeds 97278875
Less Mortgage Balance (21871658)
Net Reversion Proceeds 75407217
Gross Rental Rate $3930 $4031 $4135 $4241 $4351 $4462 $4578 $4696 $4818 $4943 $5071 $5202 $5338 $5476 $5618 $5765
Equity $ (21368000) 00 00 1846206 2241206 2653206 2819206 2989206 3164206 3346206 3532206 3724206 3921206 4125206 4335206 4551206 4773206 80410423
ROE 1453 IRR 86 105 124 132 140 148 157 165 174 184 193 203 213 223 234
ONE BIG SKY CENTER
Billings Montana
MIXED-USE INFILL DEVELOPMENT - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 6354000 Land Acquisition $ 3500000 $3500 SF
Construction $ 10700000 $10700 SF
Debt Financing $ 11800000 Development $ 2675000 25
Financing $ 581000 65 Loan to Project Costs
Contingency $ 698000 5
TOTAL $ 18154000 TOTAL $ 18154000 $18154 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $1670 $1720 $1772 $1825 $1880 $1936 $1994 $2054 $2116 $2179 $2244 $2312 $2381 $2452 $2526 $2602 $2680 $2760 $2843 $2928 $3016 3
OPERATING REVENUES
Rent (NNN) 1670000 1720000 1772000 1825000 1880000 1936000 1994000 2054000 2116000 2179000 2244000 2312000 2381000 2452000 2526000 2602000 2680000 2760000 2843000 2928000 3016000
Expense Reimbursements 1254000 1279000 1305000 1330000 1358000 1384000 1412000 1440000 1469000 1498000 1528000 1559000 1590000 1622000 1655000 1687000 1721000 1756000 1791000 1827000 1863000
Vacancy Allowance (292000) (225000) (154000) (158000) (162000) (166000) (170000) (175000) (179000) (184000) (189000) (194000) (199000) (204000) (209000) (214000) (220000) (226000) (232000) (238000) (244000)
Total Revenues 2632000 2774000 2923000 2997000 3076000 3154000 3236000 3319000 3406000 3493000 3583000 3677000 3772000 3870000 3972000 4075000 4181000 4290000 4402000 4517000 4635000
OPERATING EXPENSES
Operating Expenses 955000 974000 994000 1013000 1034000 1054000 1075000 1097000 1119000 1141000 1164000 1187000 1211000 1235000 1260000 1285000 1311000 1337000 1364000 1391000 1419000
Property Taxes 299000 305000 311000 317000 324000 330000 337000 343000 350000 357000 364000 372000 379000 387000 395000 402000 410000 419000 427000 436000 444000
Total Expenses 1254000 1279000 1305000 1330000 1358000 1384000 1412000 1440000 1469000 1498000 1528000 1559000 1590000 1622000 1655000 1687000 1721000 1756000 1791000 1827000 1863000
NET OPERATING INCOME 1378000 1495000 1618000 1667000 1718000 1770000 1824000 1879000 1937000 1995000 2055000 2118000 2182000 2248000 2317000 2388000 2460000 2534000 2611000 2690000 2772000
Annual Debt Service (500 25 -yr Amort) 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779
DSCR 166x 181x 195x 201x 208x 214x 220x 227x 234x 241x 248x 256x 264x 272x 280x 288x 297x 306x 315x 325x
Mortgage Balance $11556695 $11300942 $11032104 $10749512 $10452462 $10140215 $9811992 $9466977 $9104310 $8723088 $8322362 $7901135 $7458357 $6992925 $6503681 $5989406 $5448820 $4880577 $4283261 $3655385
BEFORE TAX CASH FLOW 550221 667221 790221 839221 890221 942221 996221 1051221 1109221 1167221 1227221 1290221 1354221 1420221 1489221 1560221 1632221 1706221 1783221 1862221
REVERSION CALCULATIONS
Project NOI (Year 16) 2772000
Cap Rate 800
Gross Sales Proceeds 34650000
Less Selling Costs 30 (1039500)
Net Sales Proceeds 33610500
Less Mortgage Balance (3655385)
Net Reversion Proceeds 29955115
Gross Rental Rate $2924 $2999 $3077 $3155 $3238 $3320 $3406 $3494 $3585 $3677 $3772 $3871 $3971 $4074 $4181 $4289 $4401 $4516 $4634 $4755 $4879
Equity $ (6354000) 00 00 550221 667221 790221 839221 890221 942221 996221 1051221 1109221 1167221 1227221 1290221 1354221 1420221 1489221 1560221 1632221 1706221 1783221 31817335
ROE 1433 IRR 87 105 124 132 140 148 157 165 175 184 193 203 213 224 234 246 257 269 281 293
ONE BIG SKY CENTER
Billings Montana
SENIOR HOUSING - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 23350000 Land Acquisition $ 4800000 $16000 DU
Construction $ 54000000 $180000 DU
Debt Financing $ 54485000 FFampE $ 3000000 $10000 DU
Development $ 11400000 20
Financing $ 1157000 70 Loan to Project Costs
Contingency $ 3478000 5
TOTAL $ 77835000 TOTAL $ 77835000 $259450 DU
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Number of Units 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Monthly Rent $2620 $2699 $2780 $2863 $2949 $3037 $3128 $3222 $3319 $3419 $3521 $3627 $3735 $3848 $3963 $4082
Rental Rate per Square Foot $440 $453 $467 $481 $495 $510 $525 $541 $557 $574 $591 $609 $627 $646 $666 $686 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 9432000 9715000 10006000 10307000 10616000 10934000 11262000 11600000 11948000 12307000 12676000 13056000 13448000 13851000 14267000 14695000
Miscellaneous 189000 194000 200000 206000 212000 219000 225000 232000 239000 246000 254000 261000 269000 277000 285000 294000 2 of PGI
Vacancy Collections Losses (962000) (495000) (510000) (526000) (541000) (558000) (574000) (592000) (609000) (628000) (647000) (666000) (686000) (706000) (728000) (749000)
Effective Gross Income 8659000 9414000 9696000 9987000 10287000 10595000 10913000 11240000 11578000 11925000 12283000 12651000 13031000 13422000 13824000 14240000
OPERATING EXPENSES
Administrative 160000 165000 170000 175000 180000 185000 191000 197000 203000 209000 215000 221000 228000 235000 242000 249000 17 of PGI
Advertising 67000 69000 71000 73000 75000 77000 80000 82000 84000 87000 90000 92000 95000 98000 101000 104000 07 of PGI
Repairs amp Maintenance 266000 274000 283000 291000 300000 309000 318000 328000 338000 348000 358000 369000 380000 391000 403000 415000 28 of PGI
Utilities 400000 412000 424000 437000 450000 463000 477000 492000 506000 521000 537000 553000 570000 587000 605000 623000 42 of PGI
Payroll 480000 494000 509000 524000 540000 556000 573000 590000 608000 626000 645000 664000 684000 704000 725000 747000 50 of PGI
Insurance 187000 192000 198000 204000 210000 216000 223000 229000 236000 243000 251000 258000 266000 274000 282000 291000 19 of PGI
Property Taxes 1066000 1098000 1131000 1165000 1200000 1236000 1273000 1311000 1350000 1391000 1432000 1475000 1520000 1565000 1612000 1660000 111 of PGI
Management Fee 346000 377000 388000 399000 411000 424000 437000 450000 463000 477000 491000 506000 521000 537000 553000 570000 40 of EGI
Reserves 173000 188000 194000 200000 206000 212000 218000 225000 232000 239000 246000 253000 261000 268000 276000 285000 20 of EGI
Total Expenses 3145000 3269000 3368000 3468000 3572000 3678000 3790000 3904000 4020000 4141000 4265000 4391000 4525000 4659000 4799000 4944000
NET OPERATING INCOME 5514000 6145000 6328000 6519000 6715000 6917000 7123000 7336000 7558000 7784000 8018000 8260000 8506000 8763000 9025000 9296000
Annual Debt Service (500 25 -yr Amort) 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167
DSCR 144x 161x 166x 171x 176x 181x 186x 192x 198x 204x 210x 216x 223x 229x 236x
Mortgage Balance $53361570 $52180663 $50939339 $49634506 $48262916 $46821152 $45305625 $43712561 $42037993 $40277751 $38427451 $36482486 $34438013 $32288942 $30029919
BEFORE TAX CASH FLOW 1691833 2322833 2505833 2696833 2892833 3094833 3300833 3513833 3735833 3961833 4195833 4437833 4683833 4940833 5202833
REVERSION CALCULATIONS
Project NOI (Year 21) 9296000
Cap Rate 700
Gross Sales Proceeds 132800000
Less Selling Costs 30 (3984000)
Net Sales Proceeds 128816000
Less Mortgage Balance (30029919)
Net Reversion Proceeds 98786081
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (23350000) 00 00 1691833 2322833 2505833 2696833 2892833 3094833 3300833 3513833 3735833 3961833 4195833 4437833 4683833 4940833 103988914
ROE 1460 IRR 72 99 107 115 124 133 141 150 160 170 180 190 201 212 223
ONE BIG SKY CENTER
Billings Montana
SENIOR HOUSING - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 7738000 Land Acquisition $ 1800000 $12000 DU
Construction $ 20100000 $134000 DU
Debt Financing $ 18054000 FFampE $ 1200000 $8000 DU
Development $ 4260000 20
Public Investment $ 3300000 Financing $ 432000 70 Loan to Project Costs
Contingency $ 1300000 5
TOTAL $ 29092000 TOTAL $ 29092000 $193947 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Monthly Rent $1610 $1658 $1708 $1759 $1812 $1866 $1922 $1980 $2039 $2101 $2164 $2229 $2295 $2364 $2435 $2508 $2584 $2661 $2741 $2823 $2908
Rental Rate per Square Foot $270 $278 $286 $295 $304 $313 $322 $332 $342 $352 $363 $374 $385 $397 $408 $421 $433 $446 $460 $473 $488 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 2898000 2985000 3074000 3167000 3262000 3360000 3460000 3564000 3671000 3781000 3895000 4012000 4132000 4256000 4383000 4515000 4650000 4790000 4934000 5082000 5234000
Miscellaneous 58000 60000 61000 63000 65000 67000 69000 71000 73000 76000 78000 80000 83000 85000 88000 90000 93000 96000 99000 102000 105000 2 of PGI
Vacancy Collections Losses (296000) (152000) (157000) (162000) (166000) (171000) (176000) (182000) (187000) (193000) (199000) (205000) (211000) (217000) (224000) (230000) (237000) (244000) (252000) (259000) (267000)
Effective Gross Income 2660000 2893000 2978000 3068000 3161000 3256000 3353000 3453000 3557000 3664000 3774000 3887000 4004000 4124000 4247000 4375000 4506000 4642000 4781000 4925000 5072000
OPERATING EXPENSES
Administrative 49000 51000 52000 54000 55000 57000 59000 60000 62000 64000 66000 68000 70000 72000 74000 77000 79000 81000 84000 86000 89000 17 of PGI
Advertising 20000 21000 22000 22000 23000 24000 24000 25000 26000 27000 28000 28000 29000 30000 31000 32000 33000 34000 35000 36000 37000 07 of PGI
Repairs amp Maintenance 82000 84000 87000 89000 92000 95000 98000 101000 104000 107000 110000 113000 117000 120000 124000 128000 131000 135000 139000 144000 148000 28 of PGI
Utilities 123000 126000 130000 134000 138000 142000 147000 151000 156000 160000 165000 170000 175000 180000 186000 191000 197000 203000 209000 215000 222000 42 of PGI
Payroll 147000 152000 156000 161000 166000 171000 176000 181000 187000 192000 198000 204000 210000 216000 223000 230000 236000 244000 251000 258000 266000 50 of PGI
Insurance 57000 59000 61000 63000 64000 66000 68000 70000 73000 75000 77000 79000 82000 84000 87000 89000 92000 95000 98000 100000 104000 19 of PGI
Property Taxes 327000 337000 347000 358000 369000 380000 391000 403000 415000 427000 440000 453000 467000 481000 495000 510000 525000 541000 558000 574000 591000 111 of PGI
Management Fee 106000 116000 119000 123000 126000 130000 134000 138000 142000 147000 151000 155000 160000 165000 170000 175000 180000 186000 191000 197000 203000 40 of EGI
Reserves 53000 58000 60000 61000 63000 65000 67000 69000 71000 73000 75000 78000 80000 82000 85000 88000 90000 93000 96000 99000 101000 20 of EGI
Total Expenses 964000 1004000 1034000 1065000 1096000 1130000 1164000 1198000 1236000 1272000 1310000 1348000 1390000 1430000 1475000 1520000 1563000 1612000 1661000 1709000 1761000
NET OPERATING INCOME 1696000 1889000 1944000 2003000 2065000 2126000 2189000 2255000 2321000 2392000 2464000 2539000 2614000 2694000 2772000 2855000 2943000 3030000 3120000 3216000 3311000
Annual Debt Service (500 25 -yr Amort) 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503
DSCR 134x 149x 153x 158x 163x 168x 173x 178x 183x 189x 195x 200x 206x 213x 219x 225x 232x 239x 246x 254x
Mortgage Balance $17681743 $17290441 $16879120 $16446754 $15992267 $15514529 $15012348 $14484474 $13929594 $13346325 $12733215 $12088736 $11411286 $10699175 $9950632 $9163791 $8336695 $7467282 $6553389 $5592739
BEFORE TAX CASH FLOW 429497 622497 677497 736497 798497 859497 922497 988497 1054497 1125497 1197497 1272497 1347497 1427497 1505497 1588497 1676497 1763497 1853497 1949497
REVERSION CALCULATIONS
Project NOI (Year 21) 3311000
Cap Rate 700
Gross Sales Proceeds 47300000
Less Selling Costs 30 (1419000)
Net Sales Proceeds 45881000
Less Mortgage Balance (5592739)
Net Reversion Proceeds 40288261
NOI Margin 638 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (7738000) 00 00 429497 622497 677497 736497 798497 859497 922497 988497 1054497 1125497 1197497 1272497 1347497 1427497 1505497 1588497 1676497 1763497 1853497 42237758
ROE 1304 IRR 56 80 88 95 103 111 119 128 136 145 155 164 174 184 195 205 217 228 240 252
ONE BIG SKY CENTER
Billings Montana
SENIOR HOUSING - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 8728000 Land Acquisition $ 1800000 $12000 DU
Construction $ 20100000 $134000 DU
Debt Financing $ 20364000 FFampE $ 1200000 $8000 DU
Development $ 4260000 20
Financing $ 432000 70 Loan to Project Costs
Contingency $ 1300000 5
TOTAL $ 29092000 TOTAL $ 29092000 $193947 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Monthly Rent $1960 $2019 $2079 $2142 $2206 $2272 $2340 $2411 $2483 $2557 $2634 $2713 $2794 $2878 $2965 $3054 $3145 $3240 $3337 $3437 $3540
Rental Rate per Square Foot $330 $340 $350 $361 $371 $383 $394 $406 $418 $431 $443 $457 $471 $485 $499 $514 $530 $545 $562 $579 $596 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 3528000 3634000 3743000 3855000 3971000 4090000 4213000 4339000 4469000 4603000 4741000 4884000 5030000 5181000 5336000 5497000 5661000 5831000 6006000 6186000 6372000
Miscellaneous 71000 73000 75000 77000 79000 82000 84000 87000 89000 92000 95000 98000 101000 104000 107000 110000 113000 117000 120000 124000 127000 2 of PGI
Vacancy Collections Losses (360000) (185000) (191000) (197000) (203000) (209000) (215000) (221000) (228000) (235000) (242000) (249000) (257000) (264000) (272000) (280000) (289000) (297000) (306000) (316000) (325000)
Effective Gross Income 3239000 3522000 3627000 3735000 3847000 3963000 4082000 4205000 4330000 4460000 4594000 4733000 4874000 5021000 5171000 5327000 5485000 5651000 5820000 5994000 6174000
OPERATING EXPENSES
Administrative 60000 62000 63000 65000 67000 69000 71000 74000 76000 78000 80000 83000 85000 88000 90000 93000 96000 99000 102000 105000 108000 17 of PGI
Advertising 25000 26000 26000 27000 28000 29000 30000 31000 32000 33000 33000 34000 36000 37000 38000 39000 40000 41000 42000 44000 45000 07 of PGI
Repairs amp Maintenance 100000 103000 106000 109000 112000 116000 119000 123000 126000 130000 134000 138000 142000 146000 151000 155000 160000 165000 170000 175000 180000 28 of PGI
Utilities 150000 154000 159000 163000 168000 173000 179000 184000 189000 195000 201000 207000 213000 220000 226000 233000 240000 247000 254000 262000 270000 42 of PGI
Payroll 179000 185000 190000 196000 202000 208000 214000 221000 227000 234000 241000 248000 256000 263000 271000 280000 288000 297000 305000 315000 324000 50 of PGI
Insurance 70000 72000 74000 76000 79000 81000 83000 86000 88000 91000 94000 97000 99000 102000 106000 109000 112000 115000 119000 122000 126000 19 of PGI
Property Taxes 399000 411000 423000 436000 449000 462000 476000 490000 505000 520000 536000 552000 568000 585000 603000 621000 640000 659000 679000 699000 720000 111 of PGI
Management Fee 130000 141000 145000 149000 154000 159000 163000 168000 173000 178000 184000 189000 195000 201000 207000 213000 219000 226000 233000 240000 247000 40 of EGI
Reserves 65000 70000 73000 75000 77000 79000 82000 84000 87000 89000 92000 95000 97000 100000 103000 107000 110000 113000 116000 120000 123000 20 of EGI
Total Expenses 1178000 1224000 1259000 1296000 1336000 1376000 1417000 1461000 1503000 1548000 1595000 1643000 1691000 1742000 1795000 1850000 1905000 1962000 2020000 2082000 2143000
NET OPERATING INCOME 2061000 2298000 2368000 2439000 2511000 2587000 2665000 2744000 2827000 2912000 2999000 3090000 3183000 3279000 3376000 3477000 3580000 3689000 3800000 3912000 4031000
Annual Debt Service (500 25 -yr Amort) 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551
DSCR 144x 161x 166x 171x 176x 181x 187x 192x 198x 204x 210x 216x 223x 230x 236x 243x 251x 258x 266x 274x
Mortgage Balance $19944113 $19502744 $19038794 $18551107 $18038470 $17499604 $16933170 $16337755 $15711878 $15053980 $14362423 $13635484 $12871354 $12068129 $11223810 $10336294 $9403370 $8422717 $7391892 $6308327
BEFORE TAX CASH FLOW 632449 869449 939449 1010449 1082449 1158449 1236449 1315449 1398449 1483449 1570449 1661449 1754449 1850449 1947449 2048449 2151449 2260449 2371449 2483449
REVERSION CALCULATIONS
Project NOI (Year 21) 4031000
Cap Rate 700
Gross Sales Proceeds 57585714
Less Selling Costs 30 (1727571)
Net Sales Proceeds 55858143
Less Mortgage Balance (6308327)
Net Reversion Proceeds 49549816
NOI Margin 636 652 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (8728000) 00 00 632449 869449 939449 1010449 1082449 1158449 1236449 1315449 1398449 1483449 1570449 1661449 1754449 1850449 1947449 2048449 2151449 2260449 2371449 52033265
ROE 1419 IRR 72 100 108 116 124 133 142 151 160 170 180 190 201 212 223 235 246 259 272 285
ONE BIG SKY CENTER
Billings Montana
RESIDENTIAL - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 67840000 Land Acquisition $ 16000000 $20000 DU
Construction $ 156000000 $195000 DU
Debt Financing $ 158294000 FFampE $ 8000000 $10000 DU
Development $ 32800000 20
Financing $ 3328000 70 Loan to Project Costs
Contingency $ 10006000 5
TOTAL $ 226134000 TOTAL $ 226134000 $282668 DU
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Number of Units 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800
Average Monthly Rent $2840 $2925 $3013 $3103 $3196 $3292 $3391 $3493 $3598 $3706 $3817 $3931 $4049 $4171 $4296 $4425
Rental Rate per Square Foot $355 $366 $377 $388 $400 $412 $424 $437 $450 $463 $477 $491 $506 $521 $537 $553 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 27264000 28082000 28924000 29792000 30686000 31606000 32555000 33531000 34537000 35573000 36641000 37740000 38872000 40038000 41239000 42476000
Miscellaneous 545000 562000 578000 596000 614000 632000 651000 671000 691000 711000 733000 755000 777000 801000 825000 850000 2 of PGI
Vacancy Collections Losses (2781000) (1432000) (1475000) (1519000) (1565000) (1612000) (1660000) (1710000) (1761000) (1814000) (1869000) (1925000) (1982000) (2042000) (2103000) (2166000)
Effective Gross Income 25028000 27212000 28027000 28869000 29735000 30626000 31546000 32492000 33467000 34470000 35505000 36570000 37667000 38797000 39961000 41160000
OPERATING EXPENSES
Administrative 462000 476000 490000 505000 520000 536000 552000 568000 585000 603000 621000 640000 659000 679000 699000 720000 17 of PGI
Advertising 193000 198000 204000 210000 217000 223000 230000 237000 244000 251000 259000 267000 275000 283000 291000 300000 07 of PGI
Repairs amp Maintenance 770000 793000 817000 842000 867000 893000 920000 947000 976000 1005000 1035000 1066000 1098000 1131000 1165000 1200000 28 of PGI
Utilities 1155000 1190000 1226000 1262000 1300000 1339000 1379000 1421000 1463000 1507000 1553000 1599000 1647000 1697000 1747000 1800000 42 of PGI
Payroll 1386000 1428000 1471000 1515000 1560000 1607000 1655000 1705000 1756000 1809000 1863000 1919000 1977000 2036000 2097000 2160000 50 of PGI
Insurance 539000 555000 572000 589000 607000 625000 644000 663000 683000 703000 725000 746000 769000 792000 815000 840000 19 of PGI
Property Taxes 3081000 3173000 3268000 3366000 3467000 3571000 3679000 3789000 3903000 4019000 4140000 4264000 4392000 4524000 4660000 4800000 111 of PGI
Management Fee 1001000 1088000 1121000 1155000 1189000 1225000 1262000 1300000 1339000 1379000 1420000 1463000 1507000 1552000 1598000 1646000 40 of EGI
Reserves 501000 544000 561000 577000 595000 613000 631000 650000 669000 689000 710000 731000 753000 776000 799000 823000 20 of EGI
Total Expenses 9088000 9445000 9730000 10021000 10322000 10632000 10952000 11280000 11618000 11965000 12326000 12695000 13077000 13470000 13871000 14289000
NET OPERATING INCOME 15940000 17767000 18297000 18848000 19413000 19994000 20594000 21212000 21849000 22505000 23179000 23875000 24590000 25327000 26090000 26871000
Annual Debt Service (500 25 -yr Amort) 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452
DSCR 144x 160x 165x 170x 175x 180x 185x 191x 197x 203x 209x 215x 221x 228x 235x
Mortgage Balance $155030125 $151599264 $147992874 $144201974 $140217124 $136028402 $131625377 $126997085 $122132001 $117018009 $111642377 $105991716 $100051957 $93808309 $87245224
BEFORE TAX CASH FLOW 4835548 6662548 7192548 7743548 8308548 8889548 9489548 10107548 10744548 11400548 12074548 12770548 13485548 14222548 14985548
REVERSION CALCULATIONS
Project NOI (Year 21) 26871000
Cap Rate 700
Gross Sales Proceeds 383871429
Less Selling Costs 30 (11516143)
Net Sales Proceeds 372355286
Less Mortgage Balance (87245224)
Net Reversion Proceeds 285110062
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (67840000) 00 00 4835548 6662548 7192548 7743548 8308548 8889548 9489548 10107548 10744548 11400548 12074548 12770548 13485548 14222548 300095610
ROE 1451 IRR 71 98 106 114 122 131 140 149 158 168 178 188 199 210 221
ONE BIG SKY CENTER
Billings Montana
RESIDENTIAL - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 16834000 Land Acquisition $ 4500000 $15000 DU
Construction $ 43500000 $145000 DU
Debt Financing $ 39278000 FFampE $ 2400000 $8000 DU
Development $ 9180000 20
Public Investment $ 7200000 Financing $ 931000 70 Loan to Project Costs
Contingency $ 2801000 5
TOTAL $ 63312000 TOTAL $ 63312000 $211040 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Monthly Rent $1760 $1813 $1867 $1923 $1981 $2040 $2102 $2165 $2230 $2296 $2365 $2436 $2509 $2585 $2662 $2742 $2824 $2909 $2996 $3086 $3179
Rental Rate per Square Foot $220 $227 $233 $240 $248 $255 $263 $271 $279 $287 $296 $305 $314 $323 $333 $343 $353 $364 $375 $386 $397 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 6336000 6526000 6722000 6924000 7131000 7345000 7566000 7792000 8026000 8267000 8515000 8771000 9034000 9305000 9584000 9871000 10167000 10472000 10787000 11110000 11444000
Miscellaneous 127000 131000 134000 138000 143000 147000 151000 156000 161000 165000 170000 175000 181000 186000 192000 197000 203000 209000 216000 222000 229000 2 of PGI
Vacancy Collections Losses (646000) (333000) (343000) (353000) (364000) (375000) (386000) (397000) (409000) (422000) (434000) (447000) (461000) (475000) (489000) (503000) (519000) (534000) (550000) (567000) (584000)
Effective Gross Income 5817000 6324000 6513000 6709000 6910000 7117000 7331000 7551000 7778000 8010000 8251000 8499000 8754000 9016000 9287000 9565000 9851000 10147000 10453000 10765000 11089000
OPERATING EXPENSES
Administrative 107000 111000 114000 117000 121000 124000 128000 132000 136000 140000 144000 149000 153000 158000 162000 167000 172000 177000 183000 188000 194000 17 of PGI
Advertising 45000 46000 47000 49000 50000 52000 53000 55000 57000 58000 60000 62000 64000 66000 68000 70000 72000 74000 76000 78000 81000 07 of PGI
Repairs amp Maintenance 179000 184000 190000 196000 201000 207000 214000 220000 227000 234000 241000 248000 255000 263000 271000 279000 287000 296000 305000 314000 323000 28 of PGI
Utilities 268000 277000 285000 293000 302000 311000 321000 330000 340000 350000 361000 372000 383000 394000 406000 418000 431000 444000 457000 471000 485000 42 of PGI
Payroll 322000 332000 342000 352000 363000 373000 385000 396000 408000 420000 433000 446000 459000 473000 487000 502000 517000 532000 549000 565000 582000 50 of PGI
Insurance 125000 129000 133000 137000 141000 145000 150000 154000 159000 163000 168000 173000 179000 184000 190000 195000 201000 207000 213000 220000 226000 19 of PGI
Property Taxes 716000 737000 759000 782000 806000 830000 855000 880000 907000 934000 962000 991000 1021000 1051000 1083000 1115000 1149000 1183000 1219000 1255000 1293000 111 of PGI
Management Fee 233000 253000 261000 268000 276000 285000 293000 302000 311000 320000 330000 340000 350000 361000 371000 383000 394000 406000 418000 431000 444000 40 of EGI
Reserves 116000 126000 130000 134000 138000 142000 147000 151000 156000 160000 165000 170000 175000 180000 186000 191000 197000 203000 209000 215000 222000 20 of EGI
Total Expenses 2111000 2195000 2261000 2328000 2398000 2469000 2546000 2620000 2701000 2779000 2864000 2951000 3039000 3130000 3224000 3320000 3420000 3522000 3629000 3737000 3850000
NET OPERATING INCOME 3706000 4129000 4252000 4381000 4512000 4648000 4785000 4931000 5077000 5231000 5387000 5548000 5715000 5886000 6063000 6245000 6431000 6625000 6824000 7028000 7239000
Annual Debt Service (500 25 -yr Amort) 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383
DSCR 135x 150x 154x 159x 164x 169x 174x 179x 184x 190x 196x 201x 207x 214x 220x 227x 233x 240x 248x 255x
Mortgage Balance $38468124 $37616814 $36721948 $35781300 $34792527 $33753166 $32660629 $31512196 $30305007 $29036056 $27702182 $26300066 $24826214 $23276958 $21648438 $19936601 $18137182 $16245702 $14257450 $12167476
BEFORE TAX CASH FLOW 950617 1373617 1496617 1625617 1756617 1892617 2029617 2175617 2321617 2475617 2631617 2792617 2959617 3130617 3307617 3489617 3675617 3869617 4068617 4272617
REVERSION CALCULATIONS
Project NOI (Year 21) 7239000
Cap Rate 700
Gross Sales Proceeds 103414286
Less Selling Costs 30 (3102429)
Net Sales Proceeds 100311857
Less Mortgage Balance (12167476)
Net Reversion Proceeds 88144381
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (16834000) 00 00 950617 1373617 1496617 1625617 1756617 1892617 2029617 2175617 2321617 2475617 2631617 2792617 2959617 3130617 3307617 3489617 3675617 3869617 4068617 92416998
ROE 1312 IRR 56 82 89 97 104 112 121 129 138 147 156 166 176 186 196 207 218 230 242 254
ONE BIG SKY CENTER
Billings Montana
RESIDENTIAL - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 18994000 Land Acquisition $ 4500000 $15000 DU
Construction $ 43500000 $145000 DU
Debt Financing $ 44318000 FFampE $ 2400000 $8000 DU
Development $ 9180000 20
Financing $ 931000 70 Loan to Project Costs
Contingency $ 2801000 5
TOTAL $ 63312000 TOTAL $ 63312000 $211040 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Monthly Rent $2120 $2184 $2249 $2317 $2386 $2458 $2531 $2607 $2686 $2766 $2849 $2935 $3023 $3113 $3207 $3303 $3402 $3504 $3609 $3717 $3829
Rental Rate per Square Foot $265 $273 $281 $290 $298 $307 $316 $326 $336 $346 $356 $367 $378 $389 $401 $413 $425 $438 $451 $465 $479 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 7632000 7861000 8097000 8340000 8590000 8848000 9113000 9386000 9668000 9958000 10257000 10564000 10881000 11208000 11544000 11890000 12247000 12615000 12993000 13383000 13784000
Miscellaneous 153000 157000 162000 167000 172000 177000 182000 188000 193000 199000 205000 211000 218000 224000 231000 238000 245000 252000 260000 268000 276000 2 of PGI
Vacancy Collections Losses (779000) (401000) (413000) (425000) (438000) (451000) (465000) (479000) (493000) (508000) (523000) (539000) (555000) (572000) (589000) (606000) (625000) (643000) (663000) (683000) (703000)
Effective Gross Income 7006000 7617000 7846000 8082000 8324000 8574000 8830000 9095000 9368000 9649000 9939000 10236000 10544000 10860000 11186000 11522000 11867000 12224000 12590000 12968000 13357000
OPERATING EXPENSES
Administrative 129000 133000 137000 141000 146000 150000 154000 159000 164000 169000 174000 179000 184000 190000 196000 202000 208000 214000 220000 227000 234000 17 of PGI
Advertising 54000 56000 57000 59000 61000 62000 64000 66000 68000 70000 72000 75000 77000 79000 82000 84000 86000 89000 92000 95000 97000 07 of PGI
Repairs amp Maintenance 216000 222000 229000 236000 243000 250000 257000 265000 273000 281000 290000 298000 307000 317000 326000 336000 346000 356000 367000 378000 389000 28 of PGI
Utilities 323000 333000 343000 353000 364000 375000 386000 398000 410000 422000 435000 448000 461000 475000 489000 504000 519000 535000 551000 567000 584000 42 of PGI
Payroll 388000 400000 412000 424000 437000 450000 463000 477000 492000 506000 522000 537000 553000 570000 587000 605000 623000 641000 661000 681000 701000 50 of PGI
Insurance 151000 155000 160000 165000 170000 175000 180000 186000 191000 197000 203000 209000 215000 222000 228000 235000 242000 249000 257000 265000 273000 19 of PGI
Property Taxes 862000 888000 915000 942000 971000 1000000 1030000 1061000 1092000 1125000 1159000 1194000 1230000 1266000 1304000 1344000 1384000 1425000 1468000 1512000 1558000 111 of PGI
Management Fee 280000 305000 314000 323000 333000 343000 353000 364000 375000 386000 398000 409000 422000 434000 447000 461000 475000 489000 504000 519000 534000 40 of EGI
Reserves 140000 152000 157000 162000 166000 171000 177000 182000 187000 193000 199000 205000 211000 217000 224000 230000 237000 244000 252000 259000 267000 20 of EGI
Total Expenses 2543000 2644000 2724000 2805000 2891000 2976000 3064000 3158000 3252000 3349000 3452000 3554000 3660000 3770000 3883000 4001000 4120000 4242000 4372000 4503000 4637000
NET OPERATING INCOME 4463000 4973000 5122000 5277000 5433000 5598000 5766000 5937000 6116000 6300000 6487000 6682000 6884000 7090000 7303000 7521000 7747000 7982000 8218000 8465000 8720000
Annual Debt Service (500 25 -yr Amort) 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943
DSCR 144x 160x 165x 170x 175x 180x 185x 191x 197x 203x 209x 215x 221x 228x 235x 242x 249x 257x 264x 272x
Mortgage Balance $43404204 $42443657 $41433966 $40372617 $39256968 $38084240 $36851513 $35555718 $34193627 $32761849 $31256819 $29674788 $28011817 $26263766 $24426282 $22494788 $20464475 $18330287 $16086911 $13728759
BEFORE TAX CASH FLOW 1354057 1864057 2013057 2168057 2324057 2489057 2657057 2828057 3007057 3191057 3378057 3573057 3775057 3981057 4194057 4412057 4638057 4873057 5109057 5356057
REVERSION CALCULATIONS
Project NOI (Year 21) 8720000
Cap Rate 700
Gross Sales Proceeds 124571429
Less Selling Costs 30 (3737143)
Net Sales Proceeds 120834286
Less Mortgage Balance (13728759)
Net Reversion Proceeds 107105527
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (18994000) 00 00 1354057 1864057 2013057 2168057 2324057 2489057 2657057 2828057 3007057 3191057 3378057 3573057 3775057 3981057 4194057 4412057 4638057 4873057 5109057 112461584
ROE 1411 IRR 71 98 106 114 122 131 140 149 158 168 178 188 199 210 221 232 244 257 269 282
ONE BIG SKY CENTER
Billings Montana
MEDICAL OFFICE - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 32865000 Land Acquisition $ 6800000 $3400 SF
Construction $ 42000000 $21000 SF
Debt Financing $ 61034000 Development $ 10500000 25
Financing $ 3451000 65 Loan to Project Costs
TI Allowances $ 27000000 $13500 SF
Contingency $ 4148000 5
TOTAL $ 93899000 TOTAL $ 93899000 $46950 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $4250 $4378 $4509 $4644 $4783 $4927 $5075 $5227 $5384 $5545 $5712 $5883 $6059 $6241 $6429 $6621 3
OPERATING REVENUES
Office Rent (NNN) 8500000 8755000 9018000 9288000 9567000 9854000 10149000 10454000 10768000 11091000 11423000 11766000 12119000 12483000 12857000 13243000
Expense Reimbursements 3531000 3601000 3674000 3747000 3822000 3898000 3976000 4056000 4137000 4220000 4304000 4390000 4478000 4568000 4659000 4752000
Vacancy Allowance (1203000) (927000) (635000) (652000) (669000) (688000) (706000) (726000) (745000) (766000) (786000) (808000) (830000) (853000) (876000) (900000)
Total Revenues 10828000 11429000 12057000 12383000 12720000 13064000 13419000 13784000 14160000 14545000 14941000 15348000 15767000 16198000 16640000 17095000
OPERATING EXPENSES
Operating Expenses 2568000 2619000 2672000 2725000 2780000 2835000 2892000 2950000 3009000 3069000 3130000 3193000 3257000 3322000 3388000 3456000
Property Taxes 963000 982000 1002000 1022000 1042000 1063000 1084000 1106000 1128000 1151000 1174000 1197000 1221000 1246000 1271000 1296000
Total Expenses 3531000 3601000 3674000 3747000 3822000 3898000 3976000 4056000 4137000 4220000 4304000 4390000 4478000 4568000 4659000 4752000
NET OPERATING INCOME 7297000 7828000 8383000 8636000 8898000 9166000 9443000 9728000 10023000 10325000 10637000 10958000 11289000 11630000 11981000 12343000
Annual Debt Service (500 25 -yr Amort) 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584
DSCR 170x 183x 196x 202x 208x 214x 221x 227x 234x 241x 248x 256x 264x 272x 280x
Mortgage Balance $59775536 $58452686 $57062157 $55600486 $54064033 $52448972 $50751281 $48966733 $47090885 $45119064 $43046362 $40867616 $38577401 $36170015 $33639462
BEFORE TAX CASH FLOW 3015416 3546416 4101416 4354416 4616416 4884416 5161416 5446416 5741416 6043416 6355416 6676416 7007416 7348416 7699416
REVERSION CALCULATIONS
Project NOI (Year 21) 12343000
Cap Rate 800
Gross Sales Proceeds 154287500
Less Selling Costs 30 (4628625)
Net Sales Proceeds 149658875
Less Mortgage Balance (33639462)
Net Reversion Proceeds 116019413
Gross Rental Rate $6016 $6178 $6346 $6518 $6695 $6876 $7063 $7255 $7453 $7656 $7864 $8078 $8299 $8526 $8758 $8998
Equity $ (32865000) 00 00 3015416 3546416 4101416 4354416 4616416 4884416 5161416 5446416 5741416 6043416 6355416 6676416 7007416 7348416 123718829
ROE 1460 IRR 92 108 125 132 140 149 157 166 175 184 193 203 213 224 234
ONE BIG SKY CENTER
Billings Montana
MEDICAL OFFICE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 21327000 Land Acquisition $ 4375000 $2500 SF
Construction $ 27300000 $15600 SF
Debt Financing $ 39607000 Development $ 6825000 25
Financing $ 2241000 65 Loan to Project Costs
TI Allowances $ 17500000 $10000 SF
Contingency $ 2693000 5
TOTAL $ 60934000 TOTAL $ 60934000 $34819 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3165 $3260 $3358 $3458 $3562 $3669 $3779 $3893 $4009 $4130 $4253 $4381 $4513 $4648 $4787 $4931 $5079 $5231 $5388 $5550 $5716 3
OPERATING REVENUES
Office Rent (NNN) 5539000 5705000 5876000 6052000 6234000 6421000 6614000 6812000 7016000 7227000 7444000 7667000 7897000 8134000 8378000 8629000 8888000 9155000 9429000 9712000 10004000
Expense Reimbursements 2299000 2345000 2392000 2439000 2489000 2538000 2589000 2641000 2694000 2747000 2802000 2859000 2916000 2974000 3033000 3094000 3156000 3219000 3284000 3349000 3417000
Vacancy Allowance (784000) (604000) (413000) (425000) (436000) (448000) (460000) (473000) (486000) (499000) (512000) (526000) (541000) (555000) (571000) (586000) (602000) (619000) (636000) (653000) (671000)
Total Revenues 7054000 7446000 7855000 8066000 8287000 8511000 8743000 8980000 9224000 9475000 9734000 10000000 10272000 10553000 10840000 11137000 11442000 11755000 12077000 12408000 12750000
OPERATING EXPENSES
Operating Expenses 1672000 1705000 1740000 1774000 1810000 1846000 1883000 1921000 1959000 1998000 2038000 2079000 2121000 2163000 2206000 2250000 2295000 2341000 2388000 2436000 2485000
Property Taxes 627000 640000 652000 665000 679000 692000 706000 720000 735000 749000 764000 780000 795000 811000 827000 844000 861000 878000 896000 913000 932000
Total Expenses 2299000 2345000 2392000 2439000 2489000 2538000 2589000 2641000 2694000 2747000 2802000 2859000 2916000 2974000 3033000 3094000 3156000 3219000 3284000 3349000 3417000
NET OPERATING INCOME 4755000 5101000 5463000 5627000 5798000 5973000 6154000 6339000 6530000 6728000 6932000 7141000 7356000 7579000 7807000 8043000 8286000 8536000 8793000 9059000 9333000
Annual Debt Service (500 25 -yr Amort) 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463
DSCR 171x 184x 197x 203x 209x 215x 221x 228x 235x 242x 249x 257x 265x 273x 281x 289x 298x 307x 316x 326x
Mortgage Balance $38790341 $37931899 $37029538 $36081011 $35083955 $34035888 $32934200 $31776148 $30558847 $29279267 $27934221 $26520360 $25034163 $23471930 $21829770 $20103593 $18289103 $16381779 $14376873 $12269393
BEFORE TAX CASH FLOW 1976537 2322537 2684537 2848537 3019537 3194537 3375537 3560537 3751537 3949537 4153537 4362537 4577537 4800537 5028537 5264537 5507537 5757537 6014537 6280537
REVERSION CALCULATIONS
Project NOI (Year 21) 9333000
Cap Rate 800
Gross Sales Proceeds 116662500
Less Selling Costs 30 (3499875)
Net Sales Proceeds 113162625
Less Mortgage Balance (12269393)
Net Reversion Proceeds 100893232
Gross Rental Rate $4479 $4600 $4725 $4852 $4985 $5119 $5259 $5402 $5549 $5699 $5855 $6015 $6179 $6347 $6521 $6699 $6882 $7071 $7265 $7463 $7669
Equity $ (21327000) 00 00 1976537 2322537 2684537 2848537 3019537 3194537 3375537 3560537 3751537 3949537 4153537 4362537 4577537 4800537 5028537 5264537 5507537 5757537 6014537 107173769
ROE 1444 IRR 93 109 126 134 142 150 158 167 176 185 195 205 215 225 236 247 258 270 282 294
ONE BIG SKY CENTER
Billings Montana
AMBULATORY MEDICAL WELLNESS - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 43599000 Land Acquisition $ - $000 SF
Construction $ 122000000 $30500 SF
Debt Financing $ 247062000 FFampE $ 34800000 $8700 SF
Development $ 52700000 25
Financing $ 13320000 85 Loan to Project Costs
Tenant Improvements $ 54000000 $13500 SF
Contingency $ 13841000 5
TOTAL $ 290661000 TOTAL $ 290661000 $72665 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $5055 $5207 $5363 $5524 $5689 $5860 $6036 $6217 $6404 $6596 $6793 $6997 $7207 $7423 $7646 $7876 3
OPERATING REVENUES
Rent (NNN) 20220000 20827000 21451000 22095000 22758000 23441000 24144000 24868000 25614000 26383000 27174000 27989000 28829000 29694000 30585000 31502000
Expense Reimbursements 8345000 8512000 8682000 8856000 9033000 9213000 9398000 9585000 9778000 9973000 10173000 10376000 10584000 10795000 11011000 11231000
Vacancy Allowance (2857000) (2200000) (1507000) (1548000) (1590000) (1633000) (1677000) (1723000) (1770000) (1818000) (1867000) (1918000) (1971000) (2024000) (2080000) (2137000)
Total Revenues 25708000 27139000 28626000 29403000 30201000 31021000 31865000 32730000 33622000 34538000 35480000 36447000 37442000 38465000 39516000 40596000
OPERATING EXPENSES
Operating Expenses 6419000 6547000 6678000 6812000 6948000 7087000 7229000 7373000 7521000 7671000 7825000 7981000 8141000 8304000 8470000 8639000
Property Taxes 1926000 1965000 2004000 2044000 2085000 2126000 2169000 2212000 2257000 2302000 2348000 2395000 2443000 2491000 2541000 2592000
Total Expenses 8345000 8512000 8682000 8856000 9033000 9213000 9398000 9585000 9778000 9973000 10173000 10376000 10584000 10795000 11011000 11231000
NET OPERATING INCOME 17363000 18627000 19944000 20547000 21168000 21808000 22467000 23145000 23844000 24565000 25307000 26071000 26858000 27670000 28505000 29365000
Annual Debt Service (450 25 -yr Amort) 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010
DSCR 105x 113x 121x 125x 128x 132x 136x 140x 145x 149x 154x 158x 163x 168x 173x
Mortgage Balance $241588811 $235864184 $229876570 $223613885 $217063493 $210212178 $203046115 $195550843 $187711241 $179511488 $170935040 $161964592 $152582043 $142768461 $132504045
BEFORE TAX CASH FLOW 883990 2147990 3464990 4067990 4688990 5328990 5987990 6665990 7364990 8085990 8827990 9591990 10378990 11190990 12025990
REVERSION CALCULATIONS
Project NOI (Year 16) 29365000
Cap Rate 800
Gross Sales Proceeds 367062500
Less Selling Costs 30 (11011875)
Net Sales Proceeds 356050625
Less Mortgage Balance (132504045)
Net Reversion Proceeds 223546580
Gross Rental Rate $7141 $7335 $7533 $7738 $7948 $8164 $8386 $8613 $8848 $9089 $9337 $9591 $9853 $10122 $10399 $10683
Equity $ (43599000) 00 00 883990 2147990 3464990 4067990 4688990 5328990 5987990 6665990 7364990 8085990 8827990 9591990 10378990 11190990 235572570
ROE 1476 IRR 20 49 79 93 108 122 137 153 169 185 202 220 238 257 276
ONE BIG SKY CENTER
Billings Montana
AMBULATORY MEDICAL WELLNESS - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 6081000 Land Acquisition $ - $000 SF
Construction $ 17025000 $22700 SF
Debt Financing $ 34457000 FFampE $ 4875000 $6500 SF
Development $ 7350000 25
Financing $ 1858000 85 Loan to Project Costs
Tenant Improvements $ 7500000 $10000 SF
Contingency $ 1930000 5
TOTAL $ 40538000 TOTAL $ 40538000 $54051 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3760 $3873 $3989 $4109 $4232 $4359 $4490 $4624 $4763 $4906 $5053 $5205 $5361 $5522 $5687 $5858 $6034 $6215 $6401 $6593 $6791 3
OPERATING REVENUES
Rent (NNN) 2820000 2905000 2992000 3081000 3174000 3269000 3367000 3468000 3572000 3679000 3790000 3904000 4021000 4141000 4266000 4393000 4525000 4661000 4801000 4945000 5093000
Expense Reimbursements 1165000 1188000 1212000 1236000 1261000 1286000 1312000 1338000 1365000 1392000 1420000 1448000 1477000 1507000 1537000 1568000 1599000 1632000 1664000 1697000 1731000
Vacancy Allowance (399000) (307000) (210000) (216000) (222000) (228000) (234000) (240000) (247000) (254000) (261000) (268000) (275000) (282000) (290000) (298000) (306000) (315000) (323000) (332000) (341000)
Total Revenues 3586000 3786000 3994000 4101000 4213000 4327000 4445000 4566000 4690000 4817000 4949000 5084000 5223000 5366000 5513000 5663000 5818000 5978000 6142000 6310000 6483000
OPERATING EXPENSES
Operating Expenses 896000 914000 932000 951000 970000 989000 1009000 1029000 1050000 1071000 1092000 1114000 1136000 1159000 1182000 1206000 1230000 1255000 1280000 1305000 1331000
Property Taxes 269000 274000 280000 285000 291000 297000 303000 309000 315000 321000 328000 334000 341000 348000 355000 362000 369000 377000 384000 392000 400000
Total Expenses 1165000 1188000 1212000 1236000 1261000 1286000 1312000 1338000 1365000 1392000 1420000 1448000 1477000 1507000 1537000 1568000 1599000 1632000 1664000 1697000 1731000
NET OPERATING INCOME 2421000 2598000 2782000 2865000 2952000 3041000 3133000 3228000 3325000 3425000 3529000 3636000 3746000 3859000 3976000 4095000 4219000 4346000 4478000 4613000 4752000
Annual Debt Service (450 25 -yr Amort) 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278
DSCR 105x 113x 121x 125x 128x 132x 136x 140x 145x 149x 154x 158x 163x 168x 173x 178x 184x 189x 195x 201x
Mortgage Balance $33693671 $32895274 $32060199 $31186761 $30273198 $29317665 $28318236 $27272893 $26179527 $25035932 $23839800 $22588718 $21280162 $19911491 $18479944 $16982631 $15416532 $13778487 $12065191 $10273186
BEFORE TAX CASH FLOW 122722 299722 483722 566722 653722 742722 834722 929722 1026722 1126722 1230722 1337722 1447722 1560722 1677722 1796722 1920722 2047722 2179722 2314722
REVERSION CALCULATIONS
Project NOI (Year 16) 4752000
Cap Rate 800
Gross Sales Proceeds 59400000
Less Selling Costs 30 (1782000)
Net Sales Proceeds 57618000
Less Mortgage Balance (18479944)
Net Reversion Proceeds 39138056
Gross Rental Rate $5313 $5457 $5605 $5756 $5913 $6073 $6239 $6408 $6583 $6761 $6947 $7136 $7331 $7531 $7737 $7948 $8165 $8391 $8620 $8856 $9099
Equity $ (6081000) 00 00 122722 299722 483722 566722 653722 742722 834722 929722 1026722 1126722 1230722 1337722 1447722 1560722 1677722 1796722 1920722 2047722 2179722 41452778
ROE 1418 IRR 20 49 80 93 108 122 137 153 169 185 202 220 238 257 276 295 316 337 358 381
ONE BIG SKY CENTER
Billings Montana
BIOSCIENCE - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 24494000 Land Acquisition $ 4250000 $3400 SF
Construction $ 26125000 $20900 SF
Debt Financing $ 45490000 FFampE $ 4375000 $3500 SF
Development $ 12000000 25
Financing $ 2604000 65 Loan to Project Costs
TI Allowances $ 17500000 $14000 SF
Contingency $ 3130000 5
TOTAL $ 69984000 TOTAL $ 69984000 $55987 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $4975 $5124 $5278 $5436 $5599 $5767 $5940 $6119 $6302 $6491 $6686 $6887 $7093 $7306 $7525 $7751 3
OPERATING REVENUES
Rent (NNN) 6219000 6405000 6597000 6795000 6999000 7209000 7426000 7648000 7878000 8114000 8357000 8608000 8866000 9132000 9406000 9689000
Expense Reimbursements 2608000 2660000 2713000 2768000 2823000 2880000 2937000 2996000 3055000 3116000 3179000 3243000 3307000 3374000 3441000 3510000
Vacancy Allowance (883000) (680000) (466000) (478000) (491000) (504000) (518000) (532000) (547000) (562000) (577000) (593000) (609000) (625000) (642000) (660000)
Total Revenues 7944000 8385000 8844000 9085000 9331000 9585000 9845000 10112000 10386000 10668000 10959000 11258000 11564000 11881000 12205000 12539000
OPERATING EXPENSES
Operating Expenses 2006000 2046000 2087000 2129000 2171000 2215000 2259000 2304000 2350000 2397000 2445000 2494000 2544000 2595000 2647000 2700000
Property Taxes 602000 614000 626000 639000 652000 665000 678000 692000 705000 719000 734000 749000 763000 779000 794000 810000
Total Expenses 2608000 2660000 2713000 2768000 2823000 2880000 2937000 2996000 3055000 3116000 3179000 3243000 3307000 3374000 3441000 3510000
NET OPERATING INCOME 5336000 5725000 6131000 6317000 6508000 6705000 6908000 7116000 7331000 7552000 7780000 8015000 8257000 8507000 8764000 9029000
Annual Debt Service (500 25 -yr Amort) 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160
DSCR 167x 179x 192x 198x 204x 210x 216x 223x 230x 237x 244x 251x 259x 267x 275x
Mortgage Balance $44552039 $43566089 $42529697 $41440281 $40295128 $39091387 $37826060 $36495997 $35097886 $33628244 $32083413 $30459545 $28752597 $26958318 $25072240
BEFORE TAX CASH FLOW 2144840 2533840 2939840 3125840 3316840 3513840 3716840 3924840 4139840 4360840 4588840 4823840 5065840 5315840 5572840
REVERSION CALCULATIONS
Project NOI (Year 16) 9029000
Cap Rate 800
Gross Sales Proceeds 112862500
Less Selling Costs 30 (3385875)
Net Sales Proceeds 109476625
Less Mortgage Balance (25072240)
Net Reversion Proceeds 84404385
Gross Rental Rate $7062 $7252 $7448 $7650 $7858 $8071 $8290 $8515 $8746 $8984 $9229 $9481 $9738 $10005 $10278 $10559
Equity $ (24494000) 00 00 2144840 2533840 2939840 3125840 3316840 3513840 3716840 3924840 4139840 4360840 4588840 4823840 5065840 5315840 89977224
ROE 1428 IRR 88 103 120 128 135 143 152 160 169 178 187 197 207 217 228
ONE BIG SKY CENTER
Billings Montana
BIOSCIENCE - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 5868000 Land Acquisition $ 1250000 $2500 SF
Construction $ 7750000 $15500 SF
Debt Financing $ 10897000 FFampE $ 1250000 $2500 SF
Development $ 3563000 25
Public Investment $ 4000000 Financing $ 773000 65 Loan to Project Costs
TI Allowances $ 5250000 $10500 SF
Contingency $ 929000 5
TOTAL $ 20765000 TOTAL $ 20765000 $41530 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2985 $3075 $3167 $3262 $3360 $3460 $3564 $3671 $3781 $3895 $4012 $4132 $4256 $4384 $4515 $4651 $4790 $4934 $5082 $5234 $5391 3
OPERATING REVENUES
Rent (NNN) 1493000 1537000 1583000 1631000 1680000 1730000 1782000 1836000 1891000 1947000 2006000 2066000 2128000 2192000 2258000 2325000 2395000 2467000 2541000 2617000 2696000
Expense Reimbursements 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
Vacancy Allowance (197000) (152000) (104000) (107000) (110000) (113000) (116000) (119000) (123000) (126000) (129000) (133000) (137000) (141000) (144000) (148000) (153000) (157000) (161000) (166000) (170000)
Total Revenues 1774000 1873000 1976000 2031000 2088000 2145000 2205000 2266000 2328000 2392000 2459000 2528000 2597000 2670000 2745000 2820000 2898000 2980000 3063000 3148000 3236000
OPERATING EXPENSES
Operating Expenses 299000 305000 311000 317000 324000 330000 337000 343000 350000 357000 364000 372000 379000 387000 395000 402000 410000 419000 427000 436000 444000
Property Taxes 179000 183000 186000 190000 194000 198000 202000 206000 210000 214000 218000 223000 227000 232000 236000 241000 246000 251000 256000 261000 266000
Total Expenses 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
NET OPERATING INCOME 1296000 1385000 1479000 1524000 1570000 1617000 1666000 1717000 1768000 1821000 1877000 1933000 1991000 2051000 2114000 2177000 2242000 2310000 2380000 2451000 2526000
Annual Debt Service (500 25 -yr Amort) 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433
DSCR 170x 181x 193x 199x 205x 212x 218x 225x 231x 238x 246x 253x 260x 268x 277x 285x 293x 302x 311x 321x
Mortgage Balance $10672314 $10436133 $10187868 $9926901 $9652583 $9364230 $9061125 $8742512 $8407599 $8055550 $7685490 $7296497 $6887603 $6457788 $6005984 $5531064 $5031847 $4507088 $3955482 $3375655
BEFORE TAX CASH FLOW 531567 620567 714567 759567 805567 852567 901567 952567 1003567 1056567 1112567 1168567 1226567 1286567 1349567 1412567 1477567 1545567 1615567 1686567
REVERSION CALCULATIONS
Project NOI (Year 21) 2526000
Cap Rate 800
Gross Sales Proceeds 31575000
Less Selling Costs 30 (947250)
Net Sales Proceeds 30627750
Less Mortgage Balance (3375655)
Net Reversion Proceeds 27252095
Gross Rental Rate $3942 $4050 $4160 $4276 $4396 $4516 $4642 $4770 $4902 $5036 $5176 $5322 $5468 $5622 $5778 $5936 $6102 $6274 $6448 $6628 $6812
Equity $ (5868000) 00 00 531567 620567 714567 759567 805567 852567 901567 952567 1003567 1056567 1112567 1168567 1226567 1286567 1349567 1412567 1477567 1545567 1615567 28938662
ROE 1421 IRR 91 106 122 129 137 145 154 162 171 180 190 199 209 219 230 241 252 263 275 287
ONE BIG SKY CENTER
Billings Montana
BIOSCIENCE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 7268000 Land Acquisition $ 1250000 $2500 SF
Construction $ 7750000 $15500 SF
Debt Financing $ 13497000 FFampE $ 1250000 $2500 SF
Development $ 3563000 25
Financing $ 773000 65 Loan to Project Costs
TI Allowances $ 5250000 $10500 SF
Contingency $ 929000 5
TOTAL $ 20765000 TOTAL $ 20765000 $41530 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3700 $3811 $3925 $4043 $4164 $4289 $4418 $4551 $4687 $4828 $4972 $5122 $5275 $5434 $5597 $5764 $5937 $6116 $6299 $6488 $6683 3
OPERATING REVENUES
Rent (NNN) 1850000 1906000 1963000 2022000 2082000 2145000 2209000 2275000 2344000 2414000 2486000 2561000 2638000 2717000 2798000 2882000 2969000 3058000 3150000 3244000 3341000
Expense Reimbursements 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
Vacancy Allowance (233000) (180000) (123000) (126000) (130000) (134000) (137000) (141000) (145000) (149000) (153000) (158000) (162000) (167000) (171000) (176000) (181000) (186000) (192000) (197000) (203000)
Total Revenues 2095000 2214000 2337000 2403000 2470000 2539000 2611000 2683000 2759000 2836000 2915000 2998000 3082000 3169000 3258000 3349000 3444000 3542000 3641000 3744000 3848000
OPERATING EXPENSES
Operating Expenses 299000 305000 311000 317000 324000 330000 337000 343000 350000 357000 364000 372000 379000 387000 395000 402000 410000 419000 427000 436000 444000
Property Taxes 179000 183000 186000 190000 194000 198000 202000 206000 210000 214000 218000 223000 227000 232000 236000 241000 246000 251000 256000 261000 266000
Total Expenses 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
NET OPERATING INCOME 1617000 1726000 1840000 1896000 1952000 2011000 2072000 2134000 2199000 2265000 2333000 2403000 2476000 2550000 2627000 2706000 2788000 2872000 2958000 3047000 3138000
Annual Debt Service (500 25 -yr Amort) 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825
DSCR 171x 182x 194x 200x 206x 212x 219x 225x 232x 239x 246x 254x 262x 269x 277x 286x 294x 303x 312x 322x
Mortgage Balance $13218704 $12926171 $12618670 $12295438 $11955668 $11598515 $11223089 $10828456 $10413633 $9977586 $9519231 $9037425 $8530969 $7998602 $7438998 $6850764 $6232434 $5582470 $4899252 $4181079
BEFORE TAX CASH FLOW 670175 779175 893175 949175 1005175 1064175 1125175 1187175 1252175 1318175 1386175 1456175 1529175 1603175 1680175 1759175 1841175 1925175 2011175 2100175
REVERSION CALCULATIONS
Project NOI (Year 21) 3138000
Cap Rate 800
Gross Sales Proceeds 39225000
Less Selling Costs 30 (1176750)
Net Sales Proceeds 38048250
Less Mortgage Balance (4181079)
Net Reversion Proceeds 33867171
Gross Rental Rate $4656 $4788 $4920 $5058 $5200 $5346 $5496 $5648 $5808 $5970 $6136 $6312 $6488 $6672 $6858 $7050 $7250 $7456 $7666 $7882 $8102
Equity $ (7268000) 00 00 670175 779175 893175 949175 1005175 1064175 1125175 1187175 1252175 1318175 1386175 1456175 1529175 1603175 1680175 1759175 1841175 1925175 2011175 35967346
ROE 1427 IRR 92 107 123 131 138 146 155 163 172 181 191 200 210 221 231 242 253 265 277 289
ONE BIG SKY CENTER
Billings Montana
COMMERCIAL OFFICE - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 48554000 Land Acquisition $ 11900000 $3400 SF
Construction $ 68250000 $19500 SF
Debt Financing $ 90173000 Development $ 17063000 25
Financing $ 5025000 65 Loan to Project Costs
TI Allowances $ 30450000 $8700 SF
Contingency $ 6039000 5
TOTAL $ 138727000 TOTAL $ 138727000 $39636 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3570 $3677 $3787 $3901 $4018 $4139 $4263 $4391 $4522 $4658 $4798 $4942 $5090 $5243 $5400 $5562 3
OPERATING REVENUES
Office Rent (NNN) 12495000 12870000 13256000 13654000 14063000 14485000 14920000 15367000 15828000 16303000 16792000 17296000 17815000 18349000 18900000 19467000
Expense Reimbursements 5897000 6015000 6136000 6258000 6383000 6511000 6641000 6774000 6909000 7048000 7188000 7332000 7479000 7628000 7781000 7937000
Vacancy Allowance (1839000) (1416000) (970000) (996000) (1022000) (1050000) (1078000) (1107000) (1137000) (1168000) (1199000) (1231000) (1265000) (1299000) (1334000) (1370000)
Total Revenues 16553000 17469000 18422000 18916000 19424000 19946000 20483000 21034000 21600000 22183000 22781000 23397000 24029000 24678000 25347000 26034000
OPERATING EXPENSES
Operating Expenses 4493000 4583000 4675000 4768000 4863000 4961000 5060000 5161000 5264000 5370000 5477000 5586000 5698000 5812000 5928000 6047000
Property Taxes 1404000 1432000 1461000 1490000 1520000 1550000 1581000 1613000 1645000 1678000 1711000 1746000 1781000 1816000 1853000 1890000
Total Expenses 5897000 6015000 6136000 6258000 6383000 6511000 6641000 6774000 6909000 7048000 7188000 7332000 7479000 7628000 7781000 7937000
NET OPERATING INCOME 10656000 11454000 12286000 12658000 13041000 13435000 13842000 14260000 14691000 15135000 15593000 16065000 16550000 17050000 17566000 18097000
Annual Debt Service (500 25 -yr Amort) 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709
DSCR 168x 181x 194x 200x 206x 212x 219x 225x 232x 239x 247x 254x 262x 270x 278x
Mortgage Balance $88313717 $86359309 $84304910 $82145404 $79875414 $77489287 $74981080 $72344550 $69573129 $66659917 $63597660 $60378732 $56995118 $53438391 $49699695
BEFORE TAX CASH FLOW 4330291 5128291 5960291 6332291 6715291 7109291 7516291 7934291 8365291 8809291 9267291 9739291 10224291 10724291 11240291
REVERSION CALCULATIONS
Project NOI (Year 16) 18097000
Cap Rate 800
Gross Sales Proceeds 226212500
Less Selling Costs 30 (6786375)
Net Sales Proceeds 219426125
Less Mortgage Balance (49699695)
Net Reversion Proceeds 169726430
Gross Rental Rate $5255 $5396 $5541 $5689 $5842 $5999 $6160 $6326 $6496 $6672 $6851 $7037 $7227 $7422 $7623 $7830
Equity $ (48554000) 00 00 4330291 5128291 5960291 6332291 6715291 7109291 7516291 7934291 8365291 8809291 9267291 9739291 10224291 10724291 180966721
ROE 1446 IRR 89 106 123 130 138 146 155 163 172 181 191 201 211 221 232
ONE BIG SKY CENTER
Billings Montana
COMMERCIAL OFFICE - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 11276000 Land Acquisition $ 3750000 $2500 SF
Construction $ 21750000 $14500 SF
Debt Financing $ 20942000 Development $ 5438000 25
Financing $ 1603000 65 Loan to Project Costs
Public Investment $ 12000000 TI Allowances $ 9750000 $6500 SF
Contingency $ 1927000 5
TOTAL $ 44218000 TOTAL $ 44218000 $29479 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $1940 $1998 $2058 $2120 $2183 $2249 $2316 $2386 $2458 $2531 $2607 $2685 $2766 $2849 $2934 $3022 $3113 $3207 $3303 $3402 $3504 3
OPERATING REVENUES
Office Rent (NNN) 2910000 2997000 3087000 3180000 3275000 3373000 3475000 3579000 3686000 3797000 3911000 4028000 4149000 4273000 4402000 4534000 4670000 4810000 4954000 5103000 5256000
Expense Reimbursements 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
Vacancy Allowance (439000) (338000) (231000) (237000) (244000) (250000) (257000) (264000) (271000) (278000) (286000) (293000) (301000) (309000) (318000) (326000) (335000) (344000) (353000) (363000) (373000)
Total Revenues 3949000 4167000 4394000 4511000 4631000 4755000 4883000 5013000 5147000 5285000 5427000 5573000 5722000 5876000 6034000 6197000 6364000 6535000 6712000 6894000 7080000
OPERATING EXPENSES
Operating Expenses 1030000 1051000 1072000 1093000 1115000 1137000 1160000 1183000 1207000 1231000 1256000 1281000 1306000 1332000 1359000 1386000 1414000 1442000 1471000 1501000 1531000
Property Taxes 448000 457000 466000 475000 485000 495000 505000 515000 525000 535000 546000 557000 568000 580000 591000 603000 615000 627000 640000 653000 666000
Total Expenses 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
NET OPERATING INCOME 2471000 2659000 2856000 2943000 3031000 3123000 3218000 3315000 3415000 3519000 3625000 3735000 3848000 3964000 4084000 4208000 4335000 4466000 4601000 4740000 4883000
Annual Debt Service (500 25 -yr Amort) 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098
DSCR 168x 181x 194x 200x 206x 213x 219x 226x 232x 240x 247x 254x 262x 270x 278x 286x 295x 304x 313x 323x
Mortgage Balance $20510195 $20056299 $19579180 $19077651 $18550463 $17996303 $17413791 $16801477 $16157835 $15481264 $14770078 $14022506 $13236687 $12410664 $11542380 $10629673 $9670270 $8661783 $7601699 $6487379
BEFORE TAX CASH FLOW 1001902 1189902 1386902 1473902 1561902 1653902 1748902 1845902 1945902 2049902 2155902 2265902 2378902 2494902 2614902 2738902 2865902 2996902 3131902 3270902
REVERSION CALCULATIONS
Project NOI (Year 21) 4883000
Cap Rate 800
Gross Sales Proceeds 61037500
Less Selling Costs 30 (1831125)
Net Sales Proceeds 59206375
Less Mortgage Balance (6487379)
Net Reversion Proceeds 52718996
Gross Rental Rate $2925 $3003 $3083 $3165 $3250 $3337 $3427 $3518 $3612 $3709 $3809 $3911 $4015 $4123 $4235 $4349 $4466 $4586 $4710 $4838 $4969
Equity $ (11276000) 00 00 1001902 1189902 1386902 1473902 1561902 1653902 1748902 1845902 1945902 2049902 2155902 2265902 2378902 2494902 2614902 2738902 2865902 2996902 3131902 55989898
ROE 1426 IRR 89 106 123 131 139 147 155 164 173 182 191 201 211 221 232 243 254 266 278 290
ONE BIG SKY CENTER
Billings Montana
COMMERCIAL OFFICE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 15476000 Land Acquisition $ 3750000 $2500 SF
Construction $ 21750000 $14500 SF
Debt Financing $ 28742000 Development $ 5438000 25
Financing $ 1603000 65 Loan to Project Costs
TI Allowances $ 9750000 $6500 SF
Contingency $ 1927000 5
TOTAL $ 44218000 TOTAL $ 44218000 $29479 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2655 $2735 $2817 $2901 $2988 $3078 $3170 $3265 $3363 $3464 $3568 $3675 $3785 $3899 $4016 $4136 $4260 $4388 $4520 $4656 $4795 3
OPERATING REVENUES
Office Rent (NNN) 3983000 4102000 4225000 4352000 4482000 4617000 4755000 4898000 5045000 5196000 5352000 5513000 5678000 5848000 6024000 6205000 6391000 6582000 6780000 6983000 7193000
Expense Reimbursements 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
Vacancy Allowance (546000) (421000) (288000) (296000) (304000) (312000) (321000) (330000) (339000) (348000) (358000) (368000) (378000) (388000) (399000) (410000) (421000) (433000) (445000) (457000) (470000)
Total Revenues 4915000 5189000 5475000 5624000 5778000 5937000 6099000 6266000 6438000 6614000 6796000 6983000 7174000 7372000 7575000 7784000 7999000 8218000 8446000 8680000 8920000
OPERATING EXPENSES
Operating Expenses 1030000 1051000 1072000 1093000 1115000 1137000 1160000 1183000 1207000 1231000 1256000 1281000 1306000 1332000 1359000 1386000 1414000 1442000 1471000 1501000 1531000
Property Taxes 448000 457000 466000 475000 485000 495000 505000 515000 525000 535000 546000 557000 568000 580000 591000 603000 615000 627000 640000 653000 666000
Total Expenses 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
NET OPERATING INCOME 3437000 3681000 3937000 4056000 4178000 4305000 4434000 4568000 4706000 4848000 4994000 5145000 5300000 5460000 5625000 5795000 5970000 6149000 6335000 6526000 6723000
Annual Debt Service (500 25 -yr Amort) 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274
DSCR 170x 183x 195x 201x 207x 214x 220x 227x 233x 240x 248x 255x 263x 271x 279x 287x 296x 305x 314x 324x
Mortgage Balance $28149367 $27526413 $26871588 $26183261 $25459718 $24699157 $23899684 $23059309 $22175938 $21247373 $20271300 $19245290 $18166787 $17033106 $15841423 $14588772 $13272032 $11887926 $10433007 $8903651
BEFORE TAX CASH FLOW 1420726 1664726 1920726 2039726 2161726 2288726 2417726 2551726 2689726 2831726 2977726 3128726 3283726 3443726 3608726 3778726 3953726 4132726 4318726 4509726
REVERSION CALCULATIONS
Project NOI (Year 21) 6723000
Cap Rate 800
Gross Sales Proceeds 84037500
Less Selling Costs 30 (2521125)
Net Sales Proceeds 81516375
Less Mortgage Balance (8903651)
Net Reversion Proceeds 72612724
Gross Rental Rate $3641 $3740 $3842 $3947 $4055 $4166 $4280 $4397 $4518 $4641 $4769 $4901 $5035 $5173 $5316 $5463 $5613 $5767 $5927 $6091 $6260
Equity $ (15476000) 00 00 1420726 1664726 1920726 2039726 2161726 2288726 2417726 2551726 2689726 2831726 2977726 3128726 3283726 3443726 3608726 3778726 3953726 4132726 4318726 77122450
ROE 1434 IRR 92 108 124 132 140 148 156 165 174 183 192 202 212 223 233 244 255 267 279 291
ONE BIG SKY CENTER
Billings Montana
RETAIL DINING ENTERTAINMENT - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 33347000 Land Acquisition $ 9000000 $4000 SF
Construction $ 43875000 $19500 SF
Debt Financing $ 61929000 Development $ 8775000 20
Financing $ 3418000 65 Loan to Project Costs
TI Allowances $ 26100000 $11600 SF
Contingency $ 4108000 5
TOTAL $ 95276000 TOTAL $ 95276000 $42345 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Projected Sales per Square Foot $48000 $49440 $50923 $52451 $54024 $55645 $57315 $59034 $60805 $62629 $64508 $66443 $68437 $70490 $72604 $74782 3
Leasable Program 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3840 $3955 $4074 $4196 $4322 $4452 $4585 $4723 $4864 $5010 $5161 $5315 $5475 $5639 $5808 $5983 8 NNN Rent vs Tenant Sales
OPERATING REVENUES
Retail Rent (NNN) 8640000 8899000 9167000 9441000 9725000 10017000 10316000 10627000 10944000 11273000 11612000 11959000 12319000 12688000 13068000 13462000
Expense Reimbursements 3971000 4051000 4132000 4214000 4298000 4385000 4472000 4561000 4653000 4745000 4840000 4938000 5037000 5137000 5240000 5345000
Vacancy Allowance (1261000) (971000) (665000) (683000) (701000) (720000) (739000) (759000) (780000) (801000) (823000) (845000) (868000) (891000) (915000) (940000)
Total Revenues 11350000 11979000 12634000 12972000 13322000 13682000 14049000 14429000 14817000 15217000 15629000 16052000 16488000 16934000 17393000 17867000
OPERATING EXPENSES
Operating Expenses 2888000 2946000 3005000 3065000 3126000 3189000 3252000 3317000 3384000 3451000 3520000 3591000 3663000 3736000 3811000 3887000
Property Taxes 1083000 1105000 1127000 1149000 1172000 1196000 1220000 1244000 1269000 1294000 1320000 1347000 1374000 1401000 1429000 1458000
Total Expenses 3971000 4051000 4132000 4214000 4298000 4385000 4472000 4561000 4653000 4745000 4840000 4938000 5037000 5137000 5240000 5345000
NET OPERATING INCOME 7379000 7928000 8502000 8758000 9024000 9297000 9577000 9868000 10164000 10472000 10789000 11114000 11451000 11797000 12153000 12522000
Annual Debt Service (500 25 -yr Amort) 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369
DSCR 170x 182x 196x 202x 208x 214x 220x 227x 234x 241x 248x 256x 264x 272x 280x
Mortgage Balance $60652082 $59309834 $57898914 $56415809 $54856825 $53218081 $51495496 $49684779 $47781424 $45780688 $43677592 $41466897 $39143099 $36700410 $34132750
BEFORE TAX CASH FLOW 3034631 3583631 4157631 4413631 4679631 4952631 5232631 5523631 5819631 6127631 6444631 6769631 7106631 7452631 7808631
REVERSION CALCULATIONS
Project NOI (Year 21) 12522000
Cap Rate 800
Gross Sales Proceeds 156525000
Less Selling Costs 30 (4695750)
Net Sales Proceeds 151829250
Less Mortgage Balance (34132750)
Net Reversion Proceeds 117696500
Gross Rental Rate $5605 $5756 $5911 $6069 $6232 $6401 $6572 $6750 $6932 $7119 $7312 $7510 $7714 $7922 $8137 $8359
Equity $ (33347000) 00 00 3034631 3583631 4157631 4413631 4679631 4952631 5232631 5523631 5819631 6127631 6444631 6769631 7106631 7452631 125505131
ROE 1458 IRR 91 107 125 132 140 149 157 166 175 184 193 203 213 223 234
ONE BIG SKY CENTER
Billings Montana
RETAIL DINING ENTERTAINMENT - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 10981000 Land Acquisition $ 3000000 $3000 SF
Construction $ 14500000 $14500 SF
Debt Financing $ 20394000 Development $ 2900000 20
Financing $ 1124000 65 Loan to Project Costs
TI Allowances $ 8500000 $8500 SF
Contingency $ 1351000 5
TOTAL $ 31375000 TOTAL $ 31375000 $31375 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Projected Sales per Square Foot $36000 $37080 $38192 $39338 $40518 $41734 $42986 $44275 $45604 $46972 $48381 $49832 $51327 $52867 $54453 $56087 $57769 $59503 $61288 $63126 $65020 3
Leasable Program 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2880 $2966 $3055 $3147 $3241 $3339 $3439 $3542 $3648 $3758 $3870 $3987 $4106 $4229 $4356 $4487 $4622 $4760 $4903 $5050 $5202 8 NNN Rent vs Tenant Sales
OPERATING REVENUES
Retail Rent (NNN) 2880000 2966000 3055000 3147000 3241000 3339000 3439000 3542000 3648000 3758000 3870000 3987000 4106000 4229000 4356000 4487000 4622000 4760000 4903000 5050000 5202000
Expense Reimbursements 776000 791000 807000 824000 840000 857000 874000 891000 909000 928000 946000 965000 984000 1004000 1024000 1045000 1065000 1086000 1108000 1131000 1153000
Vacancy Allowance (366000) (282000) (193000) (199000) (204000) (210000) (216000) (222000) (228000) (234000) (241000) (248000) (255000) (262000) (269000) (277000) (284000) (292000) (301000) (309000) (318000)
Total Revenues 3290000 3475000 3669000 3772000 3877000 3986000 4097000 4211000 4329000 4452000 4575000 4704000 4835000 4971000 5111000 5255000 5403000 5554000 5710000 5872000 6037000
OPERATING EXPENSES
Operating Expenses 418000 426000 435000 444000 452000 462000 471000 480000 490000 500000 510000 520000 530000 541000 552000 563000 574000 585000 597000 609000 621000
Property Taxes 358000 365000 372000 380000 388000 395000 403000 411000 419000 428000 436000 445000 454000 463000 472000 482000 491000 501000 511000 522000 532000
Total Expenses 776000 791000 807000 824000 840000 857000 874000 891000 909000 928000 946000 965000 984000 1004000 1024000 1045000 1065000 1086000 1108000 1131000 1153000
NET OPERATING INCOME 2514000 2684000 2862000 2948000 3037000 3129000 3223000 3320000 3420000 3524000 3629000 3739000 3851000 3967000 4087000 4210000 4338000 4468000 4602000 4741000 4884000
Annual Debt Service (500 25 -yr Amort) 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656
DSCR 176x 188x 200x 206x 212x 219x 225x 232x 239x 246x 254x 261x 269x 277x 286x 294x 303x 312x 322x 331x
Mortgage Balance $19973495 $19531476 $19066842 $18578437 $18065044 $17525385 $16958116 $16361824 $15735025 $15076158 $14383581 $13655572 $12890316 $12085908 $11240344 $10351521 $9417223 $8435125 $7402781 $6317621
BEFORE TAX CASH FLOW 1083344 1253344 1431344 1517344 1606344 1698344 1792344 1889344 1989344 2093344 2198344 2308344 2420344 2536344 2656344 2779344 2907344 3037344 3171344 3310344
REVERSION CALCULATIONS
Project NOI (Year 21) 4884000
Cap Rate 800
Gross Sales Proceeds 61050000
Less Selling Costs 30 (1831500)
Net Sales Proceeds 59218500
Less Mortgage Balance (6317621)
Net Reversion Proceeds 52900879
Gross Rental Rate $3656 $3757 $3862 $3971 $4081 $4196 $4313 $4433 $4557 $4686 $4816 $4952 $5090 $5233 $5380 $5532 $5687 $5846 $6011 $6181 $6355
Equity $ (10981000) 00 00 1083344 1253344 1431344 1517344 1606344 1698344 1792344 1889344 1989344 2093344 2198344 2308344 2420344 2536344 2656344 2779344 2907344 3037344 3171344 56211224
ROE 1471 IRR 99 114 130 138 146 155 163 172 181 191 200 210 220 231 242 253 265 277 289 301
ONE BIG SKY CENTER
Billings Montana
HOTEL - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 39286000 Land Acquisition $ 12000000 $40000 KEY
Construction $ 64500000 $215000 KEY
Debt Financing $ 72960000 FFampE $ 8700000 $29000 KEY
Development $ 18300000 25
Financing $ 3972000 65 Loan to Project Costs
Contingency $ 4774000 5
TOTAL $ 112246000 TOTAL $ 112246000 $374153 KEY
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Number of Rooms 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Daily Rate (ADR) $29700 $30403 $30930 $31858 $32814 $33798 $34812 $35857 $36932 $38040 $39181 $40357 $41568 $42815 $44099 $45422 30
Occupancy Rate 680 720 750 750 750 750 750 750 750 750 750 750 750 750 750 750
OPERATING REVENUES
Rooms Revenue 22115000 23970000 25401000 26163000 26948000 27757000 28590000 29447000 30331000 31241000 32178000 33143000 34137000 35161000 36216000 37303000 639
FampB Revenue 11144000 12079000 12800000 13184000 13579000 13987000 14407000 14839000 15284000 15743000 16215000 16701000 17202000 17718000 18250000 18797000 322
Other Revenue 1350000 1463000 1550000 1597000 1645000 1694000 1745000 1797000 1851000 1907000 1964000 2023000 2083000 2146000 2210000 2277000 39
Total Revenues 34609000 37512000 39751000 40944000 42172000 43438000 44742000 46083000 47466000 48891000 50357000 51867000 53422000 55025000 56676000 58377000
OPERATING EXPENSES Rooms FampB Other
Departmental Expenses 13292000 14406000 15266000 15725000 16196000 16682000 17183000 17698000 18229000 18777000 19340000 19919000 20516000 21132000 21766000 22419000 213 700 586 384
Undistributed Expenses 8998000 9753000 10335000 10645000 10965000 11294000 11633000 11982000 12341000 12712000 13093000 13485000 13890000 14307000 14736000 15178000 260
Management Fee 1038000 1125000 1193000 1228000 1265000 1303000 1342000 1382000 1424000 1467000 1511000 1556000 1603000 1651000 1700000 1751000 30
Insurance 346000 375000 398000 409000 422000 434000 447000 461000 475000 489000 504000 519000 534000 550000 567000 584000 10
Property Taxes 1281000 1388000 1471000 1515000 1560000 1607000 1655000 1705000 1756000 1809000 1863000 1919000 1977000 2036000 2097000 2160000 37
CAPEX Reserve 346000 750000 1193000 1228000 1265000 1303000 1342000 1382000 1424000 1467000 1511000 1556000 1603000 1651000 1700000 1751000
Total Expenses 25301000 27797000 29856000 30750000 31673000 32623000 33602000 34610000 35649000 36721000 37822000 38954000 40123000 41327000 42566000 43843000
NET OPERATING INCOME 9308000 9715000 9895000 10194000 10499000 10815000 11140000 11473000 11817000 12170000 12535000 12913000 13299000 13698000 14110000 14534000
Annual Debt Service (500 25 -yr Amort) 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203
DSCR 182x 190x 193x 199x 205x 211x 218x 224x 231x 238x 245x 252x 260x 268x 276x
Mortgage Balance $71455633 $69874299 $68212062 $66464781 $64628106 $62697463 $60668045 $58534798 $56292410 $53935297 $51457590 $48853119 $46115398 $43237610 $40212589
BEFORE TAX CASH FLOW 4189797 4596797 4776797 5075797 5380797 5696797 6021797 6354797 6698797 7051797 7416797 7794797 8180797 8579797 8991797
REVERSION CALCULATIONS
Project NOI (Year 16) 14534000
Cap Rate 800
Gross Sales Proceeds 181675000
Less Selling Costs 30 (5450250)
Net Sales Proceeds 176224750
Less Mortgage Balance (40212589)
Net Reversion Proceeds 136012161
NOI Margin 269 259 249 249 249 249 249 249 249 249 249 249 249 249 249 249
Equity $ (39286000) 00 00 4189797 4596797 4776797 5075797 5380797 5696797 6021797 6354797 6698797 7051797 7416797 7794797 8180797 8579797 145003959
ROE 1455 IRR 107 117 122 129 137 145 153 162 171 179 189 198 208 218 229
ONE BIG SKY CENTER
Billings Montana
HOTEL - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 15855000 Land Acquisition $ 6000000 $30000 KEY
Construction $ 32000000 $160000 KEY
Debt Financing $ 29446000 FFampE $ 4000000 $20000 KEY
Development $ 9000000 25
Public Investment $ 10000000 Financing $ 1953000 65 Loan to Project Costs
Contingency $ 2348000 5
TOTAL $ 55301000 TOTAL $ 55301000 $276505 KEY
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Rooms 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200
Average Daily Rate (ADR) $17900 $18324 $18641 $19201 $19777 $20370 $20981 $21611 $22259 $22927 $23614 $24323 $25053 $25804 $26578 $27376 $28197 $29043 $29914 $30811 $31736 30
Occupancy Rate 680 720 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750
OPERATING REVENUES
Rooms Revenue 8886000 9631000 10206000 10512000 10828000 11153000 11487000 11832000 12187000 12552000 12929000 13317000 13716000 14128000 14552000 14988000 15438000 15901000 16378000 16869000 17375000 639
FampB Revenue 4478000 4853000 5143000 5297000 5456000 5620000 5788000 5962000 6141000 6325000 6515000 6711000 6912000 7119000 7333000 7553000 7779000 8013000 8253000 8500000 8755000 322
Other Revenue 542000 588000 623000 642000 661000 681000 701000 722000 744000 766000 789000 813000 837000 862000 888000 915000 942000 970000 1000000 1030000 1060000 39
Total Revenues 13906000 15072000 15972000 16451000 16945000 17454000 17976000 18516000 19072000 19643000 20233000 20841000 21465000 22109000 22773000 23456000 24159000 24884000 25631000 26399000 27190000
OPERATING EXPENSES Rooms FampB Other
Departmental Expenses 5341000 5788000 6134000 6318000 6508000 6703000 6903000 7111000 7325000 7544000 7770000 8004000 8244000 8491000 8746000 9008000 9278000 9557000 9844000 10138000 10442000 213 700 586 384
Undistributed Expenses 3616000 3919000 4153000 4277000 4406000 4538000 4674000 4814000 4959000 5107000 5261000 5419000 5581000 5748000 5921000 6099000 6281000 6470000 6664000 6864000 7069000 260
Management Fee 417000 452000 479000 494000 508000 524000 539000 555000 572000 589000 607000 625000 644000 663000 683000 704000 725000 747000 769000 792000 816000 30
Insurance 139000 151000 160000 165000 169000 175000 180000 185000 191000 196000 202000 208000 215000 221000 228000 235000 242000 249000 256000 264000 272000 10
Property Taxes 515000 558000 591000 609000 627000 646000 665000 685000 706000 727000 749000 771000 794000 818000 843000 868000 894000 921000 948000 977000 1006000 37
CAPEX Reserve 139000 301000 479000 494000 508000 524000 539000 555000 572000 589000 607000 625000 644000 663000 683000 704000 725000 747000 769000 792000 816000
Total Expenses 10167000 11169000 11996000 12357000 12726000 13110000 13500000 13905000 14325000 14752000 15196000 15652000 16122000 16604000 17104000 17618000 18145000 18691000 19250000 19827000 20421000
NET OPERATING INCOME 3739000 3903000 3976000 4094000 4219000 4344000 4476000 4611000 4747000 4891000 5037000 5189000 5343000 5505000 5669000 5838000 6014000 6193000 6381000 6572000 6769000
Annual Debt Service (500 25 -yr Amort) 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661
DSCR 181x 189x 192x 198x 204x 210x 217x 223x 230x 237x 244x 251x 259x 267x 274x 283x 291x 300x 309x 318x
Mortgage Balance $28838851 $28200639 $27529775 $26824588 $26083322 $25304132 $24485078 $23624118 $22719111 $21767801 $20767821 $19716680 $18611760 $17450311 $16229439 $14946106 $13597115 $12179106 $10688550 $9121735
BEFORE TAX CASH FLOW 1673339 1837339 1910339 2028339 2153339 2278339 2410339 2545339 2681339 2825339 2971339 3123339 3277339 3439339 3603339 3772339 3948339 4127339 4315339 4506339
REVERSION CALCULATIONS
Project NOI (Year 21) 6769000
Cap Rate 800
Gross Sales Proceeds 84612500
Less Selling Costs 30 (2538375)
Net Sales Proceeds 82074125
Less Mortgage Balance (9121735)
Net Reversion Proceeds 72952390
NOI Margin 269 259 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249
Equity $ (15855000) 00 00 1673339 1837339 1910339 2028339 2153339 2278339 2410339 2545339 2681339 2825339 2971339 3123339 3277339 3439339 3603339 3772339 3948339 4127339 4315339 77458730
ROE 1427 IRR 106 116 120 128 136 144 152 161 169 178 187 197 207 217 227 238 249 260 272 284
ONE BIG SKY CENTER
Billings Montana
HOTEL - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 19355000 Land Acquisition $ 6000000 $30000 KEY
Construction $ 32000000 $160000 KEY
Debt Financing $ 35946000 FFampE $ 4000000 $20000 KEY
Development $ 9000000 25
Financing $ 1953000 65 Loan to Project Costs
Contingency $ 2348000 5
TOTAL $ 55301000 TOTAL $ 55301000 $276505 KEY
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Rooms 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200
Average Daily Rate (ADR) $22100 $22623 $23015 $23706 $24417 $25150 $25904 $26681 $27482 $28306 $29155 $30030 $30931 $31859 $32814 $33799 $34813 $35857 $36933 $38041 $39182 30
Occupancy Rate 680 720 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750
OPERATING REVENUES
Rooms Revenue 10970000 11891000 12601000 12979000 13368000 13769000 14182000 14608000 15046000 15498000 15962000 16441000 16935000 17443000 17966000 18505000 19060000 19632000 20221000 20827000 21452000 639
FampB Revenue 5528000 5992000 6350000 6540000 6736000 6938000 7146000 7361000 7582000 7810000 8043000 8285000 8534000 8790000 9053000 9325000 9605000 9893000 10190000 10495000 10810000 322
Other Revenue 670000 726000 769000 792000 816000 840000 866000 892000 918000 946000 974000 1003000 1034000 1065000 1097000 1129000 1163000 1198000 1234000 1271000 1309000 39
Total Revenues 17168000 18609000 19720000 20311000 20920000 21547000 22194000 22861000 23546000 24254000 24979000 25729000 26503000 27298000 28116000 28959000 29828000 30723000 31645000 32593000 33571000
OPERATING EXPENSES Rooms FampB Other
Departmental Expenses 6593000 7147000 7573000 7800000 8034000 8275000 8523000 8780000 9043000 9315000 9593000 9881000 10179000 10484000 10798000 11122000 11455000 11799000 12153000 12517000 12893000 213 700 586 384
Undistributed Expenses 4464000 4838000 5127000 5281000 5439000 5602000 5770000 5944000 6122000 6306000 6495000 6690000 6891000 7097000 7310000 7529000 7755000 7988000 8228000 8474000 8728000 260
Management Fee 515000 558000 592000 609000 628000 646000 666000 686000 706000 728000 749000 772000 795000 819000 843000 869000 895000 922000 949000 978000 1007000 30
Insurance 172000 186000 197000 203000 209000 215000 222000 229000 235000 243000 250000 257000 265000 273000 281000 290000 298000 307000 316000 326000 336000 10
Property Taxes 635000 689000 730000 752000 774000 797000 821000 846000 871000 897000 924000 952000 981000 1010000 1040000 1071000 1104000 1137000 1171000 1206000 1242000 37
CAPEX Reserve 172000 372000 592000 609000 628000 646000 666000 686000 706000 728000 749000 772000 795000 819000 843000 869000 895000 922000 949000 978000 1007000
Total Expenses 12551000 13790000 14811000 15254000 15712000 16181000 16668000 17171000 17683000 18217000 18760000 19324000 19906000 20502000 21115000 21750000 22402000 23075000 23766000 24479000 25213000
NET OPERATING INCOME 4617000 4819000 4909000 5057000 5208000 5366000 5526000 5690000 5863000 6037000 6219000 6405000 6597000 6796000 7001000 7209000 7426000 7648000 7879000 8114000 8358000
Annual Debt Service (500 25 -yr Amort) 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641
DSCR 183x 191x 195x 201x 207x 213x 219x 226x 233x 239x 247x 254x 262x 270x 278x 286x 294x 303x 312x 322x
Mortgage Balance $35204827 $34425734 $33606781 $32745929 $31841035 $30889844 $29889988 $28838978 $27734196 $26572892 $25352173 $24069000 $22720177 $21302345 $19811975 $18245355 $16598583 $14867560 $13047974 $11135294
BEFORE TAX CASH FLOW 2095359 2297359 2387359 2535359 2686359 2844359 3004359 3168359 3341359 3515359 3697359 3883359 4075359 4274359 4479359 4687359 4904359 5126359 5357359 5592359
REVERSION CALCULATIONS
Project NOI (Year 21) 8358000
Cap Rate 800
Gross Sales Proceeds 104475000
Less Selling Costs 30 (3134250)
Net Sales Proceeds 101340750
Less Mortgage Balance (11135294)
Net Reversion Proceeds 90205456
NOI Margin 269 259 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249
Equity $ (19355000) 00 00 2095359 2297359 2387359 2535359 2686359 2844359 3004359 3168359 3341359 3515359 3697359 3883359 4075359 4274359 4479359 4687359 4904359 5126359 5357359 95797815
ROE 1444 IRR 108 119 123 131 139 147 155 164 173 182 191 201 211 221 231 242 253 265 277 289
ONE BIG SKY CENTER
Billings Montana
ECONOMIC amp FISCAL IMPACT ESTIMATES (HIGH)
PHASE 1 PHASE 2
Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M) Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M)
HOTEL 200 KEYS $ 197 Direct 160 Direct $ 59 Direct $ 02 Income 300 KEYS $ 398 Direct 240 Direct $ 119 Direct $ 05 Income
$ 58 Indirect 34 Indirect $ 17 Indirect $ 01 Corp $ 117 Indirect 50 Indirect $ 34 Indirect $ 02 Corp
$ 32 Induced 21 Induced $ 10 Induced $ 09 Lodging $ 65 Induced 31 Induced $ 21 Induced $ 18 Lodging
$ 288 Total 214 Total $ 86 Total $ 07 Property $ 580 Total 321 Total $ 174 Total $ 15 Property
$ 19 Total $ 39 Total
RETAIL DINING ENTERTAINMENT 100000 SF $ 363 Direct 496 Direct $ 145 Direct $ 04 Income 225000 SF $ 1088 Direct 1221 Direct $ 435 Direct $ 13 Income
$ 23 Indirect 17 Indirect $ 07 Indirect $ 01 Corp $ 69 Indirect 41 Indirect $ 21 Indirect $ 03 Corp
$ 27 Induced 25 Induced $ 11 Induced $ 04 Property $ 81 Induced 61 Induced $ 34 Induced $ 11 Property
$ 413 Total 537 Total $ 163 Total $ 09 Total $ 1239 Total 1323 Total $ 490 Total $ 28 Total
COMMERCIAL OFFICE 150000 SF $ 1259 Direct 600 Direct $ 357 Direct $ 15 Income 350000 SF $ 3947 Direct 1400 Direct $ 1119 Direct $ 46 Income
$ 304 Indirect 205 Indirect $ 95 Indirect $ 05 Corp $ 954 Indirect 479 Indirect $ 299 Indirect $ 15 Corp
$ 211 Induced 174 Induced $ 86 Induced $ 05 Property $ 662 Induced 405 Induced $ 270 Induced $ 15 Property
$ 1774 Total 979 Total $ 538 Total $ 24 Total $ 5563 Total 2284 Total $ 1688 Total $ 75 Total
BIOSCIENCE 50000 SF $ 301 Direct 167 Direct $ 137 Direct $ 05 Income 125000 SF $ 1010 Direct 417 Direct $ 459 Direct $ 16 Income
$ 35 Indirect 25 Indirect $ 13 Indirect $ 01 Corp $ 118 Indirect 62 Indirect $ 42 Indirect $ 04 Corp
$ 70 Induced 51 Induced $ 25 Induced $ 02 Property $ 236 Induced 128 Induced $ 85 Induced $ 06 Property
$ 406 Total 243 Total $ 175 Total $ 08 Total $ 1364 Total 607 Total $ 587 Total $ 26 Total
HEALTHCARE 250000 SF $ 1252 Direct 694 Direct $ 834 Direct $ 28 Income 600000 SF $ 4040 Direct 1667 Direct $ 2690 Direct $ 91 Income
$ 187 Indirect 134 Indirect $ 61 Indirect $ 05 Corp $ 604 Indirect 322 Indirect $ 198 Indirect $ 16 Corp
$ 404 Induced 309 Induced $ 154 Induced $ 09 Property $ 1303 Induced 742 Induced $ 495 Induced $ 30 Property
$ 1844 Total 1138 Total $ 1049 Total $ 43 Total $ 5947 Total 2731 Total $ 3383 Total $ 137 Total
RESIDENTIAL 300 DU $ 09 Property 300 DU $ 33 Property
SENIOR HOUSING 150 DU $ 04 Property 300 DU $ 11 Property
MIXED-USE INFILL DEVELOPMENT 100000 SF $ 240 Direct 179 Direct $ 77 Direct $ 03 Income 250000 SF $ 806 Direct 471 Direct $ 257 Direct $ 09 Income
Retail 20 $ 45 Indirect 31 Indirect $ 14 Indirect $ 01 Corp $ 152 Indirect 77 Indirect $ 47 Indirect $ 03 Corp
Office 20 $ 34 Induced 28 Induced $ 14 Induced $ 02 Property $ 112 Induced 71 Induced $ 46 Induced $ 10 Property
Residential 60 $ 319 Total 238 Total $ 104 Total $ 05 Total $ 1070 Total 620 Total $ 350 Total $ 23 Total
CONVENTION CENTER 150000 SF $ 147 Direct 119 Direct $ 44 Direct $ 02 Income
(Visitor Spending) $ 43 Indirect 25 Indirect $ 13 Indirect $ 01 Corp
$ 24 Induced 15 Induced $ 08 Induced $ 06 Lodging
$ 214 Total 160 Total $ 64 Total $ 08 Total
TOTAL ANNUAL $ 3759 Direct 2416 Direct $ 1652 Direct $ 59 Income $ 16341 Direct 8662 Direct $ 7299 Direct $ 259 Income
$ 696 Indirect 470 Indirect $ 220 Indirect $ 14 Corp $ 2950 Indirect 1664 Indirect $ 938 Indirect $ 62 Corp
$ 802 Induced 623 Induced $ 308 Induced $ 15 Lodging $ 3537 Induced 2276 Induced $ 1365 Induced $ 38 Lodging
$ 5257 Total 3509 Total $ 2180 Total $ 42 Property $ 22827 Total 12602 Total $ 9602 Total $ 188 Property
$ 130 Total $ 546 Total
AGGREGATE TOTAL (30 YEARS) $ 250126 $ 103729 $ 6170 $ 673652 $ 283016 $ 16156
340x 705x
Aggregate Effective Income Tax Rate 2697 Based on BEA Data
Effective Corporate Income Tax Rate 0270 MT DOR Collections BEA GDP
Lodging Tax 7 (4 Lodging Facility Use Tax + 3 Lodging Facility Sales Tax)
Escalation Assumption 30
ONE BIG SKY CENTER
Billings Montana
ECONOMIC amp FISCAL IMPACT ESTIMATES (LOW)
PHASE 1 PHASE 2
Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M) Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M)
HOTEL 200 KEYS $ 160 Direct 160 Direct $ 54 Direct $ 02 Income 300 KEYS $ 398 Direct 240 Direct $ 98 Direct $ 04 Income
$ 47 Indirect 34 Indirect $ 15 Indirect $ 01 Corp $ 117 Indirect 50 Indirect $ 28 Indirect $ 02 Corp
$ 26 Induced 21 Induced $ 09 Induced $ 07 Lodging $ 65 Induced 31 Induced $ 17 Induced $ 18 Lodging
$ 233 Total 214 Total $ 78 Total $ 06 Property $ 580 Total 321 Total $ 143 Total $ 15 Property
$ 16 Total $ 38 Total
RETAIL DINING ENTERTAINMENT 100000 SF $ 363 Direct 496 Direct $ 145 Direct $ 04 Income 225000 SF $ 1088 Direct 1221 Direct $ 435 Direct $ 13 Income
$ 23 Indirect 17 Indirect $ 07 Indirect $ 01 Corp $ 69 Indirect 41 Indirect $ 21 Indirect $ 03 Corp
$ 27 Induced 25 Induced $ 11 Induced $ 04 Property $ 81 Induced 61 Induced $ 34 Induced $ 11 Property
$ 413 Total 537 Total $ 163 Total $ 09 Total $ 1239 Total 1323 Total $ 490 Total $ 28 Total
COMMERCIAL OFFICE 150000 SF $ 1142 Direct 600 Direct $ 324 Direct $ 13 Income 350000 SF $ 3247 Direct 1400 Direct $ 920 Direct $ 37 Income
$ 276 Indirect 205 Indirect $ 87 Indirect $ 04 Corp $ 785 Indirect 479 Indirect $ 246 Indirect $ 12 Corp
$ 191 Induced 174 Induced $ 78 Induced $ 05 Property $ 545 Induced 405 Induced $ 222 Induced $ 15 Property
$ 1609 Total 979 Total $ 488 Total $ 22 Total $ 4577 Total 2284 Total $ 1389 Total $ 64 Total
BIOSCIENCE 50000 SF $ 273 Direct 167 Direct $ 124 Direct $ 04 Income 125000 SF $ 831 Direct 417 Direct $ 378 Direct $ 13 Income
$ 32 Indirect 25 Indirect $ 11 Indirect $ 01 Corp $ 97 Indirect 62 Indirect $ 35 Indirect $ 03 Corp
$ 64 Induced 51 Induced $ 23 Induced $ 02 Property $ 194 Induced 128 Induced $ 70 Induced $ 06 Property
$ 368 Total 243 Total $ 158 Total $ 07 Total $ 1122 Total 607 Total $ 483 Total $ 22 Total
HEALTHCARE 250000 SF $ 1136 Direct 694 Direct $ 756 Direct $ 26 Income 600000 SF $ 3324 Direct 1667 Direct $ 2213 Direct $ 75 Income
$ 170 Indirect 134 Indirect $ 56 Indirect $ 05 Corp $ 497 Indirect 322 Indirect $ 163 Indirect $ 13 Corp
$ 366 Induced 309 Induced $ 139 Induced $ 09 Property $ 1072 Induced 742 Induced $ 408 Induced $ 30 Property
$ 1672 Total 1138 Total $ 951 Total $ 39 Total $ 4893 Total 2731 Total $ 2783 Total $ 118 Total
RESIDENTIAL 300 DU $ 08 Property 300 DU $ 33 Property
SENIOR HOUSING 150 DU $ 03 Property 300 DU $ 11 Property
MIXED-USE INFILL DEVELOPMENT 100000 SF $ 225 Direct 179 Direct $ 72 Direct $ 03 Income 250000 SF $ 706 Direct 471 Direct $ 228 Direct $ 08 Income
Retail 20 $ 41 Indirect 31 Indirect $ 13 Indirect $ 01 Corp $ 128 Indirect 77 Indirect $ 40 Indirect $ 03 Corp
Office 20 $ 31 Induced 28 Induced $ 13 Induced $ 01 Property $ 96 Induced 71 Induced $ 39 Induced $ 10 Property
Residential 60 $ 297 Total 238 Total $ 98 Total $ 05 Total $ 929 Total 620 Total $ 307 Total $ 21 Total
CONVENTION CENTER 150000 SF $ 139 Direct 139 Direct $ 46 Direct $ 02 Income
(Visitor Spending) $ 41 Indirect 29 Indirect $ 13 Indirect $ 01 Corp
$ 23 Induced 18 Induced $ 08 Induced $ 06 Lodging
$ 202 Total 186 Total $ 68 Total $ 08 Total
TOTAL ANNUAL $ 3436 Direct 2435 Direct $ 1521 Direct $ 54 Income $ 13783 Direct 8384 Direct $ 6127 Direct $ 217 Income
$ 630 Indirect 474 Indirect $ 202 Indirect $ 13 Corp $ 2461 Indirect 1610 Indirect $ 780 Indirect $ 52 Corp
$ 728 Induced 626 Induced $ 282 Induced $ 13 Lodging $ 2940 Induced 2201 Induced $ 1133 Induced $ 33 Lodging
$ 4795 Total 3535 Total $ 2005 Total $ 38 Property $ 19183 Total 12195 Total $ 8040 Total $ 178 Property
$ 118 Total $ 480 Total
AGGREGATE TOTAL (30 YEARS) $ 194508 $ 81357 $ 4781 $ 518608 $ 217319 $ 12946
263x 565x
Aggregate Effective Income Tax Rate 2697 Based on BEA Data
Effective Corporate Income Tax Rate 0270 MT DOR Collections BEA GDP
Lodging Tax 7 (4 Lodging Facility Use Tax + 3 Lodging Facility Sales Tax)
Escalation Assumption 20
ONE BIG SKY CENTER
Billings Montana
ECONOMIC amp FISCAL IMPACTS
PHASE 1 FULL BUILDOUT
LOW HIGH LOW HIGH
PROGRAM 10 Million SF 10 Million SF 40 Million SF 50 Million SF
PRIVATE INVESTMENT $3270 Million $3520 Million $10 Billion $20 Billion
VISITATION 10 Million 10 Million 40 Million 40 Million
ECONOMIC OUTPUT 4794618805 (Annually) 5257467756 (Annually) 1918349973 (Annually) 2282740941 (Annually)
(Direct Indirect amp Induced)
EMPLOYMENT 3535 Jobs 3509 Jobs 12195 Jobs 12602 Jobs
(Direct Indirect amp Induced)
EARNINGS 2005455783 (Annually) 2180306006 (Annually) 804037145 (Annually) 9602425147 (Annually)
(Direct Indirect amp Induced)
FISCAL IMPACTS 117843492 (Annually) 1296944889 (Annually) 479704742 (Annually) 5459243472 (Annually)
4780684117 (30 years) 6170269226 (30 years) 1294591687 (30 years) 1615599362 (30 years)
ONE BIG SKY CENTER
Billings Montana
MASTER PROJECT BUDGET - PHASED
TOTAL PHASE 1 PHASE 2
USES OF FUNDS ($MM)
PRIVATE
Hotel $ 1675 $ 553 $ 1122
Retail Dining Entertainment $ 1267 $ 314 $ 953
Commerical Office $ 1829 $ 442 $ 1387
Bioscience $ 907 $ 208 $ 700
Healthcare $ 4860 $ 1015 $ 3846
Residential $ 2894 $ 633 $ 2261
Senior Housing $ 1069 $ 291 $ 778
Mixed-Use Renovation $ 792 $ 182 $ 611
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 322 $ 322 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
ONE BIG SKY CENTER
Billings Montana
USES OF FUNDS - PHASED
TOTAL PHASE 1 PHASE 2
USES OF FUNDS ($MM)
PRIVATE
Land $ 1013 $ 248 $ 765
Construction $ 7838 $ 1711 $ 6128
FFampE $ 726 $ 137 $ 589
Development $ 2175 $ 450 $ 1725
Financing $ 483 $ 101 $ 382
TI Allowances $ 2036 $ 485 $ 1551
Contingency $ 659 $ 140 $ 519
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 687 $ 687 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
ONE BIG SKY CENTER
Billings Montana
SOURCES amp USES - PHASED
TOTAL PHASE 1 PHASE 2
SOURCES OF FUNDS ($MM)
PRIVATE
Equity Investment $ 4370 $ 1023 $ 3347
Debt Financing $ 10560 $ 2249 $ 8311
PUBLIC
Public Investment $ 2292 $ 1817 $ 475
bull City
bull State
bull Federal
TOTAL $ 17222 $ 5089 $ 12133
USES OF FUNDS ($MM)
PRIVATE
Land $ 1013 $ 248 $ 765
Construction $ 7838 $ 1711 $ 6128
FFampE $ 726 $ 137 $ 589
Development $ 2175 $ 450 $ 1725
Financing $ 483 $ 101 $ 382
TI Allowances $ 2036 $ 485 $ 1551
Contingency $ 659 $ 140 $ 519
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 687 $ 687 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
PRIVATE 1493002000 327189000 1165813000
PUBLIC 229157000 181689000 47468000
ONE BIG SKY CENTER
Billings Montana
SOURCES amp USES - PHASED
TOTAL PHASE 1 PHASE 2
SOURCES OF FUNDS ($MM)
PRIVATE
Equity Investment $ 4370 $ 1023 $ 3347
Debt Financing $ 10560 $ 2249 $ 8311
PUBLIC
City Investment $ 602 $ 365 $ 237
State Investment $ 1689 $ 1452 $ 237
TOTAL $ 17222 $ 5089 $ 12133
USES OF FUNDS ($MM)
PRIVATE
Land $ 1047 $ 282 $ 765
Construction $ 8074 $ 1946 $ 6128
FFampE $ 726 $ 137 $ 589
Development $ 2237 $ 512 $ 1725
Financing $ 497 $ 115 $ 382
TI Allowances $ 2036 $ 485 $ 1551
Contingency $ 678 $ 160 $ 519
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 322 $ 322 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
PRIVATE 1493002000 327189000 1165813000
PUBLIC 229157000 181689000 47468000
ONE BIG SKY CENTER
Billings Montana
GAP ANALYSIS - PHASE 1
HOTEL RETAIL OFFICE BIOSCIENCE HEALTHCARE RESIDENTIAL SR HOUSING TOTAL
200 KEYS 100000 SF 150000 SF 50000 SF 250000 SF 300 DU 150 DU
MARKET CONDITIONS $15441 Night $2484 SF $1673 SF $2575 SF $35012 SF $1518 MO $1389 MO
(Current Dollars) Avg Daily Rate NNN Rental Rate NNN Rental Rate NNN Rental Rate Building Value Avg Rental Rate Avg Rental Rate
REQUIRED FOR DEVELOPMENT $19064 Night $2484 SF $2290 SF $3192 SF $35012 SF $1829 MO $1691 MO
(Current Dollars) Avg Daily Rate NNN Rental Rate NNN Rental Rate NNN Rental Rate Building Value Avg Rental Rate Avg Rental Rate
PROJECTED VALUE ($M) $ 453 $ 314 $ 322 $ 168 $ 1015 $ 561 $ 258 $ 3090
PROJECTED COST ($M) $ 553 $ 314 $ 442 $ 208 $ 1015 $ 633 $ 291 $ 3455
GAP ($M) ($ 100) $ - 0 ($ 120) ($ 40) $ - 0 ($ 72) ($ 33) ($ 365)
ONE BIG SKY CENTER
Billings Montana
PROGRAM amp PHASING
PHASE 1 PHASE 2 TOTAL
HOTEL 200 KEYS 300 KEYS 500 KEYS
160000 SF 240000 SF 400000 SF
RETAIL DINING ENTERTAINMENT 100000 SF 225000 SF 325000 SF
COMMERCIAL OFFICE 150000 SF 350000 SF 500000 SF
BIOSCIENCE 50000 SF 125000 SF 175000 SF
HEALTHCARE 250000 SF 600000 SF 850000 SF
Ambulatory Medical Wellness 75000 SF 400000 SF 475000 SF
Medical Office 175000 SF 200000 375000 SF
RESIDENTIAL 300 DU 800 DU 1100 DU
300000 SF 800000 SF 1100000 SF
SENIOR HOUSING 150 DU 300 DU 450 DU
105000 SF 210000 SF 315000 SF
MIXED-USE INFILL DEVELOPMENT 100000 SF 250000 SF 350000 SF
CONVENTION CENTER 100000 SF 50000 SF 150000 SF
CIVIC 80000 SF 50000 SF 130000 SF
PARKING STRUCTURE 1030 Stalls 827 Stalls 1857 Stalls Residential assumed to separately build and finance its own parking in Phase 2
TOTAL (NIC Parking) 1395000 SF 2900000 SF 4295000 SF
Page 5: PROGRAM & VISION STATEMENT · program & vision statement ONE Big Sky District is a large, mixed-use, multi-anchor program supporting broad development goals driving the long-term

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 66

PROGRAM amp VISION STATEMENT

There are a number of key drivers that define the opportunity for major economic development generated from the ONE Big Sky District and certain constraints that must be understood and addressed including

KEY DRIVERSbull A dynamic economic development community energized to take actionbull Public-private partnerships (P3) are an emerging and proven national trendbull A stable economic base for the futurebull An opportunity to define an urban landscape which can support major economic developmentbull Lifestyle amenities and character in the community and region that can become the foundation to an authentic ldquoBillings and

Montana Experiencerdquobull Opportunities for important community anchors that can drive economic development

CONSTRAINTSbull An uncertain political climate and environment at the local and state levelsbull A massive and evolving jobs dilemma in Billingsbull Limited proven model for public finance in support of major economic developmentbull Lack of accurate information on the project circulating in the communitybull Without vision and an action plan Billings will have limited appeal with institutional capital investors

KEY DRIVERS CONSTRAINTS

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 77

PROGRAM amp VISION STATEMENT

Based on our preliminary market analysis the City of Billings has the potential to support a diverse program in the ONE Big Sky Center Development Districts of the magnitude as described below

While these forecasts are preliminary and based primarily on macro-level demand analysis the demographic strength economic base industry growth metrics combined with the regional trade area of Billings indicate that growth patterns will support a robust development program over a 15 to 20 year planning horizon

PROGRAM STATEMENT

Program

Gap Analysis - Phase 1

Sources amp Uses

SOURCES OF FUNDS

Phase 1

Phase 1

PRIVATEPUBLIC327189000181689000

SOURCES OF FUNDS

Full Buildout

Full Buildout

PRIVATEPUBLIC1493002000229157000

Sources amp Uses (Simplified)

SOURCES OF FUNDS

Phase 1

Phase 1

PRIVATEPUBLIC327189000181689000

SOURCES OF FUNDS

Full Buildout

Full Buildout

PRIVATEPUBLIC1493002000229157000

MPB by Uses

MPB by Component

Economic amp Fiscal Summary

Economic amp Fiscal Calcs LOW

Economic amp Fiscal Calcs HIGH

Hotel - Phase 1

Hotel - Phase 1 (Gap)

Hotel - Phase 2

Retail - Phase 1

Retail - Phase 2

Office - Phase 1

Office - Phase 1 (Gap)

Office - Phase 2

Bioscience - Phase 1

Bioscience - Phase 1 (Gap)

Bioscience - Phase 2

Health - Phase 1

Health - Phase 2

Medical Office - Phase 1

Medical Office - Phase 2

Residential - Phase 1

Residential - Phase 1 (Gap)

Residential - Phase 2

Senior Housing - Phase 1

Senior Housing - Phase 1 (Gap)

Senior Housing - Phase 2

Mixed-Use Infill - Phase 1

Mixed-Use Infill - Phase 2

Convention - Phase 1

Civic - Phase 1

Parking - Phase 1

Parking - Phase 2

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 88

PROGRAM amp VISION STATEMENT

Why the time is now for this project

- Billings needs a defined vision and plan that will drive our economic future

- Serious workforce challenges in that will only get worse in upcoming years

- Flat economic growth which will result in a growing tax burden on existing property owners

- Billings is in a regional competition ndash with communities around Billings making large investments in their amenities and infrastructure to attract the businesses and workforce of tomorrow

URGENT ISSUES REQUIRING ACTION

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ONE BIG SKY CENTER
Billings Montana
STRUCTURED PARKING - PHASE 2
USES OF FUNDS
Land Acquisition $ -
Construction $ 37200000 $45000 Stall
Development $ 5580000 15
Financing (500 Interest) $ 2428000 85 Loan to Project Costs
Contingency $ 2260000 5
TOTAL $ 47468000 $57425 Stall
Structured Parking Program 827 Stalls
ONE BIG SKY CENTER
Billings Montana
STRUCTURED PARKING - PHASE 1
USES OF FUNDS
Land Acquisition $ -
Construction $ 33990000 $33000 Stall
Development $ 5099000 15
Financing (500 Interest) $ 2219000 85 Loan to Project Costs
Contingency $ 2065000 5
TOTAL $ 43373000 $42110 Stall
Structured Parking Program 1030 Stalls
ONE BIG SKY CENTER
Billings Montana
CIVIC INFRASTRUCTURE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ - Land Acquisition $ - $000 SF
Construction $ 15040000 $18800 SF
Debt Financing $ 32150000 FFampE $ 8080000 $10100 SF
Development $ 5780000 25
Financing $ 1719000 100 Loan to Project Costs
Contingency $ 1531000 5
TOTAL $ 32150000 TOTAL $ 32150000 $40188 SF
Convention Center Program 80000 SF Escalation Rate 50
Year Completed 2022
Interest Rate 450
ONE BIG SKY CENTER
Billings Montana
CONVENTION CENTER - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ - Land Acquisition $ - $000 SF
Construction $ 36300000 $36300 SF
Debt Financing $ 69666000 FFampE $ 13800000 $13800 SF
Development $ 12525000 25
Financing $ 3724000 100 Loan to Project Costs
Contingency $ 3317000 5
TOTAL $ 69666000 TOTAL $ 69666000 $69666 SF
Convention Center Program 100000 SF Escalation Rate 50
Year Completed 2022
Interest Rate 450
ONE BIG SKY CENTER
Billings Montana
MIXED-USE INFILL DEVELOPMENT - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 21368000 Land Acquisition $ 11750000 $4700 SF
Construction $ 36000000 $14400 SF
Debt Financing $ 39683000 Development $ 9000000 25
Financing $ 1953000 65 Loan to Project Costs
Contingency $ 2348000 5
TOTAL $ 61051000 TOTAL $ 61051000 $24420 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2245 $2312 $2382 $2453 $2527 $2603 $2681 $2761 $2844 $2929 $3017 $3108 $3201 $3297 $3396 $3498 3
OPERATING REVENUES
Rent (NNN) 5613000 5781000 5954000 6133000 6317000 6506000 6702000 6903000 7110000 7323000 7543000 7769000 8002000 8242000 8489000 8744000
Expense Reimbursements 4212000 4296000 4383000 4469000 4560000 4650000 4744000 4838000 4935000 5034000 5135000 5237000 5342000 5448000 5557000 5669000
Vacancy Allowance (983000) (756000) (517000) (530000) (544000) (558000) (572000) (587000) (602000) (618000) (634000) (650000) (667000) (685000) (702000) (721000)
Total Revenues 8842000 9321000 9820000 10072000 10333000 10598000 10874000 11154000 11443000 11739000 12044000 12356000 12677000 13005000 13344000 13692000
OPERATING EXPENSES
Operating Expenses 3209000 3273000 3339000 3405000 3474000 3543000 3614000 3686000 3760000 3835000 3912000 3990000 4070000 4151000 4234000 4319000
Property Taxes 1003000 1023000 1044000 1064000 1086000 1107000 1130000 1152000 1175000 1199000 1223000 1247000 1272000 1297000 1323000 1350000
Total Expenses 4212000 4296000 4383000 4469000 4560000 4650000 4744000 4838000 4935000 5034000 5135000 5237000 5342000 5448000 5557000 5669000
NET OPERATING INCOME 4630000 5025000 5437000 5603000 5773000 5948000 6130000 6316000 6508000 6705000 6909000 7119000 7335000 7557000 7787000 8023000
Annual Debt Service (500 25 -yr Amort) 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794
DSCR 166x 181x 195x 201x 207x 214x 220x 227x 234x 241x 248x 256x 263x 271x 280x
Mortgage Balance $38864774 $38004685 $37100593 $36150245 $35151276 $34101198 $32997396 $31837122 $30617485 $29335450 $27987823 $26571249 $25082200 $23516969 $21871658
BEFORE TAX CASH FLOW 1846206 2241206 2653206 2819206 2989206 3164206 3346206 3532206 3724206 3921206 4125206 4335206 4551206 4773206 5003206
REVERSION CALCULATIONS
Project NOI (Year 16) 8023000
Cap Rate 800
Gross Sales Proceeds 100287500
Less Selling Costs 30 (3008625)
Net Sales Proceeds 97278875
Less Mortgage Balance (21871658)
Net Reversion Proceeds 75407217
Gross Rental Rate $3930 $4031 $4135 $4241 $4351 $4462 $4578 $4696 $4818 $4943 $5071 $5202 $5338 $5476 $5618 $5765
Equity $ (21368000) 00 00 1846206 2241206 2653206 2819206 2989206 3164206 3346206 3532206 3724206 3921206 4125206 4335206 4551206 4773206 80410423
ROE 1453 IRR 86 105 124 132 140 148 157 165 174 184 193 203 213 223 234
ONE BIG SKY CENTER
Billings Montana
MIXED-USE INFILL DEVELOPMENT - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 6354000 Land Acquisition $ 3500000 $3500 SF
Construction $ 10700000 $10700 SF
Debt Financing $ 11800000 Development $ 2675000 25
Financing $ 581000 65 Loan to Project Costs
Contingency $ 698000 5
TOTAL $ 18154000 TOTAL $ 18154000 $18154 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $1670 $1720 $1772 $1825 $1880 $1936 $1994 $2054 $2116 $2179 $2244 $2312 $2381 $2452 $2526 $2602 $2680 $2760 $2843 $2928 $3016 3
OPERATING REVENUES
Rent (NNN) 1670000 1720000 1772000 1825000 1880000 1936000 1994000 2054000 2116000 2179000 2244000 2312000 2381000 2452000 2526000 2602000 2680000 2760000 2843000 2928000 3016000
Expense Reimbursements 1254000 1279000 1305000 1330000 1358000 1384000 1412000 1440000 1469000 1498000 1528000 1559000 1590000 1622000 1655000 1687000 1721000 1756000 1791000 1827000 1863000
Vacancy Allowance (292000) (225000) (154000) (158000) (162000) (166000) (170000) (175000) (179000) (184000) (189000) (194000) (199000) (204000) (209000) (214000) (220000) (226000) (232000) (238000) (244000)
Total Revenues 2632000 2774000 2923000 2997000 3076000 3154000 3236000 3319000 3406000 3493000 3583000 3677000 3772000 3870000 3972000 4075000 4181000 4290000 4402000 4517000 4635000
OPERATING EXPENSES
Operating Expenses 955000 974000 994000 1013000 1034000 1054000 1075000 1097000 1119000 1141000 1164000 1187000 1211000 1235000 1260000 1285000 1311000 1337000 1364000 1391000 1419000
Property Taxes 299000 305000 311000 317000 324000 330000 337000 343000 350000 357000 364000 372000 379000 387000 395000 402000 410000 419000 427000 436000 444000
Total Expenses 1254000 1279000 1305000 1330000 1358000 1384000 1412000 1440000 1469000 1498000 1528000 1559000 1590000 1622000 1655000 1687000 1721000 1756000 1791000 1827000 1863000
NET OPERATING INCOME 1378000 1495000 1618000 1667000 1718000 1770000 1824000 1879000 1937000 1995000 2055000 2118000 2182000 2248000 2317000 2388000 2460000 2534000 2611000 2690000 2772000
Annual Debt Service (500 25 -yr Amort) 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779
DSCR 166x 181x 195x 201x 208x 214x 220x 227x 234x 241x 248x 256x 264x 272x 280x 288x 297x 306x 315x 325x
Mortgage Balance $11556695 $11300942 $11032104 $10749512 $10452462 $10140215 $9811992 $9466977 $9104310 $8723088 $8322362 $7901135 $7458357 $6992925 $6503681 $5989406 $5448820 $4880577 $4283261 $3655385
BEFORE TAX CASH FLOW 550221 667221 790221 839221 890221 942221 996221 1051221 1109221 1167221 1227221 1290221 1354221 1420221 1489221 1560221 1632221 1706221 1783221 1862221
REVERSION CALCULATIONS
Project NOI (Year 16) 2772000
Cap Rate 800
Gross Sales Proceeds 34650000
Less Selling Costs 30 (1039500)
Net Sales Proceeds 33610500
Less Mortgage Balance (3655385)
Net Reversion Proceeds 29955115
Gross Rental Rate $2924 $2999 $3077 $3155 $3238 $3320 $3406 $3494 $3585 $3677 $3772 $3871 $3971 $4074 $4181 $4289 $4401 $4516 $4634 $4755 $4879
Equity $ (6354000) 00 00 550221 667221 790221 839221 890221 942221 996221 1051221 1109221 1167221 1227221 1290221 1354221 1420221 1489221 1560221 1632221 1706221 1783221 31817335
ROE 1433 IRR 87 105 124 132 140 148 157 165 175 184 193 203 213 224 234 246 257 269 281 293
ONE BIG SKY CENTER
Billings Montana
SENIOR HOUSING - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 23350000 Land Acquisition $ 4800000 $16000 DU
Construction $ 54000000 $180000 DU
Debt Financing $ 54485000 FFampE $ 3000000 $10000 DU
Development $ 11400000 20
Financing $ 1157000 70 Loan to Project Costs
Contingency $ 3478000 5
TOTAL $ 77835000 TOTAL $ 77835000 $259450 DU
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Number of Units 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Monthly Rent $2620 $2699 $2780 $2863 $2949 $3037 $3128 $3222 $3319 $3419 $3521 $3627 $3735 $3848 $3963 $4082
Rental Rate per Square Foot $440 $453 $467 $481 $495 $510 $525 $541 $557 $574 $591 $609 $627 $646 $666 $686 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 9432000 9715000 10006000 10307000 10616000 10934000 11262000 11600000 11948000 12307000 12676000 13056000 13448000 13851000 14267000 14695000
Miscellaneous 189000 194000 200000 206000 212000 219000 225000 232000 239000 246000 254000 261000 269000 277000 285000 294000 2 of PGI
Vacancy Collections Losses (962000) (495000) (510000) (526000) (541000) (558000) (574000) (592000) (609000) (628000) (647000) (666000) (686000) (706000) (728000) (749000)
Effective Gross Income 8659000 9414000 9696000 9987000 10287000 10595000 10913000 11240000 11578000 11925000 12283000 12651000 13031000 13422000 13824000 14240000
OPERATING EXPENSES
Administrative 160000 165000 170000 175000 180000 185000 191000 197000 203000 209000 215000 221000 228000 235000 242000 249000 17 of PGI
Advertising 67000 69000 71000 73000 75000 77000 80000 82000 84000 87000 90000 92000 95000 98000 101000 104000 07 of PGI
Repairs amp Maintenance 266000 274000 283000 291000 300000 309000 318000 328000 338000 348000 358000 369000 380000 391000 403000 415000 28 of PGI
Utilities 400000 412000 424000 437000 450000 463000 477000 492000 506000 521000 537000 553000 570000 587000 605000 623000 42 of PGI
Payroll 480000 494000 509000 524000 540000 556000 573000 590000 608000 626000 645000 664000 684000 704000 725000 747000 50 of PGI
Insurance 187000 192000 198000 204000 210000 216000 223000 229000 236000 243000 251000 258000 266000 274000 282000 291000 19 of PGI
Property Taxes 1066000 1098000 1131000 1165000 1200000 1236000 1273000 1311000 1350000 1391000 1432000 1475000 1520000 1565000 1612000 1660000 111 of PGI
Management Fee 346000 377000 388000 399000 411000 424000 437000 450000 463000 477000 491000 506000 521000 537000 553000 570000 40 of EGI
Reserves 173000 188000 194000 200000 206000 212000 218000 225000 232000 239000 246000 253000 261000 268000 276000 285000 20 of EGI
Total Expenses 3145000 3269000 3368000 3468000 3572000 3678000 3790000 3904000 4020000 4141000 4265000 4391000 4525000 4659000 4799000 4944000
NET OPERATING INCOME 5514000 6145000 6328000 6519000 6715000 6917000 7123000 7336000 7558000 7784000 8018000 8260000 8506000 8763000 9025000 9296000
Annual Debt Service (500 25 -yr Amort) 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167
DSCR 144x 161x 166x 171x 176x 181x 186x 192x 198x 204x 210x 216x 223x 229x 236x
Mortgage Balance $53361570 $52180663 $50939339 $49634506 $48262916 $46821152 $45305625 $43712561 $42037993 $40277751 $38427451 $36482486 $34438013 $32288942 $30029919
BEFORE TAX CASH FLOW 1691833 2322833 2505833 2696833 2892833 3094833 3300833 3513833 3735833 3961833 4195833 4437833 4683833 4940833 5202833
REVERSION CALCULATIONS
Project NOI (Year 21) 9296000
Cap Rate 700
Gross Sales Proceeds 132800000
Less Selling Costs 30 (3984000)
Net Sales Proceeds 128816000
Less Mortgage Balance (30029919)
Net Reversion Proceeds 98786081
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (23350000) 00 00 1691833 2322833 2505833 2696833 2892833 3094833 3300833 3513833 3735833 3961833 4195833 4437833 4683833 4940833 103988914
ROE 1460 IRR 72 99 107 115 124 133 141 150 160 170 180 190 201 212 223
ONE BIG SKY CENTER
Billings Montana
SENIOR HOUSING - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 7738000 Land Acquisition $ 1800000 $12000 DU
Construction $ 20100000 $134000 DU
Debt Financing $ 18054000 FFampE $ 1200000 $8000 DU
Development $ 4260000 20
Public Investment $ 3300000 Financing $ 432000 70 Loan to Project Costs
Contingency $ 1300000 5
TOTAL $ 29092000 TOTAL $ 29092000 $193947 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Monthly Rent $1610 $1658 $1708 $1759 $1812 $1866 $1922 $1980 $2039 $2101 $2164 $2229 $2295 $2364 $2435 $2508 $2584 $2661 $2741 $2823 $2908
Rental Rate per Square Foot $270 $278 $286 $295 $304 $313 $322 $332 $342 $352 $363 $374 $385 $397 $408 $421 $433 $446 $460 $473 $488 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 2898000 2985000 3074000 3167000 3262000 3360000 3460000 3564000 3671000 3781000 3895000 4012000 4132000 4256000 4383000 4515000 4650000 4790000 4934000 5082000 5234000
Miscellaneous 58000 60000 61000 63000 65000 67000 69000 71000 73000 76000 78000 80000 83000 85000 88000 90000 93000 96000 99000 102000 105000 2 of PGI
Vacancy Collections Losses (296000) (152000) (157000) (162000) (166000) (171000) (176000) (182000) (187000) (193000) (199000) (205000) (211000) (217000) (224000) (230000) (237000) (244000) (252000) (259000) (267000)
Effective Gross Income 2660000 2893000 2978000 3068000 3161000 3256000 3353000 3453000 3557000 3664000 3774000 3887000 4004000 4124000 4247000 4375000 4506000 4642000 4781000 4925000 5072000
OPERATING EXPENSES
Administrative 49000 51000 52000 54000 55000 57000 59000 60000 62000 64000 66000 68000 70000 72000 74000 77000 79000 81000 84000 86000 89000 17 of PGI
Advertising 20000 21000 22000 22000 23000 24000 24000 25000 26000 27000 28000 28000 29000 30000 31000 32000 33000 34000 35000 36000 37000 07 of PGI
Repairs amp Maintenance 82000 84000 87000 89000 92000 95000 98000 101000 104000 107000 110000 113000 117000 120000 124000 128000 131000 135000 139000 144000 148000 28 of PGI
Utilities 123000 126000 130000 134000 138000 142000 147000 151000 156000 160000 165000 170000 175000 180000 186000 191000 197000 203000 209000 215000 222000 42 of PGI
Payroll 147000 152000 156000 161000 166000 171000 176000 181000 187000 192000 198000 204000 210000 216000 223000 230000 236000 244000 251000 258000 266000 50 of PGI
Insurance 57000 59000 61000 63000 64000 66000 68000 70000 73000 75000 77000 79000 82000 84000 87000 89000 92000 95000 98000 100000 104000 19 of PGI
Property Taxes 327000 337000 347000 358000 369000 380000 391000 403000 415000 427000 440000 453000 467000 481000 495000 510000 525000 541000 558000 574000 591000 111 of PGI
Management Fee 106000 116000 119000 123000 126000 130000 134000 138000 142000 147000 151000 155000 160000 165000 170000 175000 180000 186000 191000 197000 203000 40 of EGI
Reserves 53000 58000 60000 61000 63000 65000 67000 69000 71000 73000 75000 78000 80000 82000 85000 88000 90000 93000 96000 99000 101000 20 of EGI
Total Expenses 964000 1004000 1034000 1065000 1096000 1130000 1164000 1198000 1236000 1272000 1310000 1348000 1390000 1430000 1475000 1520000 1563000 1612000 1661000 1709000 1761000
NET OPERATING INCOME 1696000 1889000 1944000 2003000 2065000 2126000 2189000 2255000 2321000 2392000 2464000 2539000 2614000 2694000 2772000 2855000 2943000 3030000 3120000 3216000 3311000
Annual Debt Service (500 25 -yr Amort) 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503
DSCR 134x 149x 153x 158x 163x 168x 173x 178x 183x 189x 195x 200x 206x 213x 219x 225x 232x 239x 246x 254x
Mortgage Balance $17681743 $17290441 $16879120 $16446754 $15992267 $15514529 $15012348 $14484474 $13929594 $13346325 $12733215 $12088736 $11411286 $10699175 $9950632 $9163791 $8336695 $7467282 $6553389 $5592739
BEFORE TAX CASH FLOW 429497 622497 677497 736497 798497 859497 922497 988497 1054497 1125497 1197497 1272497 1347497 1427497 1505497 1588497 1676497 1763497 1853497 1949497
REVERSION CALCULATIONS
Project NOI (Year 21) 3311000
Cap Rate 700
Gross Sales Proceeds 47300000
Less Selling Costs 30 (1419000)
Net Sales Proceeds 45881000
Less Mortgage Balance (5592739)
Net Reversion Proceeds 40288261
NOI Margin 638 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (7738000) 00 00 429497 622497 677497 736497 798497 859497 922497 988497 1054497 1125497 1197497 1272497 1347497 1427497 1505497 1588497 1676497 1763497 1853497 42237758
ROE 1304 IRR 56 80 88 95 103 111 119 128 136 145 155 164 174 184 195 205 217 228 240 252
ONE BIG SKY CENTER
Billings Montana
SENIOR HOUSING - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 8728000 Land Acquisition $ 1800000 $12000 DU
Construction $ 20100000 $134000 DU
Debt Financing $ 20364000 FFampE $ 1200000 $8000 DU
Development $ 4260000 20
Financing $ 432000 70 Loan to Project Costs
Contingency $ 1300000 5
TOTAL $ 29092000 TOTAL $ 29092000 $193947 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Monthly Rent $1960 $2019 $2079 $2142 $2206 $2272 $2340 $2411 $2483 $2557 $2634 $2713 $2794 $2878 $2965 $3054 $3145 $3240 $3337 $3437 $3540
Rental Rate per Square Foot $330 $340 $350 $361 $371 $383 $394 $406 $418 $431 $443 $457 $471 $485 $499 $514 $530 $545 $562 $579 $596 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 3528000 3634000 3743000 3855000 3971000 4090000 4213000 4339000 4469000 4603000 4741000 4884000 5030000 5181000 5336000 5497000 5661000 5831000 6006000 6186000 6372000
Miscellaneous 71000 73000 75000 77000 79000 82000 84000 87000 89000 92000 95000 98000 101000 104000 107000 110000 113000 117000 120000 124000 127000 2 of PGI
Vacancy Collections Losses (360000) (185000) (191000) (197000) (203000) (209000) (215000) (221000) (228000) (235000) (242000) (249000) (257000) (264000) (272000) (280000) (289000) (297000) (306000) (316000) (325000)
Effective Gross Income 3239000 3522000 3627000 3735000 3847000 3963000 4082000 4205000 4330000 4460000 4594000 4733000 4874000 5021000 5171000 5327000 5485000 5651000 5820000 5994000 6174000
OPERATING EXPENSES
Administrative 60000 62000 63000 65000 67000 69000 71000 74000 76000 78000 80000 83000 85000 88000 90000 93000 96000 99000 102000 105000 108000 17 of PGI
Advertising 25000 26000 26000 27000 28000 29000 30000 31000 32000 33000 33000 34000 36000 37000 38000 39000 40000 41000 42000 44000 45000 07 of PGI
Repairs amp Maintenance 100000 103000 106000 109000 112000 116000 119000 123000 126000 130000 134000 138000 142000 146000 151000 155000 160000 165000 170000 175000 180000 28 of PGI
Utilities 150000 154000 159000 163000 168000 173000 179000 184000 189000 195000 201000 207000 213000 220000 226000 233000 240000 247000 254000 262000 270000 42 of PGI
Payroll 179000 185000 190000 196000 202000 208000 214000 221000 227000 234000 241000 248000 256000 263000 271000 280000 288000 297000 305000 315000 324000 50 of PGI
Insurance 70000 72000 74000 76000 79000 81000 83000 86000 88000 91000 94000 97000 99000 102000 106000 109000 112000 115000 119000 122000 126000 19 of PGI
Property Taxes 399000 411000 423000 436000 449000 462000 476000 490000 505000 520000 536000 552000 568000 585000 603000 621000 640000 659000 679000 699000 720000 111 of PGI
Management Fee 130000 141000 145000 149000 154000 159000 163000 168000 173000 178000 184000 189000 195000 201000 207000 213000 219000 226000 233000 240000 247000 40 of EGI
Reserves 65000 70000 73000 75000 77000 79000 82000 84000 87000 89000 92000 95000 97000 100000 103000 107000 110000 113000 116000 120000 123000 20 of EGI
Total Expenses 1178000 1224000 1259000 1296000 1336000 1376000 1417000 1461000 1503000 1548000 1595000 1643000 1691000 1742000 1795000 1850000 1905000 1962000 2020000 2082000 2143000
NET OPERATING INCOME 2061000 2298000 2368000 2439000 2511000 2587000 2665000 2744000 2827000 2912000 2999000 3090000 3183000 3279000 3376000 3477000 3580000 3689000 3800000 3912000 4031000
Annual Debt Service (500 25 -yr Amort) 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551
DSCR 144x 161x 166x 171x 176x 181x 187x 192x 198x 204x 210x 216x 223x 230x 236x 243x 251x 258x 266x 274x
Mortgage Balance $19944113 $19502744 $19038794 $18551107 $18038470 $17499604 $16933170 $16337755 $15711878 $15053980 $14362423 $13635484 $12871354 $12068129 $11223810 $10336294 $9403370 $8422717 $7391892 $6308327
BEFORE TAX CASH FLOW 632449 869449 939449 1010449 1082449 1158449 1236449 1315449 1398449 1483449 1570449 1661449 1754449 1850449 1947449 2048449 2151449 2260449 2371449 2483449
REVERSION CALCULATIONS
Project NOI (Year 21) 4031000
Cap Rate 700
Gross Sales Proceeds 57585714
Less Selling Costs 30 (1727571)
Net Sales Proceeds 55858143
Less Mortgage Balance (6308327)
Net Reversion Proceeds 49549816
NOI Margin 636 652 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (8728000) 00 00 632449 869449 939449 1010449 1082449 1158449 1236449 1315449 1398449 1483449 1570449 1661449 1754449 1850449 1947449 2048449 2151449 2260449 2371449 52033265
ROE 1419 IRR 72 100 108 116 124 133 142 151 160 170 180 190 201 212 223 235 246 259 272 285
ONE BIG SKY CENTER
Billings Montana
RESIDENTIAL - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 67840000 Land Acquisition $ 16000000 $20000 DU
Construction $ 156000000 $195000 DU
Debt Financing $ 158294000 FFampE $ 8000000 $10000 DU
Development $ 32800000 20
Financing $ 3328000 70 Loan to Project Costs
Contingency $ 10006000 5
TOTAL $ 226134000 TOTAL $ 226134000 $282668 DU
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Number of Units 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800
Average Monthly Rent $2840 $2925 $3013 $3103 $3196 $3292 $3391 $3493 $3598 $3706 $3817 $3931 $4049 $4171 $4296 $4425
Rental Rate per Square Foot $355 $366 $377 $388 $400 $412 $424 $437 $450 $463 $477 $491 $506 $521 $537 $553 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 27264000 28082000 28924000 29792000 30686000 31606000 32555000 33531000 34537000 35573000 36641000 37740000 38872000 40038000 41239000 42476000
Miscellaneous 545000 562000 578000 596000 614000 632000 651000 671000 691000 711000 733000 755000 777000 801000 825000 850000 2 of PGI
Vacancy Collections Losses (2781000) (1432000) (1475000) (1519000) (1565000) (1612000) (1660000) (1710000) (1761000) (1814000) (1869000) (1925000) (1982000) (2042000) (2103000) (2166000)
Effective Gross Income 25028000 27212000 28027000 28869000 29735000 30626000 31546000 32492000 33467000 34470000 35505000 36570000 37667000 38797000 39961000 41160000
OPERATING EXPENSES
Administrative 462000 476000 490000 505000 520000 536000 552000 568000 585000 603000 621000 640000 659000 679000 699000 720000 17 of PGI
Advertising 193000 198000 204000 210000 217000 223000 230000 237000 244000 251000 259000 267000 275000 283000 291000 300000 07 of PGI
Repairs amp Maintenance 770000 793000 817000 842000 867000 893000 920000 947000 976000 1005000 1035000 1066000 1098000 1131000 1165000 1200000 28 of PGI
Utilities 1155000 1190000 1226000 1262000 1300000 1339000 1379000 1421000 1463000 1507000 1553000 1599000 1647000 1697000 1747000 1800000 42 of PGI
Payroll 1386000 1428000 1471000 1515000 1560000 1607000 1655000 1705000 1756000 1809000 1863000 1919000 1977000 2036000 2097000 2160000 50 of PGI
Insurance 539000 555000 572000 589000 607000 625000 644000 663000 683000 703000 725000 746000 769000 792000 815000 840000 19 of PGI
Property Taxes 3081000 3173000 3268000 3366000 3467000 3571000 3679000 3789000 3903000 4019000 4140000 4264000 4392000 4524000 4660000 4800000 111 of PGI
Management Fee 1001000 1088000 1121000 1155000 1189000 1225000 1262000 1300000 1339000 1379000 1420000 1463000 1507000 1552000 1598000 1646000 40 of EGI
Reserves 501000 544000 561000 577000 595000 613000 631000 650000 669000 689000 710000 731000 753000 776000 799000 823000 20 of EGI
Total Expenses 9088000 9445000 9730000 10021000 10322000 10632000 10952000 11280000 11618000 11965000 12326000 12695000 13077000 13470000 13871000 14289000
NET OPERATING INCOME 15940000 17767000 18297000 18848000 19413000 19994000 20594000 21212000 21849000 22505000 23179000 23875000 24590000 25327000 26090000 26871000
Annual Debt Service (500 25 -yr Amort) 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452
DSCR 144x 160x 165x 170x 175x 180x 185x 191x 197x 203x 209x 215x 221x 228x 235x
Mortgage Balance $155030125 $151599264 $147992874 $144201974 $140217124 $136028402 $131625377 $126997085 $122132001 $117018009 $111642377 $105991716 $100051957 $93808309 $87245224
BEFORE TAX CASH FLOW 4835548 6662548 7192548 7743548 8308548 8889548 9489548 10107548 10744548 11400548 12074548 12770548 13485548 14222548 14985548
REVERSION CALCULATIONS
Project NOI (Year 21) 26871000
Cap Rate 700
Gross Sales Proceeds 383871429
Less Selling Costs 30 (11516143)
Net Sales Proceeds 372355286
Less Mortgage Balance (87245224)
Net Reversion Proceeds 285110062
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (67840000) 00 00 4835548 6662548 7192548 7743548 8308548 8889548 9489548 10107548 10744548 11400548 12074548 12770548 13485548 14222548 300095610
ROE 1451 IRR 71 98 106 114 122 131 140 149 158 168 178 188 199 210 221
ONE BIG SKY CENTER
Billings Montana
RESIDENTIAL - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 16834000 Land Acquisition $ 4500000 $15000 DU
Construction $ 43500000 $145000 DU
Debt Financing $ 39278000 FFampE $ 2400000 $8000 DU
Development $ 9180000 20
Public Investment $ 7200000 Financing $ 931000 70 Loan to Project Costs
Contingency $ 2801000 5
TOTAL $ 63312000 TOTAL $ 63312000 $211040 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Monthly Rent $1760 $1813 $1867 $1923 $1981 $2040 $2102 $2165 $2230 $2296 $2365 $2436 $2509 $2585 $2662 $2742 $2824 $2909 $2996 $3086 $3179
Rental Rate per Square Foot $220 $227 $233 $240 $248 $255 $263 $271 $279 $287 $296 $305 $314 $323 $333 $343 $353 $364 $375 $386 $397 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 6336000 6526000 6722000 6924000 7131000 7345000 7566000 7792000 8026000 8267000 8515000 8771000 9034000 9305000 9584000 9871000 10167000 10472000 10787000 11110000 11444000
Miscellaneous 127000 131000 134000 138000 143000 147000 151000 156000 161000 165000 170000 175000 181000 186000 192000 197000 203000 209000 216000 222000 229000 2 of PGI
Vacancy Collections Losses (646000) (333000) (343000) (353000) (364000) (375000) (386000) (397000) (409000) (422000) (434000) (447000) (461000) (475000) (489000) (503000) (519000) (534000) (550000) (567000) (584000)
Effective Gross Income 5817000 6324000 6513000 6709000 6910000 7117000 7331000 7551000 7778000 8010000 8251000 8499000 8754000 9016000 9287000 9565000 9851000 10147000 10453000 10765000 11089000
OPERATING EXPENSES
Administrative 107000 111000 114000 117000 121000 124000 128000 132000 136000 140000 144000 149000 153000 158000 162000 167000 172000 177000 183000 188000 194000 17 of PGI
Advertising 45000 46000 47000 49000 50000 52000 53000 55000 57000 58000 60000 62000 64000 66000 68000 70000 72000 74000 76000 78000 81000 07 of PGI
Repairs amp Maintenance 179000 184000 190000 196000 201000 207000 214000 220000 227000 234000 241000 248000 255000 263000 271000 279000 287000 296000 305000 314000 323000 28 of PGI
Utilities 268000 277000 285000 293000 302000 311000 321000 330000 340000 350000 361000 372000 383000 394000 406000 418000 431000 444000 457000 471000 485000 42 of PGI
Payroll 322000 332000 342000 352000 363000 373000 385000 396000 408000 420000 433000 446000 459000 473000 487000 502000 517000 532000 549000 565000 582000 50 of PGI
Insurance 125000 129000 133000 137000 141000 145000 150000 154000 159000 163000 168000 173000 179000 184000 190000 195000 201000 207000 213000 220000 226000 19 of PGI
Property Taxes 716000 737000 759000 782000 806000 830000 855000 880000 907000 934000 962000 991000 1021000 1051000 1083000 1115000 1149000 1183000 1219000 1255000 1293000 111 of PGI
Management Fee 233000 253000 261000 268000 276000 285000 293000 302000 311000 320000 330000 340000 350000 361000 371000 383000 394000 406000 418000 431000 444000 40 of EGI
Reserves 116000 126000 130000 134000 138000 142000 147000 151000 156000 160000 165000 170000 175000 180000 186000 191000 197000 203000 209000 215000 222000 20 of EGI
Total Expenses 2111000 2195000 2261000 2328000 2398000 2469000 2546000 2620000 2701000 2779000 2864000 2951000 3039000 3130000 3224000 3320000 3420000 3522000 3629000 3737000 3850000
NET OPERATING INCOME 3706000 4129000 4252000 4381000 4512000 4648000 4785000 4931000 5077000 5231000 5387000 5548000 5715000 5886000 6063000 6245000 6431000 6625000 6824000 7028000 7239000
Annual Debt Service (500 25 -yr Amort) 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383
DSCR 135x 150x 154x 159x 164x 169x 174x 179x 184x 190x 196x 201x 207x 214x 220x 227x 233x 240x 248x 255x
Mortgage Balance $38468124 $37616814 $36721948 $35781300 $34792527 $33753166 $32660629 $31512196 $30305007 $29036056 $27702182 $26300066 $24826214 $23276958 $21648438 $19936601 $18137182 $16245702 $14257450 $12167476
BEFORE TAX CASH FLOW 950617 1373617 1496617 1625617 1756617 1892617 2029617 2175617 2321617 2475617 2631617 2792617 2959617 3130617 3307617 3489617 3675617 3869617 4068617 4272617
REVERSION CALCULATIONS
Project NOI (Year 21) 7239000
Cap Rate 700
Gross Sales Proceeds 103414286
Less Selling Costs 30 (3102429)
Net Sales Proceeds 100311857
Less Mortgage Balance (12167476)
Net Reversion Proceeds 88144381
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (16834000) 00 00 950617 1373617 1496617 1625617 1756617 1892617 2029617 2175617 2321617 2475617 2631617 2792617 2959617 3130617 3307617 3489617 3675617 3869617 4068617 92416998
ROE 1312 IRR 56 82 89 97 104 112 121 129 138 147 156 166 176 186 196 207 218 230 242 254
ONE BIG SKY CENTER
Billings Montana
RESIDENTIAL - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 18994000 Land Acquisition $ 4500000 $15000 DU
Construction $ 43500000 $145000 DU
Debt Financing $ 44318000 FFampE $ 2400000 $8000 DU
Development $ 9180000 20
Financing $ 931000 70 Loan to Project Costs
Contingency $ 2801000 5
TOTAL $ 63312000 TOTAL $ 63312000 $211040 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Monthly Rent $2120 $2184 $2249 $2317 $2386 $2458 $2531 $2607 $2686 $2766 $2849 $2935 $3023 $3113 $3207 $3303 $3402 $3504 $3609 $3717 $3829
Rental Rate per Square Foot $265 $273 $281 $290 $298 $307 $316 $326 $336 $346 $356 $367 $378 $389 $401 $413 $425 $438 $451 $465 $479 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 7632000 7861000 8097000 8340000 8590000 8848000 9113000 9386000 9668000 9958000 10257000 10564000 10881000 11208000 11544000 11890000 12247000 12615000 12993000 13383000 13784000
Miscellaneous 153000 157000 162000 167000 172000 177000 182000 188000 193000 199000 205000 211000 218000 224000 231000 238000 245000 252000 260000 268000 276000 2 of PGI
Vacancy Collections Losses (779000) (401000) (413000) (425000) (438000) (451000) (465000) (479000) (493000) (508000) (523000) (539000) (555000) (572000) (589000) (606000) (625000) (643000) (663000) (683000) (703000)
Effective Gross Income 7006000 7617000 7846000 8082000 8324000 8574000 8830000 9095000 9368000 9649000 9939000 10236000 10544000 10860000 11186000 11522000 11867000 12224000 12590000 12968000 13357000
OPERATING EXPENSES
Administrative 129000 133000 137000 141000 146000 150000 154000 159000 164000 169000 174000 179000 184000 190000 196000 202000 208000 214000 220000 227000 234000 17 of PGI
Advertising 54000 56000 57000 59000 61000 62000 64000 66000 68000 70000 72000 75000 77000 79000 82000 84000 86000 89000 92000 95000 97000 07 of PGI
Repairs amp Maintenance 216000 222000 229000 236000 243000 250000 257000 265000 273000 281000 290000 298000 307000 317000 326000 336000 346000 356000 367000 378000 389000 28 of PGI
Utilities 323000 333000 343000 353000 364000 375000 386000 398000 410000 422000 435000 448000 461000 475000 489000 504000 519000 535000 551000 567000 584000 42 of PGI
Payroll 388000 400000 412000 424000 437000 450000 463000 477000 492000 506000 522000 537000 553000 570000 587000 605000 623000 641000 661000 681000 701000 50 of PGI
Insurance 151000 155000 160000 165000 170000 175000 180000 186000 191000 197000 203000 209000 215000 222000 228000 235000 242000 249000 257000 265000 273000 19 of PGI
Property Taxes 862000 888000 915000 942000 971000 1000000 1030000 1061000 1092000 1125000 1159000 1194000 1230000 1266000 1304000 1344000 1384000 1425000 1468000 1512000 1558000 111 of PGI
Management Fee 280000 305000 314000 323000 333000 343000 353000 364000 375000 386000 398000 409000 422000 434000 447000 461000 475000 489000 504000 519000 534000 40 of EGI
Reserves 140000 152000 157000 162000 166000 171000 177000 182000 187000 193000 199000 205000 211000 217000 224000 230000 237000 244000 252000 259000 267000 20 of EGI
Total Expenses 2543000 2644000 2724000 2805000 2891000 2976000 3064000 3158000 3252000 3349000 3452000 3554000 3660000 3770000 3883000 4001000 4120000 4242000 4372000 4503000 4637000
NET OPERATING INCOME 4463000 4973000 5122000 5277000 5433000 5598000 5766000 5937000 6116000 6300000 6487000 6682000 6884000 7090000 7303000 7521000 7747000 7982000 8218000 8465000 8720000
Annual Debt Service (500 25 -yr Amort) 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943
DSCR 144x 160x 165x 170x 175x 180x 185x 191x 197x 203x 209x 215x 221x 228x 235x 242x 249x 257x 264x 272x
Mortgage Balance $43404204 $42443657 $41433966 $40372617 $39256968 $38084240 $36851513 $35555718 $34193627 $32761849 $31256819 $29674788 $28011817 $26263766 $24426282 $22494788 $20464475 $18330287 $16086911 $13728759
BEFORE TAX CASH FLOW 1354057 1864057 2013057 2168057 2324057 2489057 2657057 2828057 3007057 3191057 3378057 3573057 3775057 3981057 4194057 4412057 4638057 4873057 5109057 5356057
REVERSION CALCULATIONS
Project NOI (Year 21) 8720000
Cap Rate 700
Gross Sales Proceeds 124571429
Less Selling Costs 30 (3737143)
Net Sales Proceeds 120834286
Less Mortgage Balance (13728759)
Net Reversion Proceeds 107105527
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (18994000) 00 00 1354057 1864057 2013057 2168057 2324057 2489057 2657057 2828057 3007057 3191057 3378057 3573057 3775057 3981057 4194057 4412057 4638057 4873057 5109057 112461584
ROE 1411 IRR 71 98 106 114 122 131 140 149 158 168 178 188 199 210 221 232 244 257 269 282
ONE BIG SKY CENTER
Billings Montana
MEDICAL OFFICE - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 32865000 Land Acquisition $ 6800000 $3400 SF
Construction $ 42000000 $21000 SF
Debt Financing $ 61034000 Development $ 10500000 25
Financing $ 3451000 65 Loan to Project Costs
TI Allowances $ 27000000 $13500 SF
Contingency $ 4148000 5
TOTAL $ 93899000 TOTAL $ 93899000 $46950 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $4250 $4378 $4509 $4644 $4783 $4927 $5075 $5227 $5384 $5545 $5712 $5883 $6059 $6241 $6429 $6621 3
OPERATING REVENUES
Office Rent (NNN) 8500000 8755000 9018000 9288000 9567000 9854000 10149000 10454000 10768000 11091000 11423000 11766000 12119000 12483000 12857000 13243000
Expense Reimbursements 3531000 3601000 3674000 3747000 3822000 3898000 3976000 4056000 4137000 4220000 4304000 4390000 4478000 4568000 4659000 4752000
Vacancy Allowance (1203000) (927000) (635000) (652000) (669000) (688000) (706000) (726000) (745000) (766000) (786000) (808000) (830000) (853000) (876000) (900000)
Total Revenues 10828000 11429000 12057000 12383000 12720000 13064000 13419000 13784000 14160000 14545000 14941000 15348000 15767000 16198000 16640000 17095000
OPERATING EXPENSES
Operating Expenses 2568000 2619000 2672000 2725000 2780000 2835000 2892000 2950000 3009000 3069000 3130000 3193000 3257000 3322000 3388000 3456000
Property Taxes 963000 982000 1002000 1022000 1042000 1063000 1084000 1106000 1128000 1151000 1174000 1197000 1221000 1246000 1271000 1296000
Total Expenses 3531000 3601000 3674000 3747000 3822000 3898000 3976000 4056000 4137000 4220000 4304000 4390000 4478000 4568000 4659000 4752000
NET OPERATING INCOME 7297000 7828000 8383000 8636000 8898000 9166000 9443000 9728000 10023000 10325000 10637000 10958000 11289000 11630000 11981000 12343000
Annual Debt Service (500 25 -yr Amort) 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584
DSCR 170x 183x 196x 202x 208x 214x 221x 227x 234x 241x 248x 256x 264x 272x 280x
Mortgage Balance $59775536 $58452686 $57062157 $55600486 $54064033 $52448972 $50751281 $48966733 $47090885 $45119064 $43046362 $40867616 $38577401 $36170015 $33639462
BEFORE TAX CASH FLOW 3015416 3546416 4101416 4354416 4616416 4884416 5161416 5446416 5741416 6043416 6355416 6676416 7007416 7348416 7699416
REVERSION CALCULATIONS
Project NOI (Year 21) 12343000
Cap Rate 800
Gross Sales Proceeds 154287500
Less Selling Costs 30 (4628625)
Net Sales Proceeds 149658875
Less Mortgage Balance (33639462)
Net Reversion Proceeds 116019413
Gross Rental Rate $6016 $6178 $6346 $6518 $6695 $6876 $7063 $7255 $7453 $7656 $7864 $8078 $8299 $8526 $8758 $8998
Equity $ (32865000) 00 00 3015416 3546416 4101416 4354416 4616416 4884416 5161416 5446416 5741416 6043416 6355416 6676416 7007416 7348416 123718829
ROE 1460 IRR 92 108 125 132 140 149 157 166 175 184 193 203 213 224 234
ONE BIG SKY CENTER
Billings Montana
MEDICAL OFFICE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 21327000 Land Acquisition $ 4375000 $2500 SF
Construction $ 27300000 $15600 SF
Debt Financing $ 39607000 Development $ 6825000 25
Financing $ 2241000 65 Loan to Project Costs
TI Allowances $ 17500000 $10000 SF
Contingency $ 2693000 5
TOTAL $ 60934000 TOTAL $ 60934000 $34819 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3165 $3260 $3358 $3458 $3562 $3669 $3779 $3893 $4009 $4130 $4253 $4381 $4513 $4648 $4787 $4931 $5079 $5231 $5388 $5550 $5716 3
OPERATING REVENUES
Office Rent (NNN) 5539000 5705000 5876000 6052000 6234000 6421000 6614000 6812000 7016000 7227000 7444000 7667000 7897000 8134000 8378000 8629000 8888000 9155000 9429000 9712000 10004000
Expense Reimbursements 2299000 2345000 2392000 2439000 2489000 2538000 2589000 2641000 2694000 2747000 2802000 2859000 2916000 2974000 3033000 3094000 3156000 3219000 3284000 3349000 3417000
Vacancy Allowance (784000) (604000) (413000) (425000) (436000) (448000) (460000) (473000) (486000) (499000) (512000) (526000) (541000) (555000) (571000) (586000) (602000) (619000) (636000) (653000) (671000)
Total Revenues 7054000 7446000 7855000 8066000 8287000 8511000 8743000 8980000 9224000 9475000 9734000 10000000 10272000 10553000 10840000 11137000 11442000 11755000 12077000 12408000 12750000
OPERATING EXPENSES
Operating Expenses 1672000 1705000 1740000 1774000 1810000 1846000 1883000 1921000 1959000 1998000 2038000 2079000 2121000 2163000 2206000 2250000 2295000 2341000 2388000 2436000 2485000
Property Taxes 627000 640000 652000 665000 679000 692000 706000 720000 735000 749000 764000 780000 795000 811000 827000 844000 861000 878000 896000 913000 932000
Total Expenses 2299000 2345000 2392000 2439000 2489000 2538000 2589000 2641000 2694000 2747000 2802000 2859000 2916000 2974000 3033000 3094000 3156000 3219000 3284000 3349000 3417000
NET OPERATING INCOME 4755000 5101000 5463000 5627000 5798000 5973000 6154000 6339000 6530000 6728000 6932000 7141000 7356000 7579000 7807000 8043000 8286000 8536000 8793000 9059000 9333000
Annual Debt Service (500 25 -yr Amort) 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463
DSCR 171x 184x 197x 203x 209x 215x 221x 228x 235x 242x 249x 257x 265x 273x 281x 289x 298x 307x 316x 326x
Mortgage Balance $38790341 $37931899 $37029538 $36081011 $35083955 $34035888 $32934200 $31776148 $30558847 $29279267 $27934221 $26520360 $25034163 $23471930 $21829770 $20103593 $18289103 $16381779 $14376873 $12269393
BEFORE TAX CASH FLOW 1976537 2322537 2684537 2848537 3019537 3194537 3375537 3560537 3751537 3949537 4153537 4362537 4577537 4800537 5028537 5264537 5507537 5757537 6014537 6280537
REVERSION CALCULATIONS
Project NOI (Year 21) 9333000
Cap Rate 800
Gross Sales Proceeds 116662500
Less Selling Costs 30 (3499875)
Net Sales Proceeds 113162625
Less Mortgage Balance (12269393)
Net Reversion Proceeds 100893232
Gross Rental Rate $4479 $4600 $4725 $4852 $4985 $5119 $5259 $5402 $5549 $5699 $5855 $6015 $6179 $6347 $6521 $6699 $6882 $7071 $7265 $7463 $7669
Equity $ (21327000) 00 00 1976537 2322537 2684537 2848537 3019537 3194537 3375537 3560537 3751537 3949537 4153537 4362537 4577537 4800537 5028537 5264537 5507537 5757537 6014537 107173769
ROE 1444 IRR 93 109 126 134 142 150 158 167 176 185 195 205 215 225 236 247 258 270 282 294
ONE BIG SKY CENTER
Billings Montana
AMBULATORY MEDICAL WELLNESS - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 43599000 Land Acquisition $ - $000 SF
Construction $ 122000000 $30500 SF
Debt Financing $ 247062000 FFampE $ 34800000 $8700 SF
Development $ 52700000 25
Financing $ 13320000 85 Loan to Project Costs
Tenant Improvements $ 54000000 $13500 SF
Contingency $ 13841000 5
TOTAL $ 290661000 TOTAL $ 290661000 $72665 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $5055 $5207 $5363 $5524 $5689 $5860 $6036 $6217 $6404 $6596 $6793 $6997 $7207 $7423 $7646 $7876 3
OPERATING REVENUES
Rent (NNN) 20220000 20827000 21451000 22095000 22758000 23441000 24144000 24868000 25614000 26383000 27174000 27989000 28829000 29694000 30585000 31502000
Expense Reimbursements 8345000 8512000 8682000 8856000 9033000 9213000 9398000 9585000 9778000 9973000 10173000 10376000 10584000 10795000 11011000 11231000
Vacancy Allowance (2857000) (2200000) (1507000) (1548000) (1590000) (1633000) (1677000) (1723000) (1770000) (1818000) (1867000) (1918000) (1971000) (2024000) (2080000) (2137000)
Total Revenues 25708000 27139000 28626000 29403000 30201000 31021000 31865000 32730000 33622000 34538000 35480000 36447000 37442000 38465000 39516000 40596000
OPERATING EXPENSES
Operating Expenses 6419000 6547000 6678000 6812000 6948000 7087000 7229000 7373000 7521000 7671000 7825000 7981000 8141000 8304000 8470000 8639000
Property Taxes 1926000 1965000 2004000 2044000 2085000 2126000 2169000 2212000 2257000 2302000 2348000 2395000 2443000 2491000 2541000 2592000
Total Expenses 8345000 8512000 8682000 8856000 9033000 9213000 9398000 9585000 9778000 9973000 10173000 10376000 10584000 10795000 11011000 11231000
NET OPERATING INCOME 17363000 18627000 19944000 20547000 21168000 21808000 22467000 23145000 23844000 24565000 25307000 26071000 26858000 27670000 28505000 29365000
Annual Debt Service (450 25 -yr Amort) 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010
DSCR 105x 113x 121x 125x 128x 132x 136x 140x 145x 149x 154x 158x 163x 168x 173x
Mortgage Balance $241588811 $235864184 $229876570 $223613885 $217063493 $210212178 $203046115 $195550843 $187711241 $179511488 $170935040 $161964592 $152582043 $142768461 $132504045
BEFORE TAX CASH FLOW 883990 2147990 3464990 4067990 4688990 5328990 5987990 6665990 7364990 8085990 8827990 9591990 10378990 11190990 12025990
REVERSION CALCULATIONS
Project NOI (Year 16) 29365000
Cap Rate 800
Gross Sales Proceeds 367062500
Less Selling Costs 30 (11011875)
Net Sales Proceeds 356050625
Less Mortgage Balance (132504045)
Net Reversion Proceeds 223546580
Gross Rental Rate $7141 $7335 $7533 $7738 $7948 $8164 $8386 $8613 $8848 $9089 $9337 $9591 $9853 $10122 $10399 $10683
Equity $ (43599000) 00 00 883990 2147990 3464990 4067990 4688990 5328990 5987990 6665990 7364990 8085990 8827990 9591990 10378990 11190990 235572570
ROE 1476 IRR 20 49 79 93 108 122 137 153 169 185 202 220 238 257 276
ONE BIG SKY CENTER
Billings Montana
AMBULATORY MEDICAL WELLNESS - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 6081000 Land Acquisition $ - $000 SF
Construction $ 17025000 $22700 SF
Debt Financing $ 34457000 FFampE $ 4875000 $6500 SF
Development $ 7350000 25
Financing $ 1858000 85 Loan to Project Costs
Tenant Improvements $ 7500000 $10000 SF
Contingency $ 1930000 5
TOTAL $ 40538000 TOTAL $ 40538000 $54051 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3760 $3873 $3989 $4109 $4232 $4359 $4490 $4624 $4763 $4906 $5053 $5205 $5361 $5522 $5687 $5858 $6034 $6215 $6401 $6593 $6791 3
OPERATING REVENUES
Rent (NNN) 2820000 2905000 2992000 3081000 3174000 3269000 3367000 3468000 3572000 3679000 3790000 3904000 4021000 4141000 4266000 4393000 4525000 4661000 4801000 4945000 5093000
Expense Reimbursements 1165000 1188000 1212000 1236000 1261000 1286000 1312000 1338000 1365000 1392000 1420000 1448000 1477000 1507000 1537000 1568000 1599000 1632000 1664000 1697000 1731000
Vacancy Allowance (399000) (307000) (210000) (216000) (222000) (228000) (234000) (240000) (247000) (254000) (261000) (268000) (275000) (282000) (290000) (298000) (306000) (315000) (323000) (332000) (341000)
Total Revenues 3586000 3786000 3994000 4101000 4213000 4327000 4445000 4566000 4690000 4817000 4949000 5084000 5223000 5366000 5513000 5663000 5818000 5978000 6142000 6310000 6483000
OPERATING EXPENSES
Operating Expenses 896000 914000 932000 951000 970000 989000 1009000 1029000 1050000 1071000 1092000 1114000 1136000 1159000 1182000 1206000 1230000 1255000 1280000 1305000 1331000
Property Taxes 269000 274000 280000 285000 291000 297000 303000 309000 315000 321000 328000 334000 341000 348000 355000 362000 369000 377000 384000 392000 400000
Total Expenses 1165000 1188000 1212000 1236000 1261000 1286000 1312000 1338000 1365000 1392000 1420000 1448000 1477000 1507000 1537000 1568000 1599000 1632000 1664000 1697000 1731000
NET OPERATING INCOME 2421000 2598000 2782000 2865000 2952000 3041000 3133000 3228000 3325000 3425000 3529000 3636000 3746000 3859000 3976000 4095000 4219000 4346000 4478000 4613000 4752000
Annual Debt Service (450 25 -yr Amort) 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278
DSCR 105x 113x 121x 125x 128x 132x 136x 140x 145x 149x 154x 158x 163x 168x 173x 178x 184x 189x 195x 201x
Mortgage Balance $33693671 $32895274 $32060199 $31186761 $30273198 $29317665 $28318236 $27272893 $26179527 $25035932 $23839800 $22588718 $21280162 $19911491 $18479944 $16982631 $15416532 $13778487 $12065191 $10273186
BEFORE TAX CASH FLOW 122722 299722 483722 566722 653722 742722 834722 929722 1026722 1126722 1230722 1337722 1447722 1560722 1677722 1796722 1920722 2047722 2179722 2314722
REVERSION CALCULATIONS
Project NOI (Year 16) 4752000
Cap Rate 800
Gross Sales Proceeds 59400000
Less Selling Costs 30 (1782000)
Net Sales Proceeds 57618000
Less Mortgage Balance (18479944)
Net Reversion Proceeds 39138056
Gross Rental Rate $5313 $5457 $5605 $5756 $5913 $6073 $6239 $6408 $6583 $6761 $6947 $7136 $7331 $7531 $7737 $7948 $8165 $8391 $8620 $8856 $9099
Equity $ (6081000) 00 00 122722 299722 483722 566722 653722 742722 834722 929722 1026722 1126722 1230722 1337722 1447722 1560722 1677722 1796722 1920722 2047722 2179722 41452778
ROE 1418 IRR 20 49 80 93 108 122 137 153 169 185 202 220 238 257 276 295 316 337 358 381
ONE BIG SKY CENTER
Billings Montana
BIOSCIENCE - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 24494000 Land Acquisition $ 4250000 $3400 SF
Construction $ 26125000 $20900 SF
Debt Financing $ 45490000 FFampE $ 4375000 $3500 SF
Development $ 12000000 25
Financing $ 2604000 65 Loan to Project Costs
TI Allowances $ 17500000 $14000 SF
Contingency $ 3130000 5
TOTAL $ 69984000 TOTAL $ 69984000 $55987 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $4975 $5124 $5278 $5436 $5599 $5767 $5940 $6119 $6302 $6491 $6686 $6887 $7093 $7306 $7525 $7751 3
OPERATING REVENUES
Rent (NNN) 6219000 6405000 6597000 6795000 6999000 7209000 7426000 7648000 7878000 8114000 8357000 8608000 8866000 9132000 9406000 9689000
Expense Reimbursements 2608000 2660000 2713000 2768000 2823000 2880000 2937000 2996000 3055000 3116000 3179000 3243000 3307000 3374000 3441000 3510000
Vacancy Allowance (883000) (680000) (466000) (478000) (491000) (504000) (518000) (532000) (547000) (562000) (577000) (593000) (609000) (625000) (642000) (660000)
Total Revenues 7944000 8385000 8844000 9085000 9331000 9585000 9845000 10112000 10386000 10668000 10959000 11258000 11564000 11881000 12205000 12539000
OPERATING EXPENSES
Operating Expenses 2006000 2046000 2087000 2129000 2171000 2215000 2259000 2304000 2350000 2397000 2445000 2494000 2544000 2595000 2647000 2700000
Property Taxes 602000 614000 626000 639000 652000 665000 678000 692000 705000 719000 734000 749000 763000 779000 794000 810000
Total Expenses 2608000 2660000 2713000 2768000 2823000 2880000 2937000 2996000 3055000 3116000 3179000 3243000 3307000 3374000 3441000 3510000
NET OPERATING INCOME 5336000 5725000 6131000 6317000 6508000 6705000 6908000 7116000 7331000 7552000 7780000 8015000 8257000 8507000 8764000 9029000
Annual Debt Service (500 25 -yr Amort) 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160
DSCR 167x 179x 192x 198x 204x 210x 216x 223x 230x 237x 244x 251x 259x 267x 275x
Mortgage Balance $44552039 $43566089 $42529697 $41440281 $40295128 $39091387 $37826060 $36495997 $35097886 $33628244 $32083413 $30459545 $28752597 $26958318 $25072240
BEFORE TAX CASH FLOW 2144840 2533840 2939840 3125840 3316840 3513840 3716840 3924840 4139840 4360840 4588840 4823840 5065840 5315840 5572840
REVERSION CALCULATIONS
Project NOI (Year 16) 9029000
Cap Rate 800
Gross Sales Proceeds 112862500
Less Selling Costs 30 (3385875)
Net Sales Proceeds 109476625
Less Mortgage Balance (25072240)
Net Reversion Proceeds 84404385
Gross Rental Rate $7062 $7252 $7448 $7650 $7858 $8071 $8290 $8515 $8746 $8984 $9229 $9481 $9738 $10005 $10278 $10559
Equity $ (24494000) 00 00 2144840 2533840 2939840 3125840 3316840 3513840 3716840 3924840 4139840 4360840 4588840 4823840 5065840 5315840 89977224
ROE 1428 IRR 88 103 120 128 135 143 152 160 169 178 187 197 207 217 228
ONE BIG SKY CENTER
Billings Montana
BIOSCIENCE - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 5868000 Land Acquisition $ 1250000 $2500 SF
Construction $ 7750000 $15500 SF
Debt Financing $ 10897000 FFampE $ 1250000 $2500 SF
Development $ 3563000 25
Public Investment $ 4000000 Financing $ 773000 65 Loan to Project Costs
TI Allowances $ 5250000 $10500 SF
Contingency $ 929000 5
TOTAL $ 20765000 TOTAL $ 20765000 $41530 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2985 $3075 $3167 $3262 $3360 $3460 $3564 $3671 $3781 $3895 $4012 $4132 $4256 $4384 $4515 $4651 $4790 $4934 $5082 $5234 $5391 3
OPERATING REVENUES
Rent (NNN) 1493000 1537000 1583000 1631000 1680000 1730000 1782000 1836000 1891000 1947000 2006000 2066000 2128000 2192000 2258000 2325000 2395000 2467000 2541000 2617000 2696000
Expense Reimbursements 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
Vacancy Allowance (197000) (152000) (104000) (107000) (110000) (113000) (116000) (119000) (123000) (126000) (129000) (133000) (137000) (141000) (144000) (148000) (153000) (157000) (161000) (166000) (170000)
Total Revenues 1774000 1873000 1976000 2031000 2088000 2145000 2205000 2266000 2328000 2392000 2459000 2528000 2597000 2670000 2745000 2820000 2898000 2980000 3063000 3148000 3236000
OPERATING EXPENSES
Operating Expenses 299000 305000 311000 317000 324000 330000 337000 343000 350000 357000 364000 372000 379000 387000 395000 402000 410000 419000 427000 436000 444000
Property Taxes 179000 183000 186000 190000 194000 198000 202000 206000 210000 214000 218000 223000 227000 232000 236000 241000 246000 251000 256000 261000 266000
Total Expenses 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
NET OPERATING INCOME 1296000 1385000 1479000 1524000 1570000 1617000 1666000 1717000 1768000 1821000 1877000 1933000 1991000 2051000 2114000 2177000 2242000 2310000 2380000 2451000 2526000
Annual Debt Service (500 25 -yr Amort) 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433
DSCR 170x 181x 193x 199x 205x 212x 218x 225x 231x 238x 246x 253x 260x 268x 277x 285x 293x 302x 311x 321x
Mortgage Balance $10672314 $10436133 $10187868 $9926901 $9652583 $9364230 $9061125 $8742512 $8407599 $8055550 $7685490 $7296497 $6887603 $6457788 $6005984 $5531064 $5031847 $4507088 $3955482 $3375655
BEFORE TAX CASH FLOW 531567 620567 714567 759567 805567 852567 901567 952567 1003567 1056567 1112567 1168567 1226567 1286567 1349567 1412567 1477567 1545567 1615567 1686567
REVERSION CALCULATIONS
Project NOI (Year 21) 2526000
Cap Rate 800
Gross Sales Proceeds 31575000
Less Selling Costs 30 (947250)
Net Sales Proceeds 30627750
Less Mortgage Balance (3375655)
Net Reversion Proceeds 27252095
Gross Rental Rate $3942 $4050 $4160 $4276 $4396 $4516 $4642 $4770 $4902 $5036 $5176 $5322 $5468 $5622 $5778 $5936 $6102 $6274 $6448 $6628 $6812
Equity $ (5868000) 00 00 531567 620567 714567 759567 805567 852567 901567 952567 1003567 1056567 1112567 1168567 1226567 1286567 1349567 1412567 1477567 1545567 1615567 28938662
ROE 1421 IRR 91 106 122 129 137 145 154 162 171 180 190 199 209 219 230 241 252 263 275 287
ONE BIG SKY CENTER
Billings Montana
BIOSCIENCE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 7268000 Land Acquisition $ 1250000 $2500 SF
Construction $ 7750000 $15500 SF
Debt Financing $ 13497000 FFampE $ 1250000 $2500 SF
Development $ 3563000 25
Financing $ 773000 65 Loan to Project Costs
TI Allowances $ 5250000 $10500 SF
Contingency $ 929000 5
TOTAL $ 20765000 TOTAL $ 20765000 $41530 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3700 $3811 $3925 $4043 $4164 $4289 $4418 $4551 $4687 $4828 $4972 $5122 $5275 $5434 $5597 $5764 $5937 $6116 $6299 $6488 $6683 3
OPERATING REVENUES
Rent (NNN) 1850000 1906000 1963000 2022000 2082000 2145000 2209000 2275000 2344000 2414000 2486000 2561000 2638000 2717000 2798000 2882000 2969000 3058000 3150000 3244000 3341000
Expense Reimbursements 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
Vacancy Allowance (233000) (180000) (123000) (126000) (130000) (134000) (137000) (141000) (145000) (149000) (153000) (158000) (162000) (167000) (171000) (176000) (181000) (186000) (192000) (197000) (203000)
Total Revenues 2095000 2214000 2337000 2403000 2470000 2539000 2611000 2683000 2759000 2836000 2915000 2998000 3082000 3169000 3258000 3349000 3444000 3542000 3641000 3744000 3848000
OPERATING EXPENSES
Operating Expenses 299000 305000 311000 317000 324000 330000 337000 343000 350000 357000 364000 372000 379000 387000 395000 402000 410000 419000 427000 436000 444000
Property Taxes 179000 183000 186000 190000 194000 198000 202000 206000 210000 214000 218000 223000 227000 232000 236000 241000 246000 251000 256000 261000 266000
Total Expenses 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
NET OPERATING INCOME 1617000 1726000 1840000 1896000 1952000 2011000 2072000 2134000 2199000 2265000 2333000 2403000 2476000 2550000 2627000 2706000 2788000 2872000 2958000 3047000 3138000
Annual Debt Service (500 25 -yr Amort) 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825
DSCR 171x 182x 194x 200x 206x 212x 219x 225x 232x 239x 246x 254x 262x 269x 277x 286x 294x 303x 312x 322x
Mortgage Balance $13218704 $12926171 $12618670 $12295438 $11955668 $11598515 $11223089 $10828456 $10413633 $9977586 $9519231 $9037425 $8530969 $7998602 $7438998 $6850764 $6232434 $5582470 $4899252 $4181079
BEFORE TAX CASH FLOW 670175 779175 893175 949175 1005175 1064175 1125175 1187175 1252175 1318175 1386175 1456175 1529175 1603175 1680175 1759175 1841175 1925175 2011175 2100175
REVERSION CALCULATIONS
Project NOI (Year 21) 3138000
Cap Rate 800
Gross Sales Proceeds 39225000
Less Selling Costs 30 (1176750)
Net Sales Proceeds 38048250
Less Mortgage Balance (4181079)
Net Reversion Proceeds 33867171
Gross Rental Rate $4656 $4788 $4920 $5058 $5200 $5346 $5496 $5648 $5808 $5970 $6136 $6312 $6488 $6672 $6858 $7050 $7250 $7456 $7666 $7882 $8102
Equity $ (7268000) 00 00 670175 779175 893175 949175 1005175 1064175 1125175 1187175 1252175 1318175 1386175 1456175 1529175 1603175 1680175 1759175 1841175 1925175 2011175 35967346
ROE 1427 IRR 92 107 123 131 138 146 155 163 172 181 191 200 210 221 231 242 253 265 277 289
ONE BIG SKY CENTER
Billings Montana
COMMERCIAL OFFICE - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 48554000 Land Acquisition $ 11900000 $3400 SF
Construction $ 68250000 $19500 SF
Debt Financing $ 90173000 Development $ 17063000 25
Financing $ 5025000 65 Loan to Project Costs
TI Allowances $ 30450000 $8700 SF
Contingency $ 6039000 5
TOTAL $ 138727000 TOTAL $ 138727000 $39636 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3570 $3677 $3787 $3901 $4018 $4139 $4263 $4391 $4522 $4658 $4798 $4942 $5090 $5243 $5400 $5562 3
OPERATING REVENUES
Office Rent (NNN) 12495000 12870000 13256000 13654000 14063000 14485000 14920000 15367000 15828000 16303000 16792000 17296000 17815000 18349000 18900000 19467000
Expense Reimbursements 5897000 6015000 6136000 6258000 6383000 6511000 6641000 6774000 6909000 7048000 7188000 7332000 7479000 7628000 7781000 7937000
Vacancy Allowance (1839000) (1416000) (970000) (996000) (1022000) (1050000) (1078000) (1107000) (1137000) (1168000) (1199000) (1231000) (1265000) (1299000) (1334000) (1370000)
Total Revenues 16553000 17469000 18422000 18916000 19424000 19946000 20483000 21034000 21600000 22183000 22781000 23397000 24029000 24678000 25347000 26034000
OPERATING EXPENSES
Operating Expenses 4493000 4583000 4675000 4768000 4863000 4961000 5060000 5161000 5264000 5370000 5477000 5586000 5698000 5812000 5928000 6047000
Property Taxes 1404000 1432000 1461000 1490000 1520000 1550000 1581000 1613000 1645000 1678000 1711000 1746000 1781000 1816000 1853000 1890000
Total Expenses 5897000 6015000 6136000 6258000 6383000 6511000 6641000 6774000 6909000 7048000 7188000 7332000 7479000 7628000 7781000 7937000
NET OPERATING INCOME 10656000 11454000 12286000 12658000 13041000 13435000 13842000 14260000 14691000 15135000 15593000 16065000 16550000 17050000 17566000 18097000
Annual Debt Service (500 25 -yr Amort) 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709
DSCR 168x 181x 194x 200x 206x 212x 219x 225x 232x 239x 247x 254x 262x 270x 278x
Mortgage Balance $88313717 $86359309 $84304910 $82145404 $79875414 $77489287 $74981080 $72344550 $69573129 $66659917 $63597660 $60378732 $56995118 $53438391 $49699695
BEFORE TAX CASH FLOW 4330291 5128291 5960291 6332291 6715291 7109291 7516291 7934291 8365291 8809291 9267291 9739291 10224291 10724291 11240291
REVERSION CALCULATIONS
Project NOI (Year 16) 18097000
Cap Rate 800
Gross Sales Proceeds 226212500
Less Selling Costs 30 (6786375)
Net Sales Proceeds 219426125
Less Mortgage Balance (49699695)
Net Reversion Proceeds 169726430
Gross Rental Rate $5255 $5396 $5541 $5689 $5842 $5999 $6160 $6326 $6496 $6672 $6851 $7037 $7227 $7422 $7623 $7830
Equity $ (48554000) 00 00 4330291 5128291 5960291 6332291 6715291 7109291 7516291 7934291 8365291 8809291 9267291 9739291 10224291 10724291 180966721
ROE 1446 IRR 89 106 123 130 138 146 155 163 172 181 191 201 211 221 232
ONE BIG SKY CENTER
Billings Montana
COMMERCIAL OFFICE - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 11276000 Land Acquisition $ 3750000 $2500 SF
Construction $ 21750000 $14500 SF
Debt Financing $ 20942000 Development $ 5438000 25
Financing $ 1603000 65 Loan to Project Costs
Public Investment $ 12000000 TI Allowances $ 9750000 $6500 SF
Contingency $ 1927000 5
TOTAL $ 44218000 TOTAL $ 44218000 $29479 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $1940 $1998 $2058 $2120 $2183 $2249 $2316 $2386 $2458 $2531 $2607 $2685 $2766 $2849 $2934 $3022 $3113 $3207 $3303 $3402 $3504 3
OPERATING REVENUES
Office Rent (NNN) 2910000 2997000 3087000 3180000 3275000 3373000 3475000 3579000 3686000 3797000 3911000 4028000 4149000 4273000 4402000 4534000 4670000 4810000 4954000 5103000 5256000
Expense Reimbursements 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
Vacancy Allowance (439000) (338000) (231000) (237000) (244000) (250000) (257000) (264000) (271000) (278000) (286000) (293000) (301000) (309000) (318000) (326000) (335000) (344000) (353000) (363000) (373000)
Total Revenues 3949000 4167000 4394000 4511000 4631000 4755000 4883000 5013000 5147000 5285000 5427000 5573000 5722000 5876000 6034000 6197000 6364000 6535000 6712000 6894000 7080000
OPERATING EXPENSES
Operating Expenses 1030000 1051000 1072000 1093000 1115000 1137000 1160000 1183000 1207000 1231000 1256000 1281000 1306000 1332000 1359000 1386000 1414000 1442000 1471000 1501000 1531000
Property Taxes 448000 457000 466000 475000 485000 495000 505000 515000 525000 535000 546000 557000 568000 580000 591000 603000 615000 627000 640000 653000 666000
Total Expenses 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
NET OPERATING INCOME 2471000 2659000 2856000 2943000 3031000 3123000 3218000 3315000 3415000 3519000 3625000 3735000 3848000 3964000 4084000 4208000 4335000 4466000 4601000 4740000 4883000
Annual Debt Service (500 25 -yr Amort) 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098
DSCR 168x 181x 194x 200x 206x 213x 219x 226x 232x 240x 247x 254x 262x 270x 278x 286x 295x 304x 313x 323x
Mortgage Balance $20510195 $20056299 $19579180 $19077651 $18550463 $17996303 $17413791 $16801477 $16157835 $15481264 $14770078 $14022506 $13236687 $12410664 $11542380 $10629673 $9670270 $8661783 $7601699 $6487379
BEFORE TAX CASH FLOW 1001902 1189902 1386902 1473902 1561902 1653902 1748902 1845902 1945902 2049902 2155902 2265902 2378902 2494902 2614902 2738902 2865902 2996902 3131902 3270902
REVERSION CALCULATIONS
Project NOI (Year 21) 4883000
Cap Rate 800
Gross Sales Proceeds 61037500
Less Selling Costs 30 (1831125)
Net Sales Proceeds 59206375
Less Mortgage Balance (6487379)
Net Reversion Proceeds 52718996
Gross Rental Rate $2925 $3003 $3083 $3165 $3250 $3337 $3427 $3518 $3612 $3709 $3809 $3911 $4015 $4123 $4235 $4349 $4466 $4586 $4710 $4838 $4969
Equity $ (11276000) 00 00 1001902 1189902 1386902 1473902 1561902 1653902 1748902 1845902 1945902 2049902 2155902 2265902 2378902 2494902 2614902 2738902 2865902 2996902 3131902 55989898
ROE 1426 IRR 89 106 123 131 139 147 155 164 173 182 191 201 211 221 232 243 254 266 278 290
ONE BIG SKY CENTER
Billings Montana
COMMERCIAL OFFICE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 15476000 Land Acquisition $ 3750000 $2500 SF
Construction $ 21750000 $14500 SF
Debt Financing $ 28742000 Development $ 5438000 25
Financing $ 1603000 65 Loan to Project Costs
TI Allowances $ 9750000 $6500 SF
Contingency $ 1927000 5
TOTAL $ 44218000 TOTAL $ 44218000 $29479 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2655 $2735 $2817 $2901 $2988 $3078 $3170 $3265 $3363 $3464 $3568 $3675 $3785 $3899 $4016 $4136 $4260 $4388 $4520 $4656 $4795 3
OPERATING REVENUES
Office Rent (NNN) 3983000 4102000 4225000 4352000 4482000 4617000 4755000 4898000 5045000 5196000 5352000 5513000 5678000 5848000 6024000 6205000 6391000 6582000 6780000 6983000 7193000
Expense Reimbursements 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
Vacancy Allowance (546000) (421000) (288000) (296000) (304000) (312000) (321000) (330000) (339000) (348000) (358000) (368000) (378000) (388000) (399000) (410000) (421000) (433000) (445000) (457000) (470000)
Total Revenues 4915000 5189000 5475000 5624000 5778000 5937000 6099000 6266000 6438000 6614000 6796000 6983000 7174000 7372000 7575000 7784000 7999000 8218000 8446000 8680000 8920000
OPERATING EXPENSES
Operating Expenses 1030000 1051000 1072000 1093000 1115000 1137000 1160000 1183000 1207000 1231000 1256000 1281000 1306000 1332000 1359000 1386000 1414000 1442000 1471000 1501000 1531000
Property Taxes 448000 457000 466000 475000 485000 495000 505000 515000 525000 535000 546000 557000 568000 580000 591000 603000 615000 627000 640000 653000 666000
Total Expenses 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
NET OPERATING INCOME 3437000 3681000 3937000 4056000 4178000 4305000 4434000 4568000 4706000 4848000 4994000 5145000 5300000 5460000 5625000 5795000 5970000 6149000 6335000 6526000 6723000
Annual Debt Service (500 25 -yr Amort) 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274
DSCR 170x 183x 195x 201x 207x 214x 220x 227x 233x 240x 248x 255x 263x 271x 279x 287x 296x 305x 314x 324x
Mortgage Balance $28149367 $27526413 $26871588 $26183261 $25459718 $24699157 $23899684 $23059309 $22175938 $21247373 $20271300 $19245290 $18166787 $17033106 $15841423 $14588772 $13272032 $11887926 $10433007 $8903651
BEFORE TAX CASH FLOW 1420726 1664726 1920726 2039726 2161726 2288726 2417726 2551726 2689726 2831726 2977726 3128726 3283726 3443726 3608726 3778726 3953726 4132726 4318726 4509726
REVERSION CALCULATIONS
Project NOI (Year 21) 6723000
Cap Rate 800
Gross Sales Proceeds 84037500
Less Selling Costs 30 (2521125)
Net Sales Proceeds 81516375
Less Mortgage Balance (8903651)
Net Reversion Proceeds 72612724
Gross Rental Rate $3641 $3740 $3842 $3947 $4055 $4166 $4280 $4397 $4518 $4641 $4769 $4901 $5035 $5173 $5316 $5463 $5613 $5767 $5927 $6091 $6260
Equity $ (15476000) 00 00 1420726 1664726 1920726 2039726 2161726 2288726 2417726 2551726 2689726 2831726 2977726 3128726 3283726 3443726 3608726 3778726 3953726 4132726 4318726 77122450
ROE 1434 IRR 92 108 124 132 140 148 156 165 174 183 192 202 212 223 233 244 255 267 279 291
ONE BIG SKY CENTER
Billings Montana
RETAIL DINING ENTERTAINMENT - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 33347000 Land Acquisition $ 9000000 $4000 SF
Construction $ 43875000 $19500 SF
Debt Financing $ 61929000 Development $ 8775000 20
Financing $ 3418000 65 Loan to Project Costs
TI Allowances $ 26100000 $11600 SF
Contingency $ 4108000 5
TOTAL $ 95276000 TOTAL $ 95276000 $42345 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Projected Sales per Square Foot $48000 $49440 $50923 $52451 $54024 $55645 $57315 $59034 $60805 $62629 $64508 $66443 $68437 $70490 $72604 $74782 3
Leasable Program 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3840 $3955 $4074 $4196 $4322 $4452 $4585 $4723 $4864 $5010 $5161 $5315 $5475 $5639 $5808 $5983 8 NNN Rent vs Tenant Sales
OPERATING REVENUES
Retail Rent (NNN) 8640000 8899000 9167000 9441000 9725000 10017000 10316000 10627000 10944000 11273000 11612000 11959000 12319000 12688000 13068000 13462000
Expense Reimbursements 3971000 4051000 4132000 4214000 4298000 4385000 4472000 4561000 4653000 4745000 4840000 4938000 5037000 5137000 5240000 5345000
Vacancy Allowance (1261000) (971000) (665000) (683000) (701000) (720000) (739000) (759000) (780000) (801000) (823000) (845000) (868000) (891000) (915000) (940000)
Total Revenues 11350000 11979000 12634000 12972000 13322000 13682000 14049000 14429000 14817000 15217000 15629000 16052000 16488000 16934000 17393000 17867000
OPERATING EXPENSES
Operating Expenses 2888000 2946000 3005000 3065000 3126000 3189000 3252000 3317000 3384000 3451000 3520000 3591000 3663000 3736000 3811000 3887000
Property Taxes 1083000 1105000 1127000 1149000 1172000 1196000 1220000 1244000 1269000 1294000 1320000 1347000 1374000 1401000 1429000 1458000
Total Expenses 3971000 4051000 4132000 4214000 4298000 4385000 4472000 4561000 4653000 4745000 4840000 4938000 5037000 5137000 5240000 5345000
NET OPERATING INCOME 7379000 7928000 8502000 8758000 9024000 9297000 9577000 9868000 10164000 10472000 10789000 11114000 11451000 11797000 12153000 12522000
Annual Debt Service (500 25 -yr Amort) 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369
DSCR 170x 182x 196x 202x 208x 214x 220x 227x 234x 241x 248x 256x 264x 272x 280x
Mortgage Balance $60652082 $59309834 $57898914 $56415809 $54856825 $53218081 $51495496 $49684779 $47781424 $45780688 $43677592 $41466897 $39143099 $36700410 $34132750
BEFORE TAX CASH FLOW 3034631 3583631 4157631 4413631 4679631 4952631 5232631 5523631 5819631 6127631 6444631 6769631 7106631 7452631 7808631
REVERSION CALCULATIONS
Project NOI (Year 21) 12522000
Cap Rate 800
Gross Sales Proceeds 156525000
Less Selling Costs 30 (4695750)
Net Sales Proceeds 151829250
Less Mortgage Balance (34132750)
Net Reversion Proceeds 117696500
Gross Rental Rate $5605 $5756 $5911 $6069 $6232 $6401 $6572 $6750 $6932 $7119 $7312 $7510 $7714 $7922 $8137 $8359
Equity $ (33347000) 00 00 3034631 3583631 4157631 4413631 4679631 4952631 5232631 5523631 5819631 6127631 6444631 6769631 7106631 7452631 125505131
ROE 1458 IRR 91 107 125 132 140 149 157 166 175 184 193 203 213 223 234
ONE BIG SKY CENTER
Billings Montana
RETAIL DINING ENTERTAINMENT - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 10981000 Land Acquisition $ 3000000 $3000 SF
Construction $ 14500000 $14500 SF
Debt Financing $ 20394000 Development $ 2900000 20
Financing $ 1124000 65 Loan to Project Costs
TI Allowances $ 8500000 $8500 SF
Contingency $ 1351000 5
TOTAL $ 31375000 TOTAL $ 31375000 $31375 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Projected Sales per Square Foot $36000 $37080 $38192 $39338 $40518 $41734 $42986 $44275 $45604 $46972 $48381 $49832 $51327 $52867 $54453 $56087 $57769 $59503 $61288 $63126 $65020 3
Leasable Program 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2880 $2966 $3055 $3147 $3241 $3339 $3439 $3542 $3648 $3758 $3870 $3987 $4106 $4229 $4356 $4487 $4622 $4760 $4903 $5050 $5202 8 NNN Rent vs Tenant Sales
OPERATING REVENUES
Retail Rent (NNN) 2880000 2966000 3055000 3147000 3241000 3339000 3439000 3542000 3648000 3758000 3870000 3987000 4106000 4229000 4356000 4487000 4622000 4760000 4903000 5050000 5202000
Expense Reimbursements 776000 791000 807000 824000 840000 857000 874000 891000 909000 928000 946000 965000 984000 1004000 1024000 1045000 1065000 1086000 1108000 1131000 1153000
Vacancy Allowance (366000) (282000) (193000) (199000) (204000) (210000) (216000) (222000) (228000) (234000) (241000) (248000) (255000) (262000) (269000) (277000) (284000) (292000) (301000) (309000) (318000)
Total Revenues 3290000 3475000 3669000 3772000 3877000 3986000 4097000 4211000 4329000 4452000 4575000 4704000 4835000 4971000 5111000 5255000 5403000 5554000 5710000 5872000 6037000
OPERATING EXPENSES
Operating Expenses 418000 426000 435000 444000 452000 462000 471000 480000 490000 500000 510000 520000 530000 541000 552000 563000 574000 585000 597000 609000 621000
Property Taxes 358000 365000 372000 380000 388000 395000 403000 411000 419000 428000 436000 445000 454000 463000 472000 482000 491000 501000 511000 522000 532000
Total Expenses 776000 791000 807000 824000 840000 857000 874000 891000 909000 928000 946000 965000 984000 1004000 1024000 1045000 1065000 1086000 1108000 1131000 1153000
NET OPERATING INCOME 2514000 2684000 2862000 2948000 3037000 3129000 3223000 3320000 3420000 3524000 3629000 3739000 3851000 3967000 4087000 4210000 4338000 4468000 4602000 4741000 4884000
Annual Debt Service (500 25 -yr Amort) 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656
DSCR 176x 188x 200x 206x 212x 219x 225x 232x 239x 246x 254x 261x 269x 277x 286x 294x 303x 312x 322x 331x
Mortgage Balance $19973495 $19531476 $19066842 $18578437 $18065044 $17525385 $16958116 $16361824 $15735025 $15076158 $14383581 $13655572 $12890316 $12085908 $11240344 $10351521 $9417223 $8435125 $7402781 $6317621
BEFORE TAX CASH FLOW 1083344 1253344 1431344 1517344 1606344 1698344 1792344 1889344 1989344 2093344 2198344 2308344 2420344 2536344 2656344 2779344 2907344 3037344 3171344 3310344
REVERSION CALCULATIONS
Project NOI (Year 21) 4884000
Cap Rate 800
Gross Sales Proceeds 61050000
Less Selling Costs 30 (1831500)
Net Sales Proceeds 59218500
Less Mortgage Balance (6317621)
Net Reversion Proceeds 52900879
Gross Rental Rate $3656 $3757 $3862 $3971 $4081 $4196 $4313 $4433 $4557 $4686 $4816 $4952 $5090 $5233 $5380 $5532 $5687 $5846 $6011 $6181 $6355
Equity $ (10981000) 00 00 1083344 1253344 1431344 1517344 1606344 1698344 1792344 1889344 1989344 2093344 2198344 2308344 2420344 2536344 2656344 2779344 2907344 3037344 3171344 56211224
ROE 1471 IRR 99 114 130 138 146 155 163 172 181 191 200 210 220 231 242 253 265 277 289 301
ONE BIG SKY CENTER
Billings Montana
HOTEL - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 39286000 Land Acquisition $ 12000000 $40000 KEY
Construction $ 64500000 $215000 KEY
Debt Financing $ 72960000 FFampE $ 8700000 $29000 KEY
Development $ 18300000 25
Financing $ 3972000 65 Loan to Project Costs
Contingency $ 4774000 5
TOTAL $ 112246000 TOTAL $ 112246000 $374153 KEY
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Number of Rooms 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Daily Rate (ADR) $29700 $30403 $30930 $31858 $32814 $33798 $34812 $35857 $36932 $38040 $39181 $40357 $41568 $42815 $44099 $45422 30
Occupancy Rate 680 720 750 750 750 750 750 750 750 750 750 750 750 750 750 750
OPERATING REVENUES
Rooms Revenue 22115000 23970000 25401000 26163000 26948000 27757000 28590000 29447000 30331000 31241000 32178000 33143000 34137000 35161000 36216000 37303000 639
FampB Revenue 11144000 12079000 12800000 13184000 13579000 13987000 14407000 14839000 15284000 15743000 16215000 16701000 17202000 17718000 18250000 18797000 322
Other Revenue 1350000 1463000 1550000 1597000 1645000 1694000 1745000 1797000 1851000 1907000 1964000 2023000 2083000 2146000 2210000 2277000 39
Total Revenues 34609000 37512000 39751000 40944000 42172000 43438000 44742000 46083000 47466000 48891000 50357000 51867000 53422000 55025000 56676000 58377000
OPERATING EXPENSES Rooms FampB Other
Departmental Expenses 13292000 14406000 15266000 15725000 16196000 16682000 17183000 17698000 18229000 18777000 19340000 19919000 20516000 21132000 21766000 22419000 213 700 586 384
Undistributed Expenses 8998000 9753000 10335000 10645000 10965000 11294000 11633000 11982000 12341000 12712000 13093000 13485000 13890000 14307000 14736000 15178000 260
Management Fee 1038000 1125000 1193000 1228000 1265000 1303000 1342000 1382000 1424000 1467000 1511000 1556000 1603000 1651000 1700000 1751000 30
Insurance 346000 375000 398000 409000 422000 434000 447000 461000 475000 489000 504000 519000 534000 550000 567000 584000 10
Property Taxes 1281000 1388000 1471000 1515000 1560000 1607000 1655000 1705000 1756000 1809000 1863000 1919000 1977000 2036000 2097000 2160000 37
CAPEX Reserve 346000 750000 1193000 1228000 1265000 1303000 1342000 1382000 1424000 1467000 1511000 1556000 1603000 1651000 1700000 1751000
Total Expenses 25301000 27797000 29856000 30750000 31673000 32623000 33602000 34610000 35649000 36721000 37822000 38954000 40123000 41327000 42566000 43843000
NET OPERATING INCOME 9308000 9715000 9895000 10194000 10499000 10815000 11140000 11473000 11817000 12170000 12535000 12913000 13299000 13698000 14110000 14534000
Annual Debt Service (500 25 -yr Amort) 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203
DSCR 182x 190x 193x 199x 205x 211x 218x 224x 231x 238x 245x 252x 260x 268x 276x
Mortgage Balance $71455633 $69874299 $68212062 $66464781 $64628106 $62697463 $60668045 $58534798 $56292410 $53935297 $51457590 $48853119 $46115398 $43237610 $40212589
BEFORE TAX CASH FLOW 4189797 4596797 4776797 5075797 5380797 5696797 6021797 6354797 6698797 7051797 7416797 7794797 8180797 8579797 8991797
REVERSION CALCULATIONS
Project NOI (Year 16) 14534000
Cap Rate 800
Gross Sales Proceeds 181675000
Less Selling Costs 30 (5450250)
Net Sales Proceeds 176224750
Less Mortgage Balance (40212589)
Net Reversion Proceeds 136012161
NOI Margin 269 259 249 249 249 249 249 249 249 249 249 249 249 249 249 249
Equity $ (39286000) 00 00 4189797 4596797 4776797 5075797 5380797 5696797 6021797 6354797 6698797 7051797 7416797 7794797 8180797 8579797 145003959
ROE 1455 IRR 107 117 122 129 137 145 153 162 171 179 189 198 208 218 229
ONE BIG SKY CENTER
Billings Montana
HOTEL - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 15855000 Land Acquisition $ 6000000 $30000 KEY
Construction $ 32000000 $160000 KEY
Debt Financing $ 29446000 FFampE $ 4000000 $20000 KEY
Development $ 9000000 25
Public Investment $ 10000000 Financing $ 1953000 65 Loan to Project Costs
Contingency $ 2348000 5
TOTAL $ 55301000 TOTAL $ 55301000 $276505 KEY
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Rooms 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200
Average Daily Rate (ADR) $17900 $18324 $18641 $19201 $19777 $20370 $20981 $21611 $22259 $22927 $23614 $24323 $25053 $25804 $26578 $27376 $28197 $29043 $29914 $30811 $31736 30
Occupancy Rate 680 720 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750
OPERATING REVENUES
Rooms Revenue 8886000 9631000 10206000 10512000 10828000 11153000 11487000 11832000 12187000 12552000 12929000 13317000 13716000 14128000 14552000 14988000 15438000 15901000 16378000 16869000 17375000 639
FampB Revenue 4478000 4853000 5143000 5297000 5456000 5620000 5788000 5962000 6141000 6325000 6515000 6711000 6912000 7119000 7333000 7553000 7779000 8013000 8253000 8500000 8755000 322
Other Revenue 542000 588000 623000 642000 661000 681000 701000 722000 744000 766000 789000 813000 837000 862000 888000 915000 942000 970000 1000000 1030000 1060000 39
Total Revenues 13906000 15072000 15972000 16451000 16945000 17454000 17976000 18516000 19072000 19643000 20233000 20841000 21465000 22109000 22773000 23456000 24159000 24884000 25631000 26399000 27190000
OPERATING EXPENSES Rooms FampB Other
Departmental Expenses 5341000 5788000 6134000 6318000 6508000 6703000 6903000 7111000 7325000 7544000 7770000 8004000 8244000 8491000 8746000 9008000 9278000 9557000 9844000 10138000 10442000 213 700 586 384
Undistributed Expenses 3616000 3919000 4153000 4277000 4406000 4538000 4674000 4814000 4959000 5107000 5261000 5419000 5581000 5748000 5921000 6099000 6281000 6470000 6664000 6864000 7069000 260
Management Fee 417000 452000 479000 494000 508000 524000 539000 555000 572000 589000 607000 625000 644000 663000 683000 704000 725000 747000 769000 792000 816000 30
Insurance 139000 151000 160000 165000 169000 175000 180000 185000 191000 196000 202000 208000 215000 221000 228000 235000 242000 249000 256000 264000 272000 10
Property Taxes 515000 558000 591000 609000 627000 646000 665000 685000 706000 727000 749000 771000 794000 818000 843000 868000 894000 921000 948000 977000 1006000 37
CAPEX Reserve 139000 301000 479000 494000 508000 524000 539000 555000 572000 589000 607000 625000 644000 663000 683000 704000 725000 747000 769000 792000 816000
Total Expenses 10167000 11169000 11996000 12357000 12726000 13110000 13500000 13905000 14325000 14752000 15196000 15652000 16122000 16604000 17104000 17618000 18145000 18691000 19250000 19827000 20421000
NET OPERATING INCOME 3739000 3903000 3976000 4094000 4219000 4344000 4476000 4611000 4747000 4891000 5037000 5189000 5343000 5505000 5669000 5838000 6014000 6193000 6381000 6572000 6769000
Annual Debt Service (500 25 -yr Amort) 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661
DSCR 181x 189x 192x 198x 204x 210x 217x 223x 230x 237x 244x 251x 259x 267x 274x 283x 291x 300x 309x 318x
Mortgage Balance $28838851 $28200639 $27529775 $26824588 $26083322 $25304132 $24485078 $23624118 $22719111 $21767801 $20767821 $19716680 $18611760 $17450311 $16229439 $14946106 $13597115 $12179106 $10688550 $9121735
BEFORE TAX CASH FLOW 1673339 1837339 1910339 2028339 2153339 2278339 2410339 2545339 2681339 2825339 2971339 3123339 3277339 3439339 3603339 3772339 3948339 4127339 4315339 4506339
REVERSION CALCULATIONS
Project NOI (Year 21) 6769000
Cap Rate 800
Gross Sales Proceeds 84612500
Less Selling Costs 30 (2538375)
Net Sales Proceeds 82074125
Less Mortgage Balance (9121735)
Net Reversion Proceeds 72952390
NOI Margin 269 259 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249
Equity $ (15855000) 00 00 1673339 1837339 1910339 2028339 2153339 2278339 2410339 2545339 2681339 2825339 2971339 3123339 3277339 3439339 3603339 3772339 3948339 4127339 4315339 77458730
ROE 1427 IRR 106 116 120 128 136 144 152 161 169 178 187 197 207 217 227 238 249 260 272 284
ONE BIG SKY CENTER
Billings Montana
HOTEL - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 19355000 Land Acquisition $ 6000000 $30000 KEY
Construction $ 32000000 $160000 KEY
Debt Financing $ 35946000 FFampE $ 4000000 $20000 KEY
Development $ 9000000 25
Financing $ 1953000 65 Loan to Project Costs
Contingency $ 2348000 5
TOTAL $ 55301000 TOTAL $ 55301000 $276505 KEY
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Rooms 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200
Average Daily Rate (ADR) $22100 $22623 $23015 $23706 $24417 $25150 $25904 $26681 $27482 $28306 $29155 $30030 $30931 $31859 $32814 $33799 $34813 $35857 $36933 $38041 $39182 30
Occupancy Rate 680 720 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750
OPERATING REVENUES
Rooms Revenue 10970000 11891000 12601000 12979000 13368000 13769000 14182000 14608000 15046000 15498000 15962000 16441000 16935000 17443000 17966000 18505000 19060000 19632000 20221000 20827000 21452000 639
FampB Revenue 5528000 5992000 6350000 6540000 6736000 6938000 7146000 7361000 7582000 7810000 8043000 8285000 8534000 8790000 9053000 9325000 9605000 9893000 10190000 10495000 10810000 322
Other Revenue 670000 726000 769000 792000 816000 840000 866000 892000 918000 946000 974000 1003000 1034000 1065000 1097000 1129000 1163000 1198000 1234000 1271000 1309000 39
Total Revenues 17168000 18609000 19720000 20311000 20920000 21547000 22194000 22861000 23546000 24254000 24979000 25729000 26503000 27298000 28116000 28959000 29828000 30723000 31645000 32593000 33571000
OPERATING EXPENSES Rooms FampB Other
Departmental Expenses 6593000 7147000 7573000 7800000 8034000 8275000 8523000 8780000 9043000 9315000 9593000 9881000 10179000 10484000 10798000 11122000 11455000 11799000 12153000 12517000 12893000 213 700 586 384
Undistributed Expenses 4464000 4838000 5127000 5281000 5439000 5602000 5770000 5944000 6122000 6306000 6495000 6690000 6891000 7097000 7310000 7529000 7755000 7988000 8228000 8474000 8728000 260
Management Fee 515000 558000 592000 609000 628000 646000 666000 686000 706000 728000 749000 772000 795000 819000 843000 869000 895000 922000 949000 978000 1007000 30
Insurance 172000 186000 197000 203000 209000 215000 222000 229000 235000 243000 250000 257000 265000 273000 281000 290000 298000 307000 316000 326000 336000 10
Property Taxes 635000 689000 730000 752000 774000 797000 821000 846000 871000 897000 924000 952000 981000 1010000 1040000 1071000 1104000 1137000 1171000 1206000 1242000 37
CAPEX Reserve 172000 372000 592000 609000 628000 646000 666000 686000 706000 728000 749000 772000 795000 819000 843000 869000 895000 922000 949000 978000 1007000
Total Expenses 12551000 13790000 14811000 15254000 15712000 16181000 16668000 17171000 17683000 18217000 18760000 19324000 19906000 20502000 21115000 21750000 22402000 23075000 23766000 24479000 25213000
NET OPERATING INCOME 4617000 4819000 4909000 5057000 5208000 5366000 5526000 5690000 5863000 6037000 6219000 6405000 6597000 6796000 7001000 7209000 7426000 7648000 7879000 8114000 8358000
Annual Debt Service (500 25 -yr Amort) 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641
DSCR 183x 191x 195x 201x 207x 213x 219x 226x 233x 239x 247x 254x 262x 270x 278x 286x 294x 303x 312x 322x
Mortgage Balance $35204827 $34425734 $33606781 $32745929 $31841035 $30889844 $29889988 $28838978 $27734196 $26572892 $25352173 $24069000 $22720177 $21302345 $19811975 $18245355 $16598583 $14867560 $13047974 $11135294
BEFORE TAX CASH FLOW 2095359 2297359 2387359 2535359 2686359 2844359 3004359 3168359 3341359 3515359 3697359 3883359 4075359 4274359 4479359 4687359 4904359 5126359 5357359 5592359
REVERSION CALCULATIONS
Project NOI (Year 21) 8358000
Cap Rate 800
Gross Sales Proceeds 104475000
Less Selling Costs 30 (3134250)
Net Sales Proceeds 101340750
Less Mortgage Balance (11135294)
Net Reversion Proceeds 90205456
NOI Margin 269 259 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249
Equity $ (19355000) 00 00 2095359 2297359 2387359 2535359 2686359 2844359 3004359 3168359 3341359 3515359 3697359 3883359 4075359 4274359 4479359 4687359 4904359 5126359 5357359 95797815
ROE 1444 IRR 108 119 123 131 139 147 155 164 173 182 191 201 211 221 231 242 253 265 277 289
ONE BIG SKY CENTER
Billings Montana
ECONOMIC amp FISCAL IMPACT ESTIMATES (HIGH)
PHASE 1 PHASE 2
Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M) Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M)
HOTEL 200 KEYS $ 197 Direct 160 Direct $ 59 Direct $ 02 Income 300 KEYS $ 398 Direct 240 Direct $ 119 Direct $ 05 Income
$ 58 Indirect 34 Indirect $ 17 Indirect $ 01 Corp $ 117 Indirect 50 Indirect $ 34 Indirect $ 02 Corp
$ 32 Induced 21 Induced $ 10 Induced $ 09 Lodging $ 65 Induced 31 Induced $ 21 Induced $ 18 Lodging
$ 288 Total 214 Total $ 86 Total $ 07 Property $ 580 Total 321 Total $ 174 Total $ 15 Property
$ 19 Total $ 39 Total
RETAIL DINING ENTERTAINMENT 100000 SF $ 363 Direct 496 Direct $ 145 Direct $ 04 Income 225000 SF $ 1088 Direct 1221 Direct $ 435 Direct $ 13 Income
$ 23 Indirect 17 Indirect $ 07 Indirect $ 01 Corp $ 69 Indirect 41 Indirect $ 21 Indirect $ 03 Corp
$ 27 Induced 25 Induced $ 11 Induced $ 04 Property $ 81 Induced 61 Induced $ 34 Induced $ 11 Property
$ 413 Total 537 Total $ 163 Total $ 09 Total $ 1239 Total 1323 Total $ 490 Total $ 28 Total
COMMERCIAL OFFICE 150000 SF $ 1259 Direct 600 Direct $ 357 Direct $ 15 Income 350000 SF $ 3947 Direct 1400 Direct $ 1119 Direct $ 46 Income
$ 304 Indirect 205 Indirect $ 95 Indirect $ 05 Corp $ 954 Indirect 479 Indirect $ 299 Indirect $ 15 Corp
$ 211 Induced 174 Induced $ 86 Induced $ 05 Property $ 662 Induced 405 Induced $ 270 Induced $ 15 Property
$ 1774 Total 979 Total $ 538 Total $ 24 Total $ 5563 Total 2284 Total $ 1688 Total $ 75 Total
BIOSCIENCE 50000 SF $ 301 Direct 167 Direct $ 137 Direct $ 05 Income 125000 SF $ 1010 Direct 417 Direct $ 459 Direct $ 16 Income
$ 35 Indirect 25 Indirect $ 13 Indirect $ 01 Corp $ 118 Indirect 62 Indirect $ 42 Indirect $ 04 Corp
$ 70 Induced 51 Induced $ 25 Induced $ 02 Property $ 236 Induced 128 Induced $ 85 Induced $ 06 Property
$ 406 Total 243 Total $ 175 Total $ 08 Total $ 1364 Total 607 Total $ 587 Total $ 26 Total
HEALTHCARE 250000 SF $ 1252 Direct 694 Direct $ 834 Direct $ 28 Income 600000 SF $ 4040 Direct 1667 Direct $ 2690 Direct $ 91 Income
$ 187 Indirect 134 Indirect $ 61 Indirect $ 05 Corp $ 604 Indirect 322 Indirect $ 198 Indirect $ 16 Corp
$ 404 Induced 309 Induced $ 154 Induced $ 09 Property $ 1303 Induced 742 Induced $ 495 Induced $ 30 Property
$ 1844 Total 1138 Total $ 1049 Total $ 43 Total $ 5947 Total 2731 Total $ 3383 Total $ 137 Total
RESIDENTIAL 300 DU $ 09 Property 300 DU $ 33 Property
SENIOR HOUSING 150 DU $ 04 Property 300 DU $ 11 Property
MIXED-USE INFILL DEVELOPMENT 100000 SF $ 240 Direct 179 Direct $ 77 Direct $ 03 Income 250000 SF $ 806 Direct 471 Direct $ 257 Direct $ 09 Income
Retail 20 $ 45 Indirect 31 Indirect $ 14 Indirect $ 01 Corp $ 152 Indirect 77 Indirect $ 47 Indirect $ 03 Corp
Office 20 $ 34 Induced 28 Induced $ 14 Induced $ 02 Property $ 112 Induced 71 Induced $ 46 Induced $ 10 Property
Residential 60 $ 319 Total 238 Total $ 104 Total $ 05 Total $ 1070 Total 620 Total $ 350 Total $ 23 Total
CONVENTION CENTER 150000 SF $ 147 Direct 119 Direct $ 44 Direct $ 02 Income
(Visitor Spending) $ 43 Indirect 25 Indirect $ 13 Indirect $ 01 Corp
$ 24 Induced 15 Induced $ 08 Induced $ 06 Lodging
$ 214 Total 160 Total $ 64 Total $ 08 Total
TOTAL ANNUAL $ 3759 Direct 2416 Direct $ 1652 Direct $ 59 Income $ 16341 Direct 8662 Direct $ 7299 Direct $ 259 Income
$ 696 Indirect 470 Indirect $ 220 Indirect $ 14 Corp $ 2950 Indirect 1664 Indirect $ 938 Indirect $ 62 Corp
$ 802 Induced 623 Induced $ 308 Induced $ 15 Lodging $ 3537 Induced 2276 Induced $ 1365 Induced $ 38 Lodging
$ 5257 Total 3509 Total $ 2180 Total $ 42 Property $ 22827 Total 12602 Total $ 9602 Total $ 188 Property
$ 130 Total $ 546 Total
AGGREGATE TOTAL (30 YEARS) $ 250126 $ 103729 $ 6170 $ 673652 $ 283016 $ 16156
340x 705x
Aggregate Effective Income Tax Rate 2697 Based on BEA Data
Effective Corporate Income Tax Rate 0270 MT DOR Collections BEA GDP
Lodging Tax 7 (4 Lodging Facility Use Tax + 3 Lodging Facility Sales Tax)
Escalation Assumption 30
ONE BIG SKY CENTER
Billings Montana
ECONOMIC amp FISCAL IMPACT ESTIMATES (LOW)
PHASE 1 PHASE 2
Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M) Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M)
HOTEL 200 KEYS $ 160 Direct 160 Direct $ 54 Direct $ 02 Income 300 KEYS $ 398 Direct 240 Direct $ 98 Direct $ 04 Income
$ 47 Indirect 34 Indirect $ 15 Indirect $ 01 Corp $ 117 Indirect 50 Indirect $ 28 Indirect $ 02 Corp
$ 26 Induced 21 Induced $ 09 Induced $ 07 Lodging $ 65 Induced 31 Induced $ 17 Induced $ 18 Lodging
$ 233 Total 214 Total $ 78 Total $ 06 Property $ 580 Total 321 Total $ 143 Total $ 15 Property
$ 16 Total $ 38 Total
RETAIL DINING ENTERTAINMENT 100000 SF $ 363 Direct 496 Direct $ 145 Direct $ 04 Income 225000 SF $ 1088 Direct 1221 Direct $ 435 Direct $ 13 Income
$ 23 Indirect 17 Indirect $ 07 Indirect $ 01 Corp $ 69 Indirect 41 Indirect $ 21 Indirect $ 03 Corp
$ 27 Induced 25 Induced $ 11 Induced $ 04 Property $ 81 Induced 61 Induced $ 34 Induced $ 11 Property
$ 413 Total 537 Total $ 163 Total $ 09 Total $ 1239 Total 1323 Total $ 490 Total $ 28 Total
COMMERCIAL OFFICE 150000 SF $ 1142 Direct 600 Direct $ 324 Direct $ 13 Income 350000 SF $ 3247 Direct 1400 Direct $ 920 Direct $ 37 Income
$ 276 Indirect 205 Indirect $ 87 Indirect $ 04 Corp $ 785 Indirect 479 Indirect $ 246 Indirect $ 12 Corp
$ 191 Induced 174 Induced $ 78 Induced $ 05 Property $ 545 Induced 405 Induced $ 222 Induced $ 15 Property
$ 1609 Total 979 Total $ 488 Total $ 22 Total $ 4577 Total 2284 Total $ 1389 Total $ 64 Total
BIOSCIENCE 50000 SF $ 273 Direct 167 Direct $ 124 Direct $ 04 Income 125000 SF $ 831 Direct 417 Direct $ 378 Direct $ 13 Income
$ 32 Indirect 25 Indirect $ 11 Indirect $ 01 Corp $ 97 Indirect 62 Indirect $ 35 Indirect $ 03 Corp
$ 64 Induced 51 Induced $ 23 Induced $ 02 Property $ 194 Induced 128 Induced $ 70 Induced $ 06 Property
$ 368 Total 243 Total $ 158 Total $ 07 Total $ 1122 Total 607 Total $ 483 Total $ 22 Total
HEALTHCARE 250000 SF $ 1136 Direct 694 Direct $ 756 Direct $ 26 Income 600000 SF $ 3324 Direct 1667 Direct $ 2213 Direct $ 75 Income
$ 170 Indirect 134 Indirect $ 56 Indirect $ 05 Corp $ 497 Indirect 322 Indirect $ 163 Indirect $ 13 Corp
$ 366 Induced 309 Induced $ 139 Induced $ 09 Property $ 1072 Induced 742 Induced $ 408 Induced $ 30 Property
$ 1672 Total 1138 Total $ 951 Total $ 39 Total $ 4893 Total 2731 Total $ 2783 Total $ 118 Total
RESIDENTIAL 300 DU $ 08 Property 300 DU $ 33 Property
SENIOR HOUSING 150 DU $ 03 Property 300 DU $ 11 Property
MIXED-USE INFILL DEVELOPMENT 100000 SF $ 225 Direct 179 Direct $ 72 Direct $ 03 Income 250000 SF $ 706 Direct 471 Direct $ 228 Direct $ 08 Income
Retail 20 $ 41 Indirect 31 Indirect $ 13 Indirect $ 01 Corp $ 128 Indirect 77 Indirect $ 40 Indirect $ 03 Corp
Office 20 $ 31 Induced 28 Induced $ 13 Induced $ 01 Property $ 96 Induced 71 Induced $ 39 Induced $ 10 Property
Residential 60 $ 297 Total 238 Total $ 98 Total $ 05 Total $ 929 Total 620 Total $ 307 Total $ 21 Total
CONVENTION CENTER 150000 SF $ 139 Direct 139 Direct $ 46 Direct $ 02 Income
(Visitor Spending) $ 41 Indirect 29 Indirect $ 13 Indirect $ 01 Corp
$ 23 Induced 18 Induced $ 08 Induced $ 06 Lodging
$ 202 Total 186 Total $ 68 Total $ 08 Total
TOTAL ANNUAL $ 3436 Direct 2435 Direct $ 1521 Direct $ 54 Income $ 13783 Direct 8384 Direct $ 6127 Direct $ 217 Income
$ 630 Indirect 474 Indirect $ 202 Indirect $ 13 Corp $ 2461 Indirect 1610 Indirect $ 780 Indirect $ 52 Corp
$ 728 Induced 626 Induced $ 282 Induced $ 13 Lodging $ 2940 Induced 2201 Induced $ 1133 Induced $ 33 Lodging
$ 4795 Total 3535 Total $ 2005 Total $ 38 Property $ 19183 Total 12195 Total $ 8040 Total $ 178 Property
$ 118 Total $ 480 Total
AGGREGATE TOTAL (30 YEARS) $ 194508 $ 81357 $ 4781 $ 518608 $ 217319 $ 12946
263x 565x
Aggregate Effective Income Tax Rate 2697 Based on BEA Data
Effective Corporate Income Tax Rate 0270 MT DOR Collections BEA GDP
Lodging Tax 7 (4 Lodging Facility Use Tax + 3 Lodging Facility Sales Tax)
Escalation Assumption 20
ONE BIG SKY CENTER
Billings Montana
ECONOMIC amp FISCAL IMPACTS
PHASE 1 FULL BUILDOUT
LOW HIGH LOW HIGH
PROGRAM 10 Million SF 10 Million SF 40 Million SF 50 Million SF
PRIVATE INVESTMENT $3270 Million $3520 Million $10 Billion $20 Billion
VISITATION 10 Million 10 Million 40 Million 40 Million
ECONOMIC OUTPUT 4794618805 (Annually) 5257467756 (Annually) 1918349973 (Annually) 2282740941 (Annually)
(Direct Indirect amp Induced)
EMPLOYMENT 3535 Jobs 3509 Jobs 12195 Jobs 12602 Jobs
(Direct Indirect amp Induced)
EARNINGS 2005455783 (Annually) 2180306006 (Annually) 804037145 (Annually) 9602425147 (Annually)
(Direct Indirect amp Induced)
FISCAL IMPACTS 117843492 (Annually) 1296944889 (Annually) 479704742 (Annually) 5459243472 (Annually)
4780684117 (30 years) 6170269226 (30 years) 1294591687 (30 years) 1615599362 (30 years)
ONE BIG SKY CENTER
Billings Montana
MASTER PROJECT BUDGET - PHASED
TOTAL PHASE 1 PHASE 2
USES OF FUNDS ($MM)
PRIVATE
Hotel $ 1675 $ 553 $ 1122
Retail Dining Entertainment $ 1267 $ 314 $ 953
Commerical Office $ 1829 $ 442 $ 1387
Bioscience $ 907 $ 208 $ 700
Healthcare $ 4860 $ 1015 $ 3846
Residential $ 2894 $ 633 $ 2261
Senior Housing $ 1069 $ 291 $ 778
Mixed-Use Renovation $ 792 $ 182 $ 611
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 322 $ 322 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
ONE BIG SKY CENTER
Billings Montana
USES OF FUNDS - PHASED
TOTAL PHASE 1 PHASE 2
USES OF FUNDS ($MM)
PRIVATE
Land $ 1013 $ 248 $ 765
Construction $ 7838 $ 1711 $ 6128
FFampE $ 726 $ 137 $ 589
Development $ 2175 $ 450 $ 1725
Financing $ 483 $ 101 $ 382
TI Allowances $ 2036 $ 485 $ 1551
Contingency $ 659 $ 140 $ 519
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 687 $ 687 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
ONE BIG SKY CENTER
Billings Montana
SOURCES amp USES - PHASED
TOTAL PHASE 1 PHASE 2
SOURCES OF FUNDS ($MM)
PRIVATE
Equity Investment $ 4370 $ 1023 $ 3347
Debt Financing $ 10560 $ 2249 $ 8311
PUBLIC
Public Investment $ 2292 $ 1817 $ 475
bull City
bull State
bull Federal
TOTAL $ 17222 $ 5089 $ 12133
USES OF FUNDS ($MM)
PRIVATE
Land $ 1013 $ 248 $ 765
Construction $ 7838 $ 1711 $ 6128
FFampE $ 726 $ 137 $ 589
Development $ 2175 $ 450 $ 1725
Financing $ 483 $ 101 $ 382
TI Allowances $ 2036 $ 485 $ 1551
Contingency $ 659 $ 140 $ 519
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 687 $ 687 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
PRIVATE 1493002000 327189000 1165813000
PUBLIC 229157000 181689000 47468000
ONE BIG SKY CENTER
Billings Montana
SOURCES amp USES - PHASED
TOTAL PHASE 1 PHASE 2
SOURCES OF FUNDS ($MM)
PRIVATE
Equity Investment $ 4370 $ 1023 $ 3347
Debt Financing $ 10560 $ 2249 $ 8311
PUBLIC
City Investment $ 602 $ 365 $ 237
State Investment $ 1689 $ 1452 $ 237
TOTAL $ 17222 $ 5089 $ 12133
USES OF FUNDS ($MM)
PRIVATE
Land $ 1047 $ 282 $ 765
Construction $ 8074 $ 1946 $ 6128
FFampE $ 726 $ 137 $ 589
Development $ 2237 $ 512 $ 1725
Financing $ 497 $ 115 $ 382
TI Allowances $ 2036 $ 485 $ 1551
Contingency $ 678 $ 160 $ 519
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 322 $ 322 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
PRIVATE 1493002000 327189000 1165813000
PUBLIC 229157000 181689000 47468000
ONE BIG SKY CENTER
Billings Montana
GAP ANALYSIS - PHASE 1
HOTEL RETAIL OFFICE BIOSCIENCE HEALTHCARE RESIDENTIAL SR HOUSING TOTAL
200 KEYS 100000 SF 150000 SF 50000 SF 250000 SF 300 DU 150 DU
MARKET CONDITIONS $15441 Night $2484 SF $1673 SF $2575 SF $35012 SF $1518 MO $1389 MO
(Current Dollars) Avg Daily Rate NNN Rental Rate NNN Rental Rate NNN Rental Rate Building Value Avg Rental Rate Avg Rental Rate
REQUIRED FOR DEVELOPMENT $19064 Night $2484 SF $2290 SF $3192 SF $35012 SF $1829 MO $1691 MO
(Current Dollars) Avg Daily Rate NNN Rental Rate NNN Rental Rate NNN Rental Rate Building Value Avg Rental Rate Avg Rental Rate
PROJECTED VALUE ($M) $ 453 $ 314 $ 322 $ 168 $ 1015 $ 561 $ 258 $ 3090
PROJECTED COST ($M) $ 553 $ 314 $ 442 $ 208 $ 1015 $ 633 $ 291 $ 3455
GAP ($M) ($ 100) $ - 0 ($ 120) ($ 40) $ - 0 ($ 72) ($ 33) ($ 365)
ONE BIG SKY CENTER
Billings Montana
PROGRAM amp PHASING
PHASE 1 PHASE 2 TOTAL
HOTEL 200 KEYS 300 KEYS 500 KEYS
160000 SF 240000 SF 400000 SF
RETAIL DINING ENTERTAINMENT 100000 SF 225000 SF 325000 SF
COMMERCIAL OFFICE 150000 SF 350000 SF 500000 SF
BIOSCIENCE 50000 SF 125000 SF 175000 SF
HEALTHCARE 250000 SF 600000 SF 850000 SF
Ambulatory Medical Wellness 75000 SF 400000 SF 475000 SF
Medical Office 175000 SF 200000 375000 SF
RESIDENTIAL 300 DU 800 DU 1100 DU
300000 SF 800000 SF 1100000 SF
SENIOR HOUSING 150 DU 300 DU 450 DU
105000 SF 210000 SF 315000 SF
MIXED-USE INFILL DEVELOPMENT 100000 SF 250000 SF 350000 SF
CONVENTION CENTER 100000 SF 50000 SF 150000 SF
CIVIC 80000 SF 50000 SF 130000 SF
PARKING STRUCTURE 1030 Stalls 827 Stalls 1857 Stalls Residential assumed to separately build and finance its own parking in Phase 2
TOTAL (NIC Parking) 1395000 SF 2900000 SF 4295000 SF
Page 6: PROGRAM & VISION STATEMENT · program & vision statement ONE Big Sky District is a large, mixed-use, multi-anchor program supporting broad development goals driving the long-term

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 77

PROGRAM amp VISION STATEMENT

Based on our preliminary market analysis the City of Billings has the potential to support a diverse program in the ONE Big Sky Center Development Districts of the magnitude as described below

While these forecasts are preliminary and based primarily on macro-level demand analysis the demographic strength economic base industry growth metrics combined with the regional trade area of Billings indicate that growth patterns will support a robust development program over a 15 to 20 year planning horizon

PROGRAM STATEMENT

Program

Gap Analysis - Phase 1

Sources amp Uses

SOURCES OF FUNDS

Phase 1

Phase 1

PRIVATEPUBLIC327189000181689000

SOURCES OF FUNDS

Full Buildout

Full Buildout

PRIVATEPUBLIC1493002000229157000

Sources amp Uses (Simplified)

SOURCES OF FUNDS

Phase 1

Phase 1

PRIVATEPUBLIC327189000181689000

SOURCES OF FUNDS

Full Buildout

Full Buildout

PRIVATEPUBLIC1493002000229157000

MPB by Uses

MPB by Component

Economic amp Fiscal Summary

Economic amp Fiscal Calcs LOW

Economic amp Fiscal Calcs HIGH

Hotel - Phase 1

Hotel - Phase 1 (Gap)

Hotel - Phase 2

Retail - Phase 1

Retail - Phase 2

Office - Phase 1

Office - Phase 1 (Gap)

Office - Phase 2

Bioscience - Phase 1

Bioscience - Phase 1 (Gap)

Bioscience - Phase 2

Health - Phase 1

Health - Phase 2

Medical Office - Phase 1

Medical Office - Phase 2

Residential - Phase 1

Residential - Phase 1 (Gap)

Residential - Phase 2

Senior Housing - Phase 1

Senior Housing - Phase 1 (Gap)

Senior Housing - Phase 2

Mixed-Use Infill - Phase 1

Mixed-Use Infill - Phase 2

Convention - Phase 1

Civic - Phase 1

Parking - Phase 1

Parking - Phase 2

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 88

PROGRAM amp VISION STATEMENT

Why the time is now for this project

- Billings needs a defined vision and plan that will drive our economic future

- Serious workforce challenges in that will only get worse in upcoming years

- Flat economic growth which will result in a growing tax burden on existing property owners

- Billings is in a regional competition ndash with communities around Billings making large investments in their amenities and infrastructure to attract the businesses and workforce of tomorrow

URGENT ISSUES REQUIRING ACTION

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ONE BIG SKY CENTER
Billings Montana
STRUCTURED PARKING - PHASE 2
USES OF FUNDS
Land Acquisition $ -
Construction $ 37200000 $45000 Stall
Development $ 5580000 15
Financing (500 Interest) $ 2428000 85 Loan to Project Costs
Contingency $ 2260000 5
TOTAL $ 47468000 $57425 Stall
Structured Parking Program 827 Stalls
ONE BIG SKY CENTER
Billings Montana
STRUCTURED PARKING - PHASE 1
USES OF FUNDS
Land Acquisition $ -
Construction $ 33990000 $33000 Stall
Development $ 5099000 15
Financing (500 Interest) $ 2219000 85 Loan to Project Costs
Contingency $ 2065000 5
TOTAL $ 43373000 $42110 Stall
Structured Parking Program 1030 Stalls
ONE BIG SKY CENTER
Billings Montana
CIVIC INFRASTRUCTURE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ - Land Acquisition $ - $000 SF
Construction $ 15040000 $18800 SF
Debt Financing $ 32150000 FFampE $ 8080000 $10100 SF
Development $ 5780000 25
Financing $ 1719000 100 Loan to Project Costs
Contingency $ 1531000 5
TOTAL $ 32150000 TOTAL $ 32150000 $40188 SF
Convention Center Program 80000 SF Escalation Rate 50
Year Completed 2022
Interest Rate 450
ONE BIG SKY CENTER
Billings Montana
CONVENTION CENTER - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ - Land Acquisition $ - $000 SF
Construction $ 36300000 $36300 SF
Debt Financing $ 69666000 FFampE $ 13800000 $13800 SF
Development $ 12525000 25
Financing $ 3724000 100 Loan to Project Costs
Contingency $ 3317000 5
TOTAL $ 69666000 TOTAL $ 69666000 $69666 SF
Convention Center Program 100000 SF Escalation Rate 50
Year Completed 2022
Interest Rate 450
ONE BIG SKY CENTER
Billings Montana
MIXED-USE INFILL DEVELOPMENT - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 21368000 Land Acquisition $ 11750000 $4700 SF
Construction $ 36000000 $14400 SF
Debt Financing $ 39683000 Development $ 9000000 25
Financing $ 1953000 65 Loan to Project Costs
Contingency $ 2348000 5
TOTAL $ 61051000 TOTAL $ 61051000 $24420 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000 250000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2245 $2312 $2382 $2453 $2527 $2603 $2681 $2761 $2844 $2929 $3017 $3108 $3201 $3297 $3396 $3498 3
OPERATING REVENUES
Rent (NNN) 5613000 5781000 5954000 6133000 6317000 6506000 6702000 6903000 7110000 7323000 7543000 7769000 8002000 8242000 8489000 8744000
Expense Reimbursements 4212000 4296000 4383000 4469000 4560000 4650000 4744000 4838000 4935000 5034000 5135000 5237000 5342000 5448000 5557000 5669000
Vacancy Allowance (983000) (756000) (517000) (530000) (544000) (558000) (572000) (587000) (602000) (618000) (634000) (650000) (667000) (685000) (702000) (721000)
Total Revenues 8842000 9321000 9820000 10072000 10333000 10598000 10874000 11154000 11443000 11739000 12044000 12356000 12677000 13005000 13344000 13692000
OPERATING EXPENSES
Operating Expenses 3209000 3273000 3339000 3405000 3474000 3543000 3614000 3686000 3760000 3835000 3912000 3990000 4070000 4151000 4234000 4319000
Property Taxes 1003000 1023000 1044000 1064000 1086000 1107000 1130000 1152000 1175000 1199000 1223000 1247000 1272000 1297000 1323000 1350000
Total Expenses 4212000 4296000 4383000 4469000 4560000 4650000 4744000 4838000 4935000 5034000 5135000 5237000 5342000 5448000 5557000 5669000
NET OPERATING INCOME 4630000 5025000 5437000 5603000 5773000 5948000 6130000 6316000 6508000 6705000 6909000 7119000 7335000 7557000 7787000 8023000
Annual Debt Service (500 25 -yr Amort) 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794 2783794
DSCR 166x 181x 195x 201x 207x 214x 220x 227x 234x 241x 248x 256x 263x 271x 280x
Mortgage Balance $38864774 $38004685 $37100593 $36150245 $35151276 $34101198 $32997396 $31837122 $30617485 $29335450 $27987823 $26571249 $25082200 $23516969 $21871658
BEFORE TAX CASH FLOW 1846206 2241206 2653206 2819206 2989206 3164206 3346206 3532206 3724206 3921206 4125206 4335206 4551206 4773206 5003206
REVERSION CALCULATIONS
Project NOI (Year 16) 8023000
Cap Rate 800
Gross Sales Proceeds 100287500
Less Selling Costs 30 (3008625)
Net Sales Proceeds 97278875
Less Mortgage Balance (21871658)
Net Reversion Proceeds 75407217
Gross Rental Rate $3930 $4031 $4135 $4241 $4351 $4462 $4578 $4696 $4818 $4943 $5071 $5202 $5338 $5476 $5618 $5765
Equity $ (21368000) 00 00 1846206 2241206 2653206 2819206 2989206 3164206 3346206 3532206 3724206 3921206 4125206 4335206 4551206 4773206 80410423
ROE 1453 IRR 86 105 124 132 140 148 157 165 174 184 193 203 213 223 234
ONE BIG SKY CENTER
Billings Montana
MIXED-USE INFILL DEVELOPMENT - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 6354000 Land Acquisition $ 3500000 $3500 SF
Construction $ 10700000 $10700 SF
Debt Financing $ 11800000 Development $ 2675000 25
Financing $ 581000 65 Loan to Project Costs
Contingency $ 698000 5
TOTAL $ 18154000 TOTAL $ 18154000 $18154 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $1670 $1720 $1772 $1825 $1880 $1936 $1994 $2054 $2116 $2179 $2244 $2312 $2381 $2452 $2526 $2602 $2680 $2760 $2843 $2928 $3016 3
OPERATING REVENUES
Rent (NNN) 1670000 1720000 1772000 1825000 1880000 1936000 1994000 2054000 2116000 2179000 2244000 2312000 2381000 2452000 2526000 2602000 2680000 2760000 2843000 2928000 3016000
Expense Reimbursements 1254000 1279000 1305000 1330000 1358000 1384000 1412000 1440000 1469000 1498000 1528000 1559000 1590000 1622000 1655000 1687000 1721000 1756000 1791000 1827000 1863000
Vacancy Allowance (292000) (225000) (154000) (158000) (162000) (166000) (170000) (175000) (179000) (184000) (189000) (194000) (199000) (204000) (209000) (214000) (220000) (226000) (232000) (238000) (244000)
Total Revenues 2632000 2774000 2923000 2997000 3076000 3154000 3236000 3319000 3406000 3493000 3583000 3677000 3772000 3870000 3972000 4075000 4181000 4290000 4402000 4517000 4635000
OPERATING EXPENSES
Operating Expenses 955000 974000 994000 1013000 1034000 1054000 1075000 1097000 1119000 1141000 1164000 1187000 1211000 1235000 1260000 1285000 1311000 1337000 1364000 1391000 1419000
Property Taxes 299000 305000 311000 317000 324000 330000 337000 343000 350000 357000 364000 372000 379000 387000 395000 402000 410000 419000 427000 436000 444000
Total Expenses 1254000 1279000 1305000 1330000 1358000 1384000 1412000 1440000 1469000 1498000 1528000 1559000 1590000 1622000 1655000 1687000 1721000 1756000 1791000 1827000 1863000
NET OPERATING INCOME 1378000 1495000 1618000 1667000 1718000 1770000 1824000 1879000 1937000 1995000 2055000 2118000 2182000 2248000 2317000 2388000 2460000 2534000 2611000 2690000 2772000
Annual Debt Service (500 25 -yr Amort) 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779 827779
DSCR 166x 181x 195x 201x 208x 214x 220x 227x 234x 241x 248x 256x 264x 272x 280x 288x 297x 306x 315x 325x
Mortgage Balance $11556695 $11300942 $11032104 $10749512 $10452462 $10140215 $9811992 $9466977 $9104310 $8723088 $8322362 $7901135 $7458357 $6992925 $6503681 $5989406 $5448820 $4880577 $4283261 $3655385
BEFORE TAX CASH FLOW 550221 667221 790221 839221 890221 942221 996221 1051221 1109221 1167221 1227221 1290221 1354221 1420221 1489221 1560221 1632221 1706221 1783221 1862221
REVERSION CALCULATIONS
Project NOI (Year 16) 2772000
Cap Rate 800
Gross Sales Proceeds 34650000
Less Selling Costs 30 (1039500)
Net Sales Proceeds 33610500
Less Mortgage Balance (3655385)
Net Reversion Proceeds 29955115
Gross Rental Rate $2924 $2999 $3077 $3155 $3238 $3320 $3406 $3494 $3585 $3677 $3772 $3871 $3971 $4074 $4181 $4289 $4401 $4516 $4634 $4755 $4879
Equity $ (6354000) 00 00 550221 667221 790221 839221 890221 942221 996221 1051221 1109221 1167221 1227221 1290221 1354221 1420221 1489221 1560221 1632221 1706221 1783221 31817335
ROE 1433 IRR 87 105 124 132 140 148 157 165 175 184 193 203 213 224 234 246 257 269 281 293
ONE BIG SKY CENTER
Billings Montana
SENIOR HOUSING - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 23350000 Land Acquisition $ 4800000 $16000 DU
Construction $ 54000000 $180000 DU
Debt Financing $ 54485000 FFampE $ 3000000 $10000 DU
Development $ 11400000 20
Financing $ 1157000 70 Loan to Project Costs
Contingency $ 3478000 5
TOTAL $ 77835000 TOTAL $ 77835000 $259450 DU
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Number of Units 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Monthly Rent $2620 $2699 $2780 $2863 $2949 $3037 $3128 $3222 $3319 $3419 $3521 $3627 $3735 $3848 $3963 $4082
Rental Rate per Square Foot $440 $453 $467 $481 $495 $510 $525 $541 $557 $574 $591 $609 $627 $646 $666 $686 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 9432000 9715000 10006000 10307000 10616000 10934000 11262000 11600000 11948000 12307000 12676000 13056000 13448000 13851000 14267000 14695000
Miscellaneous 189000 194000 200000 206000 212000 219000 225000 232000 239000 246000 254000 261000 269000 277000 285000 294000 2 of PGI
Vacancy Collections Losses (962000) (495000) (510000) (526000) (541000) (558000) (574000) (592000) (609000) (628000) (647000) (666000) (686000) (706000) (728000) (749000)
Effective Gross Income 8659000 9414000 9696000 9987000 10287000 10595000 10913000 11240000 11578000 11925000 12283000 12651000 13031000 13422000 13824000 14240000
OPERATING EXPENSES
Administrative 160000 165000 170000 175000 180000 185000 191000 197000 203000 209000 215000 221000 228000 235000 242000 249000 17 of PGI
Advertising 67000 69000 71000 73000 75000 77000 80000 82000 84000 87000 90000 92000 95000 98000 101000 104000 07 of PGI
Repairs amp Maintenance 266000 274000 283000 291000 300000 309000 318000 328000 338000 348000 358000 369000 380000 391000 403000 415000 28 of PGI
Utilities 400000 412000 424000 437000 450000 463000 477000 492000 506000 521000 537000 553000 570000 587000 605000 623000 42 of PGI
Payroll 480000 494000 509000 524000 540000 556000 573000 590000 608000 626000 645000 664000 684000 704000 725000 747000 50 of PGI
Insurance 187000 192000 198000 204000 210000 216000 223000 229000 236000 243000 251000 258000 266000 274000 282000 291000 19 of PGI
Property Taxes 1066000 1098000 1131000 1165000 1200000 1236000 1273000 1311000 1350000 1391000 1432000 1475000 1520000 1565000 1612000 1660000 111 of PGI
Management Fee 346000 377000 388000 399000 411000 424000 437000 450000 463000 477000 491000 506000 521000 537000 553000 570000 40 of EGI
Reserves 173000 188000 194000 200000 206000 212000 218000 225000 232000 239000 246000 253000 261000 268000 276000 285000 20 of EGI
Total Expenses 3145000 3269000 3368000 3468000 3572000 3678000 3790000 3904000 4020000 4141000 4265000 4391000 4525000 4659000 4799000 4944000
NET OPERATING INCOME 5514000 6145000 6328000 6519000 6715000 6917000 7123000 7336000 7558000 7784000 8018000 8260000 8506000 8763000 9025000 9296000
Annual Debt Service (500 25 -yr Amort) 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167 3822167
DSCR 144x 161x 166x 171x 176x 181x 186x 192x 198x 204x 210x 216x 223x 229x 236x
Mortgage Balance $53361570 $52180663 $50939339 $49634506 $48262916 $46821152 $45305625 $43712561 $42037993 $40277751 $38427451 $36482486 $34438013 $32288942 $30029919
BEFORE TAX CASH FLOW 1691833 2322833 2505833 2696833 2892833 3094833 3300833 3513833 3735833 3961833 4195833 4437833 4683833 4940833 5202833
REVERSION CALCULATIONS
Project NOI (Year 21) 9296000
Cap Rate 700
Gross Sales Proceeds 132800000
Less Selling Costs 30 (3984000)
Net Sales Proceeds 128816000
Less Mortgage Balance (30029919)
Net Reversion Proceeds 98786081
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (23350000) 00 00 1691833 2322833 2505833 2696833 2892833 3094833 3300833 3513833 3735833 3961833 4195833 4437833 4683833 4940833 103988914
ROE 1460 IRR 72 99 107 115 124 133 141 150 160 170 180 190 201 212 223
ONE BIG SKY CENTER
Billings Montana
SENIOR HOUSING - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 7738000 Land Acquisition $ 1800000 $12000 DU
Construction $ 20100000 $134000 DU
Debt Financing $ 18054000 FFampE $ 1200000 $8000 DU
Development $ 4260000 20
Public Investment $ 3300000 Financing $ 432000 70 Loan to Project Costs
Contingency $ 1300000 5
TOTAL $ 29092000 TOTAL $ 29092000 $193947 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Monthly Rent $1610 $1658 $1708 $1759 $1812 $1866 $1922 $1980 $2039 $2101 $2164 $2229 $2295 $2364 $2435 $2508 $2584 $2661 $2741 $2823 $2908
Rental Rate per Square Foot $270 $278 $286 $295 $304 $313 $322 $332 $342 $352 $363 $374 $385 $397 $408 $421 $433 $446 $460 $473 $488 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 2898000 2985000 3074000 3167000 3262000 3360000 3460000 3564000 3671000 3781000 3895000 4012000 4132000 4256000 4383000 4515000 4650000 4790000 4934000 5082000 5234000
Miscellaneous 58000 60000 61000 63000 65000 67000 69000 71000 73000 76000 78000 80000 83000 85000 88000 90000 93000 96000 99000 102000 105000 2 of PGI
Vacancy Collections Losses (296000) (152000) (157000) (162000) (166000) (171000) (176000) (182000) (187000) (193000) (199000) (205000) (211000) (217000) (224000) (230000) (237000) (244000) (252000) (259000) (267000)
Effective Gross Income 2660000 2893000 2978000 3068000 3161000 3256000 3353000 3453000 3557000 3664000 3774000 3887000 4004000 4124000 4247000 4375000 4506000 4642000 4781000 4925000 5072000
OPERATING EXPENSES
Administrative 49000 51000 52000 54000 55000 57000 59000 60000 62000 64000 66000 68000 70000 72000 74000 77000 79000 81000 84000 86000 89000 17 of PGI
Advertising 20000 21000 22000 22000 23000 24000 24000 25000 26000 27000 28000 28000 29000 30000 31000 32000 33000 34000 35000 36000 37000 07 of PGI
Repairs amp Maintenance 82000 84000 87000 89000 92000 95000 98000 101000 104000 107000 110000 113000 117000 120000 124000 128000 131000 135000 139000 144000 148000 28 of PGI
Utilities 123000 126000 130000 134000 138000 142000 147000 151000 156000 160000 165000 170000 175000 180000 186000 191000 197000 203000 209000 215000 222000 42 of PGI
Payroll 147000 152000 156000 161000 166000 171000 176000 181000 187000 192000 198000 204000 210000 216000 223000 230000 236000 244000 251000 258000 266000 50 of PGI
Insurance 57000 59000 61000 63000 64000 66000 68000 70000 73000 75000 77000 79000 82000 84000 87000 89000 92000 95000 98000 100000 104000 19 of PGI
Property Taxes 327000 337000 347000 358000 369000 380000 391000 403000 415000 427000 440000 453000 467000 481000 495000 510000 525000 541000 558000 574000 591000 111 of PGI
Management Fee 106000 116000 119000 123000 126000 130000 134000 138000 142000 147000 151000 155000 160000 165000 170000 175000 180000 186000 191000 197000 203000 40 of EGI
Reserves 53000 58000 60000 61000 63000 65000 67000 69000 71000 73000 75000 78000 80000 82000 85000 88000 90000 93000 96000 99000 101000 20 of EGI
Total Expenses 964000 1004000 1034000 1065000 1096000 1130000 1164000 1198000 1236000 1272000 1310000 1348000 1390000 1430000 1475000 1520000 1563000 1612000 1661000 1709000 1761000
NET OPERATING INCOME 1696000 1889000 1944000 2003000 2065000 2126000 2189000 2255000 2321000 2392000 2464000 2539000 2614000 2694000 2772000 2855000 2943000 3030000 3120000 3216000 3311000
Annual Debt Service (500 25 -yr Amort) 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503 1266503
DSCR 134x 149x 153x 158x 163x 168x 173x 178x 183x 189x 195x 200x 206x 213x 219x 225x 232x 239x 246x 254x
Mortgage Balance $17681743 $17290441 $16879120 $16446754 $15992267 $15514529 $15012348 $14484474 $13929594 $13346325 $12733215 $12088736 $11411286 $10699175 $9950632 $9163791 $8336695 $7467282 $6553389 $5592739
BEFORE TAX CASH FLOW 429497 622497 677497 736497 798497 859497 922497 988497 1054497 1125497 1197497 1272497 1347497 1427497 1505497 1588497 1676497 1763497 1853497 1949497
REVERSION CALCULATIONS
Project NOI (Year 21) 3311000
Cap Rate 700
Gross Sales Proceeds 47300000
Less Selling Costs 30 (1419000)
Net Sales Proceeds 45881000
Less Mortgage Balance (5592739)
Net Reversion Proceeds 40288261
NOI Margin 638 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (7738000) 00 00 429497 622497 677497 736497 798497 859497 922497 988497 1054497 1125497 1197497 1272497 1347497 1427497 1505497 1588497 1676497 1763497 1853497 42237758
ROE 1304 IRR 56 80 88 95 103 111 119 128 136 145 155 164 174 184 195 205 217 228 240 252
ONE BIG SKY CENTER
Billings Montana
SENIOR HOUSING - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 8728000 Land Acquisition $ 1800000 $12000 DU
Construction $ 20100000 $134000 DU
Debt Financing $ 20364000 FFampE $ 1200000 $8000 DU
Development $ 4260000 20
Financing $ 432000 70 Loan to Project Costs
Contingency $ 1300000 5
TOTAL $ 29092000 TOTAL $ 29092000 $193947 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Monthly Rent $1960 $2019 $2079 $2142 $2206 $2272 $2340 $2411 $2483 $2557 $2634 $2713 $2794 $2878 $2965 $3054 $3145 $3240 $3337 $3437 $3540
Rental Rate per Square Foot $330 $340 $350 $361 $371 $383 $394 $406 $418 $431 $443 $457 $471 $485 $499 $514 $530 $545 $562 $579 $596 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 3528000 3634000 3743000 3855000 3971000 4090000 4213000 4339000 4469000 4603000 4741000 4884000 5030000 5181000 5336000 5497000 5661000 5831000 6006000 6186000 6372000
Miscellaneous 71000 73000 75000 77000 79000 82000 84000 87000 89000 92000 95000 98000 101000 104000 107000 110000 113000 117000 120000 124000 127000 2 of PGI
Vacancy Collections Losses (360000) (185000) (191000) (197000) (203000) (209000) (215000) (221000) (228000) (235000) (242000) (249000) (257000) (264000) (272000) (280000) (289000) (297000) (306000) (316000) (325000)
Effective Gross Income 3239000 3522000 3627000 3735000 3847000 3963000 4082000 4205000 4330000 4460000 4594000 4733000 4874000 5021000 5171000 5327000 5485000 5651000 5820000 5994000 6174000
OPERATING EXPENSES
Administrative 60000 62000 63000 65000 67000 69000 71000 74000 76000 78000 80000 83000 85000 88000 90000 93000 96000 99000 102000 105000 108000 17 of PGI
Advertising 25000 26000 26000 27000 28000 29000 30000 31000 32000 33000 33000 34000 36000 37000 38000 39000 40000 41000 42000 44000 45000 07 of PGI
Repairs amp Maintenance 100000 103000 106000 109000 112000 116000 119000 123000 126000 130000 134000 138000 142000 146000 151000 155000 160000 165000 170000 175000 180000 28 of PGI
Utilities 150000 154000 159000 163000 168000 173000 179000 184000 189000 195000 201000 207000 213000 220000 226000 233000 240000 247000 254000 262000 270000 42 of PGI
Payroll 179000 185000 190000 196000 202000 208000 214000 221000 227000 234000 241000 248000 256000 263000 271000 280000 288000 297000 305000 315000 324000 50 of PGI
Insurance 70000 72000 74000 76000 79000 81000 83000 86000 88000 91000 94000 97000 99000 102000 106000 109000 112000 115000 119000 122000 126000 19 of PGI
Property Taxes 399000 411000 423000 436000 449000 462000 476000 490000 505000 520000 536000 552000 568000 585000 603000 621000 640000 659000 679000 699000 720000 111 of PGI
Management Fee 130000 141000 145000 149000 154000 159000 163000 168000 173000 178000 184000 189000 195000 201000 207000 213000 219000 226000 233000 240000 247000 40 of EGI
Reserves 65000 70000 73000 75000 77000 79000 82000 84000 87000 89000 92000 95000 97000 100000 103000 107000 110000 113000 116000 120000 123000 20 of EGI
Total Expenses 1178000 1224000 1259000 1296000 1336000 1376000 1417000 1461000 1503000 1548000 1595000 1643000 1691000 1742000 1795000 1850000 1905000 1962000 2020000 2082000 2143000
NET OPERATING INCOME 2061000 2298000 2368000 2439000 2511000 2587000 2665000 2744000 2827000 2912000 2999000 3090000 3183000 3279000 3376000 3477000 3580000 3689000 3800000 3912000 4031000
Annual Debt Service (500 25 -yr Amort) 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551 1428551
DSCR 144x 161x 166x 171x 176x 181x 187x 192x 198x 204x 210x 216x 223x 230x 236x 243x 251x 258x 266x 274x
Mortgage Balance $19944113 $19502744 $19038794 $18551107 $18038470 $17499604 $16933170 $16337755 $15711878 $15053980 $14362423 $13635484 $12871354 $12068129 $11223810 $10336294 $9403370 $8422717 $7391892 $6308327
BEFORE TAX CASH FLOW 632449 869449 939449 1010449 1082449 1158449 1236449 1315449 1398449 1483449 1570449 1661449 1754449 1850449 1947449 2048449 2151449 2260449 2371449 2483449
REVERSION CALCULATIONS
Project NOI (Year 21) 4031000
Cap Rate 700
Gross Sales Proceeds 57585714
Less Selling Costs 30 (1727571)
Net Sales Proceeds 55858143
Less Mortgage Balance (6308327)
Net Reversion Proceeds 49549816
NOI Margin 636 652 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (8728000) 00 00 632449 869449 939449 1010449 1082449 1158449 1236449 1315449 1398449 1483449 1570449 1661449 1754449 1850449 1947449 2048449 2151449 2260449 2371449 52033265
ROE 1419 IRR 72 100 108 116 124 133 142 151 160 170 180 190 201 212 223 235 246 259 272 285
ONE BIG SKY CENTER
Billings Montana
RESIDENTIAL - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 67840000 Land Acquisition $ 16000000 $20000 DU
Construction $ 156000000 $195000 DU
Debt Financing $ 158294000 FFampE $ 8000000 $10000 DU
Development $ 32800000 20
Financing $ 3328000 70 Loan to Project Costs
Contingency $ 10006000 5
TOTAL $ 226134000 TOTAL $ 226134000 $282668 DU
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Number of Units 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800
Average Monthly Rent $2840 $2925 $3013 $3103 $3196 $3292 $3391 $3493 $3598 $3706 $3817 $3931 $4049 $4171 $4296 $4425
Rental Rate per Square Foot $355 $366 $377 $388 $400 $412 $424 $437 $450 $463 $477 $491 $506 $521 $537 $553 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 27264000 28082000 28924000 29792000 30686000 31606000 32555000 33531000 34537000 35573000 36641000 37740000 38872000 40038000 41239000 42476000
Miscellaneous 545000 562000 578000 596000 614000 632000 651000 671000 691000 711000 733000 755000 777000 801000 825000 850000 2 of PGI
Vacancy Collections Losses (2781000) (1432000) (1475000) (1519000) (1565000) (1612000) (1660000) (1710000) (1761000) (1814000) (1869000) (1925000) (1982000) (2042000) (2103000) (2166000)
Effective Gross Income 25028000 27212000 28027000 28869000 29735000 30626000 31546000 32492000 33467000 34470000 35505000 36570000 37667000 38797000 39961000 41160000
OPERATING EXPENSES
Administrative 462000 476000 490000 505000 520000 536000 552000 568000 585000 603000 621000 640000 659000 679000 699000 720000 17 of PGI
Advertising 193000 198000 204000 210000 217000 223000 230000 237000 244000 251000 259000 267000 275000 283000 291000 300000 07 of PGI
Repairs amp Maintenance 770000 793000 817000 842000 867000 893000 920000 947000 976000 1005000 1035000 1066000 1098000 1131000 1165000 1200000 28 of PGI
Utilities 1155000 1190000 1226000 1262000 1300000 1339000 1379000 1421000 1463000 1507000 1553000 1599000 1647000 1697000 1747000 1800000 42 of PGI
Payroll 1386000 1428000 1471000 1515000 1560000 1607000 1655000 1705000 1756000 1809000 1863000 1919000 1977000 2036000 2097000 2160000 50 of PGI
Insurance 539000 555000 572000 589000 607000 625000 644000 663000 683000 703000 725000 746000 769000 792000 815000 840000 19 of PGI
Property Taxes 3081000 3173000 3268000 3366000 3467000 3571000 3679000 3789000 3903000 4019000 4140000 4264000 4392000 4524000 4660000 4800000 111 of PGI
Management Fee 1001000 1088000 1121000 1155000 1189000 1225000 1262000 1300000 1339000 1379000 1420000 1463000 1507000 1552000 1598000 1646000 40 of EGI
Reserves 501000 544000 561000 577000 595000 613000 631000 650000 669000 689000 710000 731000 753000 776000 799000 823000 20 of EGI
Total Expenses 9088000 9445000 9730000 10021000 10322000 10632000 10952000 11280000 11618000 11965000 12326000 12695000 13077000 13470000 13871000 14289000
NET OPERATING INCOME 15940000 17767000 18297000 18848000 19413000 19994000 20594000 21212000 21849000 22505000 23179000 23875000 24590000 25327000 26090000 26871000
Annual Debt Service (500 25 -yr Amort) 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452 11104452
DSCR 144x 160x 165x 170x 175x 180x 185x 191x 197x 203x 209x 215x 221x 228x 235x
Mortgage Balance $155030125 $151599264 $147992874 $144201974 $140217124 $136028402 $131625377 $126997085 $122132001 $117018009 $111642377 $105991716 $100051957 $93808309 $87245224
BEFORE TAX CASH FLOW 4835548 6662548 7192548 7743548 8308548 8889548 9489548 10107548 10744548 11400548 12074548 12770548 13485548 14222548 14985548
REVERSION CALCULATIONS
Project NOI (Year 21) 26871000
Cap Rate 700
Gross Sales Proceeds 383871429
Less Selling Costs 30 (11516143)
Net Sales Proceeds 372355286
Less Mortgage Balance (87245224)
Net Reversion Proceeds 285110062
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (67840000) 00 00 4835548 6662548 7192548 7743548 8308548 8889548 9489548 10107548 10744548 11400548 12074548 12770548 13485548 14222548 300095610
ROE 1451 IRR 71 98 106 114 122 131 140 149 158 168 178 188 199 210 221
ONE BIG SKY CENTER
Billings Montana
RESIDENTIAL - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 16834000 Land Acquisition $ 4500000 $15000 DU
Construction $ 43500000 $145000 DU
Debt Financing $ 39278000 FFampE $ 2400000 $8000 DU
Development $ 9180000 20
Public Investment $ 7200000 Financing $ 931000 70 Loan to Project Costs
Contingency $ 2801000 5
TOTAL $ 63312000 TOTAL $ 63312000 $211040 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Monthly Rent $1760 $1813 $1867 $1923 $1981 $2040 $2102 $2165 $2230 $2296 $2365 $2436 $2509 $2585 $2662 $2742 $2824 $2909 $2996 $3086 $3179
Rental Rate per Square Foot $220 $227 $233 $240 $248 $255 $263 $271 $279 $287 $296 $305 $314 $323 $333 $343 $353 $364 $375 $386 $397 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 6336000 6526000 6722000 6924000 7131000 7345000 7566000 7792000 8026000 8267000 8515000 8771000 9034000 9305000 9584000 9871000 10167000 10472000 10787000 11110000 11444000
Miscellaneous 127000 131000 134000 138000 143000 147000 151000 156000 161000 165000 170000 175000 181000 186000 192000 197000 203000 209000 216000 222000 229000 2 of PGI
Vacancy Collections Losses (646000) (333000) (343000) (353000) (364000) (375000) (386000) (397000) (409000) (422000) (434000) (447000) (461000) (475000) (489000) (503000) (519000) (534000) (550000) (567000) (584000)
Effective Gross Income 5817000 6324000 6513000 6709000 6910000 7117000 7331000 7551000 7778000 8010000 8251000 8499000 8754000 9016000 9287000 9565000 9851000 10147000 10453000 10765000 11089000
OPERATING EXPENSES
Administrative 107000 111000 114000 117000 121000 124000 128000 132000 136000 140000 144000 149000 153000 158000 162000 167000 172000 177000 183000 188000 194000 17 of PGI
Advertising 45000 46000 47000 49000 50000 52000 53000 55000 57000 58000 60000 62000 64000 66000 68000 70000 72000 74000 76000 78000 81000 07 of PGI
Repairs amp Maintenance 179000 184000 190000 196000 201000 207000 214000 220000 227000 234000 241000 248000 255000 263000 271000 279000 287000 296000 305000 314000 323000 28 of PGI
Utilities 268000 277000 285000 293000 302000 311000 321000 330000 340000 350000 361000 372000 383000 394000 406000 418000 431000 444000 457000 471000 485000 42 of PGI
Payroll 322000 332000 342000 352000 363000 373000 385000 396000 408000 420000 433000 446000 459000 473000 487000 502000 517000 532000 549000 565000 582000 50 of PGI
Insurance 125000 129000 133000 137000 141000 145000 150000 154000 159000 163000 168000 173000 179000 184000 190000 195000 201000 207000 213000 220000 226000 19 of PGI
Property Taxes 716000 737000 759000 782000 806000 830000 855000 880000 907000 934000 962000 991000 1021000 1051000 1083000 1115000 1149000 1183000 1219000 1255000 1293000 111 of PGI
Management Fee 233000 253000 261000 268000 276000 285000 293000 302000 311000 320000 330000 340000 350000 361000 371000 383000 394000 406000 418000 431000 444000 40 of EGI
Reserves 116000 126000 130000 134000 138000 142000 147000 151000 156000 160000 165000 170000 175000 180000 186000 191000 197000 203000 209000 215000 222000 20 of EGI
Total Expenses 2111000 2195000 2261000 2328000 2398000 2469000 2546000 2620000 2701000 2779000 2864000 2951000 3039000 3130000 3224000 3320000 3420000 3522000 3629000 3737000 3850000
NET OPERATING INCOME 3706000 4129000 4252000 4381000 4512000 4648000 4785000 4931000 5077000 5231000 5387000 5548000 5715000 5886000 6063000 6245000 6431000 6625000 6824000 7028000 7239000
Annual Debt Service (500 25 -yr Amort) 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383 2755383
DSCR 135x 150x 154x 159x 164x 169x 174x 179x 184x 190x 196x 201x 207x 214x 220x 227x 233x 240x 248x 255x
Mortgage Balance $38468124 $37616814 $36721948 $35781300 $34792527 $33753166 $32660629 $31512196 $30305007 $29036056 $27702182 $26300066 $24826214 $23276958 $21648438 $19936601 $18137182 $16245702 $14257450 $12167476
BEFORE TAX CASH FLOW 950617 1373617 1496617 1625617 1756617 1892617 2029617 2175617 2321617 2475617 2631617 2792617 2959617 3130617 3307617 3489617 3675617 3869617 4068617 4272617
REVERSION CALCULATIONS
Project NOI (Year 21) 7239000
Cap Rate 700
Gross Sales Proceeds 103414286
Less Selling Costs 30 (3102429)
Net Sales Proceeds 100311857
Less Mortgage Balance (12167476)
Net Reversion Proceeds 88144381
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (16834000) 00 00 950617 1373617 1496617 1625617 1756617 1892617 2029617 2175617 2321617 2475617 2631617 2792617 2959617 3130617 3307617 3489617 3675617 3869617 4068617 92416998
ROE 1312 IRR 56 82 89 97 104 112 121 129 138 147 156 166 176 186 196 207 218 230 242 254
ONE BIG SKY CENTER
Billings Montana
RESIDENTIAL - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 18994000 Land Acquisition $ 4500000 $15000 DU
Construction $ 43500000 $145000 DU
Debt Financing $ 44318000 FFampE $ 2400000 $8000 DU
Development $ 9180000 20
Financing $ 931000 70 Loan to Project Costs
Contingency $ 2801000 5
TOTAL $ 63312000 TOTAL $ 63312000 $211040 DU
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Units 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Monthly Rent $2120 $2184 $2249 $2317 $2386 $2458 $2531 $2607 $2686 $2766 $2849 $2935 $3023 $3113 $3207 $3303 $3402 $3504 $3609 $3717 $3829
Rental Rate per Square Foot $265 $273 $281 $290 $298 $307 $316 $326 $336 $346 $356 $367 $378 $389 $401 $413 $425 $438 $451 $465 $479 3
Occupancy Rate 900 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950 950
OPERATING REVENUES
Apartment Rents 7632000 7861000 8097000 8340000 8590000 8848000 9113000 9386000 9668000 9958000 10257000 10564000 10881000 11208000 11544000 11890000 12247000 12615000 12993000 13383000 13784000
Miscellaneous 153000 157000 162000 167000 172000 177000 182000 188000 193000 199000 205000 211000 218000 224000 231000 238000 245000 252000 260000 268000 276000 2 of PGI
Vacancy Collections Losses (779000) (401000) (413000) (425000) (438000) (451000) (465000) (479000) (493000) (508000) (523000) (539000) (555000) (572000) (589000) (606000) (625000) (643000) (663000) (683000) (703000)
Effective Gross Income 7006000 7617000 7846000 8082000 8324000 8574000 8830000 9095000 9368000 9649000 9939000 10236000 10544000 10860000 11186000 11522000 11867000 12224000 12590000 12968000 13357000
OPERATING EXPENSES
Administrative 129000 133000 137000 141000 146000 150000 154000 159000 164000 169000 174000 179000 184000 190000 196000 202000 208000 214000 220000 227000 234000 17 of PGI
Advertising 54000 56000 57000 59000 61000 62000 64000 66000 68000 70000 72000 75000 77000 79000 82000 84000 86000 89000 92000 95000 97000 07 of PGI
Repairs amp Maintenance 216000 222000 229000 236000 243000 250000 257000 265000 273000 281000 290000 298000 307000 317000 326000 336000 346000 356000 367000 378000 389000 28 of PGI
Utilities 323000 333000 343000 353000 364000 375000 386000 398000 410000 422000 435000 448000 461000 475000 489000 504000 519000 535000 551000 567000 584000 42 of PGI
Payroll 388000 400000 412000 424000 437000 450000 463000 477000 492000 506000 522000 537000 553000 570000 587000 605000 623000 641000 661000 681000 701000 50 of PGI
Insurance 151000 155000 160000 165000 170000 175000 180000 186000 191000 197000 203000 209000 215000 222000 228000 235000 242000 249000 257000 265000 273000 19 of PGI
Property Taxes 862000 888000 915000 942000 971000 1000000 1030000 1061000 1092000 1125000 1159000 1194000 1230000 1266000 1304000 1344000 1384000 1425000 1468000 1512000 1558000 111 of PGI
Management Fee 280000 305000 314000 323000 333000 343000 353000 364000 375000 386000 398000 409000 422000 434000 447000 461000 475000 489000 504000 519000 534000 40 of EGI
Reserves 140000 152000 157000 162000 166000 171000 177000 182000 187000 193000 199000 205000 211000 217000 224000 230000 237000 244000 252000 259000 267000 20 of EGI
Total Expenses 2543000 2644000 2724000 2805000 2891000 2976000 3064000 3158000 3252000 3349000 3452000 3554000 3660000 3770000 3883000 4001000 4120000 4242000 4372000 4503000 4637000
NET OPERATING INCOME 4463000 4973000 5122000 5277000 5433000 5598000 5766000 5937000 6116000 6300000 6487000 6682000 6884000 7090000 7303000 7521000 7747000 7982000 8218000 8465000 8720000
Annual Debt Service (500 25 -yr Amort) 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943 3108943
DSCR 144x 160x 165x 170x 175x 180x 185x 191x 197x 203x 209x 215x 221x 228x 235x 242x 249x 257x 264x 272x
Mortgage Balance $43404204 $42443657 $41433966 $40372617 $39256968 $38084240 $36851513 $35555718 $34193627 $32761849 $31256819 $29674788 $28011817 $26263766 $24426282 $22494788 $20464475 $18330287 $16086911 $13728759
BEFORE TAX CASH FLOW 1354057 1864057 2013057 2168057 2324057 2489057 2657057 2828057 3007057 3191057 3378057 3573057 3775057 3981057 4194057 4412057 4638057 4873057 5109057 5356057
REVERSION CALCULATIONS
Project NOI (Year 21) 8720000
Cap Rate 700
Gross Sales Proceeds 124571429
Less Selling Costs 30 (3737143)
Net Sales Proceeds 120834286
Less Mortgage Balance (13728759)
Net Reversion Proceeds 107105527
NOI Margin 637 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653 653
Equity $ (18994000) 00 00 1354057 1864057 2013057 2168057 2324057 2489057 2657057 2828057 3007057 3191057 3378057 3573057 3775057 3981057 4194057 4412057 4638057 4873057 5109057 112461584
ROE 1411 IRR 71 98 106 114 122 131 140 149 158 168 178 188 199 210 221 232 244 257 269 282
ONE BIG SKY CENTER
Billings Montana
MEDICAL OFFICE - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 32865000 Land Acquisition $ 6800000 $3400 SF
Construction $ 42000000 $21000 SF
Debt Financing $ 61034000 Development $ 10500000 25
Financing $ 3451000 65 Loan to Project Costs
TI Allowances $ 27000000 $13500 SF
Contingency $ 4148000 5
TOTAL $ 93899000 TOTAL $ 93899000 $46950 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $4250 $4378 $4509 $4644 $4783 $4927 $5075 $5227 $5384 $5545 $5712 $5883 $6059 $6241 $6429 $6621 3
OPERATING REVENUES
Office Rent (NNN) 8500000 8755000 9018000 9288000 9567000 9854000 10149000 10454000 10768000 11091000 11423000 11766000 12119000 12483000 12857000 13243000
Expense Reimbursements 3531000 3601000 3674000 3747000 3822000 3898000 3976000 4056000 4137000 4220000 4304000 4390000 4478000 4568000 4659000 4752000
Vacancy Allowance (1203000) (927000) (635000) (652000) (669000) (688000) (706000) (726000) (745000) (766000) (786000) (808000) (830000) (853000) (876000) (900000)
Total Revenues 10828000 11429000 12057000 12383000 12720000 13064000 13419000 13784000 14160000 14545000 14941000 15348000 15767000 16198000 16640000 17095000
OPERATING EXPENSES
Operating Expenses 2568000 2619000 2672000 2725000 2780000 2835000 2892000 2950000 3009000 3069000 3130000 3193000 3257000 3322000 3388000 3456000
Property Taxes 963000 982000 1002000 1022000 1042000 1063000 1084000 1106000 1128000 1151000 1174000 1197000 1221000 1246000 1271000 1296000
Total Expenses 3531000 3601000 3674000 3747000 3822000 3898000 3976000 4056000 4137000 4220000 4304000 4390000 4478000 4568000 4659000 4752000
NET OPERATING INCOME 7297000 7828000 8383000 8636000 8898000 9166000 9443000 9728000 10023000 10325000 10637000 10958000 11289000 11630000 11981000 12343000
Annual Debt Service (500 25 -yr Amort) 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584 4281584
DSCR 170x 183x 196x 202x 208x 214x 221x 227x 234x 241x 248x 256x 264x 272x 280x
Mortgage Balance $59775536 $58452686 $57062157 $55600486 $54064033 $52448972 $50751281 $48966733 $47090885 $45119064 $43046362 $40867616 $38577401 $36170015 $33639462
BEFORE TAX CASH FLOW 3015416 3546416 4101416 4354416 4616416 4884416 5161416 5446416 5741416 6043416 6355416 6676416 7007416 7348416 7699416
REVERSION CALCULATIONS
Project NOI (Year 21) 12343000
Cap Rate 800
Gross Sales Proceeds 154287500
Less Selling Costs 30 (4628625)
Net Sales Proceeds 149658875
Less Mortgage Balance (33639462)
Net Reversion Proceeds 116019413
Gross Rental Rate $6016 $6178 $6346 $6518 $6695 $6876 $7063 $7255 $7453 $7656 $7864 $8078 $8299 $8526 $8758 $8998
Equity $ (32865000) 00 00 3015416 3546416 4101416 4354416 4616416 4884416 5161416 5446416 5741416 6043416 6355416 6676416 7007416 7348416 123718829
ROE 1460 IRR 92 108 125 132 140 149 157 166 175 184 193 203 213 224 234
ONE BIG SKY CENTER
Billings Montana
MEDICAL OFFICE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 21327000 Land Acquisition $ 4375000 $2500 SF
Construction $ 27300000 $15600 SF
Debt Financing $ 39607000 Development $ 6825000 25
Financing $ 2241000 65 Loan to Project Costs
TI Allowances $ 17500000 $10000 SF
Contingency $ 2693000 5
TOTAL $ 60934000 TOTAL $ 60934000 $34819 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000 175000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3165 $3260 $3358 $3458 $3562 $3669 $3779 $3893 $4009 $4130 $4253 $4381 $4513 $4648 $4787 $4931 $5079 $5231 $5388 $5550 $5716 3
OPERATING REVENUES
Office Rent (NNN) 5539000 5705000 5876000 6052000 6234000 6421000 6614000 6812000 7016000 7227000 7444000 7667000 7897000 8134000 8378000 8629000 8888000 9155000 9429000 9712000 10004000
Expense Reimbursements 2299000 2345000 2392000 2439000 2489000 2538000 2589000 2641000 2694000 2747000 2802000 2859000 2916000 2974000 3033000 3094000 3156000 3219000 3284000 3349000 3417000
Vacancy Allowance (784000) (604000) (413000) (425000) (436000) (448000) (460000) (473000) (486000) (499000) (512000) (526000) (541000) (555000) (571000) (586000) (602000) (619000) (636000) (653000) (671000)
Total Revenues 7054000 7446000 7855000 8066000 8287000 8511000 8743000 8980000 9224000 9475000 9734000 10000000 10272000 10553000 10840000 11137000 11442000 11755000 12077000 12408000 12750000
OPERATING EXPENSES
Operating Expenses 1672000 1705000 1740000 1774000 1810000 1846000 1883000 1921000 1959000 1998000 2038000 2079000 2121000 2163000 2206000 2250000 2295000 2341000 2388000 2436000 2485000
Property Taxes 627000 640000 652000 665000 679000 692000 706000 720000 735000 749000 764000 780000 795000 811000 827000 844000 861000 878000 896000 913000 932000
Total Expenses 2299000 2345000 2392000 2439000 2489000 2538000 2589000 2641000 2694000 2747000 2802000 2859000 2916000 2974000 3033000 3094000 3156000 3219000 3284000 3349000 3417000
NET OPERATING INCOME 4755000 5101000 5463000 5627000 5798000 5973000 6154000 6339000 6530000 6728000 6932000 7141000 7356000 7579000 7807000 8043000 8286000 8536000 8793000 9059000 9333000
Annual Debt Service (500 25 -yr Amort) 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463 2778463
DSCR 171x 184x 197x 203x 209x 215x 221x 228x 235x 242x 249x 257x 265x 273x 281x 289x 298x 307x 316x 326x
Mortgage Balance $38790341 $37931899 $37029538 $36081011 $35083955 $34035888 $32934200 $31776148 $30558847 $29279267 $27934221 $26520360 $25034163 $23471930 $21829770 $20103593 $18289103 $16381779 $14376873 $12269393
BEFORE TAX CASH FLOW 1976537 2322537 2684537 2848537 3019537 3194537 3375537 3560537 3751537 3949537 4153537 4362537 4577537 4800537 5028537 5264537 5507537 5757537 6014537 6280537
REVERSION CALCULATIONS
Project NOI (Year 21) 9333000
Cap Rate 800
Gross Sales Proceeds 116662500
Less Selling Costs 30 (3499875)
Net Sales Proceeds 113162625
Less Mortgage Balance (12269393)
Net Reversion Proceeds 100893232
Gross Rental Rate $4479 $4600 $4725 $4852 $4985 $5119 $5259 $5402 $5549 $5699 $5855 $6015 $6179 $6347 $6521 $6699 $6882 $7071 $7265 $7463 $7669
Equity $ (21327000) 00 00 1976537 2322537 2684537 2848537 3019537 3194537 3375537 3560537 3751537 3949537 4153537 4362537 4577537 4800537 5028537 5264537 5507537 5757537 6014537 107173769
ROE 1444 IRR 93 109 126 134 142 150 158 167 176 185 195 205 215 225 236 247 258 270 282 294
ONE BIG SKY CENTER
Billings Montana
AMBULATORY MEDICAL WELLNESS - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 43599000 Land Acquisition $ - $000 SF
Construction $ 122000000 $30500 SF
Debt Financing $ 247062000 FFampE $ 34800000 $8700 SF
Development $ 52700000 25
Financing $ 13320000 85 Loan to Project Costs
Tenant Improvements $ 54000000 $13500 SF
Contingency $ 13841000 5
TOTAL $ 290661000 TOTAL $ 290661000 $72665 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000 400000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $5055 $5207 $5363 $5524 $5689 $5860 $6036 $6217 $6404 $6596 $6793 $6997 $7207 $7423 $7646 $7876 3
OPERATING REVENUES
Rent (NNN) 20220000 20827000 21451000 22095000 22758000 23441000 24144000 24868000 25614000 26383000 27174000 27989000 28829000 29694000 30585000 31502000
Expense Reimbursements 8345000 8512000 8682000 8856000 9033000 9213000 9398000 9585000 9778000 9973000 10173000 10376000 10584000 10795000 11011000 11231000
Vacancy Allowance (2857000) (2200000) (1507000) (1548000) (1590000) (1633000) (1677000) (1723000) (1770000) (1818000) (1867000) (1918000) (1971000) (2024000) (2080000) (2137000)
Total Revenues 25708000 27139000 28626000 29403000 30201000 31021000 31865000 32730000 33622000 34538000 35480000 36447000 37442000 38465000 39516000 40596000
OPERATING EXPENSES
Operating Expenses 6419000 6547000 6678000 6812000 6948000 7087000 7229000 7373000 7521000 7671000 7825000 7981000 8141000 8304000 8470000 8639000
Property Taxes 1926000 1965000 2004000 2044000 2085000 2126000 2169000 2212000 2257000 2302000 2348000 2395000 2443000 2491000 2541000 2592000
Total Expenses 8345000 8512000 8682000 8856000 9033000 9213000 9398000 9585000 9778000 9973000 10173000 10376000 10584000 10795000 11011000 11231000
NET OPERATING INCOME 17363000 18627000 19944000 20547000 21168000 21808000 22467000 23145000 23844000 24565000 25307000 26071000 26858000 27670000 28505000 29365000
Annual Debt Service (450 25 -yr Amort) 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010 16479010
DSCR 105x 113x 121x 125x 128x 132x 136x 140x 145x 149x 154x 158x 163x 168x 173x
Mortgage Balance $241588811 $235864184 $229876570 $223613885 $217063493 $210212178 $203046115 $195550843 $187711241 $179511488 $170935040 $161964592 $152582043 $142768461 $132504045
BEFORE TAX CASH FLOW 883990 2147990 3464990 4067990 4688990 5328990 5987990 6665990 7364990 8085990 8827990 9591990 10378990 11190990 12025990
REVERSION CALCULATIONS
Project NOI (Year 16) 29365000
Cap Rate 800
Gross Sales Proceeds 367062500
Less Selling Costs 30 (11011875)
Net Sales Proceeds 356050625
Less Mortgage Balance (132504045)
Net Reversion Proceeds 223546580
Gross Rental Rate $7141 $7335 $7533 $7738 $7948 $8164 $8386 $8613 $8848 $9089 $9337 $9591 $9853 $10122 $10399 $10683
Equity $ (43599000) 00 00 883990 2147990 3464990 4067990 4688990 5328990 5987990 6665990 7364990 8085990 8827990 9591990 10378990 11190990 235572570
ROE 1476 IRR 20 49 79 93 108 122 137 153 169 185 202 220 238 257 276
ONE BIG SKY CENTER
Billings Montana
AMBULATORY MEDICAL WELLNESS - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 6081000 Land Acquisition $ - $000 SF
Construction $ 17025000 $22700 SF
Debt Financing $ 34457000 FFampE $ 4875000 $6500 SF
Development $ 7350000 25
Financing $ 1858000 85 Loan to Project Costs
Tenant Improvements $ 7500000 $10000 SF
Contingency $ 1930000 5
TOTAL $ 40538000 TOTAL $ 40538000 $54051 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000 75000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3760 $3873 $3989 $4109 $4232 $4359 $4490 $4624 $4763 $4906 $5053 $5205 $5361 $5522 $5687 $5858 $6034 $6215 $6401 $6593 $6791 3
OPERATING REVENUES
Rent (NNN) 2820000 2905000 2992000 3081000 3174000 3269000 3367000 3468000 3572000 3679000 3790000 3904000 4021000 4141000 4266000 4393000 4525000 4661000 4801000 4945000 5093000
Expense Reimbursements 1165000 1188000 1212000 1236000 1261000 1286000 1312000 1338000 1365000 1392000 1420000 1448000 1477000 1507000 1537000 1568000 1599000 1632000 1664000 1697000 1731000
Vacancy Allowance (399000) (307000) (210000) (216000) (222000) (228000) (234000) (240000) (247000) (254000) (261000) (268000) (275000) (282000) (290000) (298000) (306000) (315000) (323000) (332000) (341000)
Total Revenues 3586000 3786000 3994000 4101000 4213000 4327000 4445000 4566000 4690000 4817000 4949000 5084000 5223000 5366000 5513000 5663000 5818000 5978000 6142000 6310000 6483000
OPERATING EXPENSES
Operating Expenses 896000 914000 932000 951000 970000 989000 1009000 1029000 1050000 1071000 1092000 1114000 1136000 1159000 1182000 1206000 1230000 1255000 1280000 1305000 1331000
Property Taxes 269000 274000 280000 285000 291000 297000 303000 309000 315000 321000 328000 334000 341000 348000 355000 362000 369000 377000 384000 392000 400000
Total Expenses 1165000 1188000 1212000 1236000 1261000 1286000 1312000 1338000 1365000 1392000 1420000 1448000 1477000 1507000 1537000 1568000 1599000 1632000 1664000 1697000 1731000
NET OPERATING INCOME 2421000 2598000 2782000 2865000 2952000 3041000 3133000 3228000 3325000 3425000 3529000 3636000 3746000 3859000 3976000 4095000 4219000 4346000 4478000 4613000 4752000
Annual Debt Service (450 25 -yr Amort) 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278 2298278
DSCR 105x 113x 121x 125x 128x 132x 136x 140x 145x 149x 154x 158x 163x 168x 173x 178x 184x 189x 195x 201x
Mortgage Balance $33693671 $32895274 $32060199 $31186761 $30273198 $29317665 $28318236 $27272893 $26179527 $25035932 $23839800 $22588718 $21280162 $19911491 $18479944 $16982631 $15416532 $13778487 $12065191 $10273186
BEFORE TAX CASH FLOW 122722 299722 483722 566722 653722 742722 834722 929722 1026722 1126722 1230722 1337722 1447722 1560722 1677722 1796722 1920722 2047722 2179722 2314722
REVERSION CALCULATIONS
Project NOI (Year 16) 4752000
Cap Rate 800
Gross Sales Proceeds 59400000
Less Selling Costs 30 (1782000)
Net Sales Proceeds 57618000
Less Mortgage Balance (18479944)
Net Reversion Proceeds 39138056
Gross Rental Rate $5313 $5457 $5605 $5756 $5913 $6073 $6239 $6408 $6583 $6761 $6947 $7136 $7331 $7531 $7737 $7948 $8165 $8391 $8620 $8856 $9099
Equity $ (6081000) 00 00 122722 299722 483722 566722 653722 742722 834722 929722 1026722 1126722 1230722 1337722 1447722 1560722 1677722 1796722 1920722 2047722 2179722 41452778
ROE 1418 IRR 20 49 80 93 108 122 137 153 169 185 202 220 238 257 276 295 316 337 358 381
ONE BIG SKY CENTER
Billings Montana
BIOSCIENCE - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 24494000 Land Acquisition $ 4250000 $3400 SF
Construction $ 26125000 $20900 SF
Debt Financing $ 45490000 FFampE $ 4375000 $3500 SF
Development $ 12000000 25
Financing $ 2604000 65 Loan to Project Costs
TI Allowances $ 17500000 $14000 SF
Contingency $ 3130000 5
TOTAL $ 69984000 TOTAL $ 69984000 $55987 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000 125000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $4975 $5124 $5278 $5436 $5599 $5767 $5940 $6119 $6302 $6491 $6686 $6887 $7093 $7306 $7525 $7751 3
OPERATING REVENUES
Rent (NNN) 6219000 6405000 6597000 6795000 6999000 7209000 7426000 7648000 7878000 8114000 8357000 8608000 8866000 9132000 9406000 9689000
Expense Reimbursements 2608000 2660000 2713000 2768000 2823000 2880000 2937000 2996000 3055000 3116000 3179000 3243000 3307000 3374000 3441000 3510000
Vacancy Allowance (883000) (680000) (466000) (478000) (491000) (504000) (518000) (532000) (547000) (562000) (577000) (593000) (609000) (625000) (642000) (660000)
Total Revenues 7944000 8385000 8844000 9085000 9331000 9585000 9845000 10112000 10386000 10668000 10959000 11258000 11564000 11881000 12205000 12539000
OPERATING EXPENSES
Operating Expenses 2006000 2046000 2087000 2129000 2171000 2215000 2259000 2304000 2350000 2397000 2445000 2494000 2544000 2595000 2647000 2700000
Property Taxes 602000 614000 626000 639000 652000 665000 678000 692000 705000 719000 734000 749000 763000 779000 794000 810000
Total Expenses 2608000 2660000 2713000 2768000 2823000 2880000 2937000 2996000 3055000 3116000 3179000 3243000 3307000 3374000 3441000 3510000
NET OPERATING INCOME 5336000 5725000 6131000 6317000 6508000 6705000 6908000 7116000 7331000 7552000 7780000 8015000 8257000 8507000 8764000 9029000
Annual Debt Service (500 25 -yr Amort) 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160 3191160
DSCR 167x 179x 192x 198x 204x 210x 216x 223x 230x 237x 244x 251x 259x 267x 275x
Mortgage Balance $44552039 $43566089 $42529697 $41440281 $40295128 $39091387 $37826060 $36495997 $35097886 $33628244 $32083413 $30459545 $28752597 $26958318 $25072240
BEFORE TAX CASH FLOW 2144840 2533840 2939840 3125840 3316840 3513840 3716840 3924840 4139840 4360840 4588840 4823840 5065840 5315840 5572840
REVERSION CALCULATIONS
Project NOI (Year 16) 9029000
Cap Rate 800
Gross Sales Proceeds 112862500
Less Selling Costs 30 (3385875)
Net Sales Proceeds 109476625
Less Mortgage Balance (25072240)
Net Reversion Proceeds 84404385
Gross Rental Rate $7062 $7252 $7448 $7650 $7858 $8071 $8290 $8515 $8746 $8984 $9229 $9481 $9738 $10005 $10278 $10559
Equity $ (24494000) 00 00 2144840 2533840 2939840 3125840 3316840 3513840 3716840 3924840 4139840 4360840 4588840 4823840 5065840 5315840 89977224
ROE 1428 IRR 88 103 120 128 135 143 152 160 169 178 187 197 207 217 228
ONE BIG SKY CENTER
Billings Montana
BIOSCIENCE - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 5868000 Land Acquisition $ 1250000 $2500 SF
Construction $ 7750000 $15500 SF
Debt Financing $ 10897000 FFampE $ 1250000 $2500 SF
Development $ 3563000 25
Public Investment $ 4000000 Financing $ 773000 65 Loan to Project Costs
TI Allowances $ 5250000 $10500 SF
Contingency $ 929000 5
TOTAL $ 20765000 TOTAL $ 20765000 $41530 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2985 $3075 $3167 $3262 $3360 $3460 $3564 $3671 $3781 $3895 $4012 $4132 $4256 $4384 $4515 $4651 $4790 $4934 $5082 $5234 $5391 3
OPERATING REVENUES
Rent (NNN) 1493000 1537000 1583000 1631000 1680000 1730000 1782000 1836000 1891000 1947000 2006000 2066000 2128000 2192000 2258000 2325000 2395000 2467000 2541000 2617000 2696000
Expense Reimbursements 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
Vacancy Allowance (197000) (152000) (104000) (107000) (110000) (113000) (116000) (119000) (123000) (126000) (129000) (133000) (137000) (141000) (144000) (148000) (153000) (157000) (161000) (166000) (170000)
Total Revenues 1774000 1873000 1976000 2031000 2088000 2145000 2205000 2266000 2328000 2392000 2459000 2528000 2597000 2670000 2745000 2820000 2898000 2980000 3063000 3148000 3236000
OPERATING EXPENSES
Operating Expenses 299000 305000 311000 317000 324000 330000 337000 343000 350000 357000 364000 372000 379000 387000 395000 402000 410000 419000 427000 436000 444000
Property Taxes 179000 183000 186000 190000 194000 198000 202000 206000 210000 214000 218000 223000 227000 232000 236000 241000 246000 251000 256000 261000 266000
Total Expenses 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
NET OPERATING INCOME 1296000 1385000 1479000 1524000 1570000 1617000 1666000 1717000 1768000 1821000 1877000 1933000 1991000 2051000 2114000 2177000 2242000 2310000 2380000 2451000 2526000
Annual Debt Service (500 25 -yr Amort) 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433 764433
DSCR 170x 181x 193x 199x 205x 212x 218x 225x 231x 238x 246x 253x 260x 268x 277x 285x 293x 302x 311x 321x
Mortgage Balance $10672314 $10436133 $10187868 $9926901 $9652583 $9364230 $9061125 $8742512 $8407599 $8055550 $7685490 $7296497 $6887603 $6457788 $6005984 $5531064 $5031847 $4507088 $3955482 $3375655
BEFORE TAX CASH FLOW 531567 620567 714567 759567 805567 852567 901567 952567 1003567 1056567 1112567 1168567 1226567 1286567 1349567 1412567 1477567 1545567 1615567 1686567
REVERSION CALCULATIONS
Project NOI (Year 21) 2526000
Cap Rate 800
Gross Sales Proceeds 31575000
Less Selling Costs 30 (947250)
Net Sales Proceeds 30627750
Less Mortgage Balance (3375655)
Net Reversion Proceeds 27252095
Gross Rental Rate $3942 $4050 $4160 $4276 $4396 $4516 $4642 $4770 $4902 $5036 $5176 $5322 $5468 $5622 $5778 $5936 $6102 $6274 $6448 $6628 $6812
Equity $ (5868000) 00 00 531567 620567 714567 759567 805567 852567 901567 952567 1003567 1056567 1112567 1168567 1226567 1286567 1349567 1412567 1477567 1545567 1615567 28938662
ROE 1421 IRR 91 106 122 129 137 145 154 162 171 180 190 199 209 219 230 241 252 263 275 287
ONE BIG SKY CENTER
Billings Montana
BIOSCIENCE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 7268000 Land Acquisition $ 1250000 $2500 SF
Construction $ 7750000 $15500 SF
Debt Financing $ 13497000 FFampE $ 1250000 $2500 SF
Development $ 3563000 25
Financing $ 773000 65 Loan to Project Costs
TI Allowances $ 5250000 $10500 SF
Contingency $ 929000 5
TOTAL $ 20765000 TOTAL $ 20765000 $41530 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3700 $3811 $3925 $4043 $4164 $4289 $4418 $4551 $4687 $4828 $4972 $5122 $5275 $5434 $5597 $5764 $5937 $6116 $6299 $6488 $6683 3
OPERATING REVENUES
Rent (NNN) 1850000 1906000 1963000 2022000 2082000 2145000 2209000 2275000 2344000 2414000 2486000 2561000 2638000 2717000 2798000 2882000 2969000 3058000 3150000 3244000 3341000
Expense Reimbursements 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
Vacancy Allowance (233000) (180000) (123000) (126000) (130000) (134000) (137000) (141000) (145000) (149000) (153000) (158000) (162000) (167000) (171000) (176000) (181000) (186000) (192000) (197000) (203000)
Total Revenues 2095000 2214000 2337000 2403000 2470000 2539000 2611000 2683000 2759000 2836000 2915000 2998000 3082000 3169000 3258000 3349000 3444000 3542000 3641000 3744000 3848000
OPERATING EXPENSES
Operating Expenses 299000 305000 311000 317000 324000 330000 337000 343000 350000 357000 364000 372000 379000 387000 395000 402000 410000 419000 427000 436000 444000
Property Taxes 179000 183000 186000 190000 194000 198000 202000 206000 210000 214000 218000 223000 227000 232000 236000 241000 246000 251000 256000 261000 266000
Total Expenses 478000 488000 497000 507000 518000 528000 539000 549000 560000 571000 582000 595000 606000 619000 631000 643000 656000 670000 683000 697000 710000
NET OPERATING INCOME 1617000 1726000 1840000 1896000 1952000 2011000 2072000 2134000 2199000 2265000 2333000 2403000 2476000 2550000 2627000 2706000 2788000 2872000 2958000 3047000 3138000
Annual Debt Service (500 25 -yr Amort) 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825 946825
DSCR 171x 182x 194x 200x 206x 212x 219x 225x 232x 239x 246x 254x 262x 269x 277x 286x 294x 303x 312x 322x
Mortgage Balance $13218704 $12926171 $12618670 $12295438 $11955668 $11598515 $11223089 $10828456 $10413633 $9977586 $9519231 $9037425 $8530969 $7998602 $7438998 $6850764 $6232434 $5582470 $4899252 $4181079
BEFORE TAX CASH FLOW 670175 779175 893175 949175 1005175 1064175 1125175 1187175 1252175 1318175 1386175 1456175 1529175 1603175 1680175 1759175 1841175 1925175 2011175 2100175
REVERSION CALCULATIONS
Project NOI (Year 21) 3138000
Cap Rate 800
Gross Sales Proceeds 39225000
Less Selling Costs 30 (1176750)
Net Sales Proceeds 38048250
Less Mortgage Balance (4181079)
Net Reversion Proceeds 33867171
Gross Rental Rate $4656 $4788 $4920 $5058 $5200 $5346 $5496 $5648 $5808 $5970 $6136 $6312 $6488 $6672 $6858 $7050 $7250 $7456 $7666 $7882 $8102
Equity $ (7268000) 00 00 670175 779175 893175 949175 1005175 1064175 1125175 1187175 1252175 1318175 1386175 1456175 1529175 1603175 1680175 1759175 1841175 1925175 2011175 35967346
ROE 1427 IRR 92 107 123 131 138 146 155 163 172 181 191 200 210 221 231 242 253 265 277 289
ONE BIG SKY CENTER
Billings Montana
COMMERCIAL OFFICE - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 48554000 Land Acquisition $ 11900000 $3400 SF
Construction $ 68250000 $19500 SF
Debt Financing $ 90173000 Development $ 17063000 25
Financing $ 5025000 65 Loan to Project Costs
TI Allowances $ 30450000 $8700 SF
Contingency $ 6039000 5
TOTAL $ 138727000 TOTAL $ 138727000 $39636 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Leasable Program 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000 350000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3570 $3677 $3787 $3901 $4018 $4139 $4263 $4391 $4522 $4658 $4798 $4942 $5090 $5243 $5400 $5562 3
OPERATING REVENUES
Office Rent (NNN) 12495000 12870000 13256000 13654000 14063000 14485000 14920000 15367000 15828000 16303000 16792000 17296000 17815000 18349000 18900000 19467000
Expense Reimbursements 5897000 6015000 6136000 6258000 6383000 6511000 6641000 6774000 6909000 7048000 7188000 7332000 7479000 7628000 7781000 7937000
Vacancy Allowance (1839000) (1416000) (970000) (996000) (1022000) (1050000) (1078000) (1107000) (1137000) (1168000) (1199000) (1231000) (1265000) (1299000) (1334000) (1370000)
Total Revenues 16553000 17469000 18422000 18916000 19424000 19946000 20483000 21034000 21600000 22183000 22781000 23397000 24029000 24678000 25347000 26034000
OPERATING EXPENSES
Operating Expenses 4493000 4583000 4675000 4768000 4863000 4961000 5060000 5161000 5264000 5370000 5477000 5586000 5698000 5812000 5928000 6047000
Property Taxes 1404000 1432000 1461000 1490000 1520000 1550000 1581000 1613000 1645000 1678000 1711000 1746000 1781000 1816000 1853000 1890000
Total Expenses 5897000 6015000 6136000 6258000 6383000 6511000 6641000 6774000 6909000 7048000 7188000 7332000 7479000 7628000 7781000 7937000
NET OPERATING INCOME 10656000 11454000 12286000 12658000 13041000 13435000 13842000 14260000 14691000 15135000 15593000 16065000 16550000 17050000 17566000 18097000
Annual Debt Service (500 25 -yr Amort) 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709 6325709
DSCR 168x 181x 194x 200x 206x 212x 219x 225x 232x 239x 247x 254x 262x 270x 278x
Mortgage Balance $88313717 $86359309 $84304910 $82145404 $79875414 $77489287 $74981080 $72344550 $69573129 $66659917 $63597660 $60378732 $56995118 $53438391 $49699695
BEFORE TAX CASH FLOW 4330291 5128291 5960291 6332291 6715291 7109291 7516291 7934291 8365291 8809291 9267291 9739291 10224291 10724291 11240291
REVERSION CALCULATIONS
Project NOI (Year 16) 18097000
Cap Rate 800
Gross Sales Proceeds 226212500
Less Selling Costs 30 (6786375)
Net Sales Proceeds 219426125
Less Mortgage Balance (49699695)
Net Reversion Proceeds 169726430
Gross Rental Rate $5255 $5396 $5541 $5689 $5842 $5999 $6160 $6326 $6496 $6672 $6851 $7037 $7227 $7422 $7623 $7830
Equity $ (48554000) 00 00 4330291 5128291 5960291 6332291 6715291 7109291 7516291 7934291 8365291 8809291 9267291 9739291 10224291 10724291 180966721
ROE 1446 IRR 89 106 123 130 138 146 155 163 172 181 191 201 211 221 232
ONE BIG SKY CENTER
Billings Montana
COMMERCIAL OFFICE - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 11276000 Land Acquisition $ 3750000 $2500 SF
Construction $ 21750000 $14500 SF
Debt Financing $ 20942000 Development $ 5438000 25
Financing $ 1603000 65 Loan to Project Costs
Public Investment $ 12000000 TI Allowances $ 9750000 $6500 SF
Contingency $ 1927000 5
TOTAL $ 44218000 TOTAL $ 44218000 $29479 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $1940 $1998 $2058 $2120 $2183 $2249 $2316 $2386 $2458 $2531 $2607 $2685 $2766 $2849 $2934 $3022 $3113 $3207 $3303 $3402 $3504 3
OPERATING REVENUES
Office Rent (NNN) 2910000 2997000 3087000 3180000 3275000 3373000 3475000 3579000 3686000 3797000 3911000 4028000 4149000 4273000 4402000 4534000 4670000 4810000 4954000 5103000 5256000
Expense Reimbursements 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
Vacancy Allowance (439000) (338000) (231000) (237000) (244000) (250000) (257000) (264000) (271000) (278000) (286000) (293000) (301000) (309000) (318000) (326000) (335000) (344000) (353000) (363000) (373000)
Total Revenues 3949000 4167000 4394000 4511000 4631000 4755000 4883000 5013000 5147000 5285000 5427000 5573000 5722000 5876000 6034000 6197000 6364000 6535000 6712000 6894000 7080000
OPERATING EXPENSES
Operating Expenses 1030000 1051000 1072000 1093000 1115000 1137000 1160000 1183000 1207000 1231000 1256000 1281000 1306000 1332000 1359000 1386000 1414000 1442000 1471000 1501000 1531000
Property Taxes 448000 457000 466000 475000 485000 495000 505000 515000 525000 535000 546000 557000 568000 580000 591000 603000 615000 627000 640000 653000 666000
Total Expenses 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
NET OPERATING INCOME 2471000 2659000 2856000 2943000 3031000 3123000 3218000 3315000 3415000 3519000 3625000 3735000 3848000 3964000 4084000 4208000 4335000 4466000 4601000 4740000 4883000
Annual Debt Service (500 25 -yr Amort) 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098 1469098
DSCR 168x 181x 194x 200x 206x 213x 219x 226x 232x 240x 247x 254x 262x 270x 278x 286x 295x 304x 313x 323x
Mortgage Balance $20510195 $20056299 $19579180 $19077651 $18550463 $17996303 $17413791 $16801477 $16157835 $15481264 $14770078 $14022506 $13236687 $12410664 $11542380 $10629673 $9670270 $8661783 $7601699 $6487379
BEFORE TAX CASH FLOW 1001902 1189902 1386902 1473902 1561902 1653902 1748902 1845902 1945902 2049902 2155902 2265902 2378902 2494902 2614902 2738902 2865902 2996902 3131902 3270902
REVERSION CALCULATIONS
Project NOI (Year 21) 4883000
Cap Rate 800
Gross Sales Proceeds 61037500
Less Selling Costs 30 (1831125)
Net Sales Proceeds 59206375
Less Mortgage Balance (6487379)
Net Reversion Proceeds 52718996
Gross Rental Rate $2925 $3003 $3083 $3165 $3250 $3337 $3427 $3518 $3612 $3709 $3809 $3911 $4015 $4123 $4235 $4349 $4466 $4586 $4710 $4838 $4969
Equity $ (11276000) 00 00 1001902 1189902 1386902 1473902 1561902 1653902 1748902 1845902 1945902 2049902 2155902 2265902 2378902 2494902 2614902 2738902 2865902 2996902 3131902 55989898
ROE 1426 IRR 89 106 123 131 139 147 155 164 173 182 191 201 211 221 232 243 254 266 278 290
ONE BIG SKY CENTER
Billings Montana
COMMERCIAL OFFICE - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 15476000 Land Acquisition $ 3750000 $2500 SF
Construction $ 21750000 $14500 SF
Debt Financing $ 28742000 Development $ 5438000 25
Financing $ 1603000 65 Loan to Project Costs
TI Allowances $ 9750000 $6500 SF
Contingency $ 1927000 5
TOTAL $ 44218000 TOTAL $ 44218000 $29479 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Leasable Program 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000 150000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2655 $2735 $2817 $2901 $2988 $3078 $3170 $3265 $3363 $3464 $3568 $3675 $3785 $3899 $4016 $4136 $4260 $4388 $4520 $4656 $4795 3
OPERATING REVENUES
Office Rent (NNN) 3983000 4102000 4225000 4352000 4482000 4617000 4755000 4898000 5045000 5196000 5352000 5513000 5678000 5848000 6024000 6205000 6391000 6582000 6780000 6983000 7193000
Expense Reimbursements 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
Vacancy Allowance (546000) (421000) (288000) (296000) (304000) (312000) (321000) (330000) (339000) (348000) (358000) (368000) (378000) (388000) (399000) (410000) (421000) (433000) (445000) (457000) (470000)
Total Revenues 4915000 5189000 5475000 5624000 5778000 5937000 6099000 6266000 6438000 6614000 6796000 6983000 7174000 7372000 7575000 7784000 7999000 8218000 8446000 8680000 8920000
OPERATING EXPENSES
Operating Expenses 1030000 1051000 1072000 1093000 1115000 1137000 1160000 1183000 1207000 1231000 1256000 1281000 1306000 1332000 1359000 1386000 1414000 1442000 1471000 1501000 1531000
Property Taxes 448000 457000 466000 475000 485000 495000 505000 515000 525000 535000 546000 557000 568000 580000 591000 603000 615000 627000 640000 653000 666000
Total Expenses 1478000 1508000 1538000 1568000 1600000 1632000 1665000 1698000 1732000 1766000 1802000 1838000 1874000 1912000 1950000 1989000 2029000 2069000 2111000 2154000 2197000
NET OPERATING INCOME 3437000 3681000 3937000 4056000 4178000 4305000 4434000 4568000 4706000 4848000 4994000 5145000 5300000 5460000 5625000 5795000 5970000 6149000 6335000 6526000 6723000
Annual Debt Service (500 25 -yr Amort) 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274 2016274
DSCR 170x 183x 195x 201x 207x 214x 220x 227x 233x 240x 248x 255x 263x 271x 279x 287x 296x 305x 314x 324x
Mortgage Balance $28149367 $27526413 $26871588 $26183261 $25459718 $24699157 $23899684 $23059309 $22175938 $21247373 $20271300 $19245290 $18166787 $17033106 $15841423 $14588772 $13272032 $11887926 $10433007 $8903651
BEFORE TAX CASH FLOW 1420726 1664726 1920726 2039726 2161726 2288726 2417726 2551726 2689726 2831726 2977726 3128726 3283726 3443726 3608726 3778726 3953726 4132726 4318726 4509726
REVERSION CALCULATIONS
Project NOI (Year 21) 6723000
Cap Rate 800
Gross Sales Proceeds 84037500
Less Selling Costs 30 (2521125)
Net Sales Proceeds 81516375
Less Mortgage Balance (8903651)
Net Reversion Proceeds 72612724
Gross Rental Rate $3641 $3740 $3842 $3947 $4055 $4166 $4280 $4397 $4518 $4641 $4769 $4901 $5035 $5173 $5316 $5463 $5613 $5767 $5927 $6091 $6260
Equity $ (15476000) 00 00 1420726 1664726 1920726 2039726 2161726 2288726 2417726 2551726 2689726 2831726 2977726 3128726 3283726 3443726 3608726 3778726 3953726 4132726 4318726 77122450
ROE 1434 IRR 92 108 124 132 140 148 156 165 174 183 192 202 212 223 233 244 255 267 279 291
ONE BIG SKY CENTER
Billings Montana
RETAIL DINING ENTERTAINMENT - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 33347000 Land Acquisition $ 9000000 $4000 SF
Construction $ 43875000 $19500 SF
Debt Financing $ 61929000 Development $ 8775000 20
Financing $ 3418000 65 Loan to Project Costs
TI Allowances $ 26100000 $11600 SF
Contingency $ 4108000 5
TOTAL $ 95276000 TOTAL $ 95276000 $42345 SF
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Projected Sales per Square Foot $48000 $49440 $50923 $52451 $54024 $55645 $57315 $59034 $60805 $62629 $64508 $66443 $68437 $70490 $72604 $74782 3
Leasable Program 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000 225000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $3840 $3955 $4074 $4196 $4322 $4452 $4585 $4723 $4864 $5010 $5161 $5315 $5475 $5639 $5808 $5983 8 NNN Rent vs Tenant Sales
OPERATING REVENUES
Retail Rent (NNN) 8640000 8899000 9167000 9441000 9725000 10017000 10316000 10627000 10944000 11273000 11612000 11959000 12319000 12688000 13068000 13462000
Expense Reimbursements 3971000 4051000 4132000 4214000 4298000 4385000 4472000 4561000 4653000 4745000 4840000 4938000 5037000 5137000 5240000 5345000
Vacancy Allowance (1261000) (971000) (665000) (683000) (701000) (720000) (739000) (759000) (780000) (801000) (823000) (845000) (868000) (891000) (915000) (940000)
Total Revenues 11350000 11979000 12634000 12972000 13322000 13682000 14049000 14429000 14817000 15217000 15629000 16052000 16488000 16934000 17393000 17867000
OPERATING EXPENSES
Operating Expenses 2888000 2946000 3005000 3065000 3126000 3189000 3252000 3317000 3384000 3451000 3520000 3591000 3663000 3736000 3811000 3887000
Property Taxes 1083000 1105000 1127000 1149000 1172000 1196000 1220000 1244000 1269000 1294000 1320000 1347000 1374000 1401000 1429000 1458000
Total Expenses 3971000 4051000 4132000 4214000 4298000 4385000 4472000 4561000 4653000 4745000 4840000 4938000 5037000 5137000 5240000 5345000
NET OPERATING INCOME 7379000 7928000 8502000 8758000 9024000 9297000 9577000 9868000 10164000 10472000 10789000 11114000 11451000 11797000 12153000 12522000
Annual Debt Service (500 25 -yr Amort) 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369 4344369
DSCR 170x 182x 196x 202x 208x 214x 220x 227x 234x 241x 248x 256x 264x 272x 280x
Mortgage Balance $60652082 $59309834 $57898914 $56415809 $54856825 $53218081 $51495496 $49684779 $47781424 $45780688 $43677592 $41466897 $39143099 $36700410 $34132750
BEFORE TAX CASH FLOW 3034631 3583631 4157631 4413631 4679631 4952631 5232631 5523631 5819631 6127631 6444631 6769631 7106631 7452631 7808631
REVERSION CALCULATIONS
Project NOI (Year 21) 12522000
Cap Rate 800
Gross Sales Proceeds 156525000
Less Selling Costs 30 (4695750)
Net Sales Proceeds 151829250
Less Mortgage Balance (34132750)
Net Reversion Proceeds 117696500
Gross Rental Rate $5605 $5756 $5911 $6069 $6232 $6401 $6572 $6750 $6932 $7119 $7312 $7510 $7714 $7922 $8137 $8359
Equity $ (33347000) 00 00 3034631 3583631 4157631 4413631 4679631 4952631 5232631 5523631 5819631 6127631 6444631 6769631 7106631 7452631 125505131
ROE 1458 IRR 91 107 125 132 140 149 157 166 175 184 193 203 213 223 234
ONE BIG SKY CENTER
Billings Montana
RETAIL DINING ENTERTAINMENT - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 10981000 Land Acquisition $ 3000000 $3000 SF
Construction $ 14500000 $14500 SF
Debt Financing $ 20394000 Development $ 2900000 20
Financing $ 1124000 65 Loan to Project Costs
TI Allowances $ 8500000 $8500 SF
Contingency $ 1351000 5
TOTAL $ 31375000 TOTAL $ 31375000 $31375 SF
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Projected Sales per Square Foot $36000 $37080 $38192 $39338 $40518 $41734 $42986 $44275 $45604 $46972 $48381 $49832 $51327 $52867 $54453 $56087 $57769 $59503 $61288 $63126 $65020 3
Leasable Program 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000
Vacancy Rate 100 75 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50
Lease Rate (NNN) $2880 $2966 $3055 $3147 $3241 $3339 $3439 $3542 $3648 $3758 $3870 $3987 $4106 $4229 $4356 $4487 $4622 $4760 $4903 $5050 $5202 8 NNN Rent vs Tenant Sales
OPERATING REVENUES
Retail Rent (NNN) 2880000 2966000 3055000 3147000 3241000 3339000 3439000 3542000 3648000 3758000 3870000 3987000 4106000 4229000 4356000 4487000 4622000 4760000 4903000 5050000 5202000
Expense Reimbursements 776000 791000 807000 824000 840000 857000 874000 891000 909000 928000 946000 965000 984000 1004000 1024000 1045000 1065000 1086000 1108000 1131000 1153000
Vacancy Allowance (366000) (282000) (193000) (199000) (204000) (210000) (216000) (222000) (228000) (234000) (241000) (248000) (255000) (262000) (269000) (277000) (284000) (292000) (301000) (309000) (318000)
Total Revenues 3290000 3475000 3669000 3772000 3877000 3986000 4097000 4211000 4329000 4452000 4575000 4704000 4835000 4971000 5111000 5255000 5403000 5554000 5710000 5872000 6037000
OPERATING EXPENSES
Operating Expenses 418000 426000 435000 444000 452000 462000 471000 480000 490000 500000 510000 520000 530000 541000 552000 563000 574000 585000 597000 609000 621000
Property Taxes 358000 365000 372000 380000 388000 395000 403000 411000 419000 428000 436000 445000 454000 463000 472000 482000 491000 501000 511000 522000 532000
Total Expenses 776000 791000 807000 824000 840000 857000 874000 891000 909000 928000 946000 965000 984000 1004000 1024000 1045000 1065000 1086000 1108000 1131000 1153000
NET OPERATING INCOME 2514000 2684000 2862000 2948000 3037000 3129000 3223000 3320000 3420000 3524000 3629000 3739000 3851000 3967000 4087000 4210000 4338000 4468000 4602000 4741000 4884000
Annual Debt Service (500 25 -yr Amort) 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656 1430656
DSCR 176x 188x 200x 206x 212x 219x 225x 232x 239x 246x 254x 261x 269x 277x 286x 294x 303x 312x 322x 331x
Mortgage Balance $19973495 $19531476 $19066842 $18578437 $18065044 $17525385 $16958116 $16361824 $15735025 $15076158 $14383581 $13655572 $12890316 $12085908 $11240344 $10351521 $9417223 $8435125 $7402781 $6317621
BEFORE TAX CASH FLOW 1083344 1253344 1431344 1517344 1606344 1698344 1792344 1889344 1989344 2093344 2198344 2308344 2420344 2536344 2656344 2779344 2907344 3037344 3171344 3310344
REVERSION CALCULATIONS
Project NOI (Year 21) 4884000
Cap Rate 800
Gross Sales Proceeds 61050000
Less Selling Costs 30 (1831500)
Net Sales Proceeds 59218500
Less Mortgage Balance (6317621)
Net Reversion Proceeds 52900879
Gross Rental Rate $3656 $3757 $3862 $3971 $4081 $4196 $4313 $4433 $4557 $4686 $4816 $4952 $5090 $5233 $5380 $5532 $5687 $5846 $6011 $6181 $6355
Equity $ (10981000) 00 00 1083344 1253344 1431344 1517344 1606344 1698344 1792344 1889344 1989344 2093344 2198344 2308344 2420344 2536344 2656344 2779344 2907344 3037344 3171344 56211224
ROE 1471 IRR 99 114 130 138 146 155 163 172 181 191 200 210 220 231 242 253 265 277 289 301
ONE BIG SKY CENTER
Billings Montana
HOTEL - PHASE 2
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 39286000 Land Acquisition $ 12000000 $40000 KEY
Construction $ 64500000 $215000 KEY
Debt Financing $ 72960000 FFampE $ 8700000 $29000 KEY
Development $ 18300000 25
Financing $ 3972000 65 Loan to Project Costs
Contingency $ 4774000 5
TOTAL $ 112246000 TOTAL $ 112246000 $374153 KEY
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047
OPERATING ASSUMPTIONS
Number of Rooms 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
Average Daily Rate (ADR) $29700 $30403 $30930 $31858 $32814 $33798 $34812 $35857 $36932 $38040 $39181 $40357 $41568 $42815 $44099 $45422 30
Occupancy Rate 680 720 750 750 750 750 750 750 750 750 750 750 750 750 750 750
OPERATING REVENUES
Rooms Revenue 22115000 23970000 25401000 26163000 26948000 27757000 28590000 29447000 30331000 31241000 32178000 33143000 34137000 35161000 36216000 37303000 639
FampB Revenue 11144000 12079000 12800000 13184000 13579000 13987000 14407000 14839000 15284000 15743000 16215000 16701000 17202000 17718000 18250000 18797000 322
Other Revenue 1350000 1463000 1550000 1597000 1645000 1694000 1745000 1797000 1851000 1907000 1964000 2023000 2083000 2146000 2210000 2277000 39
Total Revenues 34609000 37512000 39751000 40944000 42172000 43438000 44742000 46083000 47466000 48891000 50357000 51867000 53422000 55025000 56676000 58377000
OPERATING EXPENSES Rooms FampB Other
Departmental Expenses 13292000 14406000 15266000 15725000 16196000 16682000 17183000 17698000 18229000 18777000 19340000 19919000 20516000 21132000 21766000 22419000 213 700 586 384
Undistributed Expenses 8998000 9753000 10335000 10645000 10965000 11294000 11633000 11982000 12341000 12712000 13093000 13485000 13890000 14307000 14736000 15178000 260
Management Fee 1038000 1125000 1193000 1228000 1265000 1303000 1342000 1382000 1424000 1467000 1511000 1556000 1603000 1651000 1700000 1751000 30
Insurance 346000 375000 398000 409000 422000 434000 447000 461000 475000 489000 504000 519000 534000 550000 567000 584000 10
Property Taxes 1281000 1388000 1471000 1515000 1560000 1607000 1655000 1705000 1756000 1809000 1863000 1919000 1977000 2036000 2097000 2160000 37
CAPEX Reserve 346000 750000 1193000 1228000 1265000 1303000 1342000 1382000 1424000 1467000 1511000 1556000 1603000 1651000 1700000 1751000
Total Expenses 25301000 27797000 29856000 30750000 31673000 32623000 33602000 34610000 35649000 36721000 37822000 38954000 40123000 41327000 42566000 43843000
NET OPERATING INCOME 9308000 9715000 9895000 10194000 10499000 10815000 11140000 11473000 11817000 12170000 12535000 12913000 13299000 13698000 14110000 14534000
Annual Debt Service (500 25 -yr Amort) 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203 5118203
DSCR 182x 190x 193x 199x 205x 211x 218x 224x 231x 238x 245x 252x 260x 268x 276x
Mortgage Balance $71455633 $69874299 $68212062 $66464781 $64628106 $62697463 $60668045 $58534798 $56292410 $53935297 $51457590 $48853119 $46115398 $43237610 $40212589
BEFORE TAX CASH FLOW 4189797 4596797 4776797 5075797 5380797 5696797 6021797 6354797 6698797 7051797 7416797 7794797 8180797 8579797 8991797
REVERSION CALCULATIONS
Project NOI (Year 16) 14534000
Cap Rate 800
Gross Sales Proceeds 181675000
Less Selling Costs 30 (5450250)
Net Sales Proceeds 176224750
Less Mortgage Balance (40212589)
Net Reversion Proceeds 136012161
NOI Margin 269 259 249 249 249 249 249 249 249 249 249 249 249 249 249 249
Equity $ (39286000) 00 00 4189797 4596797 4776797 5075797 5380797 5696797 6021797 6354797 6698797 7051797 7416797 7794797 8180797 8579797 145003959
ROE 1455 IRR 107 117 122 129 137 145 153 162 171 179 189 198 208 218 229
ONE BIG SKY CENTER
Billings Montana
HOTEL - PHASE 1 (GAP)
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 15855000 Land Acquisition $ 6000000 $30000 KEY
Construction $ 32000000 $160000 KEY
Debt Financing $ 29446000 FFampE $ 4000000 $20000 KEY
Development $ 9000000 25
Public Investment $ 10000000 Financing $ 1953000 65 Loan to Project Costs
Contingency $ 2348000 5
TOTAL $ 55301000 TOTAL $ 55301000 $276505 KEY
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Rooms 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200
Average Daily Rate (ADR) $17900 $18324 $18641 $19201 $19777 $20370 $20981 $21611 $22259 $22927 $23614 $24323 $25053 $25804 $26578 $27376 $28197 $29043 $29914 $30811 $31736 30
Occupancy Rate 680 720 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750
OPERATING REVENUES
Rooms Revenue 8886000 9631000 10206000 10512000 10828000 11153000 11487000 11832000 12187000 12552000 12929000 13317000 13716000 14128000 14552000 14988000 15438000 15901000 16378000 16869000 17375000 639
FampB Revenue 4478000 4853000 5143000 5297000 5456000 5620000 5788000 5962000 6141000 6325000 6515000 6711000 6912000 7119000 7333000 7553000 7779000 8013000 8253000 8500000 8755000 322
Other Revenue 542000 588000 623000 642000 661000 681000 701000 722000 744000 766000 789000 813000 837000 862000 888000 915000 942000 970000 1000000 1030000 1060000 39
Total Revenues 13906000 15072000 15972000 16451000 16945000 17454000 17976000 18516000 19072000 19643000 20233000 20841000 21465000 22109000 22773000 23456000 24159000 24884000 25631000 26399000 27190000
OPERATING EXPENSES Rooms FampB Other
Departmental Expenses 5341000 5788000 6134000 6318000 6508000 6703000 6903000 7111000 7325000 7544000 7770000 8004000 8244000 8491000 8746000 9008000 9278000 9557000 9844000 10138000 10442000 213 700 586 384
Undistributed Expenses 3616000 3919000 4153000 4277000 4406000 4538000 4674000 4814000 4959000 5107000 5261000 5419000 5581000 5748000 5921000 6099000 6281000 6470000 6664000 6864000 7069000 260
Management Fee 417000 452000 479000 494000 508000 524000 539000 555000 572000 589000 607000 625000 644000 663000 683000 704000 725000 747000 769000 792000 816000 30
Insurance 139000 151000 160000 165000 169000 175000 180000 185000 191000 196000 202000 208000 215000 221000 228000 235000 242000 249000 256000 264000 272000 10
Property Taxes 515000 558000 591000 609000 627000 646000 665000 685000 706000 727000 749000 771000 794000 818000 843000 868000 894000 921000 948000 977000 1006000 37
CAPEX Reserve 139000 301000 479000 494000 508000 524000 539000 555000 572000 589000 607000 625000 644000 663000 683000 704000 725000 747000 769000 792000 816000
Total Expenses 10167000 11169000 11996000 12357000 12726000 13110000 13500000 13905000 14325000 14752000 15196000 15652000 16122000 16604000 17104000 17618000 18145000 18691000 19250000 19827000 20421000
NET OPERATING INCOME 3739000 3903000 3976000 4094000 4219000 4344000 4476000 4611000 4747000 4891000 5037000 5189000 5343000 5505000 5669000 5838000 6014000 6193000 6381000 6572000 6769000
Annual Debt Service (500 25 -yr Amort) 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661 2065661
DSCR 181x 189x 192x 198x 204x 210x 217x 223x 230x 237x 244x 251x 259x 267x 274x 283x 291x 300x 309x 318x
Mortgage Balance $28838851 $28200639 $27529775 $26824588 $26083322 $25304132 $24485078 $23624118 $22719111 $21767801 $20767821 $19716680 $18611760 $17450311 $16229439 $14946106 $13597115 $12179106 $10688550 $9121735
BEFORE TAX CASH FLOW 1673339 1837339 1910339 2028339 2153339 2278339 2410339 2545339 2681339 2825339 2971339 3123339 3277339 3439339 3603339 3772339 3948339 4127339 4315339 4506339
REVERSION CALCULATIONS
Project NOI (Year 21) 6769000
Cap Rate 800
Gross Sales Proceeds 84612500
Less Selling Costs 30 (2538375)
Net Sales Proceeds 82074125
Less Mortgage Balance (9121735)
Net Reversion Proceeds 72952390
NOI Margin 269 259 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249
Equity $ (15855000) 00 00 1673339 1837339 1910339 2028339 2153339 2278339 2410339 2545339 2681339 2825339 2971339 3123339 3277339 3439339 3603339 3772339 3948339 4127339 4315339 77458730
ROE 1427 IRR 106 116 120 128 136 144 152 161 169 178 187 197 207 217 227 238 249 260 272 284
ONE BIG SKY CENTER
Billings Montana
HOTEL - PHASE 1
SOURCES OF FUNDS USES OF FUNDS
Equity Investment $ 19355000 Land Acquisition $ 6000000 $30000 KEY
Construction $ 32000000 $160000 KEY
Debt Financing $ 35946000 FFampE $ 4000000 $20000 KEY
Development $ 9000000 25
Financing $ 1953000 65 Loan to Project Costs
Contingency $ 2348000 5
TOTAL $ 55301000 TOTAL $ 55301000 $276505 KEY
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPERATING ASSUMPTIONS
Number of Rooms 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200
Average Daily Rate (ADR) $22100 $22623 $23015 $23706 $24417 $25150 $25904 $26681 $27482 $28306 $29155 $30030 $30931 $31859 $32814 $33799 $34813 $35857 $36933 $38041 $39182 30
Occupancy Rate 680 720 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750
OPERATING REVENUES
Rooms Revenue 10970000 11891000 12601000 12979000 13368000 13769000 14182000 14608000 15046000 15498000 15962000 16441000 16935000 17443000 17966000 18505000 19060000 19632000 20221000 20827000 21452000 639
FampB Revenue 5528000 5992000 6350000 6540000 6736000 6938000 7146000 7361000 7582000 7810000 8043000 8285000 8534000 8790000 9053000 9325000 9605000 9893000 10190000 10495000 10810000 322
Other Revenue 670000 726000 769000 792000 816000 840000 866000 892000 918000 946000 974000 1003000 1034000 1065000 1097000 1129000 1163000 1198000 1234000 1271000 1309000 39
Total Revenues 17168000 18609000 19720000 20311000 20920000 21547000 22194000 22861000 23546000 24254000 24979000 25729000 26503000 27298000 28116000 28959000 29828000 30723000 31645000 32593000 33571000
OPERATING EXPENSES Rooms FampB Other
Departmental Expenses 6593000 7147000 7573000 7800000 8034000 8275000 8523000 8780000 9043000 9315000 9593000 9881000 10179000 10484000 10798000 11122000 11455000 11799000 12153000 12517000 12893000 213 700 586 384
Undistributed Expenses 4464000 4838000 5127000 5281000 5439000 5602000 5770000 5944000 6122000 6306000 6495000 6690000 6891000 7097000 7310000 7529000 7755000 7988000 8228000 8474000 8728000 260
Management Fee 515000 558000 592000 609000 628000 646000 666000 686000 706000 728000 749000 772000 795000 819000 843000 869000 895000 922000 949000 978000 1007000 30
Insurance 172000 186000 197000 203000 209000 215000 222000 229000 235000 243000 250000 257000 265000 273000 281000 290000 298000 307000 316000 326000 336000 10
Property Taxes 635000 689000 730000 752000 774000 797000 821000 846000 871000 897000 924000 952000 981000 1010000 1040000 1071000 1104000 1137000 1171000 1206000 1242000 37
CAPEX Reserve 172000 372000 592000 609000 628000 646000 666000 686000 706000 728000 749000 772000 795000 819000 843000 869000 895000 922000 949000 978000 1007000
Total Expenses 12551000 13790000 14811000 15254000 15712000 16181000 16668000 17171000 17683000 18217000 18760000 19324000 19906000 20502000 21115000 21750000 22402000 23075000 23766000 24479000 25213000
NET OPERATING INCOME 4617000 4819000 4909000 5057000 5208000 5366000 5526000 5690000 5863000 6037000 6219000 6405000 6597000 6796000 7001000 7209000 7426000 7648000 7879000 8114000 8358000
Annual Debt Service (500 25 -yr Amort) 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641 2521641
DSCR 183x 191x 195x 201x 207x 213x 219x 226x 233x 239x 247x 254x 262x 270x 278x 286x 294x 303x 312x 322x
Mortgage Balance $35204827 $34425734 $33606781 $32745929 $31841035 $30889844 $29889988 $28838978 $27734196 $26572892 $25352173 $24069000 $22720177 $21302345 $19811975 $18245355 $16598583 $14867560 $13047974 $11135294
BEFORE TAX CASH FLOW 2095359 2297359 2387359 2535359 2686359 2844359 3004359 3168359 3341359 3515359 3697359 3883359 4075359 4274359 4479359 4687359 4904359 5126359 5357359 5592359
REVERSION CALCULATIONS
Project NOI (Year 21) 8358000
Cap Rate 800
Gross Sales Proceeds 104475000
Less Selling Costs 30 (3134250)
Net Sales Proceeds 101340750
Less Mortgage Balance (11135294)
Net Reversion Proceeds 90205456
NOI Margin 269 259 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249 249
Equity $ (19355000) 00 00 2095359 2297359 2387359 2535359 2686359 2844359 3004359 3168359 3341359 3515359 3697359 3883359 4075359 4274359 4479359 4687359 4904359 5126359 5357359 95797815
ROE 1444 IRR 108 119 123 131 139 147 155 164 173 182 191 201 211 221 231 242 253 265 277 289
ONE BIG SKY CENTER
Billings Montana
ECONOMIC amp FISCAL IMPACT ESTIMATES (HIGH)
PHASE 1 PHASE 2
Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M) Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M)
HOTEL 200 KEYS $ 197 Direct 160 Direct $ 59 Direct $ 02 Income 300 KEYS $ 398 Direct 240 Direct $ 119 Direct $ 05 Income
$ 58 Indirect 34 Indirect $ 17 Indirect $ 01 Corp $ 117 Indirect 50 Indirect $ 34 Indirect $ 02 Corp
$ 32 Induced 21 Induced $ 10 Induced $ 09 Lodging $ 65 Induced 31 Induced $ 21 Induced $ 18 Lodging
$ 288 Total 214 Total $ 86 Total $ 07 Property $ 580 Total 321 Total $ 174 Total $ 15 Property
$ 19 Total $ 39 Total
RETAIL DINING ENTERTAINMENT 100000 SF $ 363 Direct 496 Direct $ 145 Direct $ 04 Income 225000 SF $ 1088 Direct 1221 Direct $ 435 Direct $ 13 Income
$ 23 Indirect 17 Indirect $ 07 Indirect $ 01 Corp $ 69 Indirect 41 Indirect $ 21 Indirect $ 03 Corp
$ 27 Induced 25 Induced $ 11 Induced $ 04 Property $ 81 Induced 61 Induced $ 34 Induced $ 11 Property
$ 413 Total 537 Total $ 163 Total $ 09 Total $ 1239 Total 1323 Total $ 490 Total $ 28 Total
COMMERCIAL OFFICE 150000 SF $ 1259 Direct 600 Direct $ 357 Direct $ 15 Income 350000 SF $ 3947 Direct 1400 Direct $ 1119 Direct $ 46 Income
$ 304 Indirect 205 Indirect $ 95 Indirect $ 05 Corp $ 954 Indirect 479 Indirect $ 299 Indirect $ 15 Corp
$ 211 Induced 174 Induced $ 86 Induced $ 05 Property $ 662 Induced 405 Induced $ 270 Induced $ 15 Property
$ 1774 Total 979 Total $ 538 Total $ 24 Total $ 5563 Total 2284 Total $ 1688 Total $ 75 Total
BIOSCIENCE 50000 SF $ 301 Direct 167 Direct $ 137 Direct $ 05 Income 125000 SF $ 1010 Direct 417 Direct $ 459 Direct $ 16 Income
$ 35 Indirect 25 Indirect $ 13 Indirect $ 01 Corp $ 118 Indirect 62 Indirect $ 42 Indirect $ 04 Corp
$ 70 Induced 51 Induced $ 25 Induced $ 02 Property $ 236 Induced 128 Induced $ 85 Induced $ 06 Property
$ 406 Total 243 Total $ 175 Total $ 08 Total $ 1364 Total 607 Total $ 587 Total $ 26 Total
HEALTHCARE 250000 SF $ 1252 Direct 694 Direct $ 834 Direct $ 28 Income 600000 SF $ 4040 Direct 1667 Direct $ 2690 Direct $ 91 Income
$ 187 Indirect 134 Indirect $ 61 Indirect $ 05 Corp $ 604 Indirect 322 Indirect $ 198 Indirect $ 16 Corp
$ 404 Induced 309 Induced $ 154 Induced $ 09 Property $ 1303 Induced 742 Induced $ 495 Induced $ 30 Property
$ 1844 Total 1138 Total $ 1049 Total $ 43 Total $ 5947 Total 2731 Total $ 3383 Total $ 137 Total
RESIDENTIAL 300 DU $ 09 Property 300 DU $ 33 Property
SENIOR HOUSING 150 DU $ 04 Property 300 DU $ 11 Property
MIXED-USE INFILL DEVELOPMENT 100000 SF $ 240 Direct 179 Direct $ 77 Direct $ 03 Income 250000 SF $ 806 Direct 471 Direct $ 257 Direct $ 09 Income
Retail 20 $ 45 Indirect 31 Indirect $ 14 Indirect $ 01 Corp $ 152 Indirect 77 Indirect $ 47 Indirect $ 03 Corp
Office 20 $ 34 Induced 28 Induced $ 14 Induced $ 02 Property $ 112 Induced 71 Induced $ 46 Induced $ 10 Property
Residential 60 $ 319 Total 238 Total $ 104 Total $ 05 Total $ 1070 Total 620 Total $ 350 Total $ 23 Total
CONVENTION CENTER 150000 SF $ 147 Direct 119 Direct $ 44 Direct $ 02 Income
(Visitor Spending) $ 43 Indirect 25 Indirect $ 13 Indirect $ 01 Corp
$ 24 Induced 15 Induced $ 08 Induced $ 06 Lodging
$ 214 Total 160 Total $ 64 Total $ 08 Total
TOTAL ANNUAL $ 3759 Direct 2416 Direct $ 1652 Direct $ 59 Income $ 16341 Direct 8662 Direct $ 7299 Direct $ 259 Income
$ 696 Indirect 470 Indirect $ 220 Indirect $ 14 Corp $ 2950 Indirect 1664 Indirect $ 938 Indirect $ 62 Corp
$ 802 Induced 623 Induced $ 308 Induced $ 15 Lodging $ 3537 Induced 2276 Induced $ 1365 Induced $ 38 Lodging
$ 5257 Total 3509 Total $ 2180 Total $ 42 Property $ 22827 Total 12602 Total $ 9602 Total $ 188 Property
$ 130 Total $ 546 Total
AGGREGATE TOTAL (30 YEARS) $ 250126 $ 103729 $ 6170 $ 673652 $ 283016 $ 16156
340x 705x
Aggregate Effective Income Tax Rate 2697 Based on BEA Data
Effective Corporate Income Tax Rate 0270 MT DOR Collections BEA GDP
Lodging Tax 7 (4 Lodging Facility Use Tax + 3 Lodging Facility Sales Tax)
Escalation Assumption 30
ONE BIG SKY CENTER
Billings Montana
ECONOMIC amp FISCAL IMPACT ESTIMATES (LOW)
PHASE 1 PHASE 2
Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M) Program13 Output13($M) Jobs13 Wages13($M) Fiscal Impacts13($M)
HOTEL 200 KEYS $ 160 Direct 160 Direct $ 54 Direct $ 02 Income 300 KEYS $ 398 Direct 240 Direct $ 98 Direct $ 04 Income
$ 47 Indirect 34 Indirect $ 15 Indirect $ 01 Corp $ 117 Indirect 50 Indirect $ 28 Indirect $ 02 Corp
$ 26 Induced 21 Induced $ 09 Induced $ 07 Lodging $ 65 Induced 31 Induced $ 17 Induced $ 18 Lodging
$ 233 Total 214 Total $ 78 Total $ 06 Property $ 580 Total 321 Total $ 143 Total $ 15 Property
$ 16 Total $ 38 Total
RETAIL DINING ENTERTAINMENT 100000 SF $ 363 Direct 496 Direct $ 145 Direct $ 04 Income 225000 SF $ 1088 Direct 1221 Direct $ 435 Direct $ 13 Income
$ 23 Indirect 17 Indirect $ 07 Indirect $ 01 Corp $ 69 Indirect 41 Indirect $ 21 Indirect $ 03 Corp
$ 27 Induced 25 Induced $ 11 Induced $ 04 Property $ 81 Induced 61 Induced $ 34 Induced $ 11 Property
$ 413 Total 537 Total $ 163 Total $ 09 Total $ 1239 Total 1323 Total $ 490 Total $ 28 Total
COMMERCIAL OFFICE 150000 SF $ 1142 Direct 600 Direct $ 324 Direct $ 13 Income 350000 SF $ 3247 Direct 1400 Direct $ 920 Direct $ 37 Income
$ 276 Indirect 205 Indirect $ 87 Indirect $ 04 Corp $ 785 Indirect 479 Indirect $ 246 Indirect $ 12 Corp
$ 191 Induced 174 Induced $ 78 Induced $ 05 Property $ 545 Induced 405 Induced $ 222 Induced $ 15 Property
$ 1609 Total 979 Total $ 488 Total $ 22 Total $ 4577 Total 2284 Total $ 1389 Total $ 64 Total
BIOSCIENCE 50000 SF $ 273 Direct 167 Direct $ 124 Direct $ 04 Income 125000 SF $ 831 Direct 417 Direct $ 378 Direct $ 13 Income
$ 32 Indirect 25 Indirect $ 11 Indirect $ 01 Corp $ 97 Indirect 62 Indirect $ 35 Indirect $ 03 Corp
$ 64 Induced 51 Induced $ 23 Induced $ 02 Property $ 194 Induced 128 Induced $ 70 Induced $ 06 Property
$ 368 Total 243 Total $ 158 Total $ 07 Total $ 1122 Total 607 Total $ 483 Total $ 22 Total
HEALTHCARE 250000 SF $ 1136 Direct 694 Direct $ 756 Direct $ 26 Income 600000 SF $ 3324 Direct 1667 Direct $ 2213 Direct $ 75 Income
$ 170 Indirect 134 Indirect $ 56 Indirect $ 05 Corp $ 497 Indirect 322 Indirect $ 163 Indirect $ 13 Corp
$ 366 Induced 309 Induced $ 139 Induced $ 09 Property $ 1072 Induced 742 Induced $ 408 Induced $ 30 Property
$ 1672 Total 1138 Total $ 951 Total $ 39 Total $ 4893 Total 2731 Total $ 2783 Total $ 118 Total
RESIDENTIAL 300 DU $ 08 Property 300 DU $ 33 Property
SENIOR HOUSING 150 DU $ 03 Property 300 DU $ 11 Property
MIXED-USE INFILL DEVELOPMENT 100000 SF $ 225 Direct 179 Direct $ 72 Direct $ 03 Income 250000 SF $ 706 Direct 471 Direct $ 228 Direct $ 08 Income
Retail 20 $ 41 Indirect 31 Indirect $ 13 Indirect $ 01 Corp $ 128 Indirect 77 Indirect $ 40 Indirect $ 03 Corp
Office 20 $ 31 Induced 28 Induced $ 13 Induced $ 01 Property $ 96 Induced 71 Induced $ 39 Induced $ 10 Property
Residential 60 $ 297 Total 238 Total $ 98 Total $ 05 Total $ 929 Total 620 Total $ 307 Total $ 21 Total
CONVENTION CENTER 150000 SF $ 139 Direct 139 Direct $ 46 Direct $ 02 Income
(Visitor Spending) $ 41 Indirect 29 Indirect $ 13 Indirect $ 01 Corp
$ 23 Induced 18 Induced $ 08 Induced $ 06 Lodging
$ 202 Total 186 Total $ 68 Total $ 08 Total
TOTAL ANNUAL $ 3436 Direct 2435 Direct $ 1521 Direct $ 54 Income $ 13783 Direct 8384 Direct $ 6127 Direct $ 217 Income
$ 630 Indirect 474 Indirect $ 202 Indirect $ 13 Corp $ 2461 Indirect 1610 Indirect $ 780 Indirect $ 52 Corp
$ 728 Induced 626 Induced $ 282 Induced $ 13 Lodging $ 2940 Induced 2201 Induced $ 1133 Induced $ 33 Lodging
$ 4795 Total 3535 Total $ 2005 Total $ 38 Property $ 19183 Total 12195 Total $ 8040 Total $ 178 Property
$ 118 Total $ 480 Total
AGGREGATE TOTAL (30 YEARS) $ 194508 $ 81357 $ 4781 $ 518608 $ 217319 $ 12946
263x 565x
Aggregate Effective Income Tax Rate 2697 Based on BEA Data
Effective Corporate Income Tax Rate 0270 MT DOR Collections BEA GDP
Lodging Tax 7 (4 Lodging Facility Use Tax + 3 Lodging Facility Sales Tax)
Escalation Assumption 20
ONE BIG SKY CENTER
Billings Montana
ECONOMIC amp FISCAL IMPACTS
PHASE 1 FULL BUILDOUT
LOW HIGH LOW HIGH
PROGRAM 10 Million SF 10 Million SF 40 Million SF 50 Million SF
PRIVATE INVESTMENT $3270 Million $3520 Million $10 Billion $20 Billion
VISITATION 10 Million 10 Million 40 Million 40 Million
ECONOMIC OUTPUT 4794618805 (Annually) 5257467756 (Annually) 1918349973 (Annually) 2282740941 (Annually)
(Direct Indirect amp Induced)
EMPLOYMENT 3535 Jobs 3509 Jobs 12195 Jobs 12602 Jobs
(Direct Indirect amp Induced)
EARNINGS 2005455783 (Annually) 2180306006 (Annually) 804037145 (Annually) 9602425147 (Annually)
(Direct Indirect amp Induced)
FISCAL IMPACTS 117843492 (Annually) 1296944889 (Annually) 479704742 (Annually) 5459243472 (Annually)
4780684117 (30 years) 6170269226 (30 years) 1294591687 (30 years) 1615599362 (30 years)
ONE BIG SKY CENTER
Billings Montana
MASTER PROJECT BUDGET - PHASED
TOTAL PHASE 1 PHASE 2
USES OF FUNDS ($MM)
PRIVATE
Hotel $ 1675 $ 553 $ 1122
Retail Dining Entertainment $ 1267 $ 314 $ 953
Commerical Office $ 1829 $ 442 $ 1387
Bioscience $ 907 $ 208 $ 700
Healthcare $ 4860 $ 1015 $ 3846
Residential $ 2894 $ 633 $ 2261
Senior Housing $ 1069 $ 291 $ 778
Mixed-Use Renovation $ 792 $ 182 $ 611
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 322 $ 322 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
ONE BIG SKY CENTER
Billings Montana
USES OF FUNDS - PHASED
TOTAL PHASE 1 PHASE 2
USES OF FUNDS ($MM)
PRIVATE
Land $ 1013 $ 248 $ 765
Construction $ 7838 $ 1711 $ 6128
FFampE $ 726 $ 137 $ 589
Development $ 2175 $ 450 $ 1725
Financing $ 483 $ 101 $ 382
TI Allowances $ 2036 $ 485 $ 1551
Contingency $ 659 $ 140 $ 519
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 687 $ 687 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
ONE BIG SKY CENTER
Billings Montana
SOURCES amp USES - PHASED
TOTAL PHASE 1 PHASE 2
SOURCES OF FUNDS ($MM)
PRIVATE
Equity Investment $ 4370 $ 1023 $ 3347
Debt Financing $ 10560 $ 2249 $ 8311
PUBLIC
Public Investment $ 2292 $ 1817 $ 475
bull City
bull State
bull Federal
TOTAL $ 17222 $ 5089 $ 12133
USES OF FUNDS ($MM)
PRIVATE
Land $ 1013 $ 248 $ 765
Construction $ 7838 $ 1711 $ 6128
FFampE $ 726 $ 137 $ 589
Development $ 2175 $ 450 $ 1725
Financing $ 483 $ 101 $ 382
TI Allowances $ 2036 $ 485 $ 1551
Contingency $ 659 $ 140 $ 519
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 687 $ 687 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
PRIVATE 1493002000 327189000 1165813000
PUBLIC 229157000 181689000 47468000
ONE BIG SKY CENTER
Billings Montana
SOURCES amp USES - PHASED
TOTAL PHASE 1 PHASE 2
SOURCES OF FUNDS ($MM)
PRIVATE
Equity Investment $ 4370 $ 1023 $ 3347
Debt Financing $ 10560 $ 2249 $ 8311
PUBLIC
City Investment $ 602 $ 365 $ 237
State Investment $ 1689 $ 1452 $ 237
TOTAL $ 17222 $ 5089 $ 12133
USES OF FUNDS ($MM)
PRIVATE
Land $ 1047 $ 282 $ 765
Construction $ 8074 $ 1946 $ 6128
FFampE $ 726 $ 137 $ 589
Development $ 2237 $ 512 $ 1725
Financing $ 497 $ 115 $ 382
TI Allowances $ 2036 $ 485 $ 1551
Contingency $ 678 $ 160 $ 519
PUBLIC
Convention Center $ 697 $ 697 $ - 0
Civic Infrastructure $ 322 $ 322 $ - 0
Structured Parking $ 908 $ 434 $ 475
TOTAL $ 17222 $ 5089 $ 12133
PRIVATE 1493002000 327189000 1165813000
PUBLIC 229157000 181689000 47468000
ONE BIG SKY CENTER
Billings Montana
GAP ANALYSIS - PHASE 1
HOTEL RETAIL OFFICE BIOSCIENCE HEALTHCARE RESIDENTIAL SR HOUSING TOTAL
200 KEYS 100000 SF 150000 SF 50000 SF 250000 SF 300 DU 150 DU
MARKET CONDITIONS $15441 Night $2484 SF $1673 SF $2575 SF $35012 SF $1518 MO $1389 MO
(Current Dollars) Avg Daily Rate NNN Rental Rate NNN Rental Rate NNN Rental Rate Building Value Avg Rental Rate Avg Rental Rate
REQUIRED FOR DEVELOPMENT $19064 Night $2484 SF $2290 SF $3192 SF $35012 SF $1829 MO $1691 MO
(Current Dollars) Avg Daily Rate NNN Rental Rate NNN Rental Rate NNN Rental Rate Building Value Avg Rental Rate Avg Rental Rate
PROJECTED VALUE ($M) $ 453 $ 314 $ 322 $ 168 $ 1015 $ 561 $ 258 $ 3090
PROJECTED COST ($M) $ 553 $ 314 $ 442 $ 208 $ 1015 $ 633 $ 291 $ 3455
GAP ($M) ($ 100) $ - 0 ($ 120) ($ 40) $ - 0 ($ 72) ($ 33) ($ 365)
ONE BIG SKY CENTER
Billings Montana
PROGRAM amp PHASING
PHASE 1 PHASE 2 TOTAL
HOTEL 200 KEYS 300 KEYS 500 KEYS
160000 SF 240000 SF 400000 SF
RETAIL DINING ENTERTAINMENT 100000 SF 225000 SF 325000 SF
COMMERCIAL OFFICE 150000 SF 350000 SF 500000 SF
BIOSCIENCE 50000 SF 125000 SF 175000 SF
HEALTHCARE 250000 SF 600000 SF 850000 SF
Ambulatory Medical Wellness 75000 SF 400000 SF 475000 SF
Medical Office 175000 SF 200000 375000 SF
RESIDENTIAL 300 DU 800 DU 1100 DU
300000 SF 800000 SF 1100000 SF
SENIOR HOUSING 150 DU 300 DU 450 DU
105000 SF 210000 SF 315000 SF
MIXED-USE INFILL DEVELOPMENT 100000 SF 250000 SF 350000 SF
CONVENTION CENTER 100000 SF 50000 SF 150000 SF
CIVIC 80000 SF 50000 SF 130000 SF
PARKING STRUCTURE 1030 Stalls 827 Stalls 1857 Stalls Residential assumed to separately build and finance its own parking in Phase 2
TOTAL (NIC Parking) 1395000 SF 2900000 SF 4295000 SF
Page 7: PROGRAM & VISION STATEMENT · program & vision statement ONE Big Sky District is a large, mixed-use, multi-anchor program supporting broad development goals driving the long-term

O N E B I G S K Y D I S T R I C T ndash T R A N S F O R M I N G T H E E C O N O M I C F U T U R E O F M O N T A N A 88

PROGRAM amp VISION STATEMENT

Why the time is now for this project

- Billings needs a defined vision and plan that will drive our economic future

- Serious workforce challenges in that will only get worse in upcoming years

- Flat economic growth which will result in a growing tax burden on existing property owners

- Billings is in a regional competition ndash with communities around Billings making large investments in their amenities and infrastructure to attract the businesses and workforce of tomorrow

URGENT ISSUES REQUIRING ACTION

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