Exhibit 4: All Market-Rent Properties: Operating Income and Expense Data, 2016 T

Question

Exhibit 4: All Market-Rent Properties: Operating Income and Expense Data, 2016

Total

Garden

Mid and High Rise

$ Per

$ Per

% of

$ Per

$ Per

% of

$ Per

$ Per

% of

Unit

Sq. Ft.

GPR

Unit

Sq. Ft.

GPR

Unit

Sq. Ft.

GPR

Revenues

Gross Potential Rent

$13,517

$14.47

100.0%

$12,561

$13.39

100.0%

$19,113

$21.00

100.0%

Rent Revenue Collected

$12,566

$13.45

93.0%

$11,690

$12.46

93.1%

$17,688

$19.43

92.5%

Losses to Vacancy

$726

$0.78

5.4%

$669

$0.71

5.3%

$1,058

$1.16

5.5%

Collection Losses

$82

$0.09

0.6%

$82

$0.09

0.7%

$81

$0.09

0.4%

Losses to Concessions

$143

$0.15

1.1%

$118

$0.13

0.9%

$286

$0.31

1.5%

Other Revenue

$787

$0.84

5.8%

$714

$0.76

5.7%

$1,211

$1.33

6.3%

Total Revenue

$13,353

$14.30

98.8%

$12,405

$13.22

98.8%

$18,899

$20.76

98.9%

Operating Expenses

Salaries and Personnel

$1,284

$1.37

9.5%

$1,240

$1.32

9.9%

$1,540

$1.69

8.1%

Insurance

$259

$0.28

1.9%

$251

$0.27

2.0%

$302

$0.33

1.6%

Taxes

$1,575

$1.69

11.6%

$1,408

$1.50

11.2%

$2,550

$2.80

13.3%

Utilities

$330

$0.35

2.4%

$301

$0.32

2.4%

$502

$0.55

2.6%

Management Fees

$364

$0.39

2.7%

$344

$0.37

2.7%

$483

$0.53

2.5%

Administrative

$265

$0.28

2.0%

$248

$0.26

2.0%

$369

$0.41

1.9%

Marketing

$174

$0.19

1.3%

$157

$0.17

1.2%

$277

$0.30

1.4%

Contract Services

$355

$0.38

2.6%

$324

$0.34

2.6%

$541

$0.59

2.8%

Repair and Maintenance

$487

$0.52

3.6%

$476

$0.51

3.8%

$548

$0.60

2.9%

Total Operating Expenses

$5,094

$5.45

37.7%

$4,748

$5.06

37.8%

$7,112

$7.81

37.2%

Net Operating Income

$8,259

$8.84

61.1%

$7,656

$8.16

61.0%

$11,787

$12.95

61.7%

Capital Expenditures

$1,181

$1.26

8.7%

$1,127

$1.20

9.0%

$1,490

$1.64

7.8%

Exhibit 5: Apartment Operations Metrics, 2016

PROPERTY SIZE

REVENUE / PAYROLL

NET OPERATING INCOME / PAYROLL

# UNITS / FULL-TIME EMPLOYEES

# UNITS / TOTAL EMPLOYEES

PAYROLL / REVENUE

PAYROLL / NET OPERATING INCOME

Less Than 100 Units

$9.09

$5.20

33.5

28.0

11.0%

19.2%

100 to 199 Units

$8.98

$5.26

39.1

35.0

11.1%

19.0%

200 to 299 Units

$9.72

$5.95

41.8

39.7

10.3%

16.8%

300 to 399 Units

$10.35

$6.48

45.6

43.9

9.7%

15.4%

400 to 499 Units

$10.43

$6.60

46.4

45.4

9.6%

15.2%

500 or More Units

$10.78

$6.80

49.2

48.1

9.3%

14.7%

Total

$10.00

$6.17

43.7

41.5

10.0%

16.2%

If John Blatchford’s operations are based on the financial metrics in Exhibits 4 and 5, what will be the monthly rent in the proposed development based on the permanent, annual payroll of $150,000? Is the value reasonable?

Total

Garden

Mid and High Rise

$ Per

$ Per

% of

$ Per

$ Per

% of

$ Per

$ Per

% of

Unit

Sq. Ft.

GPR

Unit

Sq. Ft.

GPR

Unit

Sq. Ft.

GPR

Revenues

Gross Potential Rent

$13,517

$14.47

100.0%

$12,561

$13.39

100.0%

$19,113

$21.00

100.0%

Rent Revenue Collected

$12,566

$13.45

93.0%

$11,690

$12.46

93.1%

$17,688

$19.43

92.5%

Losses to Vacancy

$726

$0.78

5.4%

$669

$0.71

5.3%

$1,058

$1.16

5.5%

Collection Losses

$82

$0.09

0.6%

$82

$0.09

0.7%

$81

$0.09

0.4%

Losses to Concessions

$143

$0.15

1.1%

$118

$0.13

0.9%

$286

$0.31

1.5%

Other Revenue

$787

$0.84

5.8%

$714

$0.76

5.7%

$1,211

$1.33

6.3%

Total Revenue

$13,353

$14.30

98.8%

$12,405

$13.22

98.8%

$18,899

$20.76

98.9%

Operating Expenses

Salaries and Personnel

$1,284

$1.37

9.5%

$1,240

$1.32

9.9%

$1,540

$1.69

8.1%

Insurance

$259

$0.28

1.9%

$251

$0.27

2.0%

$302

$0.33

1.6%

Taxes

$1,575

$1.69

11.6%

$1,408

$1.50

11.2%

$2,550

$2.80

13.3%

Utilities

$330

$0.35

2.4%

$301

$0.32

2.4%

$502

$0.55

2.6%

Management Fees

$364

$0.39

2.7%

$344

$0.37

2.7%

$483

$0.53

2.5%

Administrative

$265

$0.28

2.0%

$248

$0.26

2.0%

$369

$0.41

1.9%

Marketing

$174

$0.19

1.3%

$157

$0.17

1.2%

$277

$0.30

1.4%

Contract Services

$355

$0.38

2.6%

$324

$0.34

2.6%

$541

$0.59

2.8%

Repair and Maintenance

$487

$0.52

3.6%

$476

$0.51

3.8%

$548

$0.60

2.9%

Total Operating Expenses

$5,094

$5.45

37.7%

$4,748

$5.06

37.8%

$7,112

$7.81

37.2%

Net Operating Income

$8,259

$8.84

61.1%

$7,656

$8.16

61.0%

$11,787

$12.95

61.7%

Capital Expenditures

$1,181

$1.26

8.7%

$1,127

$1.20

9.0%

$1,490

$1.64

7.8%

Explanation / Answer

So, the rent is justified.

Less Than 100 Units $1,363,500.00 $780,000.00 100 to 199 Units $1,347,000.00 $789,000.00 200 to 299 Units $1,458,000.00 $892,500.00 300 to 399 Units $1,552,500.00 $972,000.00 400 to 499 Units $1,564,500.00 $990,000.00 500 or More Units $1,617,000.00 $1,020,000.00 Total $1,500,000.00 $925,500.00

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