2014-2015 nahb final proposal (compressed)

A Transit Oriented Development

California Polytechnic UniversitySan Luis Obispo, California

Four Year ProgramNational Association of Home Builders- RCMC

Presented By

2

TABLE OF CONTENTS

Executive Summary..........................................................4

Property Description........................................................10

Financial Analysis.............................................................126

Project Managment..........................................................104

Sales Strategy.................................................................

Green Building Strategies..............................................

92

80

Product Description..........................................................54

Land Development............................................................38

Market Analysis.................................................................20

Cal Poly SLORCMC 2014 - 4 year 3

4

The Team

Executive Summary

Introduction

INTRODUCTION EXECUTIVE SUMMARY

6

CPS Builders, the premier construction developer in Nashville, TN, should welcome the opportunity to acquire 40 acres of multi-use land at Hamilton Springs. Currently a lack of housing exists in the greater Nashville area and, imparticular, Lebanon. Apartments in the area are nearly fully occupied, with move-in waitlists. Bordering the Music City Star Rail, Hamilton Springs will soon have a rail station, connecting it to downtown Nashville and downtown Lebanon. This presents CPS Builders with the opportunity to fill the housing void in a unique way, to create a truly transit-oriented development.

Our proposed development, named Hamilton Crossings, will offer residents an exclusive lifestyle. We recommend building multiple building types: townhomes, apartments, mixed-use, and two podium structures. Specifically, we plan on building 170 townhome units, 685 apartment units, and 165,568 sf of commercial space. Utilizing such diverse building types, we will create an aesthetically pleasing and vibrant community.

Hamilton Crossings, which will exploit its proximity to the rail station, will be extremely profitable long term. We propose to build Hamilton Crossings in three phases over eight years. Townhomes will be sold, while apartments and commercial space will be rented until year eleven.

Individual year cashflows will fluctuate depending on the specific phase of the project. This project will require a total equity contribution of $7.56 million to fund purchase of the land as well as a portion of construction operations. During its eleven year life cycle, Hamilton Crossings will generate a 29.29% Internal Rate of Return and $35.35 million profit.

We strongly recommend pursuing this unique opportunity.

INTRODUCTION


THE TEAM

8

INTRODUCTION

Chris BetFinanceWoodside , California

Darya OreiziCity and Regional PlanningClovis, California

Eric SanchezConstruction ManagementBakersfield, California

Anna CostaFinanceGilroy, California

Derik DeLonzorArchitectureSan Ramon, CA

Josh GleasonConstruction ManagementTucson, AZ


INTRODUCTION

10

“The Volunteer State”

Site Analysis

Site Information

Transit Oriented Development

State HistoryProperty Location

Neighboring PropertiesA Growing Region

ZoningClimate Analysis

Music City Star Rail LineWhy TOD

PROPERTY DESCRIPTION

PPROPERTYDESCRIPTION

12

“THE VOLUNTEER STATE”

12

Location: Tennessee “Home of the Volunteers”

Fast Facts:Land Area: 41,234 sq. miles Population: 6.49 Million people Population Density: 153.9 per sq. Mile County: Wilson CountyHighest Elevation: 6,643 ft (Great Smokies Mt. Range)Lowest Elevation: 178 ft. (Mississippi Bottom)State Capital: Nashville Major Rivers: Mississippi, Cumberland, Clinch, Duck

Tennessee State Flag

The state of Tennessee covers 41,234 square miles and has a population of 6.49 million people. Located in the southeastern half of the United States, the state stretches 432 miles from the shared Appalachian Mountains in the east, to the Mississippi river boarder in the west. Tennessee is unique in its geography in that the state is legally divided into three grand divisions: East Tennessee, Middle Tennessee, and West Tennessee. Tennessee’s geography has a variety of physical features that add to its physiographic beauty.

The eastern portion of the state is dominated by the mountainous terrain of the Cumberland Plateau and the Appalachian mountains. The mid and western regions of Tennessee sit at much lower elevations, and are home to many of the state’s rivers, lakes and basins.

When comparing the state density per. square mile of 153.9 to the national average of 193.06, Tennessee is slightly more open than the rest of the United States. The city of Lebanon is located in Middle Tennessee, 25 miles east of the state capital of Nashville. Resting at an elevation of roughly 531 feet, the city boasts four easily accessible modes of transportation: railroads, public roads, a municipal airport, and rivers. Lebanon has a population of 28,408, ranking as the 26th largest city in the state.

Cal Poly SLORCMC 2014 - 4 year

PROPERTYDESCRIPTION

13

SITE LOCATION

State History

Location in Tennessee

Prior to the incorporation of any counties or cities in Tennessee, the region was inhabited by Native Americans. The most prominent Native American tribe to settle in this area was the Cherokee, who also claimed territory south of the Ohio River, and parts of North Carolina, South Carolina, Georgia, and East Tennessee. The land served as a prosperous hunting ground due to the extensive wildlife that lived in the cane brakes, cedar forests, and luscious riverbeds. However, as westward expansion from the European settlers progressed, these and other indegenous peoples were forced to settle elsewhere. On June 1, 1796, President George Washington signed a bill admitting Tennessee as the 16th state of the union.

Tennessee’s rich military history can be traced back to the war of 1812, and Civil War Periods. The nickname “Volunteer State” comes from the valiant effort of volunteer soldiers who helped General Andrew Jackson lay siege on British

forces at the Battle of New Orleans. During the Civil War, Tennessee became a major battle ground due to the fact that much of the region served as a crossroad for union and confederate forces. Many famous battles of the Civil War were fought on Tennessee soil, such as the Battle of Shiloh, Battle of Murfreesboro, and Battle of Chickamauga. Tennessee returned to the Union in 1866.

To parallel Tennessee’s rich military history, the state also played a critical role in the development of American popular music. In the early 20th century, the City of Memphis gave birth to the musical genres of Rock and Roll, Blues, Country Rockabilly, and Country Music. Sun Records, based in Memphis, developed famous stars such as Elvis Presley, Johnny Cash, Carl Perkins, and Jerry Lee Lewis. Museums are located throughout the state in recognition of all that the region has done for music, including: Memphis Rock’n’Soul Museum, the Country Music Hall of Fame in Nashville, and the International Rock-A-Billy Museum in Jackson.

Our Site

Nashville

KnoxvilleTENNESSEE


14

SITE INFORMATION

ZoningHamilton Crossings is currently zoned as RS-15 (Low Density Single Family Residential). According to the City of Lebanon, the RS-15 District, “is intended to provide suitable areas for medium density single-family residential development where appropriate urban services and facilities are available or can be physically and economically extended”. According to the Hamilton Springs Regulating Plan, the Village Center (where our site is situated) must include a minimum of 12 DUA (dwelling units per acre) to a maximum of 40 DUA.

Hamilton Springs Regulating Plan. Our site encompasses the central “Village Center” area that is South of the Music City Star Rail Service


PROPERTYDESCRIPTION

15

Atmospheric ConditionsThe climate in Lebanon is generally pleasing to those who like to experience the different elements of four seasons. The temperate summers yield temperatures in the mid 70’s to low 90’s with humidity being slightly higher than the national average. Outdoor concerts and gatherings are the norm during these months.The fall months are arguably the most enjoyable months of the year. Daytime temperatures are pleasant, with daytime high’s averaging around 65 degrees. Average evening temperatures are slightly cooler, requiring a light jacket or sweater. The annual changing of leaves in mid-October is a popular tourist attraction.

The winter and spring seasons are very wet. Average rainfall for Lebanon is approximately 52.8 inches, compared to the national average of 36.5 inches. According to the National Weather Service, Lebanon receives roughly 120 days of rain a year.


16

Neighboring Properties

SITE ANALYSIS

SITE

To Lebanon

ProposedPUD

Future Transit Station

Existing Apartments

Proposed PUD

To Nashville Highway 70

The site has the chance to become the center of activity for its immediate community of Hamilton Springs, neighbored on all sides by other residential developments. The transit station could also bring additional traffic to the site. These conditions open up the site for uses other than just residential, such as community areas and commercial spaces. Due to the location of the site at the center of a growing residential area, and with immediate proximity to a future rail station, this site could become the focal point of the area.

All of these conditions combine to create a potential gem that a developer can be proud of.

Hamilton Crossings offers a unique opportunity to create a new development that both takes advantage of the growing Middle Tennessee residential market and utilizes its proximity to a future transit station. Aside from the transit station nearly being on-site, the property is also directly next to a major highway. The transit station and highway offer great connectivity to nearby Lebanon and Nashville. Residents of the site will have ease of access to all of the activities and job opportunities in the neighboring areas. This makes the property more desirable for future residents, and more sellable from a developer point of view.


PROPERTYDESCRIPTION

17

A Growing RegionThe Middle Tennessee area is growing, and shows no signs of slowing down anytime soon. Over the next decade, thousands of homes are slated to be constructed. Multiple new factories have increased job opportunities and Nashville is becoming an even bigger hub of activity and commerce for the area. With this growth comes a reliable residential market and great sellability for the new construction at Hamilton Crossings.

The map above shows the residential projects, both under construction (in pink) and future developments (in green) around the Lebanon area. Our site is conveniently located where much of the new development is going in.

ST. H

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Red

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Rockwood Ln.

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.

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Old P ecan Ln.

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Shady Valley Dr.

Ross Creek Way

Spence Creek Dr.

Rock Castle D

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Ham

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side

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Summerfie ld Dr.

Chris tine Dr.

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Upton HeightsW. Loop

Sul lins S t.

Winston Av e.

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Coles Ferr y Pk.

Co les Ferr y Pk.

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[

2,100 0 2,1001,050 Feet

THE CITY OF LEBANON

www.lebanontn.org

(Preliminary and/or Final Plat Approved)

* Existing County Subdivisons in Urban Growth Boundary

MAP ID EXISTING SUBDIVISION / APARTMENTS* E01 Henley Acres* E02 Rome Pike Estates* E03 Kristy Jordan

E04 RidgetopE05 HallcroftE06 Johnson HeightsE07 YourE08 Pals Place

* E09 Little EgyptE10 Green GrassE11 Heartland PlaceE12 Eastland HillsE13 Chateauroux

* E14 Cumberland TraceE15 Southern PlaneE16 Thorne EstatesE17 Holloway ParkE18 Shady AcresE19 South Maple ChaseE20 Deer ParkE21 CrosswindsE22 Southern HeightsE23 West View AcresE24 Moody CourtE25 West Side ParkE26 Spring MeadowE27 Lowe AcresE28 Hickory Valley AcresE29 Fox RunE30 Checca EstatesE31 Lei Lani HillsE32 Shenandoah EstatesE33 Walnut AcresE34 The VineyardE35 Geers PlaceE36 Brook ViewE37 Manor ViewE38 Blairwood DownsE39 WoodhavenE40 West HillE41 West End HeightsE42 Hidden AcresE43 Oak HillE44 FairwaysE45 Fairfield Place

* E46 Windmill AcresE47 Lannom AcresE48 KontikiE49 Alhambra NorthE50 Ponderosa EstatesE51 ChaparralE52 SummercrestE53 Maple HillE54 Saugus Estates

* E55 Plantation SouthE56 Horn SpringsE57 South ForkE58 Richmond HillsE59 Richmond WestE60 IroquoisE61 Georgetown Estates

* E62 Tuckers Gap MeadowsE63 Academy Place

* E64 Knollwood Landing* E65 Wildwood Estates* E66 Brookwood Estates* E67 Palmer Place* E68 Rolling Hills Estates

E69 Quail Meadow AcresE70 Greentree PointeE71 RollingwoodE72 SaddlebrookE73 CrosswindsE74 Hunters PointE75 Meadows of LebanonE76 Peyton Park

* E77 Spring HillE78 Westlynn Chase

SUBDIVISION STATUSEXISTING

PROPOSED

EXPIRED

City Limits

Date: 7/28/2014Path: I:\MXD\Subdivision\ECitySubdiv.mxd

MAP ID SUBDIVISION / OWNER NAME LOTS/UNITS1 Spence Creek 7002 Harmony Place 403 Kensington 2434 River Oaks 1655 Forest of Lebanon 2126 Oaks Point 1657 Five Oaks Town Homes 568 Five Oaks 4449 Hamilton Springs 38010 Waters Hill 2711 Farmington Woods 20012 Chapman Acres 3713 The Greens (Coles Ferry Village) 24814 Mayfair Meadows 9315 Walker Estates 24516 Allison Acres 4217 Bonnie Oaks 5818 Rocky Road 1219 Colonial Village Condos 13620 Colonial Village 12621 Hartmann Plantation 39022 Huntington Place 4023 Hillview Farms 26524 Hickory Knoll 41325 Stone Bridge 86226 Callis Hill Apartments 21027 Woodall Ridge 41628 Hearthstone 60

Sub-Total 6,245

Our Site


18

WHY TRANSIT ORIENTED DEVELOPMENT

The Riverfront Rail Station in Nashville

Music City Star Rail Line


PROPERTYDESCRIPTION

19

Mixed-Use + TOD

Traffic Impact

TRANSIT ORIENTED DESIGN STRATEGIES WILL REDUCE 600 VEHICLE TRIPS DAILY

The Hamilton Springs Regulatory Plan calls for a vibrant mixed-use and transit oriented development community. Hamilton Crossings implements both mixed-use and Transit Oriented Development (TOD) strategies. While planning Hamilton Crossings, we focused on how people circulate from one place to another. Incorporating themes such as easy access to public transportation, walk/bike-ability, and a variety of compact, mix of uses makes Hamilton Crossings as a desirable destination.

Within one block or ¼ mile (standard walkability distance), residents have five accessible modes of transportation at their disposal. These transportation modes include car, bus, train, walk, and bike. Furthermore, these modes of transportation are carefully designed to ensure safety, comfort, and efficiency. For example, while designing the street hierarchy, bicycle lanes were given importance and were carefully considered to ensure safe travel. Hamilton Crossings features wide bicycle lanes with physical buffers to separate cyclists from vehicular traffic. This strategy is by far the safest and most enjoyable bicycle lane scheme.

As far as mixed-use strategies, commuters to Nashville and suburb residents enjoy daily amenities all within walking distance. Commercial units are conveniently placed below residential, ensuring a healthy relationship between the two uses. Residents are able to work directly below their living space. This close relationship of residential and commercial reduces traffic congestion and pollution, and increases the community’s

Mixed-Use and TOD has many benefits: reduced air pollution, increased in accessible transportation modes, and reduced dependence on single passenger car, to name a few. Mixed-Use and TOD strategies also reduce traffic congestion. According to the Environmental Protection Agency’s (EPA) Mixed-Use Trip Generation Model, Hamilton Crossings will reduce all vehicular trips within the development area by 6% compared to traditional development strategies. In other words, the Mixed-Use Trip Generation Model estimated Hamilton Crossings will generate approximately 10,300 trips daily; but with mixed-use and transit oriented development strategies, Hamilton Crossings will generate an estimated 9,700 trips daily.

economic integrity. Altogether, Hamilton Crossings provides a vast array of residential and transportation alternatives. Because of the array of transportation modes and compact residential-commercial design, each community member is free to express his or her personal lifestyle. Our community-first strategy not only is economically rewarding, but also implements the latest sustainability ideas, thereby propelling Hamilton Crossings to thrive for years to come.

20

Future GrowthTownhome Market AnalysisMulti-Family Market AnalysisLocal Competition

Housing Market

CommutersMusic City Star Rail

Transportation

City DescriptionHistory of LebanonDemographicsIncome DistributionEmploymentLocal AmenititesNashville Amenities

MARKET ANALYSIS

MARKETANALYSIS

22

CITY DESCRIPTION

Lebanon, TennesseeThe City of Lebanon was incorporated 1819 and currently sits as the head seat of Wilson County. For most of the Civil War the City of Lebanon served as a passing city for the Confederate Army as well as a center of commerce and education. Much of this commerce was brought to the area by the opening of Cumberland University in 1842; one of the first higher education institutions in the state. Post-Civil War, the city experienced vast business and industrial growth, thanks to the manufacturing industry. The first industrial park in the state was built in Lebanon, and now serves as corporate headquarters for Crackle Barrel Country Store.

The City of Lebanon has something to offer for everyone. For those who enjoy hiking, there are state parks like The Cedars of Lebanon which offers 9,000 acres comprised of beautiful forests, equestrian trails, and riverbeds. For others who may be interested in shopping and exploring the historical districts of the city, there are the Lebanon Premium Outlets and Downtown Lebanon areas. Perhaps the biggest attraction of the area is the Wilson County Fair, which many local magazines consider to be the best County Fair in Tennessee.

In addition to these activities, the Music City Star Rail line runs through Lebanon all the way to Nashville, allowing commuters to travel to work during the week days, and professional sports fans to travel during the weekend. Given these amenities, CPS Builders believes Lebanon is a perfect location for our proposed development.


MARKETANALYSIS

23

Demographics

White77%

Black 11%

Asian 1%Other

4%Hispanic

7%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

1 PersonHousehold

2- 3 PersonHoushold

4-5 personhousehold

6 + personhousehold

Perc

ent o

f tot

al p

opul

atio

n

Persons per household

Household Composition

0%

5%

10%

15%

20%

25%

Perc

ent o

f City

Pop

ulat

ion

Age

Age Distribution

Lebanon, TN Demographics Income

At a glance:

Zip code: 37087 & 37090

Area Code: 615

City Population: 28,457

Median Age: 34

State Median Age: 38

Male Population (48.1%): 13,700

Female Population (51.9%): 14,758

Average House Size: 2.49

% Family Households: 65.9

Median Home Value: $182,820

Cost of Living Index: 89

Blue Collar Industries: 44%

White Collar Industries: 56%

Average Commute to Work: 15 min.

Unemployment Rate: 5%

Never Married

27%

Married53%

Widowed

7%

Divorced13%

White77%

Black 11%

Asian 1%Other

4%Hispanic

7%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

1 PersonHousehold

2- 3 PersonHoushold

4-5 personhousehold

6 + personhousehold

Perc

ent o

f tot

al p

opul

atio

n

Persons per household

Household Composition

0%

5%

10%

15%

20%

25%

Perc

ent o

f City

Pop

ulat

ion

Age

Age Distribution

Lebanon, TN Demographics Income

At a glance:

Zip code: 37087 & 37090

Area Code: 615

City Population: 28,457

Median Age: 34

State Median Age: 38

Male Population (48.1%): 13,700

Female Population (51.9%): 14,758

Average House Size: 2.49

% Family Households: 65.9

Median Home Value: $182,820

Cost of Living Index: 89

Blue Collar Industries: 44%

White Collar Industries: 56%

Average Commute to Work: 15 min.

Unemployment Rate: 5%

Never Married

27%

Married53%

Widowed

7%

Divorced13%

MARKETANALYSIS

24

Educational Attainment/Income Distribution

CITY DESCRIPTION

Of the total population of Lebanon, 81.92% are high school graduates, and 21.03% are college graduates. In our neighborhood specifically, education rates are moderately higher, with 90% of our population being high school graduates, and 32.3% being college graduates. According to Neighborhood Scout, a housing market research firm, our neighborhood ranks 91.7% better than all Tenessee’s neighborhoods for executive living.

According to ESRI Business Analyst Online, the current median household income in Lebanon is $42,431 compared to $50,076 for all US households. From the income distribution chart, approximately 45% of the total population makes less than $50,000 per year. These median income levels are projected to increase at an annual rate of 2.76% from 2014-2019. It is estimated that in five years the annual median household income for the area will be $48,626.

CPS Builders performed an additional analysis to understand how income levels at our specific site location compare with those of the rest of Lebanon, the State of Tennessee, and the national average. Our site location has a moderately higher income per capita, and a significantly higher median household income than the city, state, or national average. This is likely due to the highly educated population working the the executive, management, and professional positions. The median home value near our site is $267,509 compared to the median home value of Lebanon, which is $182,820. CPS Builders aim to provide a product at the slightly more affordable range of $200,000 to $230,000 to attain a greater share of the overall Lebanon Housing Market.

0.0%

5.0%

10.0%

15.0%

20.0%

Perc

ent o

f Tot

al P

opul

atio

n

Yearly Income

Income Distribution

Lebanon

$0

$20,000

$40,000

$60,000

$80,000

$100,000

Income Per Capita Median HouseholdIncome

US

Dolla

rs

2014 Income Comparisons

Tennessee

Lebanon

US Average

Site Location

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

HighschoolGraduates

CollegeGraduates

Educational Attainment

Site Neighborhood

City of Lebanon

Educational Attainment/ Income Distribution Of the total population of Lebanon, 81.92% are high school graduates, and 21.03% are college graduates. In our neighborhood specifically, education rates are moderately higher, with 90% of our neighborhood population being high school graduates, and 32.3% being college graduates. According to Neighborhood Scout, a housing market research firm, our neighborhood ranks 91.7% better than all Tennessee’s neighborhoods for executive living.

According to ESRI Business Analyst Online, the current median household income in Lebanon is $42,431 compared to $50,076 for all US households. From the income distribution chart, approximately 45% of the total population make less than $50,000 per year. These median income levels are projected to increase at an annual rate of 2.76% from 2014-2019. It is estimated that in five years the annual median household income for the area will be $48,626.

CPS Builders performed an additional analysis to understand how income levels at our specific site location compare with those of the rest of Lebanon, the State of Tennessee, and the national

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MARKETANALYSIS

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Local EmploymentSince August of 2013, the unemployment rate for both Wilson and Davidson Counties has gradually declined. The opening of several manufacturing, logistics, and fulfillment warehouses has provided thousands of jobs to Lebanon city residents over the past year. Currently Lebanon’s unemployment rate is estimated to be 5%, indicating that the local job market is relatively stable.

Much of Tennessee’s economic success can be credited to the manufacturing industry. In the late 2000’s the manufacturing sector was both the largest employer and highest producing industry at $140 billion. Within the past five years however, the retail, health care, and accommodation industries have joined manufacturing as the top industry of the city. Comparing city to state data, we see that Lebanon has more blue collar workers. That being said, the city is almost a split between blue collar and white collar positions, representing 44% and 56% respectively.

Function/Economics

Since August of 2013, the unemployment rate for both Wilson and Davidson Counties has gradually declined. The opening of several manufacturing, logistics, and fulfillment warehouses has provided thousands of jobs to Lebanon city residents over that past year. Currently Lebanon’s unemployment rate is estimated to be 5%, indicating that the local job market is relatively stable.

Much of Tennessee’s economic success can be credited to the manufacturing industry. In the late 2000’s the manufacturing sector was both the largest employer and highest producing industry at $140 billion. Within the past five years however, the retail, health care, and accommodation industries have joined manufacturing as the top industry of the city. Comparing city to state data, we see that Lebanon has more blue collar workers. That being said, the city is almost split between blue collar and white collar positions, representing 44% and 56% respectively.

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Function/Economics

Since August of 2013, the unemployment rate for both Wilson and Davidson Counties has gradually declined. The opening of several manufacturing, logistics, and fulfillment warehouses has provided thousands of jobs to Lebanon city residents over that past year. Currently Lebanon’s unemployment rate is estimated to be 5%, indicating that the local job market is relatively stable.

Much of Tennessee’s economic success can be credited to the manufacturing industry. In the late 2000’s the manufacturing sector was both the largest employer and highest producing industry at $140 billion. Within the past five years however, the retail, health care, and accommodation industries have joined manufacturing as the top industry of the city. Comparing city to state data, we see that Lebanon has more blue collar workers. That being said, the city is almost split between blue collar and white collar positions, representing 44% and 56% respectively.

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MARKETANALYSIS

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Lebanon AmmenitiesThe City of Lebanon, located 28 miles east of Nashville, has the appeal of a small town but offers the amenities of a well-established city. Downtown Lebanon features a historic district full of old-world charm and an attractive town square.The multiple antique shops all within the same downtown area make Lebanon an antique-lover’s paradise. Down town Lebanon achieves achieved Tennessee’s main street certification in 2013. The certification reflects “a strong historic ethic” as well as a “walkable, historic commercial district,” according to the Tennessee Department of Economic and Community Development.

For those looking for modern amenities, Lebanon is home to Premium Outlets, which features more than 60 popular stores such as: The Gap, Nike, Coach, and Bath & Body Works. The Outlets’ proximity to Interstate 40 makes for easy access.

Lebanon also features three golf courses: Lebanon Golf and Country Club, Five Oaks Golf and Country Club, and Hunters Point Golf Course which was praised by “Golf Digest” as, “One of the best places to play.”

CITY DESCRIPTION


MARKETANALYSIS

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Parks and Event CentersOne of Lebanon’s main attractions, Cedars of Lebanon, is an expansive 900-acre state park located 8 miles from the center of town, and is apart of the 9400 acres Cedars of Lebanon State Forest. The park is aptly named for the Eastern Red Cedar trees found throughout the area.

Overall, Cedars of Lebanon houses over 140 campsites, 11 picnic shelters, 3 bathhouses, an Olympic size pool. There are 8 miles of hiking trials and 12.5 miles of equestrian trails. The Park itself offers guided trial rides through its leased Stables. In addition, there is a nature center for kid’s activities and a few historical sights.

Fiddler’s Grove, located on the outskirts of Lebanon in Wilson County, offers tours of its historical sights along with historical reenactments dating back to the Civil War era. According to Fiddler’s Grove webpage, “It is the mission of Fiddlers Grove to preserve the history of the citizens of Wilson County, Tennessee by preserving buildings, artifacts, oral and written histories”.

Another popular attraction found in Lebanon is the Wilson County Fair. Every year from August 15 – 23 the City of Lebanon in conjunction with Wilson County hosts a fair complete with carnival rides, contests and competitions, live music, and daily exhibitions. In 2014, 484,096 people attended the fair.

MARKETANALYSIS

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EducationThere are eight K-8 schools to choose from in Lebanon, some of which are private and have some religious affiliation. There are also two public high schools located within the city: Wilson Central High with 1,644 students, and the recently built Lebanon High with 1,753 students. Lebanon High School was recently built, and features brand new facilities. Lebanon has an average school rating of 7 out of 10 according to Trulia and Zillow, which is slightly higher than that of surrounding cities.

As for higher education, there are two private colleges in Lebanon: Cumberland University and Genesis Career College. Cumberland University has a long history in Lebanon, dating back to 1842, and features top sports teams and a highly esteemed liberal arts program.

Just outside of Lebanon in the greater Nashville area are more than seven other colleges. The most popular of which are: Middle Tennessee State University which has almost 20,000 students currently enrolled, Belmont University, and Vanderbilt University both of which feature rich histories and exceptional educations.

CITY DESCRIPTION


MARKETANALYSIS

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NASHVILLE AMENITIES

OverviewNashville, Tennessee or Music City, USA is home to the Country Music Hall of Fame and an ever-growing downtown metro. It offers a diverse array of experiences with those who live within its city limits and the strong tourist population, from Tennessee Titans football games to a Willie Nelson concert at Ryman Auditorium. The “Athens of the South” is a fast growing and vibrant capital city which offers rich music, culinary, and historic culture.

Sports- Tennessee Titans (NFL)- Vanderbilt Commodores (NCAA)- Nashville Predators (NHL)- Nashville Sound (AAA Baseball)- Franklin American Mortgage Music City Bowl

Theatre & Performance- Schermerhorn Symnphony Center- Ryman Auditorium- Grand Ole Opry

Dowtown Nightlife- Lower Broadway- The Station Inn- Tootsie’s Orchid Lounge- Second Fiddle- Legends Corner- “Honky Tonk Highway”

Festivals & Special Events- Bonnaroo Music & Arts Festival- Iroquois Steeplechase- Nashville Film Festival- Oktoberfest- Music City Festival & BBQ Championship

Shopping- Music City Marketplace- Opry Mills- The Mall at Green Hills- Neighborhoods: 12th South, SOBRO, The Gulch

Attractions- Country Music Hall of Fame- The Johnny Cash Museum- Cheekwood Botanical Garden and Museum of Art- Nashville Corvette Museum- The Parthenon- Nashville Zoo at Grassmere

Historical Sites- Andrew Jackon’s Hermitage- Belle Meade Plantation- Belmont Mansion- Fontanel Mansion- RCA Studio B

MARKETANALYSIS

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Commuting & AccessiblityIn keeping with the most populous city in Wilson County, Lebanon has a very well planned road system. Lebanon has direct access to three key interstates, I-40, I-24, and I-65, as well as to State Route 840. Congestion is minimized because of this robust road system.

The average trave time to work within Lebanon is a little over ten minutes. The most prevalent jobs are those in the manufacturing industry. For those commuting to the greater Nashville area, travel time is approximately thirty minutes. By comparing the commute time from our building site to the “Travel Time to Work” chart, we infer that citizens will be accepting of our commute.

TRANSPORTATION

Rank Employer # of Employees Commute time 1 Cracker Barrel 820 10 minutes2 Performance Food Group 646 7 minutes3 CEVA Logistics 625 12 minutes 4 TRW Automotive Comm'l Steering Systems 500 5 minutes 5 Genco ATC 500 10 minutes 6 Manheim Nashville 425 13 minutes 7 Lochinvar, LLC 425 12 minutes 8 Jones Bros., Inc. 400 16 minutes 9 Ozburn Hessey Logistics 380 15 minutes

10 L&W Engineering Co. 367 14 minutes

Largest Current Employers


MARKETANALYSIS

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Music City Star RailThe Music City Star Rail is a commuter rail service built in 2006 that runs from Lebanon to Nashville. Along the way it makes six stops in: Lebanon, Martha, Mt. Juliet, Hermitage, Donelson, and Riverfront in Nashville. The rail service utilizes track from Nashville and Eastern Railroad and rides on only one track. The track is roughly 32 miles long. Currently there is only one line operating, but expansion plans in the near future include as many as six more lines – with one line already under construction. To reduce costs, all lines will use existing CSX Transportation railroads.

The planned seven lines will meet in central Nashville in a star formation, hence the name of the system, which also alludes to the city’s many country music stars. The Music City Star Rail is the first passenger train service since 1979 and as of 2012 had upwards of 261,500 riders in total, with daily ridership at around 1,225 people. In addition to providing transportation for people commuting to jobs, the Music City Star Rail also offers transportation for sports fans in the Tennessee Area. According to the website for Music City Star Rail, “The Game-Day Express special event train operates for Tennessee NFL regular season home games,” with service originating in

MARKETANALYSIS

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Future GrowthWilson County is expected to grow by more than 40% percent in the next 15 years, and is ranked as the 5th fastest growing county in the state. In an attempt to forecast future demand growth for housing, population statistics were gathered from University of Tennessee Knoxville’s state data center. Population data from 2014-2030 was sorted to identify the counties with the highest anticipated growth over the 15 years. Much of the anticipated growth is due to the manufacturing industry. Several large scale corporations, such as Under Armor, Starbucks, CEVA Logistics and Hollister, are planning to build large distribution/logistic centers in Wilson County in the next five years. According to local news publications, the Under Armor Factory is expected to bring more than 1,500 jobs to Wilson County. An additional 1,100 full time positions will be needed to staff the Starbucks, CEVA, and Hollister logistic centers. From the manufacturing sector alone, more than 2,600 jobs will be brought to Wilson County over the next five years. Other factors contributing to the growth projection include low cost of doing business, superior logistic location, and higher level education institutions.

HOUSING MARKET


MARKETANALYSIS

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Townhome Market AnalysisSince the recent economic recession of 2008, the single family housing market has experienced a strong recovery. Builder confidence is on the rise, as can be seen by the 319 building permits pulled in 2013, compared to only 146 permits pulled in 2010. CPS Builders is confident that these metrics will continue their upward trend throughout the duration of our project.

The average listing price for town homes in Lebanon, Tennessee as of December 10, 2014 was $180,870. Townhomes in Lebanon, Tennessee are roughly priced middle of the road when compared to its neighboring cities. Townhomes make 2.1% of all Wilson County property types. CPS Builders seeks to take advantage of this small untapped market by providing a high quality product in a desirable new community.

MARKETANALYSIS

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Multifamily Market AnalysisDue to the increase in job growth for the city of Lebanon, the county of Wilson, and the greater Nashville area we see a correlated increase in demand for multifamily units. Currently the economic environment of the U.S. is more inclined to rent versus own as depicted by the decrease in condos and the increase in rented apartments completed since the recession. Overall this picture justifies the construction of rented apartments versus condos for sale. Adding to this trend towards an increase demand in multifamily units is an increase in the younger population. Nashville has seen an increase of 2% or 7,200 residents in the population ages 20 to 34 in the last year alone. This trend can be seen in the surrounding counties to a slightly lesser degree but with the overall trend still being positive for an increase in demand for multifamily units.

HOUSING MARKET


MARKETANALYSIS

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If we take population growth and job creation growth as indicators for demand we can see a general increase in demand for multifamily units for the city of Lebanon, Wilson County, and the greater Nashville area. In the table to the right, the growth in jobs was divided by seven as a general rule of thumb for determining demand of units. Similarly, the growth in population was multiplied by 35% to yield a rough estimate for the demand as well. From this technique we can see that the growth in Nashville in the current year has given a demand for roughly 3,600 units, while the demand for Wilson County and Lebanon is seen at around 800 and 200 annually from 2015 to 2020 and 733 and 178 annually over the next ten years. Keeping in mind that this 35% of the population is a conservative estimate given the current economic environment, which tends toward rentable space versus owned.

Furthermore, we have seen an increase in the amount of rent offered for apartments as well as the selling price of apartments to investors. This suggests an increase in demand as well. During the past year the average rent for the area has gone up by 5.9% compared to growth of 4.3% last year. As far as the average selling price of each apartment, the price has increased by 6% annually. Taken all together these indicators admit of a growing demand and thus a profitable market for multifamily development.

MARKETANALYSIS COMPETITION ANALYSIS

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The Falls @109 is a gated one to three bedroom apartment community offering four distinct floor plans, ranging from 756 to 1,321 square feet. Each unit offers a full kitchen with a washer and dryer and private patio/balcony area. Community amenities include a pool with a cabana area complete with grills, bar, and television, 24-hour health and fitness facility, a fenced dog park, detached garages with remote, and on-site storage. As advertised on their website, “it creates the type of privacy you want in a home, yet gives you the access you need…to several different areas in and around Nashville.” The Falls is located off of Highway 109 on Falls Blvd. in Lebanon, approximately 6.1 miles from our proposed development site.

The Falls @ 109

Village at Five Oaks

Hamilton StationHamilton Station is an apartment style community with “cutting edge amenities, meticulously-groomed grounds and a dedicated staff (who) contributes to a higher standard of living.” There are 18 different floor plans ranging from one bedroom and one bath to three bedroom and two bath living accommodations, providing 833 to 1,506 square feet of living space. Amenities include a business and fitness center, a pool, washers and dryers in the units, and a mix of balconies and sunrooms. The community is adjacent to the approved Music City Star rail service. Hamilton Station is located at 100 Hamilton Station Crossing in Lebanon, directly next to our proposed development.

Our development’s current competition mix is made up of The Falls@109, Hamilton Station, StoneBridge Villas, and The Villas at Five Oaks; two apartment style and townhome communities. These are the closest competitive developments to Hamilton Crossings based on the parameters of rent and sale price, total rentable square footage, and offered competitive amenities. Below is a short description of each development community, its location, and its amenities.

Current Competition


MARKETANALYSIS

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The Villas StoneBridgeStoneBridge is a townhome development by Goodall Homes which is “one of the fastest growing and most respected home builders in Tennessee.” StoneBridge offers two model types: The Arlington and The Georgetown, in the StoneBridge community. Each model type has two bedrooms, two baths and a two car garage with optional storage space and additional bed and bath. Villas range from 1,868 to 2,941 square feet. Amenities include a 8,800 square foot Clubhouse with billiards room, a junior Olympic size pool, fitness center and walking trials. StoneBridge is located 6.6 miles from our proposed development.

Village at Five Oaks

The Villas at Five OaksThe Villas at Five Oaks is a townhome community within the Five Oaks Golf and Country Club Development. It offers “several amenities such as golf-course lots with fairway views and spacious floor plans” and is located within minutes of the Providence Marketplace and Downtown Nashville. The Villas at Five Oaks is an upscale luxurious development featuring French style architecture. Units offered have two to four bedrooms, ranging from 2,000 to 3,000 square feet and several upgrade options. The Villas are located adjacent to the Five Oaks Gold and Country Club on Five Oaks Blvd, which is 1.8 miles from our development.

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Project Vision

Road Design

Grading

Site Map

Land Development Estimate

SWOT

Phasing

Schedule

Street SectionsVegetation

Existing TopographyGrading PlanDrainage SinkholesSoil ConsolidationFinish Grading

Final Site MapOpen Space DesignationsParking Designation

Permitting and FeesUtilitiesEstimate

LAND DEVELOPMENT

LANDDEVELOPMENT

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PROJECT VISION

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Open space offers a cushion between residences and the rail line.

Apartments are located along main streets to provide a definitive street-scape.

Townhomes are located off of the two main streets, allowing privacy while maintaining proximity.

Commercial units are conveniently located near the rail station. These buildings will lso be than the others, drawing people to the center of the community.


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TRANSIT ORIENTED

COMPREHENSIVE

DIVERSITY

DESIRABLE

Our VisionThe vision for Hamilton Crossings stemmed from a comprehensive design strategy that incorporated mixed-use buildings, apartments, and townhomes. From the beginning, the approach involved incorporation of the maximum developeable area so as to create a unification in design throughout the development. Over this large and concentrated site, formal diversity and multiple building types are necessary. Higher density structures are utilized near the center of the site and the transit station, with lower density units such as townhomes located further from the development’s center. This center becomes the hub of activity for the whole area, not just the development of Hamilton Crossings. To take advantage of the rail station nearly on-site rail station, transit oriented strategies that promote walking and biking must be integrated into the design. Vertical development columns of different building types, bisected by pedestrian green paths, lead users through the retail plazas to the rail station. These different building types also offer diversity both in aesthetics and to residents. This diverse and complex environment will draw people from the surrounding growing residential areas, creating a suburban center, all conveniently located in the direct vicinity of a rail station.

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SITE MAP

Site BoundaryStreet OutlinesTownhomesMixed Use / ApartmentsCommunity Center

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2014 NAHB Site MapLebanon, Tennessee

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2014 NAHB Site MapLebanon, Tennessee N 1:256 Scale

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An Ideal Mix

Community Spaces Parking Designation

The final site map includes a combination of townhomes, apartments, commercial space, and a community event center, with the highest density buildings located adjacent to the rail station. These larger buildings form plazas that serve as perfect gathering spaces for the retail spaces. With the mix of townhomes and apartments, the development achieves the desired diversities in building types and densities. Even with widened streets to accomodate for street parking

and protected bike-ways, our site achieves a unit/acre density over 21. This density promotes activity without creating an urban environment. All units also have access to open space without having to cross a vehicular street. Dedication to diversity resulted in both townhomes and apartments located throughout the development. A community event center in the middle of the site, complete with outdoor sports courts, unifies site.

Open Space BBQ Area Sport Courts Retail Plaza Pedestrian Walkway Community Center

Per zoning requirements, the number of on site units calls for nearly 1,400 parking spaces. Our site design includes street parking (not shown in diagram above), surface lots, two podium parking structures, and on site parking, thus meeting this demand.


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LANDDEVELOPMENT STREET DESIGN

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Lirio Boulevard Street-scape

Palm Avenue Street-scape

Viburna Street Street-scape

Street DesignStreet Design is a crucial step in any development project. Accordingly each mode of transportation incorporated in the development must be accounted for. Hamilton Crossings’ TOD strategy places equal importance on each transportation mode. Vehicular lane widths range from 9-12 feet thereby reducing speeds within pedestrian populated areas. A bus stop located on the main boulevard accommodates the entire community for the best access to the station. Bicycle lanes widths range from 4-5 feet to allow for safe, comfortable bicycle travel. Additionally, bicycle lanes are separated from every vehicular circulation. Vehicular parking or planters create a buffer from bicycle lanes to vehicular lanes ensuring safety for both transportation modes. Sidewalk widths range from 8-11 feet to accommodate pedestrian traffic, with planters, bicycle lanes, and vehicular parking lanes to buffer vehicular traffic from pedestrian walkways. Each mode of transportation is independent from the others throughout the site except at the exchange points, such as crosswalks or intersections. Otherwise, each mode of transportation flows freely from another ensuring efficient, safe travel, which is the main feature of a transit oriented development.


LANDDEVELOPMENT

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VegetationHamilton Crossings will include several different species of vegetation. The three major streets (Lirio Bouelvard, Palm Avenue, and Viburna Street) will feature Liriodendron Tulipifera (Tulip Tree) distributed throughout the sidewalks and medians. The minor pedestrian pathways and open space will feature Acer Palmatum (Japanese Maple) and an assortment of shrubbery, including Buxus Sempervirens (European Box), Ilex Glabra (Appalachian Tea), andViburnum Rhytidophyllum (Leatherleaf Viburnum).

Liriodendron Tulipifera

LANDDEVELOPMENT

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GRADING

Existing TopographyDuring our site visit, we noticed the 40 acre site has a relatively similar grade. Most of the site is flat with the exception of a small hill on the west side of the property. This natural topography will aid our utilities and drainage plan for the project.

Grading PlanWe tailored our site-map to reduce the amount of earthwork needed to produce an efficient community. With the assistance of a program called DProfiler by Beck Technologies, we were able to pull the topography map and a Google Image together. Using this program, we sculpted the finish grade to reduce the amount of required earthwork and ended up with a site that is balanced.


LANDDEVELOPMENT

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DRAINAGE CONSIDERATION

Soil ConsolidationAfter a careful examination of the soils report, our team has decided to strip and stockpile the top foot of soil. Consolidation makes the required compaction level obtainable. We plan on doing this after the rough grading to make it as effective as possible.

Drainage and SinkholesTo the right is the drainage plan for our site (green is high, blue is low). Lebanon, TN is a wet climate, averaging more than 50” of precipitation each year, about 16” more than the national average. Having an effictive drainage plan is, therefore, crucial to our long-term success, as effective drainage will prevent sinkholes. Our drainage plan gets water off the site quickly, preventing puddles and sinkholes.

The best way to avoid sinkhole/karst remediation is to avoid them altogether. Our site plan takes this into account, and does not call for building on either of the two known sinkholes, both of which are west of our site. Also, the area designated as a “dry pond” in the soils report appears to have already been mitigated during the construction of the Hamilton Station apartments; and it does not appear to be an issue going forward. We will discuss this issue further in the Risk Analysis section.

Finish GradingWe will be finishing the final grades as we build the site out. We have built time into the schedule to accomidate for this. This will also reduce the financial impact of grading initially, spreading it out.

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PERMITS, FEES, AND UTILITIES

Development Fees and PermitsBuilding Permit: Residential = $.60/sf Commercial = $.30/sf (<10,000sf) $.20/sf (10k-50k sf)Building Plan Review Fee = 1/2 of building permit costSite Plan Submittal: Residential = $75 + $10/unit Commercial = $75 + amount based off of sfStormwater Plan Review:Residential = $143 + $35.75/Lot Commercial = $.10/sf ($200k max) + $100/acreCPS Builders approached the Stormwater Plan Review differently than the Building Permits. The townhomes still use the residential designation for the Stormwater Plan Review, with each townhome considered 1 lot. However, since apartments are not considered “lots,” we used the Commercial Stormwater Plan for the Apartment and Mixed-Use Buildings, because they are more similar to commercial buildings as far as stormwater is concerned. When estimating these permit costs, we divided the the entire site equally among all buildings.

Sign Permit = $10 + $.50/sf of sign areaPlumbing Permit = $10 + $2.50/water fixture + $5/sewer fixtureGrading Permit = $1072.50

All city fees were found on the City of Lebanon website. It is important to note that the City of Lebanon did not have Mixed-Use permits available, so assumptions were made where necessary. Also, all fees and permits were included in the land development or building estimates where necessary.

Utility FeesWater Line Final Inspection = $1.25/lfSanitary Sewer Final Inspection = $2.00/lfWater Plan Review = $300Sanitary Sewer Plan Revew = $300Water Tap = $3,650 (2” line) Water Connection Fee = $75Sewer Tap = $750 EachNatural Gas Tap = $125 Natural Gas Connection Fee = $75

We considered all connection fees to be on a per unit basis; meaning each townhome, apartment, and commercial unit were counted for connection fees. However, we only counted Tap fees on a per building basis, as attached units can share off of one line running to the building (why we chose 2” water line), so it is not necessary to tap the lines once for each unit.

Existing Utility Mains

New Utilities Mains


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LAND DEVELOPMENT ESTIMATE

Land Development EstimateQty. Unit Unit Rate Total

Earthwork $406,073Grading Permit 1 EA $1,072.50 $1,073Mobilization 1 EA $5,000.00 $5,000Clear & Grub 40 Acre $2,750.00 $110,000Earth Moving 25000 CY $2.00 $50,000Remove & Recompact 40 Acre $6,000.00 $240,000

Stormwater $1,251,367Silt Fence 7920 LF $1.35 $10,692Sand Bags 500 EA $1.75 $875Controlled Entrances 3 EA $3,050.00 $9,150Dust Control 174200 SF $0.75 $130,650Storm Drains 1 LS $1,100,000 $1,100,000

Water $513,9958" Water Main (PVC) 3353 LF $19.50 $65,3846" Water Main (PVC) 7120 LF $17.25 $122,8208" Gate Valves 62 EA $1,500.00 $93,000Connect to Existing 6 EA $2,000.00 $12,000Fire Hydrants 22 EA $2,200.00 $48,400Fire Service Ap./MU Building 22 EA $4,900.00 $107,800Backflow & Service for Aps. 22 EA $2,300.00 $50,600Plan Review 3 EA $300.00 $900Final Inspection 10473 LF $1.25 $13,091

Sanitary Sewer $350,3398" PVC Sewer Main 3118 LF $19.50 $60,8016" Sewer Lateral 4000 LF $16.50 $66,0004" Sewer Lateral 971 LF $10.00 $9,710Manholes 13 EA $2,500.00 $32,500Apartment/Townhome Tap 219 Unit $750.00 $164,250Plan Review 3 EA $300.00 $900Final Inspection 8089 LF $2.00 $16,178

Dry Utilities $397,188Electric 8107 LF $18.00 $145,926Phone/Internet 8107 LF $18.00 $145,926Natural Gas 3" Line 7524 LF $14.00 $105,336

Roads $1,118,351Paving 269318 SF $3.43 $923,761Parking Striping 2228 EA $10.80 $24,062Temp Road 62010 SF $2.75 $170,528

Sidewalks $550,231Sidewalk pavers 116328 SF $4.73 $550,231

Street Fixtures $1,668Stop Signs 6 EA $28.50 $171Speed Limit Signs 12 EA $22.50 $270Street Name Signs 6 EA $20.50 $123Crosswalk Signs 20 EA $20.00 $400U-Channel Stands 32 EA $22.00 $704

Landscaping $104,146CMU Planted Area 2500 SF $13.90 $34,750Fiberglass planted area 2000 SF $14.22 $28,440Light Weight Soil 167 CY $69.45 $11,580Sod 576000 SF $0.05 $29,376

4,693,357$ Description

LANDDEVELOPMENT

50

SWOT

S W

O T

trengths

hreatspportunities

eaknesses

INTER

NAL

EXTER

NAL

POSITIVE NEGATIVE

- Low land cost- Transit oriented design- Mixed-use zoning- Flexibility from module design- Green Initiatives

- Potential for sinkholes- Distance to urban center- Limited townhome variety

- Lack of multi-family housing- Area growth- On-site transit center (Music City Star Rail)

- Local competition- Increasing competition in future developments- Housing market dominated by single family detached homes


LANDDEVELOPMENT

51

PHASING

CPS Builders decided to break land development into three phases in order to spread out the cost of land development, without hindering the schedule.

LANDDEVELOPMENT

52

SCHEDULE

ID Task Name

1 Preconstruction Phase 1

2 Residential Building Permits

3 Commercial Building Permits

4 Residential Plan Submittal

5 Commercial Plan Submittal

6 Residential Plan Review

7 Commercial Plan Review

8 Grading Permit

9 Land Development Phase 1

10 Earthwork Phase 1

11 Mobilization & Install SWPPP

12 Clear and Grub

13 Earth Moving

14 Remove and Recompact

15 Underground Utilities Phase 1

16 Run Water Lines

17 Dry Utilities

18 Sanitary Sewer

19 Storm Water Drains

20 Civil Phase 1

21 Sidewalks

22 Roads

23 Street Fixtures





Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov2016 2017 2018

Task

Split

Milestone

Summary

Project Summary

External Tasks

External Milestone

Inactive Task

Inactive Milestone

Inactive Summary

Manual Task

Duration‐only

Manual Summary Rollup

Manual Summary

Start‐only

Finish‐only

Deadline

Progress

Manual Progress

Page 1

Project: Land Development SchedDate: Mon 12/22/14


LANDDEVELOPMENT

53

ID Task Name


2 Residential Building Permits

3 Commercial Building Permits

4 Residential Plan Submittal

5 Commercial Plan Submittal

6 Residential Plan Review

7 Commercial Plan Review

8 Grading Permit


10 Earthwork Phase 1

11 Mobilization & Install SWPPP

12 Clear and Grub

13 Earth Moving

14 Remove and Recompact

15 Underground Utilities Phase 1

16 Run Water Lines

17 Dry Utilities

18 Sanitary Sewer

19 Storm Water Drains

20 Civil Phase 1

21 Sidewalks

22 Roads

23 Street Fixtures





Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov2016 2017 2018

Task

Split

Milestone

Summary

Project Summary

External Tasks

External Milestone

Inactive Task

Inactive Milestone

Inactive Summary

Manual Task

Duration‐only


Manual Summary

Start‐only

Finish‐only

Deadline

Progress

Manual Progress

Page 1

Project: Land Development SchedDate: Mon 12/22/14

54

Building Types

Apartments

Townhomes

Mixed Use - Podium

Unit Totals

Value Engineering

Commmercial Option

Building MassingBuilding Locations

Floor PlansBuilding LayoutThe “Blocks” DefinedIn Depth Floor Plan/EstimateEstimate SummariesApartment Upgrades

4 Unit Floor Plan6 Unit Floor PlanTownhome EstimationTownhome OptionsDetailed Estimate

Massing Diagram/ElevationUtilizing Apartment BlocksPodium Estimate

Massing DiagramCommercial Floor PlanCommercial Option Estimate

PRODUCT DESCRIPTION

PRODUCTDESCRIPTION BUILDING TYPES

“T”

“M” “P”

“A”

56

Massing Diagrams

Mixed-use buildings, have commercial space on the ground floor, and apartments on the upper floors. Designated MA-MF

Podium structures (also mixed use) that stack the “A” apartment blocks on top of a ground floor that consists of retail and additional parking.

Designated PA-PE

Townhome units, arranged in either 4 or 6 unit blocks. T4 designates a block made up of 4 units, while T6 designates a 6 unit block. Each block consists of 2 bedrooms for the interior units and 3 bedrooms on the end units.

Apartment units, with a portion of the bottom

floor utilized for parking. Designated AA-AF, depending

on what type of apartment units are contained within it.

Townhomes Apartments

Retail Parking

1

1

2

2

3

3 4

4

Simplifying A Complex SiteIn order to simplify a large site with a multitude of building types, a modular system of development was implemented to simplify both design and construction. Each apartment or mixed-use block has a designated number of 1, 2, or 3 bedroom apartments. Townhome buildings are composed of either four or six 2 and 3 bedroom residences.


PRODUCTDESCRIPTIONBUILDING LOCATIONS

57


Key


Current 11/22/2014

T4

T4

T4T4

T4

T4

T4

T4

T4

T4

T4 T4

T4T4T4T4

T4

T4 T4

T4T4

T4 T4

T4T4

T4T4

AF

AE

PE

PCAB

AC

AA

AA

PC PC

MCPA

PA MA

MB

MD

MCMD

AA

ABAC

AD

AD

MA

AA

AB

PAPE PE

PE

ME

AE

AE

AE AEAEAE

AB

AB

ABAB

ABAD AD

AC

AD

AA

AC

PF

PF PF

PF MF

MFMFAFAF

T6

T6

T6 T6

T6

T6

T6T6

T6T6

PRODUCTDESCRIPTION

58

TOWNHOMES - 4 UNIT

First Floor Plan

Elevation From Street

Second Floor Plan

Dining

LivingKitchen

Garage Garage

Living

Kitchen

Entry

Bedroom2

PowderPowder

Dining

Bedroom3

Master Bedroom

Entry

Laundry

Master Bedroom

WIC WIC

WIC

Laundry

Bath

Master Bath

Master Bath

Den

Den

Bedroom2

Bathroom


PRODUCTDESCRIPTION

59

Dining

LivingKitchen

GarageGarage

Living

Kitchen

Entry

Bedroom2

PowderPowder

Dining

Bedroom3

Master Bedroom

Entry

Laundry

Master Bedroom

WIC

WIC

WICLaundry

Bath

Master Bath

Master Bath

DenDen

Bedroom2

Bathroom

Elevation from Open Space

First Floor Plan

Second Floor Plan

TOWNHOME - 6 UNIT

PRODUCTDESCRIPTION

60

TOWNHOME - ESTIMATE

7362 SFDescription Total

Permit & Fees $1.45 /SF $10,653Earthwork & Foundations $5.26 /SF $38,718Framing $10.48 /SF $77,170Exterior Finish $11.17 /SF $82,251Mechanical $2.03 /SF $14,931Electrical $3.11 /SF $22,909Plumbing $7.77 /SF $57,184Insulation $1.16 /SF $8,535Interior Finishes $10.21 /SF $75,193Appliances $1.50 /SF $11,047Landscaping $3.60 /SF $26,527Total $57.74 /SF $425,118

Townhome - 4 UnitUnit Rate

Townhome Estimate Explanation

3 Bedroom Plan Highlights 2 Bedroom Plan Highlights

CPS Builders estimated the townhomes, along with all other building types, through the use of Planswift, taking off the quantities of the buildings. We then used our unit rates to calculate the cost. Although our cost is low, we believe we can build with these prices from previous experience, efficient design, and through the use of value engineering.

-3 bed / 2.5 bath- 1905 sf- $230,000- Lofted ceiling above dining area-2 car garage-End units, granting more natural light-Direct accessiblity to open space

-2 bed / 2.5 bath- 1776 sf- $215,000- Double master bedroom layout- 1 car garage- Fewer exterior walls = greater energy savings- Direct accessibility to open space


PRODUCTDESCRIPTION

61

CPS Builders offers a range of options for the consumer to choose from to make each home individualized and, well… home. Options include stainless steel Whirlpool appliances, Silestone Quartz countertop, and walk-in shower with solid surface walls. Each category contains a different amount of options with a small range of cost difference. We did this to allow for a better take rate of all options. This approach helps consumers afford the options they love.

Hamilton Crossings - Townhome OptionsCategory Description Price

Laundry

Option1 Whirlpool Washer & Dryer Package $552.00

Option2 Maytag Washer & Dryer Package $730.00

Appliances

Option1 GE Stainless Steel Appliance Package $920.00

Option2 Whirlpool Black/White Appliance Package $936.00

Option3 Whirlpool Stainless Steel Appliance Package $1,321.00

Countertops

Option1 Silestone Quartz Countertop (Blanco City, Grey Expo, Rosa Grey) $567.00

Option2 Stone Mark Grante (Amarello Ornamental, Coffee Brown, Moon Whites) $851.00

Kitcehn Cabinets

Option1 Kitchen Cabinet Upgrade, (Medium Oak) $505.00

Option2 Kitchen Cabinet Upgrade, (Cognac, Harvest, Java) $815.00

Bathroom Cabinets

Option1 Bathroom Cabinet Upgrade, (Medium Oak) $213.00

Option2 Bathroom Cabinet Upgrade, (Cognac, Harvest, Java) $283.00

Cabinet Hardware

Option1 Cabinet knob upgrade (Satin, Black) $32.00

Option2 Cabinet handles upgrade (Satin, Bronze, Chrome) $43.00

Bamboo Flooring

Option1 Bamboo Mediium Wood Flooring 5"x39" (Café, Natural) $577.00

Option2 Bamboo Dark Wood Flooring 5"x39" (Brazilian Cherry, Tigerwood) $950.00

Carpet

Option1 Carpet Color Upgrade (Red River, Hanus Bay, Gateway) $254.00

Option2 Carpet Color Upgrade (Cathedral Rock, Route 66, Rincon Mountain") $411.00

Master bath Solid Surface Shower

Option1 Solid Surface Shower w/Seat (Crystal Cream, Crystal White) $2,567.00

Option2 Solid Surface Shower w/Seat (Grey Glass, Ivory Glass, Caramel Glass) $2,863.00

Second bath Solid Surface Shower

Option1 Solid Surface Shower (Crystal Cream, Crystal White) $1,903.00

Option2 Solid Surface Shower (Grey Glass, Ivory Glass, Caramel Glass) $2,224.00

TOWNHOME OPTIONS

Hamilton Crossings Options

PRODUCTDESCRIPTION

62

DETAILED TOWNHOME ESTIMATE

Townhome - 4 UnitQty. Unit Unit Rate Total

Permits & Fees 7362 SF $1.45 $10,653Building Permit 7362 SF $0.60 $4,417Building Plan Review Fee 7362 SF $0.30 $2,209Stormwater Plan Review 4 EA $71.50 $286Stormwater Inspection 4 EA $214.00 $856Plumbing Permit 44 EA $5.00 $220Site Plan Submittal 4 EA $10.00 $115Water Conncetion Fee 4 EA $75.00 $300Water Tap 4 EA $250.00 $1,000Sewer Tap 1 EA $750.00 $750Natural Gas Connection Fee 4 EA $75.00 $300Natural Gas Tap 1 EA $200.00 $200

Earthwork & Foundation 7362 SF $5.26 $38,718Survey 4 EA $2,000.00 $8,000Finish Excavation 4030 SF $1.05 $4,2328" x 16" Footing 506 LF $17.54 $8,875Gravel 4030 SF $0.98 $3,949Vapor Barrier 4030 SF $0.24 $9678" Post-Tension Slab 4030 SF $3.15 $12,695

Framing 7362 SF $10.48 $77,170.5"x1' Anchor Bolts @ 32" O.C. 356 LF $1.21 $4312x6 @ 24" O.C. 1754 LF $9.86 $17,2942x6 Metal Termite Shield 356 LF $0.78 $278Subfloor 3534 SF $2.45 $8,6587/16" OSB Sheathing Ext. Wall 6190 SF $2.24 $13,866House Wrap 6190 SF $0.61 $3,776Floor TJI Joists @ 24" O.C. 3534 SF $3.97 $14,030Roof Truss 54' 4/12 @ 24" O.C. 4515 SF $2.54 $11,468Radiant Barrier 4515 SF $1.55 $6,998Drip Edge 422 LF $0.88 $371

Exterior Finishes 7362 SF $11.17 $82,251Door - Entry 4 EA $231.37 $925Door - Deck 4 EA $825.44 $3,302Door - (Garage to House) 4 EA $121.16 $485Garage Door (16'x7') 2 EA $484.12 $968Garage Door (8'x7') 2 EA $273.80 $548Exterior Drywall 204 SF $0.61 $12448"x48" 8 EA $288.35 $2,30736"x48" 10 EA $370.29 $3,70336"x72" 2 EA $410.50 $82124"x24" 16 EA $320.90 $5,13424"x18" 4 EA $297.85 $1,1914" O.G. Gutters 172 LF $3.34 $574Downspouts 108 LF $2.16 $234Brick Veneer 950 SF $11.60 $11,020Stone Veneer 600 SF $12.82 $7,692Lap Siding 4640 SF $4.95 $22,968

425,118$Description


PRODUCTDESCRIPTION

63

Paint and Primer SF $0.23 $0Fascia 340 LF $1.73 $588Metal Roofing 4515 SF $1.90 $8,579Roof Felt 4515 SF $2.17 $9,783Flashing 340 LF $3.84 $1,305

Mechanical 7362 SF $2.03 $14,931Natural Gas Piping 274 LF $2.11 $578Thermostat control 4 EA $91.98 $368Ducts 670 LF $1.93 $1,293Heat Pump/Air Handler 4 EA $1,777.39 $7,110Whole Home Dehumidifier 1 EA $1,308.07 $1,308Registers 24 EA $10.54 $253Return Air Grille 8 EA $11.88 $95Radon Fan/Actvie System 4 EA $981.45 $3,926

Electrical 7362 SF $3.11 $22,909Wire 7837 LF $0.87 $6,818Ceiling Fan 10 EA $61.43 $614Bathroom Exhaust Fan w/ light 8 EA $105.02 $840Switch - Light w/plate 76 EA $19.62 $1,491GFI Outlet 52 EA $26.42 $1,374Standard Duplex Outlet 120 EA $14.32 $1,718AFCI Outlet 70 EA $41.29 $2,891Smoke Detectors 22 EA $8.83 $194Carbon Monoxide Alarm 4 EA $35.14 $141Porch Light 4 EA $21.19 $85Can Lights 122 EA $38.59 $4,708Fluorescent Garage Lights 6 EA $23.40 $140Phone Outlet 8 EA $3.46 $28TV Outlet 18 EA $3.49 $63Ethernet Outlet 18 EA $6.53 $118220V outlet 12 EA $26.98 $324Outlet - Garage Door 4 EA $26.98 $108Circuit Breaker Box 4 EA $190.06 $760Garage Door Opener 4 EA $110.84 $443Door Bell 4 EA $12.56 $50

Plumbing 7362 SF $7.77 $57,184Bathroom Faucet 4 EA $65.73 $263Toilet 12 EA $201.00 $2,412Hot Water Heater 4 EA $882.12 $3,528Kitchen Sink/Faucet 4 EA $225.21 $901Powder Room Pedastal 4 EA $123.91 $496Second Bath Sink/Faucet 4 EA $136.93 $548Master Bath Sink/Faucet 8 EA $136.93 $1,095Exterior Water Spigot 4 EA $12.55 $50Bathtub/Shower 2 EA $863.80 $1,728Bathtub/Shower Faucet 2 EA $37.14 $74Shower Stall Kit (Master) 4 EA $334.24 $1,337Shower Stall kit (3') 2 EA $448.04 $896Shower Faucet 6 EA $33.47 $2011/2" PEX water line piping 5850 LF $6.83 $39,956PEX Manifold 32 Port 4 EA $382.24 $1,529

1/2" Water Line 140 LF $5.57 $780CPVC Fire Sprinkler Pipe 584 LF $1.69 $987Recessed 1/2" Fire Sprinkler 64 EA $5.90 $378Ice Maker Outlet 1 EA $26.00 $26

Insulation 7362 SF $1.16 $8,535R-19 Insulation 10202 SF $0.72 $7,345R-38 Insulation (Blown-In) 1830 SF $0.65 $1,190

Interior Finishes 7362 SF $10.21 $75,1931/2" Drywall 12358 SF $0.54 $6,6735/8" Fire Resistant Drywall 11026 SF $0.63 $6,946Greenboard 628 SF $0.68 $427Baseboard 1834 LF $1.08 $1,985Door - Interior (Pre Hung) 18 EA $185.95 $3,347Closet Door (Bi Fold) 6 EA $248.00 $1,488Pocket Door 14 EA $138.67 $1,941Closet Shelf 18 EA $36.51 $657Stairs 302 SF $49.14 $14,840Paint and Primer 22322 SF $0.19 $4,241Paint Doors 46 EA $3.36 $155Paint Baseboard 1834 LF $0.58 $1,064Base Cabinets 68 LF $52.43 $3,565Upper Cabinets 42 LF $54.56 $2,292Bath Cabinets (Base) 36 LF $59.04 $2,125Countertop (Granite) 172 SF $46.06 $7,922Medicine Cabinet 8 EA $32.09 $257Mirror 16 EA $20.26 $324Toilet Paper Holder 12 EA $4.86 $58Towel Rack 8 EA $10.34 $83Carpet 2206 SF $1.96 $4,324Carpet Padding 2206 SF $0.84 $1,853Flooring (Bamboo) 2764 SF $2.42 $6,689Bamboo Flr. Urethane Adhesive 262 SF $1.05 $276Final Clean 4 EA $415.00 $1,660

Appliances 7362 SF $1.50 $11,047Microwave/Hood 4 EA $187.66 $751Refrigerator 4 EA $483.12 $1,932Dishwasher 4 EA $367.29 $1,469Range/Oven 4 EA $455.72 $1,823Washer 4 EA $489.82 $1,959Dryer 4 EA $675.15 $2,701Dryer Vent 4 EA $11.37 $45Garbage Disposal 4 EA $91.65 $367

Landscaping 7362 SF $3.60 $26,527Driveway 960 SF $15.29 $14,678Sod (including installation) 2700 SF $0.56 $1,512PVC DWV 1 1/4" 340 LF $5.84 $1,986Sprinklers 24 EA $9.38 $225Composite Deck 893 SF $9.10 $8,126

PRODUCTDESCRIPTION

64

One Bedroom / One Bath Two Bedroom / Two Bath

APARTMENTS - FLOOR PLANS

Floor Plan 1A - 690 sf - $870/mo Floor Plan 2A - 950 sf - $1000/mo

Floor Plan 1B - 750sf - $900/mo Floor Plan 2B - 1000 sf - $1100/mo

Floor Plan 1C - 750 sf - $930/mo Floor Plan 2C - 935 sf - $1050/mo

BedroomStudio

Bedroom

Bedroom

Bedroom1

Bedroom1

Bedroom1

Master Bedroom

Master Bedroom

Master Bedroom

WIC

WIC

WIC

WIC

WIC

Laundry

Laundry

Laundry

Laundry

Laundry

Laundry

Bath

Bath

Bath

Bath

Bath

Kitchen

Kitchen

Kitchen

Kitchen

Kitchen

Kitchen

Patio Patio

Patio

Master Bath

Master Bath

Living / Dining Living /

Dining

Living / Dining

Living / DiningLiving /

Dining

Living / Dining

Bath


PRODUCTDESCRIPTION

65

Three Bedroom / Two Bath

Highlights - All Units-Accessibility to open space

-Washer/Dryer included

-Patio option available for at least one option of each number of bedrooms

Floor Plan 3A - 1380 sf - $1200/mo

Floor Plan 3B - 1500 sf - $1300/mo

Floor Plan 3C - 1500 sf - $1370/mo

Bedroom1

Bedroom1

Bedroom1

Bedroom2

Bedroom2

Bedroom2

Master Bedroom

Master Bedroom

Master Bedroom

WIC

WIC

WIC

Laundry

Laundry

LaundryStorage

Bath

Bath

Bath

Kitchen

Kitchen

Kitchen

PantryPatio

Patio

Master Bath

Master Bath

Master Bath

Living / Dining

Living / Dining

Living / Dining

PRODUCTDESCRIPTION

66

APARTMENT BUILDING LAYOUT

Strategic InterchangeabilityThe apartments were strategically designed so that when grouped together with similar unit types, they all form 120’x25’ modules. These 120’x25’ modules are then combined to form apartment “blocks”. These blocks create a sense of uniformity and unification of design throughout the site, while making the estimation and planning processes easier. Rather than building a multitude of individual buildings to achieve diversity, these interchangeable blocks can be distributed and still remain easily quantifiable. With adding this element of simplicity, the commutable nature of the 120’ modules with one another gives each building great potential for diversity when placed throughout the site.

1 Bedroom Unit 30’x25’

2 Bedroom Unit 40’x25’

3 Bedroom Unit60’x25’

120’

120’

120’

120’


PRODUCTDESCRIPTION

67

APARTMENT “BLOCKS”

The Apartment “Block” DefinedEach 3 story apartment block combines several 120’ modules into a cohesive building. Two of the 120’ sections are bisected by a circulation space (shown in grey in the diagram), with circulation towers on either side. These modules are placed with discretion to take environmental factors into consideration. Units with patios are placed on southern and eastern facades, while northern and southern facades are more closed. The rear half of the first floor is reserved for parking (seen in black in the diagram to the right).

These blocks can then be combined throughout the site to form larger structures. Due to the interchangeability of the blocks, the buildings maintain diversity in elevation as well as diversity in unit type.

The options shown in the next few pages are not the only options. If future conditions call for different types of units, the blocks can be modified using the interchangeability to meet the future needs of the site and client.

First Floor Plan

Second Floor Plan

Third Floor Plan

Circulation

Circulation

Circulation

Parking

Residences

Residences

Residences

Residences

Residences

PRODUCTDESCRIPTION

68

Block A Elevation

Block A First Floor Plan

Block A Second and Third Floor Plan

Circulation Hallway

Circulation HallwayConnection to next block

Connection to next block

Parking in Rear

Mai

l

APARTMENT BLOCK A - IN DEPTH


PRODUCTDESCRIPTION

69

Apartment A Detailed EstimateThis is an example of one of the detailed estimates we used to comprise our unit rates.

Qty. Unit Unit Rate Total

Permits & Fees 17550 SF $1.58 $27,706Building Permit 20170 SF $0.60 $12,102Building Plan Review Fee 20170 SF $0.30 $6,051Stormwater Plan Review 1 EA $243.00 $243Stormwater Inspection 10800 SF $0.10 $1,080Site Plan Submittal 18 EA $10.00 $255Plumbing Permit (Water) 84 EA $2.50 $210Plumbing Permit (Sewer) 108 EA $5.00 $540Water Connection Fee 18 EA $75.00 $1,350Water Tap 1 EA $3,650.00 $3,650Sewer Tap 1 EA $750.00 $750Natural Gas Connection Fee 18 EA $75.00 $1,350Natural Gas Tap 1 EA $125.00 $125

Earthwork & Foundation 17550 SF $4.03 $70,747Excavation 7480 SF $0.52 $3,89016" x 24" Footing 620 LF $35.08 $21,750Gravel 7480 SF $0.98 $7,330Vapor Barrier 7480 SF $0.09 $6732' x 2' x 10' Concrete Column 7 EA $3,110.00 $21,7708" Post-Tension Slab 7480 SF $2.05 $15,334

Framing 17550 SF $13.02 $228,5261/2" x 12" Anchor Bolts @ 32" O.C. 620 LF $1.21 $7502x6 @ 24" O.C. Exterior Wall 840 LF $9.86 $8,2822x6 @ 24" O.C. Interior Wall 1508 LF $9.86 $14,8692x6 Metal Termite Shield 620 LF $0.78 $4847/16" OSB Sheathing Exterior Wall 8330 SF $2.24 $18,659Building Wrap 7031 SF $0.61 $4,289W10x22 Steel Beam 125 LF $27.35 $3,4192x4 @ 16" O.C. Interior Wall 902 LF $8.45 $7,622Floor TJI Joists @ 24" O.C. 14476 SF $3.97 $57,470Subfloor 14476 SF $2.45 $35,466TPO Roofing 7375 SF $4.95 $36,506Roof TJI Joists 7375 SF $3.97 $29,279Radiant Barrier 7375 SF $1.55 $11,431

Exterior Finishes 17550 SF $9.73 $170,810Door - Complex Entrance (Double) 1 EA $825.00 $825Door - Complex Entrance (Single) 0 EA $715.00 $0Door - Balcony 4 EA $825.44 $3,302Exterior Drywall 3078 SF $0.63 $1,93936"x48" Window 28 EA $370.29 $10,36860"x48" 8 EA $567.29 $4,53824"x36" 8 EA $347.29 $2,77830"x48" 4 EA $355.85 $1,423Brick Veneer 2770 SF $12.25 $33,933Vertical Lap Siding Panel 0 SF $15.50 $0Fibrous Cement Board Panel 5150 SF $15.25 $78,538Balcony Railing 64 LF $40.00 $2,560TPO 7375 SF $4.15 $30,606Roof Drains 4 EA $109.50 $438Drainage Piping 140 LF $6.14 $860

Mechanical 17550 SF $2.21 $38,812Natural Gas Piping 650 LF $2.11 $1,372Thermostat control 18 EA $91.98 $1,656Ducts 1950 LF $1.93 $3,764Heat Pump/Air Handler 18 EA $1,415.91 $25,486Registers 41 EA $10.54 $432Return Air Grille 18 EA $11.88 $214Radon Fan/Actvie System 6 EA $981.45 $5,889Elevator 0 EA $77,000.00 $0

Electrical 17550 SF $3.23 $56,763Wire 20850 LF $0.87 $18,140Bathroom Exhaust Fan w/ light 24 EA $105.02 $2,520Switch - Light w/plate 116 EA $19.62 $2,276GFI Outlet 178 EA $26.42 $4,703Standard Duplex Outlet 118 EA $14.32 $1,690AFCI Outlet 176 EA $41.29 $7,267Smoke Detectors 42 EA $8.83 $371Carbon Monoxide Alarm 21 EA $35.14 $738Can Lights 333 EA $38.59 $12,850Fluorescent Garage Lights 10 EA $23.40 $234Phone Outlet 36 EA $3.46 $124TV Outlet 66 EA $3.49 $230Ethernet Outlet 66 EA $6.53 $431220V outlet 36 EA $26.98 $971Circuit Breaker Panel (Recessed) 21 EA $190.06 $3,991Door Bell 18 EA $12.56 $226

Plumbing 17550 SF $11.32 $198,690Toilet 24 EA $201.00 $4,824Hot Water Heater 18 EA $554.39 $9,979Kitchen Sink/Faucet 18 EA $225.21 $4,054Second Bath Sink/Faucet 6 EA $136.93 $822Master Bath Sink/Faucet 36 EA $136.93 $4,929Exterior Water Spigot 4 EA $12.55 $50Bathtub/Shower 24 EA $863.80 $20,731Bathtub/Shower Faucet 24 EA $37.14 $8911/2" PEX Insulated water piping 21085 LF $6.83 $144,011PEX Manifold 32 Port 18 EA $382.24 $6,880CPVC Fire Sprinkler Pipe 626 LF $1.69 $1,058Recessed 1/2" Fire Sprinkler 78 EA $5.90 $460

Insulation 17550 SF $4.03 $70,759R-19 Insulation 25961 SF $0.72 $18,692R-18 Insulation 7375 SF $0.81 $5,974Rigid Foam Board (Roof) 7375 SF $6.25 $46,094

Interior Finishes 17550 SF $13.74 $241,0351/2" Drywall 8118 SF $0.54 $4,3845/8" Fire Resistant Drywall 36330 SF $0.63 $22,888Greenboard 2880 SF $0.68 $1,958Baseboard 3250 LF $1.08 $3,518Door - Interior Unit Doors 40 EA $185.95 $7,438Door - Apartment Front 18 EA $530.00 $9,540Door - Stairwell 3 EA $825.00 $2,475Closet Door (Bi Fold) 40 EA $248.00 $9,920Closet Door (Single Fold) 18 EA $205.00 $3,690Closet Shelf 65 EA $36.51 $2,373Stairs 318 SF $49.14 $15,627Paint and Primer 44448 SF $0.19 $8,445Paint Doors 119 EA $3.36 $400Paint Baseboard 3250 LF $0.58 $1,885Base Cabinets 558 LF $52.43 $29,256Upper Cabinets 276 LF $54.56 $15,059Bath Cabinets (Base) 112 LF $59.04 $6,612Countertop (Granite) 1106 SF $46.06 $50,942Medicine Cabinet 36 EA $32.09 $1,155Mirror 6 EA $20.26 $122Toilet Paper Holder 24 EA $4.86 $117Towel Rack 24 EA $10.34 $248Flooring (Bamboo) 9944 SF $2.42 $24,064Bamboo Floor Urethane Adhesive 1608 SF $1.05 $1,692Short Carpet 3510 SF $1.28 $4,493Carpet 2298 SF $1.96 $4,504Carpet Padding 2298 SF $0.84 $1,930Final Clean 18 EA $350.00 $6,300

Appliances 17550 SF $2.67 $46,819Microwave/Hood 18 EA $187.66 $3,378Refrigerator 18 EA $458.57 $8,254Dishwasher 18 EA $367.29 $6,611Range/Oven 18 EA $455.72 $8,203Stacked Washer/Dryer 18 EA $1,028.81 $18,519Dryer Vent 18 EA $11.37 $205Garbage Disposal 18 EA $91.65 $1,650

Landscaping 17550 SF $0.21 $3,638Sod (including installation) 1200 SF $0.56 $672PVC DWV 1 1/4" 450 LF $5.84 $2,628Sprinklers 36 EA $9.38 $338

Description

Apartment - A 1,154,305$

PRODUCTDESCRIPTION

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APARTMENT BLOCKS - SUMMARIZED

1B

2C 2B 2C

1B 1B 1B

Apartment Block A

We have compiled unit rates for each floorplan (A-E). To determine the total cost of each building, the cost to construct the floor plans that comprise it (Blocks A-E) added together. It is important to note that the pricing of elevators was not included in these costs. In the event an elevator is included in a building, each one will cost $77,000. This cost has been included where necessary in the pro-forma.

Elevation

Floor Plan (Floors 2-3)

Elevation


Apartment Block B


Permit & Fees $1.58 /SF $27,706Earthwork & Foundations $4.03 /SF $70,747Framing $13.02 /SF $228,526Exterior Finish $9.73 /SF $170,810Mechanical $2.21 /SF $38,812Electrical $3.23 /SF $56,763Plumbing $11.32 /SF $198,690Insulation $4.03 /SF $70,759Interior Finishes $13.74 /SF $241,035Appliances $2.67 /SF $46,819Landscaping $0.21 /SF $3,638Total $65.78 /SF $1,154,502

Apartment - AUnit Rate



Apartment - BUnit Rate

3A 3A

2A2A 2A


PRODUCTDESCRIPTION

71

Apartment Block C

Apartment Block D



Apartment - CUnit Rate



Apartment - DUnit Rate

Elevation


Elevation


3B

1A

1A

2C 2C 2C

1C

1A

1C

1A

1A

1A

3B

APARTMENT BLOCKS SUMMARIZED

PRODUCTDESCRIPTION

72

Elevation


Apartment Block E

Apartment Block F



Unit RateApartment - E



Apartment - FUnit Rate

Elevation


1B2B

2B 2B 2B

3C 3C

1B

APARTMENT BLOCKS - SUMMARIZED


PRODUCTDESCRIPTION

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APARTMENT UPGRADESAPARTMENT UPGRADES

With a wide variety of apartment floor plans from which to choose, CPS Builders offers upgraded apartment interiors to stray away from repetition. 50% of the apartments offered would be upgraded to a different style interior, which includes a darker granite above oak colored cabinets mixed with stainless steel appliances. These apartments will also feature wider plank bamboo flooring and red-beige carpet in the bedrooms. This offers consumers more options to find the right apartment in the right place with the right look. The following upgrade package is not a choice, but rather an interior upgrade on the entire apartment.

Hamilton Crossings - Apartment UpgradeCategory Upgrade Description 1 bdr Apt. Cost 2 bdr Apt. Cost 3 bdr Apt. Cost

Appliances GE Stainless Steel Appliance Package $697.00 $697.00 $697.00

Countertops Stone Mark Granite, Ubatuba $343.20 $316.80 $334.40

Kitchen Cabinets Kitchen Cabinet Upgrade, Medium Oak $3,450.00 $4,573.00 $7,031.00

Bathroom Cabinets Bathroom Cabinet Upgrade, Medium Oak $617.36 $808.24 $1,234.72

Bamboo Flooring Bamboo Medium Wood Flooring 5"x39", Café $308.18 $406.30 $624.60

Carpet Carpet Color Upgrade, Red River $242.50 $319.32 $490.57

Total: $5,658.24 $7,120.66 $10,412.29

Hamilton Crossings Upgrades

PRODUCTDESCRIPTION

74

In an area around the center of Hamilton Crossings, the site calls for retail space. In this situation, and where the large scale podium structures are not employed, the first floor of the residential units are removed from the plans and 3 commercial retail units are added. Parking is maintained in the rear of the building.

Massing Diagram

Parking in Rear

Residentia

lOut

InReta

il

Commercial Space Floor Plan

COMMERCIAL OPTION

Retail Space 1 Retail Space 2 Retail Space 3


PRODUCTDESCRIPTION

75

To find the cost of mixed-use construction, we calculated the cost of the commercial space per square foot. This cost is low because we will not be furnishing the commercial spaces; rather, the tenants will

Commercial/Mixed-Use Estimate Explanation

Commercial Space 3500 SFDescription Total

Permit & Fees $1.04 /SF $3,640Earthwork & Foundations $12.69 /SF $44,416Framing $2.68 /SF $9,371Mechanical $1.95 /SF $6,825Electrical $2.90 /SF $10,150Plumbing $3.03 /SF $10,605Insulation $1.74 /SF $6,088Interior Finishes $3.73 /SF $13,065Total $29.76 /SF $104,161

Unit Rate

Residential - MA 14000 SF Residential - MB 12630 SFDescription Total Description Total

Permit & Fees $1.43 /SF $19,962 Permit & Fees $1.31 /SF $16,568Framing $14.88 /SF $208,304 Framing $13.09 /SF $165,370Exterior Finish $9.06 /SF $126,788 Exterior Finish $8.88 /SF $112,093Mechanical $2.18 /SF $30,520 Mechanical $2.07 /SF $26,102Electrical $3.24 /SF $45,360 Electrical $3.24 /SF $40,921Plumbing $11.35 /SF $158,900 Plumbing $10.22 /SF $129,015Insulation $3.89 /SF $54,460 Insulation $3.70 /SF $46,674Interior Finishes $13.73 /SF $192,279 Interior Finishes $12.64 /SF $159,586Appliances $2.60 /SF $36,415 Appliances $1.59 /SF $20,039Landscaping $0.21 /SF $2,957 Landscaping $0.21 /SF $2,668Total $62.57 /SF $875,945 Total $56.93 /SF $719,036

Residential - MC 13590 SF Residential - MD 13590 SFDescription Total Description Total


Residential - ME 12560 SF Residential - MF 6000 SFDescription Total Description Total


Unit Rate Unit Rate

Unit Rate Unit Rate

Unit Rate Unit Rate

furnish these spaces themselves to better fulfill their needs. We then took the cost per square foot of the top two floors of the apartment building (different than apartment costs/sf) and applied those costs to the top two floors of the mixed-use, because they follow the same plans, and do not have a foundation (foundation is included in the compercial estimate). The commercial unit cost/sf are the same for all blocks, as shown for MA at right.

MA

PRODUCTDESCRIPTION

76

Massing Diagram

Section Diagram

The design of the podium structures utilizes the apartment blocks to create a larger, higher density structure that greatly expands the amount of parking offered on the site. A floor of commercial and parking is added to the bottom of the previously described apartments. These 4 story blocks are then put together with additional parking in between, to form a podium structure as shown below. Because apartments on the interior side of the blocks look down onto the parking structure, we have transformed the top floor of the parking structure into a walkable communal space that residents can utilize.

Commercial Residential Parking

This section diagram shows the nature of the parking and patio areas between the residential and retail spaces. Rather than using the top floor of the parking structure for parking, it is utilized as a communal outdoor area for the residents. This also protects the views of the apartments that look down Onto the building, as looking onto a patio area is more desirable than looking onto a parking structure. Openings in the patio level allow for natural ventilation of the garage levels, mitigating some of the need for large air changers within the parking structrure. Where needed, some commercial spaces can be removed to provide entrances and exits for the parking garage. Ultimately, this design offers the opportunity to transform the roof of a parking garage into useful and desireable shared patio space.

MIXED USE - PODIUM

Apartments

Retail Parking

Parking

Park

ing V

entil

atio

n Communal Space

ViewInward

ViewOutward


PRODUCTDESCRIPTION

77

4 Story Podium Elevation from Street

Podium Estimate ExplanationTo find the cost of the podium deck buildings, we first calculated the cost of the podium deck by finding the SF of the decks and waterproofing and the number of columns required. After finding that cost, we used our unit rates to estimate the surrounding building to come to the final cost. Podium 2

Podium 1

Podium Deck 2Item Quantity Unit Rate Total

Podium Deck 52800 $14.50 $765,600Columns 132 $1,440.00 $190,080Deck Waterproofing 52200 $3.50 $182,700Slab on Grade 26400 $5.30 $139,920

1,278,300$

Podium Deck 1Item Quantity Unit Rate Total

Podium Deck 104400 $14.50 $1,513,800Columns 260 $1,440.00 $374,400

Deck Waterproofing 52200 $3.50 $182,700Slab on Grade 52200 $5.30 $276,660

2,347,560$


Key

2014 NAHB Site MapLebanon, Tennessee

N

1:256 ScaleCurrent 11/22/2014

PRODUCTDESCRIPTION

78

UNIT TOTALS


PRODUCTDESCRIPTION

79

VALUE ENGINEERING

Advanced Framing TechniquesIn the Hamilton Crossings development, all exterior, wood framed walls will be built using 2x6 framing 24” O.C. as opposed to 2x4 framing 16” O.C. Not only does this increase the building’s value and energy efficiency, it also lowers construction costs. CPS Builders will also use 2 stud corners with drywall clips as opposed to 3 or 4 stud corners. 2 stud corners save significant labor and material costs, while also increasing the building’s energy performance. In a 3 or 4 stud corner, the corner of the wall is not insulated, meaning heat or coolness is lost, leading to higher energy bills. A 2 stud corner provides the same structural properties of a 3 or 4 stud corner, while leaving room for insulation, resulting in a more energy efficient home. CPS Builders will also use TJI Joists for flooring, as opposed to nominal lumber or a truss system. TJI Joists perform the same structurally as nominal lumber and truss systems but at a fraction of the cost. TJI joists are less expensive than nominal lumber and they also use less wood, some of which is recycled in their production. When compared to a truss system, TJI joists are less expensive not only due to material costs, but also because they can be cut in the field, as opposed to trusses which cannot be altered if they do not fit, improving productivity.

Utilizing Apartment BlocksBy using apartment blocks, we maintain uniformity throughout the development. This means our subcontractors’ productivity will increase as they build more of the same set of plans, potentially reducing both costs and construction time in the future.

Module DesignDesigning the apartment modules to be interchangeable allows for changes down the road if one apartment proves to be more popular than another. This design maintains versatility, which could prove to be extremely cost-effective in the future.

GradingWhen planning out the development, too much earthwork could result in unnecessary costs that do not add to the value of the units. By creating a balanced site, we will not have to import or export soil. This greatly reduces the costs for trucking and it eliminates costs for buying soil. We are still able to produce an effective site design that is easy for occupants to utilize.

Salvage MaterialsWe have worked out a plan for our sub contractors to utilize the storage area so that they can store leftover material between units. The benefit of this is some “scrap” pieces still hold a value if they can be salvaged. For example, if a worker needs an extra piece of carpet, instead of purchasing a whole new roll, they could go to the storage area and pull from the extra pieces.

Fire-Rated DrywallIn order to lower construction costs, CPS Builders will use two layers of fire-rated drywall over the parking areas in the apartment and mixed-use buildings. Using drywall means we can wood frame that portion of the building instead of using concrete, which would increase construction costs significantly. The same is true of the fire-escape stairs.

GREEN BUILDING STRATEGIES

80

Concept

Green Building Scoresheet

Green Building Program

Strategies

Marketing Green

NGBS Gold CertificationLot DesignRecourse EfficiencyEnergy EfficiencyWater EfficiencyIndoor Air Quality

TownhomeApartment


82

CPS Builders believes it takes a joint effort to sustain this planet we all call home. We strive to be at the forefront of this effort starting with our commitment to green and sustainable home building practices. Today, CPS Builders provides homes that exceed industry sustainability standards in an effort to reduce energy consumption and save water resources. This sustainable approach is successfully achieved through effective building methods and materials.

CONCEPT

CPS Builders has adopted the ICC 700 National Green Building Standard, the only residential green building rating system approved by the American National Standards Institute (ANSI). Our sustainable practices also reflect ENERGY STAR standards developed by the U.S. Environmental Protection Agency (EPA). These standards are the foundation of our sustainable approach for the community of Hamilton Crossings.

Consumers, too, are getting behind the trend of being green. Recent polls show that consumers are very concerned about rising issues such as climate change, worsening air quality, and prolonged droughts. A 2007 McKinsey & Company global survey of 7,751 consumers in eight major economies showed that a full 87 percent of these consumers were concerned about the environmental impacts of the products they purchase. These consumer concerns drive our effort in becoming a more sustainable builder and offering sustainable techniques that reduce costs and benefit overall health.

CPS Builders strives to be at the forefront of creating a more sustainible planet.



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GREEN BUILDING PROGRAM

What is Green Building?

Green Building can be defined as high-performance building or sustainable construction according to the National Association of Home Builders (NAHB). These buildings are designed and constructed to add environmental approaches and resource efficiency into the home building process from start to finish. In total, this standard will reduce the overall environmental impact of the community or development.

This approach is accompanied by the National Green Building Standard (NGBS) certification: a residential development rating system verifying that a development is designed and built to achieve high performance. The certification comes from evaluating six key areas, listed below:

Lot Design, Preparation & DevelopmentEffective preconstruction techniques that minimize the environmental impact of the site and entire development.

Resource EfficiencyPractices for reducing waste, and incorporating more sustainable materials and construction practices into the development.

Energy EfficiencyImplementing appliances, doors, windows, heating and air conditioning that attain minimal energy consumption and reduce operating cost.

Water EfficiencyMinimizing the use and consumption of water by utilizing water saving appliances and fixtures.

Indoor Environmental QualityUtilizing low emission materials with low VOC’s to improve the indoor living environment.

Operation, Maintenance & Homeowner EducationEducate homeowners of the benefits and usage of green building materials and practices to include them in the green effort.

By implementingNGBS, CPS Builders was able to address the environmental concerns of today’s consumers by creating a sustainable and eco-friendly development. Residents will not only enjoy living in Hamilton Crossings, but also feel good about the contribution they are making to the planet. We invite everyone to be a part of this green effort we strive to spread.


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NAHB Green Building Certification Townhome Scorecard

GREEN BUILDING SCORESHEET

CPS Builders are pleased to announce that Hamilton Crossings received NAHB Green Gold Certification for both townhome and multi-family buildings. We believe this certification is appropriate for our development, as the push for greener products is demanded. Although this certification does add to the cost per square foot, CPS Builders has carefully balanced the need for green products with the construction costs. The overall product features sustainable materials and practices that increase the future return on investment of the home as well as reduce energy and water consumption.

NAHB Green Building Certification Apartment Scorecard



85

STRATEGIES

NGBS Gold Certification ReasoningMany credits leading to Gold Certification came from designing durable and quality homes. Hamilton Crossings is situated in climate zone 4 (moist), with an average precipitation of 50”-60” of rain each year, a moderate to heavy termite infestation probability area, and a radon zone 1 area. This caused CPS Builders to implement practices and use materials such as effective rain proofing, anti-termite materials, and an active radon mitigation system. Many points were earned through these effective practices. The remaining points came from increase energy and water saving fixtures and materials. We believe these additions to our homes will increase the overall return on investment and also lower utility costs.

Climate Zone 4 (moist)average precipitation: 50-60in/year

Termite Zone, Moderate to Heavy

Radon Zone, Zone 1 (High)


86

The site characteristics will require cut and fill of the land to obtain an ideal grade. Our team has successfully balanced our site, which means all dirt removed is put back on the site in needed areas. This eliminates any removal of landfill and stops extra landfill being disposed elsewhere.

STRATEGIES

Lot Design Preparation & Development

Balanced Site

To minimize the amount of soil disturbance, utility lines will tie into existing lines on the existing road to the east of the property. The design for underground utilities will utilize shared trenches as much as possible and if building codes permit. We feel that this is cost effective and adds to our green initiative for the site.

Utilities Plan

Hamilton Crossings will feature many off street parking areas through the podium deck parking structure to ensure the minimization of parking on the entire development. We believe a podium deck structure is the best solution for this issue as it takes in account required spaces and a low cost approach.

Innovative Practices

To solve issues with heat island effect, the development will feature metal deck roofing and thermoplastic polyolefin (TPO) roofing membrane systems throughout the project. Both roofing systems will have a minimum ASTM certified (SRI) value of 29. The metal deck roofing will not allow rain to collect harmful toxins when discharged like shingle and tar roofs, and the TPO system is a recyclable product which means both systems are eco-friendly.

Heat Island Effect

Hamilton Crossings is at an ideal density of about 21 units per acre. To complement the density, the development contains mixed-use structures and is conveniently located close to the Music City Star commuter rail. Within this amazing development, bike paths are present to accommodate travel without vehicles. Safe and effective bike paths are located street side on most roadways.

Density



87

STRATEGIES

A detailed plan will be implemented to ensure that materials are recycled and recycled properly during construction. Three large C-train bins will be transported on site during construction to collect recyclable materials such as wood, drywall, and metal. These materials must be sorted separately to ensure that a third party properly recycles the materials. The three C-train plan will eliminate the possibility of different materials being combined in the same bin onsite.

Resource Efficiency

Recycled Construction Waste

Renewable materials such as bamboo flooring and composite decks will be featured in this project. Bamboo flooring is approximately $.23/SF more than engineered wood and composite deck material is approximately $4.25/SF more than basic hardwood. Although there is a difference in price, these materials are both renewable and more durable than their counterparts. This will allow the materials to last longer and not require the owner to replace them for a long period of time.

Renewable Materials

The townhomes will utilize prefabricated truss systems to speed up construction, reduce labor cost, and will contain fewer materials than a conventional framed roof. The trusses are built from shorter lengths of 2x4 lumber rather than the large size lumber required in building rafters and ceiling joists. This reduces material waste and the overall amount used for the development.

Resource Efficient Materials


88

STRATEGIES

The townhomes and apartment units will feature properly sized HVAC units in accordance to the ACCA Manuel J. The units offer an annual fuel utilization efficiency (AFUE) of 90%, a heating seasonal performance factor (HSPF) of 8.2, and a seasonal energy efficiency ratio (SEER) of 14 - meaning they are above the standard requirements. The units are to counter the variable weather climate in Lebonon where the temperatures fluctuate from the high 90’s to the low 30’s.

Energy Efficiency

Excellent HVAC Efficiency

The duct system and air handler will be located entirely inside the building envelope, which will require a drop ceiling in the hallways of all plans. Along with R6 insulated ducts and efficient windows and doors, the outcome of the entire HVAC system will decrease the HERS Index (from 54 to 52), and annual energy costs (from $1,274-$1,158).

To complement the excellent HVAC system and counteract the various weather conditions in Lebonon, NFRC certified widows and exterior doors will be installed in all townhomes and apartments. The window and door U-factors and SHGC are .25 and .40 respectively. Windows with low SHGC reduce passive solar heating desired in winter, but prevent excessive heat gain during the summer. The cost for these windows and doors can be 15% more than the average, but they can reduce energy consumption by 30%-50%, which can lead to an annual savings of $200.

Windows & Doors

All units will feature ENERGY STAR appliances standard. The appliance list includes a refrigerator, dishwasher, washer/dryer, microwave, and range oven. The addition of ENERGY STAR appliances is not a significant increase in cost and will reduce the owner’s energy consumption by approximately 15%-30%.

Energy Star Appliances

All units will feature ENERGY STAR qualified lighting fixtures. Recessed can lighting systems will be Green Building Certified and 95% of the light bulbs used will be LED. ENERGY STAR qualified lighting fixtures use at least 75% less energy than incandescent lighting, last 35 to 50 times longer than incandescent lighting, and do not give off heat, reducing cooling costs.

Efficient Lighting



89

STRATEGIES

ENERGY STAR qualified washers and dishwashers will be installed in each unit. ENERGY STAR dishwashers can save homeowners $15 a month on their utility bill, and 1,300 gallons of water over its lifetime. ENERGY STAR washers use 20% less energy ($85 savings a year) and 35% less water than regular washers.

Water Efficiency

Water Conserving Appliances

When it comes to saving water, toilets are the place to start. Toilets account for nearly 30% of an average home’s indoor water consumption. With this in mind, all toilets will be EPA certified WaterSense toilets. WaterSense toilets use 1.28 gallons per flush, 20% less water than the current federal standard of 1.6 gallons per flush. The average family can reduce water used for toilets by 20-60%—nearly 13,000 gallons of water savings for a home every year! WaterSense toilets also can save more than $110 per year in water costs.

WaterSense Toilets

ENERGY STAR certified tankless water heaters only heat water when it is needed, which in turn saves the typical family more than $80 per year, or $1,700 over the lifetime of the water heater, on gas bills compared to a standard storage model. Tankless water heaters also provide a continuous flow of hot water, so there is always hot water even after continuous use. These water heaters add great savings and efficiency to all units by not sacrificing durability. Tankless water heaters have a life expectancy of 20 years and do not carry the risk of tank leaks.

Tankless Water Heaters

All units will use low-flow water faucets in all bathrooms. These low-flow water faucets have flow rates of 1.5 gallons per minute, which reduce a sink’s water flow by 30% from the standard flow of 2.2 gallons per minute without sacrificing performance. In total, low-flow faucets can result in water savings of $50 to $90 or more per year.

Efficient Lavatory Faucets


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STRATEGIES

All units will contain composite cabinets, wood flooring, and carpet cushion that are made of reduced emitting pollutants. All cabinets are made of composite materials that are California Air Resources Board (CARB) compliant. This compliance means the materials are free of formaldehyde, a known human carcinogen. The bamboo flooring selected is Greenguard Indoor Air Quality Certified and has been tested for more than 10,000 volatile organic compounds, including formaldehyde. The selected carpet cushion contains an antimicrobial that protects against mold, mildew, bacteria and dust mites. The carpet cushion is also Greenguard Indoor Air Quality Certified for low-VOC emissions. These products may not have a direct savings to the owner, but they are low emitting materials that will affect the health of the residents. We believe it is a good feature to have in our townhomes and apartments.

Indoor Environmental Quality

Pollutant Source Control

Lebanon is located within Radon Zone 1. This requires some sort of radon mitigation system to be installed. We chose to install an active radon system to mitigate the high intensity of radon in the area. The active system includes an electric fan and a vent pipe running between sub-slab gravel up to above the roof eave. Active systems are a more powerful way to mitigate radon rather than passive systems, which is why active systems cost more. We chose to select an active system mainly because of the high risk of radon in the area. A properly installed radon system can reduce radon levels up to 99% in some cases.

Radon Mitigation

Lebanon sits in a relatively high humidity location (Climate Zone 4A) so we chose to install whole home dehumidifier systems for the HVAC units to extract moisture from the air, reducing the humidity level. High humidity may spur mold and mildew growth, which can intensify allergies and rot walls. High humidity can also make the air feel much warmer, especially during the summer. All consequences of high humidity are probable cause to invest in a dehumidifier system. Overall, the system will protect the integrity of the home and reduce health risks for the residents.

Dehumidifier



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MARKETING GREEN

“The only way forward, if we are going to improve the quality of the environment, is to get everybody involved.”

-RICHARD ROGERS

As stated in the beginning, CPS Builders strives to be at the forefront of this sustainable effort. It is our goal to include as many stakeholders as possible, starting with our consumers. CPS Builders takes the time to educate others about the benefits, advantages, and disadvantages of green building. Our sales staff is well educated on all sustainable practices and materials used in our homes to properly explain to our consumers what green is, how to be green, and how to continue to be green. Home manuals and operation guides will include all green strategies used in our development and help the residents maintain their new green home. The main focuses for green building include:

Lower Operating Costs Improved Environmental Quality

Increased Durability Increased Comfort

The initial cost increase for green building averages approximately $3,400 for apartments and townhomes. This cost can be attributed to the more efficient HVAC system, efficient windows, low-flow faucets, tankless water heaters, and WaterSense fixtures. Today, the demand to go green will help convince many consumers to take a step towards green by investing more now for a better pay off financially and environmentally. On average, the yearly savings (summing all estimated yearly savings) for owners from green building techniques is approximately $889. This shows that, in time, the initial increased cost can be redeemed with good care and maintenance of the dwelling.

Initial Costs

CPS Builders has proven that building green is cost effective, increases the environmental quality inside and outside the home, increases owner comfort, and increases overall durability. To reach NAHBGreen certification such as Gold, there are high initial costs, but over time these costs can be mitigated through energy and water savings along with proper care and maintenance of the dwelling.

Summing Up

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Target Markets

Product Marketing

Models

Product Pricing

TownhomesApartmentsMixed-Use

PromotionAdvertisingSales

TownhomesApartmentsCommercial

SALES STRATEGY

Sales MethodologyIn-House SalesIndependent Realtors

SALES STRATEGY

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- Ages 35 and Over- Median income of $55,000 and up- College Educated - Traditional morals, enjoy outdoor space- Older and younger families, some with children- Semi-rural neighborhoods located within metropolitan areas

Townhomes

TARGET MARKETS

- Ages 20 to 34- Median Income of $29,000 to $39,000- Some Education – Blue Collar Workers- Mobile, enjoy latest fashions- Are either single, or young families with children- Apartment Complexes located in single-family home areas or near businesses

Apartments

- Ages 20 to 34 or Above 50- Median Income $39,000- Either currently attending college or have some college education- Enjoy culture and the environment- Either single or couples with no children- Apartments located in Metropolitan Areas

Mixed-Use


SALESSTRATEGY

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MODELS

To attract people from different segments of the market and to depict the lifestyle of Hamilton Crossings, CPS Builders will construct model units for both townhomes and apartments. The models will showcase several floor plans along with various upgrade options. Four model townhomes and several apartments units will be available for show. Two of the townhome models will serve as a main office and sales center until the project’s completion.

Model Homes

The model units will include each of the four floor plan options for the town homes as well as the most popular floor plans for the apartments. The variety of the model units will aid in will strengthen marketability of our development.

SALES STRATEGY

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CPS Builders will utilize two sales approaches to sell all available inventories. The first method will be through the use of an in house sales team. In an effort to keep sales in house, CPS Builders plans to hire an onsite sales staff to greet, tour, and market to Hamilton Crossings prospective buyers and tenants. Our development team will oversee a three agent sales staff. The sales agents will be compensated on a commission basis. Commission compensation for townhomes will be 2% of sales price. Commissions for a one year apartment lease will be 50 % of the first month’s rent. The commission for a one plus year commercial lease will be 6% of the total commercial lease price paid, payable upon the signing of the lease. The model townhomes will serve as office space for these agents until the completion of the Project.

In-House Sales

SALES METHODOLOGY


SALESSTRATEGY

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While it would be ideal to keep all sales and leases in house, CPS Builders understands that assistance from outside realtors is necessary for Hamilton Crossings to become a household name. With help from the Middle Tennessee Association of Realtors (MTAR), a local real estate organization headquartered in the neighboring city of Murfreesboro, we feel that we can maximize our sales potential. Independent realtors will be compensated on an identical commission for the three property types. To incentivize outside realtors to pitch the Hamilton Crossings development, CPS Builders will establish a Realtors Rewards Program. The Realtor Rewards Program will award the top selling/leasing realtor at the end of each year with a $5000 cash bonus. With these sales procedures in place, we are confident that we will adequately meet or exceed our sales and leasing quotas.

Independent Realtors

TO THE AGENT WITH THE MOST SALES!$5,000

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Townhome PricingTo determine a competitive sales price for Hamilton Crossings townhomes, both square foot and sales price trends were examined for homes near our site location. We considered both single family detached homes, as well as town homes, because both types of housing compete for the same customer base. CPS Builders examined, and then ranked, MLS data from the City of Lebanon to determine which developments are the most popular sales. We then consolidated our findings into the top six most popular sales, and recorded their corresponding sales prices and square footages. Next, average trend lines were calculated to determine a rough range of sales price to square feet. Observing the trend lines below, our proposed development aims to be priced roughly in the middle of the Hill View Farms and Spence Creek trend lines at the $215,000-$240,000 price range, in order to capture the greatest share of the market.

PRODUCT PRICING


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Apartment PricingThe rent pricing for each of the apartment floor plans was determined by comparable analysis. We looked at rent pricing from similar apartments in the area, specifically those considered to be our competition. Next, from that range of rent prices, related them to the number of bedrooms (1, 2, or 3). We chose the rent prices from within that range, making sure not to be the most expensive in order to maintain certain segments of the market, but also not too low as to diminish profits.

Commercial/Retail PricingCollier’s Commercial Market Research Data was used to estimate accurate rental rates for commercial/retail space. 2014 third quarter rental rates for the Mount Juliet and Lebanon areas averaged $5/sf. That figure reflects a more conservative rate compared to other commercial/retail rates offered in neighboring counties. CPS Builders selected the $5/sf rate to project conservative rental income amounts. This rate will entice retailers to open up shop at the Hamilton Crossings.

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Promotion• Events o Hamilton Crossings will allocate a portion of its marketing budget funds into its Event planning and execution. o There will be four high profile events: 1. Groundbreaking Ceremony 2. Opening Ceremony in celebration of phase one’s completion 3. Broker & Realtor Open House 4. Prospective Resident & Tenant Open House o The purpose of each event is to reach a different demographic of customers and media outlets to spread awareness of Hamilton Crossings. • Branding and Public Relations Strategist Consultant o Our marketing group will hire a single expert and specialist in branding to create a “lifestyle” brand for the Hamilton Crossings development community. o Our brand will be key to differentiate ourselves from our competitors and create a sense of community for the residents and commercial tenants. o This hired strategist will initially monitor public relations for the development then educate in-house staff on how to practice effective Public Relations. Duties include: - Writes and distributes press releases and other press materials, and pitches stories to reporters. - Crisis management to maintain company’s reputation in emergency situations. - Blogs and writes for the web including social media platforms.

PRODUCT MARKETING


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ADVERTISING

Electronico Website Development: - The website will possess an interactive component where prospective tenants and buyers can customize and build their “dream home” by interchanging several floor plans in both the townhomes and apartments. - The website will include contact information, various floor plans, pricing, the prospective commercial tenant mix, and overall community information.o Website Maintenance - Budgeted for minimal upkeep and conditioning of the website to keep it efficient and pay for domain fees.o Mobile Application - The mobile application will function as both a resident community resource network and digital advertising piece. - The resident community resource will include members of the community directory, community resources, train times, community sponsored events, and commercial business information. - The digital advertising piece will include many of the same features of the website: floor plans, “dream house” features, and price ranges.o Search Engine Optimization (SEO) - Pay monthly for increased and optimal website exposure. - SEO allows the Hamilton Crossings’ website to appear at the top of search engine searches related to “housing/shopping/restaurants near Nashville, Tennessee” and related keywords.o Social Media - Hamilton Crossings will be advertise on Facebook, Twitter, Pinterest, and Instagram through their professional advertising services to reach a broader demographic and range of customers.o Mobile Advertising - The mobile advertising campaign will use geo-targeted advertisements on wireless mobile devices such as smartphones, kindles, and tablets to reach prospective buyers and tenants.

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Printo Development Site Signage - Signage on individual lots, branding on model homes, and larger signage at the entrance of Hamilton Crossings with contact information and renderings to give the public a glimpse into the future of Transit Oriented Development living.o Billboards/ Directional Signs - Directional signs near the site will be placed strategically to guide prospective buyers and tenants to the site of their future homes and shopping experiences. - Billboards will be leased for several months at tactical locations on two interstates in East Nashville to promote the lifestyle and community Hamilton Crossings offers its residents. o Press Releases - Press releases will be published for the purpose of announcing community highlights, progress, and phasing completions. - Press releases will be handled initially by the branding and public relations strategist initially then transferred to in-house staff after they have been educated.o Brochures/ Print Media - The in-house sales team will be distribute brochures with floor plans, unit types, pricing mixes, and all community amenities and features. - The 10,000 high quality brochures will be distributed at community-sponsored events, post-housing tours, and to residential and commercial real estate agents.

ADVERTISING

Sales Incentives• Gifts & Incentives o Award brokers that close deals and residents who sign a lease or purchase a home with a “Thank You & Welcome!” housewarming basket. o The basket will include gift cards for local businesses, a discounted train voucher, and spa kit.


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SALES

Media Type Details Annual Average Monthly Average Budget Percentage

Promotion

Events

Groundbreaking / Opening Ceremony, Broker/Realator& Prospective Resident/Tenant Open Houses 25,000$ 2,083$ 11.6550%

Branding & PR StrategistAn expert and specialist brought onboard to increase our competitive advantage. 10,000$ 833$ 4.6620%

AdvertisingElectronic

Website DevelopmentWith an interactive component for "Dream Home Building" 30,000$ 2,500$ 13.9860%

Website Maintainance Upkeep & Conditioning of Website 3,000$ 250$ 1.3986%

Mobile ApplicationResident Community Resource Network & Digital Advertising Piece 10,000$ 833$ 4.6620%

SEOAppears at the top of the search when specific words are searched 15,000$ 1,250$ 6.9930%

Social MediaFacebook, Twitter, Pinterest, and Instagram Advertisement 20,000$ 1,667$ 9.3240%

Mobile AdvertisingGeo‐targeted advertising for wireless mobile devices(smartphone, kindle, tablet) 12,000$ 1,000$ 5.5944%

Print

Development SignageSignage on the site for individual units and development branding at the entrance 20,000$ 1,667$ 9.3240%

Billboards/ Directional SignsLarge Scale Advertisement on strategic thouroughfares in the greater Nashville Area 60,000$ 5,000$ 27.9720%

Press ReleasesPublished for the purpose of announcing development highlights, progress,and completion . 7,500$ 625$ 3.4965%

Brochures/ Print Media10,000 high quality Brochures with floorplans and unit types with all amenities and the price mix 2,000$ 167$ 0.9324%

Sales

Gifts & IncentivesAwarded to Brokers or Residents when their deal is closed as a "Thank You & Welcome!" 12,000$ 1,000$ 5.5944%

214,500$ 17,875$ 100.0000%

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Management

Phasing

Jobsite Practices

Schedule

StructureStaffing

Site LogisticsConstruction EntrancesSite Build Out

SWPPPSafetyQuality Control

Master ScheduleTownhomeMixed-Use/ApartmentPodium

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MaterialPurchasingProcurement

RiskBusinessConstruction

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MANAGEMENT

CEO

Management StructureWe involve our entire field staff from the beginning of the planning stages to ensure that no steps are skipped that could interfere with our development. CPS Builders maintains a lean company structure to reduce overhead as much as possible. The corporate structure for those involved on the construction side can be seen below.

StaffingCPS Builders believes having a job understaffed is never an option. We staff our jobs effectively to ensure our employees can work as efficiently as possible, minimizing mistakes. Our staff for this development will change as our work volume changes. We will have one group of staff responsible for the townhomes, another for the apartments/mixed-use, and another to oversee the podium deck construction. We believe there is a reduced learning curve with repeat work, which is why we have staff dedicated to these different types of structures. We plan on having a General Manager, Design Manager, Project Manager, and two Field Managers initially for the models and first buildings. We will add staff as construction begins to increase.


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JOBSITE PRACTICES

SWPPPLebanon, TN is a wet climate, averaging more than 50” of precipitation each year, about 16” more than the national average. Also, Hamilton Crossings is located in an area known for sinkholes, which form when standing water sinks into the soil, contaminating and deteriorating the bedrock. Due the combination of excessive rain and a risk of sinkholes, a comprehensive SWPPP and flood control plan are crucial for Hamilton Crossings. In order to prevent the formation of sinkholes, our SWPPP plan drains rain off the site as quickly as possible, preventing stagnant water. We will utilize silt fencing and straw wattles to prevent the spread of contaminated water. All storm drains will be surrounded by gravel bags to prevent contaminated solids from entering them. Our storm water runoff map, (see Land Development) will help us place various prevention measures effectively. We are taking SWPPP very seriously to eliminate puddling and standing water. By doing this, the possibilities of a sinkhole forming during construction are reduced. We will discuss this topic further in the Risk section of the packet.

http://www.rinconconsultants.com/Portals/111276/images/Silt%20Fence.JPG

http://www.usapropfund.com/uploads/images/SWPPP.jpg

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JOBSITE PRACTICES

SafetyA successful day is when all workers on our jobsites return home safely. Here at CPS Builders we take all necessary steps to ensure the safety of our workers and any visitors to the construction site. We create a special safety plan for every site prior to construction based on our motto “See Something, Say Something.” In this plan, everyone on-site is held responsible for reporting any safety violations. To ensure the effectiveness of this program, all field managers and project managers are required to have an OSHA 30-hour certification. In addition, all subs are required to have a minimum of one superintendent on-site with at least an OSHA 10-hour certification. We hold weekly toolbox talks on Fridays. At these meetings, all subcontractors are required to have a representative in attendance. Components of our Safety Plan: -“See Something, Say Something” Policy -Compliance with all OSHA requirements -Emergency Plans posted in the construction office -Required daily site cleanups -All proper personal protective equipment is to be worn at all times -Complete first aid kit in the construction office -All available MSDS sheets will be stored in the construction office for easy access -Weekly “toolbox talks” -Pre-construction safety meetings for CPS Builders employees and subcontractors


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Quality ControlTo ensure quality we have carefully constructed a quality control plan entitled “CPS Standards”. It adresses everything from grading to completion. Special attention is given to aspects of construction that pertain to water intrusion. Water Intrusion is the leading cause for warranty claims and is detrimental to the life of a building. We take every step to ensure a long life of the building and reduce any possible cause for mold.

In our separate Building Standards we give step by step instruction on how to properly construct our buildings. Most of the standards are pulled directly from the manufacturers’ guidelines with an additional factor of safety included. Every contract we sign with a subcontractor includes a section stating that they are responsible for building to these standards. With this plan, we have seen a large decrease in the number of warranty claims and we have experienced higher customer approval.

Additional Aspects of our Quality Control plan are:

-Detailed document review prior to start of work -Competent and Invested project team -Subcontractors with excellent work records -Examination of sample materials prior to installation -Active evaluations -Testing Program Implementation -Construction Deficiency Resolution -Regular inspections and evaluations

CPS Builders also regulates quality by ensuring that work performed is in compliance with the contract documents. Every member of the project team is responsible for helping the company achieve this goal. All subcontractor crews and the construction management team share the same expectation: we will follow through with quality control on a daily basis to offer a valuable finished product to our customers. Our Quality Management Plan includes evaluations and documentation of all work on a project through submittal reviews, testing, inspections, and ongoing communication with subcontractors. Active evaluations allow for immediate correction of items that do not meet requirements set forth in the contract documents. CPS Builders Quality Management Plan will ensure that a project is designed, built, and commissioned in a way so that each item of the work meets or exceeds the minimal specified standards of construction. With our CPS and Building Standards, we provide a desirable product to the client, and prevent construction defects while minimizing additional costs.

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PHASING

Site LogisticsOne common overlooked key to efficiency is site logistics. CPS Builders is commited to efficiency of movement and tasks on the jobsite. For example, when we plan projects we do not want to mobilize the storage areas; we want our workers to know exactly where everything is at all times. The storage area for Hamilton Crossings is located in the last planned zone of construction. This secured location, will contain a lay down area for material drop-off, as well as the three separate recycling C-Train Bins used for recycling wood, metals, and drywall ( NGBS ICC 700-12, 605.2). The last aspect of the storage area is the space set aside for the storage containers (Subcontractor supplied).

The construction office will be located in the first model building. This will reduce overhead cost for the field management by eliminating the rent cost for a trailer over the duration of the project. However, we will need to use a jobsite trailer for the model building phase which will be placed next to the model building.

During construction, we want to ensure the safety of our workers and residents alike. Accordingly, a chain link fence will suround all construction sites. The planned locations of the fence can be seen on the “Construction Build Out Map” which is represented by the black lines between zones.


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Construction EntrancesSeparating civilian/resident traffic and construction traffic is another often overlooked key to efficiency. Having civilian and construction traffic intersect is a recipe for disaster: it creates a dangerous environment for civilians and slows down construction. CPS Builders will use three construction entrances over the course of the development of Hamilton Crossings. The first entrance will be used through the construction of the podium buildings. The second entrance will be used during the middle of the project, including the community center. Finally, the third entrance will be used for the last few phases and the building out the remaining models. By using multiple entrances we separate construction and civilian traffic as much as possible.

1

2

3

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CONSTRUCTION BUILD OUT MAP

M1

Models

A1

T1

T2

T3T4

P1P2

A2

T5

T12T13

M3A3 M2

CC

M4

A4T14

T6

T8T9

T10T11

T7

T15

T16T19T18

T16T17

T21T20T22T23

T24T25T26T27

T28

T29

T30 T31 T32T33 T34

T35T36

A5A6A7A8

A9 A10 A11

3 4

7

8

2

65

9

141312

11 10

1/1615


Key


Current 11/22/2014


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SCHEDULE OVERVIEW

CPS Builders has scheduled land development and construction separately. This is due to the way our field management is organized. We have individuals who focus on only the land development aspect of the project while others only do construction. Our company has found that having individuals who specialize in their specific field work, increases productivity dramatically. We will begin our project with our first land development phase. As our initial focus is to get the roads in for access therefore, we will do the finish grading for paving. However, we will only do “rough grading” for our lots. Two weeks after land development begins, we will begin construction on the Models and Mixed-Use Building 1. We can afford to do this because utilities already run to those locations, and the grading required there is minimal. After the land development is complete, we will move onto construction of the other phases. At the beginning of each phase, we will establish the finish grade for the lots, then continue on to the construction of the buildings. It is important to note that this is an overview schedule and, while the durations of the buildings are accurate, their start dates and finish dates are on a monthly basis. This means that when 4 townhomes start in one month, they will actually all start one week apart from each other, creating an assembly line. At CPS Builders we take pride in our scheduling abilities. We know that a schedule could either make or break the project and has an impact on profit. We use historical data to determine activity durations and build our schedule based on our field experiences.

Master

With light snowfall and rain, wet days can cause delays anywhere from days to weeks. We have included a plan to combat delays. We have incorporated cost contingencies and added extra days in the schedule. An example of how we plan to minimize delays is if the field manager finds rain or snow on the weather forecast, he or she can have a crew lay necessary concrete or dry-in the house ahead of schedule.

Another possible scheduling delay is an onsite, work related injury. All of our field supervisors are required to have their OSHA 30 hour Construction Certification. This ensures they are aware of many possible risks and can do their best to prevent an accident. CPS Builders believes that our field workers are our greatest asset, as they are the ones who keep our productivity high while still delivering a quality product

Potential Scheduling Factors

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SCHEDULE - MASTER

ID Task Name

1 Master Project2 Permits3 Land Development 14 Models5 M16 T17 T28 A19 T310 T411 T512 T613 T714 Permits15 Land Development 216 T817 T918 T1019 T1120 P121 P222 A223 T1224 T1325 T1426 Community Center27 M228 M3/A329 Permits30 Land Development 331 M432 A433 T1534 T1635 A536 A637 T1738 T1839 T1940 T2041 T2142 T2243 T2344 T2445 A746 T2547 T2648 T2749 A850 T2851 T2952 T3053 T3154 A955 A1056 T3257 T3358 T3459 T3560 T3661 T3762 A1163 Model Finish

Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan2016 2018 2020 2022

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ID Task Name

1 Master Project2 Permits3 Land Development 14 Models5 M16 T17 T28 A19 T310 T411 T512 T613 T714 Permits15 Land Development 216 T817 T918 T1019 T1120 P121 P222 A223 T1224 T1325 T1426 Community Center27 M228 M3/A329 Permits30 Land Development 331 M432 A433 T1534 T1635 A536 A637 T1738 T1839 T1940 T2041 T2142 T2243 T2344 T2445 A746 T2547 T2648 T2749 A850 T2851 T2952 T3053 T3154 A955 A1056 T3257 T3358 T3459 T3560 T3661 T3762 A1163 Model Finish

Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan2016 2018 2020 2022

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SCHEDULE - TOWNHOME

Our townhomes will be built using two different schedules, depending on the number of units. The 4-unit townhomes will be built in 4 months, while the 6-unit townhomes will be built in 5 months. Below is the detailed schedule for Townhome 2.ID Task Name

1 Townhome 22 Foundation3 Survey and layout4 Excavate Footing5 Place Forms6 Lay Membrane and Gravel7 Place Concrete8 Framing9 Frame walls10 Frame second floor11 Frame Roof12 Install Windows and Doors13 Rough Mechanical14 Place A/C Units15 Hang Ducts16 Rough Plumbing17 Install Bathtubs & Showers18 Layout PEX19 Rough Electrical20 Layout21 Pull Romex22 Insulation23 Install Batt Insulation24 Install Attic Insulation25 Drywall26 Hang Drywall27 Tape, Mud, and Texture28 Exterior 29 Siding30 Garage Door31 Install Gutters32 Finish Carpentry33 Install Baseboard34 Finish Door Hardware35 Install Shelving36 Paint37 Paint Exterior38 Paint Walls and Ceilings39 Paint Baseboard and Doors40 Finish Electrical41 Install Outlets42 Install Lights and Switches43 Finish Mechanical44 Instally Supply/Return Grills45 Check Airflow and Circulation46 Cabinets47 Install Kitchen Cabs.48 Install Bathroom Cabs.49 Countertops50 Install Kitchen Counters51 Install Bathroom Counters52 Flooring53 Clean Surface54 Lay Flooring55 Finish Plumbing56 Install Toilets57 Install Sinks and Showerheads58 Exterior 59 Landscape60 Finals61 Subcontractor Walk‐Through62 Final Inspection63 Final Clean

M F T S W S T M F T S W S T M F T S W S T M F T S W S T M F T S W SApr 24, '16 May 8, '16 May 22, '16 Jun 5, '16 Jun 19, '16 Jul 3, '16 Jul 17, '16 Jul 31, '16 Aug 14, '16 Aug 28, '16

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ID Task Name

1 Townhome 22 Foundation3 Survey and layout4 Excavate Footing5 Place Forms6 Lay Membrane and Gravel7 Place Concrete8 Framing9 Frame walls10 Frame second floor11 Frame Roof12 Install Windows and Doors13 Rough Mechanical14 Place A/C Units15 Hang Ducts16 Rough Plumbing17 Install Bathtubs & Showers18 Layout PEX19 Rough Electrical20 Layout21 Pull Romex22 Insulation23 Install Batt Insulation24 Install Attic Insulation25 Drywall26 Hang Drywall27 Tape, Mud, and Texture28 Exterior 29 Siding30 Garage Door31 Install Gutters32 Finish Carpentry33 Install Baseboard34 Finish Door Hardware35 Install Shelving36 Paint37 Paint Exterior38 Paint Walls and Ceilings39 Paint Baseboard and Doors40 Finish Electrical41 Install Outlets42 Install Lights and Switches43 Finish Mechanical44 Instally Supply/Return Grills45 Check Airflow and Circulation46 Cabinets47 Install Kitchen Cabs.48 Install Bathroom Cabs.49 Countertops50 Install Kitchen Counters51 Install Bathroom Counters52 Flooring53 Clean Surface54 Lay Flooring55 Finish Plumbing56 Install Toilets57 Install Sinks and Showerheads58 Exterior 59 Landscape60 Finals61 Subcontractor Walk‐Through62 Final Inspection63 Final Clean

M F T S W S T M F T S W S T M F T S W S T M F T S W S T M F T S W SApr 24, '16 May 8, '16 May 22, '16 Jun 5, '16 Jun 19, '16 Jul 3, '16 Jul 17, '16 Jul 31, '16 Aug 14, '16 Aug 28, '16

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SCHEDULE - MIXED-USE/APARTMENT

OverviewThe Mixed-Use Buildings’ schedules will vary between 10 and 14 months. This variance is a result of the difference in size between our largest and smallest mixed-use buildings. In order to decrease the construction duration, we will utilize top-down construction after the building is sealed. This means we will have crews move from the top floor down, creating an assembly line from one floor to another, thereby allowing multiple tasks to take place simultaneously.

Our apartments will utilize a similar schedule as the mixed-use buildings, except they will not include the steel framing on the first floor for the commercial area, replacing it with apartments. The apartments’ construction durations will vary depending on the size of the building from 9 to 16 months.

Below is the overview schedule for Mixed-Use Building 1.

ID Task Name

1 Mixed‐Use 1

2 Finish Grade

3 Slab on Grade

4 2x2 Columns

5 Steel Framing

6 Timber Framing

7 Building Envelope

8 MEP Rough In

9 Hydraulic Elevator

10 Insulation

11 Drywall

12 Finish Carpentry

13 Paint

14 Cabinets

15 Countertops

16 Finish Mech. & Elec.

17 Flooring

18 Finish Plumbing

19 Landscaping

20 Building Finals

M F T S W S T M F T S W S T M F T Sar 13, '16 May 8, '16 Jul 3, '16 Aug 28, '16 Oct 23, '16 Dec 18, '16 Feb 12, '17 Apr 9, '17 Jun 4

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Project: NAHB Mixed Use BuildDate: Sun 12/21/14


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SCHEDULE - PODIUM

OverviewEach of the two Podium Deck buildings incorporates a parking garage, commercial space, and apartments. Due to this, and their large size, they will take between 18 and 22 months. Although this schedule is ambitious, we believe building them quickly is the best option because they will be one of the focal points of the development, defining Hamilton Crossings for future phases.

ID Task Name

1 Podium 12 Finish Grade3 Podium Decks4 Slab on Grade5 Columns6 Elevated Slab 17 Columns8 Elevated Slab 29 Waterproofing10 Surrounding Structure11 2x2 Columns12 Steel Framing13 Timber Framing14 Building Envelope15 MEP Rough In16 Hydraulic Elevator17 Insulation18 Drywall19 Finish Carpentry20 Paint21 Cabinets22 Countertops23 Finish Mech. & Elec.24 Flooring25 Finish Plumbing26 Landscaping27 Building Finals

5/7 6/11 7/16 8/20 9/2410/2912/3 1/7 2/11 3/18 4/22 5/27 7/1 8/5 9/9 10/1411/1812 1 June 11 August 21 Novembe January 1 March 21 June 1 August 11 October 2

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Project: NAHB Podium SchedulDate: Sun 12/21/14

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PURCHASING

CPS Builders will create a detailed estimate for the entire development to establish an accurate cost per square foot. However, the estimate structure (below) is ideal for simplifying all costs for team members to understand. Each section of the estimate structure is broken down, detailing all materials and labor needed for effective construction operations. The estimate structure is below:

• Permit & Fees• Earthwork & Foundation• Framing • Exterior Finishes• Mechanical• Electrical • Plumping • Insulation• Interior Finishes• Appliances• Landscaping

The detailed estimate will be used to purchase all quantities of materials and contract all work needed to complete Hamilton Crossings in a timely matter. Our purchasing team will execute a search for cost-effective and quality driven subcontractors and vendors. A shortlist will be made of proficient subcontractors and vendors, and negotiations will begin to solidify cost. Once this process is completed and all subcontractors and vendors are selected, the purchasing agents will submit purchase orders two weeks prior to ground breaking to ensure a timely start.

The purchasing team will manage all material and labor cost throughout the project. They will be in close contact with the project managers to keep adequate materials onsite, track lack or abundance of materials, and ensure productive labor throughout the project. All change orders will go through the purchasing team before approval is given. Change orders will be pre-approved by the purchasing agents, then formally approved by the Director of Purchasing before changes are put into effect.


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PROCUREMENT

CPS Builders has created a procurement schedule before project start in order to solve potential schedule delays and cost fluctuations that will result in costly consequences. Our team has determined the most important materials with the longest lead-times. As a proactive procedure, these items will be procured early to ensure a smooth start of construction activaties:

• Elevators (5-6 Weeks)• Metal Roofing (5-6 Weeks)• Granite/Quartz (4-5 Weeks)• Windows (2-3 Weeks)• Concrete (2-3 Weeks)• Lumber (2-3 Weeks)

Contracting out scopes of work early with suppliers of these items will guarantee no schedule delays due to inefficient amount of materials. Along with early contracting, selected suppliers will be mandated to issue CPS Builders a material delivery plan which includes a material protection plan and delivery date and location. Contracts will be negotiated at fixed prices early to lock in reliable subcontractors and suppliers. This will help keep the project properly staffed and on schedule.

The selection of options will need to be carefully controlled in order to ensure that schedule delays or cost overruns do not occur. Potential owners will be required to select all options with a CPS Builder sales associate before ground breaking of the lot they choose. This will allow enough time to procure any additional items, such as larger flooring or different granite countertops, before construction of their new home begins. If the owner chooses to change an option or add an option, they must do so before certain milestones of construction. For example, all countertop and flooring options must be final before wall framing, and all cabinet choices and shower upgrades must be final before exterior finishes are complete. These due dates will ensure no delays occur in the completion of the owner’s home as well as leave trades absent of work.

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Contingency PlanIf for any reason the project becomes unaffordable, CPS Builders will take specified steps its profitability. First, we will determine what the target market wants, as reflected by current trends, to reap as much profit as possible from the remaining project.

Lots will then be reengineered to reflect a more favorable product mix as dictated by the current market. The CEO, CFO, as well as the construction team will also undertake cost cutting initiatives such as targeting over budget subcontractors within the project to improve the bottom line.

Next, depending on the success of early building phases one of three plans will dictate the strategy undertaken:

Plan 1: If the first few building phases are successful, but the market has cooled thus making further phases unprofitable, then the remaining lots and assets will be sold in order to pay of debt. Also, any current profit will be used to repay debt.

Plan 2: If the first few building phases are successful but are unable to attract certain segments within the target market, then the expensive podium structures will be abandoned to reduce costs, and the alternative site plan with less-expensive standard mixed-use buildings and a different product mix will be carried out to capture the demand in the market.

Plan 3: Finally, if the first few phases are unable to attract any market segments thus signifying a complete lack of demand, then the land and assets will be liquidated to repay debt.

CPS Builders believes that these plans will help mitigate financial risk and exposure.

BUSINESS RISK


PROJECT MANAGEMENT

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PROJECTMANAGEMENT

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In order to reduce the effect of a labor shortage, CPS Builders will have multiple subcontractors for specific tasks. For example, if our drywall subcontractor repeatedly runs out of labor, CPS Builders will use another drywall sub that we have under contract to carry the weight. This will help keep our schedule on track.

Lack of Labor

CONSTRUCTION RISK ANALYSIS

Risk AnalysisMagnitude

Risk 1 2 3 4Lack of Labor 2

Tornado 1

Sink Hole 2

Weather 4

Theft 5

(1= Not Likely) (5=Very Likely)

Successful businesses identify and prepare for risk, PCS Builders is no different. We have identified the risks associated with the Hamilton Crossingss Development, and will detail the risks we find most prevalent.

Overview

Unfortunately, some risks cannot be avoided. CPS Builders has no control of whether or not a tornado strikes the Hamilton Crossingss development. Although this situation is highly unlikely, we must still prepare for an Act of God. To do so, we will add force majeure insurance to our insurance portfolio. This will ensure that, while still devastating, Hamilton Crossings will still be insured in an unforseen event, such as a tornado.

Tornado

Sinkholes


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As mentioned previously, our site plan does not call for construction on any known sinkholes. Even so, we have accounted for this risk by using post-tension slab foundations for all structures. These slabs will maintain the structural integrity of the building in the event of a small sinkhole, at least long enough to repair it. However, in an area where sinkholes are not uncommon, we still need a backup plan. In the event we find a sinkhole during construction, we have a few options from which to choose depending on the situation.

The first option is to change the plans so the buildings are supported on case-ons. Case-ons are a cost-effective way to transfer the load of a building from the topsoil to the bedrock. This would create a pier system that supported the building, so that the soil under the building is irrelevant. We could in essence build “bridges” and cantilevers for the buildings to rest on over the sinkholes. This will likely be the most common method of remediation, as the bedrock is relatively shallow (almost always less than 10’, usually close to 6’), which means a backhoe with an auger attachment will easily be able to hit bedrock. This is a very cost-effective technique to eliminate the risks that sinkholes present. It is also extremely effective because unlike other sinkhole treatments, where there is a chance the sinkhole may return, and render the building useless, with this method, the presence of a sinkhole does not usually matter as the bedrock is bearing the weight of the building, as long as the sinkhole does contaminate the surrounding bedrock.

However, in the event the sinkhole is too large to build a foundational bridge or cantilever over it, we will repair the sinkhole according to the method presented in the soils report. This method calls for plugging the sinkhole with shotrock, concrete, stone, and engineered fill. Although this method is more expensive than case-ons, it may be necessary depending on the size and characteristics of the sinkhole.

The third option, which we would like to avoid, is changing the site plan to avoid the sinkhole altogether. This would only be chosen if the repairing the sinkhole was deemed impossible or more expensive than changing the plans.

Sinkholes

Lebanon, TN gets more rain every year than most of the continental United States. Due to this, we have built rain days into our schedules. Although these days are not directly specified, we have created numerous days of float into the schedules to allow for both rain and snow delays.

Weather

Unfortunately, theft is a concern on every construction job. Our laydown and storage areas will be located within a locked fence for the duration of the project. Also, while each respective building is constructed, it will be fenced in as well. Due to these measures, we do not expect theft to be a problem. However, if it proves to be one, we will hire security guards and install cameras as necessary.

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Home Owners Association

Absorption Rates

Loan Structure

Pro Forma

TownhomesApartmentsRetail

MethodologyTownhomesApartmentsConsolidated

FINANCIAL ANALYSIS

AnalysisBreak-Even AnalysisScenario Analysis

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HOME OWNER’S ASSOCIATION

HOA OverviewA Home Owners Association will be established for the Hamilton Crossings Community to ensure a clean, pleasant, and longstanding mixed-use living environment. A reserve study has been conducted to determine the appropriate fees both the Apartment/Condo and Townhome use types will be paying monthly to sustain the Hamilton Crossings lifestyle. The Association has strategically required monthly payments to ensure the fees are received immediately to keep the community operational and mitigate unforeseen cash flow deficits. The fees will be allocated as follows: 66.66% toward current year operations (property management, landscaping, community center expenses, etc.) and 33.33% for current year reserves for long-term capital items (roof and road maintenance, HVAC replacement, etc.). The Board will be comprised of elected community members, Hamilton Crossings staff, some commercial businesses in the Community, and investors. The fees will be structured to increase proportionally with the inflation rate, based on an index. Additional forms of revenue will originate from commercial parking revenue, local advertising in the Association’s bi-weekly newsletter, and community center rental revenue. The HOA will build a strong relationship with its residential and commercial tenants by hosting seasonal community events such as parties, concerts, and gardening seminars, which will be financed through the sum of that year’s HOA fees and additional revenue channels.

HOA – Hamilton Crossings Community A Home Owners Association will be established for the Hamilton Crossings Community to ensure a clean, pleasant, and longstanding mixed-use living environment. A reserve study has been conducted to determine the appropriate fees both the Apartment/Condo and Townhome use types will be paying monthly to sustain the Hamilton Crossings lifestyle. The Association has strategically required monthly payments to ensure the fees are received immediately to keep the community operational and mitigate unforeseen cash flow deficits. The fees will be allocated as follows: 66.66% toward current year operations (property management, landscaping, community center expenses, etc.) and 33.33% for current year reserves for long-term capital items (roof and road maintenance, HVAC replacement, etc.). The Board will be comprised of elected community members, Hamilton Crossings staff, some commercial businesses in the Community, and investors. The fees will be structured to increase proportionally with the inflation rate, based on an index. Additional forms of revenue will originate from commercial parking revenue, local advertising in the Association’s bi-weekly newsletter, and community center rental revenue. The HOA will build a strong relationship with its residential and commercial tenants by hosting seasonal community events such as parties, concerts, and gardening seminars, which will be financed through the sum of that year’s HOA fees and additional revenue channels.

Composition of HOA Fees

Detailed HOA Operational Fee Composition

HOA Budget Budget Summary Monthly 2014 YTD

Revenue Community Service Fees

Multifamily Unit Fee Townhome Unit

Community Center Rental Revenue Commercial Parking Revenue Local Advertising (In Newsletter)

Total Revenue

Expenses 66% of Fee HOA Operations Common Area Maintenance Typical Personal Expenses Common House Operations

Total Expenses

Net Surplus (Deficit) from Operations Reserve (Long Term Savings) 33% of Fee Capital Expenditures


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LOAN STRUCTURE

Loan OverviewTerms of a loan structuring agreement are purely up to negotiation between the developer and lender. The developer’s negotiating power lies in his/her credit history, stage in the development process, capital markets, and position in the space market cycles. The Post-Recession era has all parties more cautious, consequently a significant amount of underwriting has been added to loan structuring agreements. Our loan seeking process will not begin until the real estate is fully entitled, the conditional use process is completed, and design review finalized.

Loan Structuring Terms of a loan structuring agreement are purely up to negotiation between the developer and lender. The developer’s negotiating power lies in his/her credit history, stage in the development process, capital markets, and position in the space market cycles. The Post-Recession era has all parties more cautious, consequently a significant amount of underwriting has been added to loan structuring agreements. Our loan seeking process will not begin until the real estate is fully entitled, the conditional use process is completed, and design review finalized.

Acquisition Loan: Short term financing ( 1- 3 Year Term) Ideally, Acquisition Loan will transition into a Construction Loan. Loan used strictly to buy the desired property, but with the possibility to begin

light demolition. The same lender will be used for the Construction Loan. Lender – Commercial, Regional, or Local Bank. Purchase contract structured such that when the land is purchased,

construction on the site can begin immediately. A predevelopment loan is incredibly difficult to obtain, but possible with

collateral and strong credit histories.

Construction Loan: Short term financing (2 – 4 Year Term) Will pay only interest on the loan throughout the construction period. Intend to begin preleasing activities during this period to mitigate risk and gain

a better Construction Loan agreement. The term will extend 6 to 18 months beyond completion of construction, until

the property income is stabilized. Will assume an interest rate of 7%. After construction is completed and the development is leased, our

development will obtain a permanent loan or sell the project and pay off the total loan amount (principal and accrued interest).

Permanent Loan: Longer Term (10 – 30 Year Term) Offered when the development is near full occupation and income has

stabilized. Seeking Permanent Loan from life insurance company. Must be at least the same size as the Construction Loan. Ideally, obtain the Loan as soon as construction is completed. Want as much flexibility as possible to mitigate risk. Construction Loan’s principal and accrued interest are both paid from the take

out of the Permanent Loan.

“Mini Perm” (OPTIONAL): Temporary safety net to fall back on, to make sure loan is not due

immediately in tough times (3- 5 Year Term). Obtain to mitigate risk due (inflation spike, market change, time to

sell).

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In order to accurately predict the number of townhomes closed per month, construction starts and home sale trends were observed for the StoneBridge and Villas at Five Oaks developments. The chart below summarizes these trends from these top two competitors. According to our research, the average number of townhomes closed per quarter, per subdivision, is between 3 and 7. CPS Builders expects this rate to increase as the state housing market continues to recover. Additionally, CPS Builders believes that the competitive pricing and superior Transit Oriented Development Location will lead to a higher closing rate than the local competition. For these reasons, project executives estimate an absorption rate of 15 townhome per quarter, or 60 townhomes a year.

Townhomes

ABSORPTION RATES

Absorption Rate Townhomes

In order to accurately predict the number of townhomes closed per month, construction starts and home sale trends were observed for the StoneBridge and Villas at Five Oaks developments. The chart below summarizes these trends from these top two competitors. According to our research, the average number of townhomes closed per quarter, per subdivision, is between 3 and 7. CPS Builders expects this rate to increase as the state housing market continues to recover. Additionally, CPS Builders believes that the competitive pricing and superior Transit Oriented Development Location will lead to a higher closing rate than the local competition. For these reasons, project executives estimate an absorption rate of 15 townhome per quarter, or 60 townhomes a year.

Q3

2012 Q4

2012 Q1

2013 Q2

2013 Q3

2013 Q4

2013 Q1

2014 Q2

2014 Q3

2014 Avg

Const. Starts

StoneBridge 24 20 18 10 6 15 18 7 9 14

Villas at Five Oaks 9 11 9 11 8 8 3 4 2 7

Closings

Villas at Five Oaks *TH Market Share: 10%* 7 0 2 3 3 2 5 4 7 4

StoneBridge *TH Market Share: 80%* 5 4 3 11 13 2 6 10 18 8

Residential Apartments

According to Colliers data on Wilson County, the vacancy rate is approximately 3%, thus yielding an approximate occupancy rate of 97%. Also, job growth in the area totaled 28,000 jobs in the last year along with population growth of 2% in the desired age group of 24-30 years of age. This, coupled with data suggesting that unfurnished rented apartments were increasing in demand and completions for these units were at all time lows in the last five years, suggests that absorptions around the 60 to 70% mark (historical averages) are more likely to occur.

Source:


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ApartmentsAccording to Colliers data on Wilson County, the vacancy rate is approximately 3%, thus yielding an approximate occupancy rate of 97%. Also, job growth in the area totaled 28,000 jobs in the last year along with population growth of 2% in the desired age group of 24-30 years of age. This, coupled with data suggesting that unfurnished rented apartments were increasing in demand and completions for these units were at all time lows in the last five years, suggests that absorptions around the 60 to 70% mark (historical averages) are more likely to occur.

RetailIn order to calculate the rental rate per square foot of commercial space as well as the monthly absorption rates, market data from the third quarter of 2014 from Colliers was analyzed. Sub markets in and around Nashville – including Lebanon, were considered. The table below indicates a vacancy rate of 4.8% and a net absorption for the quarter of approximately 9,000 square feet for the MT. Juliet and Lebanon submarkets. Therefore, over the quarter ending October 2014, an average of approximately 3,000 square feet has been absorbed per month.

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132

MethodologyThis project represents a unique situation compared to past CPS Builders projects. Instead of building just one type of product, such as single detached family homes, Hamilton Crossings offers three product types: townhomes, residential apartments, and mixed use. Furthermore, each product type appears throughout the duration of the project with specific starts and stops in order to accommodate the desired product mix the market demands.

Due to this complex product mix, three separate financial reports were compiled, one each for townhomes, residential apartments, and mixed use - as each requires a specific set of input values. To complete these reports the costs, revenues and timing for construction starts, stops, and sales had to be calculated. To do this CPS Builders researched the construction costs, historical and projected selling prices (or rental rates and cap rates for residential apartments and mixed use), and absorption rates. These values were then assessed and used to fill in the input values needed to complete the financial analysis.

Once the financial report for each product type was completed, a final report was created for the whole project by consolidating each individual report. Due to this complex process, a scenario analysis for the whole project was impossible to complete. Instead, CPS Builders believes our final report represents the most likely scenario for the whole project based on market research and historical data.

PRO FORMA

Methodology by Product TypeTownhomes represent one of the three product types within the project, and meet the demand for certain families in the area who want to own versus rent. In order to capture the demand in as many segments of the market as possible, multiple townhome types were created. Hamilton Crossings offers 11 six-unit townhomes, 26 four-unit townhomes structures, and 1 four-unit model townhome structure. Furthermore, there are different sized units within each townhome building ranging, from 1,776 square feet to 1,905 square feet, and two bedrooms to three bedrooms.

When conducting a financial analysis, the various townhome types within the larger townhome product had to be considered. Due to this complex product mix, a weighted average was applied to determine the average size, cost, and selling price of each unit in a four-unit building and in a six-unit building. We believe that this, on average, represents the cost and revenue cash flow for each townhome building and simplifies the input values in order to conduct a financial analysis of the townhomes.

Residential apartments represent the second of the three product types within the project, and meet the demand for certain families in the area who want to rent versus own. Hamilton Crossings offers eleven structures dedicated solely to residential apartments. In order to capture the demand in as many segments of the market as possible, apartments ranging in number of bedrooms from one to three were designed. Multiple floor plans for each bedroom number were also created.

When conducting a financial analysis, the number of bedrooms, as well as floor plan offerings, had to be considered. Due to this wide mix of products, a weighted average was applied to determine the average cost


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per square foot of residential space that was then applied to the average square footage of each apartment building. We believe that this, on average, represents the cost cash flow for each residential apartment building.

Next, average rental rates for each bedroom type were found and then applied across the complexes depending on the mix of one, two, and three bedrooms present in each building to find the revenue cash flow. Overall, we believe that this method simplifies the input values in order to conduct a financial analysis of the residential apartments.

Finally, mixed-use space, defined as having commercial space on the ground floor and apartments on the remaining floors, represents the last product type for Hamilton Crossings and helps meet the demand for families who want to rent in a more metropolitan area. The mixed-use space aims to meet the market demand for community connectivity within the development, thus adding to the overall value of the site.

In order to account for the six buildings that boast mixed-use space, an additional analysis had to be conducted to factor in the cost of commercial space. The total commercial square footage present within the six buildings was calculated. That total was then allocated on a square foot percent basis for each of the six mixed-use buildings. The cost of commercial space could then be spread to each building based on its available commercial space and given the timing for its construction.

Revenues for the project’s commercial space were calculated in a similar manner, but using market research to determine a price per square foot and a monthly absorption rate of rentable space. These total commercial cash flows were then taken into consideration along with the cash flows associated with the residential apartments on the remaining floors, to yield the total project cash flows for the mixed-use buildings. In this way, a financial analysis for mixed-use was implemented alongside the other product types.

The financial analysis of the Hamilton Crossings project also had to include the cost for land development, common area development, and on-site improvements. The total cost for the land development, common area development, and on-site improvements was calculated. A percentage of that total cost was appropriated to the amount of land development, common area development, and on-site improvements for each of the three product types throughout the three phases of the project.

Overall, in order to accommodate such a vast array of product types and cash flows, weighted averages and percentage spreads were frequently applied to simplify the financial analysis. And while this might not represent the exact cash flows that will occur, we believe that this method accounts for all the cash flows present within the project that are likely to occur over the life of the project.

** Even though there are 22 stand-alone non-townhome structures, CPS Builders plans to build several of these structures concurrently, thereby making the final non-townhome count for financial analysis purposes to be 17. Of these 17 non-town home structures, 11 are dedicated solely to apartments.**

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Townhome Pro Forma OverviewCPS Builders evaluated the construction and sale of 104 fourplex townhome units, 66 sixplex townhome units, and 4 fourplex model townhome units. An absorption rate of 5 townhome sales per month, or 60 home sales per year, was assumed for this case. As previously mentioned in our proposal, absorption was determined by identifying and researching townhome closings of neighboring competitors StoneBridge and The Villas at Five Oaks. At a rate of 4 months per fourplex and five months per sixplex, the total duration of the townhome portion of the project is estimated to be 3.5 years, selling off the final two model townhomes at the conclusion of total project construction in early 2023. Net profit for this portion of the Hamilton Crossings Project is estimated at $1,540,425.

PRO FORMA - TOWNHOMES

Absorption Rate 60 units per yearAverage Fourplex Price Per Unit 220,000$ Avg. Cost per SF 50.53$ per sfAverage Sixplex Price Per Unit 223,333$ Avg. Cost per SF 50.00$ per sfAverage Options Revenue Per Unit 4,780$

Total Fourplex Units 104Total Sixplex Units 66Total Fourplex Model Units 4Total Townhome Units 174Unit Price Escalation: 2%Construction Cost Escalation: 2%Loan Interest Rate 4.5%Construction Duration 3.5 years

Town Home Project Duration 8 yearsNet Profit 1,540,425$ All Cash IRR 16.58%Leverage IRR 27.87%

TOWNHOME ASSUMPTIONS AND SUMMARY


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TOWNHOME SALES 2016 2017 2018 2019 2020 2021 2022 2023 Grand Total

Unit Sales: 9 61 63 39 2 174 Cumulative 9 70 133 172 172 172 172 174 174Construction Starts:

Model Units 4 4

Production Units 26 28 12 12 20 36 36 170

Cumulative 30 58 70 82 102 138 174 174 174Completions: Model Units 4 4 Production Units 10 44 12 12 56 36 170 Cumulative 14 58 70 70 82 138 174 174 174Closings: Model Units 2 2 4Production Units 8 45 13 12 56 36 170Cumulative 8 53 68 68 80 136 172 174 174Standing Inventory 2 1 2 2 2 2 2Sold Not Started -17 16 67 90 70 34 -2Sold Not Closed 1 17 65 104 92 36

========= ========= ========= ========= ========= ========= ========= ========= ========= Price Incr Factor 1 1.02 1.04 1.061 1.082 1.104 1.126 1.149 1.149 Cost Escal'n Fctr 1.02 1.04 1.061 1.082 1.104 1.126 1.149 1.149 1.149

REVENUES Sales Revenue 1,773,332 10,182,999 3,436,788 2,900,916 13,646,445 8,964,252 505,422 41,410,154Options Revenue 19,120 95,600 57,360 210,320 114,720 497,120Less: Commissions 53,774 308,358 104,824 87,027 415,703 272,369 15,163 1,257,218Closing Costs 53,774 308,358 104,824 87,027 415,703 272,369 15,163 1,257,218

-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------Total Revenues 1,684,905 9,661,883 3,284,499 2,726,861 13,025,359 8,534,234 475,097 39,392,838

EXPENSES

Land & Acquisition 360,000 360,000On-Site Improvement 553,000 553,000 553,000 1,659,000Common Areas 120,660 241,320 266,070 538,329 538,329 130,395 93,310 15,552 1,943,964Direct Construction 2,425,943 4,446,425 1,787,616 544,183 3,594,566 6,456,231 5,794,921 25,049,885 Options Cost 184,709 114,481 43,020 12,906 83,889 146,985 129,060 715,050Fees & Permits 459,547 428,911 183,819 183,819 306,365 551,457 551,457 2,665,374Property Tax Paid 14,400 14,400 14,400 14,400 14,400 14,400 14,400 14,400 115,200Insurance Expense 26,887 154,179 52,412 43,514 207,851 136,185 7,581 628,609Construction Overhead 289,016 289,016 289,016 289,016 289,016 289,016 289,016 72,254 2,095,364Marketing / Advertising 125,412 214,992 214,992 214,992 214,992 214,992 214,992 71,664 1,487,029Warranty Expense 26,887 154,179 52,412 43,514 207,851 136,185 7,581 628,609

-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------Total Expenses 4,586,461 6,610,902 2,903,758 2,350,645 5,128,584 8,219,178 7,359,525 189,032 37,348,084

Cash Flow Before Loans -2,901,556 3,050,982 380,741 -2,350,645 -2,401,723 4,806,181 1,174,708 286,064 2,044,754

LOAN FLOW REPORT 2016 2017 2018 2019 2020 2021 2022 2023 Grand Total

(%) of Assigned Cost 85.00% 85.00%Total Loan Amount 27,782,420$ 27,782,420.00$ Non-Phase Funding 4,107,293$ 4,107,293.00$ Phase Funding 4,500,045$ 4,200,042$ 1,872,739$ 1,872,739$ 3,247,329$ 5,845,193$ 2,137,040$ 23,675,127.00$ Annual Interest(%) 4.50% 4.50% 4.50% 4.50% 4.50%Interest Reserve 91,172$ 131,184$ 135,480$ 93,569$ 44,271$ Loan Fees 43,037$ 21,000$ 9,364$ 9,364$ 16,237$ 29,226$ 10,685$ 138,912.00$ Begin Loan Balance 1,712,489$ 1,971,055$ 4,423,406$ 1,495,490$ Draw Interest 27,283$ 25,521$ 10,893$ 24,258$ 90,235$ 127,783$ 59,444$ 365,416.00$ Draw Costs 3,154,161$ 5,819,420$ 2,447,498$ 1,946,797$ 4,565,550$ 7,226,990$ 2,241,036$ 15,552$ 27,417,003.00$ Repayments (1,468,956)$ (7,557,430)$ (2,458,391)$ (2,203,433)$ (10,282,689)$ (3,795,970)$ (15,552)$ (27,782,420.00)$ End Loan Balance 1,712,489$ 1,971,055$ 4,423,406$ 1,495,490$

Interest Payment 27,283$ 25,521$ 10,893$ 24,258$ 90,235$ 127,783$ 59,444$ 365,416.00$

CASH FLOW ANALYSIS: 2016 2017 2018 2019 2020 2021 2022 2023 Grand Total

Cash Flow Before Loans (2,901,556)$ 3,050,982$ 380,741$ (2,350,645)$ (2,401,723)$ 4,806,181$ 1,174,708$ 286,064$ 2,044,754$ Cumulative Cash B4 Loans (2,901,556)$ 149,426$ 530,167$ (1,820,478)$ (4,222,200)$ 583,981$ 1,758,689$ 2,044,754$ 2,044,754$

Loan Fees (43,037)$ (21,000)$ (9,364)$ (9,364)$ (16,237)$ (29,226)$ (10,685)$ (138,912)$ Interest Paid (27,283)$ (25,521)$ (10,893)$ (24,258)$ (90,235)$ (127,783)$ (59,444)$ (365,416)$ Loan Draws 3,181,444$ 5,844,941$ 2,458,391$ 1,971,055$ 4,655,785$ 7,354,773$ 2,300,479$ 15,552$ 27,782,420$ Loan Repayments (1,468,956)$ (7,557,430)$ (2,458,391)$ (2,203,433)$ (10,282,689)$ (3,795,970)$ (15,552)$ (27,782,420)$

-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------Cash Flow Before Equity (1,259,387)$ 1,291,972$ 360,484$ (413,211)$ (55,843)$ 1,721,256$ (390,911)$ 286,064$ 1,540,425$ Cumulative Cash B4 Equity (1,259,387)$ 32,585$ 393,069$ (20,142)$ (75,985)$ 1,645,272$ 1,254,361$ 1,540,425$ 1,540,425$

Equity Contributions 1,318,086$ 527,440$ 1,845,526$ Returns of Equity (1,845,526)$ (1,845,526)$ Profit Distribution (1,122,492)$ (417,933)$ (1,540,425)$

HAMILTON CROSSINGS TOWNHOME PRO FORMA

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PRO FORMA - APARTMENTS/MIXED-USE

Apartment/Mixed-Use Pro Forma OverviewA separate pro forma was created for the apartment/mix-use portion of project, in order to determine the overall profitability of these structures. There are a total of 685 apartment units and 165,568 leasable square feet within the Hamilton Crossings development. While these structures bear a heavy cost burden throughout most of the project, the projected net operating incomes that they will generate will help to offset any prolonged negative cash flows. In order to fully recover the incurred cost from building these structures, they will be held for three years after completion, and thereafter sold off to prospective property owners and investors. An additional reason for the three year hold prior to sale is to stabilize the project, thereby maximizing the sales price that inevitably comes with a fully leased income generating property. Assuming an 8% going out cap rate, obtained from Colliers real estate market research, profits from the sale of these structures alone are projected to be upwards of $34.5 million, clearly distinguishing this project as the more profitable one of the development.

Absorption Rate (Apartments) 12 units per monthAbsorption Rate (Commerc. Space 3000 sf per monthTotal Fourplex Units 104Total Sixplex Units 66Total Fourplex Model Units 4Total 1 br Units 220Total 2 br Units 313Total 3 br Units 152Total Apartment Units 685Total Commercial Space Leased 165,568 sf

Mixed Use Project Duration 8 yearsTotal Project Duration **three year holding period** 11 yearsGoing Out Cap Rate 8%Total Project Net Profit 33,807,466$ NPV Leveraged 4,969,882$ All Cash IRR 7.85%Leverage IRR 29.58%

APMT/MIXED‐USE PRO FORMA ASSUMPTIONS AND SUMMARY

e)


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137

OPERATING REPORT 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Grand Total

APARTMENT UNITS:

Total Units 685 685 685 685 685 685 685 685 685 685 685Units Rented 85 121 383 437 535 635 685 685 685 685 685(%) Rented 12.40% 17.70% 55.90% 63.80% 78.10% 92.70% 100.00% 100.00% 100.00% 100.00% 100.00%

Rental Units Gross Rent 344,631$ 1,218,176$ 4,442,331$ 6,304,619$ 8,164,461$ 9,674,204$ 11,138,153$ 11,294,190$ 11,294,190$ 11,294,190$ 75,169,143$ Parking Gross Rent 36,575$ 221,135$ 436,496$ 625,715$ 667,704$ 697,751$ 697,751$ 697,751$ 697,751$ 697,751$ 5,476,380$ (-) Vacancy / Reserve 19,060$ 71,966$ 243,941$ 346,517$ 441,608$ 518,598$ 591,795$ 599,597$ 599,597$ 599,597$ 4,032,276$

-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------Effective Gross Income 362,145$ 1,367,345$ 4,634,886$ 6,583,817$ 8,390,557$ 9,853,357$ 11,244,109$ 11,392,343$ 11,392,343$ 11,392,343$ 76,613,247$ Less: Operating ExpensesInsurance 21,029$ 37,132$ 38,245$ 39,393$ 40,575$ 41,792$ 41,792$ 41,792$ 41,792$ 41,792$ 385,333$ Management 30,496$ 115,145$ 390,306$ 554,427$ 706,573$ 829,756$ 946,872$ 959,355$ 959,355$ 959,355$ 6,451,642$ Maintenance 38,121$ 143,931$ 487,883$ 693,033$ 883,216$ 1,037,195$ 1,183,590$ 1,199,194$ 1,199,194$ 1,199,194$ 8,064,552$ Utilities 47,651$ 179,914$ 609,853$ 866,292$ 1,104,021$ 1,296,494$ 1,479,488$ 1,498,993$ 1,498,993$ 1,498,993$ 10,080,690$ Other Operating Expense 33,355$ 125,940$ 426,897$ 606,404$ 772,814$ 907,546$ 1,035,642$ 1,049,295$ 1,049,295$ 1,049,295$ 7,056,483$ Total Operating Expense 170,652$ 602,061$ 1,953,185$ 2,759,549$ 3,507,199$ 4,112,784$ 4,687,384$ 4,748,628$ 4,748,628$ 4,748,628$ 32,038,700$

Apartment Net Operating Income 191,493$ 765,284$ 2,681,701$ 3,824,268$ 4,883,357$ 5,740,573$ 6,556,724$ 6,643,715$ 6,643,715$ 6,643,715$ 44,574,546$

========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= =========COMMERCIAL / INDUSTRIAL: Leasable Square Feet 165,568 165,568 165,568 165,568 165,568 165,568 165,568 165,568 165,568 165,568 165,568 Leased Square Feet 14,835 20,835 56,835 92,835 128,835 164,835 165,568 165,568 165,568 165,568 165,568 Vacant Square Feet 150,733 144,733 108,733 72,733 36,733 733 (%) Occupied 9% 13% 34% 56% 78% 100% 100% 100% 100% 100% 100%

Gross Rent 372,525$ 947,868$ 2,506,311$ 4,833,665$ 7,253,110$ 9,767,400$ 11,114,267$ 11,336,553$ 11,563,284$ 11,794,549$ 71,489,534$ (-) Vacancy / Reserve 18,626$ 47,393$ 125,316$ 241,683$ 362,656$ 488,370$ 555,713$ 566,828$ 578,164$ 589,727$ 3,574,477$ Expense Reimbursement 238,416$ 598,464$ 1,548,864$ 2,931,264$ 4,313,664$ 5,696,064$ 6,357,811$ 6,357,811$ 6,357,811$ 6,357,811$ 40,757,981$

-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------Effective Gross Income 592,315$ 1,498,939$ 3,929,860$ 7,523,246$ 11,204,119$ 14,975,094$ 16,916,365$ 17,127,536$ 17,342,931$ 17,562,633$ 108,673,038$ Less: Operating ExpensesReimbursable:Global Reimbursable 238,416$ 598,464$ 1,548,864$ 2,931,264$ 4,313,664$ 5,696,064$ 6,357,811$ 6,357,811$ 6,357,811$ 6,357,811$ 40,757,981$ Non-Reimbursable:Global Non-Reimbursable 357,624$ 897,696$ 2,323,296$ 4,396,896$ 6,470,496$ 8,544,096$ 9,536,717$ 9,536,717$ 9,536,717$ 9,536,717$ 61,136,971$ Total Operating Expense 596,040$ 1,496,160$ 3,872,160$ 7,328,160$ 10,784,160$ 14,240,160$ 15,894,528$ 15,894,528$ 15,894,528$ 15,894,528$ 101,894,952$

Commercial Net Operating Income (3,725)$ 2,779$ 57,700$ 195,086$ 419,959$ 734,934$ 1,021,837$ 1,233,008$ 1,448,403$ 1,668,105$ 6,778,086$ ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= =========

Total net operating income 187,768$ 768,063$ 2,739,401$ 4,019,354$ 5,303,316$ 6,475,507$ 7,578,562$ 7,876,723$ 8,092,118$ 8,311,820$ 51,352,632$

CONSTRUCTION COST: 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Grand TotalAcquisition Cost:

Purchase Price 840,000$ 840,000$ -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------

Acquisition Cost 840,000$ 840,000$ Land Value 840,000$ 840,000$

Hard Costs: On-Site Improvement 1,336,417$ 1,336,416$ 1,198,167$ 3,871,000$ Direct Construction 6,220,647$ 14,690,680$ 29,961,971$ 7,967,755$ 4,643,409$ 5,940,573$ 7,933,913$ 1,939,946$ 79,298,894$ Hard Cost Contingency 345,321$ 708,759$ 1,343,927$ 362,964$ 208,952$ 297,029$ 396,696$ 96,997$ 3,760,645$

-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------Total Hard Costs 7,902,385$ 16,735,855$ 32,504,066$ 8,330,719$ 4,852,361$ 6,237,601$ 8,330,608$ 2,036,944$ 86,930,539$

Operating Expenses: Architects / Engineers 200,000$ 200,000$ Leasing Commission 41,400$ 19,886$ 167,889$ 163,910$ 251,793$ 328,122$ 17,550$ 990,551$ Property Tax 2,400$ 33,600$ 33,600$ 33,600$ 33,600$ 33,600$ 33,600$ 33,600$ 33,600$ 33,600$ 33,600$ 338,400$ Management 20,790$ 35,640$ 35,640$ 35,640$ 35,640$ 35,640$ 35,640$ 35,640$ 35,640$ 35,640$ 341,550$ Building Maintenance 16,996$ 29,136$ 29,136$ 29,136$ 29,136$ 29,136$ 29,136$ 29,136$ 29,136$ 29,136$ 279,220$ Soft Cost Contingency 72$ 1,341$ 2,261$ 4,271$ 6,366$ 8,543$ 10,806$ 2,015$ 2,015$ 2,015$ 2,015$ 41,720$

-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------Total Operating Expesnes 202,472$ 114,127$ 120,523$ 270,536$ 268,652$ 358,712$ 437,304$ 117,941$ 100,391$ 100,391$ 100,391$ 2,191,441$

-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------

Sub-Total Project Cost 8,944,857$ 16,849,981$ 32,624,589$ 8,601,256$ 5,121,013$ 6,596,314$ 8,767,912$ 2,154,885$ 100,391$ 100,391$ 100,391$ 89,961,980$ Construction Loan Fee 382,430$ 382,430$

Construction Loan Interest 127,429$ 547,047$ 1,523,155$ 1,098,232$ 970,950$ 627,386$ 381,933$ 34,144$ 5,310,275$ Negative Operating C/F 6,856$ 51,003$ 185,899$ 201,848$ 114,649$ 32,121$ 592,375$

-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------Total Project Cost 9,454,716$ 17,403,884$ 34,198,747$ 9,885,386$ 6,293,810$ 7,338,348$ 9,149,845$ 2,221,150$ 100,391$ 100,391$ 100,391$ 96,247,060$

LOAN FLOW REPORT: 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Grand Total

Acq & Construction Loan(s):

Loan Fee(s) 382,430$ 382,430$ Begin Loan Balance 7,642,595$ 23,131,191$ 59,875,504$ 67,652,776$ 62,983,433$ 65,549,475$ 68,220,062$ Draw Interest 127,429$ 577,648$ 1,840,051$ 2,565,341$ 2,666,950$ 2,574,596$ 2,679,489$ 686,759$ 13,718,262$ Draw Costs 8,487,287$ 16,849,981$ 32,286,886$ 5,143,662$ 62,767,816$ Repayment 7,351,858$ 69,134,221$ 76,486,078$

End Loan Balance 8,614,716$ 26,042,346$ 60,169,282$ 67,878,285$ 63,193,378$ 65,767,973$ 68,447,462$

Interest Payment 127,429$ 577,648$ 1,840,051$ 2,565,341$ 2,666,950$ 2,574,596$ 2,679,489$ 686,759$ 13,718,262$ ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= =========

Permanent Loan(s) #1: Loan Funding 69,134,221$ 76,486,078$ Loan Fee 345,671$ 382,430$ Begin Loan Balance 74,287,383$ 71,873,338$ 69,338,691$ 66,677,392$ 66,677,392$ Debt Service 4,640,889$ 6,009,650$ 6,009,651$ 6,009,652$ 23,917,259$ Interest Expense 2,832,736$ 3,585,778$ 3,464,685$ 3,337,515$ 13,880,883$ Reduce Principal 1,808,153$ 2,423,872$ 2,544,966$ 2,672,136$ 10,036,376$

Endng Loan Balance 74,090,677$ 71,666,805$ 69,121,839$ 66,449,703$ 66,449,703$

CASH FLOW SUMMARY: 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Grand Total

APARTMENT & COMMERCIAL PROJECTS

(-) Construction Loan Interest 127,429$ 547,047$ 1,523,155$ 1,098,232$ 970,950$ 627,386$ 381,933$ 34,144$ 5,310,275$ (+) Construction Loan Draws (70% of costs)8,614,716$ 17,427,630$ 34,126,937$ 7,709,003$ 2,666,950$ 2,574,596$ 2,679,489$ 686,759$ 76,486,078$ (-) Construction Loan Repay 7,351,858$ 69,134,221$ 76,486,078$ (+) Permanent Loan Funds 7,351,858$ 69,134,221$ 76,486,078$ Operating Cash Flow 157,166$ 451,168$ 1,272,291$ 2,108,392$ 2,821,499$ 3,643,344$ 1,939,387$ 1,867,073$ 2,082,467$ 2,302,169$ 18,644,955$

-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------Cash Flow before Sale (840,000)$ 187,768$ 430,360$ (718,193)$ (1,316,620)$ (1,827,605)$ (2,827,013)$ 437,117$ 1,766,682$ 1,982,076$ 2,201,777$ (523,652)$

Gross Sale Price **8% CAP RATE** 103,897,752$ 103,897,752$

(-) Selling Expense 3,116,933$ 3,116,933$ (-) Loan Payoff 66,449,703$ 66,449,703$

Pre-Tax Sale Proceeds 34,331,117$ 34,331,117$

Pre-Tax Sale Proceeds 34,331,117$ 34,331,117$ CASH FLOW before CAPITAL (840,000)$ 187,768$ 430,360$ (718,193)$ (1,316,620)$ (1,827,605)$ (2,827,013)$ 437,117$ 1,766,682$ 1,982,076$ 36,532,894$ 33,807,466$

(+) Equity Contributions 840,000$ 100,065$ 1,316,620$ 1,887,588$ 2,818,424$ 732,259$ 7,694,956$ (-) Returns of Equity 1,220,770$ 1,766,682$ 1,982,076$ 2,725,429$ (7,694,957)$ (-) Profit Distribution 33,807,466$ 33,807,466$

HAMILTON CROSSINGS APMT/ MIXED-USE PRO FORMA

FINANCIALANALYSIS

138

Consolidated SummaryIn order to capture the entire financial analysis of the project, a third pro forma analysis was conducted, combining the townhome pro forma with the apartment and mixed-use pro forma. Over the course of the 11 year project duration, a net profit of $35,347,891 will be realized on the initial land purchase amount of $1,200,000. After factoring in both a construction loan, and permanent loan, a leveraged internal rate of return of 29.29% and leveraged NPV of $5,433,753 is achieved.

PRO FORMA - CONSOLIDATED

Absorption Rate (Townhomes) 60 units per yearAbsorption Rate (Apartments) 12 units per monthAbsorption Rate (Commerc. Space) 3000 sf per monthTotal Fourplex Units 104Total Sixplex Units 66Total Fourplex Model Units 4Total 1 br Units 174Total 2 br Units 2%Total 3 br Units 2%Total Apartment Units 4.5%Total Commercial SF Leased yearsTownhome Project Duration 3 yearsMixed Use Project Duration 8 yearsTotal Project Duration **three year holding period** 11 yearsTotal Project Net Profit 35,347,891$ NPV Leveraged 5,433,753$ All Cash IRR 8.02%Leverage IRR 29.29%

CONSOLIDATION PRO FORMA ASSUMPTIONS AND SUMMARY

165,568 sf

**3 year holding period**


FINANCIALANALYSIS

139

CONSOLIDATED PROJECT REVENUES 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 GRAND TOTAL

TOWNHOMES PROJECT Unit Sales: 9 61 63 39 2 174 Cumulative 9 70 133 172 172 172 172 174 174 174 174 174

Construction Starts: Model Units 4 4 Production Units 26 28 12 12 20 36 36 170 Cumulative 30 58 70 82 102 138 174 174 174 174 174 174

Completions: Model Units 4 4 Production Units 10 44 12 12 56 36 170 Cumulative 14 58 70 70 82 138 174 174 174 174 174 174Closings: Model Units 2 2 4 Production Units 8 45 13 12 56 36 170 Cumulative 8 53 68 68 80 136 172 174 174 174 174 174Standing Inventory 2 1 2 2 2 2 2Sold Not Started -17 16 67 90 70 34 -2Sold Not Closed 1 17 65 104 92 36

REVENUES Sales Revenue 1,773,332.0$ 10,182,999.0$ 3,436,788.0$ 2,900,916.0$ 13,646,445.0$ 8,964,252.0$ 505,422.0$ 41,410,154 Options Revenue 19,120.0$ 95,600.0$ 57,360.0$ 210,320.0$ 114,720.0$ 497,120 Less: Commissions 53,774.0$ 308,358.0$ 104,824.0$ 87,027.0$ 415,703.0$ 272,369.0$ 15,163.0$ 1,257,218 Closing Costs 53,774.0$ 308,358.0$ 104,824.0$ 87,027.0$ 415,703.0$ 272,369.0$ 15,163.0$ 1,257,218

-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------

TOTAL PROJECT REVENUES 1,684,905.0$ 9,661,883.0$ 3,284,499.0$ 2,726,861.0$ 13,025,359.0$ 8,534,234.0$ 475,097.0$ 39,392,838

APARTMENTS & COMMERCIAL PROJECT

APARTMETNS Total Units 685 685 685 685 685 685 685 685 685 685 685Units Rented 85 121 383 437 535 635 685 685 685 685 685(%) Rented 12.40% 17.70% 55.90% 63.80% 78.10% 92.70% 100.00% 100.00% 100.00% 100.00% 100.00%

Rental Units Gross Rent 344,631$ 1,218,176$ 4,442,331$ 6,304,619$ 8,164,461$ 9,674,204$ 11,138,153$ 11,294,190$ 11,294,190$ 11,294,190$ 75,169,143Parking Gross Rent 36,575$ 221,135$ 436,496$ 625,715$ 667,704$ 697,751$ 697,751$ 697,751$ 697,751$ 697,751$ 5,476,380(-) Vacancy / Reserve 19,060$ 71,966$ 243,941$ 346,517$ 441,608$ 518,598$ 591,795$ 599,597$ 599,597$ 599,597$ 4,032,276

-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------Effective Gross Income 362,145$ 1,367,345$ 4,634,886$ 6,583,817$ 8,390,557$ 9,853,357$ 11,244,109$ 11,392,343$ 11,392,343$ 11,392,343$ 76,613,247

Total Operating Expense 170,652$ 602,061$ 1,953,185$ 2,759,549$ 3,507,199$ 4,112,784$ 4,687,384$ 4,748,628$ 4,748,628$ 4,748,628$ 32,038,700

NET OPER INCOME: RENTAL UNITS 191,493$ 765,284$ 2,681,701$ 3,824,268$ 4,883,357$ 5,740,573$ 6,556,724$ 6,643,715$ 6,643,715$ 6,643,715$ 44,574,546

COMMERCIAL PROJECT

Leasable Square Feet 165,568 165,568 165,568 165,568 165,568 165,568 165,568 165,568 165,568 165,568 165,568 Leased Square Feet 14,835 20,835 56,835 92,835 128,835 164,835 165,568 165,568 165,568 165,568 165,568 Vacant Square Feet 150,733$ 144,733$ 108,733$ 72,733$ 36,733$ 733$ (%) Occupied 9% 13% 34% 56% 78% 100% 100% 100% 100% 100% 100%

Gross Rent 372,525$ 947,868$ 2,506,311$ 4,833,665$ 7,253,110$ 9,767,400$ 11,114,267$ 11,336,553$ 11,563,284$ 11,794,549$ 71,489,534(-) Vacancy / Reserve 18,626$ 47,393$ 125,316$ 241,683$ 362,656$ 488,370$ 555,713$ 566,828$ 578,164$ 589,727$ 3,574,477Expense Reimbursement 238,416$ 598,464$ 1,548,864$ 2,931,264$ 4,313,664$ 5,696,064$ 6,357,811$ 6,357,811$ 6,357,811$ 6,357,811$ 40,757,981

-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------Effective Gross Income 592,315$ 1,498,939$ 3,929,860$ 7,523,246$ 11,204,119$ 14,975,094$ 16,916,365$ 17,127,536$ 17,342,931$ 17,562,633$ 108,673,038

Total Operating Expense 596,040$ 1,496,160$ 3,872,160$ 7,328,160$ 10,784,160$ 14,240,160$ 15,894,528$ 15,894,528$ 15,894,528$ 15,894,528$ 101,894,952

NET OPER INCOME: COMMERCIAL (3,725)$ 2,779$ 57,700$ 195,086$ 419,959$ 734,934$ 1,021,837$ 1,233,008$ 1,448,403$ 1,668,105$ 6,778,086

TOTAL NET OPERATING INCOME 187,768$ 768,063$ 2,739,401$ 4,019,354$ 5,303,316$ 6,475,507$ 7,578,561$ 7,876,723$ 8,092,118$ 8,311,820$ 51,352,632

Total Project Revenue Before Construction Expenses 1,684,905.0$ 9,849,651$ 4,052,562$ 2,739,401$ 6,746,215$ 18,328,675$ 15,009,741$ 8,053,658$ 7,876,723$ 8,092,118$ 8,311,820$ 90,745,470

TOTAL PROJECT CONSTRUCTION EXPENSES

Land & Acquisition 1,200,000$ 1,200,000$ On-Site Improvement 1,889,417$ 1,889,416$ 1,198,167$ 553,000$ 5,530,000$ Common Areas 120,660$ 241,320$ 266,070$ 538,329$ 538,329$ 130,395$ 93,310$ 15,552$ 1,943,964$ Direct Construction 8,646,590$ 19,137,105$ 31,749,587$ 8,511,938$ 8,237,975$ 12,396,803$ 13,728,834$ 1,939,946$ 104,348,779$ Options Cost 184,709$ 114,481$ 43,020$ 12,906$ 83,889$ 146,985$ 129,060$ 715,050$ Property Tax Payments 16,800$ 48,000$ 48,000$ 48,000$ 48,000$ 48,000$ 48,000$ 48,000$ 33,600$ 33,600$ 33,600$ 453,600$ Misc Cost #3 26,887$ 154,179$ 52,412$ 43,514$ 207,851$ 136,185$ 7,581$ 628,609$ Hard Cost Contingency 345,321$ 708,759$ 1,343,927$ 362,964$ 208,952$ 297,029$ 396,696$ 96,997$ 3,760,645$ Architectural / Engineering 200,000$ 200,000$ Misc Cost #6 16,996$ 29,136$ 29,136$ 29,136$ 29,136$ 29,136$ 29,136$ 29,136$ 29,136$ 29,136$ 279,220$ Misc Cost #9 289,016$ 289,016$ 289,016$ 289,016$ 289,016$ 289,016$ 289,016$ 72,254$ 2,095,364$ Leasing Commission 41,400$ 19,886$ 167,889$ 163,910$ 251,793$ 328,122$ 17,550$ 990,551$ Management 20,790$ 35,640$ 35,640$ 35,640$ 35,640$ 35,640$ 35,640$ 35,640$ 35,640$ 35,640$ 341,550$ Marketing/Advertising 125,412$ 214,992$ 214,992$ 214,992$ 214,992$ 214,992$ 214,992$ 71,664$ 1,487,029$ Warranty Expense 26,887$ 154,179$ 52,412$ 43,514$ 207,851$ 136,185$ 7,581$ 628,609$ Soft Cost Contingency 72$ 1,341$ 2,261$ 4,271$ 6,366$ 8,543$ 10,806$ 2,015$ 2,015$ 2,015$ 2,015$ 41,720$

Total Combined Disbursements 13,071,770$ 23,031,972$ 35,344,527$ 10,768,081$ 9,943,231$ 14,264,035$ 15,575,981$ 2,343,917$ 100,391$ 100,391$ 100,391$ 124,644,690$

LOAN FLOW REPORT: 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 GRAND TOTAL

Acq & Construction Loan(s): Loan Fee(s) 425,467$ 21,000$ 9,364$ 9,364$ 16,237$ 29,226$ 10,685$ 521,342$ Begin Loan Balance 9,041,056$ 23,131,191$ 60,354,643$ 69,177,774$ 66,005,129$ 68,998,908$ 68,220,062$ Draw Interest 154,712$ 603,169$ 1,850,944$ 2,589,599$ 2,757,185$ 2,702,379$ 2,738,932$ 686,759$ 14,083,679$ Draw Costs 11,641,449$ 22,669,402$ 34,734,384$ 7,090,459$ 4,565,550$ 7,226,990$ 2,241,036$ 15,552$ 90,184,820$ Repayment 1,468,956$ 7,557,430$ 2,458,391$ 9,555,291$ 10,282,689$ 3,795,970$ 69,149,773$ 104,268,498$ End Loan Balance 10,327,205$ 26,042,346$ 60,169,282$ 69,849,340$ 67,616,784$ 67,263,464$ 68,447,462$

Interest Payment 154,712$ 603,169$ 1,850,944$ 2,589,599$ 2,757,185$ 2,702,379$ 2,738,932$ 686,759$ 14,083,679$ ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= =========

Permanent Loan(s) #1: Loan Funding 69,134,221$ 76,486,078$ Loan Fee 345,671$ 382,430$ Begin Loan Balance 74,287,383$ 71,873,338$ 69,338,691$ 66,677,392$ 66,677,392$ Debt Service 4,640,889$ 6,009,650$ 6,009,651$ 6,009,652$ 23,917,259$ Interest Expense 2,832,736$ 3,585,778$ 3,464,685$ 3,337,515$ 13,880,883$ Reduce Principal 1,808,153$ 2,423,872$ 2,544,966$ 2,672,136$ 10,036,376$ Endng Loan Balance 74,090,677$ 71,666,805$ 69,121,839$ 66,449,703$ 66,449,703$

CASH FLOW SUMMARY: 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 GRAND TOTAL

Apartment & Commercial Projects

(-) Acquisition Cost 840,000$ 840,000$ -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------

(-) INITIAL OUTLAY 840,000$ 840,000$

(-) Development/Capital Cost 8,104,857$ 16,849,981$ 32,624,589$ 8,601,256$ 5,121,013$ 6,596,314$ 8,767,912$ 2,154,885$ 100,391$ 100,391$ 100,391$ 89,121,980$ (-) Construction Loan Fee 382,430$ 382,430$ (-) Construction Loan Interest 127,429$ 547,047$ 1,523,155$ 1,098,232$ 970,950$ 627,386$ 381,933$ 34,144$ 5,310,275$ (+) Construction Loan Draws 8,614,716$ 17,427,630$ 34,126,937$ 7,709,003$ 2,666,950$ 2,574,596$ 2,679,489$ 686,759$ 76,486,078$ (-) Construction Loan Repay 7,351,858$ 69,134,221$ 76,486,078$ (+) Permanent Loan Funds 7,351,858$ 69,134,221$ 76,486,078$ Operating Cash Flow 157,166$ 451,168$ 1,272,291$ 2,108,392$ 2,821,499$ 3,643,344$ 1,939,387$ 1,867,073$ 2,082,467$ 2,302,169$ 18,644,955$

-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------Cash Flow before Sale (840,000)$ 187,768$ 430,360$ (718,193)$ (1,316,620)$ (1,827,605)$ (2,827,013)$ 437,117$ 1,766,682$ 1,982,076$ 2,201,777$ (523,652)$

Gross Sale Price **8% CAP RATE** 103,897,752$ 103,897,752$

(-) Selling Expense 3,116,933$ 3,116,933$ (-) Loan Payoff 66,449,703$ 66,449,703$

Pre-Tax Sale Proceeds 34,331,117$ 34,331,117$

CASH FLOW before CAPITAL (840,000)$ 187,768$ 430,360$ (718,193)$ (1,316,620)$ (1,827,605)$ (2,827,013)$ 437,117$ 1,766,682$ 1,982,076$ 36,532,894$ 33,807,466$ ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= =========

TOWNHOME PROJECT: Cash Flow Before Loans (2,901,556)$ 3,050,982$ 380,741$ (2,350,645)$ (2,401,723)$ 4,806,181$ 1,174,708$ 286,064$ 2,044,754$

(-) Loan Fees 43,037$ 21,000$ 9,364$ 9,364$ 16,237$ 29,226$ 10,685$ 138,912$ (-) Interest Paid 27,283$ 25,521$ 10,893$ 24,258$ 90,235$ 127,783$ 59,444$ 365,416$ (+) Loan Draws 3,181,444$ 5,844,941$ 2,458,391$ 1,971,055$ 4,655,785$ 7,354,773$ 2,300,479$ 15,552$ 27,782,420$ (-) Loan Repayments 1,468,956$ 7,557,430$ 2,458,391$ 2,203,433$ 10,282,689$ 3,795,970$ 15,552$ 27,782,420$

-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------CASH FLOW before CAPITAL (1,259,387)$ 1,291,972$ 360,484$ (413,211)$ (55,843)$ 1,721,256$ (390,911)$ 286,064$ 1,540,425$

========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= =========TOTAL CASH FLOW before CAPITAL (2,099,387)$ 1,479,740$ 790,844$ (1,131,404)$ (1,372,463)$ (106,349)$ (3,217,924)$ 723,181$ 1,766,682$ 1,982,076$ 36,532,894$ 35,347,891$

(+) Equity Contributions 2,158,086$ 174,584$ 649,284$ 4,577,823$ 7,559,777$ (-) Returns of Equity 1,162,557$ 1,463,459$ 1,766,682$ 1,982,076$ 1,185,003$ 7,559,777$ (-) Profit Distribution 35,347,891$ 35,347,891$

CONSOLIDATED TOWNHOME & MIXED USE PRO FORMA

HAMILTON CROSSINGS

FINANCIALANALYSIS

140

Break-Even TownhomesThe townhome portion of the Hamilton Crossings project is expected to break-even in 2017 and again in 2020. The reason for this project breaking even twice is that town home construction stops in the beginning of 2019, in order to accommodate the building of four large apartment structure. Townhome production resumes at the end of 2019, with cash flows recovering in 2020.

ANALYSIS - BREAK-EVEN


FINANCIALANALYSIS

141

Break-Even Mixed-Use & ApartmentsThe mixed-use and apartment portions of the Hamilton Crossings project are expected to briefly break even in the beginning of 2017 through the beginning of 2018, and again in 2023 or year 8 of the project These portions of the project incur higher construction costs than the townhomes because both three-story apartment and mixed-use structures are being built and rented, rather than sold. Upon completion of mixed-use and apartment construction in January of 2023, there will be a three year holding period in order to reap as much rental revenue as possible. These building will then be sold off to investors/property owners in 2026 for an estimated profit of $34,331,117

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142

ANALYSIS - BREAK-EVEN

Break-Even OverallThe overall project is expected to break-even in late 2016, again in 2021, and for a final time in late 2022 (year seven). The project breaks even several times throughout the total duration because large, high cost apartment structures continue to be built as townhomes are sold and mixed-use space is rented up. When construction ceases in early 2023, positive cash flows begin to come in, pushing the profits out of the red and into the green. Overall project profits of $35,347,891 will hopefully overshadow the seven year wait until the final break-even point is achieved.


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143

ANALYSIS - SCENARIO

Scenario Analysis - OverviewIt is important to recognize the potential any building project has for success and failure. CPS Builders conducted various scenario analyses to ensure profitability on all fronts. Given the limitations of CPS Builders’ financial analysis software, scenario analyses could only be run for the townhomes sales. In order to simplify our financial analysis, average metrics for sales price, square footage, and building durations were used throughout the analyses. The results of our scenario analyses are listed below.

Base CaseThe base case scenario assumes an absorption rate of 5 townhome sales per month. This absorption rate was determined by examining recent quarterly home closings from local competitors, StoneBridge and Villas at Five Oaks. An average selling price of $221,666 was assumed for all townhome sales, in order to simplify our analysis. This average selling price slightly undercuts our two competitors, and will therefore sustain a consistent demand. Assuming that price, gross sales revenues are estimated to be $41,921,737.

Similar to selling price, averages for cost per square foot, and building square footage were calculated in order to determine the average construction cost per townhome.

Scenario Analysis

It is important to recognize the potential any building project has for success and failure. CPS Builders conducted various scenario analyses to ensure profitability on all fronts. Given the limitations of CPS Builders’ financial analysis software, scenario analyses could only be run for the townhomes sales. In order to simplify our financial analysis, average metrics for sales price, square footage, and building durations were used throughout the analyses. The results of our scenario analyses are listed below.

The base case scenario assumes an absorption rate of 5 townhome sales per month. This absorption rate was determined by examining recent quarterly home closings from local competitors, StoneBridge and Villas at Five Oaks. An average selling price of $221,666 was assumed for all townhome sales, in order to simplify our analysis. This average selling price slightly undercuts our two competitors, and will therefore sustain a consistent demand. Assuming that price, gross sales revenues are estimated to be $41,921,737.

Similar to selling price, averages for cost per square foot, and building square footage were calculated in order to determine the average construction cost per townhome. We calculated an average cost per square foot of $50.25 and an average square footage of 1,851 per townhome unit. Construction costs were calculated, and indirect construction costs which include soft costs such as overhead, marketing, sales commissions, and permit fees.

Land development costs include both onsite improvements and common area development costs. These costs were calculated using traditional construction estimating techniques and are further described in the construction estimate of this proposal. These development costs were allocated in the months they occurred throughout the project.

Base Case Scenario Assumptions: AMOUNT Average Sales Per month 5Gross Sales Revenue $ 41,921,737 Land Development Costs $ 3,206,964 Construction Costs $ 18,260,137 Indirect Construction Costs $ 10,610,720 Construction Loan Interest Rate 4.50%

Profit Measures: Profit Before Tax $ 9,843,916 Profit Margin 23.49%All Cash IRR 48.07%Leveraged IRR 58.78%

General Assumptions Assumptions: Unit Basis: Avg. SP $ 221,666 Avg. Cost Per SF $ 50.26 Avg. SF 1,851Avg. Building Duration (months) 5

Scenario Analysis

It is important to recognize the potential any building project has for success and failure. CPS Builders conducted various scenario analyses to ensure profitability on all fronts. Given the limitations of CPS Builders’ financial analysis software, scenario analyses could only be run for the townhomes sales. In order to simplify our financial analysis, average metrics for sales price, square footage, and building durations were used throughout the analyses. The results of our scenario analyses are listed below.

The base case scenario assumes an absorption rate of 5 townhome sales per month. This absorption rate was determined by examining recent quarterly home closings from local competitors, StoneBridge and Villas at Five Oaks. An average selling price of $221,666 was assumed for all townhome sales, in order to simplify our analysis. This average selling price slightly undercuts our two competitors, and will therefore sustain a consistent demand. Assuming that price, gross sales revenues are estimated to be $41,921,737.

Similar to selling price, averages for cost per square foot, and building square footage were calculated in order to determine the average construction cost per townhome. We calculated an average cost per square foot of $50.25 and an average square footage of 1,851 per townhome unit. Construction costs were calculated, and indirect construction costs which include soft costs such as overhead, marketing, sales commissions, and permit fees.


Base Case Scenario Assumptions: AMOUNT Average Sales Per month 5Gross Sales Revenue $ 41,921,737 Land Development Costs $ 3,206,964 Construction Costs $ 18,260,137 Indirect Construction Costs $ 10,610,720 Construction Loan Interest Rate 4.50%

Profit Measures: Profit Before Tax $ 9,843,916 Profit Margin 23.49%All Cash IRR 48.07%Leveraged IRR 58.78%

General Assumptions Assumptions: Unit Basis: Avg. SP $ 221,666 Avg. Cost Per SF $ 50.26 Avg. SF 1,851Avg. Building Duration (months) 5

We calculated an average cost per square foot of $50.25 and an average square footage of 1,851 per townhome unit. Construction costs were calculated, and indirect construction costs which include soft costs such as overhead, marketing, sales commissions, and permit fees.


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144

ConservativeIn our conservative scenario analysis, CPS Builders predicts townhome sales to fall to an average of 2 sales per month, or 6 sales per quarter. This would likely be the case if the Transit Oriented Development idea does not draw the high level of interest anticipated by our team. Keeping this low absorption rate in mind, CPS Builders also considered an escalation in construction and land development costs. Increases in such costs could be due to a variety of reasons, such as construction material shortages and price fluctuations, and/or lack of skilled labor (causing labor rates to be inflated). Based on these assumptions, CPS Builders estimates a decrease in gross sales revenue by 15% and well as an increase in construction and land development costs of 5%. In this scenario, profit measures on all fronts fall from between 85 to 89%. That being said, the project will still be profitable.

ANALYSIS - SCENARIO

Conservative Scenario

Assumptions: AMOUNT DELTA FROM BASE CASE

Average Sales Per month 2 5Gross Sales Revenue $ 35,625,826 ‐15%Land Development Costs $ 4,143,409 5%Construction Costs $ 20,999,157 5%Indirect Construction Costs $ 11,062,227 4%Construction Loan Interest Rate 7.50% 3.00% Profit Measures: Profit Before Tax $ 1,045,796 ‐89%Profit Margin 2.94% ‐87%All Cash IRR 7.15% ‐85%Leveraged IRR 6.34% ‐89%

In our conservative scenario analysis, CPS Builders predicts townhome sales to fall to an average of 2 sales per month, or 6 sales per quarter. This would likely be the case if the Transit Oriented Development idea does not draw the high level of interest anticipated by our team. Keeping this low absorption rate in mind, CPS Builders also considered an escalation in construction and land development costs. Increases in such costs could be due to a variety of reasons, such as construction material shortages and price fluctuations, and/or lack of skilled labor (causing labor rates to be inflated). Based on these assumptions, CPS Builders estimates a decrease in gross sales revenue by 15% and well as an increase in construction and land development costs of 5%. In this scenario, profit measures on all fronts fall from between 85 to 89%. That being said, the project will still be profitable.


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145

OptimisticThe optimistic scenario presumes an absorption rate of 7 townhome sales per month. This increased absorption rate can be attributed to successfully attracting residents, visitors, and businesses. As a result, CPS Builders estimates sales revenues will increase by 15%. Given favorable circumstances, CPS Builders estimates that total construction costs will decrease by 5%. One reason for this percentage decrease would be that as subcontractors complete their trade of construction, they will become more familiar with the overall process and increase production. This increase in production will also result in fewer labor hours paid, which is typically the most expensive element of construction cost. Also, the increase in productivity will shorten the duration of the project resulting in lower indirect construction costs.

The optimistic scenario presumes an absorption rate of 7 townhome sales per month. This increased absorption rate can be attributed to successfully attracting residents, visitors, and businesses. As a result, CPS Builders estimates sales revenues will increase by 15%. Given favorable circumstances, CPS Builders estimates that total construction costs will decrease by 5%. One reason for this percentage decrease would be that as subcontractors complete their trade of construction, they will become more familiar with the overall process and increase production. This increase in production will also result in fewer labor hours paid, which is typically the most expensive element of construction cost. Also, the increase in productivity will shorten the duration of the project resulting in lower indirect construction costs.

Optimistic Scenario

Assumptions: AMOUNT DELTA FROM BASE CASE

Average Sales Per month 7 2Gross Sales Revenue $ 46,064,607 10%Land Development Costs $ 3,530,905 ‐2%Construction Costs $ 17,894,934 ‐2%Indirect Construction Costs $ 11,062,227 4%Construction Loan Interest Rate 4.00% ‐0.50% Profit Measures: Profit Before Tax $ 13,862,405 41%Profit Margin 30.09% 28%All Cash IRR 82.20% 71%Leveraged IRR 95.88% 63%


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2014-2015 nahb final proposal (compressed)

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