northwest indiana regional development authority feasibility analysis.pdf · 2018-07-13 · • the...

Northwest Indiana Regional Development Authority

Real Estate Feasibility Analysis

April 2017

2© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The advice or other information in this document was prepared for the solebenefit of the Northwest Indiana Regional Development Authority and maynot be relied upon by any other person or organization. KPMG accepts noresponsibility or liability in respect of this document to any person ororganization other than the Northwest Indiana Regional DevelopmentAuthority. Any such benefit or reliance by another party shall be at suchparty’s sole risk.


Proposed Project Maps

Source: Comprehensive Strategic Plan, August 2016

• The West Lake Corridor (WLC) project includes relocatingthe existing Hammond Station and the development of newtrack and stations at Hammond Gateway, Hammond South,Munster Ridge Road, and Munster/Dyer Main Street. Stationareas analyzed as part of the WLC project include HammondGateway, Hammond South, Munster Ridge Road, andMunster/Dyer Main Street.

• The South Shore Double Tracking (SSDT) Project includesthe double tracking of 25 miles of line between TennesseeStreet in Gary, just east of the Gary Metro Center, andMichigan Boulevard, in Michigan City. Station areasanalyzed as part of the SSDT project include East Chicago,Gary Metro Center, Gary Miller, and Portage/Ogden Dunes.

Real Estate Feasibility Analysis

Feasibility of Real Property Construction in 1 mile radius around each existing / proposed stations.


Real Estate Feasibility Analysis Overview• KPMG Economic and Valuation Services (EVS) completed a real estate

feasibility analysis for the proposed eight stations in Northwest Indiana.

• EVS utilized data provided by Policy Analytics in conjunction with itsindependent research utilizing various real estate databases to prepare thisreport. Our procedures are highlighted below:

• Estimated the current market value of the land around the station areas, withintheir transit oriented development zones.

• Estimated construction costs of the projected associated development.• Benchmarked market rates and assumptions from a wide range of market

reports.• Leveraged data available from CoStar Realty Information Inc. (CoStar), Institute

of Real Estate Management (IREM), and Realty Rates’ Market Surveys tocomplete the revenue and operating expense analysis.


Real Estate Feasibility Analysis Overview• Furthermore, we determined the feasibility of construction at these stations by

calculating their Net Present Values (NPV) and residual land values.

• We were able to do this by projecting and discounting associated cash flows forthe respective development areas based on estimated revenues / operatingcosts and construction costs through the short term and mid term timelines.

• Utilizing the current market value of land and the projected net present value ofthe cash flows we were able to determine the internal rate of return for adeveloper.

• Once this was accomplished, we were able to calculate the cost feasible rentsthat need to be achieved to justify construction.

• Based on the information gathered during our analysis, we conducted a peerreview of Policy Analytics’ projected Total TOD Tax Liability.


Land Valuation Methodology• We leveraged the requisite total land areas from Policy Analytics’ station

investment and development models

• We estimated the current market value of land around the station areas througha land comparable search and through conversations with local marketparticipants.

• Our land comparable search extended several miles around the station areas;we searched for land parcels that had recently transacted or were listed openlyin the market.

• We conducted these searches for land parcels that were zoned commercial with proposed office or retail use and for land parcels that were zoned for multifamily use.

• The market participants that we spoke with helped us further understand thelocal markets, what drove value, and how some of the comparables that wefound compared to the Subject parcels.


Construction Cost Methodology• To estimate the construction costs for the supported building developments,

within the TOD areas, we conducted a cost approach analysis utilizing Marshall and Valuation Services’ (MVS) replacement costs.

• MVS is a complete and comprehensive database that allows professionals toaccurately compute costs through a variety of building indexes.

• These indexes reveal estimated base costs, on a per square foot basis, for varying building types, which can further be adjusted to reflect details such as building height, number of stories, floor area ratios, heating / cooling capacity, fire-sprinklers, etc.

• We adjusted the base building costs by local multipliers, which are designed toadjust base costs to specific localities. MVS has both Gary, IN and Hammond,IN multipliers available.

• After completing our construction estimates, we benchmarked our estimatesagainst Policy Analytics’ construction estimates.


Residual Value of Land • The residual value of land is the implied value of land assuming a development

scenario.

• The land residual method takes the present value of the Subject’s supportable cash flow less its total discounted development cost.

• We calculated the residual value of the underlying land, within the TOD areas, via the income approach, specifically a discounted cash flow analysis.

• After estimating the projected income of the various developments, we discounted these cash flows with a market supported discount rate and then divided that cumulative discounted total by the associated total land area.

• The results of this analysis is the residual value of land, which we present on a per square foot basis.


Real Estate Developer Returns

The above summarizes discount rates for conventionally financed developments in theGreat Lakes Region. Actual Rates are historical rates achieved by survey respondents,while Pro-Forma Rates reflect forward-looking revenue and expenses.

Min. Max. Avg. Min. Max. Avg.Site Built Residential 15.99% 39.50% 25.68% 15.35% 37.92% 24.66%Manufactured Housing 16.32% 41.23% 26.65% 15.67% 39.58% 25.59%

Min. Max. Avg. Min. 19.26 Avg.Primary Residential 9.99% 21.23% 15.15% 9.59% 20.38% 14.48%

Hi-Rise / Urban Townhouse 10.89% 21.23% 15.74% 10.46% 20.38% 15.11%Garden / Suburban Townhouse 9.99% 20.06% 14.43% 9.59% 19.26% 13.85%Mixed Use 10.70% 21.15% 15.29% 9.85% 20.10% 14.47%

Commercial / Industrial 8.34% 21.75% 13.93% 8.01% 20.88% 13.37%Urban Office 9.45% 19.44% 14.16% 9.07% 18.66% 13.59%Suburban Office 8.36% 19.21% 13.24% 8.03% 18.44% 12.71%Retail 9.15% 21.75% 14.83% 8.78% 20.88% 14.24%Industrial 8.34% 19.77% 13.49% 8.01% 18.98% 12.95%

*4th Quarter Survey uses 3rd Quarter Data

Great Lakes - Condominiums & Co-OpsActual Rates Pro-Forma Rates

Actual Rates Pro-Forma RatesGreat Lakes - Subdivisions & PUDs

Realty Rates Developer Survey - 4th Quarter 2016*

Realty Rates Developer Survey - 4th Quarter 2016*

Office Feasibility Inputs

Station Feasibility Analysis


Office Construction CostsBased on our analysis,construction costs foroffice properties, at allthe Subject stations,was $175.00 persquare foot.

Office - Minimum Office - Maximum

MVS Classification Office Buildings Office BuildingsMVS Reference Sec. 15, Page 17 Sec. 15, Page 17Building class C BBuilding quality Average GoodNumber of stories 3 3Average height per story (ft) 12 12Average height per mezzanine (ft) n/a n/aBuilding Life 50 55Condition Average GoodRegion Central CentralClimate (based on predominant state climate) Extreme Extreme

Office - Minimum Office - MaximumBase Square Foot Cost $109.26 $201.95

SQUARE FOOT REFINEMENTSHeating, Cooling Ventilation $10.80 $0.00Fire Sprinklers $2.84 $2.84

$0.00 $0.00Total square foot refinements $122.90 $204.79

HEIGHT AND SIZE REFINEMENTSNumber of stories-multiplier 1.000 1.000Height per story-multiplier 1.000 1.000Floor area-perimeter multiplier 1.000 1.000Combined height and size multiplier 1.000 1.000

FINAL CALCULATIONS Office - Minimum Office - MaximumRefined square foot cost $122.90 $204.79Current cost multiplier 0.980 0.990Local multiplier 1.240 1.230Final square foot cost $149.35 $249.37Total square foot area of building 1.0 1.0Replacement Cost before Soft Costs $149.35 $249.37Soft Costs (5.00%) $7.47 $12.47Subtotal $156.82 $261.84Developer's Profit (5.00%) $15.68 $26.18Replacement Cost $172.50 $288.03

Total Cost (RCN) $172.50 $288.03Total Cost Rounded $172.50 $288.03

Source: Marshall Valuation Service, November 2015; Square Foot Refinements based on an office of 50,000 square feet.

Dock High Flooring


Office Land Value Conclusions

Station City, State Value (Low) Value (High) Value (Avg.) Land Value Conc. Land Tax Conc.Hammond Gateway Hammond, IN $0.80 $3.44 $2.54 $2.50 $0.10Hammond South Hammond, IN $0.80 $3.44 $2.54 $2.50 $0.10Munster Ridge Munster, IN $0.80 $3.44 $2.54 $2.50 $0.20Munster Dyer Munster, IN $0.80 $3.44 $2.54 $2.50 $0.20Gary Metro Gary, IN $0.80 $3.44 $2.54 $1.75 $0.05Gary Miller Gary, IN $0.80 $3.44 $2.54 $1.75 $0.05East Chicago East Chicago, IN $0.80 $3.44 $2.54 $2.00 $0.10Portage / Ogden Dunes Portage / Ogden Dunes, IN $0.80 $3.44 $2.54 $1.75 $0.05

Office Land Conclusions PSF

Sale Land Area Sale Sale Price TaxesAddress City, State Date (Sq. Ft.) Price Per Sq. Ft. PSF4227-4539 E Lincoln Hwy 30 Merrillville, IN 1/9/2017 235,224 $500,000 $2.13 $0.021601 W 45th Ave Griffith, IN 12/21/2016 95,832 $330,000 $3.44 $0.074220 E US Highway 30 Griffith, IN 12/21/2016 76,230 $225,000 $2.95 n/a11000 Delaware Pky Crown Point, IN 4/26/2016 120,661 $415,000 $3.44 $0.033201 Grant St Gary, IN 3/30/2016 115,870 $215,000 $1.86 $0.02396 11th Ct Crown Point, IN 2/3/2016 118,919 $358,313 $3.01 n/aVirginia St Merrillville, IN 12/14/2015 108,900 $87,000 $0.80 $0.051000 Louis Sullivan Drive (Lot 27) Portage, IN 6/16/2015 234,788 $600,000 $2.56 $0.023691 Willowcreed Rd Portage, IN 3/10/2015 54,886 $150,000 $2.73 n/a4220 E US Highway 30 Merrillville, IN 10/9/2014 76,230 $225,000 $2.95 $0.063690 Willowcreek Rd Portage, IN Listing 928,264 $1,917,900 $2.07 n/a

Minimum 54,886 87,000 $0.80 $0.02Maxiumum 928,264 1,917,900 $3.44 $0.07Average 196,891 456,656 $2.54 $0.04*KPMG value conclusions were derived after speaking with market participants.

Office Land Value Comparable Summary

Retail Feasibility Inputs



Retail Construction CostsBased on our analysis,construction costs forretail properties, at allthe Subject stations,was $150.00 persquare foot.

Retail Store - Minimum Retail Store - Maximum

MVS Classification Retail Stores Retail StoresMVS Reference Sec. 13, Page 26 Sec. 13, Page 26Building class C BBuilding quality Average GoodNumber of stories 3 3Average height per story (ft) 12 12Average height per mezzanine (ft) n/a n/aBuilding Life 45 50Condition Average GoodRegion: Central CentralClimate (based on predominant state climate): Extreme Extreme

Retail Store - Minimum Retail Store - MaximumBase Square Foot Cost $80.34 $127.41




FINAL CALCULATIONS Retail Store - Minimum Retail Store - MaximumRefined square foot cost $84.08 $131.15Current cost multiplier 0.990 0.990Local multiplier 1.240 1.230Final square foot cost $103.22 $159.70Total square foot area of building 1.0 1.0Replacement Cost before Soft Costs $103.22 $159.70Soft Costs (5.00%) $5.16 $7.99Subtotal $108.38 $167.69Developer's Profit (5.00%) $10.84 $16.77Replacement Cost $119.22 $184.46


Source: Marshall Valuation Service, May 2016; Square Foot Refinements based on retail space of 5,000 square feet.

Dock High Flooring


Retail Land Value Conclusions


Retail Land Conclusions PSF

Sale Land Area Sale Sale Price TaxesAddress City, State Date (Sq. Ft.) Price Per Sq. Ft. PSF

1500 Torrence Ave Calumet City, IL 3/11/2016 217,800 $1,000,000 $4.59 $0.661895 Crisman Rd Portage, IN 12/28/2015 174,676 $599,000 $3.43 n/a1111 162nd St South Holland, IL 4/15/2015 95,396 $500,000 $5.24 $1.245555 W Ridge Rd Gary, IN 8/26/2014 123,710 $312,812 $2.53 $0.03SWC E 165th & Indianapolis Blvd Hammond, IN 5/27/2014 56,976 $203,000 $3.56 $0.251800 E Summit St Crown Point, IN 1/9/2014 79,703 $325,000 $4.08 $0.07425 W Chicago Ave East Chicago, IN Listing 74,052 $250,000 $3.38 $0.092639 Colfax Street Gary, IN Listing 92,783 $99,900 $1.08 n/aUS Route 6 Portage, IN Listing 740,520 $1,500,000 $2.03 n/a3750-3768 Willowcreek Rd Portage, IN Listing 365,468 $1,031,961 $2.82 $0.023909-3958 Willowcreek Rd Portage, IN Listing 287,932 $862,422 $3.00 n/a1895 Crisman Rd Portage, IN Listing 174,676 $599,000 $3.43 n/a

Minimum 56,976 99,900 $1.08 $0.02Maxiumum 740,520 1,500,000 $5.24 $1.24Average 206,974 606,925 $3.26 $0.34*KPMG value conclusions were derived after speaking with market participants.

Retail Land Value Comparable Summary

Multifamily Market Feasibility Inputs



Multifamily Market Construction CostsBased on our analysis,construction costs formultifamily marketproperties, at all theSubject stations, was$125.00 per squarefoot.

Multifamily - Minimum Multifamily - Maximum

MVS Classification Multiple Residences Multiple ResidencesMVS Reference Sec. 12, Page 16 Sec. 12, Page 16Building class C CBuilding quality Average ExcellentNumber of stories 3 3Average height per story (ft) 9 9Average height per mezzanine (ft) n/a n/aBuilding Life 55 60Condition Average ExcellentRegion: Central CentralClimate (based on predominant state climate): Extreme Extreme

Multifamily - Minimum Multifamily - MaximumBase Square Foot Cost $74.37 $135.52



HEIGHT AND SIZE REFINEMENTSNumber of stories-multiplier 1.000 1.000Height per story-multiplier 1.000 1.000Total floor area-shape multiplier 1.000 1.000Combined height and size multiplier 1.000 1.000

FINAL CALCULATIONS Multifamily - Minimum Multifamily - MaximumRefined square foot cost $88.48 $149.63Current cost multiplier 0.990 0.990Local multiplier 1.240 1.240Final square foot cost $108.62 $183.69Total square foot area of building 1.0 1.0Replacement Cost before Soft Costs $108.62 $183.69Soft Costs (5.00%) $5.43 $9.18Subtotal $114.05 $192.87Developer's Profit (5.00%) $11.40 $19.29Replacement Cost $125.45 $212.16


Source: Marshall Valuation Service, August 2016; Square Foot Refinements based on unit area of 1,500 square feet.

Dock High Flooring


Multifamily Market Land Value Conclusions


Torrence Ave Lynwood, IL 11/7/2014 3,310,560 $2,100,000 $0.63 n/a8200 Wilson St Merrillville, IN Listing 1,263,240 $750,000 $0.59 n/a8777 Taft St Merrillville, IN Listing 3,175,088 $699,000 $0.22 n/a315 Melton Rd Burns Harbor, IN Listing 434,293 $569,000 $1.31 n/a6024 Liverpool Rd Hobart, IN Listing 73,616 $50,000 $0.68 n/aWillowcreek Rd Portage, IN Listing 1,524,600 $1,225,000 $0.80 n/aWillowcreek Rd @ Houston Portage, IN Listing 304,920 $300,000 $0.98 n/a200 Avenue B Griffith, IN Listing 88,209 $25,000 $0.28 n/a

Minimum 73,616 25,000 $0.22 $0.00Maxiumum 3,310,560 2,100,000 $1.31 $0.00Average 1,271,816 714,750 $0.69 $0.00*KPMG value conclusions were derived after speaking with market participants.

Multifamily Land Value Comparable Summary


Multifamily Market Land Conclusions PSF

Multifamily Affordable Feasibility Inputs



Multifamily Affordable Construction CostsBased on our analysis,construction costs formultifamily affordableproperties, at all theSubject stations, was$100.00 per squarefoot.

Multifamily Affordable - Minimum Multifamily Affordable - Maximum

MVS Classification Manufactured (HUD Code) Single-Family Housing Manufactured (HUD Code) Single-Family HousingMVS Reference Sec. 12, Page 42 Sec. 12, Page 42Building class D DBuilding quality Very Good ExcellentNumber of stories 3 3Average height per story (ft) 8 8Average height per mezzanine (ft) n/a n/aBuilding Life 55 60Condition Very Good ExcellentRegion: Central CentralClimate (based on predominant state climate): Extreme Extreme

Multifamily Affordable - Minimum Multifamily Affordable - MaximumBase Square Foot Cost $72.56 $79.40




FINAL CALCULATIONS Multifamily Affordable - Minimum Multifamily Affordable - MaximumRefined square foot cost $76.54 $83.38Current cost multiplier 0.990 0.990Local multiplier 1.240 1.240Final square foot cost $93.96 $102.36Total square foot area of building 1.0 1.0Replacement Cost before Soft Costs $93.96 $102.36Soft Costs (5.00%) $4.70 $5.12Subtotal $98.66 $107.48Developer's Profit (5.00%) $9.87 $10.75Replacement Cost $108.52 $118.22


Source: Marshall Valuation Service, August 2016; Square Foot Refinements based on unit area of 1,500 square feet.

Dock High Flooring


Multifamily Affordable Land Value Conclusions


Torrence Ave Lynwood, IL 11/7/2014 3,310,560 $2,100,000 $0.63 n/a8200 Wilson St Merrillville, IN Listing 1,263,240 $750,000 $0.59 n/a8777 Taft St Merrillville, IN Listing 3,175,088 $699,000 $0.22 n/a315 Melton Rd Burns Harbor, IN Listing 434,293 $569,000 $1.31 n/a6024 Liverpool Rd Hobart, IN Listing 73,616 $50,000 $0.68 n/aWillowcreek Rd Portage, IN Listing 1,524,600 $1,225,000 $0.80 n/aWillowcreek Rd @ Houston Portage, IN Listing 304,920 $300,000 $0.98 n/a200 Avenue B Griffith, IN Listing 88,209 $25,000 $0.28 n/a

Minimum 73,616 25,000 $0.22 $0.00Maxiumum 3,310,560 2,100,000 $1.31 $0.00Average 1,271,816 714,750 $0.69 $0.00*KPMG value conclusions were derived after speaking with market participants.

Multifamily Land Value Comparable Summary


Multifamily Affordable Land Conclusions PSF

Hammond Gateway Area and Cost Projections


Short Term & Mid Term Size and Cost ProjectionsShort Term Mid Term

[1] Size and Costs Projections Short Term Mid Term Office Retail Multifamily (Market)

Multifamily (Affordable) Office Retail Multifamily

(Market)Multifamily (Affordable)

Total Land Area (Sq. Ft.) 125,806 1,439,100 Developable Land Area (Sq. Ft.) 101,191 1,280,214 10,119 25,298 50,595 15,179 187,299 190,384 502,141 137,615 % Land Developable 80.4% 89.0%Land for NICTD Purposes 13,372 -

Total Buildable Area - Sq. Ft. 247,918 2,237,439 24,792 61,979 123,959 37,188 297,371 464,280 1,056,169 299,615

Construction Costs per Sq. Ft. $175.0 $150.0 $125.0 $100.0 $175.0 $150.0 $125.0 $100.0Inflation Adjustment (%) 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%Years to term commencement 6.0 6.0 6.0 6.0 14.0 14.0 14.0 14.0 Inflated Construction Costs $190.0 $160.0 $130.0 $110.0 $200.0 $170.0 $140.0 $110.0

Building Costs $36,031,745 $323,618,510 $4,710,000 $9,917,000 $16,115,000 $4,091,000 $59,474,000 $78,928,000 $147,864,000 $32,958,000[2] Site Costs $2,065,034 $18,439,661 $279,227 $587,918 $955,359 $242,530 $369,455 $490,305 $918,538 $204,737[2] Road Costs $11,579,625 $14,018,750 $1,565,758 $3,296,734 $5,357,151 $1,359,982 $2,071,711 $2,749,370 $5,150,680 $1,148,056[2] Major Intersection Costs $375,000 $250,000 $50,706 $106,763 $173,489 $44,042 $67,091 $89,037 $166,802 $37,179[2] Minor Intersection Costs $400,000 $240,000 $54,087 $113,881 $185,054 $46,978 $71,564 $94,973 $177,922 $39,658

Tenant Improvements n/a n/a $276,461 $685,689 n/a n/a $3,852,259 $6,113,123 n/a n/aLeasing Commissions n/a n/a $179,330 $378,061 n/a n/a $2,140,111 $2,709,969 n/a n/a

Total Costs $50,451,404 $356,566,922 $7,115,568 $15,086,046 $22,786,053 $5,784,533 $68,046,192 $91,174,776 $154,277,943 $34,387,629Total Costs (less Other Costs) $36,031,745 $323,618,510 $5,165,791 $10,980,750 $16,115,000 $4,091,000 $65,466,370 $87,751,092 $147,864,000 $32,958,000

[1] Land and buildable area projections provided by Policy Analytics.[2]

KPMG's Building Costs and Policy Analytics' Other CostsAll Policy Analytics' Costs

'Other Costs' include Site Costs, Road Costs, Major Intersection Costs and Minor Intersection Costs, which are projected by Policy Analytics. KPMG benchmarked Policy Analytics' Building Costs, in bold, and projected Tenant Improvements and Leasing Commissions.

Hammond Gateway – Office



Office - Market Rents & ConclusionOffice - Market Rent Conclusion: $20.00 (MG) Annually

Sign Type of Available AskingAddress City, State Date Rent Space (Sq. Ft.) Rent

935 Sheffield Ave Dyer, IN 1/27/16 MG 3,300 $12.00701 W 5th Ave Gary, IN 4/2/16 MG 3,000 $12.005816 E 7th Ave Gary, IN 2/1/16 FS 1,500 $12.00201-239 E 5th Ave Gary, IN 9/1/14 MG 1,000 $13.50200 Russel Street Hammond, IN 10/3/16 MG 4,000 $18.505246 S Hohman Ave Hammond, IN 2/23/15 FS 800 $13.50219 Russell Street Hammond, IN 12/31/14 NNN 6,000 $10.005246 S Hohman Ave Hammond, IN 6/1/14 FS 700 $13.508803-8807 Indianapolis Blvd Highland, IN 8/2/16 NNN 2,200 $18.009105A Indianapolis Blvd Highland, IN 7/1/16 MG 1,900 $15.182300 Ramblewood Dr Highland, IN 3/27/16 MG 2,100 $17.149725 Parkway Dr Highland, IN 11/25/15 MG 2,000 $15.001950 45th Ave Munster, IN 10/18/16 NNN 6,899 $17.00931 Ridge Road Munster, IN 7/11/16 NNN 1,550 $17.008840 Calumet Drive Munster, IN 4/1/16 NNN 1,994 $18.007550 Hohman Ave Munster, IN 2/26/16 MG 900 $12.009245 Calumet Avenue Munster, IN 2/24/16 MG 460 $15.659245 Calumet Avenue Munster, IN 2/24/16 MG 986 $12.009245 Calumet Avenue Munster, IN 2/24/16 MG 800 $18.759200 Calumet Avenue Munster, IN 1/31/16 NNN 17,090 $18.507550 Hohman Ave Munster, IN 12/16/15 MG 310 $11.619711 Valparaiso Drive Munster, IN 10/3/15 MG 2,785 $17.759245 Calumet Avenue Munster, IN 5/11/14 MG 986 $14.009200 Calumet Avenue Munster, IN 1/1/14 FS 5,433 $19.59

Minimum 310 $10.00Maxiumum 17,090 $19.59Average 2,862 $15.09

Office Market Rent Comparable Summary

*Market comparable information was extrapolated from recently signed leases from within the Subject market areas. Market participants indicated that $16.00 (NNN) was a reasonable rental estimate; based on our expense assumptions, we estimated $20.00 (MG) as a reasonable office rent conclusion for Hammond Gateway.


Expense Ratio Conclusion

IREM Data was utilized to calculate an estimated expense ratio for office buildings in theSubject area. After estimating an office market rent of (MG) $20.00, for the Subject, weestimated expenses for the Subject based on a pro rata expense ratio from investorsurveys. It should be noted that KPMG utilized a real estate property tax that wasreflective of comparables found in the marketplace rather than the tax pro rata share.

Assumptions Suburban Chicago

Suburban Indianapolis

Gary, IN -Hammond, IN

Average of All Surveys

KPMG Market Expense Est.

Total Income (per Sq. Ft.) $11.22 $15.29 $13.16 $13.22 $20.00

Expenses (per Sq. Ft.)Utilities $1.64 $0.48 $0.97 $1.03 $1.47Manintenance and Repair $3.03 $2.02 $0.89 $1.98 $1.35Payroll Administrative $0.45 $0.34 $0.45 $0.41 $0.68Advertising $0.12 $0.00 $0.06 $0.06 $0.09Management Fee $0.40 $0.28 $0.73 $0.47 $1.11Other Administrative $0.20 $0.12 $0.25 $0.19 $0.38Services $1.15 $0.77 $0.95 $0.96 $1.44Insurance $0.21 $0.18 $0.25 $0.21 $0.38Property Taxes $3.39 $1.83 $2.12 $2.44 $2.25Other Tax/Fee/Permit $0.08 $0.52 $0.08 $0.23 $0.12

Total Expenses (per Sq. Ft.) $10.66 $6.52 $6.75 $7.98 $9.29

NOI Margin (%) 4.95% 57.34% 48.71% 39.66% 53.57%

IREM Surveys - Office (Averages)

*KPMG notes that the Suburban Chicago office margins are substantially lower than the other market areas.


Real Estate Property Tax Comparables & Conclusion

Based on the above, we have estimated a tax liability of $2.25 per Sq. Ft.

Land Lot Building Total Property Tax PSF Property Tax Year /Address City, State Area (Sq. Ft.) Area (Sq. Ft.) Taxable Value Tax of Building Tax (%) Tax Area

200 Russell St Hammond, IN 5,314 46,494 753,400 29,269 $0.63 3.88% 2015 / 0153219 Russell St Hammond, IN 153,217 62,698 530,000 20,590 $0.33 3.88% 2015 / 01535265 Hohman Ave Hammond, IN 12,400 60,892 341,100 13,251 $0.22 3.88% 2015 / 01534515 Hohman Ave Hammond, IN 6,400 2,464 186,400 7,242 $2.94 3.88% 2015 / 0153

Minimum 5,314 2,464 $186,400 $7,242 $0.22 3.88%Maximum 153,217 62,698 $753,400 $29,269 $2.94 3.88%Average 44,333 43,137 $452,725 $17,588 $1.03 3.88%*Tax comparable information was extrapolated from buildings within the Subject market area.

Hammond Office Tax Comparable Summary


Inflation & Market Leasing AssumptionsYear 1 Year 5 Year 6 Year 7 Year 13 Year 14 Year 15 Year 24 Year 25 Year 26

For the Years Ending Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2040 Dec-2041 Dec-2042Phase I Phase II

Property Market AssumptionsGeneral Inflation 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%Market Inflation 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%Expense Inflation 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%CPI Inflation 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Capital Expenditures ($/SF) 0.00 0.00 N/A 201.47 0.00 834.33 166.93 0.00 0.00 0.00General Vacancy (%) 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%Credit Loss Reserve (%) 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%

Market Leasing Profiles

Year 1 Year 5 Year 6 Year 7 Year 13 Year 14 Year 15 Year 24 Year 25 Year 26

Office Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2040 Dec-2041 Dec-2042Term Length (Years/Months) 5 5 5 5 5 5 5 5 5 5Renewal Probability† 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00%Months Vacant 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00Months Vacant (Blended) 3.15 3.15 3.15 3.15 3.15 3.15 3.15 3.15 3.15 3.15Market Base Rent (New, $ / SF / Year) 20.00 22.51 24.76 26.00 31.65 33.23 34.89 45.08 45.98 46.90Market Base Rent (Renew, $ / SF / Year) 20.00 22.51 24.76 26.00 31.65 33.23 34.89 45.08 45.98 46.90Market Base Rent (Blended, $ / SF / Year) 20.00 22.51 24.76 26.00 31.65 33.23 34.89 45.08 45.98 46.90Market Rental Value (Continue Prior) Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue PriorUse Market or Prior N/A N/A N/A N/A N/A N/A N/A N/A N/A N/APrior Rent N/A N/A N/A N/A N/A N/A N/A N/A N/A N/AFixed Steps (None) None None None None None None None None None NoneCPI Increases None None None None None None None None None NoneFree Rent (New, Months) 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00Free Rent (Renew, Months) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Free Rent (Blended, Months) 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05Recovery Type Net Net Net Net Net Net Net Net Net NetRecoveries (Net) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/AMiscellaneous Rent None None None None None None None None None NoneIncentives None None None None None None None None None NoneTenant Improvements (New, $ / Area) 10.00 10.82 11.04 11.26 12.68 12.94 13.19 15.77 16.08 16.41Tenant Improvements (Renew, $ / Area) 5.00 5.41 5.52 5.63 6.34 6.47 6.60 7.88 8.04 8.20Tenant Improvements (Blended, $ / Area) 6.75 7.31 7.45 7.60 8.56 8.73 8.91 10.64 10.86 11.07Leasing Commissions (New, Fixed %) 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00%Leasing Commissions (Renew, Fixed %) 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%Leasing Commissions (Blended, Fixed %) 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05%Upon Expiration Office Office Office Office Office Office Office Office Office Office


Discounted Cash Flow AnalysisYear 1 Year 5 Year 6 Year 7 Year 13 Year 14 Year 15 Year 16 Year 24 Year 25 Year 26

For the Years Ending Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Dec-2040 Dec-2041 Dec-2042Phase I Phase II

Rental Revenue Potential Base Rent - - 153,470 468,083 751,442 751,442 4,210,309 7,822,059 13,741,531 13,977,435 14,371,612 Absorption & Turnover Vacancy - - (21,022) (22,073) - - (857,075) (1,864,369) - (1,139,437) (683,956) Free Rent - - (76,735) (80,572) (1,481) - (864,717) (680,440) - (301,745) (304,185) Scheduled Base Rent - - 55,713 365,438 749,962 751,442 2,488,518 5,277,251 13,741,531 12,536,254 13,383,470 Total Rental Revenue - - 55,713 365,438 749,962 751,442 2,488,518 5,277,251 13,741,531 12,536,254 13,383,470

Other Tenant Revenue Total Expense Recoveries - - 18,898 63,948 100,615 102,628 419,506 739,327 1,625,665 1,530,630 1,614,780 Total Other Tenant Revenue - - 18,898 63,948 100,615 102,628 419,506 739,327 1,625,665 1,530,630 1,614,780

Total Tenant Revenue - - 74,611 429,386 850,577 854,070 2,908,023 6,016,578 15,367,195 14,066,884 14,998,250

Potential Gross Revenue - - 74,611 429,386 850,577 854,070 2,908,023 6,016,578 15,367,195 14,066,884 14,998,250

Vacancy & Credit Loss Vacancy Allowance - - (3,333) (17,499) (42,529) (42,703) (104,181) - (768,360) (192,496) (318,427) Credit Loss - - (1,492) (8,588) (17,012) (17,081) (58,160) (120,332) (307,344) (281,338) (299,965)Total Vacancy & Credit Loss - - (4,825) (26,087) (59,540) (59,785) (162,341) (120,332) (1,075,704) (473,834) (618,392)

Effective Gross Revenue - - 69,786 403,299 791,036 794,285 2,745,682 5,896,246 14,291,492 13,593,050 14,379,858

Operating Expenses Utilities - - 10,059 30,782 46,220 47,145 240,350 441,266 746,787 761,723 776,958 Manintenance and Repair - - 15,397 47,115 70,745 72,160 367,882 675,408 1,143,042 1,165,903 1,189,221 Payroll Administrative - - 2,600 7,957 11,948 12,187 62,131 114,069 193,047 196,908 200,846 Advertising - - 9,854 30,153 45,277 46,182 235,445 432,261 731,547 746,178 761,101 Management Fee - - 2,600 7,957 11,948 12,187 62,131 114,069 193,047 196,908 200,846 Other Administrative - - 7,596 23,243 34,901 35,599 181,489 333,201 563,901 575,179 586,682 Services - - 616 1,885 2,830 2,886 14,715 27,016 45,722 46,636 47,569 Insurance - - 4,653 14,239 21,381 21,808 111,182 204,123 345,453 352,362 359,409 Property Taxes - - 9,238 28,269 42,447 43,296 220,729 405,245 685,825 699,542 713,532 Other Tax/Fee/Permit - - 821 2,513 3,773 3,849 19,620 36,022 60,962 62,181 63,425

Land Tax 19,742 21,369 - - - - - - - - - Total Operating Expenses 19,742 21,369 63,435 194,113 291,470 297,299 1,515,675 2,782,679 4,709,332 4,803,519 4,899,589

Net Operating Income (19,742) (21,369) 6,350 209,187 499,567 496,986 1,230,007 3,113,567 9,582,159 8,789,531 9,480,268

Leasing Costs Tenant Improvements - - 68,431 138,230 53,713 1,695 653,960 1,158,661 320,992 407,136 817,564 Leasing Commissions - - 43,739 89,665 39,139 1,247 492,889 880,739 270,467 343,052 688,878 Total Leasing Costs - - 112,170 227,895 92,852 2,942 1,146,849 2,039,400 591,459 750,188 1,506,442

Capital Expenditures Building Construction Costs - - 3,329,889 3,329,889 - 20,684,607 20,684,607 20,684,607 - - - Total Capital Expenditures - - 3,329,889 3,329,889 - 20,684,607 20,684,607 20,684,607 - - -

Total Leasing & Capital Costs - - 3,442,059 3,557,784 92,852 20,687,549 21,831,456 22,724,007 591,459 750,188 1,506,442

Cash Flow Before Debt Service (19,742) (21,369) (3,435,709) (3,348,597) 406,714 (20,190,563) (20,601,448) (19,610,439) 8,990,700 8,039,343 7,973,826

Cash Flow Available for Distribution (19,742) (21,369) (3,435,709) (3,348,597) 406,714 (20,190,563) (20,601,448) (19,610,439) 8,990,700 8,039,343 7,973,826


Internal Rate of Return Calculation

Market Value of LandLand Value per Sq. Ft. $2.50Office Land Sq. Ft. 197,418 Land Value $493,545

Present Value Summary

Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Dec-2040 Dec-2041Annual Cash Flows (19,742) (21,369) (3,435,709) (3,348,597) 406,714 (20,190,563) (20,601,448) (19,610,439) 8,990,700 8,039,343 Resale Value 161,443,475 Total Cash Flow (19,742) (21,369) (3,435,709) (3,348,597) 406,714 (20,190,563) (20,601,448) (19,610,439) 8,990,700 169,482,818

IRR Summary

Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Dec-2040 Dec-2041Annual Cash Flow (19,742) (21,369) (3,435,709) (3,348,597) 406,714 (20,190,563) (20,601,448) (19,610,439) 8,990,700 8,039,343Resale Value (493,545) 161,443,475Total Cash Flow (513,287) (21,369) (3,435,709) (3,348,597) 406,714 (20,190,563) (20,601,448) (19,610,439) 8,990,700 169,482,818

IRR Inclusive of Land Acquisition 12.60%

Analysis Start Date 1/1/2017Year of Sale 25Discount Rate 11.00%Exit Cap Rate 6.00%Sale Costs 1.00%IRR not inclusive of Land Acquisition 12.96%Construction Cost Inflatation Rate 1.0%TI and LC Expense Growth Rate 2.0%

Financial Assumptions

Present Value (PV) of future cash flows $3,089,108PV (rounded) $3,100,000Total Land Area (Sq. Ft.) 197,418 Price Per Sq. Ft. of Land $15.70

Residual Value of Land

Property Type OfficeOffice Building Area 322,163 Total Construction Costs (incl. land) $63,620,596All-In Cost per Sq. Ft. $197.48

Valuation Metrics - As of the DCF Analysis Start Date


Cost Feasible Office RentBased on the analysis performed a cost feasible rent of $27.32 (MG) per square foot per year needs to be achieved in order to justify new construction.

Cost Feasible Rent Analysis Office

Replacement Cost New of Property $63,620,596Overall Capitalization Rate (Ro) 7.75%Total Required Net Operating Income $4,930,596

Total Area of Improvements (Sq. Ft.) 322,163

Required NOI Per Sq. Ft. of Improvements $15.30Operating Expenses Per Sq. Ft. $9.29

Required Effective Gross Revenue per Sq. Ft. $24.59Stabilized Occupancy 90.00%

Cost Feasible Gross Market Rental Rate $27.32Cost Feasible Base Rent (NNN) $18.04

Hammond Gateway – Retail



Retail - Market Rents & ConclusionRetail - Market Rent Conclusion: $22.00 (MG) Annually


1 State St Calumet City, IL 10/3/15 NNN 1,300 $17.001010 Broadway Gary, IN 11/1/16 MG 4,200 $9.00631-637 S Lake St. Gary, IN 10/22/14 MG 600 $13.00201-239 E 5th Ave Gary, IN 9/1/14 MG 1,000 $13.50487 S Broadway Gary, IN 3/22/14 FS 399 $13.306949 Kennedy Ave Hammond, IN 10/1/16 NNN 270 $15.561918 165th St. Hammond, IN 8/2/16 NNN 2,666 $17.001940 165th St. Hammond, IN 1/19/16 NNN 1,400 $20.007 Sibley Rd Hammond, IN 10/3/15 NNN 14,400 $12.001233-1307 E 165th St. Hammond, IN 9/1/15 NNN 1,368 $18.006933-6939 Calumet Ave Hammond, IN 6/2/15 MG 6,600 $12.004546 Hohman Ave Hammond, IN 10/14/14 FS 350 $17.145250-5252 Hohman Ave Hammond, IN 1/22/14 NNN 350 $16.003305-3321 45th St. Highland, IN 1/14/16 NNN 2,140 $11.002550 45th St. Highland, IN 10/2/15 MG 1,500 $13.56821 Main Street Munster, IN 6/6/16 NNN 6,000 $32.50225-247 Ridge Rd Munster, IN 6/1/16 NNN 1,160 $10.347951 Calumet Ave Munster, IN 2/10/16 N 2,426 $24.00822 Ridge Rd Munster, IN 1/19/16 NNN 1,320 $18.001909-1955 45th St. Munster, IN 12/18/15 MG 9,180 $12.00300-330 Ridge Rd Munster, IN 11/30/15 NNN 1,068 $18.001909-1955 45th St. Munster, IN 11/1/15 MG 1,500 $14.4011-21 Ridge Rd Munster, IN 11/1/15 NNN 3,800 $14.003344 Ridge Rd Munster, IN 1/20/15 MG 2,200 $10.91225-247 Ridge Rd Munster, IN 8/2/14 + Utilities 1,750 $13.03134-138 US Hwy 41 Schererville, IN 11/1/15 n/a 1,200 $26.50

Minimum 270 $9.00Maxiumum 14,400 $32.50Average 2,698 $15.84*Market comparable information was extrapolated from recently signed leases within the Subject market areas.

Retail Market Rent Comparable Summary



IREM Data was utilized to calculate an estimated expense ratio for retail buildings in theSubject area. After estimating a retail market rent of (MG) $22.00, for the Subject, weestimated expenses for the Subject based on a pro rata expense ratio from investorsurveys. It should be noted that KPMG utilized a real estate property tax that wasreflective of comparables found in the marketplace rather than the tax pro rata share.

Assumptions Low High Average KPMG Market Expense Est.

Total Income (per Sq. Ft.) $10.72 $28.58 $19.65 $22.00

Expenses (per Sq. Ft.)Maintenance & Repair $0.27 $0.87 $0.57 $0.64Services $0.80 $1.34 $1.07 $1.20Utilities $0.19 $0.43 $0.31 $0.35Admin Fee $0.03 $0.09 $0.06 $0.07Other CA Expenses $0.07 $0.09 $0.08 $0.09Property Tax $2.05 $4.70 $3.38 $3.25Insurance $0.35 $0.46 $0.41 $0.45Admin Payroll $0.12 $0.32 $0.22 $0.25Management Fee $0.46 $1.02 $0.74 $0.83Marketing $0.02 $0.03 $0.03 $0.03Other Maintenance $0.08 $0.47 $0.28 $0.31

Total Expenses (per Sq. Ft.) $4.44 $9.82 $7.13 $7.45

NOI Margin (%) 58.58% 65.64% 63.72% 66.12%

IREM Surveys - Retail (Western Great Lakes - Region)



Based on the above, we have estimated a tax per improved square foot of $3.25


4403 Calumet Ave Hammond, IN 96,224 15,120 1,327,500 51,572 $3.41 3.88% 2015 / 01534524 Hohman Ave Hammond, IN 16,000 22,040 313,200 12,168 $0.55 3.89% 2015 / 01534434 Calumet Ave Hammond, IN 18,731 3,456 124,800 4,484 $1.30 3.59% 2015 / 0153524 Gostlin St Hammond, IN 5,830 3,888 87,600 3,176 $0.82 3.63% 2015 / 01534728 Hohman Ave Hammond, IN 3,180 2,016 52,500 2,040 $1.01 3.89% 2015 / 0153

Minimum 3,180 2,016 $52,500 $2,040 $0.55 3.59%Maximum 96,224 22,040 $1,327,500 $51,572 $3.41 3.89%Average 27,993 9,304 $381,120 $14,688 $1.42 3.77%*Tax comparable information was extrapolated from buildings within the Subject market area.

Hammond Retail Tax Comparable Summary


Inflation & Market Leasing AssumptionsYear 1 Year 5 Year 6 Year 7 Year 13 Year 14 Year 15 Year 24 Year 25 Year 26

For the Years Ending Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2040 Dec-2041 Dec-2042Phase I Phase II

Property Market AssumptionsGeneral Inflation 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%Market Inflation 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%Expense Inflation 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%CPI Inflation 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Capital Expenditures ($/SF) 0.00 0.00 N/A 168.98 0.00 442.42 126.51 0.00 0.00 0.00General Vacancy (%) 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%Credit Loss Reserve (%) 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%


Year 1 Year 5 Year 6 Year 7 Year 13 Year 14 Year 15 Year 24 Year 25 Year 26

Retail Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2040 Dec-2041 Dec-2042Term Length (Years/Months) 5 5 5 5 5 5 5 5 5 5Renewal Probability† 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00%Months Vacant 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00Months Vacant (Blended) 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70Market Base Rent (New, $ / SF / Year) 22.00 24.76 25.50 26.27 31.37 32.31 33.28 40.95 41.77 42.60Market Base Rent (Renew, $ / SF / Year) 22.00 24.76 25.50 26.27 31.37 32.31 33.28 40.95 41.77 42.60Market Base Rent (Blended, $ / SF / Year) 22.00 24.76 25.50 26.27 31.37 32.31 33.28 40.95 41.77 42.60Market Rental Value (Continue Prior) Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue PriorUse Market or Prior N/A N/A N/A N/A N/A N/A N/A N/A N/A N/APrior Rent N/A N/A N/A N/A N/A N/A N/A N/A N/A N/AFixed Steps (None) None None None None None None None None None NoneCPI Increases None None None None None None None None None NoneFree Rent (New, Months) 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00Free Rent (Renew, Months) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Free Rent (Blended, Months) 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90Recovery Type Net Net Net Net Net Net Net Net Net NetRecoveries (Net) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/AMiscellaneous Rent None None None None None None None None None NoneIncentives None None None None None None None None None NoneTenant Improvements (New, $ / Area) 10.00 10.82 11.04 11.26 12.68 12.94 13.19 15.77 16.08 16.41Tenant Improvements (Renew, $ / Area) 5.00 5.41 5.52 5.63 6.34 6.47 6.60 7.88 8.04 8.20Tenant Improvements (Blended, $ / Area) 6.50 7.04 7.18 7.32 8.24 8.41 8.58 10.25 10.45 10.66Leasing Commissions (New, Fixed %) 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%Leasing Commissions (Renew, Fixed %) 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50%Leasing Commissions (Blended, Fixed %) 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25%Upon Expiration Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail



For the Years Ending Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Dec-2040 Dec-2041 Dec-2042Phase I Phase II

Rental Revenue Potential Base Rent - - 395,185 1,197,410 1,875,485 1,875,485 7,025,429 12,359,347 20,532,750 20,737,831 21,323,704 Absorption & Turnover Vacancy - - (63,696) (164,051) (39,130) - (2,238,209) (3,342,183) (48,731) (1,131,251) (1,293,335) Free Rent - - (197,592) (170,749) (37,617) - (1,178,559) (966,997) (14,619) (234,952) (414,628) Scheduled Base Rent - - 133,896 862,610 1,798,738 1,875,485 3,608,660 8,050,167 20,469,400 19,371,629 19,615,741 Total Rental Revenue - - 133,896 862,610 1,798,738 1,875,485 3,608,660 8,050,167 20,469,400 19,371,629 19,615,741


Total Tenant Revenue - - 155,827 931,865 1,916,449 1,998,016 3,910,086 8,613,716 21,734,764 20,598,652 20,859,097

Potential Gross Revenue - - 155,827 931,865 1,916,449 1,998,016 3,910,086 8,613,716 21,734,764 20,598,652 20,859,097

Vacancy & Credit Loss Vacancy Allowance - - (7,348) (24,406) (80,085) (99,901) (25,309) - (1,040,444) (283,932) (26,984) Credit Loss - - (3,117) (18,637) (38,329) (39,960) (78,202) (172,274) (434,695) (411,973) (417,182)Total Vacancy & Credit Loss - - (10,465) (43,043) (118,414) (139,861) (103,510) (172,274) (1,475,139) (695,905) (444,166)

Effective Gross Revenue - - 145,362 888,822 1,798,035 1,858,155 3,806,576 8,441,442 20,259,625 19,902,746 20,414,931

Operating Expenses Maintenance and Repair - - 10,918 33,408 50,163 51,166 182,506 319,079 529,591 540,183 550,987 Services - - 20,494 62,712 94,165 96,048 342,597 598,968 994,138 1,014,021 1,034,301 Utilities - - 5,938 18,169 27,281 27,827 99,256 173,532 288,019 293,780 299,655 Admin Fee - - 1,149 3,517 5,281 5,386 19,212 33,589 55,750 56,865 58,002 Common Area Expenses - - 1,532 4,689 7,041 7,181 25,616 44,784 74,330 75,817 77,333 Real Estate Taxes - - 55,600 170,135 255,464 260,573 929,447 1,624,968 2,697,042 2,750,983 2,806,002 Insurance - - 7,757 23,737 35,642 36,355 129,677 226,716 376,291 383,817 391,493 Admin Payroll - - 4,214 12,894 19,361 19,748 70,441 123,153 204,403 208,491 212,660 Management Fee - - 14,174 43,371 65,124 66,426 236,938 414,242 687,538 701,289 715,315 Marketing - - 479 1,465 2,200 2,244 8,005 13,995 23,228 23,692 24,166 Other Maintenance - - 5,267 16,118 24,201 24,686 88,052 153,942 255,505 260,615 265,828 Land Tax 32,352 35,019 - - - - - - - - - Total Operating Expenses 32,352 35,019 127,522 390,214 585,923 597,642 2,131,746 3,726,966 6,185,835 6,309,552 6,435,743

Net Operating Income (32,352) (35,019) 17,840 498,608 1,212,112 1,260,514 1,674,829 4,714,476 14,073,790 13,593,194 13,979,188

Leasing Costs Tenant Improvements - - 171,077 340,002 130,522 65,907 989,609 1,694,575 556,934 416,451 1,083,933 Leasing Commissions - - 93,856 187,440 79,111 40,140 592,746 1,019,139 356,150 266,313 693,156 Total Leasing Costs - - 264,934 527,442 209,633 106,047 1,582,355 2,713,714 913,084 682,765 1,777,089


Total Leasing & Capital Costs - - 7,247,264 7,509,772 209,633 27,526,783 29,003,091 30,134,450 913,084 682,765 1,777,089

Cash Flow Before Debt Service (32,352) (35,019) (7,229,424) (7,011,164) 1,002,478 (26,266,270) (27,328,262) (25,419,974) 13,160,705 12,910,430 12,202,099

Cash Flow Available for Distribution (32,352) (35,019) (7,229,424) (7,011,164) 1,002,478 (26,266,270) (27,328,262) (25,419,974) 13,160,705 12,910,430 12,202,099



Residual Value of Land Present Value (PV) of future cash flows $4,061,705PV (rounded) $4,100,000Total Land Area (Sq. Ft.) 215,682 Price Per Sq. Ft. of Land $19.01

Market Value of LandLand Value per Sq. Ft. $3.50Retail Land Sq. Ft. 215,682 Land Value $754,887


Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Dec-2040 Dec-2041Annual Cash Flows (32,352) (35,019) (7,229,424) (7,011,164) 1,002,478 (26,266,270) (27,328,262) (25,419,974) 13,160,705 12,910,430 Resale Value 237,497,964 Total Cash Flow (32,352) (35,019) (7,229,424) (7,011,164) 1,002,478 (26,266,270) (27,328,262) (25,419,974) 13,160,705 250,408,394

Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Dec-2040 Dec-2041Annual Cash Flow (32,352) (35,019) (7,229,424) (7,011,164) 1,002,478 (26,266,270) (27,328,262) (25,419,974) 13,160,705 12,910,430Resale Value (754,887) 237,497,964Total Cash Flow (787,239) (35,019) (7,229,424) (7,011,164) 1,002,478 (26,266,270) (27,328,262) (25,419,974) 13,160,705 250,408,394


IRR Summary


Financial AssumptionsProperty Type RetailRetail Building Area 526,260 Total Construction Costs (incl. land) $88,816,102All-In Cost per Sq. Ft. $168.77



Cost Feasible Retail RentBased on the analysis performed a cost feasible rent of $23.28 (MG) per square foot per year needs to be achieved in order to justify new construction.

Cost Feasible Rent Analysis Retail



Required NOI Per SF of Improvements $13.50Operating Expenses Per SF $7.45

Required Effective Gross Revenue $20.96Stabilized Occupancy 90.00%


Hammond Gateway – Multifamily Market



Multifamily Market - Market Rents & ConclusionMultifamily Market -Market Rent Conclusion: $13.20 (MG) Annually

Sign Unit Size Asking Asking RentAddress City, State Date (Sq. Ft.) Rent PSF Per Month

9310 Monroe Street Crown Point, IN Listing 777 $963 $1.24440 N Lake Street Gary, IN Listing 470 $588 $1.25430 South Grand Boulevard Gary, IN Listing 560 $608 $1.082217 Tanglewood Drive Hammond, IN Listing 807 $805 $1.009123 Cleveland Street Merrillville, IN Listing 906 $1,542 $1.709123 Cleveland Street Merrillville, IN Listing 948 $1,595 $1.689000 Lincoln Street Merrillville, IN Listing 740 $954 $1.292040 East 84th Street Merrillville, IN Listing 707 $848 $1.205990 Wonderland Drive Portage, IN Listing 686 $835 $1.225656 Willowdale Lane Portage, IN Listing 576 $610 $1.063471 Sunnyside Drive Portage, IN Listing 832 $860 $1.03801 Sherwood Lake Drive Schererville, IN Listing 850 $820 $0.96

Minimum 470 $588 $0.96Maxiumum 948 $1,595 $1.70Average 738 $919 $1.23*Market comparable information was extrapolated from recently signed leases within the Subject market areas.

Multifamily Market Rent Comparable Summary



IREM Data was utilized to calculate an estimated expense ratio for multifamily buildingsin the Subject area. After estimating a multifamily market rent of (MG) $13.20, for theSubject, we estimated expenses for the Subject based on a pro rata expense ratio frominvestor surveys. It should be noted that KPMG utilized a real estate property tax thatwas reflective of comparables found in the marketplace rather than the tax pro ratashare.

Assumptions Chicago,IL - Garden Style

Indianapolis, IN - Garden Style

Gary-Hammond, IN - Garden Style




Expenses (per Sq. Ft.)Management Fee $0.60 $0.25 $0.32 $0.39 $0.41Other Administrative $0.43 $0.22 $0.15 $0.27 $0.28Operating $1.10 $0.79 $0.94 $0.94 $0.99Maintenance $0.79 $0.57 $0.45 $0.60 $0.63Real Estate Taxes $2.25 $0.71 $1.10 $1.35 $1.00Other Tax/Fee/Permit $0.06 $0.03 $0.02 $0.04 $0.04Insurance $0.30 $0.23 $0.24 $0.26 $0.27Recreational/Amenities $0.03 $0.00 - $0.02 $0.02Other Payroll $0.66 $0.00 - $0.33 $0.34


NOI Margin (%) 62.48% 73.48% 70.21% 66.83% 69.95%

IREM Surveys - Multifamily (Averages)




Land Lot Building Total Property Tax PSF Property Tax Year /Address City, State Area (Sq. Ft.) Area (Sq. Ft.) Taxable Value Tax of Building Tax Tax Area

126 Sibley Street Hammond, IN 11,260 20,544 297,900 8,594 $0.42 2.88% 2015 / 01534207 Dearborn Ave Hammond, IN 20,721 17,940 244,000 7,039 $0.39 2.88% 2015 / 01534409 Sheffield Ave Hammond, IN 6,403 13,115 181,700 5,242 $0.40 2.88% 2015 / 01534631 Torrence Ave Hammond, IN 9,520 5,088 143,300 4,134 $0.81 2.88% 2015 / 01534849 Hickory Ave Hammond, IN 8,882 7,185 138,800 4,004 $0.56 2.88% 2015 / 01534408 Sheffield Ave Hammond, IN 3,425 4,680 119,600 3,450 $0.74 2.88% 2015 / 0153709 Gostlin St Hammond, IN 2,825 4,620 108,600 3,133 $0.68 2.88% 2015 / 0153258 Carroll St Hammond, IN 120,153 6,090 102,000 2,943 $0.48 2.89% 2015 / 01534208 Wabash Ave Hammond, IN 9,801 2,970 92,700 2,674 $0.90 2.88% 2015 / 0153


Hammond Multifamily Tax Comparable Summary


Inflation & Market Leasing Assumptions Year 1 Year 5 Year 6 Year 7 Year 13 Year 14 Year 15 Year 16 Year 24 Year 25 Year 26

For the Years Ending Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Dec-2040 Dec-2041 Dec-2042

Phase I Phase IIAssumptions

Cumulative Square Feet - - 61,979 123,959 123,959 388,001 652,043 916,085 1,180,127 1,180,127 1,180,127 Added Square Feet - - 61,979 61,979 - 264,042 264,042 264,042 - - - Vacancy Loss 0% 0% 10% 10% 10% 10% 10% 10% 10% 10% 10%Credit Loss 0% 0% 2% 2% 2% 2% 2% 2% 2% 2% 2%Occupancy from Existing Suply 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%Occupancy from New Suply 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%Occupied Sq. Ft. - - 30,990 92,969 123,959 255,980 520,022 784,064 1,180,127 1,180,127 1,180,127

Average Annual Rent per Square Foot $13.20 $14.86 $16.34 $17.16 $21.29 $22.36 $23.48 $24.42 $29.74 $30.34 $30.95Other Income Per Square Foot $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Market Rent Growth 3.0% 3.0% 10.0% 5.0% 3.0% 5.0% 5.0% 4.0% 2.0% 2.0% 2.0%Loss to Lease 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%Operating Expense Growth 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%Property Tax Growth Rate 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%Operating Expense Ratio n/a n/a 63.4% 41.1% 27.9% 41.1% 33.1% 30.2% 24.9% 24.9% 24.9%NOI Ratio n/a n/a 36.6% 58.9% 72.1% 58.9% 66.9% 69.8% 75.1% 75.1% 75.1%

Taxes on Land (per Sq. Ft.) $0.10 $0.11 n/a n/a n/a n/a n/a n/a n/a n/a n/aCapital Reserves (per Sq. Ft.) $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25


Discounted Cash Flow Analysis Year 1 Year 5 Year 6 Year 7 Year 13 Year 14 Year 15 Year 16 Year 24 Year 25 Year 26


Phase I Phase IIRental Revenue

Potential Base Rent - - 506,446 1,595,305 2,639,673 5,723,579 12,208,796 19,144,148 35,101,199 35,803,223 36,519,288 Loss to Lease - - (10,129) (31,906) (52,793) (114,472) (244,176) (382,883) (702,024) (716,064) (730,386) Scheduled Base Rent - - 496,317 1,563,399 2,586,879 5,609,108 11,964,620 18,761,265 34,399,175 35,087,159 35,788,902

Total Rental Revenue - - 496,317 1,563,399 2,586,879 5,609,108 11,964,620 18,761,265 34,399,175 35,087,159 35,788,902

Other Tenant RevenueOther Income - - - - - - - - - - -

Potential Gross Revenue - - 496,317 1,563,399 2,586,879 5,609,108 11,964,620 18,761,265 34,399,175 35,087,159 35,788,902

Vacancy & Credit LossVacancy Allowance - - (49,632) (156,340) (258,688) (560,911) (1,196,462) (1,876,126) (3,439,918) (3,508,716) (3,578,890) Credit Loss - - (9,926) (31,268) (51,738) (112,182) (239,292) (375,225) (687,984) (701,743) (715,778)

Total Vacancy & Credit Loss - - (59,558) (187,608) (310,426) (673,093) (1,435,754) (2,251,352) (4,127,901) (4,210,459) (4,294,668)

Effective Gross Revenue - - 436,759 1,375,791 2,276,454 4,936,015 10,528,866 16,509,913 30,271,274 30,876,700 31,494,234

Operating Expenses Management Fee - - (28,329) (57,790) (65,081) (207,783) (356,167) (510,404) (770,386) (785,794) (801,509) Other Administrative - - (19,331) (39,436) (44,412) (141,792) (243,050) (348,301) (525,714) (536,228) (546,953) Operating Expense - - (68,815) (140,383) (158,094) (504,744) (865,196) (1,239,865) (1,871,409) (1,908,837) (1,947,014) Maintenance - - (44,013) (89,786) (101,113) (322,822) (553,359) (792,988) (1,196,908) (1,220,847) (1,245,264) Real Estate Taxes (Per Sq. Ft.) - - (69,799) (142,390) (160,354) (511,959) (877,564) (1,257,589) (1,898,161) (1,936,124) (1,974,847) Other Tax/Fee/Permit - - (2,675) (5,457) (6,145) (19,619) (33,630) (48,193) (72,740) (74,195) (75,679) Insurance - - (18,724) (38,196) (43,015) (137,333) (235,407) (337,348) (509,182) (519,366) (529,753) Recreational/Amenities - - (1,094) (2,232) (2,514) (8,026) (13,758) (19,715) (29,757) (30,353) (30,960) Other Payroll - - (24,073) (49,109) (55,305) (176,571) (302,666) (433,734) (654,663) (667,756) (681,111) Land Tax (55,274) (59,830) - - - - - - - - -

Total Operating Expenses (55,274) (59,830) (276,852) (564,779) (636,033) (2,030,649) (3,480,796) (4,988,137) (7,528,921) (7,679,499) (7,833,089) Net Operating Income (55,274) (59,830) 159,907 811,012 1,640,421 2,905,365 7,048,070 11,521,776 22,742,353 23,197,200 23,661,144

Capital ExpendituresBuilding Construction Costs - - (11,393,027) (11,393,027) - (38,569,486) (38,569,486) (38,569,486) - - - Capital Reserves - - (15,495) (30,990) (30,990) (97,000) (163,011) (229,021) (295,032) (295,032) (295,032) Total Capital Expenditures - - (11,408,522) (11,424,016) (30,990) (38,666,486) (38,732,496) (38,798,507) (295,032) (295,032) (295,032)

Total Capital Costs - - (11,408,522) (11,424,016) (30,990) (38,666,486) (38,732,496) (38,798,507) (295,032) (295,032) (295,032) Cash Flow Before Debt Service (55,274) (59,830) (11,248,615) (10,613,005) 1,609,431 (35,761,121) (31,684,427) (27,276,731) 22,447,322 22,902,169 23,366,113




Market Value of LandLand Value per Sq. Ft. $1.25Multifamily (Market) Land Area (Sq. Ft.) 552,736 Land Value $690,920


Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Dec-2040 Dec-2041Annual Cash Flow (55,274) (59,830) (11,248,615) (10,613,005) 1,609,431 (35,761,121) (31,684,427) (27,276,731) 22,447,322 22,902,169Resale Value 390,408,883Total Cash Flow (55,274) (59,830) (11,248,615) (10,613,005) 1,609,431 (35,761,121) (31,684,427) (27,276,731) 22,447,322 413,311,052




IRR Summary


Financial AssumptionsProperty TypeMultifamily (Affordable) Building Area 336,802 Total Construction Costs (incl. land) $33,604,106All-In Cost per Sq. Ft. $99.77

MultifamilyValuation Metrics - As of the DCF Analysis Start Date


Cost Feasible Multifamily Market RentBased on the analysis performed a cost feasible rent of $14.38 (MG) per square foot per year needs to be achieved in order to justify new construction.

Cost Feasible Rent Analysis Multifamily (Market)

Replacement Cost New of Property $151,393,330Overall Capitalization Rate (Ro) 7.00%Total Required Net Operating Income 10,597,533

Total Area of Improvements (Sq. Ft.) 1,180,127




Hammond Gateway – Multifamily Affordable



Multifamily Affordable - Market Rents & ConclusionMultifamily Affordable -Market Rent Conclusion: $10.80 (MG) Annually


1402 173rd Street Hammond, IN Listing 1,090 $819 $0.75131-137 E 5th Ave Gary, IN Listing 881 $847 $0.964400 W 23rd Pl Gary, IN Listing 790 $763 $0.971990 W 24th Ave Gary, IN Listing 755 $838 $1.112173 Carolina St Gary, IN Listing 719 $699 $0.97435 Clark Rd Gary, IN Listing 913 $685 $0.751700 Clark Rd Gary, IN Listing 958 $898 $0.94812 N County Line Rd Gary, IN Listing 784 $777 $0.994864 Grant St Gary, IN Listing 597 $634 $1.062002 Hanley St Gary, IN Listing 955 $673 $0.701400 Jefferson St Gary, IN Listing 1,100 $637 $0.581200 Washington St Gary, IN Listing 789 $831 $1.052320 Broadway St East Chicago, IN Listing 687 $750.00 $1.09445 E Chicago Ave East Chicago, IN Listing 872 $727.00 $0.833637 Main St East Chicago, IN Listing 1,048 $650.00 $0.623537 Pennsylvania Ave East Chicago, IN Listing 854 $695.00 $0.81

Minimum 597 $634.00 $0.58Maxiumum 1,100 $898.00 $1.11Average 862 $745.19 $0.89*Market comparable information was extrapolated from recently signed leases within the Subject market areas.

Multifamily Affordable Rent Comparable Summary



IREM Data was utilized to calculate an estimated expense ratio for multifamily buildingsin the Subject area. After estimating a multifamily affordable market rent of (MG) $10.80,for the Subject, we estimated expenses for the Subject based on a pro rata expense ratiofrom the investor surveys. It should be noted that KPMG utilized a real estate propertytax that was reflective of comparables found in the marketplace rather than the tax prorata share.









NOI Margin (%) 62.48% 73.48% 70.21% 66.83% 70.58%




Based on the above, we have estimated a tax per improved square foot of $0.75. We estimated an improved tax per square foot for multifamily affordable that was at a 25.0 percent discount to multifamily market.









Cumulative Square Feet - - 18,594 37,188 37,188 112,091 186,995 261,899 336,802 336,802 336,802 Added Square Feet - - 18,594 18,594 - 74,904 74,904 74,904 - - - Vacancy Loss 0% 0% 10% 10% 10% 10% 10% 10% 10% 10% 10%Credit Loss 0% 0% 2% 2% 2% 2% 2% 2% 2% 2% 2%Occupancy from Existing Suply 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%Occupancy from New Suply 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%Occupied Sq. Ft. - - 9,297 27,891 37,188 74,639 149,543 224,447 336,802 336,802 336,802


Taxes on Land (per Sq. Ft.) $0.08 $0.08 n/a n/a n/a n/a n/a n/a n/a n/a n/aCapital Reserves (per Sq. Ft.) $0.20 $0.20 $0.20 $0.20 $0.20 $0.20 $0.20 $0.20 $0.20 $0.20 $0.20





Potential Base Rent - - 118,659 373,776 606,688 1,278,571 2,689,750 4,198,480 7,674,717 7,828,211 7,984,776 Loss to Lease - - (2,373) (7,476) (12,134) (25,571) (53,795) (83,970) (153,494) (156,564) (159,696) Scheduled Base Rent - - 116,286 366,300 594,555 1,252,999 2,635,955 4,114,511 7,521,223 7,671,647 7,825,080

Total Rental Revenue - - 116,286 366,300 594,555 1,252,999 2,635,955 4,114,511 7,521,223 7,671,647 7,825,080


Potential Gross Revenue - - 116,286 366,300 594,555 1,252,999 2,635,955 4,114,511 7,521,223 7,671,647 7,825,080

Vacancy & Credit LossVacancy Allowance - - (11,629) (36,630) (59,455) (125,300) (263,595) (411,451) (752,122) (767,165) (782,508) Credit Loss - - (2,326) (7,326) (11,891) (25,060) (52,719) (82,290) (150,424) (153,433) (156,502)

Total Vacancy & Credit Loss - - (13,954) (43,956) (71,347) (150,360) (316,315) (493,741) (902,547) (920,598) (939,010)

Effective Gross Revenue - - 102,332 322,344 523,208 1,102,639 2,319,640 3,620,769 6,618,676 6,751,049 6,886,070

Operating Expenses Management Fee - - (6,953) (14,185) (15,974) (49,113) (83,571) (119,388) (179,889) (183,487) (187,156) Other Administrative - - (4,745) (9,680) (10,901) (33,515) (57,029) (81,471) (122,757) (125,212) (127,716) Operating Expense - - (16,891) (34,458) (38,805) (119,305) (203,010) (290,016) (436,983) (445,723) (454,637) Maintenance - - (10,803) (22,038) (24,819) (76,305) (129,840) (185,487) (279,484) (285,074) (290,775) Real Estate Taxes (Per Sq. Ft.) - - (15,705) (32,038) (36,080) (110,927) (188,753) (269,648) (406,294) (414,420) (422,708) Other Tax/Fee/Permit - - (657) (1,339) (1,508) (4,637) (7,891) (11,273) (16,985) (17,325) (17,671) Insurance - - (4,596) (9,375) (10,558) (32,461) (55,236) (78,909) (118,896) (121,274) (123,700) Recreational/Amenities - - (269) (548) (617) (1,897) (3,228) (4,612) (6,948) (7,087) (7,229) Other Payroll - - (5,909) (12,054) (13,575) (41,736) (71,018) (101,454) (152,867) (155,924) (159,043) Land Tax (11,460) (12,404) - - - - - - - - -

Total Operating Expenses (11,460) (12,404) (66,527) (135,715) (152,837) (469,897) (799,577) (1,142,257) (1,721,104) (1,755,526) (1,790,636) Net Operating Income (11,460) (12,404) 35,805 186,629 370,371 632,743 1,520,063 2,478,512 4,897,572 4,995,524 5,095,434


Total Capital Costs - - (2,895,985) (2,899,704) (7,438) (8,619,326) (8,634,306) (8,649,287) (67,360) (67,360) (67,360) Cash Flow Before Debt Service (11,460) (12,404) (2,860,181) (2,713,075) 362,933 (7,986,583) (7,114,243) (6,170,775) 4,830,212 4,928,163 5,028,074




Market Value of LandLand Value per Sq. Ft. $0.94Multifamily (Affordable) Land area (Sq. Ft.) 152,794 Land Value $143,244


Property TypeMultifamily (Affordable) Building Area 336,802 Total Construction Costs (incl. land) $33,604,106All-In Cost per Sq. Ft. $99.77Implied Stabilized Yield to Cost 13.73%


Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Dec-2040 Dec-2041Annual Cash Flow (11,460) (12,404) (2,860,181) (2,713,075) 362,933 (7,986,583) (7,114,243) (6,170,775) 4,830,212 4,928,163Resale Value 84,074,666Total Cash Flow (11,460) (12,404) (2,860,181) (2,713,075) 362,933 (7,986,583) (7,114,243) (6,170,775) 4,830,212 89,002,829




IRR Summary

Analysis Start Date 1/1/2017Year of Sale 25Year of Stabilization 19Discount Rate 12.00%Exit Cap Rate 6.00%Sale Costs 1.00%IRR not inclusive of Land Acquisition 13.89%Construction Cost Inflatation Rate 1.0%TI and LC Expense Growth Rate 2.0%



Cost Feasible Multifamily Affordable RentBased on the analysis performed a cost feasible rent of $10.70 (MG) per square foot per year needs to be achieved in order to justify new construction.

Cost Feasible Rent Analysis Multifamily (Affordable)






Hammond South Area and Cost Projections






Total Land Area (Sq. Ft.) 1,090,504 527,754 Developable Land Area (Sq. Ft.) 204,547 400,377 92,046 81,819 - - - - 340,321 60,057 % Land Developable 18.8% 75.9%Land for NICTD Purposes - -

Total Buildable Area - Sq. Ft. 173,865 360,339 92,046 81,819 - - - - 306,288 54,051


Building Costs $41,379,956 $42,312,855 $17,489,000 $13,091,000 $0 $0 $0 $0 $42,880,000 $5,946,000[2] Site Costs $1,079,507 $1,560,869 $617,380 $462,126 $0 $0 $0 $0 $948,045 $131,462[2] Road Costs $5,146,500 $12,798,500 $2,943,334 $2,203,166 $0 $0 $0 $0 $4,519,762 $626,738[2] Major Intersection Costs $500,000 $0 $285,955 $214,045 $0 $0 $0 $0 $439,110 $60,890[2] Minor Intersection Costs $160,000 $0 $91,506 $68,494 $0 $0 $0 $0 $140,515 $19,485

Tenant Improvements n/a n/a $1,026,425 $907,354 n/a n/a n/a n/a n/a n/aLeasing Commissions n/a n/a $673,922 $500,272 n/a n/a $33,576 $52,488 n/a n/a

Total Costs $48,265,963 $56,672,224 $23,127,521 $17,446,458 $0 $0 $33,576 $52,488 $48,927,433 $6,784,574Total Costs (less Other Costs) $41,379,956 $42,312,855 $19,189,347 $14,498,626 $0 $0 $33,576 $52,488 $42,880,000 $5,946,000




Hammond South – Office








*Market comparable information was extrapolated from recently signed leases from within the Subject market areas. Market participants indicated that $16.00 (NNN) was a reasonable rental estimate; based on our expense assumptions, we estimated $20.00 (MG) as a reasonable office rent conclusion for Hammond South.









Total Income (per Sq. Ft.) $11.22 $15.29 $13.16 $13.22 $20.00.



NOI Margin (%) 4.95% 57.34% 48.71% 39.66% 53.57%


*KPMG notes that the Suburban Chicago office margins are substantially lower than the other market areas.





200 Russell St Hammond, IN 5,314 46,494 753,400 29,269 $0.63 3.88% 2015 / 0153219 Russell St Hammond, IN 153,217 62,698 530,000 20,590 $0.33 3.88% 2015 / 01535265 Hohman Ave Hammond, IN 12,400 60,892 341,100 13,251 $0.22 3.88% 2015 / 01534515 Hohman Ave Hammond, IN 6,400 2,464 186,400 7,242 $2.94 3.88% 2015 / 0153


Hammond Office Tax Comparable Summary


Inflation & Market Leasing AssumptionsYear 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14

For the Years Ending Dec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027 Dec-2028 Dec-2029 Dec-2030Phase I Phase I

Property Market AssumptionsGeneral Inflation 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%Market Inflation 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%Expense Inflation 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%CPI Inflation 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Capital Expenditures ($/SF) 0.00 0.00 0.00 0.00 0.00 N/A 174.59 0.00 0.00 0.00 0.00 0.00 0.00 0.00General Vacancy (%) 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%Credit Loss Reserve (%) 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%


Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14

Office Dec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027 Dec-2028 Dec-2029 Dec-2030Term Length (Years/Months) 5 5 5 5 5 5 5 5 5 5 5 5 5 5Renewal Probability† 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00%Months Vacant 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00Months Vacant (Blended) 3.15 3.15 3.15 3.15 3.15 3.15 3.15 3.15 3.15 3.15 3.15 3.15 3.15 3.15Market Base Rent (New, $ / SF / Year) 20.00 20.60 21.22 21.85 22.51 24.76 26.62 27.95 29.35 30.52 31.74 32.69 33.67 34.68Market Base Rent (Renew, $ / SF / Year) 20.00 20.60 21.22 21.85 22.51 24.76 26.62 27.95 29.35 30.52 31.74 32.69 33.67 34.68Market Base Rent (Blended, $ / SF / Year) 20.00 20.60 21.22 21.85 22.51 24.76 26.62 27.95 29.35 30.52 31.74 32.69 33.67 34.68Market Rental Value (Continue Prior) Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue PriorUse Market or Prior N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/APrior Rent N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/AFixed Steps (None) None None None None None None None None None None None None None NoneCPI Increases None None None None None None None None None None None None None NoneFree Rent (New, Months) 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00Free Rent (Renew, Months) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Free Rent (Blended, Months) 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05Recovery Type Net Net Net Net Net Net Net Net Net Net Net Net Net NetRecoveries (Net) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/AMiscellaneous Rent None None None None None None None None None None None None None NoneIncentives None None None None None None None None None None None None None NoneTenant Improvements (New, $ / Area) 10.00 10.20 10.40 10.61 10.82 11.04 11.26 11.49 11.72 11.95 12.19 12.43 12.68 12.94Tenant Improvements (Renew, $ / Area) 5.00 5.10 5.20 5.31 5.41 5.52 5.63 5.74 5.86 5.98 6.09 6.22 6.34 6.47Tenant Improvements (Blended, $ / Area) 6.75 6.89 7.02 7.16 7.31 7.45 7.60 7.75 7.91 8.07 8.23 8.39 8.56 8.73Leasing Commissions (New, Fixed %) 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00%Leasing Commissions (Renew, Fixed %) 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%Leasing Commissions (Blended, Fixed %) 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05%Upon Expiration Office Office Office Office Office Office Office Office Office Office Office Office Office Office


Discounted Cash Flow AnalysisYear 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14


Rental Revenue Potential Base Rent - - - - - 569,792 1,752,111 2,364,638 2,364,638 2,364,638 2,486,830 2,801,782 2,984,864 2,984,864 Absorption & Turnover Vacancy - - - - - (136,329) (146,554) - - - (365,208) (376,164) - - Free Rent - - - - - (284,896) (306,263) - - - (98,398) (131,610) (31,168) - Scheduled Base Rent - - - - - 148,567 1,299,294 2,364,638 2,364,638 2,364,638 2,023,224 2,294,008 2,953,696 2,984,864 Total Rental Revenue - - - - - 148,567 1,299,294 2,364,638 2,364,638 2,364,638 2,023,224 2,294,008 2,953,696 2,984,864

Other Tenant Revenue Total Expense Recoveries - - - - - 61,849 228,940 338,342 345,109 352,011 314,170 320,453 373,557 381,028 Total Other Tenant Revenue - - - - - 61,849 228,940 338,342 345,109 352,011 314,170 320,453 373,557 381,028

Total Tenant Revenue - - - - - 210,416 1,528,234 2,702,980 2,709,747 2,716,649 2,337,394 2,614,461 3,327,253 3,365,892

Potential Gross Revenue - - - - - 210,416 1,528,234 2,702,980 2,709,747 2,716,649 2,337,394 2,614,461 3,327,253 3,365,892

Vacancy & Credit Loss Vacancy Allowance - - - - - (9,461) (59,013) (135,149) (135,487) (135,832) (68,092) (75,029) (166,363) (168,295) Credit Loss - - - - - (4,208) (30,565) (54,060) (54,195) (54,333) (46,748) (52,289) (66,545) (67,318)Total Vacancy & Credit Loss - - - - - (13,669) (89,577) (189,209) (189,682) (190,165) (114,840) (127,318) (232,908) (235,612)

Effective Gross Revenue - - - - - 196,747 1,438,657 2,513,771 2,520,064 2,526,483 2,222,554 2,487,144 3,094,346 3,130,279

Operating Expenses Utilities - - - - - 37,348 114,284 155,426 158,534 161,705 164,939 168,238 171,603 175,035 Manintenance and Repair - - - - - 34,299 104,954 142,738 145,593 148,505 151,475 154,504 157,594 160,746 Payroll Administrative - - - - - 17,276 52,866 71,898 73,336 74,802 76,298 77,824 79,381 80,968 Advertising - - - - - 2,287 6,997 9,516 9,706 9,900 10,098 10,300 10,506 10,716 Management Fee - - - - - 28,201 86,296 117,362 119,710 122,104 124,546 127,037 129,578 132,169 Other Administrative - - - - - 9,654 29,543 40,178 40,982 41,801 42,637 43,490 44,360 45,247 Services - - - - - 36,585 111,951 152,254 155,299 158,405 161,573 164,805 168,101 171,463 Insurance - - - - - 9,654 29,543 40,178 40,982 41,801 42,637 43,490 44,360 45,247 Property Taxes - - - - - 57,165 174,924 237,897 242,655 247,508 252,458 257,507 262,657 267,910 Other Tax/Fee/Permit - - - - - 3,049 9,329 12,688 12,942 13,200 13,464 13,734 14,008 14,289

Land Tax 9,205 9,389 9,576 9,768 9,963 - - - - - - - - - Total Operating Expenses 9,205 9,389 9,576 9,768 9,963 235,519 720,687 980,135 999,738 1,019,732 1,040,127 1,060,930 1,082,148 1,103,791

Net Operating Income (9,205) (9,389) (9,576) (9,768) (9,963) (38,772) 717,969 1,533,636 1,520,327 1,506,751 1,182,427 1,426,214 2,012,197 2,026,488

Leasing Costs Tenant Improvements - - - - - 254,066 513,212 259,147 - - 148,108 341,238 236,032 42,902 Leasing Commissions - - - - - 162,391 336,961 174,570 - - 113,673 263,353 183,256 33,576 Total Leasing Costs - - - - - 416,456 850,173 433,717 - - 261,780 604,591 419,288 76,477

Capital Expenditures Building Construction Costs - - - - - 10,713,587 10,713,587 - - - - - - - Total Capital Expenditures - - - - - 10,713,587 10,713,587 - - - - - - -

Total Leasing & Capital Costs - - - - - 11,130,043 11,563,760 433,717 - - 261,780 604,591 419,288 76,477

Cash Flow Before Debt Service (9,205) (9,389) (9,576) (9,768) (9,963) (11,168,815) (10,845,791) 1,099,919 1,520,327 1,506,751 920,647 821,623 1,592,909 1,950,011

Cash Flow Available for Distribution (9,205) (9,389) (9,576) (9,768) (9,963) (11,168,815) (10,845,791) 1,099,919 1,520,327 1,506,751 920,647 821,623 1,592,909 1,950,011




IRR Summary

Dec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027 Dec-2028 Dec-2029Annual Cash Flow (9,205) (9,389) (9,576) (9,768) (9,963) (11,168,815) (10,845,791) 1,099,919 1,520,327 1,506,751 920,647 821,623 1,592,909Resale Value (230,116) 33,437,052 Total Cash Flow (239,321) (9,389) (9,576) (9,768) (9,963) (11,168,815) (10,845,791) 1,099,919 1,520,327 1,506,751 920,647 821,623 35,029,961


Present Value (PV) of future cash flows ($80,588)PV (rounded) ($100,000)Total Land Area (Sq. Ft.) 92,046 Price Per Sq. Ft. of Land ($1.09)



Financial AssumptionsProperty Type OfficeOffice Building Area 92,046 Total Construction Costs (incl. land) $18,022,676All-In Cost per Sq. Ft. $195.80



Dec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027 Dec-2028 Dec-2029Annual Cash Flows (9,205) (9,389) (9,576) (9,768) (9,963) (11,168,815) (10,845,791) 1,099,919 1,520,327 1,506,751 920,647 821,623 1,592,909 Resale Value 33,437,052 Total Cash Flow (9,205) (9,389) (9,576) (9,768) (9,963) (11,168,815) (10,845,791) 1,099,919 1,520,327 1,506,751 920,647 821,623 35,029,961

Hammond South – Retail









NOI Margin (%) 58.58% 65.64% 63.72% 66.12%






4403 Calumet Ave Hammond, IN 96,224 15,120 1,327,500 51,572 $3.41 3.88% 2015 / 01534524 Hohman Ave Hammond, IN 16,000 22,040 313,200 12,168 $0.55 3.89% 2015 / 01534434 Calumet Ave Hammond, IN 18,731 3,456 124,800 4,484 $1.30 3.59% 2015 / 0153524 Gostlin St Hammond, IN 5,830 3,888 87,600 3,176 $0.82 3.63% 2015 / 01534728 Hohman Ave Hammond, IN 3,180 2,016 52,500 2,040 $1.01 3.89% 2015 / 0153


Hammond Retail Tax Comparable Summary


Inflation & Market Leasing AssumptionsYear 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14





Retail Dec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027 Dec-2028 Dec-2029 Dec-2030Term Length (Years/Months) 5 5 5 5 5 5 5 5 5 5 5 5 5 5Renewal Probability† 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00%Months Vacant 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00Months Vacant (Blended) 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70Market Base Rent (New, $ / SF / Year) 22.00 22.66 23.34 24.04 24.76 25.50 26.27 27.06 27.87 28.71 29.57 30.45 31.37 32.31Market Base Rent (Renew, $ / SF / Year) 22.00 22.66 23.34 24.04 24.76 25.50 26.27 27.06 27.87 28.71 29.57 30.45 31.37 32.31Market Base Rent (Blended, $ / SF / Year) 22.00 22.66 23.34 24.04 24.76 25.50 26.27 27.06 27.87 28.71 29.57 30.45 31.37 32.31Market Rental Value (Continue Prior) Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue PriorUse Market or Prior N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/APrior Rent N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/AFixed Steps (None) None None None None None None None None None None None None None NoneCPI Increases None None None None None None None None None None None None None NoneFree Rent (New, Months) 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00Free Rent (Renew, Months) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Free Rent (Blended, Months) 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90Recovery Type Net Net Net Net Net Net Net Net Net Net Net Net Net NetRecoveries (Net) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/AMiscellaneous Rent None None None None None None None None None None None None None NoneIncentives None None None None None None None None None None None None None NoneTenant Improvements (New, $ / Area) 10.00 10.20 10.40 10.61 10.82 11.04 11.26 11.49 11.72 11.95 12.19 12.43 12.68 12.94Tenant Improvements (Renew, $ / Area) 5.00 5.10 5.20 5.31 5.41 5.52 5.63 5.74 5.86 5.98 6.09 6.22 6.34 6.47Tenant Improvements (Blended, $ / Area) 6.50 6.63 6.76 6.90 7.04 7.18 7.32 7.47 7.62 7.77 7.92 8.08 8.24 8.41Leasing Commissions (New, Fixed %) 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%Leasing Commissions (Renew, Fixed %) 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50%Leasing Commissions (Blended, Fixed %) 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25%Upon Expiration Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail




Rental Revenue Potential Base Rent - - - - - 521,672 1,580,667 2,118,705 2,118,705 2,118,705 2,189,023 2,337,989 2,475,238 2,475,238 Absorption & Turnover Vacancy - - - - - (80,183) (208,958) - - - (302,381) (266,465) (46,337) - Free Rent - - - - - (260,836) (229,855) (38,985) - - (88,698) (47,756) (49,189) - Scheduled Base Rent - - - - - 180,654 1,141,854 2,079,720 2,118,705 2,118,705 1,797,944 2,023,768 2,379,713 2,475,238 Total Rental Revenue - - - - - 180,654 1,141,854 2,079,720 2,118,705 2,118,705 1,797,944 2,023,768 2,379,713 2,475,238






Operating Expenses Maintenance and Repair - - - - - 14,453 44,228 60,150 61,353 62,580 63,832 65,108 66,410 67,739 Services - - - - - 18,744 57,358 78,007 79,567 81,158 82,782 84,437 86,126 87,849 Utilities - - - - - 5,646 17,276 23,496 23,966 24,445 24,934 25,433 25,942 26,460 Admin Fee - - - - - 10,163 31,098 42,293 43,139 44,002 44,882 45,779 46,695 47,629 Common Area Expenses - - - - - 73,396 224,594 305,449 311,558 317,789 324,145 330,628 337,240 343,985 Real Estate Taxes - - - - - 2,033 6,220 8,459 8,628 8,800 8,976 9,156 9,339 9,526 Insurance - - - - - 1,581 4,837 6,579 6,710 6,845 6,982 7,121 7,264 7,409 Admin Payroll - - - - - 7,904 24,187 32,895 33,552 34,223 34,908 35,606 36,318 37,045 Management Fee - - - - - 27,100 82,927 112,781 115,037 117,338 119,684 122,078 124,520 127,010 Marketing - - - - - 678 2,073 2,820 2,876 2,933 2,992 3,052 3,113 3,175 Other Maintenance - - - - - 7,001 21,423 29,135 29,718 30,312 30,918 31,537 32,168 32,811 Land Tax 12,273 12,518 12,769 13,024 13,285 - - - - - - - - - Total Operating Expenses 12,273 12,518 12,769 13,024 13,285 168,698 516,221 702,063 716,104 730,426 745,035 759,935 775,134 790,637

Net Operating Income (12,273) (12,518) (12,769) (13,024) (13,285) 27,103 659,908 1,365,806 1,390,695 1,379,101 1,084,218 1,298,650 1,603,090 1,661,935

Leasing Costs Tenant Improvements - - - - - 225,834 451,067 230,453 5,221 - 158,469 242,962 170,675 86,182 Leasing Commissions - - - - - 123,897 248,676 127,699 2,921 - 94,649 145,608 103,448 52,488 Total Leasing Costs - - - - - 349,731 699,742 358,152 8,141 - 253,118 388,570 274,123 138,671


Total Leasing & Capital Costs - - - - - 8,285,452 8,635,463 358,152 8,141 - 253,118 388,570 274,123 138,671

Cash Flow Before Debt Service (12,273) (12,518) (12,769) (13,024) (13,285) (8,258,350) (7,975,555) 1,007,653 1,382,554 1,379,101 831,100 910,080 1,328,967 1,523,264

Cash Flow Available for Distribution (12,273) (12,518) (12,769) (13,024) (13,285) (8,258,350) (7,975,555) 1,007,653 1,382,554 1,379,101 831,100 910,080 1,328,967 1,523,264



Residual Value of LandPresent Value (PV) of future cash flows $819,520PV (rounded) $800,000Total Land Area (Sq. Ft.) 81,819 Price Per Sq. Ft. of Land $9.78


Dec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027 Dec-2028 Dec-2029Annual Cash Flow (12,273) (12,518) (12,769) (13,024) (13,285) (8,258,350) (7,975,555) 1,007,653 1,382,554 1,379,101 831,100 910,080 1,328,967Resale Value (286,366) 27,421,928 Total Cash Flow (298,639) (12,518) (12,769) (13,024) (13,285) (8,258,350) (7,975,555) 1,007,653 1,382,554 1,379,101 831,100 910,080 28,750,895


IRR Summary

Dec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027 Dec-2028 Dec-2029Annual Cash Flows (12,273) (12,518) (12,769) (13,024) (13,285) (8,258,350) (7,975,555) 1,007,653 1,382,554 1,379,101 831,100 910,080 1,328,967 Resale Value 27,421,928 Total Cash Flow (12,273) (12,518) (12,769) (13,024) (13,285) (8,258,350) (7,975,555) 1,007,653 1,382,554 1,379,101 831,100 910,080 28,750,895





Hammond South – Multifamily Market













NOI Margin (%) 62.48% 73.48% 70.21% 66.83% 69.95%






Cumulative Square Feet - - - - - 76,572 153,144 229,716 306,288 306,288 306,288 Added Square Feet - - - - - 76,572 76,572 76,572 - - - Vacancy Loss 0% 0% 10% 10% 10% 10% 10% 10% 10% 10% 10%Credit Loss 0% 0% 2% 2% 2% 2% 2% 2% 2% 2% 2%Occupancy from Existing Suply 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%Occupancy from New Suply 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%Occupied Sq. Ft. - - - - - 38,286 114,858 191,430 306,288 306,288 306,288

Average Annual Rent per Square Foot $13.20 $14.86 $15.30 $15.76 $18.82 $20.23 $21.24 $22.31 $28.81 $29.67 $30.56Other Income Per Square Foot $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Market Rent Growth 3.0% 3.0% 3.0% 3.0% 3.0% 7.5% 5.0% 5.0% 3.0% 3.0% 3.0%Loss to Lease 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%Operating Expense Growth 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%Property Tax Growth Rate 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%Operating Expense Ratio n/a n/a n/a n/a n/a 60.0% 38.9% 34.0% 25.7% 25.4% 25.2%NOI Ratio n/a n/a n/a n/a n/a 40.0% 61.1% 66.0% 74.3% 74.6% 74.8%

Taxes on Land (per Sq. Ft.) $0.10 $0.11 $0.11 $0.11 $0.13 n/a n/a n/a n/a n/a n/aCapital Reserves (per Sq. Ft.) $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25





Potential Base Rent - - - - - 774,586 2,439,947 4,269,907 8,823,246 9,087,944 9,360,582 Loss to Lease - - - - - (15,492) (48,799) (85,398) (176,465) (181,759) (187,212) Scheduled Base Rent - - - - - 759,095 2,391,148 4,184,509 8,646,781 8,906,185 9,173,370

Total Rental Revenue - - - - - 759,095 2,391,148 4,184,509 8,646,781 8,906,185 9,173,370


Potential Gross Revenue - - - - - 759,095 2,391,148 4,184,509 8,646,781 8,906,185 9,173,370

Vacancy & Credit LossVacancy Allowance - - - - - (75,909) (239,115) (418,451) (864,678) (890,618) (917,337) Credit Loss - - - - - (15,182) (47,823) (83,690) (172,936) (178,124) (183,467)

Total Vacancy & Credit Loss - - - - - (91,091) (286,938) (502,141) (1,037,614) (1,068,742) (1,100,804)

Effective Gross Revenue - - - - - 668,003 2,104,210 3,682,368 7,609,168 7,837,443 8,072,566

Operating Expenses Management Fee - - - - - (41,006) (83,652) (127,988) (199,945) (203,944) (208,023) Other Administrative - - - - - (27,983) (57,085) (87,340) (136,443) (139,172) (141,955) Operating Expense - - - - - (99,611) (203,207) (310,907) (485,703) (495,417) (505,325) Maintenance - - - - - (63,709) (129,966) (198,849) (310,644) (316,857) (323,194) Real Estate Taxes (Per Sq. Ft.) - - - - - (101,035) (206,112) (315,351) (492,646) (502,499) (512,549) Other Tax/Fee/Permit - - - - - (3,872) (7,899) (12,085) (18,879) (19,256) (19,642) Insurance - - - - - (27,103) (55,290) (84,593) (132,152) (134,795) (137,491) Recreational/Amenities - - - - - (1,584) (3,231) (4,944) (7,723) (7,878) (8,035) Other Payroll - - - - - (34,846) (71,087) (108,763) (169,910) (173,308) (176,775) Land Tax (34,032) (36,837) (37,574) (38,326) (43,161) - - - - - -

Total Operating Expenses (34,032) (36,837) (37,574) (38,326) (43,161) (400,749) (817,529) (1,250,819) (1,954,045) (1,993,126) (2,032,988) Net Operating Income (34,032) (36,837) (37,574) (38,326) (43,161) 267,254 1,286,681 2,431,549 5,655,123 5,844,317 6,039,578

Capital ExpendituresBuilding Construction Costs - - n/a n/a n/a (12,231,858) (12,231,858) (12,231,858) - - - Capital Reserves - - - - - (19,143) (38,286) (57,429) (76,572) (76,572) (76,572) Total Capital Expenditures - - - - - (12,251,001) (12,270,144) (12,289,287) (76,572) (76,572) (76,572)

Total Capital Costs - - - - - (12,251,001) (12,270,144) (12,289,287) (76,572) (76,572) (76,572) Cash Flow Before Debt Service (34,032) (36,837) (37,574) (38,326) (43,161) (11,983,747) (10,983,463) (9,857,739) 5,578,551 5,767,745 5,963,006

Cash Flow Available for Distribution (34,032) (36,837) (37,574) (38,326) (43,161) (11,983,747) (10,983,463) (9,857,739) 5,578,551 5,767,745 5,963,006




Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Dec-2040 Dec-2041Annual Cash Flow (34,032) (36,837) (37,574) (38,326) (43,161) (11,983,747) (10,983,463) (9,857,739) 5,578,551 5,767,745Resale Value 99,653,032Total Cash Flow (34,032) (36,837) (37,574) (38,326) (43,161) (11,983,747) (10,983,463) (9,857,739) 5,578,551 105,420,777


Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Dec-2040 Dec-2041Annual Cash Flow (34,032) (36,837) (37,574) (38,326) (43,161) (11,983,747) (10,983,463) (9,857,739) 5,578,551 5,767,745Resale Value (425,401) 99,653,032Total Cash Flow (459,433) (36,837) (37,574) (38,326) (43,161) (11,983,747) (10,983,463) (9,857,739) 5,578,551 105,420,777


IRR Summary


Financial AssumptionsProperty TypeMultifamily (Market) Building Area 306,288 Total Construction Costs (incl. land) $38,834,665All-In Cost per Sq. Ft. $126.79



Hammond South – Multifamily Affordable













NOI Margin (%) 62.48% 73.48% 70.21% 66.83% 70.58%






Potential Base Rent - - - - - 111,839 352,292 616,511 1,273,945 1,312,163 1,351,528 Loss to Lease - - - - - (2,237) (7,046) (12,330) (25,479) (26,243) (27,031) Scheduled Base Rent - - - - - 109,602 345,246 604,180 1,248,466 1,285,920 1,324,497

Total Rental Revenue - - - - - 109,602 345,246 604,180 1,248,466 1,285,920 1,324,497


Potential Gross Revenue - - - - - 109,602 345,246 604,180 1,248,466 1,285,920 1,324,497


Total Vacancy & Credit Loss - - - - - (13,152) (41,430) (72,502) (149,816) (154,310) (158,940)

Effective Gross Revenue - - - - - 96,450 303,816 531,679 1,098,650 1,131,609 1,165,558

Operating Expenses Management Fee - - - - - (5,921) (12,078) (18,480) (28,869) (29,446) (30,035) Other Administrative - - - - - (4,040) (8,242) (12,611) (19,700) (20,094) (20,496) Operating Expense - - - - - (14,382) (29,340) (44,890) (70,128) (71,531) (72,961) Maintenance - - - - - (9,199) (18,765) (28,711) (44,852) (45,749) (46,664) Real Estate Taxes (Per Sq. Ft.) - - - - - (13,372) (27,280) (41,738) (65,203) (66,507) (67,837) Other Tax/Fee/Permit - - - - - (559) (1,140) (1,745) (2,726) (2,780) (2,836) Insurance - - - - - (3,913) (7,983) (12,214) (19,081) (19,462) (19,852) Recreational/Amenities - - - - - (229) (467) (714) (1,115) (1,137) (1,160) Other Payroll - - - - - (5,031) (10,264) (15,704) (24,532) (25,023) (25,524) Land Tax (4,504) (4,876) (4,973) (5,073) (5,712) - - - - - -

Total Operating Expenses (4,504) (4,876) (4,973) (5,073) (5,712) (56,647) (115,559) (176,805) (276,207) (281,731) (287,366) Net Operating Income (4,504) (4,876) (4,973) (5,073) (5,712) 39,803 188,257 354,874 822,443 849,878 878,192


Total Capital Costs - - - - - (1,698,846) (1,701,549) (1,704,251) (10,810) (10,810) (10,810) Cash Flow Before Debt Service (4,504) (4,876) (4,973) (5,073) (5,712) (1,659,043) (1,513,291) (1,349,377) 811,632 839,068 867,381

Cash Flow Available for Distribution (4,504) (4,876) (4,973) (5,073) (5,712) (1,659,043) (1,513,291) (1,349,377) 811,632 839,068 867,381






Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Dec-2040 Dec-2041Annual Cash Flow (4,504) (4,876) (4,973) (5,073) (5,712) (1,659,043) (1,513,291) (1,349,377) 811,632 839,068Resale Value 14,490,162Total Cash Flow (4,504) (4,876) (4,973) (5,073) (5,712) (1,659,043) (1,513,291) (1,349,377) 811,632 15,329,229


Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Dec-2040 Dec-2041Annual Cash Flow (4,504) (4,876) (4,973) (5,073) (5,712) (1,659,043) (1,513,291) (1,349,377) 811,632 839,068Resale Value (56,303) 14,490,162Total Cash Flow (60,807) (4,876) (4,973) (5,073) (5,712) (1,659,043) (1,513,291) (1,349,377) 811,632 15,329,229


IRR Summary

Property TypeMultifamily (Affordable) Building Area 54,051 Total Construction Costs (incl. land) $5,421,584All-In Cost per Sq. Ft. $100.31


Residual Value of Land Present Value (PV) of future cash flows $344,907PV (rounded) $300,000Total Land Area (Sq. Ft.) 60,057 Price Per Sq. Ft. of Land $5.00




Replacement Cost New of Property $5,421,584Overall Capitalization Rate (Ro) 7.00%Total Required Net Operating Income 379,511





Munster Ridge Area and Cost Projections






Total Land Area (Sq. Ft.) 937,659 672,441 Developable Land Area (Sq. Ft.) 527,297 605,197 86,454 102,999 160,743 61,799 124,919 151,299 238,199 90,780 % Land Developable 56.2% 90.0%Land for NICTD Purposes - -

Total Buildable Area - Sq. Ft. 785,994 1,158,215 157,794 196,498 313,802 117,899 228,520 289,554 466,409 173,732


Building Costs $95,940,308 $142,298,736 $29,981,000 $31,440,000 $40,794,000 $12,969,000 $45,704,000 $49,224,000 $65,297,000 $19,111,000[2] Site Costs $6,215,828 $6,306,093 $1,617,905 $1,696,639 $2,201,421 $699,863 $1,584,111 $1,706,115 $2,263,209 $662,392[2] Road Costs $19,383,150 $12,621,870 $5,045,199 $5,290,720 $6,864,810 $2,182,422 $4,939,820 $5,320,271 $7,057,487 $2,065,572[2] Major Intersection Costs $375,000 $0 $97,608 $102,358 $132,811 $42,223 $95,569 $102,930 $136,539 $39,962[2] Minor Intersection Costs $160,000 $320,000 $41,646 $43,673 $56,666 $18,015 $40,776 $43,917 $58,257 $17,050

Tenant Improvements n/a n/a $1,659,490 $2,178,781 n/a n/a $3,633,970 $4,529,506 n/a n/aLeasing Commissions n/a n/a $1,124,638 $1,264,781 n/a n/a $3,002,783 $3,100,211 n/a n/a





Munster Ridge – Office








*Market comparable information was extrapolated from recently signed leases from within the Subject market areas and from conversations with market participants; based on our expense assumptions, we estimated $20.50 (MG) as a reasonable office rent conclusion for Munster Ridge.












NOI Margin (%) 4.95% 57.34% 48.71% 39.66% 51.40%


* KPMG notes that the Suburban Chicago office margins are substantially lower than the other market areas.





619 Ridge Rd Munster, IN 24,524 7,210 415,000 11,677 $1.62 2.81% 2015/02781530 Calumet Ave Munster, IN 27,966 6,088 399,700 11,246 $1.85 2.81% 2015/0278224 Calumet Ave Munster, IN 10,585 3,600 348,900 9,817 $2.73 2.81% 2015/027509 Ridge Rd Munster, IN 20,735 11,332 308,900 8,691 $0.77 2.81% 2015/02732 Ridge Rd Munster, IN 12,589 2,490 271,800 7,647 $3.07 2.81% 2015/027


Munster Office Tax Comparable Summary


Inflation & Market Leasing AssumptionsYear 1 Year 5 Year 6 Year 7 Year 13 Year 14 Year 15 Year 16 Year 24 Year 25 Year 26

For the Years Ending Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Dec-2040 Dec-2041 Dec-2041Phase I

Property Market AssumptionsGeneral Inflation 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%Market Inflation 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%Expense Inflation 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%CPI Inflation 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Capital Expenditures ($/SF) 0.00 0.00 N/A 174.83 0.00 74.60 56.28 45.18 0.00 0.00 0.00General Vacancy (%) 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%Credit Loss Reserve (%) 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%


Year 1 Year 5 Year 6 Year 7 Year 13 Year 14 Year 15 Year 16 Year 24 Year 25 Year 26

Office Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Dec-2040 Dec-2041 Dec-2041Term Length (Years/Months) 5 5 5 5 5 5 5 5 5 5 5Renewal Probability† 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00%Months Vacant 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00Months Vacant (Blended) 3.15 3.15 3.15 3.15 3.15 3.15 3.15 3.15 3.15 3.15 3.15Market Base Rent (New, $ / SF / Year) 20.50 23.07 25.38 27.28 34.18 35.21 36.97 38.82 50.13 51.64 53.19Market Base Rent (Renew, $ / SF / Year) 20.50 23.07 25.38 27.28 34.18 35.21 36.97 38.82 50.13 51.64 53.19Market Base Rent (Blended, $ / SF / Year) 20.50 23.07 25.38 27.28 34.18 35.21 36.97 38.82 50.13 51.64 53.19Market Rental Value (Continue Prior) Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue PriorUse Market or Prior N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/APrior Rent N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/AFixed Steps (None) None None None None None None None None None None NoneCPI Increases None None None None None None None None None None NoneFree Rent (New, Months) 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00Free Rent (Renew, Months) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Free Rent (Blended, Months) 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05Recovery Type Net Net Net Net Net Net Net Net Net Net NetRecoveries (Net) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/AMiscellaneous Rent None None None None None None None None None None NoneIncentives None None None None None None None None None None NoneTenant Improvements (New, $ / Area) 10.00 10.82 11.04 11.26 12.68 12.94 13.19 13.46 15.77 16.08 16.41Tenant Improvements (Renew, $ / Area) 5.00 5.41 5.52 5.63 6.34 6.47 6.60 6.73 7.88 8.04 8.20Tenant Improvements (Blended, $ / Area) 6.75 7.31 7.45 7.60 8.56 8.73 8.91 9.08 10.64 10.86 11.07Leasing Commissions (New, Fixed %) 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00%Leasing Commissions (Renew, Fixed %) 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%Leasing Commissions (Blended, Fixed %) 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05%Upon Expiration Office Office Office Office Office Office Office Office Office Office Office

Phase II




Rental Revenue Potential Base Rent - - 1,001,212 3,114,697 5,237,040 7,919,084 10,735,229 13,743,875 18,132,007 18,558,036 19,085,337 Absorption & Turnover Vacancy - - (493,607) (530,628) (218,469) (495,984) (1,152,478) (1,876,493) (954,717) (697,115) (773,516) Free Rent - - (338,403) (534,979) (119,112) (670,511) (665,467) (564,553) (315,845) (181,515) (354,501) Scheduled Base Rent - - 169,201 2,049,090 4,899,459 6,752,589 8,917,284 11,302,829 16,861,446 17,679,406 17,957,320 Total Rental Revenue - - 169,201 2,049,090 4,899,459 6,752,589 8,917,284 11,302,829 16,861,446 17,679,406 17,957,320

Other Tenant Revenue Total Expense Recoveries - - 72,649 366,421 631,732 935,804 1,211,019 1,496,514 1,905,395 1,972,836 2,006,662 Total Other Tenant Revenue - - 72,649 366,421 631,732 935,804 1,211,019 1,496,514 1,905,395 1,972,836 2,006,662

Total Tenant Revenue - - 241,850 2,415,511 5,531,191 7,688,392 10,128,304 12,799,343 18,766,841 19,652,242 19,963,983


Vacancy & Credit Loss Vacancy Allowance - - - (49,708) (218,253) (257,484) (103,906) - (386,107) (320,353) (299,421) Credit Loss - - (4,837) (48,310) (110,624) (153,768) (202,566) (255,987) (375,337) (393,045) (399,280)Total Vacancy & Credit Loss - - (4,837) (98,018) (328,877) (411,252) (306,472) (255,987) (761,444) (713,398) (698,701)


Operating Expenses Utilities - - 65,767 201,247 302,183 457,020 617,929 785,091 919,859 938,256 957,021 Manintenance and Repair - - 119,774 366,510 550,333 832,322 1,125,367 1,429,801 1,675,240 1,708,745 1,742,920 Payroll Administrative - - 16,986 51,978 78,047 118,038 159,598 202,772 237,580 242,331 247,178 Advertising - - 64,460 197,249 296,179 447,941 605,652 769,493 901,584 919,616 938,008 Management Fee - - 16,986 51,978 78,047 118,038 159,598 202,772 237,580 242,331 247,178 Other Administrative - - 49,652 151,935 228,138 345,035 466,516 592,718 694,463 708,352 722,520 Services - - 3,920 11,995 18,011 27,240 36,830 46,794 54,826 55,923 57,041 Insurance - - 30,488 93,293 140,085 211,864 286,457 363,949 426,425 434,953 443,652 Property Taxes - - 60,541 185,254 278,168 420,701 568,822 722,700 846,758 863,693 880,967 Other Tax/Fee/Permit - - 5,227 15,993 24,015 36,320 49,107 62,391 73,101 74,563 76,055

Land Tax 42,274 45,759 - - - - - - - - - Total Operating Expenses 42,274 45,759 433,801 1,327,431 1,993,205 3,014,519 4,075,876 5,178,481 6,067,415 6,188,764 6,312,539

Net Operating Income (42,274) (45,759) (196,788) 990,061 3,209,109 4,262,621 5,745,956 7,364,876 11,937,982 12,750,081 12,952,742

Leasing Costs Tenant Improvements - - 331,224 775,478 497,574 659,181 967,702 866,478 794,846 601,265 639,852 Leasing Commissions - - 217,001 523,747 392,755 514,464 761,507 701,111 741,100 565,445 609,392 Total Leasing Costs - - 548,225 1,299,226 890,329 1,173,645 1,729,209 1,567,590 1,535,946 1,166,710 1,249,244


Total Leasing & Capital Costs - - 18,939,904 19,690,905 890,329 18,628,404 19,183,968 19,022,349 1,535,946 1,166,710 1,249,244



Phase II








Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Dec-2040 Dec-2041Annual Cash Flow (42,274) (45,759) (19,136,692) (18,700,843) 2,318,780 (14,365,783) (13,438,012) (11,657,473) 10,402,036 11,583,371Resale Value (528,431) 219,569,510 Total Cash Flow (570,705) (45,759) (19,136,692) (18,700,843) 2,318,780 (14,365,783) (13,438,012) (11,657,473) 10,402,036 231,152,881


IRR Summary




Munster Ridge – Retail









NOI Margin (%) 58.58% 65.64% 63.72% 63.11%






12 Ridge Rd Munster, IN 94,525 69,014 3,188,300 89,706 $1.30 2.81% 2015/0278930 Calumet Ave Munster, IN 61,768 14,610 2,196,500 61,801 $4.23 2.81% 2015/0279140 Calumet Ave Munster, IN 51,401 5,500 905,400 25,474 $4.63 2.81% 2015/027

Minimum 51,401 5,500 $905,400 $25,474 $1.30 2.81%Maximum 94,525 69,014 $3,188,300 $89,706 $4.63 2.81%Average 69,231 29,708 $2,096,733 $58,994 $3.39 2.81%*Tax comparable information was extrapolated from buildings within the Subject market area.

Munster Retail Tax Comparable Summary







Retail Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Dec-2040 Dec-2041 Dec-2042Term Length (Years/Months) 5 5 5 5 5 5 5 5 5 5 5Renewal Probability† 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00%Months Vacant 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00Months Vacant (Blended) 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70Market Base Rent (New, $ / SF / Year) 22.50 25.32 26.59 27.92 33.99 35.01 36.76 38.60 47.94 48.90 49.88Market Base Rent (Renew, $ / SF / Year) 22.50 25.32 26.59 27.92 33.99 35.01 36.76 38.60 47.94 48.90 49.88Market Base Rent (Blended, $ / SF / Year) 22.50 25.32 26.59 27.92 33.99 35.01 36.76 38.60 47.94 48.90 49.88Market Rental Value (Continue Prior) Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue PriorUse Market or Prior N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/APrior Rent N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/AFixed Steps (None) None None None None None None None None None None NoneCPI Increases None None None None None None None None None None NoneFree Rent (New, Months) 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00Free Rent (Renew, Months) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Free Rent (Blended, Months) 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90Recovery Type Net Net Net Net Net Net Net Net Net Net NetRecoveries (Net) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/AMiscellaneous Rent None None None None None None None None None None NoneIncentives None None None None None None None None None None NoneTenant Improvements (New, $ / Area) 10.00 10.82 11.04 11.26 12.68 12.94 13.19 13.46 15.77 16.08 16.41Tenant Improvements (Renew, $ / Area) 5.00 5.41 5.52 5.63 6.34 6.47 6.60 6.73 7.88 8.04 8.20Tenant Improvements (Blended, $ / Area) 6.50 7.04 7.18 7.32 8.24 8.41 8.58 8.75 10.25 10.45 10.66Leasing Commissions (New, Fixed %) 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%Leasing Commissions (Renew, Fixed %) 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50%Leasing Commissions (Blended, Fixed %) 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25%Upon Expiration Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail

Phase II




Rental Revenue Potential Base Rent - - 1,306,228 3,983,994 6,441,529 9,820,397 13,368,207 17,199,304 22,252,309 22,610,399 23,036,169 Absorption & Turnover Vacancy - - (227,671) (589,789) (155,062) (709,220) (1,636,394) (2,901,821) (1,156,729) (782,354) (970,710) Free Rent - - (653,114) (558,393) (128,090) (844,717) (808,676) (670,318) (345,156) (177,929) (301,188) Scheduled Base Rent - - 425,442 2,835,812 6,158,378 8,266,460 10,923,137 13,627,164 20,750,424 21,650,116 21,764,271 Total Rental Revenue - - 425,442 2,835,812 6,158,378 8,266,460 10,923,137 13,627,164 20,750,424 21,650,116 21,764,271




Vacancy & Credit Loss Vacancy Allowance - - (23,374) (82,510) (275,777) (287,819) (87,540) - (445,809) (398,136) (233,491) Credit Loss - - (9,897) (61,124) (130,714) (176,267) (232,575) (289,685) (437,589) (456,440) (459,016)Total Vacancy & Credit Loss - - (33,271) (143,634) (406,491) (464,086) (320,115) (289,685) (883,398) (854,575) (692,507)


Operating Expenses Maintenance and Repair - - 35,254 107,878 161,985 246,381 334,088 425,205 498,196 508,160 518,323 Management Fee - - 46,102 141,072 211,826 322,190 436,885 556,038 651,487 664,517 677,807 Admin Payroll - - 13,559 41,492 62,302 94,762 128,495 163,540 191,614 195,446 199,355 Insurance - - 24,949 76,345 114,635 174,362 236,432 300,915 352,569 359,621 366,813 Real Estate Taxes - - 216,950 663,866 996,828 1,516,190 2,055,927 2,616,648 3,065,820 3,127,137 3,189,679 Common Area Expenses - - 4,881 14,937 22,429 34,114 46,258 58,875 68,981 70,361 71,768 Admin Fee - - 3,797 11,618 17,444 26,533 35,979 45,791 53,652 54,725 55,819 Utilities - - 18,983 58,088 87,222 132,667 179,894 228,957 268,259 273,624 279,097 Services - - 66,712 204,139 306,525 466,228 632,198 804,619 942,740 961,594 980,826 Marketing - - 1,627 4,979 7,476 11,371 15,419 19,625 22,994 23,454 23,923 Other Maintenance - - 16,814 51,450 77,254 117,505 159,334 202,790 237,601 242,353 247,200 Land Tax 50,860 55,052 - - - - - - - - - Total Operating Expenses 50,860 55,052 449,628 1,375,862 2,065,926 3,142,303 4,260,909 5,423,003 6,353,912 6,480,991 6,610,610

Net Operating Income (50,860) (55,052) 11,958 1,536,691 4,063,264 5,206,973 7,047,737 8,771,584 14,642,142 15,486,426 15,647,662

Leasing Costs Tenant Improvements - - 542,374 1,082,932 410,170 831,397 1,257,631 1,067,513 985,638 745,617 682,944 Leasing Commissions - - 310,229 628,513 269,384 537,923 820,282 714,745 737,858 558,176 511,258 Total Leasing Costs - - 852,603 1,711,445 679,554 1,369,320 2,077,913 1,782,258 1,723,497 1,303,792 1,194,202


Total Leasing & Capital Costs - - 20,139,297 20,998,139 679,554 20,168,398 20,876,991 20,581,336 1,723,497 1,303,792 1,194,202



Phase II







IRR Summary


Residual Value of LandPresent Value (PV) of future cash flows $5,881,468PV (rounded) $5,900,000Total Land Area (Sq. Ft.) 254,298 Price Per Sq. Ft. of Land $23.20




Munster Ridge – Multifamily Market













NOI Margin (%) 62.48% 73.48% 70.21% 66.83% 64.85%






1500 Camellia Drive Munster, IN 153,610 7,029 401,100 11,008 $1.57 2.74% 2015/0278153 Frederick Ave Munster, IN 12,558 6,522 359,600 9,870 $1.51 2.74% 2015/0271424 Camellia Drive Munster, IN 17,990 5,703 344,900 9,466 $1.66 2.74% 2015/0278924 White Oak Ave Munster, IN 12,027 6,216 299,100 8,209 $1.32 2.74% 2015/027


Munster Multifamily Tax Comparable Summary





Potential Base Rent - - 1,340,344 4,222,083 6,986,073 8,698,214 11,995,082 15,451,321 24,261,086 24,746,307 25,241,234 Loss to Lease - - (26,807) (84,442) (139,721) (173,964) (239,902) (309,026) (485,222) (494,926) (504,825) Scheduled Base Rent - - 1,313,537 4,137,641 6,846,352 8,524,249 11,755,180 15,142,295 23,775,864 24,251,381 24,736,409

Total Rental Revenue - - 1,313,537 4,137,641 6,846,352 8,524,249 11,755,180 15,142,295 23,775,864 24,251,381 24,736,409


Potential Gross Revenue - - 1,313,537 4,137,641 6,846,352 8,524,249 11,755,180 15,142,295 23,775,864 24,251,381 24,736,409


Total Vacancy & Credit Loss - - (157,624) (496,517) (821,562) (1,022,910) (1,410,622) (1,817,075) (2,853,104) (2,910,166) (2,968,369)

Effective Gross Revenue - - 1,155,912 3,641,124 6,024,789 7,501,339 10,344,559 13,325,220 20,922,760 21,341,216 21,768,040

Operating Expenses Management Fee - - (74,973) (152,946) (172,242) (240,968) (312,374) (386,541) (532,472) (543,121) (553,984) Other Administrative - - (51,162) (104,371) (117,538) (164,437) (213,165) (263,777) (363,361) (370,628) (378,040) Operating Expense - - (182,124) (371,533) (418,407) (585,356) (758,815) (938,979) (1,293,472) (1,319,342) (1,345,728) Maintenance - - (116,482) (237,624) (267,603) (374,379) (485,320) (600,548) (827,274) (843,819) (860,696) Real Estate Taxes (Per Sq. Ft.) - - (309,218) (630,804) (710,388) (993,841) (1,288,348) (1,594,237) (2,196,111) (2,240,033) (2,284,833) Other Tax/Fee/Permit - - (7,079) (14,441) (16,263) (22,752) (29,495) (36,497) (50,276) (51,282) (52,307) Insurance - - (49,553) (101,089) (113,842) (159,266) (206,462) (255,482) (351,934) (358,973) (366,152) Recreational/Amenities - - (2,896) (5,908) (6,653) (9,308) (12,066) (14,931) (20,568) (20,979) (21,399) Other Payroll - - (63,711) (129,971) (146,368) (204,771) (265,451) (328,477) (452,487) (461,536) (470,767) Land Tax (79,788) (86,366) - - - - - - - - -

Total Operating Expenses (79,788) (86,366) (857,199) (1,748,686) (1,969,305) (2,755,079) (3,571,496) (4,419,468) (6,087,953) (6,209,712) (6,333,907) Net Operating Income (79,788) (86,366) 298,713 1,892,438 4,055,485 4,746,261 6,773,063 8,905,752 14,834,807 15,131,503 15,434,133










IRR Summary






Munster Ridge – Multifamily Affordable













NOI Margin (%) 62.48% 73.48% 70.21% 66.83% 65.37%













Operating Expenses Management Fee - - (22,045) (44,971) (50,645) (70,688) (91,513) (113,143) (155,763) (158,878) (162,055) Other Administrative - - (15,043) (30,689) (34,560) (48,238) (62,449) (77,209) (106,293) (108,419) (110,587) Operating Expense - - (53,551) (109,244) (123,026) (171,715) (222,302) (274,844) (378,376) (385,944) (393,663) Maintenance - - (34,250) (69,870) (78,685) (109,825) (142,179) (175,784) (242,000) (246,840) (251,777) Real Estate Taxes (Per Sq. Ft.) - - (87,133) (177,750) (200,176) (279,397) (361,708) (447,199) (615,655) (627,968) (640,528) Other Tax/Fee/Permit - - (2,081) (4,246) (4,782) (6,674) (8,641) (10,683) (14,707) (15,001) (15,301) Insurance - - (14,570) (29,724) (33,474) (46,721) (60,485) (74,781) (102,950) (105,009) (107,110) Recreational/Amenities - - (852) (1,737) (1,956) (2,730) (3,535) (4,370) (6,017) (6,137) (6,260) Other Payroll - - (18,733) (38,216) (43,037) (60,070) (77,767) (96,147) (132,365) (135,012) (137,712) Land Tax (22,887) (24,773) - - - - - - - - -

Total Operating Expenses (22,887) (24,773) (248,258) (506,447) (570,342) (796,060) (1,030,579) (1,274,160) (1,754,126) (1,789,209) (1,824,993) Net Operating Income (22,887) (24,773) 76,172 515,507 1,088,427 1,266,462 1,808,782 2,379,436 3,976,872 4,056,409 4,137,537








IRR Summary




Residual Value of Land Present Value (PV) of future cash flows ($1,421,142)PV (rounded) ($1,400,000)Total Land Area (Sq. Ft.) 152,579 Price Per Sq. Ft. of Land ($9.18)




Munster Dyer Area and Cost Projections






Total Land Area (Sq. Ft.) 1,632,200 1,253,895 Developable Land Area (Sq. Ft.) 713,005 777,599 71,301 178,251 356,503 106,951 - 150,191 510,768 116,640 % Land Developable 43.7% 62.0%Land for NICTD Purposes - -

Total Buildable Area - Sq. Ft. 1,158,634 968,486 115,863 289,658 579,317 173,795 - 180,229 642,984 145,273


Building Costs $114,864,039 $149,643,088 $22,014,000 $46,345,000 $75,311,000 $19,117,000 $0 $30,639,000 $90,018,000 $15,980,000[2] Site Costs $1,360,711 $3,098,877 $184,012 $387,391 $629,513 $159,796 $0 $305,121 $896,452 $159,138[2] Road Costs $14,830,050 $1,750,000 $2,005,496 $4,222,073 $6,860,903 $1,741,577 $0 $3,325,438 $9,770,205 $1,734,407[2] Major Intersection Costs $500,000 $0 $67,616 $142,349 $231,318 $58,718 $0 $112,118 $329,406 $58,476[2] Minor Intersection Costs $80,000 $0 $10,819 $22,776 $37,011 $9,395 $0 $17,939 $52,705 $9,356

Tenant Improvements n/a n/a $1,248,254 $3,225,465 n/a n/a n/a $3,947,698 n/a n/aLeasing Commissions n/a n/a $840,218 $1,872,329 n/a n/a n/a $2,748,411 n/a n/a

Total Costs $131,634,800 $154,491,966 $26,370,414 $56,217,382 $83,069,745 $21,086,485 $0 $41,095,725 $101,066,767 $17,941,378Total Costs (less Other Costs) $114,864,039 $149,643,088 $24,102,472 $51,442,794 $75,311,000 $19,117,000 $0 $37,335,109 $90,018,000 $15,980,000




Munster Dyer – Office








*Market comparable information was extrapolated from recently signed leases from within the Subject market areas and from conversations with market participants; based on our expense assumptions, we estimated $20.50 (MG) as a reasonable office rent conclusion for Munster Dyer.












NOI Margin (%) 4.95% 57.34% 48.71% 39.66% 51.40%






619 Ridge Rd Munster, IN 24,524 7,210 415,000 11,677 $1.62 2.81% 2015/02781530 Calumet Ave Munster, IN 27,966 6,088 399,700 11,246 $1.85 2.81% 2015/0278224 Calumet Ave Munster, IN 10,585 3,600 348,900 9,817 $2.73 2.81% 2015/027509 Ridge Rd Munster, IN 20,735 11,332 308,900 8,691 $0.77 2.81% 2015/02732 Ridge Rd Munster, IN 12,589 2,490 271,800 7,647 $3.07 2.81% 2015/027


Munster Office Tax Comparable Summary


Inflation & Market Leasing Assumptionsjd Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14





Office Dec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027 Dec-2028 Dec-2029 Dec-2030Term Length (Years/Months) 5 5 5 5 5 5 5 5 5 5 5 5 5 5Renewal Probability† 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00% 65.00%Months Vacant 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00Months Vacant (Blended) 3.15 3.15 3.15 3.15 3.15 3.15 3.15 3.15 3.15 3.15 3.15 3.15 3.15 3.15Market Base Rent (New, $ / SF / Year) 20.50 21.12 21.75 22.40 23.07 25.38 27.28 28.65 30.08 31.28 32.22 33.19 34.18 35.21Market Base Rent (Renew, $ / SF / Year) 20.50 21.12 21.75 22.40 23.07 24.23 25.44 26.46 27.51 28.34 29.19 30.06 30.97 31.90Market Base Rent (Blended, $ / SF / Year) 20.50 21.12 21.75 22.40 23.07 24.63 26.08 27.22 28.41 29.37 30.25 31.16 32.09 33.06Market Rental Value (Continue Prior) Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue Prior Continue PriorUse Market or Prior N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/APrior Rent N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/AFixed Steps (None) None None None None None None None None None None None None None NoneCPI Increases None None None None None None None None None None None None None NoneFree Rent (New, Months) 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00Free Rent (Renew, Months) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Free Rent (Blended, Months) 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05Recovery Type Net Net Net Net Net Net Net Net Net Net Net Net Net NetRecoveries (Net) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/AMiscellaneous Rent None None None None None None None None None None None None None NoneIncentives None None None None None None None None None None None None None NoneTenant Improvements (New, $ / Area) 10.00 10.20 10.40 10.61 10.82 11.04 11.26 11.49 11.72 11.95 12.19 12.43 12.68 12.94Tenant Improvements (Renew, $ / Area) 5.00 5.10 5.20 5.31 5.41 5.52 5.63 5.74 5.86 5.98 6.09 6.22 6.34 6.47Tenant Improvements (Blended, $ / Area) 6.75 6.89 7.02 7.16 7.31 7.45 7.60 7.75 7.91 8.07 8.23 8.39 8.56 8.73Leasing Commissions (New, Fixed %) 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00%Leasing Commissions (Renew, Fixed %) 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%Leasing Commissions (Blended, Fixed %) 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05% 4.05%Upon Expiration Office Office Office Office Office Office Office Office Office Office Office Office Office Office




Rental Revenue Potential Base Rent - - - - - 731,177 2,245,871 3,061,750 3,061,750 3,061,750 3,195,005 3,540,505 3,818,964 3,824,854 Absorption & Turnover Vacancy - - - - - (130,943) (320,815) - - - (438,121) (363,513) (90,385) - Free Rent - - - - - (367,582) (318,310) (79,545) - - (139,629) (110,115) (84,931) - Scheduled Base Rent - - - - - 232,652 1,606,746 2,982,204 3,061,750 3,061,750 2,617,256 3,066,877 3,643,648 3,824,854 Total Rental Revenue - - - - - 232,652 1,606,746 2,982,204 3,061,750 3,061,750 2,617,256 3,066,877 3,643,648 3,824,854






Operating Expenses Utilities - - - - - 48,291 147,770 200,966 204,985 209,085 213,267 217,532 221,883 226,321 Manintenance and Repair - - - - - 87,947 269,117 365,998 373,318 380,784 388,400 396,168 404,091 412,173 Payroll Administrative - - - - - 12,473 38,166 51,905 52,943 54,002 55,082 56,184 57,307 58,454 Advertising - - - - - 47,332 144,834 196,973 200,913 204,931 209,030 213,210 217,475 221,824 Management Fee - - - - - 12,473 38,166 51,905 52,943 54,002 55,082 56,184 57,307 58,454 Other Administrative - - - - - 36,458 111,561 151,723 154,757 157,852 161,009 164,230 167,514 170,865 Services - - - - - 2,878 8,807 11,978 12,218 12,462 12,711 12,965 13,225 13,489 Insurance - - - - - 22,387 68,502 93,163 95,026 96,927 98,865 100,843 102,860 104,917 Property Taxes - - - - - 44,453 136,026 184,995 188,695 192,469 196,319 200,245 204,250 208,335 Other Tax/Fee/Permit - - - - - 3,838 11,743 15,971 16,290 16,616 16,948 17,287 17,633 17,986

Land Tax 14,260 14,545 14,836 15,133 15,436 - - - - - - - - - Total Operating Expenses 14,260 14,545 14,836 15,133 15,436 318,529 974,693 1,325,578 1,352,090 1,379,131 1,406,714 1,434,848 1,463,545 1,492,816

Net Operating Income (14,260) (14,545) (14,836) (15,133) (15,436) (20,605) 828,660 1,855,091 1,910,701 1,891,967 1,468,492 1,891,132 2,409,114 2,522,893

Leasing Costs Tenant Improvements - - - - - 319,808 601,349 327,097 45,557 - 205,705 364,883 278,735 119,558 Leasing Commissions - - - - - 209,522 403,918 226,778 32,381 - 160,269 285,504 220,220 94,985 Total Leasing Costs - - - - - 529,330 1,005,267 553,875 77,938 - 365,975 650,387 498,955 214,543


Total Leasing & Capital Costs - - - - - 12,670,301 13,146,238 553,875 77,938 - 365,975 650,387 498,955 214,543

Cash Flow Before Debt Service (14,260) (14,545) (14,836) (15,133) (15,436) (12,690,906) (12,317,578) 1,301,216 1,832,763 1,891,967 1,102,517 1,240,745 1,910,159 2,308,350

Cash Flow Available for Distribution (14,260) (14,545) (14,836) (15,133) (15,436) (12,690,906) (12,317,578) 1,301,216 1,832,763 1,891,967 1,102,517 1,240,745 1,910,159 2,308,350


Internal Rate of Return CalculationDec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027 Dec-2028 Dec-2029

Annual Cash Flows (14,260) (14,545) (14,836) (15,133) (15,436) (12,690,906) (12,317,578) 1,301,216 1,832,763 1,891,967 1,102,517 1,240,745 1,910,159 Resale Value 41,627,735 Total Cash Flow (14,260) (14,545) (14,836) (15,133) (15,436) (12,690,906) (12,317,578) 1,301,216 1,832,763 1,891,967 1,102,517 1,240,745 43,537,894


Dec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027 Dec-2028 Dec-2029Annual Cash Flow (14,260) (14,545) (14,836) (15,133) (15,436) (12,690,906) (12,317,578) 1,301,216 1,832,763 1,891,967 1,102,517 1,240,745 1,910,159Resale Value (178,251) 41,627,735 Total Cash Flow (192,511) (14,545) (14,836) (15,133) (15,436) (12,690,906) (12,317,578) 1,301,216 1,832,763 1,891,967 1,102,517 1,240,745 43,537,894


IRR Summary




Analysis Start Date 1/1/2017Year of Sale 13Discount Rate 11.00%Exit Cap Rate 6.00%Sale Costs 1.00%IRR not inclusive of Land Acquisition 12.55%Construction Cost Inflation Adjustment 1.0%TI & LC expense growth rate 2.0%



Munster Dyer – Retail









NOI Margin (%) 58.58% 65.64% 63.72% 63.11%






12 Ridge Rd Munster, IN 94,525 69,014 3,188,300 89,706 $1.30 2.81% 2015/0278930 Calumet Ave Munster, IN 61,768 14,610 2,196,500 61,801 $4.23 2.81% 2015/0279140 Calumet Ave Munster, IN 51,401 5,500 905,400 25,474 $4.63 2.81% 2015/027


Munster Retail Tax Comparable Summary








Phase II




Rental Revenue Potential Base Rent - - 1,925,512 5,872,812 9,491,848 11,594,967 13,803,242 16,286,837 21,636,786 21,869,636 22,129,086 Absorption & Turnover Vacancy - - (324,593) (849,162) (210,972) (421,422) (958,502) (2,318,689) (719,986) (521,569) (582,824) Free Rent - - (962,756) (837,590) (185,648) (525,780) (490,107) (424,063) (201,341) (132,301) (194,797) Scheduled Base Rent - - 638,163 4,186,060 9,095,228 10,647,765 12,354,633 13,544,085 20,715,458 21,215,766 21,351,465 Total Rental Revenue - - 638,163 4,186,060 9,095,228 10,647,765 12,354,633 13,544,085 20,715,458 21,215,766 21,351,465




Vacancy & Credit Loss Vacancy Allowance - - (35,006) (127,286) (413,699) (350,333) (137,444) - (450,362) (622,541) (572,150) Credit Loss - - (14,824) (90,244) (193,049) (226,498) (262,789) (287,980) (436,545) (447,213) (450,333)Total Vacancy & Credit Loss - - (49,830) (217,530) (606,748) (576,830) (400,232) (287,980) (886,907) (1,069,754) (1,022,483)


Operating Expenses Maintenance and Repair - - 51,968 159,023 238,782 294,073 351,479 411,064 481,627 491,259 501,085 Management Fee - - 67,959 207,954 312,253 384,557 459,626 537,545 629,820 642,416 655,265 Admin Payroll - - 19,988 61,163 91,839 113,105 135,184 158,102 185,241 188,946 192,725 Insurance - - 36,778 112,540 168,984 208,113 248,739 290,907 340,844 347,661 354,614 Real Estate Taxes - - 319,806 978,606 1,469,426 1,809,678 2,162,948 2,529,624 2,963,858 3,023,135 3,083,598 Common Area Expenses - - 7,196 22,019 33,062 40,718 48,666 56,917 66,687 68,021 69,381 Admin Fee - - 5,597 17,126 25,715 31,669 37,852 44,268 51,868 52,905 53,963 Utilities - - 27,983 85,628 128,575 158,347 189,258 221,342 259,338 264,524 269,815 Services - - 98,340 300,921 451,848 556,476 665,106 777,859 911,386 929,614 948,206 Marketing - - 2,399 7,340 11,021 13,573 16,222 18,972 22,229 22,674 23,127 Other Maintenance - - 24,785 75,842 113,880 140,250 167,628 196,046 229,699 234,293 238,979 Land Tax 65,688 71,103 - - - - - - - - - Total Operating Expenses 65,688 71,103 662,798 2,028,161 3,045,384 3,750,558 4,482,709 5,242,646 6,142,595 6,265,447 6,390,756


Leasing Costs Tenant Improvements - - 799,515 1,610,352 594,485 688,759 758,028 666,057 1,014,679 475,580 466,252 Leasing Commissions - - 457,309 934,735 390,435 447,848 494,186 446,453 759,599 356,024 349,041 Total Leasing Costs - - 1,256,824 2,545,087 984,920 1,136,607 1,252,214 1,112,509 1,774,278 831,604 815,293


Total Leasing & Capital Costs - - 26,816,618 28,104,881 984,920 12,603,146 12,718,753 12,579,048 1,774,278 831,604 815,293



Phase II





Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Dec-2040 Dec-2041Annual Cash Flow (65,688) (71,103) (26,788,048) (25,838,391) 5,015,376 (5,605,658) (4,462,252) (3,710,686) 13,023,461 14,193,830Resale Value (1,067,437) 252,420,284 Total Cash Flow (1,133,125) (71,103) (26,788,048) (25,838,391) 5,015,376 (5,605,658) (4,462,252) (3,710,686) 13,023,461 266,614,114


IRR Summary

Market Value of LandLand Value per Sq. Ft. $3.25Retail Land Sq. Ft. 328,442 Land Value $1,067,437





Munster Dyer – Multifamily Market













NOI Margin (%) 62.48% 73.48% 70.21% 66.83% 64.85%






Cumulative Square Feet - - 289,658 579,317 579,317 740,063 900,809 1,061,555 1,222,301 1,222,301 1,222,301 Added Square Feet - - 289,658 289,658 - 160,746 160,746 160,746 - - - Vacancy Loss 0% 0% 10% 10% 10% 10% 10% 10% 10% 10% 10%Credit Loss 0% 0% 2% 2% 2% 2% 2% 2% 2% 2% 2%Occupancy from Existing Suply 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%Occupancy from New Suply 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%Occupied Sq. Ft. - - 144,829 434,488 579,317 659,690 820,436 981,182 1,222,301 1,222,301 1,222,301











Vacancy & Credit LossVacancy Allowance - - (236,984) (746,499) (1,247,072) (1,526,594) (1,993,507) (2,479,454) (3,989,098) (4,108,771) (4,232,035) Credit Loss - - (47,397) (149,300) (249,414) (305,319) (398,701) (495,891) (797,820) (821,754) (846,407)

Total Vacancy & Credit Loss - - (284,381) (895,799) (1,496,487) (1,831,913) (2,392,209) (2,975,345) (4,786,918) (4,930,526) (5,078,441)


Operating Expenses Management Fee - - (138,410) (282,356) (317,979) (414,335) (514,417) (618,338) (834,186) (850,869) (867,887) Other Administrative - - (94,451) (192,681) (216,990) (282,743) (351,040) (421,956) (569,251) (580,636) (592,249) Operating Expense - - (336,224) (685,896) (772,430) (1,006,496) (1,249,615) (1,502,056) (2,026,391) (2,066,919) (2,108,257) Maintenance - - (215,040) (438,683) (494,028) (643,730) (799,224) (960,679) (1,296,031) (1,321,952) (1,348,391) Real Estate Taxes (Per Sq. Ft.) - - (570,854) (1,164,543) (1,311,464) (1,708,870) (2,121,648) (2,550,253) (3,440,490) (3,509,300) (3,579,486) Other Tax/Fee/Permit - - (13,069) (26,660) (30,024) (39,122) (48,572) (58,384) (78,764) (80,340) (81,946) Insurance - - (91,481) (186,622) (210,167) (273,852) (340,001) (408,687) (551,350) (562,377) (573,625) Recreational/Amenities - - (5,346) (10,906) (12,282) (16,004) (19,870) (23,884) (32,222) (32,866) (33,524) Other Payroll - - (117,619) (239,942) (270,214) (352,096) (437,144) (525,454) (708,879) (723,056) (737,518) Land Tax (173,454) (187,752) - - - - - - - - -

Total Operating Expenses (173,454) (187,752) (1,582,495) (3,228,290) (3,635,578) (4,737,249) (5,881,531) (7,069,691) (9,537,564) (9,728,315) (9,922,882) Net Operating Income (173,454) (187,752) 502,963 3,340,901 7,338,656 8,696,783 11,661,334 14,749,507 25,566,502 26,428,873 27,319,022








Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Dec-2040 Dec-2041Annual Cash Flow (173,454) (187,752) (41,104,324) (38,338,800) 7,193,827 (16,754,924) (13,830,560) (10,782,574) 25,260,927 26,123,298Resale Value (997,362) 450,763,867Total Cash Flow (1,170,816) (187,752) (41,104,324) (38,338,800) 7,193,827 (16,754,924) (13,830,560) (10,782,574) 25,260,927 476,887,164


IRR Summary




Financial AssumptionsProperty TypeMultifamily (Market) Building Area 1,222,301 Total Construction Costs (incl. land) $154,780,886All-In Cost per Sq. Ft. $126.63


Munster Dyer – Multifamily Affordable













NOI Margin (%) 62.48% 73.48% 70.21% 66.83% 65.37%











Total Vacancy & Credit Loss - - (66,768) (215,326) (359,714) (427,097) (533,300) (642,874) (962,890) (982,148) (1,001,791)


Operating Expenses Management Fee - - (32,496) (66,292) (74,656) (92,062) (110,135) (128,893) (170,417) (173,825) (177,302) Other Administrative - - (22,176) (45,238) (50,946) (62,824) (75,156) (87,957) (116,293) (118,619) (120,991) Operating Expense - - (78,939) (161,036) (181,353) (223,636) (267,537) (313,105) (413,974) (422,253) (430,698) Maintenance - - (50,488) (102,995) (115,989) (143,032) (171,110) (200,255) (264,768) (270,063) (275,464) Real Estate Taxes (Per Sq. Ft.) - - (128,442) (262,022) (295,079) (363,877) (435,309) (509,453) (673,576) (687,048) (700,789) Other Tax/Fee/Permit - - (3,068) (6,259) (7,049) (8,693) (10,399) (12,170) (16,091) (16,413) (16,741) Insurance - - (21,478) (43,816) (49,343) (60,848) (72,793) (85,191) (112,636) (114,889) (117,186) Recreational/Amenities - - (1,255) (2,561) (2,884) (3,556) (4,254) (4,979) (6,583) (6,714) (6,849) Other Payroll - - (27,615) (56,334) (63,442) (78,233) (93,591) (109,532) (144,818) (147,714) (150,668) Land Tax (33,539) (36,303) - - - - - - - - -











IRR Summary






East Chicago Area and Cost Projections






Total Land Area (Sq. Ft.) 1,573,483 1,027,600 Developable Land Area (Sq. Ft.) 1,432,138 921,911 - - - - 346,494 334,286 141,980 70,990 % Land Developable 91.0% 89.7%Land for NICTD Purposes 141,346 -

Total Buildable Area - Sq. Ft. - 1,318,356 - - - - 471,060 447,478 244,018 122,009


Building Costs $0 $137,934,431 $0 $0 $0 $0 $94,212,000 $76,071,000 $34,163,000 $13,421,000[2] Site Costs $64,446,200 $19,627,130 $0 $0 $0 $0 $27,400,920 $22,124,733 $9,936,076 $3,903,407[2] Road Costs $1,806,750 $7,804,654 $0 $0 $0 $0 $768,185 $620,267 $278,558 $109,432[2] Major Intersection Costs $250,000 $0 $0 $0 $0 $0 $106,294 $85,826 $38,544 $15,142[2] Minor Intersection Costs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Tenant Improvements n/a n/a $0 $0 n/a n/a $5,205,320 $4,942,837 n/a n/aLeasing Commissions n/a n/a $0 $0 n/a n/a $3,138,131 $2,632,167 n/a n/a

Total Costs $66,502,950 $165,366,215 $0 $0 $0 $0 $130,830,850 $106,476,831 $44,416,178 $17,448,981Total Costs (less Other Costs) $0 $137,934,431 $0 $0 $0 $0 $102,555,451 $83,646,004 $34,163,000 $13,421,000




East Chicago – Office








*Market comparable information was extrapolated from recently signed leases from within the Subject market areas and from market participants; based on our expese assumptions, we estimated that $17.50 (MG) as a reasonable office rent conclusion for East Chicago.












NOI Margin (%) 4.95% 57.34% 48.71% 39.66% 50.53%






2345 167th St Hammond, IN 143,748 24,092 1,066,900 41,448 $1.72 3.88% 2015/0231313 W Chicago Ave East Chicago, IN 17,424 11,977 1,036,000 33,425 $2.79 3.23% 2015/0245908 Columbia Ave Hammond, IN 12,000 11,920 205,000 8,054 $0.68 3.93% 2015/0234732 S Calumet Ave Hammond, IN 6,000 2,108 121,700 4,273 $2.03 3.51% 2015/023200 Russell St Hammond, IN 5,314 46,494 753,400 29,269 $0.63 3.88% 2015/0235270 S Hohman Ave Hammond, IN 4,510 4,425 101,800 3,955 $0.89 3.88% 2015/023

Minimum $4,510 $2,108 $101,800 $3,955 $0.63 3.23%Maximum $143,748 $46,494 $1,066,900 $41,448 $2.79 3.93%Average $31,499 $16,836 $547,467 $20,071 $1.46 3.72%*Tax comparable information was extrapolated from buildings within the Subject market area.

East Chicago Office Tax Comparable Summary




Property Market AssumptionsGeneral Inflation 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%Market Inflation 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%Expense Inflation 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%CPI Inflation 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Capital Expenditures ($/SF) 0.00 0.00 0.00 0.00 0.00 260.03 130.01 86.68 0.00 0.00 0.00General Vacancy (%) 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%Credit Loss Reserve (%) 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%




Phase II




Rental Revenue Potential Base Rent - - - - - 4,309,555 8,942,326 13,806,736 17,696,903 18,483,063 19,231,658 Absorption & Turnover Vacancy - - - - - (391,241) (988,690) (2,231,148) (1,601,077) (1,649,110) (1,153,880) Free Rent - - - - - (1,077,389) (1,158,193) (1,032,652) (560,377) (511,124) (367,229) Scheduled Base Rent - - - - - 2,840,925 6,795,443 10,542,937 15,535,449 16,322,830 17,710,550 Total Rental Revenue - - - - - 2,840,925 6,795,443 10,542,937 15,535,449 16,322,830 17,710,550

Other Tenant Revenue Total Expense Recoveries - - - - - 517,109 1,036,429 1,503,755 1,906,556 1,944,687 2,041,408 Total Other Tenant Revenue - - - - - 517,109 1,036,429 1,503,755 1,906,556 1,944,687 2,041,408

Total Tenant Revenue - - - - - 3,358,034 7,831,872 12,046,691 17,442,005 18,267,517 19,751,958

Potential Gross Revenue - - - - - 3,358,034 7,831,872 12,046,691 17,442,005 18,267,517 19,751,958

Vacancy & Credit Loss Vacancy Allowance - - - - - (163,374) (238,911) (33,691) (505,893) (275,500) (289,140) Credit Loss - - - - - (67,161) (156,637) (240,934) (348,840) (365,350) (395,039)Total Vacancy & Credit Loss - - - - - (230,535) (395,548) (274,625) (854,733) (640,851) (684,179)

Effective Gross Revenue - - - - - 3,127,499 7,436,324 11,772,066 16,587,272 17,626,667 19,067,779

Operating Expenses Utilities - - - - - 262,028 534,536 817,840 958,230 977,395 996,943 Manintenance and Repair - - - - - 239,684 488,956 748,102 876,521 894,051 911,932 Payroll Administrative - - - - - 121,873 248,621 380,391 445,689 454,602 463,694 Advertising - - - - - 16,250 33,150 50,719 59,425 60,614 61,826 Management Fee - - - - - 197,028 401,938 614,965 720,530 734,940 749,639 Other Administrative - - - - - 67,030 136,742 209,215 245,129 250,031 255,032 Services - - - - - 255,934 522,105 798,821 935,946 954,665 973,758 Insurance - - - - - 67,030 136,742 209,215 245,129 250,031 255,032 Property Taxes - - - - - 507,805 1,035,923 1,584,962 1,857,035 1,894,176 1,932,060 Other Tax/Fee/Permit - - - - - 22,343 45,581 69,738 81,710 83,344 85,011 Taxes on Land 34,649 37,506 38,256 39,021 43,944 - - - - - - Total Operating Expenses 34,649 37,506 38,256 39,021 43,944 1,757,006 3,584,293 5,483,968 6,425,343 6,553,849 6,684,926

Net Operating Income (34,649) (37,506) (38,256) (39,021) (43,944) 1,370,493 3,852,031 6,288,098 10,161,929 11,072,817 12,382,853

Leasing Costs Tenant Improvements - - - - - 1,015,611 2,051,533 1,978,031 835,666 1,595,653 1,297,191 Leasing Commissions - - - - - 614,112 1,274,281 1,278,212 637,089 1,222,162 1,002,692 Total Leasing Costs - - - - - 1,629,722 3,325,815 3,256,243 1,472,755 2,817,814 2,299,883

Capital Expenditures Building Construction Costs - - - - - 40,829,133 40,829,133 40,829,133 - - - Total Capital Expenditures - - - - - 40,829,133 40,829,133 40,829,133 - - -

Total Leasing & Capital Costs - - - - - 42,458,855 44,154,948 44,085,376 1,472,755 2,817,814 2,299,883

Cash Flow Before Debt Service (34,649) (37,506) (38,256) (39,021) (43,944) (41,088,362) (40,302,917) (37,797,277) 8,689,175 8,255,003 10,082,970


Phase II



Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Dec-2040 Dec-2041Annual Cash Flows (34,649) (37,506) (38,256) (39,021) (43,944) (41,088,362) (40,302,917) (37,797,277) 8,689,175 8,255,003 Resale Value 210,376,353 Total Cash Flow (34,649) (37,506) (38,256) (39,021) (43,944) (41,088,362) (40,302,917) (37,797,277) 8,689,175 218,631,356


Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Dec-2040 Dec-2041Annual Cash Flow (34,649) (37,506) (38,256) (39,021) (43,944) (41,088,362) (40,302,917) (37,797,277) 8,689,175 8,255,003Resale Value (692,988) 210,376,353 Total Cash Flow (727,637) (37,506) (38,256) (39,021) (43,944) (41,088,362) (40,302,917) (37,797,277) 8,689,175 218,631,356


IRR Summary




Present Value (PV) of future cash flows ($1,315,780)PV (rounded) ($1,300,000)Total Land Area (Sq. Ft.) 346,494 Price Per Sq. Ft. of Land ($3.75)


Property Type OfficeOffice Building Area 471,060 Total Construction Costs (incl. land) $88,183,066All-In Cost per Sq. Ft. $187.20


East Chicago – Retail









NOI Margin (%) 58.58% 65.64% 63.72% 62.32%






1020 Caroll St East Chicago, IN 6,900 997 46,100 1,487 $1.49 3.23% 2015/0245654 Indianapolis Blvd East Chicago, IN 7,380 3,600 97,500 3,145 $0.87 3.23% 2015/0245680 Indianapolis Blvd East Chicago, IN 27,675 5,440 805,000 25,972 $4.77 3.23% 2015/024918 Carroll St East Chicago, IN 6,900 2,280 101,100 3,351 $1.47 3.31% 2015/0245704-5716 Indianapolis Blvd Hammond, IN 30,013 8,318 177,300 6,887 $0.83 3.88% 2015/023

Minimum $6,900 $997 $46,100 $1,487 $0.83 3.23%Maximum $30,013 $8,318 $805,000 $25,972 $4.77 3.88%Average $15,774 $4,127 $245,400 $8,168 $1.89 3.38%*Tax comparable information was extrapolated from buildings within the Subject market area.

East Chicago Retail Tax Comparable Summary








Phase II




Rental Revenue Potential Base Rent - - - - - 4,093,803 8,494,640 13,115,520 16,817,745 17,560,777 18,255,095 Absorption & Turnover Vacancy - - - - - (360,175) (946,484) (2,142,515) (1,520,921) (1,566,549) (1,081,762) Free Rent - - - - - (1,023,451) (1,100,209) (1,006,836) (456,276) (441,107) (256,894) Scheduled Base Rent - - - - - 2,710,177 6,447,946 9,966,169 14,840,547 15,553,121 16,916,439 Total Rental Revenue - - - - - 2,710,177 6,447,946 9,966,169 14,840,547 15,553,121 16,916,439

Other Tenant Revenue Total Expense Recoveries - - - - - 214,692 428,581 621,183 789,125 804,908 845,604 Total Other Tenant Revenue - - - - - 214,692 428,581 621,183 789,125 804,908 845,604





Operating Expenses Maintenance and Repair - - - - - 98,406 200,749 307,146 359,870 367,068 374,409 Services - - - - - 183,305 373,944 572,134 670,346 683,753 697,428 Utilities - - - - - 54,027 110,215 168,629 197,576 201,527 205,558 Admin Fee - - - - - 9,648 19,681 30,112 35,281 35,987 36,707 Common Area Expenses - - - - - 13,507 27,554 42,157 49,394 50,382 51,389 Real Estate Taxes - - - - - 627,097 1,279,283 1,957,301 2,293,290 2,339,156 2,385,939 Insurance - - - - - 69,463 141,705 216,809 254,026 259,107 264,289 Admin Payroll - - - - - 38,591 78,725 120,449 141,126 143,948 146,827 Management Fee - - - - - 127,349 259,793 397,483 465,714 475,029 484,529 Marketing - - - - - 3,859 7,873 12,045 14,113 14,395 14,683 Other Maintenance - - - - - 46,309 94,470 144,539 169,351 172,738 176,192 Land Tax 33,429 36,184 36,908 37,646 42,396 - - - - - - Total Operating Expenses 33,429 36,184 36,908 37,646 42,396 1,271,561 2,593,993 3,968,804 4,650,087 4,743,088 4,837,950

Net Operating Income (33,429) (36,184) (36,908) (37,646) (42,396) 1,450,474 3,925,178 6,372,427 10,192,297 11,019,844 12,327,655

Leasing Costs Tenant Improvements - - - - - 964,765 1,948,826 1,926,169 764,428 1,496,267 1,153,912 Leasing Commissions - - - - - 486,139 1,008,739 1,037,635 486,885 957,583 744,825 Total Leasing Costs - - - - - 1,450,904 2,957,565 2,963,803 1,251,313 2,453,850 1,898,737


Total Leasing & Capital Costs - - - - - 34,418,180 35,924,841 35,931,079 1,251,313 2,453,850 1,898,737



Phase II







IRR Summary






East Chicago – Multifamily Market













NOI Margin (%) 62.48% 73.48% 70.21% 66.83% 71.57%






445 E Chicago Ave East Chicago, IN 82,328 41,960 1,414,100 31,483 $0.75 2.23% 2015/0244301 Baring Ave East Chicago, IN 10,759 16,500 320,500 7,135 $0.43 2.23% 2015/0244142 Magoun Ave East Chicago, IN 9,086 23,488 83,400 1,857 $0.08 2.23% 2015/0244144-4146 Homerlee Ave East Chicago, IN 7,366 4,866 148,400 3,304 $0.68 2.23% 2015/0244738 Northcote Ave East Chicago, IN 7,500 9,556 189,800 4,225 $0.44 2.23% 2015/0244945 Northcote Ave East Chicago, IN 6,029 8,290 169,000 3,763 $0.45 2.23% 2015/0244402 Todd Ave East Chicago, IN 5,584 10,704 128,300 2,856 $0.27 2.23% 2015/024

Minimum $5,584 $4,866 $83,400 $1,857 $0.08 2.23%Maximum $82,328 $41,960 $1,414,100 $31,483 $0.75 2.23%Average $18,379 $16,481 $350,500 $7,803 $0.44 2.23%*Tax comparable information was extrapolated from buildings within the Subject market area.

East Chicago Multifamily Tax Comparable Summary





Potential Base Rent - - - - - 589,057 1,855,530 3,247,178 6,709,901 6,911,198 7,118,534 Loss to Lease - - - - - (11,781) (37,111) (64,944) (134,198) (138,224) (142,371) Scheduled Base Rent - - - - - 577,276 1,818,420 3,182,234 6,575,703 6,772,974 6,976,163

Total Rental Revenue - - - - - 577,276 1,818,420 3,182,234 6,575,703 6,772,974 6,976,163


Potential Gross Revenue - - - - - 577,276 1,818,420 3,182,234 6,575,703 6,772,974 6,976,163




Operating Expenses Management Fee - - - - - (31,184) (63,616) (97,332) (152,054) (155,095) (158,197) Other Administrative - - - - - (21,280) (43,412) (66,420) (103,762) (105,837) (107,954) Operating Expense - - - - - (75,752) (154,535) (236,438) (369,367) (376,754) (384,290) Maintenance - - - - - (48,449) (98,837) (151,220) (236,238) (240,963) (245,782) Real Estate Taxes (Per Sq. Ft.) - - - - - (60,371) (123,156) (188,429) (294,366) (300,253) (306,258) Other Tax/Fee/Permit - - - - - (2,944) (6,007) (9,190) (14,357) (14,644) (14,937) Insurance - - - - - (20,611) (42,047) (64,331) (100,499) (102,509) (104,559) Recreational/Amenities - - - - - (1,205) (2,457) (3,760) (5,873) (5,991) (6,111) Other Payroll - - - - - (26,500) (54,060) (82,712) (129,213) (131,798) (134,433) Land Tax (21,297) (23,053) (23,514) (23,984) (27,010) - - - - - -

Total Operating Expenses (21,297) (23,053) (23,514) (23,984) (27,010) (288,297) (588,126) (899,833) (1,405,730) (1,433,845) (1,462,522) Net Operating Income (21,297) (23,053) (23,514) (23,984) (27,010) 219,706 1,012,083 1,900,533 4,380,888 4,526,372 4,676,502










IRR Summary






East Chicago – Multifamily Affordable













NOI Margin (%) 62.48% 73.48% 70.21% 66.83% 71.57%






3610 Alder St East Chicago, IN 24,829 205,002 n/a 11,494 $0.06 n/a 2010/n/a445 E Chicago Ave East Chicago, IN 82,328 62,572 1,414,100 31,483 $0.50 2.23% 2015/n/a3806 Erie Ct East Chicago, IN 576,299 255,778 n/a 91,315 $0.36 n/a 2015/n/a3405 Lincoln St East Chicago, IN 16,988 88,329 823,900 20,419 $0.23 2.48% 2014/n/a3537 Pennsylvania Ave East Chicago, IN 143,748 122,628 n/a 39,687 $0.32 n/a 2015/n/a

Minimum 10,454 35,425 $823,900 $11,494 $0.06 2.23%Maximum 1,015,819 340,000 $1,414,100 $91,315 $0.50 2.48%Average 412,416 162,567 $1,119,000 $38,880 $0.29 2.35%*Tax comparable information was extrapolated from buildings within the Subject market area.

East Chicago Multifamily Affordable Tax Comparable Summary





Potential Base Rent - - - - - 220,896 695,824 1,217,692 2,516,213 2,591,699 2,669,450 Loss to Lease - - - - - (4,418) (13,916) (24,354) (50,324) (51,834) (53,389) Scheduled Base Rent - - - - - 216,479 681,907 1,193,338 2,465,888 2,539,865 2,616,061

Total Rental Revenue - - - - - 216,479 681,907 1,193,338 2,465,888 2,539,865 2,616,061


Potential Gross Revenue - - - - - 216,479 681,907 1,193,338 2,465,888 2,539,865 2,616,061



Effective Gross Revenue - - - - - 190,501 600,078 1,050,137 2,169,982 2,235,081 2,302,134

Operating Expenses Management Fee - - - - - (11,694) (23,856) (36,500) (57,020) (58,161) (59,324) Other Administrative - - - - - (7,980) (16,279) (24,907) (38,911) (39,689) (40,483) Operating Expense - - - - - (28,407) (57,951) (88,664) (138,513) (141,283) (144,109) Maintenance - - - - - (18,169) (37,064) (56,708) (88,589) (90,361) (92,168) Real Estate Taxes (Per Sq. Ft.) - - - - - (22,639) (46,184) (70,661) (110,387) (112,595) (114,847) Other Tax/Fee/Permit - - - - - (1,104) (2,252) (3,446) (5,384) (5,492) (5,601) Insurance - - - - - (7,729) (15,767) (24,124) (37,687) (38,441) (39,210) Recreational/Amenities - - - - - (452) (921) (1,410) (2,202) (2,247) (2,291) Other Payroll - - - - - (9,937) (20,272) (31,017) (48,455) (49,424) (50,413) Land Tax (7,986) (8,645) (8,818) (8,994) (10,129) - - - - - -

Total Operating Expenses (7,986) (8,645) (8,818) (8,994) (10,129) (108,111) (220,547) (337,437) (527,149) (537,692) (548,446) Net Operating Income (7,986) (8,645) (8,818) (8,994) (10,129) 82,390 379,531 712,700 1,642,833 1,697,390 1,753,688










IRR Summary





Residual Value of Land Present Value (PV) of future cash flows $17,200PV (rounded) $0Total Land Area (Sq. Ft.) 70,990 Price Per Sq. Ft. of Land $0.00




Replacement Cost New of Property $11,626,725Overall Capitalization Rate (Ro) 7.00%Total Required Net Operating Income 813,871





Gary Metro Area and Cost Projections






Total Land Area (Sq. Ft.) 460,268 1,255,836 Developable Land Area (Sq. Ft.) 252,122 956,558 22,275 55,686 111,373 33,412 72,780 145,387 276,148 87,232 % Land Developable 54.8% 76.2%Land for NICTD Purposes - -



Building Costs $90,645,318 $219,585,661 $11,850,000 $24,948,000 $40,540,000 $10,291,000 $36,150,000 $65,941,000 $105,025,000 $25,601,000[2] Site Costs $2,937,593 $10,495,087 $397,248 $836,334 $1,359,025 $344,986 $456,322 $832,375 $1,325,733 $323,162[2] Road Costs $2,689,125 $17,133,550 $363,648 $765,595 $1,244,076 $315,806 $417,726 $761,971 $1,213,600 $295,828[2] Major Intersection Costs $500,000 $1,625,000 $67,615 $142,350 $231,316 $58,719 $77,669 $141,676 $225,650 $55,005[2] Minor Intersection Costs $0 $240,000 $0 $0 $0 $0 $0 $0 $0 $0

Tenant Improvements n/a n/a $695,479 $1,722,380 n/a n/a $2,726,835 $5,753,400 n/a n/aLeasing Commissions n/a n/a $342,474 $728,015 n/a n/a $1,678,684 $3,044,286 n/a n/a



KPMG's Building Costs and Policy Analytics' Other Costs


All Policy Analytics' Costs

Gary Metro – Office








*Market comparable information was extrapolated from recently signed leases from within the Subject market areas and from market participants; based on our expense assumptions, we estimated $16.00 (MG) as a reasonable office rent conclusion for Gary Metro.












NOI Margin (%) 4.95% 57.34% 48.71% 39.66% 54.82%






3270 Grant St Gary, IN 17,947 1,638 78,800 3,109 $1.90 3.95% 2015/0034645 Broadway Gary, IN 26,092 10,033 194,100 6,032 $0.60 3.11% 2015/004601 S Lake St Gary, IN 3,136 3,375 96,900 3,011 $0.89 3.11% 2015/0042964 W 11th Ave Gary, IN 3,006 2,640 50,900 1,582 $0.60 3.11% 2015/004252 Taney St Gary, IN 9,017 2,157 20,735 791 $0.37 3.82% 2015/004

Minimum 3,006 1,638 $20,735 $791 $0.37 3.11%Maximum 26,092 10,033 $194,100 $6,032 $1.90 3.95%Average 11,840 3,969 $88,287 $2,905 $0.87 3.42%*Tax comparable information was extrapolated from buildings within the Subject market area.

Gary Office Tax Comparable Summary








Phase II




Rental Revenue Potential Base Rent - - 308,861 948,929 1,563,469 1,563,469 3,330,422 5,191,757 8,893,818 9,040,837 9,317,897 Absorption & Turnover Vacancy - - (50,434) (53,397) - - (348,938) (929,457) - (573,528) (401,166) Free Rent - - (154,431) (166,013) (3,664) - (444,976) (432,691) - (206,093) (124,909) Scheduled Base Rent - - 103,997 729,519 1,559,805 1,563,469 2,536,508 3,829,609 8,893,818 8,261,216 8,791,821 Total Rental Revenue - - 103,997 729,519 1,559,805 1,563,469 2,536,508 3,829,609 8,893,818 8,261,216 8,791,821

Other Tenant Revenue Total Expense Recoveries - - 36,874 127,514 202,490 206,540 372,808 521,957 981,434 939,041 977,859 Total Other Tenant Revenue - - 36,874 127,514 202,490 206,540 372,808 521,957 981,434 939,041 977,859



Vacancy & Credit Loss Vacancy Allowance - - (6,302) (34,593) (88,115) (88,500) (98,362) - (493,763) (173,480) (149,788) Credit Loss - - (2,817) (17,141) (35,246) (35,400) (58,186) (87,031) (197,505) (184,005) (195,394)Total Vacancy & Credit Loss - - (9,119) (51,733) (123,361) (123,901) (156,548) (87,031) (691,268) (357,485) (345,181)


Operating Expenses Utilities - - 20,313 62,160 93,337 95,204 190,916 290,419 452,380 461,427 470,656 Manintenance and Repair - - 18,592 56,892 85,427 87,135 174,737 265,807 414,042 422,323 430,770 Payroll Administrative - - 9,468 28,973 43,504 44,375 88,986 135,365 210,855 215,072 219,373 Advertising - - 1,205 3,687 5,537 5,648 11,326 17,228 26,836 27,373 27,920 Management Fee - - 1,532 4,688 7,040 7,181 14,400 21,904 34,120 34,803 35,499 Other Administrative - - 5,164 15,803 23,730 24,204 48,538 73,835 115,012 117,312 119,658 Services - - 19,969 61,106 91,755 93,590 187,680 285,496 444,712 453,606 462,679 Insurance - - 5,164 15,803 23,730 24,204 48,538 73,835 115,012 117,312 119,658 Property Taxes - - 25,822 79,017 118,648 121,021 242,690 369,176 575,059 586,560 598,291 Other Tax/Fee/Permit - - 1,721 5,268 7,910 8,068 16,179 24,612 38,337 39,104 39,886 Taxes on Land 4,753 5,145 - - - - - - - - - Total Operating Expenses 4,753 5,145 108,953 333,399 500,617 510,630 1,023,989 1,557,678 2,426,365 2,474,892 2,524,390


Leasing Costs Tenant Improvements - - 172,148 347,740 135,928 5,068 397,493 791,159 307,499 317,566 507,210 Leasing Commissions - - 88,025 182,653 81,908 3,083 253,636 509,756 223,678 235,552 377,598 Total Leasing Costs - - 260,174 530,392 217,836 8,151 651,129 1,300,916 531,177 553,118 884,808


Total Leasing & Capital Costs - - 6,599,430 6,869,648 217,836 12,375,390 13,018,368 13,668,155 531,177 553,118 884,808



Phase II





Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Dec-2040 Dec-2041Annual Cash Flow (4,753) (5,145) (6,576,631) (6,397,747) 920,481 (11,239,911) (11,289,590) (10,961,298) 6,226,442 5,814,761Resale Value (166,346) 115,912,781 Total Cash Flow (171,099) (5,145) (6,576,631) (6,397,747) 920,481 (11,239,911) (11,289,590) (10,961,298) 6,226,442 121,727,542


IRR Summary







Gary Metro – Retail









NOI Margin (%) 58.58% 65.64% 63.72% 68.39%






901 E 5th Ave Gary, IN 18,121 2,812 314,555 10,140 $3.61 3.22% 2015/004749 Broadway Gary, IN 6,229 35,750 142,900 4,441 $0.12 3.11% 2015/004529 E 5th Ave Gary, IN 12,502 14,250 109,800 3,412 $0.24 3.11% 2015/004624 Broadway Gary, IN 6,229 12,000 61,700 1,917 $0.16 3.11% 2015/004


Gary Retail Tax Comparable Summary








Phase II




Rental Revenue Potential Base Rent - - 754,614 2,301,572 3,794,831 3,794,831 7,476,266 11,392,127 19,327,649 19,548,744 20,207,979 Absorption & Turnover Vacancy - - (123,223) (322,290) (81,736) - (1,688,330) (2,736,756) (88,023) (829,002) (1,047,711) Free Rent - - (377,307) (330,309) (76,548) - (818,597) (696,646) (69,017) (175,553) (344,450) Scheduled Base Rent - - 254,084 1,648,974 3,636,548 3,794,831 4,969,339 7,958,725 19,170,609 18,544,189 18,815,819 Total Rental Revenue - - 254,084 1,648,974 3,636,548 3,794,831 4,969,339 7,958,725 19,170,609 18,544,189 18,815,819

Other Tenant Revenue Total Expense Recoveries - - 39,971 126,362 214,937 223,889 330,890 481,179 947,794 932,961 942,835 Total Other Tenant Revenue - - 39,971 126,362 214,937 223,889 330,890 481,179 947,794 932,961 942,835



Vacancy & Credit Loss Vacancy Allowance - - (13,898) (45,663) (160,033) (200,936) (14,438) - (922,298) (289,768) (150,074) Credit Loss - - (5,881) (35,507) (77,030) (80,374) (106,005) (168,798) (402,368) (389,543) (395,173)Total Vacancy & Credit Loss - - (19,780) (81,170) (237,062) (281,310) (120,442) (168,798) (1,324,667) (679,311) (545,248)


Operating Expenses Maintenance and Repair - - 19,797 60,580 90,964 92,783 173,116 256,625 394,465 402,354 410,401 Services - - 37,443 114,575 172,040 175,481 327,415 485,356 746,053 760,974 776,193 Utilities - - 10,759 32,924 49,437 50,425 94,085 139,470 214,383 218,671 223,044 Admin Fee - - 2,152 6,585 9,887 10,085 18,817 27,894 42,877 43,734 44,609 Common Area Expenses - - 3,013 9,219 13,842 14,119 26,344 39,052 60,027 61,228 62,452 Real Estate Taxes - - 86,075 263,390 395,494 403,403 752,678 1,115,760 1,715,064 1,749,365 1,784,353 Insurance - - 14,202 43,459 65,256 66,562 124,192 184,100 282,986 288,645 294,418 Admin Payroll - - 7,747 23,705 35,594 36,306 67,741 100,418 154,356 157,443 160,592 Management Fee - - 25,823 79,017 118,648 121,021 225,803 334,728 514,519 524,810 535,306 Marketing - - 861 2,634 3,955 4,034 7,527 11,158 17,151 17,494 17,844 Other Maintenance - - 9,468 28,973 43,504 44,374 82,795 122,734 188,657 192,430 196,279 Land Tax 10,054 10,882 - - - - - - - - - Total Operating Expenses 10,054 10,882 217,340 665,060 998,621 1,018,594 1,900,512 2,817,294 4,330,537 4,417,147 4,505,490


Leasing Costs Tenant Improvements - - 430,376 852,687 330,273 166,772 791,687 1,459,884 817,691 438,160 923,068 Leasing Commissions - - 179,221 360,255 160,986 81,683 405,739 754,904 479,658 260,977 554,887 Total Leasing Costs - - 609,597 1,212,942 491,260 248,454 1,197,426 2,214,788 1,297,349 699,137 1,477,955


Total Leasing & Capital Costs - - 13,955,736 14,559,081 491,260 22,807,461 23,756,433 24,773,795 1,297,349 699,137 1,477,955



Phase II







IRR Summary






Gary Metro – Multifamily Market













NOI Margin (%) 62.48% 73.48% 70.21% 66.83% 71.28%






1720 Mississippi St Gary, IN 168,930 84,720 1,783,400 37,589 $0.44 2.11% 2015/0042000 W 5th Ave Gary, IN 39,182 22,880 795,600 16,769 $0.73 2.11% 2015/004569 Harrison St Gary, IN 5,271 3,776 95,200 2,007 $0.53 2.11% 2015/004


Gary Multifamily Tax Comparable Summary












Operating Expenses Management Fee - - (64,788) (132,167) (148,841) (243,122) (341,114) (442,929) (630,261) (642,867) (655,724) Other Administrative - - (44,211) (90,191) (101,570) (165,907) (232,778) (302,257) (430,093) (438,694) (447,468) Operating Expense - - (157,381) (321,057) (361,562) (590,588) (828,630) (1,075,957) (1,531,021) (1,561,642) (1,592,875) Maintenance - - (100,657) (205,340) (231,246) (377,726) (529,972) (688,156) (979,204) (998,789) (1,018,764) Real Estate Taxes (Per Sq. Ft.) - - (131,695) (268,658) (302,553) (494,200) (693,392) (900,354) (1,281,148) (1,306,771) (1,332,907) Other Tax/Fee/Permit - - (6,117) (12,479) (14,054) (22,956) (32,208) (41,822) (59,510) (60,700) (61,914) Insurance - - (42,821) (87,355) (98,376) (160,690) (225,458) (292,752) (416,568) (424,899) (433,397) Recreational/Amenities - - (2,503) (5,105) (5,749) (9,391) (13,176) (17,109) (24,345) (24,832) (25,328) Other Payroll - - (55,055) (112,313) (126,483) (206,601) (289,874) (376,395) (535,587) (546,299) (557,225) Land Tax (29,064) (31,460) - - - - - - - - -

Total Operating Expenses (29,064) (31,460) (605,228) (1,234,665) (1,390,433) (2,271,180) (3,186,601) (4,137,730) (5,887,737) (6,005,492) (6,125,602) Net Operating Income (29,064) (31,460) 393,643 1,911,778 3,815,831 4,839,212 7,731,321 10,806,999 18,877,537 19,255,088 19,640,190










IRR Summary






Gary Metro – Multifamily Affordable













NOI Margin (%) 62.48% 73.48% 70.21% 66.83% 71.28%






131-137 E 5th Ave Gary, IN 10,454 92,620 n/a 35,170 $0.38 n/a 20154400 W 23rd Pl Gary, IN 996,653 243,396 n/a 162,614 $0.67 n/a 20151990 W 24th Ave Gary, IN 1,015,819 210,624 n/a 142,249 $0.68 n/a 20152173 Carolina St Gary, IN 189,486 130,000 n/a 35,475 $0.27 n/a 2015435 Clark Rd Gary, IN 302,742 222,460 1,500,000 31,616 $0.14 2.11% 20151700-1718 Clark Rd Gary, IN 261,360 83,120 1,721,000 36,274 $0.44 2.11% 20154864 Grant St Gary, IN 89,298 35,425 n/a 22,828 $0.64 n/a 20152002 Hanley St Gary, IN 439,956 340,000 1,785,000 51,387 $0.15 2.88% 20151400 Jefferson St Gary, IN 405,979 105,458 2,300,000 48,478 $0.46 2.11% 2015

Minimum 10,454 35,425 $1,500,000 $22,828 $0.14 2.11%Maximum 1,015,819 340,000 $2,300,000 $162,614 $0.68 2.88%Average 412,416 162,567 $1,826,500 $62,899 $0.43 2.30%*Tax comparable information was extrapolated from buildings within the Subject market area.

Gary Multifamily Affordable Tax Comparable Summary





Potential Base Rent - - 248,759 783,592 1,271,875 1,750,749 2,710,375 3,725,762 6,195,892 6,319,810 6,446,206 Loss to Lease - - (4,975) (15,672) (25,438) (35,015) (54,208) (74,515) (123,918) (126,396) (128,924) Scheduled Base Rent - - 243,784 767,921 1,246,438 1,715,734 2,656,168 3,651,247 6,071,974 6,193,414 6,317,282

Total Rental Revenue - - 243,784 767,921 1,246,438 1,715,734 2,656,168 3,651,247 6,071,974 6,193,414 6,317,282







Total Operating Expenses (6,786) (7,346) (136,176) (277,800) (312,848) (517,563) (730,342) (951,426) (1,356,667) (1,383,801) (1,411,477) Net Operating Income (6,786) (7,346) 78,354 397,970 784,018 992,283 1,607,085 2,261,672 3,986,670 4,066,403 4,147,732










IRR Summary


Residual Value of Land Present Value (PV) of future cash flows ($425,716)PV (rounded) ($400,000)Total Land Area (Sq. Ft.) 120,644 Price Per Sq. Ft. of Land ($3.32)




Gary Miller Area and Cost Projections






Total Land Area (Sq. Ft.) 267,469 1,378,438 Developable Land Area (Sq. Ft.) 203,027 1,223,915 20,303 50,757 101,514 30,454 255,787 303,753 531,748 132,626 % Land Developable 75.9% 88.8%Land for NICTD Purposes 41,884 -



Building Costs $41,299,762 $252,310,109 $5,401,000 $11,370,000 $18,475,000 $4,690,000 $92,266,000 $97,699,000 $122,905,000 $23,303,000[2] Site Costs $4,143,235 $9,089,097 $560,337 $1,179,602 $1,916,724 $486,573 $1,137,152 $1,204,112 $1,514,769 $287,203[2] Road Costs $9,103,775 $7,694,805 $1,231,207 $2,591,895 $4,211,545 $1,069,128 $2,498,621 $2,645,750 $3,328,344 $631,060[2] Major Intersection Costs $250,000 $0 $33,810 $71,176 $115,654 $29,359 $68,615 $72,655 $91,400 $17,330[2] Minor Intersection Costs $320,000 $80,000 $43,277 $91,106 $148,037 $37,580 $87,827 $92,999 $116,992 $22,182

Tenant Improvements n/a n/a $316,962 $772,926 n/a n/a $6,050,544 $7,472,557 n/a n/aLeasing Commissions n/a n/a $156,082 $326,786 n/a n/a $3,699,174 $3,928,556 n/a n/a





Gary Miller – Office








*Market comparable information was extrapolated from recently signed leases from within the Subject market areas and from market participants; based on our expense assumptions, we estimated $16.50 (MG) as a reasonable office rent conclusion for Gary Metro.












NOI Margin (%) 4.95% 57.34% 48.71% 39.66% 55.73%






3270 Grant St Gary, IN 17,947 1,638 78,800 3,109 $1.90 3.95% 2015/0034645 Broadway Gary, IN 26,092 10,033 194,100 6,032 $0.60 3.11% 2015/004601 S Lake St Gary, IN 3,136 3,375 96,900 3,011 $0.89 3.11% 2015/0042964 W 11th Ave Gary, IN 3,006 2,640 50,900 1,582 $0.60 3.11% 2015/004252 Taney St Gary, IN 9,017 2,157 20,735 791 $0.37 3.82% 2015/004

Minimum 3,006 1,638 $20,735 $791 $0.37 3.11%Maximum 26,092 10,033 $194,100 $6,032 $1.90 3.95%Average 11,840 3,969 $88,287 $2,905 $0.87 3.42%*Tax comparable information was extrapolated from buildings within the Subject market area.

Gary Office Tax Comparable Summary




Property Market AssumptionsGeneral Inflation 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%Market Inflation 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%Expense Inflation 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%CPI Inflation 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Capital Expenditures ($/SF) 0.00 0.00 N/A 191.82 0.00 1,126.49 175.74 95.30 0.00 0.00 0.00General Vacancy (%) 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%Credit Loss Reserve (%) 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%




Phase II




Rental Revenue Potential Base Rent - - 145,161 445,938 737,404 737,404 5,387,476 10,227,987 18,338,447 18,721,841 19,468,233 Absorption & Turnover Vacancy - - (26,618) (28,181) - - (936,721) (2,169,867) - (1,509,568) (1,071,943) Free Rent - - (72,581) (78,024) (5,551) - (1,171,210) (1,056,125) - (507,855) (352,680) Scheduled Base Rent - - 45,963 339,733 731,852 737,404 3,279,545 7,001,995 18,338,447 16,704,418 18,043,611 Total Rental Revenue - - 45,963 339,733 731,852 737,404 3,279,545 7,001,995 18,338,447 16,704,418 18,043,611


Total Tenant Revenue - - 62,941 399,464 827,381 834,843 3,805,131 7,946,956 20,385,027 18,628,067 20,056,936


Vacancy & Credit Loss Vacancy Allowance - - (2,818) (15,478) (41,369) (41,742) (138,620) - (1,019,251) (294,987) (305,401) Credit Loss - - (1,259) (7,989) (16,548) (16,697) (76,103) (158,939) (407,701) (372,561) (401,139)Total Vacancy & Credit Loss - - (4,077) (23,468) (57,917) (58,439) (214,723) (158,939) (1,426,952) (667,548) (706,540)


Operating Expenses Utilities - - 9,572 29,289 43,979 44,859 293,301 551,664 942,201 961,045 980,266 Manintenance and Repair - - 8,787 26,888 40,374 41,182 269,260 506,446 864,971 882,271 899,916 Payroll Administrative - - 4,394 13,444 20,187 20,591 134,630 253,223 432,486 441,135 449,958 Advertising - - 628 1,921 2,884 2,942 19,233 36,175 61,784 63,019 64,280 Management Fee - - 7,218 22,087 33,165 33,828 221,178 416,009 710,512 724,722 739,217 Other Administrative - - 2,432 7,442 11,175 11,399 74,527 140,177 239,412 244,200 249,084 Services - - 9,336 28,569 42,898 43,756 286,088 538,098 919,032 937,413 956,161 Insurance - - 2,432 7,442 11,175 11,399 74,527 140,177 239,412 244,200 249,084 Property Taxes - - 11,768 36,011 54,073 55,154 360,616 678,275 1,158,444 1,181,613 1,205,245 Other Tax/Fee/Permit - - 785 2,401 3,605 3,677 24,041 45,218 77,230 78,774 80,350 Taxes on Land 13,805 14,942 - - - - - - - - - Total Operating Expenses 13,805 14,942 57,351 175,495 263,515 268,785 1,757,400 3,305,461 5,645,483 5,758,393 5,873,560

Net Operating Income (13,805) (14,942) 1,513 200,501 505,950 507,619 1,833,008 4,482,556 13,312,592 12,202,126 13,476,836

Leasing Costs Tenant Improvements - - 78,456 158,481 69,107 9,468 1,014,527 1,956,635 459,099 759,987 1,279,234 Leasing Commissions - - 41,371 85,845 42,986 5,939 667,590 1,299,680 344,389 581,331 982,409 Total Leasing Costs - - 119,827 244,326 112,093 15,407 1,682,117 3,256,316 803,488 1,341,317 2,261,643


Total Leasing & Capital Costs - - 3,754,643 3,879,142 112,093 32,034,812 33,701,522 35,275,721 803,488 1,341,317 2,261,643



Phase II







IRR Summary



Financial AssumptionsProperty Type OfficeOffice Building Area 489,756 Total Construction Costs (incl. land) $95,755,318.95All-In Cost per Sq. Ft. $195.52




Gary Miller – Retail









NOI Margin (%) 58.58% 65.64% 63.72% 68.77%






901 E 5th Ave Gary, IN 18,121 2,812 314,555 10,140 $3.61 3.22% 2015/004749 Broadway Gary, IN 6,229 35,750 142,900 4,441 $0.12 3.11% 2015/004529 E 5th Ave Gary, IN 12,502 14,250 109,800 3,412 $0.24 3.11% 2015/004624 Broadway Gary, IN 6,229 12,000 61,700 1,917 $0.16 3.11% 2015/004


Gary Retail Tax Comparable Summary








Phase II




Rental Revenue Potential Base Rent - - 354,655 1,081,699 1,785,935 1,785,935 7,410,830 13,308,402 23,530,626 23,841,541 24,850,209 Absorption & Turnover Vacancy - - (64,200) (162,769) (48,970) - (2,762,032) (3,885,331) (161,764) (1,206,929) (1,621,942) Free Rent - - (177,328) (146,733) (38,103) - (1,211,211) (1,076,353) (77,823) (271,559) (502,122) Scheduled Base Rent - - 113,128 772,196 1,698,861 1,785,935 3,437,587 8,346,718 23,291,039 22,363,053 22,726,146 Total Rental Revenue - - 113,128 772,196 1,698,861 1,785,935 3,437,587 8,346,718 23,291,039 22,363,053 22,726,146




Vacancy & Credit Loss Vacancy Allowance - - (6,220) (18,883) (70,515) (94,582) - - (1,069,053) (364,929) (22,647) Credit Loss - - (2,632) (16,623) (35,995) (37,833) (73,867) (177,055) (489,091) (470,040) (477,413)Total Vacancy & Credit Loss - - (8,852) (35,506) (106,510) (132,415) (73,867) (177,055) (1,558,144) (834,970) (500,060)


Operating Expenses Maintenance and Repair - - 9,415 28,809 43,258 44,123 166,334 293,416 488,782 498,557 508,529 Services - - 17,653 54,016 81,108 82,730 311,876 550,154 916,466 934,795 953,491 Utilities - - 5,100 15,605 23,431 23,900 90,098 158,933 264,757 270,052 275,453 Admin Fee - - 981 3,001 4,506 4,596 17,326 30,564 50,915 51,933 52,972 Common Area Expenses - - 1,373 4,201 6,308 6,435 24,257 42,790 71,281 72,706 74,160 Real Estate Taxes - - 39,228 120,037 180,240 183,845 693,059 1,222,565 2,036,591 2,077,322 2,118,869 Insurance - - 6,669 20,406 30,641 31,254 117,820 207,836 346,220 353,145 360,208 Admin Payroll - - 3,531 10,803 16,222 16,546 62,375 110,031 183,293 186,959 190,698 Management Fee - - 12,161 37,211 55,874 56,992 214,848 378,995 631,343 643,970 656,849 Marketing - - 392 1,200 1,802 1,838 6,931 12,226 20,366 20,773 21,189 Other Maintenance - - 4,511 13,804 20,728 21,142 79,702 140,595 234,208 238,892 243,670 Land Tax 17,726 19,187 - - - - - - - - - Total Operating Expenses 17,726 19,187 101,012 309,094 464,118 473,400 1,784,627 3,148,106 5,244,221 5,349,105 5,456,087


Leasing Costs Tenant Improvements - - 196,140 376,326 159,419 80,498 1,187,531 2,072,883 766,866 606,617 1,331,933 Leasing Commissions - - 84,231 163,886 80,134 40,659 627,628 1,104,725 464,016 372,820 825,582 Total Leasing Costs - - 280,371 540,212 239,553 121,158 1,815,159 3,177,608 1,230,882 979,437 2,157,515


Total Leasing & Capital Costs - - 7,932,261 8,192,102 239,553 34,025,997 35,719,998 37,082,447 1,230,882 979,437 2,157,515



Phase II







IRR Summary






Gary Miller – Multifamily Market













NOI Margin (%) 62.48% 73.48% 70.21% 66.83% 71.28%






1720 Mississippi St Gary, IN 168,930 84,720 1,783,400 37,589 $0.44 2.11% 2015/0042000 W 5th Ave Gary, IN 39,182 22,880 795,600 16,769 $0.73 2.11% 2015/004569 Harrison St Gary, IN 5,271 3,776 95,200 2,007 $0.53 2.11% 2015/004


Gary Multifamily Tax Comparable Summary









Vacancy & Credit LossVacancy Allowance - - (51,730) (162,949) (269,624) (501,703) (985,845) (1,502,699) (2,702,914) (2,756,972) (2,812,112) Credit Loss - - (10,346) (32,590) (53,925) (100,341) (197,169) (300,540) (540,583) (551,394) (562,422)



Operating Expenses Management Fee - - (29,526) (60,233) (67,832) (176,037) (288,543) (405,479) (605,330) (617,437) (629,786) Other Administrative - - (20,149) (41,103) (46,289) (120,128) (196,903) (276,700) (413,080) (421,341) (429,768) Operating Expense - - (71,724) (146,317) (164,777) (427,627) (700,924) (984,983) (1,470,459) (1,499,868) (1,529,866) Maintenance - - (45,873) (93,581) (105,388) (273,500) (448,294) (629,971) (940,470) (959,280) (978,465) Real Estate Taxes (Per Sq. Ft.) - - (60,018) (122,437) (137,884) (357,835) (586,529) (824,227) (1,230,470) (1,255,080) (1,280,181) Other Tax/Fee/Permit - - (2,788) (5,687) (6,405) (16,622) (27,244) (38,286) (57,156) (58,299) (59,465) Insurance - - (19,515) (39,811) (44,833) (116,351) (190,711) (267,999) (400,090) (408,091) (416,253) Recreational/Amenities - - (1,140) (2,327) (2,620) (6,800) (11,145) (15,662) (23,382) (23,849) (24,326) Other Payroll - - (25,091) (51,185) (57,643) (149,594) (245,200) (344,570) (514,401) (524,689) (535,183) Land Tax (47,495) (51,410) - - - - - - - - -











IRR Summary






Gary Miller – Multifamily Affordable













NOI Margin (%) 62.48% 73.48% 70.21% 66.83% 71.28%






131-137 E 5th Ave Gary, IN 10,454 92,620 n/a 35,170 $0.38 n/a 20154400 W 23rd Pl Gary, IN 996,653 243,396 n/a 162,614 $0.67 n/a 20151990 W 24th Ave Gary, IN 1,015,819 210,624 n/a 142,249 $0.68 n/a 20152173 Carolina St Gary, IN 189,486 130,000 n/a 35,475 $0.27 n/a 2015435 Clark Rd Gary, IN 302,742 222,460 1,500,000 31,616 $0.14 2.11% 20151700-1718 Clark Rd Gary, IN 261,360 83,120 1,721,000 36,274 $0.44 2.11% 20154864 Grant St Gary, IN 89,298 35,425 n/a 22,828 $0.64 n/a 20152002 Hanley St Gary, IN 439,956 340,000 1,785,000 51,387 $0.15 2.88% 20151400 Jefferson St Gary, IN 405,979 105,458 2,300,000 48,478 $0.46 2.11% 2015

Minimum 10,454 35,425 $1,500,000 $22,828 $0.14 2.11%Maximum 1,015,819 340,000 $2,300,000 $162,614 $0.68 2.88%Average 412,416 162,567 $1,826,500 $62,899 $0.43 2.30%*Tax comparable information was extrapolated from buildings within the Subject market area.

Gary Multifamily Affordable Tax Comparable Summary





Potential Base Rent - - 113,369 357,112 579,641 986,637 1,829,799 2,728,574 4,832,426 4,929,075 5,027,656 Loss to Lease - - (2,267) (7,142) (11,593) (19,733) (36,596) (54,571) (96,649) (98,581) (100,553) Scheduled Base Rent - - 111,102 349,970 568,048 966,904 1,793,203 2,674,002 4,735,777 4,830,493 4,927,103

Total Rental Revenue - - 111,102 349,970 568,048 966,904 1,793,203 2,674,002 4,735,777 4,830,493 4,927,103






Operating Expenses Management Fee - - (6,643) (13,552) (15,262) (34,905) (55,328) (76,554) (113,268) (115,533) (117,844) Other Administrative - - (4,533) (9,248) (10,415) (23,820) (37,756) (52,241) (77,294) (78,840) (80,417) Operating Expense - - (16,138) (32,921) (37,075) (84,792) (134,402) (185,964) (275,149) (280,652) (286,265) Maintenance - - (10,321) (21,056) (23,712) (54,231) (85,961) (118,938) (175,979) (179,498) (183,088) Real Estate Taxes (Per Sq. Ft.) - - (13,504) (27,548) (31,024) (70,953) (112,467) (155,613) (230,243) (234,847) (239,544) Other Tax/Fee/Permit - - (627) (1,280) (1,441) (3,296) (5,224) (7,228) (10,695) (10,909) (11,127) Insurance - - (4,391) (8,957) (10,088) (23,071) (36,569) (50,598) (74,864) (76,361) (77,888) Recreational/Amenities - - (257) (523) (590) (1,348) (2,137) (2,957) (4,375) (4,463) (4,552) Other Payroll - - (5,645) (11,517) (12,970) (29,662) (47,017) (65,054) (96,253) (98,179) (100,142) Land Tax (9,173) (9,929) - - - - - - - - -

Total Operating Expenses (9,173) (9,929) (62,061) (126,604) (142,576) (326,077) (516,862) (715,147) (1,058,119) (1,079,282) (1,100,867) Net Operating Income (9,173) (9,929) 35,709 181,370 357,306 524,798 1,061,157 1,637,975 3,109,365 3,171,552 3,234,983










IRR Summary


Residual Value of Land Present Value (PV) of future cash flows ($509,162)PV (rounded) ($500,000)Total Land Area (Sq. Ft.) 163,080 Price Per Sq. Ft. of Land ($3.07)




Portage / Ogden - Dunes Area and Cost Projections






Total Land Area (Sq. Ft.) 5,778,316 12,155,145 Developable Land Area (Sq. Ft.) 774,448 1,433,338 - - 658,281 116,167 124,244 103,537 990,556 215,001 % Land Developable 13.4% 11.8%Land for NICTD Purposes 146,447 -

Total Buildable Area - Sq. Ft. 774,448 1,667,660 - - 658,281 116,167 194,541 162,117 1,060,853 250,149


Building Costs $90,939,615 $183,966,075 $0 $0 $85,577,000 $12,778,000 $38,908,000 $27,560,000 $148,519,000 $27,516,000[2] Site Costs $2,744,714 $4,289,558 $0 $0 $2,388,129 $356,585 $440,371 $311,931 $1,680,978 $311,433[2] Road Costs $9,653,590 $745,560 $0 $0 $8,399,423 $1,254,167 $1,548,855 $1,097,112 $5,912,263 $1,095,360[2] Major Intersection Costs $250,000 $0 $0 $0 $217,521 $32,479 $40,111 $28,412 $153,110 $28,367[2] Minor Intersection Costs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Tenant Improvements n/a n/a $0 $0 n/a n/a $2,149,135 $1,789,853 n/a n/aLeasing Commissions n/a n/a $0 $0 n/a n/a $1,373,586 $939,099 n/a n/a

Total Costs $103,587,919 $189,001,194 $0 $0 $96,582,073 $14,421,231 $44,460,058 $31,726,407 $156,265,351 $28,951,161Total Costs (less Other Costs) $90,939,615 $183,966,075 $0 $0 $85,577,000 $12,778,000 $42,430,721 $30,288,952 $148,519,000 $27,516,000




Portage / Ogden - Dunes – Office








*Market comparable information was extrapolated from recently signed leases from within the Subject market areas and from market participants; based on our expense assumptions, we estimated $17.50 (MG) as a reasonable office rent conclusion for Portage / Ogden - Dunes.












NOI Margin (%) 4.95% 57.34% 48.71% 39.66% 49.96%


*NOI Margin for Suburban Chicago will typically lie well below what we are projecting for the Subject, in part due to the higher rent to income ratio.





1605 Adler Cir Portage, IN 149,411 23,364 2,232,400 61,230 $2.62 2.74% 2015/0161575 Adler Cir Portage, IN 135,907 23,364 2,186,200 59,963 $2.57 2.74% 2015/0165997 Carlson Ave Portage, IN 87,120 6,328 561,000 15,402 $2.43 2.75% 2015/016


Portage / Ogden Office Tax Comparable Summary








Phase II




Rental Revenue Potential Base Rent - - - - - 1,779,784 3,693,052 5,701,983 7,306,252 7,626,486 7,936,156 Absorption & Turnover Vacancy - - - - - (170,487) (440,308) (924,647) (661,222) (681,058) (468,764) Free Rent - - - - - (444,946) (478,317) (438,877) (231,428) (218,803) (133,687) Scheduled Base Rent - - - - - 1,164,351 2,774,427 4,338,459 6,413,603 6,726,624 7,333,705 Total Rental Revenue - - - - - 1,164,351 2,774,427 4,338,459 6,413,603 6,726,624 7,333,705






Operating Expenses Utilities - - - - - 108,214 220,756 337,756 395,735 403,650 411,723 Manintenance and Repair - - - - - 98,986 201,932 308,955 361,990 369,230 376,615 Payroll Administrative - - - - - 50,332 102,677 157,096 184,063 187,744 191,499 Advertising - - - - - 6,711 13,690 20,946 24,542 25,033 25,533 Management Fee - - - - - 81,370 165,995 253,972 297,568 303,520 309,590 Other Administrative - - - - - 27,683 56,472 86,403 101,235 103,259 105,324 Services - - - - - 105,697 215,622 329,901 386,532 394,263 402,148 Insurance - - - - - 27,683 56,472 86,403 101,235 103,259 105,324 Property Taxes - - - - - 218,105 444,934 680,749 797,606 813,558 829,829 Other Tax/Fee/Permit - - - - - 9,228 18,824 28,801 33,745 34,420 35,108

Land Tax 6,212 6,724 6,859 6,996 7,879 - - - - - - Total Operating Expenses 6,212 6,724 6,859 6,996 7,879 734,007 1,497,374 2,290,983 2,684,251 2,737,936 2,792,695

Net Operating Income (6,212) (6,724) (6,859) (6,996) (7,879) 548,166 1,536,574 2,544,358 4,156,605 4,520,092 5,112,991

Leasing Costs Tenant Improvements - - - - - 419,433 847,254 831,582 345,118 670,827 518,658 Leasing Commissions - - - - - 253,619 526,260 537,516 263,108 513,854 400,743 Total Leasing Costs - - - - - 673,052 1,373,514 1,369,098 608,226 1,184,681 919,401


Total Leasing & Capital Costs - - - - - 14,318,831 15,019,293 15,014,877 608,226 1,184,681 919,401



Phase II







IRR Summary







Portage / Ogden - Dunes – Retail









NOI Margin (%) 58.58% 65.64% 63.72% 68.73%






6425 Daniel Burham Portage, IN 687,812 78,620 6,384,260 177,410 $2.26 2.78% 2016/0166121 US Highway 20 Portage, IN 37,897 6,449 367,100 10,085 $1.56 2.75% 2015/0166171 US Highway 20 Portage, IN 53,709 5,540 350,600 9,633 $1.74 2.75% 2015/016


Portagen / Ogden Retail Tax Comparable Summary








Phase II




Rental Revenue Potential Base Rent - - - - - 1,496,632 3,068,096 4,702,418 5,819,595 6,115,346 6,419,969 Absorption & Turnover Vacancy - - - - - (131,823) (138,414) (143,951) (527,676) (543,507) (559,812) Free Rent - - - - - (374,158) (392,866) (408,581) (158,303) (163,052) (167,944) Scheduled Base Rent - - - - - 990,651 2,536,815 4,149,886 5,133,615 5,408,787 5,692,214 Total Rental Revenue - - - - - 990,651 2,536,815 4,149,886 5,133,615 5,408,787 5,692,214






Operating Expenses Maintenance and Repair - - - - - 37,749 77,008 117,822 138,047 140,808 143,624 Services - - - - - 70,604 144,033 220,370 258,199 263,363 268,630 Utilities - - - - - 20,273 41,356 63,275 74,136 75,619 77,131 Admin Fee - - - - - 4,194 8,556 13,091 15,339 15,645 15,958 Common Area Expenses - - - - - 5,592 11,409 17,455 20,451 20,860 21,278 Real Estate Taxes - - - - - 157,287 320,865 490,923 575,195 586,699 598,433 Insurance - - - - - 26,564 54,191 82,911 97,144 99,087 101,069 Admin Payroll - - - - - 14,680 29,947 45,820 53,685 54,759 55,854 Management Fee - - - - - 48,934 99,825 152,732 178,950 182,529 186,179 Marketing - - - - - 1,398 2,852 4,364 5,113 5,215 5,319 Other Maintenance - - - - - 18,175 37,078 56,729 66,467 67,796 69,152 Land Tax 10,354 11,207 11,431 11,660 13,131 - - - - - - Total Operating Expenses 10,354 11,207 11,431 11,660 13,131 405,450 827,118 1,265,491 1,482,725 1,512,379 1,542,627

Net Operating Income (10,354) (11,207) (11,431) (11,660) (13,131) 593,064 1,716,273 2,885,178 3,681,847 3,919,469 4,164,459

Leasing Costs Tenant Improvements - - - - - 349,526 706,043 720,163 276,946 559,430 570,619 Leasing Commissions - - - - - 177,725 364,336 380,687 168,922 342,913 353,200 Total Leasing Costs - - - - - 527,251 1,070,379 1,100,851 445,868 902,343 923,819


Total Leasing & Capital Costs - - - - - 10,193,069 10,736,197 10,766,669 445,868 902,343 923,819



Phase II







IRR Summary






Portage / Ogden - Dunes –Multifamily Market













NOI Margin (%) 62.48% 73.48% 70.21% 66.83% 68.80%






2400 Dixie Dr Portage, IN 43,996 3,498 206,500 4,450 $1.27 2.15% 2015/0162378 Dixie Dr Portage, IN 9,148 3,498 173,200 3,464 $0.99 2.00% 2015/0166031 Canden Ave Portage, IN 213,444 53,088 863,100 18,222 $0.34 2.11% 2015/016


Portage / Ogden Multifamily Tax Comparable Summary





Cumulative Square Feet - - 329,141 658,281 658,281 923,494 1,188,708 1,453,921 1,719,134 1,719,134 1,719,134 Added Square Feet - - 329,141 329,141 - 265,213 265,213 265,213 - - - Vacancy Loss 0% 0% 10% 10% 10% 10% 10% 10% 10% 10% 10%Credit Loss 0% 0% 2% 2% 2% 2% 2% 2% 2% 2% 2%Occupancy from Existing Suply 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%Occupancy from New Suply 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%Occupied Sq. Ft. - - 164,570 493,711 658,281 790,888 1,056,101 1,321,314 1,719,134 1,719,134 1,719,134







Potential Base Rent - - 2,567,223 8,086,753 13,380,753 16,880,032 23,667,541 30,795,491 48,808,943 49,785,122 50,780,824 Loss to Lease - - (51,344) (161,735) (267,615) (337,601) (473,351) (615,910) (976,179) (995,702) (1,015,616) Scheduled Base Rent - - 2,515,879 7,925,018 13,113,138 16,542,431 23,194,190 30,179,581 47,832,764 48,789,419 49,765,208




Vacancy & Credit LossVacancy Allowance - - (251,588) (792,502) (1,311,314) (1,654,243) (2,319,419) (3,017,958) (4,783,276) (4,878,942) (4,976,521) Credit Loss - - (50,318) (158,500) (262,263) (330,849) (463,884) (603,592) (956,655) (975,788) (995,304)

Total Vacancy & Credit Loss - - (301,905) (951,002) (1,573,577) (1,985,092) (2,783,303) (3,621,550) (5,739,932) (5,854,730) (5,971,825)


Operating Expenses Management Fee - - (143,600) (292,944) (329,902) (472,072) (619,797) (773,242) (1,071,237) (1,092,662) (1,114,515) Other Administrative - - (97,993) (199,906) (225,127) (322,144) (422,952) (527,663) (731,016) (745,636) (760,549) Operating Expense - - (348,831) (711,615) (801,394) (1,146,751) (1,505,601) (1,878,347) (2,602,233) (2,654,278) (2,707,364) Maintenance - - (223,104) (455,132) (512,552) (733,434) (962,946) (1,201,346) (1,664,326) (1,697,612) (1,731,565) Real Estate Taxes (Per Sq. Ft.) - - (407,732) (831,774) (936,713) (1,340,384) (1,759,828) (2,195,514) (3,041,631) (3,102,464) (3,164,513) Other Tax/Fee/Permit - - (13,559) (27,660) (31,150) (44,573) (58,522) (73,010) (101,147) (103,170) (105,233) Insurance - - (94,912) (193,620) (218,047) (312,013) (409,651) (511,070) (708,028) (722,189) (736,632) Recreational/Amenities - - (5,547) (11,315) (12,743) (18,235) (23,941) (29,868) (41,378) (42,206) (43,050) Other Payroll - - (122,029) (248,939) (280,346) (401,160) (526,694) (657,090) (910,322) (928,528) (947,099) Land Tax (123,663) (133,857) - - - - - - - - -

Total Operating Expenses (123,663) (133,857) (1,457,306) (2,972,905) (3,347,974) (4,790,767) (6,289,933) (7,847,149) (10,871,319) (11,088,745) (11,310,520) Net Operating Income (123,663) (133,857) 756,667 4,001,110 8,191,587 9,766,573 14,120,955 18,710,882 31,221,513 31,845,943 32,482,862








Dec-2017 Dec-2021 Dec-2022 Dec-2023 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Dec-2040 Dec-2041Annual Cash Flow (123,663) (133,857) (47,616,655) (44,454,496) 8,027,017 (29,530,639) (25,242,560) (20,718,936) 30,791,730 31,416,160Resale Value (1,648,838) 535,967,229Total Cash Flow (1,772,500) (133,857) (47,616,655) (44,454,496) 8,027,017 (29,530,639) (25,242,560) (20,718,936) 30,791,730 567,383,389


IRR Summary

Market Value of LandLand Value per Sq. Ft. $1.00Multifamily (Market) Land Area (Sq. Ft.) 1,648,838 Land Value $1,648,838

Residual Value of Land Present Value (PV) of future cash flows $4,865,926PV (rounded) $4,900,000Total Land Area (Sq. Ft.) 1,648,838 Price Per Sq. Ft. of Land $2.97




Portage / Ogden - Dunes –Multifamily Affordable













NOI Margin (%) 62.48% 73.48% 70.21% 66.83% 68.80%






2400 Dixie Dr Portage, IN 43,996 3,498 206,500 4,450 $1.27 2.15% 2015/0162378 Dixie Dr Portage, IN 9,148 3,498 173,200 3,464 $0.99 2.00% 2015/0166031 Canden Ave Portage, IN 213,444 53,088 863,100 18,222 $0.34 2.11% 2015/016


Portage / Ogden Multifamily Tax Comparable Summary













Total Operating Expenses (18,628) (20,164) (192,879) (393,473) (443,114) (695,293) (957,381) (1,229,674) (1,737,361) (1,772,108) (1,807,550) Net Operating Income (18,628) (20,164) 86,828 487,603 986,989 1,210,502 1,892,495 2,616,940 4,561,477 4,652,706 4,745,761










IRR Summary


Residual Value of Land Present Value (PV) of future cash flows ($1,019,107)PV (rounded) ($1,000,000)Total Land Area (Sq. Ft.) 331,168 Price Per Sq. Ft. of Land ($3.02)




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