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Home My WebLink AboutSDP 2022-0003; FPC RESIDENTIAL - SB 330; HOTEL FEASIBILITY ANALYSIS - PONTO STORAGE; 2022-04-01DR A F T DR A F T DR A F T DR A F T    DR A F T DR A F T DR A F T    DR A F T DR A F T DR A F T DR A F T DR A F T DR A F T DR A F T DR A F T DR A F T DR A F T DR A F T DR A F T Ponto Storage: 120-Room Hotel Assumptions & Results GENERAL ASSUMPTIONS Project Summary Current Year 2022 Total Building S.F.72,000 Acquisition/Construction Start 2022 Total Rooms 120 Hard Cost Escalation 3%F&B Per Occ. Room $20.00 Impact Fees Escalation 1% Construction Period 24 months Revenue Inflation 2.5%CONSTRUCTION COST SUMMARY Cost Cost Total Cost Per Gross S.F.Per Room HOLDING & DISPOSITION Land Cost $7,106,400 $99 $59,220 Holding Period:10 Hotel Hard Costs $25,140,000 $349 $209,500 Inflation Rate 3.00%Soft Costs $6,250,000 $87 $52,083 Cap Rate (Hotel):6.00%Contingency $1,569,500 $22 $13,079 Commission:3.00%Construction Loan Interest $1,730,847 $24 $14,424 Other Costs of Sale:0.30%Additional Carry Costs $233,000 $3 $1,942 Construction Loan Fee $250,780 $3 $2,090 Total Project Costs $42,280,527 $587 $352,338 Building Assumptions Less: Loan Amount $25,368,316 $352 $211,403 Hotel Rooms 120 Initial Investment:$16,912,211 $235 $140,935 Average S.F. per Room (common area incl.)600 Total Building S.F.72,000 FAR 0.44 INVESTMENT PERFORMANCE Parking Spaces 1.20 per room 144 Stabilized NOI Year 5 $1,888,889 Total Project Costs $42,280,527 Stabilized Yield On Cost 4.5% FINANCING Cash On Cash Construction Financing:Initial -100.0%($16,912,211) Loan Amount:$25,368,316 Year 1 0.0%$0 Loan to Cost 60%Year 2 0.0%$0 Term (Months)24 Year 3 0.0%($2,364) Interest Rate:6.0%Year 4 1.2%$199,205 Refinance:Mini-Perm Year 5 1.5%$254,698 Refinance at End of Year:2 Year 6 1.8%$311,843 Permanent Loan Amount $0 Year 7 2.1%$352,188 Less: Construction Loan $0 Year 8 2.3%$393,375 Less: Loan Fees 1.00%$0 Year 9 2.6%$435,422 Net Proceeds From Refinance $0 Year 10 79.5%$13,452,264 Permanent Loan Info:Total Profit ($1,515,581) Loan Amount $25,368,316 Before Tax IRR -1.0% Amortization 30 Interest Rate 5.0% Annual Debt Service $1,634,191 Next Year NOI @ Refi $1,631,827 Value at Refi $27,197,115 Loan To Value 60% Debt Coverage Ratio 1.00 Debt Yield 6.43% RESIDUAL LAND VALUE Land SF 163,800 Land Acreage 3.76 Land Value $7,106,400 $/Room $59,220 $/ Land S.F.$43DR A F T Ponto Storage: 120-Room Hotel Construction Costs Hotel Rooms 120 Average S.F. per Room 600 Hotel Gross S.F.72,000 Parking Spaces 144 Cost Cost Total Cost Per Room Per Gross S.F. Land Costs $7,106,400 $59,220.00 $98.70 Hard Costs Hard Costs (Hotel)$19,800,000 $165,000 $275.00 Amenities/FF&E $3,000,000 $25,000 $41.67 Pre-Opening Supplies $900,000 $7,500 $12.50 Parking $10,000 $1,440,000 $12,000 $20.00 Cost Escalation $0 $0 $0.00 Hard Costs Subtotal $25,140,000 $209,500 $349.17 Soft Costs Permit & Fees $3,750,000 $31,250 $52.08 Design Costs $2,500,000 $20,833 $34.72 Soft Costs Subtotal 25%$6,250,000 $52,083 $86.81 Finance & Contingency Contingency 5.0%$1,569,500 $13,079 $21.80 Construction Loan Interest $1,730,847 $14,424 $24.04 Additional Carry Costs $233,000 $1,942 $3.24 Loan Fee 1.0%$250,780 $2,090 $3.48 Finance & Contingency Subtotal $3,784,127 $31,534 $52.56 Total Project Costs $42,280,527 $352,338 $587.23 Total Project Costs (Excl. Land)$35,174,127 $293,118 $488.53 DR A F T Ponto Storage: 120-Room Hotel Hotel Cashflow Initial Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Period 0 1 2 3 4 5 6 7 8 9 10 11 Rooms 120 120 120 120 120 120 120 120 120 Annual Rooms Available 43,800 43,800 43,800 43,800 43,800 43,800 43,800 43,800 43,800 Rooms Occupied 25,930 27,944 28,207 28,470 28,470 28,470 28,470 28,470 28,470 Occupancy 59.2%63.8%64.4%65.0%65.0%65.0%65.0%65.0%65.0% ADR $118.99 $124.41 $126.89 $129.43 $132.02 $134.66 $137.35 $140.10 $142.90 RevPAR $70.44 $79.37 $81.72 $84.13 $85.81 $87.53 $89.28 $91.06 $92.89 Annual Increase in ADR 2.00%2.00%2.00%2.00%2.00% Revenues Rooms $3,085,363 $3,476,563 $3,579,212 $3,684,872 $3,758,570 $3,833,741 $3,910,416 $3,988,624 $4,068,397 % Ratio 47.0%47.0%47.0%47.0%47.0%47.0%47.0%47.0%47.0% Food & Beverage $544,846 $601,861 $622,709 $644,224 $660,329 $676,838 $693,759 $711,103 $728,880 % Ratio 14.8%14.8%14.8%14.8%14.8%14.8%14.8%14.8%14.8% Spa $0 $0 $0 $0 $0 $0 $0 $0 $0 % Ratio 0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0% Other Operated Departments $61,707 $69,531 $71,584 $73,697 $75,171 $76,675 $78,208 $79,772 $81,368 % Ratio 2.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0% Total Revenues $3,691,916 $4,147,955 $4,273,505 $4,402,793 $4,494,070 $4,587,253 $4,682,383 $4,779,499 $4,878,645 % Ratio 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% Less: Departmental Expenses $1,107,575 $1,244,387 $1,282,052 $1,320,838 $1,348,221 $1,376,176 $1,404,715 $1,433,850 $1,463,593 % Ratio 30.0%30.0%30.0%30.0%30.0%30.0%30.0%30.0%30.0% Gross Operating Income $2,584,341 $2,903,569 $2,991,454 $3,081,955 $3,145,849 $3,211,077 $3,277,668 $3,345,649 $3,415,051 % Ratio 70.0%70.0%70.0%70.0%70.0%70.0%70.0%70.0%70.0% Less: Undistributed Expenses $553,787 $622,193 $641,026 $660,419 $674,111 $688,088 $702,357 $716,925 $731,797 % Ratio 15.0%15.0%15.0%15.0%15.0%15.0%15.0%15.0%15.0% Gross Operating Profit $2,030,554 $2,281,375 $2,350,428 $2,421,536 $2,471,739 $2,522,989 $2,575,310 $2,628,725 $2,683,255 % Ratio 55.0%55.0%55.0%55.0%55.0%55.0%55.0%55.0%55.0% Less: Base Management Fee $103,374 $116,143 $119,658 $123,278 $125,834 $128,443 $131,107 $133,826 $136,602 % Ratio 2.8%2.8%2.8%2.8%2.8%2.8%2.8%2.8%2.8% Less: Fixed Expenses $221,515 $248,877 $256,410 $264,168 $269,644 $275,235 $280,943 $286,770 $292,719 % Ratio 6.0%6.0%6.0%6.0%6.0%6.0%6.0%6.0%6.0% Net Operating Income Before Reserve $1,705,665 $1,916,355 $1,974,359 $2,034,091 $2,076,261 $2,119,311 $2,163,261 $2,208,129 $2,253,934 % Ratio 46.2%46.2%46.2%46.2%46.2%46.2%46.2%46.2%46.2% Less: Reserve for Replacement $73,838 $82,959 $85,470 $88,056 $89,881 $91,745 $93,648 $95,590 $97,573 % Ratio 2.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0% Net Operating Income $1,631,827 $1,833,396 $1,888,889 $1,946,035 $1,986,379 $2,027,566 $2,069,613 $2,112,539 $2,156,361 % Ratio 44.2%44.2%44.2%44.2%44.2%44.2%44.2%44.2% Less: Permanent Debt Service $0 $0 ($1,634,191)($1,634,191)($1,634,191)($1,634,191)($1,634,191)($1,634,191)($1,634,191)($1,634,191) Net Proceeds from Refinance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Cash Flow From Operations $0 $0 $0 ($2,364)$199,205 $254,698 $311,843 $352,188 $393,375 $435,422 $478,347 Project Year-To-Year Value 0 1 2 3 4 5 6 7 8 9 10 Sales Price (Hotel Component)$0 $27,197,115 $30,556,604 $31,481,489 $32,433,911 $33,106,318 $33,792,767 $34,493,552 $35,208,977 $35,939,349 Sales Commission $0 ($815,913)($916,698)($944,445)($973,017)($993,190)($1,013,783)($1,034,807)($1,056,269)($1,078,180) Other Costs of Sale $0 ($81,591)($91,670)($94,444)($97,302)($99,319)($101,378)($103,481)($105,627)($107,818) Loan Balance $0 $0 $0 $0 $0 $0 $0 $0 $0 ($21,779,434) Net Sale Proceeds:$0 $26,299,610 $29,548,236 $30,442,600 $31,363,592 $32,013,810 $32,677,606 $33,355,265 $34,047,081 $12,973,916 Total Cash Flow Before Taxes ($16,912,211)$0 $0 ($2,364)$199,205 $254,698 $311,843 $352,188 $393,375 $435,422 $13,452,264 Before Tax IRR -1%DR A F T • • • • • • DR A F T DR A F T