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Archive · Mar 27, 2001, 11:37 AM

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FromPhillip K Allen
ToGthorse <gthorse@keyad.com>
Greg,

Here are my comments and questions on the cost estimates:

Cost per square foot seem too low for construction $33.30/sf (gross)/$36/sf

(rentable)

What do the cost for On-Site General Requirements ( $299,818) represent?

Will you review the builders profit and fees with me again?  You mentioned 2%

overhead, 3 %  ???, and 5% profit.

Why is profit only 4%?

Why are the architect fees up to $200K.  I thought they would be $80K.

What is the $617K of profit allowance?  Is that the developers profit to

boost loan amount but not a real cost?

Total Closing and Application costs of 350K?  That seems very high?  Who

receives the 2 points?  How much will be sunk costs if FHA declines us?

Where is your 1%?  Are you receiving one of the points on the loan?

What is the status on the operating pro forma?  My back of the envelope puts

NOI at $877K assuming 625/1BR, 1300/3BR, 950/2BR, 5% vacancy, and 40%

expenses.  After debt service that would only leave $122K.  The coverage

would only be 1.16.

Talk to you this afternoon.

Phillip