DISCLOSURE

Purpose and Scope: This document is for informational purposes only and does not provide tax, legal, investm

No Warranties: The document is provided "as is" without any warranties, express or implied. The authors/cont

Limitations of Liability: The authors/contributors will not be liable for any losses or damages related to the use

Exceptions: This disclaimer does not exclude or limit any liability for death, personal injury, fraud, fraudulent m

Intellectual Property Rights: All content within this document is the property of its respective owners. No use o

Amendments and Updates: The document and its disclaimer are subject to change. Users will be informed of t

User Responsibilities: Users are responsible for ensuring the document meets their needs and for not using it f

Governing Law and Jurisdiction: Disputes related to this document will be governed by New York State law.

Third-Party Links and Resources: The document may contain links to external sites, for which the authors/cont

Use at Own Risk: Users are responsible for their use of the document and should exercise caution and due dili

Non-Distribution Clause
Restricted Sharing: The information contained within this Excel document is confidential and intended solely fo
herein, is strictly prohibited and may be unlawful.
No Public Dissemination: This document, or any part thereof, must not be shared publicly or with any third par
Violation Consequences: Breach of this non-distribution clause may result in legal action for injunctive relief, d
Acknowledgment of Terms: By accessing this document, you acknowledge your understanding and agreemen
oses only and does not provide tax, legal, investment, or accounting advice. Consult your own advisors before engaging in

warranties, express or implied. The authors/contributors do not guarantee its completeness, truthfulness, accuracy, or no

able for any losses or damages related to the use of this document, including direct, indirect, special, or consequential loss

ility for death, personal injury, fraud, fraudulent misrepresentation, or any other liability that cannot be excluded or limited

is the property of its respective owners. No use of trademarks, copyrights, or intellectual property is permitted without ex

are subject to change. Users will be informed of these changes as applicable.

document meets their needs and for not using it for illegal purposes.

ment will be governed by New York State law.

links to external sites, for which the authors/contributors are not responsible.

ocument and should exercise caution and due diligence.

cel document is confidential and intended solely for the use of the individual or entity to whom it is addressed. Any unautho

must not be shared publicly or with any third parties not explicitly authorized by the authors/contributors. This includes, b
se may result in legal action for injunctive relief, damages, or both. The authors/contributors reserve the right to pursue an
acknowledge your understanding and agreement to adhere strictly to the terms of this non-distribution clause.
vice. Consult your own advisors before engaging in any transaction based on this information.

ntee its completeness, truthfulness, accuracy, or non-misleading nature.

luding direct, indirect, special, or consequential losses, or loss of profit, revenue, data, or reputation.

any other liability that cannot be excluded or limited by law.

hts, or intellectual property is permitted without explicit authorization.

icable.

nsible.

dual or entity to whom it is addressed. Any unauthorized review, use, disclosure, distribution, or copying of this document,

horized by the authors/contributors. This includes, but is not limited to, publishing, posting online, or distributing through an
authors/contributors reserve the right to pursue any legal remedies available to them under applicable law.
the terms of this non-distribution clause.
ed on this information.

revenue, data, or reputation.

isclosure, distribution, or copying of this document, or the information contained

publishing, posting online, or distributing through any media channels.

ailable to them under applicable law.
Broadfield Realty Capital
Value-Add Mulitfamily Acquisition Model
Deal Summary Debt Assumptions Unit Mix In-Place Rent Reno Rents Income Statement - Summary
Name NMHC Apts Loan Amount 60.4% LTV $33,230,000 Type % of Total Unit Count SF Monthly Monthly Income Year 1 Metrics Year 1 Year 5
Address 123 Broadway PMT $201,014 Studio 20% 50 700 $1,600 $1,800 Gross Rent $24,301 Per Door 5,953,686 6,976,603
City/State Charlotte, NC Term 3 Years 1 Bed 51% 125 850 $1,800 $2,000 Vacancies -13.0% (773,979) (348,830)
Purchase Price $55,000,000 Rate 6.00% 2 Bed 18% 45 1000 $2,100 $2,300 Collection Loss -3.0% (178,611) (209,298)
Units 245 Amort 30 Years 3 Bed 10% 25 1400 $2,800 $3,000 Net Rental Revenue 84.0% 5,001,096 6,418,475
Price per Door $224,490 Fee 0.50% $166,150 Total/Average 100% 245 903 $1,916 $2,116 Reimbursement Income $1,467 $1,579
Y1 NOI $3,135,473 Loan Sizing Parameters Other Income $856 $921
Y1 Expense Ratio 37% NOI $3,135,473 Annual Growth Assumptions Total Revenue $20,422 Per Door 5,003,418 6,420,974
LTV/LTPP 67.0% Year Occupancy Rent Other Income Expense Property Taxes Expenses $7,624 Per Door 1,867,945 2,105,787
General Assumptions Debt Yield (DY) 8.50% Year 1 87% 5.0% 4.0% 3.0% 5.0% Expense Ratio 37% 33%
Closing Date 01/31/24 DSCR 1.30x Year 2 90% 4.0% 3.0% 3.0% 2.0% NOI $12,798 Per Door 3,135,473 4,315,187
Purchase Price $55,000,000 Note: This Loan Sizing Tool finds the Minimum of LTV/DY/DSCR Year 3 95% 3.0% 1.0% 3.0% 2.0% Stabilized Cap Rate 5.70% 7.85%
Closing Costs 4.0% $2,200,000 Year 4 95% 3.0% 1.0% 3.0% 2.0%
Going-in Cap Rate 5.70% Unit Metrics + Other Income Year 5 95% 3.0% 1.0% 3.0% 2.0% Waterfall
Exit Cap 6.00% Units 245 Year 6 95% 3.0% 1.0% 3.0% 2.0% IRR Promote GP LP
Hold Period 3 Years Avg Unit Size 903 SF Year 7 95% 3.0% 1.0% 3.0% 2.0% Pref 8% 10% 90%
Sales Costs 3.0% $2,093,930 Net Rental SF 221,250 SF Year 8 95% 3.0% 1.0% 3.0% 2.0% Hurdle 1 16% 10% 19.00% 81%
Avg In-Place Rent $1,916 /month Year 9 95% 3.0% 1.0% 3.0% 2.0% Hurdle 2 20% 15% 23.50% 77%
Sources Bad Debt & Non Rev. Units 3.0% Year 10 95% 3.0% 1.0% 3.0% 2.0% Hurdle 3 25% 32.50% 68%
Per Door % Total Other Income Year 11 95% 3.0% 1.0% 3.0% 2.0%
Senior Debt $135,633 56% $33,230,000 RUBS $120 Per Month Deal Level Returns
Sponsor Equity $10,668 4% $2,613,615 Other Income $70 Per Month Value Summary Unlevered 3 year 5 year 10 year
Stabilized Cap
LP Equity $96,010 40% $23,522,535 Year NOI NOI Growth Asset Value Yield on Cost IRR 11.00% 10.9% 10.1%
Rate
Total Uses $242,311 100% $59,366,150 Expenses Year 1 ### $ 52,257,887 5.28% 5.70% EMx 1.35x 1.60x 2.19x
Y1 Total Per Door/Annual Year 2 ### 14.8% $ 60,006,116 6.06% 6.55% Net Profit $19,803,866 $34,132,207 $68,345,421
Uses General & Administrative $99,359 $400 Per Door Year 3 ### 12.9% $ 67,738,175 6.85% 7.39% Levered
Per Door % Total Payroll $335,336 $1,350 Per Door Year 4 ### 3.0% $ 69,797,665 7.05% 7.61% IRR 16.2% 15.8% 13.5%
Purchase Price $224,490 93% $55,000,000 Advertising $62,099 $250 Per Door Year 5 ### 3.0% $ 71,919,787 7.27% 7.85% EMx 1.57x 2.02x 3.06x
Capex $8,163 3% $2,000,000 Repairs & Maintenance $124,198 $500 Per Door Year 6 ### 3.0% $ 74,106,448 7.49% 8.08% Net Profit $13,683,451 $23,965,948 $49,308,898
Closing Costs $8,980 4% $2,200,000 Turnover $80,729 $325 Per Door
Financing Fees $678 0% $166,150 Grounds and Landscaping $31,050 $125 Per Door Renovation Assumptions Partnership Returns
Total Uses $242,311 100% $59,366,150 Service Contracts $55,889 $225 Per Door Renovation Start Month 2 CapEx Budget $12,000 Per Door Sponsor (GP) 3 year 5 year 10 year
Security $8,694 $35 Per Door Renovation / Month 15 % Units per Month ### IRR 22.5% 21.0% 16.5%
Exit Electric $55,889 $225 Per Door Unrenovated Units 125 % Unit Total ### EMx 1.82x 2.49x 3.97x
Proforma Sale NOI $4,064,291 Water/Sewer $149,038 $600 Per Door Renovation Period 9 Months Rent Premium $200 Net Profit $2,032,619 $3,605,801 $7,343,889
Exit Cap Rate 6.00% Trash $45,953 $185 Per Door Renovation End Month 10 ROI 20% Limited Partner (LP)
Total Interior Total Exterior
Net Sales Price $284,888 Per Door $69,797,665 Insurance $223,557 $900 Per Door 1,500,000 $500,000 IRR 15.3% 14.9% 12.8%
Budget Budget
Loan Paydown $31,986,604 Management 2.98% $149,038 $600 Per Door EMx 1.52x 1.94x 2.89x
Proceeds Available for Paydown $37,811,061 Real Estate Taxes $447,115 $1,800 Per Door Net Profit $11,650,833 $20,360,147 $41,965,009
Total $1,867,945 Note: 5 & 10 year returns are calculated regardless of input Hold period (cell E21). Red for emphasis.
Year Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Month Month 0 Month 12 Month 24 Month 36 Month 48 Month 60 Month 72 Month 84 Month 96 Month 108 Month 120
For the Period Ending 1/31/2024 1/31/2025 1/31/2026 1/31/2027 1/31/2028 1/31/2029 1/31/2030 1/31/2031 1/31/2032 1/31/2033 1/31/2034
Occupied Units 214 Units 221 Units 233 Units 233 Units 233 Units 233 Units 233 Units 233 Units 233 Units 233 Units
Occupancy 87% 90% 95% 95% 95% 95% 95% 95% 95% 95%
Effective Rent/Month $1,961 $2,050 $2,122 $2,187 $2,253 $2,322 $2,392 $2,465 $2,540 $2,617
Renovated Rent / Month $2,166 $2,264 $2,343 $2,415 $2,488 $2,564 $2,642 $2,722 $2,805 $2,890

INCOME
Renovated Rents 1,997,424 3,395,944 3,515,161 3,622,078 3,732,247 3,845,767 3,962,740 4,083,270 4,207,467 4,335,441
Current Unrenovated Units 3,956,262 2,952,015 3,055,648 3,148,588 3,244,356 3,343,036 3,444,718 3,549,492 3,657,453 3,768,698
Vacancy (773,979) (634,796) (328,540) (338,533) (348,830) (359,440) (370,373) (381,638) (393,246) (405,207)
Bad Debt & Non Rev. Units (178,611) (190,439) (197,124) (203,120) (209,298) (215,664) (222,224) (228,983) (235,948) (243,124)
TOTAL RENTAL INCOME 5,001,096 5,522,724 6,045,144 6,229,013 6,418,475 6,613,699 6,814,861 7,022,141 7,235,726 7,455,808

OTHER REVENUE
RUBS 1,467 1,518 1,547 1,563 1,579 1,595 1,611 1,627 1,643 1,660
Other Income 856 886 903 912 921 930 940 949 958 968
TOTAL OTHER REVENUE 2,322 2,404 2,450 2,475 2,500 2,525 2,550 2,576 2,602 2,628

OPERATING EXPENSES
General & Administrative $400 99,359 102,381 105,495 108,704 112,010 115,417 118,927 122,545 126,272 130,113
Payroll $1,350 335,336 345,535 356,045 366,875 378,034 389,532 401,380 413,588 426,168 439,130
Advertising $250 62,099 63,988 65,934 67,940 70,006 72,136 74,330 76,590 78,920 81,320
Repairs & Maintenance $500 124,198 127,976 131,869 135,880 140,012 144,271 148,659 153,181 157,840 162,641
Turnover $325 80,729 83,184 85,715 88,322 91,008 93,776 96,628 99,568 102,596 105,717
Grounds and Landscaping $125 31,050 31,994 32,967 33,970 35,003 36,068 37,165 38,295 39,460 40,660
Service Contracts $225 55,889 57,589 59,341 61,146 63,006 64,922 66,897 68,931 71,028 73,188
Security $35 8,694 8,958 9,231 9,512 9,801 10,099 10,406 10,723 11,049 11,385
Electric $225 55,889 57,589 59,341 61,146 63,006 64,922 66,897 68,931 71,028 73,188
Water/Sewer $600 149,038 153,571 158,242 163,055 168,015 173,125 178,391 183,817 189,408 195,169
Trash $185 45,953 47,351 48,791 50,275 51,805 53,380 55,004 56,677 58,401 60,177
Insurance $900 223,557 230,357 237,364 244,583 252,022 259,688 267,587 275,725 284,112 292,753
Management 2.98% $600 149,038 153,571 158,242 163,055 168,015 173,125 178,391 183,817 189,408 195,169
Real Estate Taxes $1,800 447,115 460,714 474,727 489,166 504,045 519,376 535,173 551,451 568,224 585,507
TOTAL OPERATING EXPENSES 1,867,945 1,924,761 1,983,304 2,043,628 2,105,787 2,169,837 2,235,834 2,303,839 2,373,913 2,446,118
Expense Ratio 37% 35% 33% 33% 33% 33% 33% 33% 33% 33%
NET OPERATING INCOME 3,135,473 3,600,367 4,064,291 4,187,860 4,315,187 4,446,387 4,581,577 4,720,878 4,864,415 5,012,318
VALUATION 60,006,116 67,738,175 69,797,665 71,919,787 74,106,448 76,359,609 78,681,294 81,073,586 83,538,634 86,078,649
DSCR 1.30x 1.49x 1.68x
CAPITAL EXPENSES 1,500,000 - - - - - - - - -

NET CASH FLOW - 1,635,473 3,600,367 4,064,291 4,187,860 4,315,187 4,446,387 4,581,577 4,720,878 4,864,415 5,012,318

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
For the Period Ending 1/31/24 1/31/25 1/31/26 1/31/27 1/31/28 1/31/29 1/31/30 1/31/31 1/31/32 1/31/33 1/31/34
UNLEVERED GROSS DEAL LEVEL RETURNS
Purchase & Sale (55,000,000) - - 69,797,665 - - - - - - -
Transaction Costs (2,200,000) - - (2,093,930) - - - - - - -
NCF Before Debt Service - 1,635,473 3,600,367 4,064,291 - - - - - - -
Unlevered Cash Flow (57,200,000) 1,635,473 3,600,367 71,768,025 - - - - - - -
Yield on Cost 6.06% 5.28% 6.06% 6.85% 7.05% 7.27% 7.49% 7.72% 7.95% 8.19% 8.44%
Going in Cap Rate 5.70%
IRR 11.00%
EM 1.35x
Whole Dollar Profit $19,803,866
Net Profit via CF 47%

CAPITAL
Beginning Balance - 32,862,658 32,437,916 31,986,604 - - - - - - -
Loan Funding 33,230,000 - - - - - - - - - -
Debt Service - (2,412,174) (2,412,174) (2,412,174) - - - - - - -
Interest - (2,010,413) (1,985,279) (1,958,573) - - - - - - -
Amort - (401,761) (426,895) (453,601) - - - - - - -
Loan Payoff - - - (31,947,744) - - - - - - -
Ending Balance 33,230,000 32,828,239 32,401,344 - - - - - - - -

Loan Fees (166,150) - - - - - - - - - -

LEVERED GROSS DEAL LEVEL RETURNS

Net Acquisition / Residual (57,200,000) - - 67,703,735 - - - - - - -
Debt Transaction Costs (166,150) - - - - - - - - - -
Net Loan Proceeds 33,230,000 - - (31,947,744) - - - - - - -
NCF After Debt Service - (776,700) 1,188,193 1,652,117 - - - - - - -
Levered Cash Flow (24,136,150) (776,700) 1,188,193 37,408,108 - - - - - - -
Cash On Cash 5% 0.0% 2.9% 4.7% 6.6%
IRR 16%
EM 1.57x
Whole Dollar Profit $13,683,451
Net Profit via CF 15%

WATERFALL SUMMARY Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Levered Cash Flows (24,136,150) (776,700) 1,188,193 37,408,108 - - - - - - -
GP Contributions 10% 2,413,615 77,670 - - - - - - - - -
LP Contributions 90% 21,722,535 699,030 - - - - - - - - -
Total Contributions 24,136,150 776,700 - - - - - - - - -

Sponsor (GP) Cash Flow

Sponor Distributions - - 118,819 4,405,084 - - - - - - -
Contributions (2,413,615) (77,670) - - - - - - - - -
Net Cash Flow (2,413,615) (77,670) 118,819 4,405,084 - - - - - - -
Profit $2,032,619
IRR 22%
EM 1.82x

Limited Partner (LP) Cash Flow

LP Distributions - - 1,069,374 33,003,024 - - - - - - -
Contributions (21,722,535) (699,030) - - - - - - - - -
Net Cash Flow (21,722,535) (699,030) 1,069,374 33,003,024 - - - - - - -
Profit $11,650,833
IRR 15%
EM 1.52x

Hurdle 1 - Pref Return

Beg. Bal - 21,722,535 24,159,368 25,022,744 - - - - - - -
Accrual 8% - 1,737,803 1,932,749 2,001,819 - - - - - - -
LP Contribution 90% 21,722,535 699,030 - - - - - - - - -
LP Distributions - - 1,069,374 27,024,563 - - - - - - -
End Bal. 21,722,535 24,159,368 25,022,744 - - - - - - - -
LP IRR Check 8% (21,722,535) (699,030) 1,069,374 27,024,563 - - - - - - -

Contributions from Spo 10% 2,413,615 77,670 - - - - - - - - -

Distributions to Sponsor - - 118,819 3,002,729 - - - - - - -
Sponsor IRR Check 8% (2,413,615) (77,670) 118,819 3,002,729 - - - - - - -

Total Distributions - - 1,188,193 30,027,292 - - - - - - -

Cash Flow Remaining - - - 7,380,816 - - - - - - -

Hurdle 2

Beg. Bal - 21,722,535 25,897,171 28,971,344 603,736 700,333 812,387 942,368 1,093,147 1,268,051 1,470,939
Accrual 16% - 3,475,606 4,143,547 4,635,415 96,598 112,053 129,982 150,779 174,904 202,888 235,350
LP Contribution 81% 21,722,535 699,030 - - - - - - - - -
Prior Distributions - - 1,069,374 27,024,563 - - - - - - -
LP Distributions - - - 5,978,461 - - - - - - -
End Bal. 21,722,535 25,897,171 28,971,344 603,736 700,333 812,387 942,368 1,093,147 1,268,051 1,470,939 1,706,289
LP IRR Check 15% (21,722,535) (699,030) 1,069,374 33,003,024 - - - - - - -
Contributions from Spo 19% 2,413,615 77,670 - - - - - - - - -
Prior Distributions - - 118,819 3,002,729 - - - - - - -
Distributions to Sponsor - - - 1,402,355 - - - - - - -
Sponsor IRR Check 22% (2,413,615) (77,670) 118,819 4,405,084 - - - - - - -

Total Distributions - - - 7,380,816 - - - - - - -

Cash Flow Remaining - - - - - - - - - - -

Hurdle 3

Beg. Bal - 21,722,535 26,766,072 31,049,913 4,256,872 5,108,246 6,129,895 7,355,874 8,827,049 10,592,459 12,710,950
Accrual 20% - 4,344,507 5,353,214 6,209,983 851,374 1,021,649 1,225,979 1,471,175 1,765,410 2,118,492 2,542,190
LP Contribution 77% 21,722,535 699,030 - - - - - - - - -
Prior Distributions - - 1,069,374 33,003,024 - - - - - - -
LP Distributions - - - - - - - - - - -
End Bal. 21,722,535 26,766,072 31,049,913 4,256,872 5,108,246 6,129,895 7,355,874 8,827,049 10,592,459 12,710,950 15,253,140
LP IRR Check 15% (21,722,535) (699,030) 1,069,374 33,003,024 - - - - - - -

Contributions from Spo 24% 2,413,615 77,670 - - - - - - - - -

Prior Distributions - - 118,819 4,405,084 - - - - - - -
Distributions to Sponsor - - - - - - - - - - -
Sponsor IRR Check 22% (2,413,615) (77,670) 118,819 4,405,084 - - - - - - -

Total Distributions - - - - - - - - - - -
Cash Flow Remaining - - - - - - - - - - -

Hurdle 4

Distributions to LP 68% - - - - - - - - - - -
Distributions to GP 33% - - - - - - - - - - -
Total Distributions - - - - - - - - - - -