Message-ID: <10662150.1075855725416.JavaMail.evans@thyme> Date: Tue, 27 Mar 2001 03:37:00 -0800 (PST) From: phillip.allen@enron.com To: gthorse@keyad.com Subject: Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Phillip K Allen X-To: gthorse@keyad.com X-cc: X-bcc: X-Folder: \Phillip_Allen_June2001\Notes Folders\'sent mail X-Origin: Allen-P X-FileName: pallen.nsf 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