financial modelling

Rainier Companies Draft - For Internal Use Only

Comments

* 8% pref to all equity holders Returns 2015 2016

*70% to Raininer companies after pref Date Month

*30% to JV partner after pref Unlevered NCF: $1,705,000 -$745,000 $2,450,000 Acquisition 1 1/1/2015

*First mortgage cash flow sweep until paid in full Unlevered IRR: 55% End 24 12/31/2016

* Mezz debt has a $500k exit fee Unlevered Mult: 1.68X

Levered NCF $850,000 -$400,000 $1,250,000

Levered IRR: 95%

Levered Mult: 2.7X

First Mortgage NCF: $316,696 $316,696 $0

First Mortgage IRR: 31%

First Mortgage Mult: 1.21X

Mezz Debt NCF: $585,510 -$575,600 $1,161,111

Mezz Debt IRR: 51%

Mezz Debt Mult: 1.67X

JV Partner - 30% Split After Pref

Equity Contribution: $225,000 $25,000

Pref: $30,970 $3,441

70% Split: $745,912 $319,677

IRR: 127% 313%

Multi: 4.45X 4.45X

Waterfall

Rainier - 70% Split After Pref

Project Returns/Cash Flow Timing/Assumptions