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Mortgage Component For The Fairfield Of Tallahassee

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For this section of the report, we will take into consideration the applicable costs in development of the proposed lodging facility in conjunction with our forecasted operating statement and the financing components involved in the project. We intend to forecast an estimate of return given the assumptions of the project.

Mortgage Component
For the Fairfield of Tallahassee, we will use the provided term sheet to assume that suggest a blended interest rate of 5.28% percent, 20-year amortization mortgage with a 0.08164 constant, and an 80 percent loan-to-value ratio is appropriate. The term sheet of the loan will be provided in the addenda of this report
Estimate of Equity Yield Component
The remaining capital required …show more content…

Equity Yield
We have forecasted the equity yield to be earned by the equity investor to be approximately $4,099,171.51 based upon the assumption of a required 18% return. The results are summarized in the following table.

Conclusion
In determining the potential feasibility of the Fairfield of Tallahassee, we analyzed the lodging market, researched the area’s economics, reviewed the estimated development cost, and prepared a forecast of income and expense. Given the assumptions made in the content of this report the equity and debt investor should be provided a positive return which confirms the feasibility of the acquisition for the Fairfield of Tallahassee.

We hereby certify that we have no undisclosed interest in the property and our employment and compensation are not contingent upon our findings. This study is subject to the comments made throughout this report and to all assumptions and limiting conditions set forth herein. The conclusions presented in this report are based upon the information available and received at the time the report was filed. NHCG has taken every possible precaution to evaluate this information for its complete accuracy and reliability. Parts of this report were prepared or arranged by third-party contributors, as indicated throughout the document. While third-party contributions have been reviewed by NHCG for reasonableness and consistency for including in this report, third-party information has not

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