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Confidential Offering Memorandum Holiday Inn Express Florence, AZ. 5-15-2013

1200 Sunrise Plaza Drive Florence, Arizona 85232

CONFIDENTIAL OFFERING MEMORANDUM

EXCLUSIVE LISTING

For Further Information

Jason Jones, Sr. V.P.

602-625-0964

[email protected]

2942 24th Street #114, Phoenix, AZ. 85016 – 480-423-8383 – Fax 602-271-0220 – [email protected]

www.shshotels.com

http://www.shshotels.com/

http://www.ihg.com/holidayinnexpress/hotels/us/en/reservation


DISCLAIMER STATEMENT

Important – Please Read

Broker Disclaimer

This Confidential Offering Memorandum has been prepared by Swoboda Hospitality Specialists (SHS) in cooperation with the owner, solely for the limited use

of prospective purchasers. This Confidential Offering Memorandum is not intended to provide all the information necessary to reach a purchase decision.

Each prospective purchaser is encouraged to do their own inspection and gather and verify to their satisfaction any information about the property.

Financial, operational, property description, projections and other information are carefully compiled from sources believed to be reliable, however, no liability is

assumed for errors and omissions, misstatements of facts, prior sale, change in price or withdrawal from the market without notice. No obligation is assumed

by (SHS) to supplement or modify the information to reflect subsequent events or conditions. Nothing contained in this presentation should be assumed to

constitute legal or tax advice concerning the property or the purchase of the property.

Environmental Issues:

The owner and (SHS) specifically make no representation whatsoever about any environmental conditions on the property, including but not limited to issues

such as asbestos, hazardous waste, petroleum leaks or spills. Each prospective purchaser is encouraged to do their own study and analysis in order to

determine to their own satisfaction the status of any Environmental issues.

American With Disabilities (ADA) Federal Law:

This law is intended to make many business establishments equally accessible to persons with a variety of disabilities; modif ication to the real property may be

required. State and local laws also mandate changes. (SHS) in this transaction is not required to advise you as to what, if any changes may be required not or

in the future. Prospective purchasers should consult an attorney and a qualified design professional of their choice for information regarding these matters.

Real Estate Brokers cannot determine which attorneys or design professionals have the appropriate expertise in this area.

Confidentiality:

All information contained in this offering, except information which is a matter of public record, is confidential in nature and must be held in the strictest

confidence. Duplication or reproduction of any of the contents of this document, or other information provided to you by (SHS) about the property, without

express written permission of (SHS) is prohibited. The recipient of offering further agrees that they will not attempt to contact the Seller or employees of the

property, nor visit the property without the expressed consent of both (SHS) and the Seller of the property.

Return This memorandum is the property of (SHS) and is intended to be used by such parties to whom (SHS) has delivered this memorandum, or to whom

(SHS) has approved such delivery. If you have no interest in the property at this time, kindly return this memorandum and all other information provided to you

by the owner, (SHS) or others to: Swoboda Hospitality Specialists 2942 N. 24th Street #114, Phoenix, AZ., 85016.

Agency: (SHS) is the exclusive agent of the Seller, and shall be compensated by the Seller.

Acceptance: Acceptance of this Confidential Offering Memorandum by recipient signifies acceptance of the terms and conditions stated above.


TABLE OF CONTENTS

Disclaimer

Investment Highlights

Property Description

Market Summary

Lodging Market Analysis

Financial Analysis



INVESTMENT HIGHLIGHTS

Swoboda Hospitality Specialists, as sole and exclusive agent for Pinal Hotel AZ-1 L.L.C. (the “Seller

is pleased to offer qualified investors the opportunity to acquire the fee-simple interest in the 90-room Holiday Inn

Express (the “Property” or “Hotel”) in Florence, Arizona.

Florence is located 60 miles southeast of Phoenix and 70 miles northeast of Tucson.

The Holiday Inn Express is the only branded property in Florence, and it is nearly 30 miles from its closest competitor. The Hotel opened in 2008,

is in excellent condition, and has one of the strongest brand affiliations in its competitive set. The town of Florence relies heavily on the government

sector, primarily the corrections department, as there are nine prisons in the area.

This offering represents an excellent opportunity for a hands-on owner/operator to acquire a relatively new hotel with a strong brand

affiliation at an attractive price per room that is well below replacement cost. There is strong upside available to a new owner/operator who will

employ a more hands-on approach.

More details can be found at www.shshotels.com



KEY PROPERTY FEATURES

HIGHLIGHTS

• 90 guest rooms in a three-story, interior corridor

building

• 3,038 square feet of meeting space

• Outdoor swimming pool and whirlpool, fitness room,

business center, and a guest laundry

• Opened in April 2008 and is the newest hotel in the

Florence/Coolidge/Casa Grande region

• Strong upside available as the hotel approaches

stabilization



AREA GROWTH

• The largest commercial business in Florence is the

housing of prisoners in the three large correctional

facilities located in the center of town. Over the last few

years, the State of Arizona had been housing 5,000

prisoners in Oklahoma but is now moving those inmates

back to Florence. The town’s prisoner population grew

in 2010 from 17,000 to 19,000 as a result of these

returning inmates. The largest prison operator in the

country, Correction Corporation of America, recently

purchased 200 acres in Florence on which they will add

space for an additional 8,000 inmates, increasing the

capacity of the Florence prison system by almost 50%.

• The National Guard is expanding their presence in

Florence by adding a “Readiness Center” which will be

completed in January 2011. This center is part of the

Guard’s overall plan of moving a significant portion of

their operations facilities from Phoenix to Florence.

• Florence Community Hospital, a renovation of the

former Central Arizona Medical Center, reopened as a

privately run facility in spring 2010. In addition to typical

treatments, the hospital, which is less than one mile

from the Holiday Inn Express, will also offer long-term

care. and is now known as. Additionally, ground was

recently broken on the construction of the new Florence

Hospital at Anthem located ten miles north of the

Hotel in the Anthem at Merrill Ranch community. The

10-acre site will be the first phase of a planned 40-acre

medical campus.

FINANCIAL HIGHLIGHTS

Price: $5,950,000

Price per room: $66,110

Number of rooms: 90

OWNERSHIP AND TERMS

The Property is offered free and clear of debt and

management and a minimal change of ownership PIP is

expected.


PROPERTY DESCRIPTION


SUMMARY OF FACILITIES AND AMENITIES

Address:

1200 Sunrise Plaza Drive Florence, Arizona 85232

Guestrooms: 90 guest rooms

Built: 2008 / 3 story, interior corridor

Acres: +/- 2.44 acres

Parking: 101 surface spaces

Tenure: Fee simple

Meeting Space: 3,038 square feet, including a

2,646-square foot ballroom

Food & Beverage: Complimentary continental breakfast

In-Room Amenities:

Complimentary high-speed Internet

32" flat panel television

Coffee maker

Microwave/mini-refrigerator

Hair dryer

Iron and ironing board

Additional Amenities:

Outdoor swimming pool and whirlpool

Fitness room

Business center

Guest laundry


ACCESS AND VISIBILITY

The Property enjoys good visibility from Florence-Coolidge

Highway (Highway 287), one of the primary thoroughfares

bisecting Florence.

GUEST ROOMS

Each of the 90 guest rooms features a 32’ flat panel television,

work desk with chair, high-speed Internet access, two-line

phone with voicemail and speakerphone, coffee maker,

microwave, mini-refrigerator, hair dryer and iron/board.

GUEST ROOM CONFIGURATION

ROOM TYPE NUMBER

Standard King 4

Jacuzzi King 4

King Handicap 3

Double Queen 28

Double Queen Handicap 1

King Suite 50

Total 90

FOOD AND BEVERAGE

The Holiday Inn Express offers a complimentary

Smart Start breakfast buffet daily.


PROPERTY DESCRIPTION MEETING FACILITIES

The Property’s meeting space is made up of two rooms with a

total of 3,028 square feet.

MEETING SPACE

ROOM AREA (SF) SEATING

Ballroom 2,646

Board Room 40

Classroom 150

Banquet 200

Reception 250

Theatre 300

Boardroom 392 40

CONSTRUCTION SPECIFICATIONS

STRUCTURAL AND SYSTEMS OVERVIEW

COMPONENT DESCRIPTION

Building Size:

Approximately 56,028 square feet

Foundation:

Reinforced concrete footings and stem walls, with reinforced

concrete slabs on aggregate base course (ABC)

Structural: Frame Wood, Exterior Walls Synthetic stucco

construction with, artificial stone accents, Interior Walls

Gypsum board on wood/steel studs, Roof Pitched with

decorative concrete tile

Parking Surface:, 101 spaces

HVAC

Guestrooms: individual wall-mounted heat pumps;

Public Areas: large roof-mounted heating and air conditioning

units

Public Utilities:

Electric: Arizona Public Service

Gas: Southwest Gas Company

Water: Town of Florence

Sewer: Town of Florence


MARKET AREA OVERVIEW

FLORENCE OVERVIEW

Florence is situated along the Gila River in the Sonoran Desert, 60

miles southeast of Phoenix and 70 miles northeast of Tucson.

Florence, located just east of the 372,000-acre Gila River Indian

Community, is one of the oldest towns in Arizona and is regarded as

a National Historic District with over 100 buildings listed on the

National Historic Registry. It is the seat of Pinal County, one of two

counties that comprise the Phoenix-Mesa MSA. Florence is home to

nine prisons including two Arizona Department of Corrections

prisons – Arizona State Prison Complex – Eyman and Arizona State

Prison Complex – Florence, the largest prison complex in the state.

Florence is also home to Country Thunder, the largest country music

festival in the southwestern U.S., and the Junior Parada Rodeo, the

oldest sanctioned youth rodeo in the country.

POPULATION

Much of the land within Florence, and the neighboring cities of

Coolidge and Casa Grande was historically a combination of desert

and agricultural land. However, between 1994 and 2005, the

Phoenix-Mesa MSA experienced a significant development boom.

During this period, significant new master planned, residential

development began to occur within Florence, Coolidge, and Casa

Grande to meet the need for affordable housing, as many people

were being priced out of housing closer to major employment

centers and transportation arteries. The major planned communities

in the area include Del Webb/Pulte’s Anthem at Merrill Ranch, a

master planned community in Florence, and the Cross Creek Ranch

and Heartland Ranch master planned communities in Coolidge.

These new developments resulted in significant population growth in

Pinal County over the last ten years. Additionally, the town of

Florence has grown from ten square miles in 2000 to over 50

today.


ECONOMY

Its relatively young population base and low cost of

living, which is 21 to 27% lower than Southern

California, makes the Phoenix area an attractive

location for growing firms to build their employment

base. According to the U.S. Bureau of Labor Statistics,

total employment in the Phoenix MSA is currently nearly

1.7 million workers. Between 2003 and 2007, total

employment in the Phoenix MSA grew at 4.2%

annually, well above the national average growth rate of

1.4%. In March 2008, employment in the MSA began to

decline as compared to the previous year and total

annual employment fell at a rate of 5.2% per year

between 2007 and 2009. Total U.S. employment fell at

an annual rate of 2.5% during the same period. As

of September 2010, the unemployment rate in the

Phoenix MSA was 8.9% compared to 9.7% for the state

and 9.2% for the U.S. Agriculture is a predominant

employer within Pinal County, and cotton, cattle, grains,

and grapes are some of the main agricultural products

produced in the area. However, employment within the

town of Florence is dominated by the public sector,

most of which is concentrated within the area’s

correctional facilities. There are nine prison facilities in

Florence with a combined total of 17,000 beds providing

over 4,500 jobs. There are several federal government

and military training and testing facilities in and around

the Florence area. The major private employers in

Florence include Corrections Corporation of America and

Correctional Services Corporation. Major public employers

include the Arizona Department of Corrections, Florence

Unified School District, Pinal County Government, the Town of

Florence, and the U.S. Department of Homeland Security.

Additionally, the National Guard is expanding their presence in

Florence by adding a “Readiness Center” which will be

completed in

January 2011. This center is part of the Guard’s overall plan of

moving a significant portion of their operations facilities from

Phoenix to Florence. The Hotel is two miles from Florence’s

CBD. Additionally, the local economic base is integrally tied to

the economic base of the overall Phoenix-Mesa MSA.


TOURISM

There are many recreational opportunities and areas of

interest in and around Florence. The Gila River runs

through the town. Just east of Florence, visitors will find

numerous opportunities to enjoy the Sonoran Dessert

including the areas of Box Canyon, Martinez Canyon,

old Silverbell Mine, and Coke Ovens. Also in the area

are the Casa Grande Ruins, Lost Dutchman State Park,

Boyce Thompson Arboretum State Park, Tom Mix

Monument, and the Superstition Mountain Wilderness

Area. The Hotel is seven miles from St. Anthony

Monastery, the largest Greek monastery in the country.

The Hotel is also proximate to the Superstition Golf

Course, site of the LPGA Safeway Classic golf

tournament, and the Renaissance Festival. Major

events in the area include the annual Country Thunder

Music Festival, the largest music festival in the

Southwestern U.S., and the Junior Parada Rodeo, the

oldest sanctioned youth rodeo in the country. The

Arizona Renaissance Festival, east of Apache Junction

in the foothills of the Superstition Mountains, is a one of

the largest events of its kind in the nation. It features a

12-stage theater, 30-acre circus, an arts and crafts fair,

a jousting tournament, and a daily feast.

TRANSPORTATION

Highways

Florence is situated in the central portion of Pinal

County, 45 minutes from Phoenix and Tucson. The

town is 20 miles east of I-10 and is bisected by Highway

287, Highway 79, and Hunt Highway. Highway 287

connects Florence with I-10 to the west. Highway 79

connects the town with Apache Junction in eastern

Phoenix to the north, and Tucson to the south. Hunt

Highway provides access to the city of Queen Creek in

southwestern Phoenix. Airport The Holiday Inn Express

is 58 miles southwest of Phoenix Sky Harbor

International Airport which is, by far, the busiest airport

in Arizona with over 19 million annual enplanements.

The Hotel is 78 miles northeast of Tucson International

Airport, Arizona’s second busiest airport with over 2

million enplanements a year.

DEMAND GERNERATORS

DEMAND GENERATOR DISTANCE (MILES)

Florence State Prison 0.25

McFarland State Park 2

Casa Grande Ruins 5

Country Thunder Music Festival 5

St. Anthony's Greek Orthodox

Monastery 7

Anthem Golf Course 9

Junior Rodeo 11

Renaissance Festival 24

Gold Canyon Stables 25

Gold Canyon Golf Course 25

L O D G I N G M A R K E T A N A LY S I S

COMPETITIVE SET OVERVIEWThe identified competitive set of hotels is comprised of six hotels in addition to the Holiday Inn Express. Collectively, these properties provide a totalof 596 guest rooms including the Property. A profile of each of the identified competitive hotels is presented in the following table:

COMPETITIVE SET CHARACTERISTICS

PROPERTY CITY/STATE ROOMS OPENED DISTANCEMEETING

SPACE COMP

BREAKFASTRESTAURANT /

LOUNGEFITNESS CENTER

POOL

Holdiay Inn Express and Suites Florence, AZ 90 2008 NA 3,038 SF Y N/N Y Outdoor

Holiday Inn Casa Grande Casa Grande, AZ 176 1987 30 mi SW 5,796 SF N Y/Y Y Outdoor

Days Inn Casa Grande Eloy, AZ 67 1979 37 mi SW NA Y N/N N Outdoor

Super 8 Apache Junction Apache Junction, AZ 60 1996 34 mi N NA Y N/N N Outdoor

Best Western Gold Canyon Inn & Suites Gold Canyon, AZ 68 1999 28 mi N 5,289 SF Y N/Y Y Outdoor

Comfort Inn Casa Grande Casa Grande, AZ 65 1999 27 mi SW NA Y N/N Y Outdoor

MainStay Suites Casa Grande Casa Grande, AZ 70 2006 27 mi SW NA Y N/N Y NA

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Holiday Inn Casa Grande The four-story, interior corridor Holiday Innwas built in 1987. This 176-room property isthe largest hotel in the competitive set. Itfeatures Cabo’s Bar and Grill, an outdoor pool,fitness center, complimentary high-speedInternet access, guest laundry, business center, airport shuttle, and 5,796 square feetof meeting space, including a 4,500-square footballroom. The hotel is located approximately30 miles southwest of the Property.

Days Inn Casa Grande

Located in Eloy, 37 miles southwest of theHoliday Inn, the two-story, exterior corridorDays Inn was built in 1979. The Days Innfeatures a complimentary continentalbreakfast, free high-speed Internet access,an outdoor swimming pool, guest laundry, andtruck/bus parking.

Super 8 Apache Junction

The 60-room Super 8 is located 34 miles north ofthe Holiday Inn Express in Apache Junction.Built in 1996, the two-story, interior corridorSuper 8 features an outdoor pool and whirlpool,complimentary continental breakfast, wirelesshigh-speed Internet access, guest laundry, and RV/truck parking.

Best Western Gold Canyon Inn and Suites

The Best Western, built in 1999, offers 68guestrooms within a two-story, exteriorcorridor building. Hotel amenities include anoutdoor pool and whirlpool, a fitness center,high-speed Internet access, complimentarybreakfast, and 5,289-square feet of meeting space for up to 200 people. The hotel is locatedapproximately 28 miles north of the HolidayInn Express.

Comfort Inn Casa Grande

The 65-room Comfort Inn is located 27 milessouthwest of the Hotel in Casa Grande. Theinterior corridor hotel was built in 1999 andfeatures an outdoor swimming pool, fitnesscenter, complimentary continentalbreakfast, high-speed Internet access, and a guest laundry.

MainStay Suites Casa Grande

The two-story, interior corridor MainStaySuites was built in 2006 with 70 suites. Eachsuite features a fully equipped kitchen andweekly housekeeping services. The hoteloffers a complimentary continental breakfast,fitness center, guest laundry, high-speed Internet access, and a business center.



LODGING AND MARKET ANALYSIS

COMPETITIVE SET TRENDS

The Florence/Coolidge/Casa Grande area has not

suffered from the overbuilding that has plagued many

hotel markets around the U.S., and the Holiday Inn

Express is the only nationally branded hotel in the town

of Florence. The 90-room Subject Hotel, a 77-room

Holiday Inn Express and Suites opened in December

2010 and the 480-room Legacy Suites both in Casa

Grande in Casa Grande, 24 miles from the Subject are

the only three hotels that have opened in the three-city

area since 2006. While the Legacy Suites is operated

as a hotel, it reportedly has a significant amount of long-

term stay demand that could be more aptly described

as permanent residents. The public sector provides

thousands of stable jobs and is the backbone of

the Florence’s economy. Many of the hotel guests

during the week are business travelers working on

government contracts and/or members of U.S.

Marine and National Guard units conducting training

exercises in the area. Since its opening in May 2008,

the Hotel has experienced steady RevPAR growth as it

ramps up and moves towards stabilization. It is the

newest hotel in its competitive set, its ADR index is well

above 100 percent, and its occupancy index is

approaching 100 percent. Due to its superior condition

and brand affiliation, as the hotel reaches stabilization, it

should be able to

achieve occupancy and ADR well above market

penetration levels. An owner/operator with a focused

marketing strategy and hands-on approach would likely

see significant improvement in property operations.

Total Rooms Available 90

2012 ACTUAL RESULTS Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 TOTALS

OCCUPANCY % 46.85% 64.71% 58.35% 59.59% 49.28% 44.81% 40.51% 64.34% 55.85% 63.55% 53.15% 53.23% 54.79%

OCCUPIED ROOMS 1,307 1,689 1,628 1,609 1,375 1,210 1,130 1,795 1,518 1,771 1,483 1,485 18,000

ADR $88.87 $88.94 $86.89 $100.73 $81.88 $76.82 $73.50 $73.21 $75.29 $73.08 $73.76 $82.01 $0.00

ROOMS REVENUE 113,541 150,219 141,454 162,179 112,588 92,954 83,053 131,420 108,152 131,387 106,107 121,788 $1,454,842

NET OPERATING INCOME $28,278 $54,760 $41,010 $48,040 $7,543 $6,662 -$4,294 $28,512 $10,768 $36,483 $7,686 $25,943 $291,391

Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13

ACTUAL ACTUAL ACTUAL BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

OCCUPANCY % 60.90% 65.71% 60.97% 67.22% 58.06% 52.41% 53.58% 64.34% 75.00% 67.03% 62.22% 56.63% 61.99%

OCCUPIED ROOMS 1712 1656 1701 1815 1620 1415 1495 1795 2025 1870 1680 1580 20364

REVPAR $49.09 $55.76 $53.92 $64.05 $52.03 $42.19 $40.48 $48.78 $57.02 $55.63 $50.67 $45.78 $50.91

AVERAGE DAILY RATE $78.00 $83.17 $84.64 $95.27 $89.60 $80.50 $75.55 $75.82 $76.03 $83.00 $81.43 $80.84 $82.12

REVENUES

ROOMS 134,682 139,350 143,503 172,922 145,150 113,901 112,942 136,100 153,967 155,208 136,804 127,732 1,672,260

TELEPHONE 282 65 247 35 35 20 20 20 20 20 35 35 834

MISCELLANEOUS 1,741 2,984 3,889 3,360 2,866 2,532 2,476 2,638 3,413 3,441 3,558 4,044 36,942

TOTAL REVENUES 136,705 142,399 147,639 176,317 148,051 116,453 115,438 138,758 157,400 158,669 140,397 131,811 1,710,036

COST OF SALES

MISCELLANEOUS 0 458 111 400 0 0 400 0 0 400 0 0 1,768

TOTAL COST OF SALES 0 458 111 400 0 0 400 0 0 400 0 0 1,768

GROSS OPERATING INCOME 136,705 141,941 147,529 175,917 148,051 116,453 115,038 138,758 157,400 158,269 140,397 131,811 1,708,267

PAYROLL AND RELATED

ROOMS 24,576 22,212 26,890 24,017 24,168 23,234 24,382 24,989 24,734 25,165 25,038 25,373 294,779

ADMINISTRATIVE & GENERAL 8,252 8,101 8,072 8,554 8,554 8,837 8,837 9,967 8,967 8,967 9,467 9,967 106,542

ADVERTISING & PROMOTONS 0 0 0 0 0 0 0 0 0 0 0 0 0

REPAIRS & MAINTENANCE 805 534 481 3,138 3,238 3,138 3,238 3,238 3,138 3,238 3,138 3,238 30,564

TOTAL PAYROLL & RELATED 33,634 30,847 35,442 35,710 35,960 35,210 36,457 38,194 36,839 37,370 37,644 38,578 431,885

OPERATING EXPENSES

ROOMS 17,275 13,622 16,264 21,039 17,441 15,299 16,922 18,555 20,614 21,192 17,818 16,997 213,039

TELEPHONE & INTERNET 1,911 992 802 900 900 900 900 900 900 900 900 900 11,805

ADMINISTRATIVE & GENERAL 6,364 6,784 10,581 6,033 5,189 4,408 5,534 4,963 5,409 5,590 4,980 4,753 70,587

ADVERTISING & PROMOTIONS 4,612 1,895 4,635 3,960 3,610 5,610 4,110 4,610 2,960 5,960 3,110 3,460 48,532

FRANCHISE FEES 17,708 16,814 19,042 21,246 18,042 14,604 14,649 17,046 19,011 19,298 17,123 16,126 210,708

MANAGEMENT FEE 2,000 2,000 2,100 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,100

REPAIR & MANTENANCE 4,541 3,801 7,226 2,900 2,700 6,400 2,900 2,700 2,700 2,900 2,700 6,400 47,868

UTILITIES 8,546 7,566 7,588 8,750 8,835 8,985 8,985 9,985 9,385 8,385 8,385 7,885 103,281

TOTAL OPERATING EXPENSES 62,956 53,475 68,239 66,829 58,716 58,206 55,999 60,759 62,980 66,225 57,017 58,520 729,920

HOUSE PROFIT 40,115 57,619 43,847 73,379 53,375 23,038 22,581 39,806 57,580 54,673 45,736 34,713 546,462

FIXED EXPENSES

PROPERTY TAX - PERSONAL 1,000 1,000 1,000 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 15,150

PROPERTY TAX - REAL 9,098 9,098 9,098 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 108,295

GENERAL LIABILITY/AUTO INSURANCE 2,481 2,116 2,116 2,150 2,150 2,150 2,150 2,150 2,150 2,150 2,150 2,150 26,063

TOTAL FIXED EXPENSES 12,580 12,215 12,215 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 149,509

NET OPERATING INCOME 27,535 45,404 31,633 60,879 40,875 10,538 10,081 27,306 45,080 42,173 33,236 22,213 396,953

NON-RECURRING START UP COSTS 5,191 8,521 6,968 20,680

MORTGAGE P&I EXPENSE 18,132 17,956 41,925 78,013

NET CASH FLOW 4,212 18,927 (17,260) 298,261

2013 BUDGET

2013 YEAR-TO-DATE + BUDGET

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