Term Sheet
4/10/2025
Page 1 of 3
Serenity Village @ 3 Mile Creek
PROJECT INFORMATION
Number of Units
120
Year Built
N/A
Property Address
St. Stephens Rd & St. Charles Ave
Mobile, AL, 36617
Sponsor/Developer North Star Group, Inc.
Contact Michael Hoffman
PROPOSED LOAN DATA
Loan Amount 16,328,300
Other Sources (Soft Debt, LIHTC, Reserves, etc.)
2,394,200
Deferred Dev. Fee & Cash IN/OUT Before Escrow Refunds
1,380,445
Total Project Sources (before Refunds)
20,102,945
Escrow Refunds
898,057
Deferred Dev. Fee & Cash IN/OUT After Escrow Refunds
482,389
Type of Project New Construction - Affordable/No LIHTC, Acquisition
Interest Rate
6.00%
MIP
0.25%
Construction Period/Cost Cert. (2 mos) 16
Amortization Term (years / months) 40
480
Underwriting Criteria
Standard UW (<$125M)
HUD Loan Limit
Replacement Cost
INCOME & EXPENSE RECAP
Vacancy Assumptions
Residential Vacancy Rate
3.00%
Commercial Vacancy Rate
20.00%
Income & Expense
$/unit Total
Effective Residential & Other Income 15,109
1,813,046
Operating Expenses (Full Taxes) 5,004
600,522
Replacement Reserves
300
36,000
Net Residential Income 9,804
1,176,524
Residential Expense Ratio
35.11%
Net Commercial Income
119,808
Total Net Operating Income 1,296,332
Add: PILOT Savings (year 1)
0
Add: Other CF Savings
0
If Ground Lease, Year 1 Ground Rent
0
Annual Debt Service (P&I + MIP)
(1,118,907)
Cash Flow after Debt Service
177,425
Actual DSC Ratio
1.159
Term Sheet
4/10/2025
Page 2 of 3
Serenity Village @ 3 Mile Creek
PROJECT BUDGET
HUD Costs
$/unit Total
Hard Costs & FF&E
95,505 11,460,580
Purchase Price
19,952 2,394,200
Construction Period Interest & MIP
6,123 734,774
Architect & Other Fees (Survey, Permits, etc.)
14,292 1,715,000
Taxes & Insurance During Construction
0 0
Title & Recording
0 0
FHA Exam Fee (Application) 0.30%
408 48,985
FHA Inspection Fee 0.50%
680 81,642
AGM Financing Fee 1.00%
1,361 163,283
GNMA Fee
33 4,000
Lender Legal (IE & FE)
417 50,000
Borrower's Legal, Org., & Audit
0 0
Third Party Fees (Appsl., Mkt. Study, Env., etc.)
488 58,500
Mortgageable Developer Fee, if Applicable
0 0
Non-Mortgageable Developer Fee, if Applicable
14,158 1,699,000
Non-Mortgageable Builder Profit, if BSPRA
4,583 550,000
Additional Non-Mortgagable Costs
0 0
Total Project Costs
158,000 18,959,964
Escrows
HUD
Operating Deficit (LOC or Cash)
489,849
HUD
Working Capital/Contingency (LOC or Cash)
653,132
Total Escrows
1,142,981
HUD Total Costs & Escrows 17,853,945
Project Total Costs & Escrows 20,102,945
Initial Deferred Developer's Fee & Equity 1,380,445
Less: Escrow Refunds
898,057
Final Deferred Developer's Fee & Equity 482,389
Term Sheet
4/10/2025
Page 3 of 3
Serenity Village @ 3 Mile Creek
NOTES / COMMENTS / QUESTIONS
1 Assumed 40 yr PILOT
2 100% PB Sec8 (incl. FYI & VA vouchers)
3 45L Tax Credits may be in play
4 Need at least a 15 year contract on the Section 8
