2009 Supplemental - CWS Capital Partners LLC

Transcription

CW
rs
l
P
a
a
t
i
r
p
t
a
n
C
e
S
Financial
smart
guidance
Investing
turbulent
today’s
for a
for
economy
landscape
hering the cycle
t
a
e
w
A n n ua l R e p o rt
CWS C
ta
api
rt n
l Pa
ers
YRS
40
2009 Ann
ua l
Re p
ort
Contents
Region 1. Austin .................................. 1
Region 2. Dallas/Fort Worth . ............... 10
Region 3. San Antonio ......................... 29
Region 4. Houston ............................... 36
Region 5. Atlanta ................................. 41
Region 6. Charlotte . ............................ 46
Region 7. Raleigh ................................ 53
Region 8. Denver ................................. 56
Region 9. Canada ................................ 61
R
Austin
e
g
f e a t u r e d
i
o
n
p r o p e r t i e s
The Block on 23rd*
The Block on 25th*
The Block on 28th*
The Block on Leon*
The Block on Pearl*
The Block on Rio Grande*
The Marquis at Barton Creek
The Marquis at Caprock Canyon*
The Marquis at Ladera Vista
The Marquis at Great Hills*
The Marquis at Tree Tops
Northwest Hills Apartments
Riverside Place*
Riverside Square*
Windsor at Barton Creek*
Financial
guidance
for a
turbulent
economy
smart
Investing
for
today’s
landscape
* Due to closely held ownership or less than 12 months of
activity since date of purchase, financial pages for certain
assets have not been included in the Supplemental Report.
Contact CWS Investor Relations for more information.
CWS C
ta
api
rt n
l Pa
ers
.PG.
1
2009 Ann
ua l
Re p
ort
M acr o o v e rv i e w
S o u r c e s
Austin Investor Interests, Austin Business Journal, Business Week
Four Points
• The Marquis at Ladera Vista
• The Marquis at Great Hills
Coxville
183
2222
Greenshores
360
2244
71
2222
290
290
Austin
Hyde
Park
275
• The Block on Rio Grande
• The Block on 28th
The Block on Leon • • The Block on 25th
The Block on 23rd •
University of
The Block on Pearl •
Texas–Austin
• Riverside Square
• Riverside Place
• Windsor at Barton Creek
35
Central
Business District
1
The Austin-San Marcos, TX MSA employment growth sustained a 0.9% loss in
jobs in 2009. Despite the slowdown, Austin
compared favorably to the overall national
job loss. During 2009 approximately 7,500
new apartments were added to the existing inventory, which along with job losses
caused market-wide occupancy to drop
from 88.94% at the end of 2008 to 88.74%
at the end of 2009. Despite the job losses,
Austin absorbed 6,500 units in 2009 helping to keep occupancy from falling significantly. Rents fared much worse, suffering
a 5.2% drop. It is anticipated that Austin
may have flat to slightly positive job growth
in 2010. 1,500 new apartment units will be
183
71
delivered in 2010, substantially lower than
the previous few years. 2010 will likely be
about growing market occupancy and finding a rent bottom. The long-term fundamentals look favorable for Austin. Austin
ranks as the second strongest economy in
the nation according to Business Week.
Austin’s high quality of living, highlyeducated workforce and availability of office space should help Austin to continue
to grow faster than the national average.
There should be very few new apartments
developed in 2010 and 2011. It is anticipated that 2010 will be a difficult year in
Austin, after which the supply and demand
fundamentals point to a strong rebound.
.PG.
C W S C a p i t a l P a r t n e r s LL C
Dessau
• The Marquis at Caprock Canyon
• The Marquis at Tree Tops
35
• Northwest Hills Apartments
Travis
• The Marquis at Barton Creek
71
734
2
2009 Supplemental Report
Au s t i n: 4t h Qua rt e r
Metro Highlights
.PG.
3
N o rt h w e s t au s t i n
Submarket Discussion
The northwest Austin submarket continues to be one
of the strongest performing submarkets thanks to its
abundant Class A office space and the area’s attractive quality of life. The communities of The Marquis
at Ladera Vista, The Marquis at Caprock Canyon,
Northwest Hills, and The Marquis at Tree Tops reside in the northwest region. Well known employers
such as IBM, J.J. Pickle Research Campus, Seton
Northwest Hospital, 3M, SBC Communications,
Apple, National Instruments, and Advanced Micro
Devices are all located within the region. The area has
a highly skilled workforce and includes the “Golden
Triangle” highway system. The area’s high quality
of living can be attributed to excellent schools, quality entertainment and a wide selection of fine dining
and retail. The Arboretum includes over one million
square feet of retail and 600,000 square feet of office space in addition to numerous hotels. Some of the
retail includes Saks Fifth Avenue, Whole Foods, Pottery Barn, Williams Sonoma, Barnes & Noble, Pier
One Imports, and numerous national, regional, and
local retailers. The Domain is a new development catering to Austin’s affluent population with high end
retailers such as Barney’s New York, Tiffany & Co.,
and the city’s first Neiman Marcus. The development
includes popular restaurants and social settings. The
additional development phases call for three million
square feet of office space, three upscale hotels, and
3,400 residences over the next ten years. It is projected that 15,000 employees will eventually work in
the retail or office space at The Domain.
The northwest Austin submarket added 1,512
units in 2009. The area’s occupancy rate is 91.4%,
while the overall market occupancy is 88.7%. There
are 438 new units under construction in the submarket with an estimated 2010 completion date. There
are no new apartment construction starts anticipated
in 2010. The area is one of Austin’s premier locations
to live and work so the long-term outlook for the submarket is very favorable.
.PG.
4
t h e m a r qu i s at l a d e r a v i s ta
Earnings Overview
Actual
Earnings
Year 2009
2009 Statement of Income
& 2010 Earnings Projection
Projected
Earnings
Year 2010
Net Rental Income
$2,326,247
$ 2,177,384
Other Income 253,294 250,398
Interest Income
515
0
Total Revenues
$2,580,056
$ 2,427,782
Payroll & Benefits
$ (262,111)
$ (259,383)
Marketing & Advertising (70,550) (69,922)
Turnover Costs (50,417) (48,321)
Repairs & Maintenance (38,406) (43,598)
Professional Services (47,736) (48,907)
General & Administrative (55,150) (68,913)
Utilities (182,178) (167,106)
Insurance (51,707) (50,904)
Property Taxes (415,818) (423,254)
Management Expenses (81,379) (76,733)
Total Operating Expenses
$(1,255,452)
$(1,257,042)
Net Operating Income
$1,324,604
$ 1,170,740
Debt Service (Principal & Interest) $ (914,541)
$ (914,541)
Capital Expenditures (132,898) (165,801)
Non-Operating Expenses (52,079) (62,906)
Cash from/(to) Lender
Reserves (Net) 22,093
0
Cash from/(to) Reserves (247,179) 122,508
Distributable Cash Flow
$
0
$ 150,000
Limited Partner Share of
$
0
$ 150,000
Projected
Earnings
Year 2010
Net Operating Income / (Loss)
$1,324,604
$1,170,740
Mortgage Interest (863,142) (860,437)
Estimated Depreciation (559,151) (562,166)
Amortization (58,693) (58,561)
Projected Taxable Income / (Loss)
$ (208,461)
$ (373,329)
Property Highlights
2009
Limited Partner Return on
Outstanding Investment (ROI) Average Economic Occupancy
Average Physical Occupancy
Average Market Rent $
Loan Information
Lender
Loan Balance
as of 12/2009
2009
Projected
Taxable
Income
Interest Rate
5.85%
5.07%
2010
Projected
Taxable
Income
2010
0.00%
78.45%
94.32%
1,103
$
Freddie Mac
$11,560,000 Freddie Mac 3,429,365 Ownership
Percentage
Allocations by Tenant-In-Common
Actual
Earnings
Year 2009
Partnership Taxable Income / (Loss)
2009 Actual
Limited
Partner
Distributions
4.23%
85.01%
92.44%
953
Maturity Date
April, 2011
April, 2011
2010 Projected
Limited
Partner
Distributions
Stonegate Lewisville Assoc.
69.86200%
$ (114,275)
$ (229,455)
$ 0 $104,793
CWS Jollyville Assoc, Ltd.
30.13800% (94,186) (143,874) 0 45,207
$ (208,461)
$ (373,329)
$ 0 $150,000
Year 2009 Actual
Year 2010 Projected
( in millions )
( in millions )
Total Revenues $
2.58
Total Revenues $
2.43
Operating Expenses $
1.26
1.26
Debt Service $
0.91
Debt Service $
0.91
Other Sources / Uses $
0.18
0.23
Distributions
$
0.00
Distributions
$
0.15
.PG.
C W S C ap i t a l P a r t n e r s LL C
5
2 0 0 9 S u pp l e m e n t a l R e p o r t
T h e M ar qu i s at t r e e t o p s
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Net Rental Income
$3,187,002
$ 2,959,734
Other Income 236,032
221,827
Interest Income
5,026
0
Total Revenues
$3,428,060
$ 3,181,561
Payroll & Benefits
$ (325,609)
$ (316,308)
Marketing & Advertising
(69,171)
(69,916)
Turnover Costs (48,470)
(37,325)
Repairs & Maintenance (34,947)
(34,060)
Professional Services (70,924)
(79,833)
General & Administrative
(56,481)
(67,754)
Utilities (172,860) (172,752)
Insurance
(71,156)
(70,920)
Property Taxes (594,076) (613,084)
Management Expenses (106,830)
(99,767)
Total Operating Expenses$(1,550,525)
$(1,561,719)
$1,877,535
$ 1,619,843
Debt Service
(Principal & Interest)
$(1,678,899)
$(1,678,899)
Reserves (Net) 291,307 90,365
Cash from/(to) Reserves (165,086)
211,732
$
0
$
0
$
0
$
0
Projected
Earnings
Year 2010
$ 1,877,535
$ 1,619,843
Mortgage Interest (1,678,899)(1,678,899)
Amortization
(60,435) (60,270)
Projected Taxable Income / (Loss) $ (924,560)
$(1,174,376)
Property Highlights
2009
Average Market Rent
$
Loan Information
Lender
Freddie Mac
Loan Balance
as of 12/2009
Interest Rate
5.71%
2010
Projected
Taxable
Income
2010
0.00%
79.97%
93.37%
1,384 $
$29,000,000 2009
Projected
Taxable
Income
Ownership
Percentage
Actual
Earnings
Year 2009
2009 Actual
Limited
Partner
Distributions
CWS Treetops-Bartons TVL, LP
CWS Treetops-Sunset TVL, LP
CWS Treetops-Lodge TVL, LP
CWS Treetops-Lamplighter TVL, LP
CWS Treetops-Marietta TVL, LP
CWS Treetops-Pooles TVL, LP
Autrey Tree Tops LLC
Private Trust*
Private Trust*
0.00%
75.25%
92.21%
1,366
Maturity Date
December, 2014
2010 Projected
Limited
Partner
Distributions
14.68873%
$ (121,238)
$ (157,933)
$ 0 $ 0
8.72078% (101,134) (122,920) 0 0
15.29300% (166,994) (205,199) 0 0
14.79562% (170,781) (207,743) 0 0
20.09386% (247,865) (298,063) 0 0
10.17433% (98,052) (123,469) 0 0
10.61603%
2,108 (24,412) 0 0
2.21167%
439 (5,086) 0 0
3.40598% (21,043)
(29,551) 0 0
* Note: Depreciation is not included as depreciable basis is not known
$ (924,560)
$ (1,174,376)
$ 0 $ 0
CWS Treetops - Lamplighter TVL, LP *** (6,348)
(7,634) 0 0
CWS Treetops, LP *** (131,872) (162,164) 0 0
Tree Tops LG One, LP *** (121,640) (149,505) 0 0
*** Includes distributions from limited partner interest in all above listed partnerships
Year 2009 Actual
Year 2010 Projected
( in millions )
( in millions )
Total Revenues $
3.43
Total Revenues $
3.18
1.55
1.56
Debt Service $
1.68
Debt Service $
1.68
0.32
0.24
.PG.
6
n o rt h w e s t h i l l s a pa rt m e n t s
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Net Rental Income
$2,602,547 $ 2,370,535
Other Income 326,191 335,280
Interest Income
3,329 0
Total Revenues
$2,932,068 $ 2,705,815
Payroll & Benefits
$ (326,016) $ (355,569)
Marketing & Advertising (62,890)
(66,317)
Turnover Costs
(42,779)
(43,569)
Repairs & Maintenance
(52,821)
(57,486)
Professional Services
(47,891)
(49,500)
(58,759)
(88,213)
Utilities (263,242) (265,664)
Insurance
(58,744)
(58,956)
Property Taxes (446,281) (453,425)
(85,674)
$(1,451,963) $(1,524,374)
$1,480,105 $ 1,181,441
Debt Service (Principal & Interest) $(1,080,298) $(1,039,381)
Capital Expenditures
(77,053) (185,321)
Non-Operating Expenses (80,255)
(99,966)
Reserves (Net) (82,125)
0
Cash from/(to) Reserves 130,289 293,228
$ 290,663 $ 150,000
$ 290,663 $ 150,000
Projected
Earnings
Year 2010
$1,480,105 $1,181,441
$ 174,967 $ (76,624)
Property Highlights
2009
Average Physical Occupancy Average Market Rent $
Loan Information
Lender
Loan Balance
as of 12/2009
2009
Projected
Taxable
Income
Interest Rate
4.98%
5.02%
2010
Projected
Taxable
Income
2010
5.98%
81.25%
93.72%
850 $
Freddie Mac
$14,530,356
Freddie Mac 1,750,683
Ownership
Percentage
Actual
Earnings
Year 2009
2009 Actual
Limited
Partner
Distributions
CWS Northwest Hills, LP
CWS VOT SC Northwest Hills, LP
Private Trust*
Private Trust*
Private Trust*
Private Trust*
Private Trust*
3.09%
74.05%
92.00%
850
Maturity Date
October, 2010
October, 2010
2010 Projected
Limited
Partner
Distributions
41.94236%
$ (89,733)
$(195,256)
$ 121,911 $ 62,914
5.55954% 6,046 (7,941) 16,160 8,339
6.52530% 32,150 15,733 18,967 9,788
5.90050% 29,071 14,226 17,151 8,851
21.69766%106,903 52,313 63,067 32,546
7.49810% 36,943 18,078 21,794 11,247
10.87653% 53,588 26,223 31,614 16,315
$ 174,967 $ (76,624)
$290,663 $150,000
Year 2009 Actual
Year 2010 Projected
( in millions )
( in millions )
Total Revenues $
2.93
Total Revenues $
2.71
1.45
1.52
Debt Service $
1.08
Debt Service $
1.04
0.16
0.29
Distributions
$
0.29
Distributions
$
0.15
.PG.
C W S C ap i t a l P a r t n e r s LL C
7
2 0 0 9 S u pp l e m e n t a l R e p o r t
s o u t h w e s t au s t i n
The southwest submarket is one of the liveliest submarkets due to its proximity to downtown and its hill
country setting. The communities of The Marquis at
Barton Creek, Riverside Square and Riverside Place
are located within this area. Well known employers
such as Motorola, the University of Texas at Austin,
St. Edward’s University, Sematech, Applied Materials, AMD, and Barton Creek Square Mall are located in the southwest. The region’s quality of life is
highlighted by the easy access to the downtown cultural centers, Zilker Park, the Town Lake hike and
bike trail, shopping, restaurants, and employment.
Barton Creek Square Mall includes 180 retailers and
is anchored by Nordstrom.
The southwest Austin submarket added 276
units in 2009 with an additional 436 units expected
in 2010. The area’s occupancy rate is 92.9%, while
the overall market occupancy is 88.7%. While the
occupancy is much stronger than the overall market,
increased competition citywide will hold back rents
until the overall market reaches a higher occupancy.
The area is one of Austin’s premier locations to live
and work so the long-term outlook for the submarket
is very favorable.
.PG.
8
T h e M ar qu i s at b art o n cr e e k
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Net Rental Income
$3,113,263 $ 2,901,837
Other Income 237,732 223,087
Interest Income
2,382 0
Total Revenues
$3,353,377 $ 3,124,924
Payroll & Benefits
$ (310,876)
$ (298,288)
(96,022)
(43,192)
(32,086)
(49,160)
(44,124)
(52,315)
(79,553)
Utilities (186,249) (203,399)
Insurance
(63,039)
(64,272)
Property Taxes (633,910) (655,629)
Homeowners Association Dues
(37,290)
(37,296)
(97,912)
$(1,644,387)
$(1,651,772)
$1,708,990
$ 1,473,152
Debt Service (Principal & Interest) $(1,625,800)
$(1,413,884)
Lender Group Interest (250,320) (237,600)
Capital Expenditures (110,735)
(90,489)
Non-Operating Expenses
(91,283)
(90,848)
Unpaid Lender Group Interest
73,309 50,020
Reserves (Net)
(13,779)
0
Loan Extention Fees
0 (196,000)
$
0
$
0
$
0
$
0
Projected
Earnings
Year 2010
$ 1,708,990
$ 1,473,152
Mortgage Interest(1,625,800)(1,413,884)
Projected Taxable Income / (Loss) $(1,064,495)
$(1,001,199)
Property Highlights
2009
Average Market Rent
$
Loan Information
Lender
Loan Balance
as of 12/2009
2009
Projected
Taxable
Income
2010
0.00%
72.00%
92.79%
1,441 $
Interest Rate
Freddie Mac
$ 20,399,000
Barton Creek
Lender Group 2,501,044 Ownership
Percentage
Actual
Earnings
Year 2009
2010
Projected
Taxable
Income
Maturity Date
7.92%
August, 2010
9.50%
August, 2010
2009 Actual
Limited
Partner
Distributions
Creekside-Estancia LP
Shadowood-Estancia LP
Suburban Woods-Estancia LP
Private Trust*
Private Trust*
Private Trust*
Private Trust*
0.00%
67.78%
92.10%
1,427
2010 Projected
Limited
Partner
Distributions
42.25219% $ (555,747)
$ (529,003)
$ 0 $ 0
26.44230% (288,176) (271,439) 0 0
10.43338% (124,190) (117,586) 0 0
3.24536%
(33,456) (31,402) 0 0
6.85871% (24,485) (20,144) 0 0
9.32251%
(33,281) (27,380) 0 0
1.44555%
(5,161)
(4,246) 0 0
$(1,064,495)
$(1,001,199)
$ 0 $ 0
Year 2009 Actual
Year 2010 Projected
( in millions )
( in millions )
Total Revenues $
3.35
Total Revenues $
3.12
1.64
1.65
Debt Service $
1.88
Debt Service $
1.65
0.20
0.18
.PG.
9
Dallas/
Fort Worth
R
e
g
f e a t u r e d
i
o
n
p r o p e r t i e s
Brooks on Preston*
The Marquis at Bellaire Ranch
The Marquis on Cedar Springs
The Marquis on Gaston*
Marquis at Lantana
The Marquis on McKinney
The Marquis at Park Central
The Marquis at Riverchase*
The Marquis at Silver Oaks*
The Marquis of State Thomas
The Marquis at Stonebriar*
The Marquis at Stonegate
The Marquis at Texas Street
The Marquis at Turtle Creek
The Marquis at Waterview
The Marquis at West Village
The Marquis at Willow Lake
The Park at Fox Trails*
The Park on Spring Creek*
Financial
guidance
for a
turbulent
economy
smart
Investing
for
today’s
landscape
CWS C
ta
api
rt n
l Pa
ers
.PG.
10
2009 Ann
ua l
Re p
ort
S o u r c e s
M/PF Research, Bureau of Labor Statistics
• The Park at Fox Trails
• The Park on Spring Creek
• The Marquis75at Stonebriar
• Brooks on Preston
35E
• The Marquis at Silver Oaks
• Marquis at Lantana
114
287
• The Marquis at Riverchase
Carrollton
Dallas
Fort Worth
International
Airport
35W
• The Marquis
at Waterview
•
77
635
The Marquis
at Park Central
Garland
Love Field
• The Marquis on Cedar Springs
Airport
Mesquite
183
820
820
12
360
Fort
Worth
35E
Dallas
• The Marquis at West Village
• The Marquis at Turtle Creek
• The Marquis on McKinney
• The Marquis at Texas Street
• The Marquis on Gaston
• The Marquis of State Thomas
30
• The Marquis at Stonegate
• The Marquis at Bellaire Ranch
• The Marquis at Willow Lake
408
20
T he Dallas-For t Wor t h, T X MSA
(“DFW”) apartment market struggled
throughout 2009 with net move-outs (880
units year over year) occurring at the same
time that more than 18,000 units of new
supply were delivered in the metro. Dramatic job loss was a key factor in resident
move-outs. According to preliminary Bureau of Labor Statistics (BLS) data, DFW
lost 50,700 (1.7%) jobs through the period
ending November 2009. Further evidence
of the curious times of the day, the second
most frequently cited reason for move-out
was home purchase. It is unusual to have
job loss related move outs occurring at the
45
same time as home purchase related move
outs. While 10,736 units are slated for
completion through December 2010, only
five apartment communities broke ground
during the second half of 2009 (compared
to 37 starts between July 2008 and March
2009). Leading economists predict that
annual employment in DFW bottomed in
3Q2009. After delivering 18,029 units for
the period ending 4Q2009, the metro occupancy averaged 88.8%.
Of the metroplex’s 18,029 deliveries,
most were concentrated in Uptown Dallas,
North Fort Worth (Alliance Airport vicinity), Carrollton/Farmer’s Branch and West
.PG.
20
11
M acr o o v e rv i e w (C o n t i n u e d)
S o u r c e s
M/PF Research, Bureau of Labor Statistics
Plano. Lease-up velocity at these newer
properties has been rapid which means
that if this pace continues, we should
see a fairly significant rebound in occupancy once these completions are leased
up. This is because permitting activity is
down substantially from previous years. In
fact, with current permitting activity only
representing 25% of the peak year’s activity, the delivery pull-back should be relatively quick and dramatic.
The year over year move-outs equated
to 880 units. However, quarterly (4Q2009)
demand registered at a positive 1,520
units. Interestingly, the top tier product
posted impressive demand indicating that
competing lease-ups did not compete well
against other 2000’s era product. Instead,
middle and lower tier properties fared
poorly despite deep rent cuts that have
widened the price gap between newer and
older properties.
With the weak economy and significant
new supply, rents have fallen 1.3% for the
period between September and December 2009 and 2.6% for the annual period
ending December 2009. This ref lects the
weakest rent performance for the metroplex
in 15 years. However, at a negative 2.6%
effective rent posting, DFW held up better than the national average which posted
negative 4.1%.
.PG.
12
D a l l a s/ F o rt W o rt h : 4t h qua rt e r
Metro Highlights
.PG.
13
uptown dallas
Uptown Dallas has emerged as one of the strongest
residential rental niche markets in the DFW metroplex. Uptown Dallas, part of the larger in-town rental
submarket, persistently ranks as one of the top tier submarkets in terms of absorption, occupancy and rental
rates. Uptown offers urban living at its finest with every
amenity possible for the cosmopolitan, on-the-go lifestyle. The Marquis at Turtle Creek, The Marquis on
McKinney, The Marquis on Gaston, The Marquis on
Cedar Springs, The Marquis at Texas Street, and The
Marquis at West Village are all within this dynamic
neighborhood. This submarket is located just north of
the Dallas Central Business District and features lavish
high-rises, multi-million dollar homes, luxury boutique hotels, restaurants, art galleries, bars, and some
of the finest specialty retail stores in all of Texas. Nearly
50 million square feet of office space is within a few
miles including the Trammell Crow Center, the Crescent Towers, and the Park Place Towers, all of which
command the highest office rents in the metroplex.
The Uptown area is seeing considerable new
supply but also registered its most robust quarterly
leasing performance in several years. As of 4Q2009,
occupancy in the Intown submarket was 89.0%. The
primary reason for the lackluster performance is
the extreme competition faced with new lease-ups.
747 units were delivered in this area over the last
year. The annual total demand equated to 370. This
strength in demand has come at the price of rents.
The annual same store rent growth for the area
registered a negative 8.0%. Looking out longer term,
replacement cost in the area has escalated rapidly
meaning even if land costs soften over the near term
and financing becomes available (unlikely), the cost
to build further competition would require rental
rates significantly higher than what is currently being achieved. Rents will need to rise rapidly in the
area before another wave of new supply is justifiable.
Further, development sites in the area are scarce.
.PG.
14
t h e mar qu i s at c e d ar s p r i n g s
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Actual
Earnings
Year 2009
Net Rental Income
$2,194,411 $ 2,049,622
Other Income 129,150 140,654
Interest Income
2,049 0
Total Revenues
$2,325,610 $ 2,190,276
Payroll & Benefits
$ (257,531)
$ (265,559)
(95,405)
(33,625)
(39,788)
(39,565)
General & Administrative (46,406)
(45,228)
Utilities (140,734) (150,325)
Insurance (52,904)
(53,316)
Property Taxes (446,275) (444,232)
Management Expenses
(74,123)
(69,608)
$(1,251,771)
$(1,237,664)
$1,073,840 $ 952,612
$ (957,774)
(73,223)
(79,536)
(90,756)
Cash from/(to) Reserves
76,629
169,139
$
0
$
0
$
0
$
0
$ 1,073,840
$
Mortgage Interest (785,424)
Estimated Depreciation (689,160)
Amortization (60,372)
$
Property Highlights
2009
Average Market Rent
$
Loan Information
Lender
Loan Balance
as of 12/2009
Interest Rate
2009
Projected
Taxable
Income
Ownership
Percentage
5.87%
2010
Projected
Taxable
Income
2009 Actual
Limited
Partner
Distributions
CWS Cedar Springs PV WB, LP
CWS Cedar Springs NB WB, LP
CWS Cedar Springs Pooles WB, LP
CWS Cedar Springs Bartons SC, LP
CWS Cedar Springs TLG SC, LP
CWS Cedar Springs Sunset SC, LP
CWS Cedar Springs Oakbrook, LP
CWS Cedar Springs CMHC, LLC
Private Trust*
952,612
(775,030)
(694,485)
(60,372)
(90,756)
(668,031)
2010
0.00%
79.29%
93.23%
1,103
$
Metropolitan Life
Insurance Company $13,300,868 Allocations by Tenant-In-Common
Projected
Earnings
Year 2010
0.00%
73.88%
92.00%
1,401
Maturity Date
October, 2011
2010 Projected
Limited
Partner
Distributions
22.14073%
$(137,089)
$(165,292)
$ 0 $0
16.65910% (55,467) (76,687) 0 0
6.12264% (34,361) (42,160) 0 0
7.70906% (33,988) (43,808) 0 0
8.11246% (43,031) (53,365) 0 0
10.45399% (67,826) (81,142) 0 0
11.77914% (73,071) (88,075) 0 0
12.31312% (88,943)(104,627) 0 0
4.70976% (6,875) (12,874) 0 0
* Note: Depreciation is not included as depreciable basis is not known $(540,652)
$(668,031)
$ 0 $0
CWS Cedar Springs PV WB, LP *** (50,194) (61,669) 0 0
***Includes distributions from limited partner interest in all above listed partnerships
Year 2009 Actual
Year 2010 Projected
( in millions )
( in millions )
Total Revenues $
2.33
Total Revenues $
2.19
1.25
1.24
Debt Service $
0.96
Debt Service $
0.96
0.19
0.16
.PG.
15
t h e mar qu i s o n mc k i n n e y
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Net Rental Income
$2,269,212 $ 2,097,896
Other Income 157,443 119,684
Interest Income
98 0
Total Revenues
$2,426,753 $ 2,217,580
Payroll & Benefits (256,201) (253,881)
Turnover Costs
(36,947)
(37,735)
(34,948)
(29,354)
(43,156)
Utilities (147,537)
(161,191)
Insurance
(54,725)
(55,116)
Property Taxes (466,772) (464,204)
Management Expenses
(76,985)
(70,752)
$(1,234,928)
$(1,250,498)
$1,191,825 $ 967,082
$ (873,560)
(88,520)
(33,010)
(56,502)
Reserves (Net)
2,983 0
51,500
$
0
$
0
$
0
$
0
Projected
Earnings
Year 2010
$1,191,825
$ 967,082
$ 37,281 $ (277,465)
Property Highlights
2009
Loan Balance
as of 12/2009
Interest Rate
Freddie Mac
$14,770,414
Libor + 2.35%
2009
Projected
Taxable
Income
2010
Projected
Taxable
Income
2010
0.00%
74.68%
93.11%
1,759 $
Loan Information
Lender
Ownership
Percentage
Actual
Earnings
Year 2009
2009 Actual
Limited
Partner
Distributions
McKinney Partners, LP
CWS McKinney Investors, LP
Private Trust*
0.00%
71.88%
91.58%
1,689
Maturity Date
July, 2011
2010 Projected
Limited
Partner
Distributions
17.14947%
$ (6,350)
$ (60,327)
$ 0 $ 0
71.67018%(34,010)(259,588) 0 0
11.18035% 77,640 42,451 0 0
$ 37,281
$(277,465)
$ 0 $ 0
Year 2009 Actual
Year 2010 Projected
( in millions )
( in millions )
Total Revenues $
2.43
Total Revenues $
1.23
2.22
1.25
Debt Service $
0.82
Debt Service $
0.87
0.22
0.15
.PG.
16
t h e mar qu i s o f s tat e t h o ma s
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Net Rental Income
$ 116,678 $ 2,292,025
Other Income
16,102 85,023
Interest Income
0 0
Total Revenues
$ 132,780 $ 2,377,048
Payroll & Benefits
$ (90,725) $ (305,552)
Turnover Costs
(1,331)
(21,381)
(20,547)
(508)
(50,760)
(8,781)
(39,718)
Utilities (22,716) (150,863)
Insurance
(583)
(48,300)
Property Taxes (35,838) (766,640)
Management Expenses
(5,381)
(71,311)
$(188,940) $(1,636,479)
$ (56,160) $ 740,569
Debt Service (Principal & Interest) $(100,787) $ (704,000)
(2,311)
(19,557)
(48,070)
$
0 $
0
$
0 $
0
Projected
Earnings
Year 2010
$ (56,160)
$ 740,569
Amortization
0 0
Projected Taxable Income / (Loss) $ ($418,360)
$($600,712)
Property Highlights
2009
Average Physical Occupancy Average Market Rent
Loan Information
Lender
Loan Balance
as of 12/2009
2009
Projected
Taxable
Income
2010
0.00%
0.00%
13.75% 63.74%
18.14% 74.60%
N/A
$ 1,420
Interest Rate
Bank of Texas, N.A. $22,544,578 LIBOR + 1.55%
Ownership
Percentage
Actual
Earnings
Year 2009
2010
Projected
Taxable
Income
2009 Actual
Limited
Partner
Distributions
Maturity Date
April, 2011
2010 Projected
Limited
Partner
Distributions
State Thomas Apartments LP Beg
90.44899%
$(378,402)
$(543,338)
$0 $0
Newport Greens LLC
9.55101% (39,958)
0 0 0
Franciscan Partners, LLC
9.55101%
0 (57,374)0 0
$(418,360)
$(600,712)
$0 $0
Year 2009 Actual
Year 2010 Projected
( in millions )
( in millions )
Total Revenues $
0.13
Total Revenues $
2.38
0.19
1.63
Debt Service $
0.10
Debt Service $
0.70
0.12
0.07
.PG.
17
t h e mar qu i s at t e x a s s t r e e t
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Net Rental Income
$3,127,987
$ 3,011,949
209,916
Interest Income
3,758
0
Total Revenues
$3,337,209
$ 3,221,865
Less:Payroll & Benefits
$ (385,246)
$ (385,684)
(57,282)
(44,522)
(59,193)
(72,361)
Utilities (153,786) (159,184)
Insurance
(65,411)
(65,748)
Property Taxes (99,580)
(98,141)
Management Expenses (104,899) ($103,256)
$(1,190,745)
$(1,217,039)
$2,146,464 $ 2,004,826
$(1,502,344)
(96,637)
5,663
Cash from/(to) Reserves 274,516
106,508
$ 629,037
$ 409,000
$ 629,037
$ 409,000
Projected
Earnings
Year 2010
$ 2,146,464
$2,004,826
Mortgage Interest 1,062,786 1,041,143
Projected Taxable Income / (Loss) $ 166,717 $
22,193
Property Highlights
2009
Loan Information
Lender
Loan Balance
as of 12/2009
FHLMC
2010
5.37%
71.93%
91.91%
1,200 $
Interest Rate
$21,867,139 2009
Projected
Taxable
Income
Ownership
Percentage
Actual
Earnings
Year 2009
4.75%
2010
Projected
Taxable
Income
2009 Actual
Limited
Partner
Distributions
CWS Texas Street, LP
CWS Texas Street-Quarry, LP
FG87-Texas Street, LLC
Private Trust*
Private Trust*
Private Trust*
Private Trust*
3.49%
69.26%
91.30%
1,200
Maturity Date
July, 2011
2010 Projected
Limited
Partner
Distributions
18.23043%
$(101,787)
$(128,134)
$ 114,676 $ 74,562
53.28094% 87,961 10,957 335,157 217,919
10.94431% 32,519 16,702 68,844 44,762
2.10169% 5,367 2,330 13,220
8,596
2.56306% 23,677 19,973 16,123
10,483
7.28181% 67,268 56,744 45,805 29,783
5.59776% 51,711 43,621 35,212 22,895
$ 166,717 $ 22,193
$629,037 $409,000
Year 2009 Actual
Year 2010 Projected
( in millions )
( in millions )
Total Revenues $
3.34
Total Revenues $
3.22
1.90
1.22
Debt Service $
1.50
Debt Service $
1.50
0.16
0.21
Distributions
$
0.63
Distributions
$
0.41
.PG.
18
t h e mar qu i s at t u rt l e cr e e k
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Net Rental Income
$1,338,060 $1,231,582
Other Income
94,415 87,989
Interest Income
(14)
0
Total Revenues
$1,432,461 $1,319,571
Payroll & Benefits
$ (150,349)
$ (152,063)
Turnover Costs (34,365) (31,281)
(17,702)
Utilities (104,455) (106,438)
Insurance (25,436) (25,620)
Property Taxes (253,184) (250,760)
$ (771,152)
$ (770,299)
$ 661,310 $ 549,273
Debt Service (Principal & Interest) $ (304,669) (347,865)
Reserves (Net)
3,252 0
43,819
$
0
$ 150,000
$
0
$ 150,000
Projected
Earnings
Year 2010
$ 661,310 $ 549,273
Amortization
1,944 (14,013)
(31,900)
(34,491)
Projected Taxable Income / (Loss) $ 295,304 $ 107,990
Property Highlights
2009
Average Market Rent
$
Loan Information
Lender
Loan Balance
as of 12/2009
2009
Projected
Taxable
Income
Freddie
Reference Bills
Rate + 1.55%
2010
Projected
Taxable
Income
2010
0.00%
3.71%
73.09% 68.35%
92.61%
91.12%
1,557 $ 1,532
Interest Rate
Freddie Mac
$6,331,839
Ownership
Percentage
Actual
Earnings
Year 2009
2009 Actual
Limited
Partner
Distributions
Maturity Date
June, 2012
2010 Projected
Limited
Partner
Distributions
CWS Royale-Franciscan, LP
87.62376%
$ 279,221 $115,090 $ 0 $ 131,436
CWS Royale-SW, LP
12.37624% 16,083 (7,099) 0 18,564
$295,304 $107,990 $ 0
$ 150,000
Year 2009 Actual
Year 2010 Projected
( in millions )
( in millions )
Total Revenues $
1.43
Total Revenues $
0.77
1.32
0.77
Debt Service $
0.30
Debt Service $
0.35
0.20
0.10
Distributions
$
0.00
Distributions
$
0.15
.PG.
19
t h e mar qu i s at w e s t v i l l a ge
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Actual
Earnings
Year 2009
Net Rental Income
$ 2,610,326
$ 2,447,318
Other Income
164,541
172,520
Interest Income
2,185 0
Total Revenues
$ 2,777,052
$ 2,619,838
Payroll & Benefits
$ (232,454)
$ (257,542)
(95,904)
(98,894)
Turnover Costs
(53,578)
(48,097)
(39,268)
(33,826)
(87,202)
(50,723)
(50,622)
Utilities (141,937) (161,444)
Insurance
(48,827)
(51,845)
Property Taxes (562,766) (553,912)
Management Expenses
(87,102)
(81,460)
$(1,424,133)
$(1,424,844)
$ 1,352,919
$ 1,194,994
$(1,332,430)
(83,514)
(42,516)
(42,398)
93,897 263,349
$
21,245
$
0
$
21,245 $
0
$ 1,352,919 $ 1,194,994
Mortgage Interest (1,109,901) (1,097,601)
Amortization
(94,692)
(74,272)
(42,516)
(42,398)
$ (727,444)
Property Highlights
2009
Outstanding Investment (ROI)
Average Economic Occupancy
Average Market Rent
$
Loan Information
Lender
Loan Balance
as of 12/2009
2009
Projected
Taxable
Income
Ownership
Percentage
Interest Rate
CWS Village Residential, LP
100.00000%
Year 2009 Actual
$(602,355)
$(602,355)
2009 Actual
Limited
Partner
Distributions
$(727,444)
$(727,444)
Year 2010 Projected
( in millions )
6.01%
2010
Projected
Taxable
Income
$21,245 $21,245 ( in millions )
Total Revenues $
2.78
Total Revenues $
2.62
1.42
1.42
Debt Service $
1.24
Debt Service $
1.33
0.19
0.13
Distributions
$
0.02
Distributions
$
0.00
.PG.
20
2010
2.25%
0.00%
74.35% 71.03%
92.80%
91.81%
1,840
$ 1,806
Metropolitan Life
Insurance Company $18,388,320 Allocations by Tenant-In-Common
Projected
Earnings
Year 2010
Maturity Date
June, 2013
2010 Projected
Limited
Partner
Distributions
$0
$0
N o rt h a n d N o rt h w e s t D a l l a s S u b u r b s
The North Dallas area encompasses all submarkets
north of Uptown. The North and Northwest Dallas
suburbs have grown rapidly during the past decade
due to the general demographic shift north and west
of central Dallas. The communities of The Marquis
at Waterview, Brooks on Preston, The Marquis at
Park Central, and Marquis at Lantana all reside in
this region. Roadways here include the Dallas North
Tollway, Central Expressway, LBJ Freeway, and
George Bush Freeway. Numerous office parks including Park Central, the Golden Corridor, Galleria
Area, Galatyn Park, and Legacy are located within
this area. The region’s quality of life is quite high
due to high caliber schools, recreation, and the finest shopping in the entire DFW region. Northpark,
Grapevine Mills, The Galleria, and Collin Creek Mall
are just a few of the popular shopping destinations in
the area. Also, some of Dallas’s most aff luent areas
are included here. Key CWS submarkets in north
Dallas are: Richardson, Plano, Near North Dallas,
Valley Ranch and Northeast Tarrant County. As of
4Q2009, the occupancy average for Richardson was
90.5%. Rents averaged $914, with same store rents
down 5.0% as the submarket processed new supply
and renter losses to single-family homes. Plano’s average occupancy was 88.2%. Rents averaged $880,
with same store rents down 3.0%. This performance
has held up surprisingly well given the 3,993 units
delivered over the 12-month period ending 4Q2009.
The average occupancy for Near North Dallas was
89.9%. Rents averaged $859, with same store rents
down 6.2% mostly due to these upper tier residents
becoming first time home buyers taking advantage
of current tax credits. Valley Ranch’s gross occupancy average was 91.4%. Rents averaged $946, with
same store rents down 2.2%. The average occupancy for Northeast Tarrant County was 91.3%. Rents
averaged $874, with same store rents down 1.9%.
.PG.
21
t h e m a r qu i s at pa r k c e n t r a l
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Net Rental Income
$ 3,492,983 $ 3,177,603
Other Income
269,795 279,414
Interest Income
1,552 0
Total Revenues
$ 3,764,330 $ 3,457,017
Payroll & Benefits
$ (366,829)
$ (387,117)
(97,497) (101,481)
Turnover Costs
(73,917)
(63,820)
(47,543)
(40,674)
(83,627)
(81,214)
(53,433)
(65,712)
Utilities (237,341) (235,866)
Insurance
(81,231)
(82,104)
Property Taxes (687,265) (695,647)
Management Expenses
(117,806) (108,211)
$(1,846,488)
$(1,861,845)
$ 1,917,842 $ 1,595,172
$ (969,282)
(32,447)
(97,490)
Reserves (Net)
(72,661)
0
(173,732)
106,293
$ 334,000 $ 417,600
$ 334,000 $ 417,600
Projected
Earnings
Year 2010
$ 1,917,842 $ 1,595,172
Amortization
(75,201)
(51,371)
(32,447)
(97,490)
Projected Taxable Income / (Loss) $ 752,754 $ 228,487
Property Highlights
2009
Average Market Rent
$
4.00%
5.00%
71.33% 64.88%
91.56%
90.22%
1,325 $ 1,325
2010
Loan Information
Lender
Loan Balance
as of 12/2009
Interest Rate
Maturity Date
Freddie Mac
$19,595,423 Libor + 1.4%
March, 2012
2009
Projected
Taxable
Income
Ownership
Percentage
Actual
Earnings
Year 2009
2010
Projected
Taxable
Income
2009 Actual
Limited
Partner
Distributions
CWS HCN Park Central, LP
CWS HCM Park Central, LP
CWS LM Park Central, LP
CWS Park Marquis, LP
Private Trust*
Private Trust*
Private Trust*
2010 Projected
Limited
Partner
Distributions
30.82106%
$185,096 $ 23,512
$102,942 $128,709
16.82138%122,480 34,291 56,183 70,246
15.55097%102,108 20,580 51,940 64,941
19.53635% 82,904 (19,519) 65,251 81,584
3.49503% 52,651 34,327 11,673 14,595
11.64587%175,438 114,383 38,897 48,633
2.12934% 32,077 20,914 7,112 8,892
$752,754 $228,487 $334,000 $417,600
CWS Park Marquis, LP*** 16,860 3,469 8,531 10,667
*** Includes distributions from limited partner interest in CWS HCN Park Central, LP, CWS HCM Park Central, LP, and CWS LM Park Central, LP
Year 2009 Actual
Year 2010 Projected
( in millions )
( in millions )
Total Revenues $
3.76
Total Revenues $
3.46
1.85
1.86
Debt Service $
0.88
Debt Service $
0.97
0.46
0.31
Distributions
$
0.33
Distributions
$
0.42
.PG.
22
t h e mar qu i s at wat e rv i e w
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Net Rental Income
$5,856,149 $ 5,531,845
Other Income
601,689 597,149
Interest Income
2,086 0
Total Revenues
$6,459,924 $ 6,128,994
Payroll & Benefits
$ (560,514)
$ (574,747)
(94,245)
(95,745)
Turnover Costs (156,993) (162,355)
(95,438)
(141,169)
Utilities (469,527) (461,722)
Insurance (117,419) (118,068)
Property Taxes (1,096,617) (1,100,535)
$(3,063,489)
$(3,102,675)
$ 3,396,435 $ 3,026,319
Debt Service (Principal & Interest) $( 2,107,565)
$(2,358,211)
Reserves (net)
224
706
74,390
$ 424,720 $ 320,000
$ 424,720 $ 320,000
CWS Crystal Lake-Waterview, LP
CWS Diamond Valley-Waterview, LP
CWS Friendly Village-Waterview, LP
CWS Palm Valley-Waterview, LP
CWS Shadow Hills-Waterview, LP
Southpac I, LP
San Antonio FB II LP
CWS Sunset-Waterview, LP
CWS Univ Winterhaven-Waterview, LP
Private Trust*
Year 2009 Actual
Property Highlights
2009
Average Market Rent
$
Loan Information
Lender
Loan Balance
as of 12/2009
Fannie Mae
5.97%
2010
Projected
Taxable
Income
2010
4.00%
75.01%
94.70%
1,232 $
Interest Rate
$ 34,819,000 2009
Projected
Taxable
Income
2009 Actual
Limited
Partner
Distributions
3.01%
70.97%
91.84%
1,230
Maturity Date
May, 2013
2010 Projected
Limited
Partner
Distributions
4.54916%
$(20,356)
$ (36,657)
$ 19,321 $ 14,557
5.75630%(11,927) (32,554) 24,448 18,420
22.11485%(43,348)(122,596) 93,926 70,768
18.26564%(18,999) (84,453) 77,578 58,450
6.23707% 27,850 5,500 26,490 19,959
4.35581% 42,945 27,336 18,500 13,939
4.35581% 42,945 27,336 18,500 13,939
15.25529% (1,134) (55,801) 64,792 48,817
16.70848%(59,045)(118,920) 70,964 53,467
2.40158% 23,678 15,072 10,200 7,685
$(17,390)
$(375,737)
$424,720
$320,000
Year 2010 Projected
( in millions )
( in millions )
Total Revenues $
6.46
Total Revenues $
3.06
3.10
Debt Service $
2.11
Debt Service $
2.36
0.64
0.42
Distributions
$
0.42
Distributions
$
0.32
6.13
.PG.
Projected
Earnings
Year 2010
$3,396,435 $ 3,026,319
Estimated Depreciation (1,003,319) (1,022,237)
Amortization (113,654) (113,654)
$ (375,737)
Ownership
Percentage
Actual
Earnings
Year 2009
23
s o u t h w e s t f o rt w o rt h
Southwest Fort Worth is one of the most prestigious
locations in the DFW region and home to the Colonial Country Club and Texas Christian University.
The Marquis at Stonegate, The Marquis at Bellaire
Ranch and The Marquis at Willow Lake are all situated along Hulen Street between Interstate 20 to the
south and Interstate 30 to the north. Southwest Fort
Worth is a likely destination for residents looking for
well-planned neighborhoods, quality schools and the
finest shopping and dining available in all of Fort
Worth. The region’s quality recreational amenities
include the Fort Worth Zoo, Botanical Gardens and
the Trinity River Trails which are perfect for biking,
walking or rollerblading. The district is also home to
the Amon Carter Art Museum of Fort Worth. Prominent Fort Worth employers such as Lockheed Martin, Pier 1 Imports and RadioShack are within a few
miles of each community. Southwest Fort Worth is
feeling some competition from three lease-up properties in the submarket. Southwest Fort Worth occupancy rates were 91.2% as of 4Q2009. Same store
rents fell by 1.7% with average rents landing at $708.
.PG.
24
t h e mar qu i s at b e l l a i r e ra n c h
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Net Rental Income
$ 4,024,238 $ 3,924,714
Other Income
523,063
444,123
Interest Income
10,071 0
Total Revenues
$ 4,557,371 $ 4,368,837
Payroll & Benefits
$ (373,680) $ (371,921)
(52,726)
(50,261)
Turnover Costs
(85,868)
(80,034)
(50,711)
(51,645)
(74,074)
(74,780)
Utilities (258,968) (266,896)
Insurance
(75,237)
(75,540)
Property Taxes (924,700) (923,381)
$(2,174,037) $(2,165,359)
$ 2,383,334 $ 2,203,479
Debt Service (Principal & Interest) $(1,620,380) $(1,620,379)
(80,774) (139,838)
0
174,076 807,484
$ 351,996 $ 1,051,996
$ 275,133 $ 959,380
$ 2,383,334
Mortgage Interest (1,620,380)
Estimated Depreciation
(452,176)
Amortization
(90,505)
(80,774)
Projected Taxable Income / (Loss) $
139,498
Property Highlights
Loan Information
Lender
Loan Balance
as of 12/2009
$ 2,203,479
(1,620,379)
(452,176)
(90,505)
(139,838)
$ (99,419)
Interest Rate
5.23%
2010
Projected
Taxable
Income
2010
28.72%
81.70%
93.07%
1,299 $
Deutsche Bank
Berkshire Mortgage $3 0,558,000 2009
Projected
Taxable
Income
Projected
Earnings
Year 2010
2009
Ownership
Percentage
Actual
Earnings
Year 2009
2009 Actual
Limited
Partner
Distributions
CWS Bellaire-Laguna, LP
CWS Bellaire-Feliz, LP
Private Trust*
Private Trust*
Private Trust*
Private Trust*
100.15%
79.99%
92.13%
1,294
Maturity Date
April, 2015
2010 Projected
Limited
Partner
Distributions
17.97655%
$(94,057)
$(137,007)
$ 50,708 $ 173,712
29.21445%(78,902)(148,700) 81,136
281,035
11.23596% 66,480 39,636 30,534 107,416
15.73034% 93,072 55,490 42,630 150,264
20.22472%119,664 71,344 54,815 193,202
5.61798% 33,240 19,818 15,310 53,751
$139,498 $ (99,419)
$275,133 $ 959,380
Year 2009 Actual
Year 2010 Projected
( in millions )
( in millions )
Total Revenues $
4.56
Total Revenues $
2.17
4.37
2.17
Debt Service $
1.62
Debt Service $
1.62
0.43
0.34
Distributions
$
0.28
Distributions
$
0.96
.PG.
25
mar qu i s at l a n ta na
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Net Rental Income
$ 2,714,878 $ 2,690,381
Other Income
313,114 331,130
Interest Income
757 0
Total Revenues
$ 3,028,749 $ 3,021,511
Payroll & Benefits
$ (319,828)
$ (347,353)
(51,078)
(52,454)
Turnover Costs
(29,163)
(22,153)
(35,622)
(32,274)
(65,737)
(65,252)
(58,010)
(57,700)
Utilities
(231,551) (226,635)
Insurance
(58,354)
(57,612)
Property Taxes
(476,003) (475,950)
Management Expenses
(94,904)
(94,545)
$(1,420,249)
$(1,431,929)
$ 1,608,499 $ 1,589,582
$ (770,355)
(216,509) (127,370)
(88,519)
(88,780)
Reserves (Net)
(399,210)
0
114,762 (3,077)
$ 346,500
$ 600,000
$ 346,500 $ 600,000
Projected
Earnings
Year 2010
$1,608,499 $ 1,589,582
Amortization
(77,949)
(77,949)
(88,519)
(88,780)
$
96,405
$ (29,868)
Property Highlights
2009
Loan Balance
as of 12/2009
Interest Rate
Freddie Mac
$18,200,000 LIBOR+3.29%
2009
Projected
Taxable
Income
2010
Projected
Taxable
Income
2010
4.50%
86.19%
92.55%
1,058 $
Loan Information
Lender
Ownership
Percentage
Actual
Earnings
Year 2009
2009 Actual
Limited
Partner
Distributions
7.79%
85.35%
91.18%
1,059
Maturity Date
January, 2016
2010 Projected
Limited
Partner
Distributions
Edgecreek C Lantana LP
45.56122%
$39,458 $(18,073)
$157,870 $273,367
FV C Lantana LP
31.88939%30,224 (10,043)110,497 191,336
FVLA C Lantana LP
6.20407% 7,869 35 21,497 37,224
TIG C Lantana LP
6.01392% 5,128 (2,466) 20,838 36,084
TROP C Lantana LP
3.34941% (203) (4,432) 11,606 20,096
SJS Crossroads LLC
6.98198% 13,929 5,113
24,193 41,892
$96,405 $(29,868)
$346,500 $600,000
CWS Lantana, LP ***
20,571
(9,717) 83,111 143,916
***Includes distributions from limited partner interest in all above listed partnerships
Year 2009 Actual
Year 2010 Projected
( in millions )
( in millions )
Total Revenues $
3.03
Total Revenues $
3.02
1.42
1.43
Debt Service $
0.67
Debt Service $
0.77
0.31
0.22
Distributions
$
0.35
Distributions
$
0.60
.PG.
26
t h e mar qu i s at s t o n e gat e
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Net Rental Income
$ 3,342,177 $ 3,163,455
Other Income
318,383 303,084
Interest Income
1,284 0
Total Revenues
$ 3,661,844 $ 3,466,538
Payroll & Benefits
$ (442,992) $ (400,386)
(72,206)
(78,913)
Turnover Costs
(68,988)
(86,775)
(66,301)
(62,628)
(77,294)
(79,632)
(63,478)
(65,884)
Utilities (201,375) (219,249)
Insurance
(72,573)
(72,852)
Property Taxes (744,497) (739,393)
$(1,924,349) $(1,914,207)
$ 1,737,495 $ 1,552,331
Debt Service (Principal & Interest) $ (238,360) $ (363,514)
(37,836) (121,081)
Reserves (Net)
(100,319)
0
(80,020) (109,416)
$ 729,328 $ 729,328
$ 663,026 $ 663,026
Projected
Earnings
Year 2010
$1,737,495 $ 1,552,331
(39,602)
(37,836) (121,081)
$ 518,781 $ 114,341
Property Highlights
2009
Average Market Rent
$
Loan Balance
as of 12/2009
Interest Rate
Freddie Mac
$15,900,000 Libor + 1.37%
2009
Projected
Taxable
Income
2010
Projected
Taxable
Income
2010
11.00%
80.78%
93.02%
1,119 $
Loan Information
Lender
Ownership
Percentage
Actual
Earnings
Year 2009
2009 Actual
Limited
Partner
Distributions
11.00%
77.25%
91.64%
1,108
Maturity Date
June, 2012
2010 Projected
Limited
Partner
Distributions
CWS O’Connor-Stonegate, L.P.
11.95444%
$ 36,339 $(12,009)
$ 79,261 $ 79,261
CWS Forth Worth, L.P.
9.90151% 42,379 2,333 65,650 65,650
CWS Feliz-Stonegate, L.P.
26.82749%175,641 67,140 177,873 177,873
CWS Margate-Stonegate, L.P.
28.18189%150,404 36,425 186,853 186,853
CWS Winter-Stonegate, L.P.
23.13467% 114,018 20,452 153,389 153,389
$ 518,781 $114,341 $663,026 $663,026
CWS O’Connor-Stonegate, L.P.**
54,704 11,671 70,548
70,548
CWS Stonelake Associates***233,180 50,659 299,218 299,218
** Includes distributions from limited partner interests in CWS Margate-Stonegate, L.P. & CWS Winter-Stonegate, L.P.
*** Includes distributions from limited partner interests in all the above listed partnerships
Year 2009 Actual
Year 2010 Projected
( in millions )
( in millions )
Total Revenues $
3.66
Total Revenues $
1.92
3.46
1.91
Debt Service $
0.38
Debt Service $
0.36
0.59
0.35
Distributions
$
0.66
Distributions
$
0.66
.PG.
27
t h e mar qu i s at w i l l o w l a k e
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Net Rental Income
$1,754,700 $1,670,095
Other Income 206,457 153,631
Interest Income
826 0
Total Revenues
$1,961,982 $1,823,726
Payroll & Benefits
$ (203,799) $ (218,136)
(41,362) (49,302)
(23,611)
(34,811)
(51,431) (46,754)
Utilities (112,867) (116,934)
Insurance
(40,123) (39,444)
Property Taxes (343,785) (340,992)
Management Expenses
(62,970) (58,612)
$ (955,864) $ (966,682)
$1,006,118 $ 857,044
Debt Service (Principal & Interest) $ (593,733) $ (593,733)
(72,017) (68,875)
Reserves (Net)
(17,926)
0
57,354
$ 118,454 $ 105,292
$ 118,454 $ 105,292
Projected
Earnings
Year 2010
$1,006,118 $
$ (231,910)
$
Property Highlights
2009
Loan Information
Lender
Loan Balance
as of 12/2009
Freddie Mac
$ 9,600,000 2009
Projected
Taxable
Income
Ownership
Percentage
Actual
Earnings
Year 2009
6.10%
2010
Projected
Taxable
Income
2010
6.75%
87.44%
92.46%
1,212 $
Interest Rate
2009 Actual
Limited
Partner
Distributions
857,044
(593,733)
(535,520)
(46,772)
(68,875)
(387,856)
6.00%
82.17%
90.92%
1,227
Maturity Date
September, 2012
2010 Projected
Limited
Partner
Distributions
CWS O’Connor-Willow Lake, L.P.
13.26819%
$ (42,719)
$ (63,410)
$ 15,717
$ 13,970
CWS Feliz-Willow Lake, L.P.
29.77574% (54,070)(100,504) 35,271 31,351
CWS Margate-Willow Lake, L.P.
31.27898% (71,585)(120,364) 37,051 32,934
CWS Winter-Willow Lake, L.P.
25.67709% (63,535)(103,578) 30,416
27,036
$(231,910)
$(387,856)
$118,454 $105,292
CWS O’Connor-Willow Lake, L.P.**
(25,298) (41,891) 12,604 11,203
CWS Stonelake Associates***(102,457) (161,940) 50,179 44,604
** Includes distributions from limited partner interest in CWS Margate-Willow Lake, L.P. & CWS Winter-Willow Lake, L.P.
*** Includes distributions from limited partner interests in all the above listed partnerships
Year 2009 Actual
Year 2010 Projected
( in millions )
( in millions )
Total Revenues $
1.96
Total Revenues $
0.96
1.82
0.97
Debt Service $
0.59
Debt Service $
0.59
0.24
0.22
Distributions
$
0.12
Distributions
$
0.11
.PG.
28
San Antonio
R
Financial
e
g
f e a t u r e d
guidance
for a
i
o
n
smart
p r o p e r t i e s
Investing
for
The Marquis at Deerfield
The Marquis at Rogers Ranch
The Park at Walker’s Ranch
turbulent
economy
today’s
landscape
CWS C
ta
api
rt n
l Pa
ers
.PG.
29
2009 Ann
ua l
Re p
ort
S o u r c e s
San Antonio Business Journal, Austin Investor Interests
• The Marquis at Rogers Ranch
36
1604
• The Marquis at Deerfield
• The Park at Walker’s Ranch
10
1535
Castle Hills
San Antonio
International
Airport
16
Windcrest
410
Leon Valley
281
Balcones
Heights
1604
421
151
Alamo Heights
36
Kirby
San Antonio
37
410
36
90
The San Antonio market experienced job loss
of 0.6% in 2009. Despite a difficult national
economy, San Antonio’s stable reputation
has proven itself yet again. Major employers
include AT&T, H.E.B Food Stores, United
Services Automobile Association (USAA),
Baptist Health System, and the United
States Military. The low cost of living, quality workforce, NAFTA-related trade hub,
and government incentives make it very appealing for corporate expansions and relocations. Rents decreased 0.76% in 2009. The
overall occupancy for the San Antonio MSA
was 88.52% at the end of 2009, compared
to 89.1% at the end of 2008. During 2009,
5,200 new units were delivered in the marketplace, compared to an average of 3,400
new units over the past five years. There are
2,540 additional new units expected in 2010.
It is expected that 2010 will be a challenging
year with the combination of flat to slow job
growth and market-wide occupancy starting
the year below 90%. The long-term fundamentals for the market look very healthy, as
post-2010 construction should experience a
significant drop. San Antonio has held up
relatively well compared to most cities and is
expected to be an early participant in turning the corner to positive growth.
.PG.
30
s a n a n t o n i o : 4t h Qua rt e r
Metro Highlights
.PG.
31
N o rt h w e s t s a n a n t o n i o
The northwest San Antonio submarket is home to
the most prosperous households in the metro area.
Prestigious neighborhoods, numerous parks, high
quality schools, and multiple country clubs fill the
Texas hill country of northwest San Antonio. The
area is home to many of the city’s best amenities,
including shopping, entertainment, and transportation. Central Park Mall and North Star Mall are
home to San Antonio’s most renowned collection of
national retailers including Dillard’s, Macy’s and
Saks Fifth Avenue. The Shops at La Cantera, a 1.3
million square foot shopping center opened in 2005
and includes Nordstrom, Neiman Marcus, Dillard’s
and Foley’s. The City of San Antonio continues to
develop the 311-acre land site it purchased to create the largest park in the city. The adjacent tract
to the park, Alon Town Center, is a new mixed-use
development containing 225,000 square feet of retail and restaurants and 85,000 square feet of luxury
office space. Tenants include H.E.B’s high end grocery store, Barnes & Noble, and a mixture of cafes,
distinctive shops, and restaurants.
The northwest submarket saw 1,308 new apartments delivered in 2009, while 400 apartments are
expected in 2010. Occupancy for the area at the
end of 2009 was 87.9% down 2.8% from 2008 as
the submarket is still trying to absorb the 1,308 new
units. It is unlikely there will be significant new development in the submarket over the next few years.
The lack of new units combined with an economic
upturn in 2010 or 2011 should lead to improving
fundamentals for the submarket.
.PG.
32
t h e mar qu i s at d e e r f i e l d
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Net Rental Income
$ 3,343,051 $ 3,160,713
Other Income
332,394 317,564
Interest Income
2,264 0
Total Revenues
$ 3,677,709 $ 3,478,277
Payroll & Benefits
$ (405,756)
$ (401,002)
(59,049)
(59,602)
Turnover Costs
(47,939)
(55,091)
(45,465)
(48,527)
(73,587)
(87,789)
(65,237)
(76,966)
Utilities (156,360) (170,064)
Insurance
(75,160)
(74,940)
Property Taxes (743,905) (760,932)
$(1,788,769)
$(1,843,761)
$ 1,888,940
$ 1,634,516
Debt Service (Principal
& Interest)
$ (895,434)
$ (895,434)
(97,922) (191,340)
(98,525) (118,866)
0
(73,085)
171,123
$ 598,128 $ 600,000
$ 598,128 $ 600,000
Projected
Earnings
Year 2010
$ 1,888,940 $
Amortization
(37,503)
(98,525)
Projected Taxable Income / (Loss) $ 113,400 $
Property Highlights
2009
Loan Information
Lender
Loan Balance
as of 12/2009
Freddie Mac
$15,440,000 2009
Projected
Taxable
Income
Ownership
Percentage
Actual
Earnings
Year 2009
2010
9.01%
82.72%
93.41%
991 $
Interest Rate
5.72%
2010
Projected
Taxable
Income
2009 Actual
Limited
Partner
Distributions
1,634,516
(895,434)
(785,826)
(37,250)
(118,866)
(202,860)
9.04%
78.43%
91.43%
988
Maturity Date
April, 2011
2010 Projected
Limited
Partner
Distributions
CWS Deerfield Assoc/Huebner Bitters Assoc.
17.05313%
$ 27,622 $ (26,310)
$ 101,999
$ 102,319
Newport Coral Lake Assoc, Ltd
29.41272% 35,004 (58,017) 175,926
176,476
Harbor Cove/Deerfield Assoc, Ltd
21.67174% 24,663 (43,876) 129,625
130,030
Stonegate/Deerfield Assoc, Ltd
31.86241% 26,111 (74,657) 190,578 191,174
$113,400 $(202,860)
$ 598,128 $600,000
Year 2009 Actual
Year 2010 Projected
( in millions )
( in millions )
Total Revenues $
3.68
Total Revenues $
3.48
1.79
1.84
0.90
Debt Service $
0.90
Debt Service $
0.20
0.31
Distributions
$
0.60
Distributions
$
0.60
.PG.
33
t h e mar qu i s at r o ge r s ra n c h
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Add:Net Rental Income
$ 2,633,583 $ 2,563,308
Other Income
305,498 305,776
Interest Income
496 0
Total Revenues
$ 2,939,578 $ 2,869,084
Payroll & Benefits
$ (342,698)
$ (355,891)
(55,052)
(59,609)
Turnover Costs
(39,937)
(43,401)
(46,452)
(40,740)
(63,773)
(63,624)
(64,708)
(67,605)
Utilities
(195,912) (176,435)
Insurance
(61,618)
(62,952)
Property Taxes (706,189) (723,582)
Homeowners Association Dues
(16,711)
(15,312)
Management Expenses
(93,565)
(89,973)
$(1,686,617)
$(1,699,123)
$ 1,252,961 $ 1,169,961
$(1,244,749)
Lender Group Interest
(117,988) (154,332)
(99,262) (126,190)
(66,532)
Cash from Lender Group
799,999 0
10,164 30,528
Reserves (Net)
(28,554)
125,000
266,313
$
0
$
0
$
0
$
0
Property Highlights
2009
Loan Information
Lender
Loan Balance
as of 12/2009
2009
Projected
Taxable
Income
Interest Rate
2010
Projected
Taxable
Income
$(656,096)
$(656,096)
Total Revenues $
2.94
Total Revenues $
1.69
1.70
Debt Service $
1.36
Debt Service $
1.40
0.20
0.19
2.87
.PG.
34
November, 2011
10.00%
December, 2011
$0 $0 ( in millions )
Maturity Date
6.52%
2009 Actual
Limited
Partner
Distributions
$(764,324)
$(764,324)
Year 2010 Projected
( in millions )
2010
0.00%
0.00%
76.79% 75.33%
91.25% 92.56%
1,162 $ 1,153
Freddie Mac
$14,500,085 Rogers Ranch
Lender Group 1,534,999 Stonegate Austin-Rogers Ranch, LP
100.00000%
Year 2009 Actual
Projected
Earnings
Year 2010
$1,252,961 $ 1,169,961
Amortization
0 0
$ (656,096)
$ (764,324)
Ownership
Percentage
Actual
Earnings
Year 2009
2010 Projected
Limited
Partner
Distributions
$0
$0
t h e par k at wa l k e r’ s ra n c h
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Net Rental Income
$ 2,546,086 $ 2,500,691
Other Income
221,436 190,091
Interest Income
2,692 0
Total Revenues
$ 2,770,215 $ 2,690,782
Less:Payroll & Benefits
$ (410,845)
$ (422,551)
(85,733)
(81,533)
Turnover Costs
(68,086)
(67,881)
(52,081)
(56,523)
(55,973)
(59,897)
(61,571)
(68,960)
Utilities (150,944) (181,074)
Insurance
(76,076)
(76,488)
Property Taxes
(547,321) (535,089)
Management Expenses
(89,252)
(88,343)
$(1,597,881)
$(1,638,339)
$ 1,172,333 $ 1,052,443
$(1,067,234)
(86,216)
977,850 0
Reserves (Net)
456,901 108,436
75,653 63,560
Cash from/(to) Reserves (1,127,806)
429,988
$
0
$
0
$
0
$
0
Projected
Earnings
Year 2010
$ 1,172,333 $ 1,052,443
(741,131)
Lender Group Interest (262,906)
(286,008)
Amortization
(16,055)
(16,009)
(86,216)
Projected Taxable Income / (Loss) $(1,042,388)
$ (1,198,228)
Property Highlights
2009
Outstanding Investment (ROI) Class A
Outstanding Investment (ROI) Class B
Average Economic Occupancy
Loan Information
Lender
Loan Balance
as of 12/2009
2009
Projected
Taxable
Income
2010
Projected
Taxable
Income
0.00%
7.00%
79.40%
92.41%
891 $
7.00%
76.84%
92.03%
904
Maturity Date
4.93%
September, 2013
9.00%
December, 2011
2009 Actual
Limited
Partner
Distributions
CWS Walkers Ranch IR, LP
CWS Walkers Ranch IR HCN, LP
CWS Walkers Ranch IR HCM, LP
CWS Walkers Ranch IR LM, LP
Private Trust *
2010
0.00%
Interest Rate
PNC Bank
$ 15,002,856 Walkers Ranch
Lender Group 3,177,850 Ownership
Percentage
Actual
Earnings
Year 2009
2010 Projected
Limited
Partner
Distributions
49.66950% $ (565,555)
$ (642,960)
$
0
$
0
21.67037% (211,570) (245,341)
0 0
8.67790%
(80,910) (94,433)
0 0
14.82465% (126,388) (149,490)
0 0
5.15757%
(57,966) (66,003)
0 0
$(1,042,388)
$(1,198,228)
$
0
$
0
WRLG One, LP (Class B)187,253 222,448
Year 2009 Actual
Year 2010 Projected
( in millions )
( in millions )
Total Revenues $
2.77
Total Revenues $
2.69
1.60
1.64
Debt Service $
1.33
Debt Service $
1.35
0.22
0.30
.PG.
35
Houston
R
e
g
f e a t u r e d
Financial
guidance
i
o
n
p r o p e r t i e s
smart
Investing
The Marquis at Bellaire*
The Marquis on Briar Forest
The Marquis on Eldridge Parkway*
The Marquis on Memorial*
The Marquis at Pin Oak Park*
The Marquis at Westchase*
The Marquis on Westheimer*
for a
turbulent
economy
for
today’s
landscape
CWS C
ta
api
rt n
l Pa
ers
.PG.
36
2009 Ann
ua l
Re p
ort
S o u r c e s
Texas A&M Real Estate, US Bureau of Census, REIS, MPF Research
1960
North
Houston
Jersey
Village
• The Marquis on Memorial
290
6
59
Highland
Heights
• The Marquis on Briar Forest
Bear
Creek
Park
East
Houston
45
610
Houston
Heights
Hunters
Creek
Village
6
10
10
Houston
• The Marquis on Elridge Parkway
10
610
• The Marquis at Westchase
• The Marquis on Westheimer
• The Marquis at Bellaire
59
Bellaire
225
• The Marquis at Pin Oak Park
610
610
288
Houston is among the fastest growing and
most diverse metropolitan areas in the nation. According to the latest data from the
U.S. Census, Houston has a population
of over two million people, making it the
fourth-largest city in the nation and the
sixth-largest metropolitan area with 5.5
million people in the 10-county metro.
Houston’s economy showed signs of slowing in 2009 with 73,000 jobs lost, but is expected to bounce back in 2010 with an estimated gain of 30,000-40,000 jobs. Houston’s diverse markets have helped to shield
Houston’s unemployment rate of 8.2% as
compared to the national average of 10.0%.
45
Pasadena
South
Houston
These include the energy industry, international trade through the Port of Houston
and the Texas Medical Center, the largest
medical complex in the nation. The metropolitan region’s population base has grown
by an impressive 785,000 people (18.2%)
from 2002 to 2008, ranking the area third
in population growth during the period.
The Houston MSA population is expected
to grow by another 2.9 million people by
2030. Healthy in-migration and the youngest population of the nation’s ten largest
metro areas are major contributing factors
to this future population expansion.
.PG.
37
h o u s t o n: 4t h qua rt e r
Metro Highlights
.PG.
38
E n e r gy C o r r i d o r S u b m a r k e t
Houston’s Energy Corridor, home to The Marquis
on Briar Forest, is strategically located along IH
10, midway between Beltway 8 and Grand Parkway,
and is comprised of two of Houston’s most dynamic
business centers: The Energy Corridor Management
District (EMCD) and Park 10 Regional Business
Park. The Energy Corridor is the fourth largest employment center in the region with 73,000 employees and is home to multi-national and local energy
companies such as BP America Inc.’s headquarters,
Shell Exploration and Production, ExxonMobil
Corporation, ConocoPhillips world headquarters,
Citgo Petroleum Corporation, Cabot Oil and Gas,
and Global Santa Fe, as well as a host of additional
oil and gas exploration/production companies. The
Corridor currently contains over 16 million square
feet of office space, 2,000 hotel rooms, 10,000 luxury apartment units, 1.0 million square feet of retail,
and 1.4 million square feet of service center and distribution space. Additionally, the recent expansion
of Interstate 10 along the corridor will provide increased access and promote growth in the area.
After a difficult 2009, improving fundamentals
for the Energy Corridor in 2010 are the basis for an
optimistic outlook for this submarket. Currently
there are no new units under construction and just
330 in the lease up stage. There are no new construction starts expected for the next several years.
Single-family homes in the submarket begin around
$250,000, significantly exceeding the Houston median price of $150,000. Newer developments range
from $500,000 to $2 million dollars. As the price
of oil stabilizes, jobs return to the Energy Corridor,
and fundamentals continue to improve, the consensus among leading researchers is growth in occupancy and rent.
.PG.
39
t h e mar qu i s o n b r i ar f o r e s t
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Net Rental Income
$ 3,520,523
$ 3,263,587
Other Income
299,407 284,758
Interest Income
2,606 0
Total Revenues
$ 3,822,536
$ 3,548,345
Payroll & Benefits
$ (398,900)
$ (387,807)
(71,160)
(89,441)
Turnover Costs
(60,249)
(60,358)
(42,951)
(39,800)
(68,635)
(81,732)
(66,878)
(87,720)
Utilities (242,542) (239,068)
Insurance
(175,972) (172,380)
Property Taxes (746,379) (758,795)
Management Expenses
(119,724)
(111,490)
$(1,993,390)
$(2,028,592)
$ 1,829,146 $ 1,519,753
Debt Service (Principal & Interest) $ (1,714,001)
$ (1,776,953)
(117,630)
Reserves (Net)
5,284
(5,952)
177,539 545,265
$
0
$
0
$
0
$
0
Property Highlights
2009
Loan Information
Lender
Loan Balance
as of 12/2009
Interest Rate
PNC Bank
$26,149,768 Briar Forest Lender
Group 1
881,017 2009
Projected
Taxable
Income
2010
Projected
Taxable
Income
Year 2010 Projected
( in millions )
Total Revenues $
3.82
Total Revenues $
3.55
1.99
2.03
Debt Service $
1.71
Debt Service $
1.78
0.12
Other Sources / Uses $ (0.26)
.PG.
40
0.00%
66.82%
91.64%
1,028
Maturity Date
5.39%
November, 2015
9.00%
December, 2012
2009 Actual
Limited
Partner
Distributions
2.19759%
$ (17,707)
$ (24,144)
$
6.33395% (42,733) (61,284)
21.72965%(144,620)(208,262)
5.73889% (28,881) (45,689)
17.70719% (111,667)(163,527)
14.58058%(112,343)(155,047)
26.11397%(189,297)(265,780)
5.59817% (34,942) (51,338)
$(682,190)
$(975,070)
$
CWS Briar Forest LP***(125,467)(179,258)
( in millions )
2010
0.00%
72.16%
92.10%
1,027 $
CWSBF - Crystal, LLC
CWSBF - Diamond, LLC
CWSBF - Palm, LLC
CWSBF - Shadow, LLC
CWSBF - Sunset, LLC
CWSBF - UWH, LLC
CWSBF - Friendly, LLC
Private Trust*
Year 2009 Actual
Projected
Earnings
Year 2010
$ 1,829,146 $ 1,519,753
Amortization
(8,990)
(8,990)
$ (975,070)
Ownership
Percentage
Actual
Earnings
Year 2009
2010 Projected
Limited
Partner
Distributions
0
$
0 0 0 0 0 0 0 0
$
0 0
0
0
0
0
0
0
0
0
0
Atlanta
Financial
R
guidance
e
g
f e a t u r e d
for a
turbulent
i
o
smart
n
Investing
p r o p e r t y
for
The Marquis at Briarcliff
today’s
economy
landscape
CWS C
ta
api
rt n
l Pa
ers
.PG.
41
2009 Ann
ua l
Re p
ort
S o u r c e s
Metro Atlanta Chamber of Commerce, REIS, U.S. Bureau of Labor Statistics, U.S. Census Bureau, and Real Estate Center at Texas A&M University
85
75
North Atlanta
Smyrna
Tucker
141
Vinings
400
• The Marquis at Briarcliff
70
North
Decatur
85
70
285
75
Belvedere
Atlanta
20
20
Gresha Park
Atlanta has long been the economic powerhouse of the southeast. The area’s quality of
life, extensive infrastructure and relatively
low costs have maintained its attraction as
a leading net new-job generator and newcomer magnet over the last decade. Unfortunately, this recession has hit Atlanta
very hard as evidenced by job losses totaling almost 180,000 over 2008 and 2009.
The largest job losses were posted in trade/
transportation/utilities and professional/
business services, with continuing job losses
in construction and manufacturing. Despite
this temporary setback, the outlook remains
positive over the longer term. According to
the U.S. Census Bureau, the Atlanta metro
ranked #4 among the nation’s 361 metro
areas for number of new residents for the
year ending June 30, 2008. The estimated
metro population is 5.5 million as of 2009;
this represents a 30% increase since 2000.
This upward trend is projected to continue
over the coming years, as the Atlanta MSA
population is projected to total 7.3 million
by 2020, which is expected to make it the
sixth largest metro in the nation at that time
(compared to a current ranking of ninth).
.PG.
42
At l a n ta : 4t h Qua rt e r
Metro Highlights
.PG.
43
at l a n ta
CWS made a strategic decision to enter the Atlanta multifamily market as Atlanta is the economic focal point of the
southeast, with one of the most resilient and diverse economic bases in the country. Atlanta ranks fifth in the nation
among cities with the most Fortune 500 headquarters (12).
26 companies headquartered in metro Atlanta are ranked
among the Fortune 1000 companies, and more than 70%
of all Fortune 1000 companies have a presence in metro Atlanta. Additionally, metro Atlanta is home to 25 private companies that have annual revenues of at least $500 Million.
Since 2000, metro Atlanta has averaged a net population increase of approximately 140,000 per annum. Demographers expect this trend to continue over the next five years,
although the trend of in-migration may moderate slightly.
However, as a metro area with a youthful median age of
33.0 years, baseline population growth attributed to natural
change (births less deaths) is estimated at more than 50,000
per annum.
Preliminary estimates indicate that 105,000 jobs were
lost in the Atlanta MSA during 2009, compared to a loss of
almost 72,000 jobs in 2008. The outlook for 2010 indicates
the local economy should begin to stabilize, as a loss of only
14,000 jobs is expected; job growth is expected to return in
2011 with the expected addition of 40,000 jobs.
Atlanta has not escaped unscathed from the difficulties
currently being experienced in the housing industry. Multifamily housing permits dropped to approximately 1,000
units in 2009, a mere fraction of the average over the previous decade. Multi-family additions to the housing supply
are expected to remain at very low levels over the next few
years. Although vacancy in the Atlanta market has risen to
11.4%, restrained construction activity should help vacancy
return to lower levels more quickly once the economic recovery begins.
The Marquis at Briarcliff is located in proximity to
Atlanta’s largest employment centers. Demand for similar
in-town locations is strong as more and more residents seek
to enhance their quality of life by minimizing commuting
time and expense. The construction of new apartments in
the urban core of Atlanta will be limited due to the lack of
available zoned land. Additionally, those apartment communities that are built will be at a much higher basis, due to
the high cost of land and construction materials. Therefore,
well-located existing communities such as The Marquis at
Briarcliff should be able to compete effectively for residents
in the coming years.
The North DeKalb submarket includes almost 35,000
apartment units. In 2009, unit deliveries totaled 509 units
with absorption of 520 units. As a result, vacancy declined
marginally to 10.8%. Deliveries are expected to pick up in
2010, with 1,225 units scheduled for delivery at this time.
Absorption is projected to be 710 units in 2010, implying a
year-end vacancy rate of 11.9%. Due to this increase in vacancy, rents are expected to post a marginal decline of 0.2%.
.PG.
44
t h e mar qu i s at b r i arc l i f f
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Net Rental Income
$1,253,462 $ 1,162,210
113,855
Interest Income
61 0
Total Revenues
$1,378,614 $1,276,065
Payroll & Benefits
$ (225,257)
$ (217,778)
(38,016)
(33,303)
Turnover Costs
(25,797)
(27,386)
(30,416)
(26,621)
(30,609)
(58,708)
Utilities (107,727) (116,094)
Insurance (30,407) (30,840)
Property Taxes (186,128) (196,584)
Management Expenses
(46,801)
(43,402)
$ (769,524)
$ (785,120)
$ 609,090 $ 490,945
$ (631,398)
(74,050)
(79,622)
(54,621)
Upaid Lender Group Interest
0 10,000
Reserves (Net)
(30,790)
0
$
0
$
0
$
0
$
0
Projected
Earnings
Year 2010
$ 609,090 $ 490,945
0 (45,000)
$(212,355)
$(345,088)
Property Highlights
2009
Outstanding Investment (ROI) Average Economic Occupancy Average Physical Occupancy Average Market Rent $
Loan Information
Lender
Loan Balance
as of 12/2009
2009
Projected
Taxable
Income
6.19%
9.00%
2010
Projected
Taxable
Income
2010
0.00%
80.91%
94.42%
1,241 $
Interest Rate
Metropolitan Life
Insurance Company $8,558,298 Briarcliff Lender Group 369,882 Ownership
Percentage
Actual
Earnings
Year 2009
2009 Actual
Limited
Partner
Distributions
0.00%
76.30%
93.71%
1,221
Maturity Date
July, 2013
July, 2013
2010 Projected
Limited
Partner
Distributions
CWS Briarcliff VOT Shoal, LP
12.69936%
$ (35,490)
$ (52,346)
$0 $0
15.68419% (76,976) (97,794)0 0
CWS Briarcliff Plaza Villas WB, LP
CWS Briarcliff North Bluff WB, LP
13.21195% (40,815) (58,351)0 0
4.85573% (22,065) (28,510)0 0
CWS Briarcliff Pooles WB, LP
Private Trust*
5.47261% (12,158) (19,422)0 0
5.47261% (2,829) (10,093)0 0
Private Trust*
Private Trust*
42.60355% (22,023) (78,572)0 0
$(212,355)
$(345,088)
$0 $0
Year 2009 Actual
Year 2010 Projected
( in millions )
( in millions )
Total Revenues $
1.38
Total Revenues $
0.77
1.28
0.79
Debt Service $
0.58
Debt Service $
0.63
0.17
0.13
.PG.
45
Charlotte
R
Financial
e
g
f e a t u r e d
i
o
n
smart
p r o p e r t i e s
guidance
Investing
for a
for
The Marquis at Carmel Commons
The Marquis of Carmel Valley
The Marquis at Northcross*
The Preserve at Ballantyne Commons
turbulent
economy
today’s
landscape
CWS C
ta
api
rt n
l Pa
ers
.PG.
46
2009 Ann
ua l
Re p
ort
S o u r c e s
Greater Charlotte Chamber of Commerce, Real Estate Center at Texas A&M University, REIS, Portfolio & Property Research, and U.S. Bureau of Labor Statistics
27
16
521
77
49
74
27
Central Business District
27
Charlotte • The Marquis at Northcross
Charlotte / Douglas
International Airport
74
16
77
Matthews
218
51
521
51
49
Ballantyne
Resort
51
51
77
485
• The Marquis at Carmel Commons
• The Marquis of Carmel Valley
74
521
• The Preserve at Ballantyne Commons
16
The Charlotte MSA experienced job losses of 36,000 during 2009. Multi-family
permits have declined to 2,600 units, a reduction of 46% over the prior year but still
fairly robust given the current economic
climate. With the addition of 3,529 units
to the multi-family market during 2009,
vacancy has climbed to 11.1% as these additions outpaced the level of absorption.
As would be expected in such a competitive environment, effective rents declined
by 3.6% during 2009. Moving forward, vacancy is expected to improve during 2010,
ending the year at approximately 10.3%.
Although 2010 is expected to be another
challenging year for the multi-family market, demand for apartments in the Charlotte MSA is expected to be strong once
the economic recovery is underway, given
the area’s favorable rental demographic
and weakness in the prices of single-family homes. During this period of economic
duress, a larger percentage of households
will find that renting an apartment is
the best solution for their housing needs.
.PG.
47
c h a r l o t t e : 4t h qua rt e r
Metro Highlights
.PG.
48
southeast charlotte
The Carmel submarket, situated in southeast Charlotte, has become the premier location in the Charlotte MSA during the past decade due to its quality of
life, including the best schools, recreation, shopping,
and dining. The Marquis at Carmel Commons, The
Marquis of Carmel Valley, and The Preserve at Ballantyne Commons are located in this area.
The submarket includes Ballantyne, a 2,000acre master planned community designed to offer a
live/work/play lifestyle. Ballantyne Corporate Park
has over three million square feet of office space at
this time and has zoning in place to accommodate
an additional three million square feet. Prominent
companies such as SPX Corporation, ESPN, Bank
of America, and AXA/The Equitable Life Assurance
Society have offices in the park.
Southeast Charlotte offers a broad variety of
shopping destinations, including SouthPark Mall,
Carolina Place Mall, Ballantyne Village, The Arboretum, Toringdon Market, and Toringdon Circle.
There are also a number of country clubs in southeast Charlotte, including Ballantyne, Carmel, Quail
Hollow, and TPC at Piper Glen.
The Carmel submarket includes more than
13,000 units and had 215 units delivered in 2009.
Absorption for the period was a modest 156 units.
No unit deliveries are expected in 2010 while absorption of 162 units is projected. In 2009, the submarket’s vacancy rate rose from a low 8.9% to 9.4%;
this was better than the 11.1% posted for the overall
Charlotte metro. In 2010, vacancy is expected to decrease by 1.2% in the Carmel submarket, resulting in
a 4Q2010 vacancy projection of 8.2%. Effective rents
in the submarket are expected to remain unchanged
during 2010.
.PG.
49
t h e mar qu i s at carm e l c o mm o n s
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Net Rental Income
$ 2,860,449 $ 2,657,117
Other Income
235,129 244,151
Interest Income
2,398 0
Total Revenues
$ 3,097,975 $ 2,901,268
Payroll & Benefits
$ (433,453)
$ (438,939)
(44,436)
(56,851)
Turnover Costs
(63,514)
(61,860)
(47,084)
(42,820)
(81,458)
(83,738)
(63,685)
(77,380)
Utilities
(177,194) (185,779)
Insurance
(69,857)
(70,416)
Property Taxes (312,869)
(311,316)
Management Expenses
(99,789)
(91,538)
$(1,393,339)
$(1,420,637)
$ 1,704,637 $ 1,480,631
$(1,220,013)
(94,758)
(89,465)
Reserves (Net)
519 0
162,320
178,395
$ 422,404 $ 134,000
$ 422,404 $ 134,000
Projected
Earnings
Year 2010
$ 1,704,637 $ 1,480,631
Amortization (184,173) (184,173)
(94,758)
(89,465)
$ (756,325)
Property Highlights
2009
Average Market Rent
$
Loan Information
Lender
Loan Balance
as of 12/2009
Nomura Credit
& Capital
2010
11.00%
80.21%
94.29%
952 $
Interest Rate
$21,000,000 2009
Projected
Taxable
Income
Ownership
Percentage
Actual
Earnings
Year 2009
5.73%
2010
Projected
Taxable
Income
2009 Actual
Limited
Partner
Distributions
3.49%
74.52%
92.32%
952
Maturity Date
April, 2014
2010 Projected
Limited
Partner
Distributions
CWS Lamplighter TX-Carmel Valley II, LP
28.55835%
$(151,858)
$(218,796)
$ 123,336 $ 39,126
CWS Stonegate Arlington-Carmel Valley II, LP
15.45695% (76,972)(113,202) 66,656 21,146
Carmel Valley II, LP
42.61746%(229,063)(328,954) 177,725 56,380
CWS Stonegate Austin-Carmel Valley II, LP
13.36724% (64,043) (95,374) 54,687 17,348
$(521,936)
$(756,325)
$422,404 $134,000
LLTX - Carmel Valley IIB, LP ***(189,993)(274,477) 152,497 48,377
Year 2009 Actual
Year 2010 Projected
( in millions )
( in millions )
Total Revenues $
3.10
Total Revenues $
1.39
2.90
1.42
Debt Service $
1.22
Debt Service $
1.22
0.23
0.31
Distributions
$
0.42
Distributions
$
0.13
.PG.
50
t h e mar qu i s o f carm e l va l l e y
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Net Rental Income
$ 3,761,771 $ 3,479,931
Other Income
314,906 304,362
Interest Income
1,552 0
Total Revenues
$ 4,078,230 $ 3,784,294
Payroll & Benefits (465,247) (489,715)
(58,278)
(72,367)
Turnover Costs
(80,305)
(69,609)
(62,112)
(52,613)
(97,839) (101,501)
(80,773)
(97,470)
Utilities (211,827) (207,169)
Insurance
(95,695)
(96,768)
Property Taxes (400,196) (398,076)
$(1,681,554)
$(1,705,728)
$ 2,396,676 $ 2,078,565
$(1,660,750)
Reserves (Net)
(15,784)
0
7,881
58,589
$ 391,772
$ 167,000
$ 391,772 $ 167,000
Projected
Earnings
Year 2010
$ 2,396,676 $ 2,078,565
Amortization
(75,464)
(75,464)
$ (775,521)
Property Highlights
2009
Average Market Rent
$
Loan Information
Lender
Loan Balance
as of 12/2009
Nomura Credit
& Capital
2010
7.02%
80.92%
94.41%
914 $
Interest Rate
$28,000,000 2009
Projected
Taxable
Income
Ownership
Percentage
Actual
Earnings
Year 2009
5.85%
2010
Projected
Taxable
Income
2009 Actual
Limited
Partner
Distributions
2.99%
74.53%
92.52%
918
Maturity Date
March, 2013
2010 Projected
Limited
Partner
Distributions
CWS Carmel Valley Assoc, LP
62.02000%
$(341,842)
$(546,092)
$242,977 $103,573
CWS Carmel Valley 97, LP
6.82100% (28,219) (50,682) 26,723 11,391
CWS Stonegate Austin-Carmel Valley, LP
31.15900% (76,131) (178,746)122,072
52,036
$(446,192)
$ (775,521)
$ 391,772 $167,000
CWS Carmel Valley 97, LLP ***
(5,151) (8,228) 3,661
1,561
Year 2009 Actual
Year 2010 Projected
( in millions )
( in millions )
Total Revenues $
4.08
Total Revenues $
1.68
3.78
1.71
Debt Service $
1.66
Debt Service $
1.66
0.34
0.31
Distributions
$
0.39
Distributions
$
0.17
.PG.
51
t h e p r e s e rv e at b a l l a n t y n e c o mm o n s
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Net Rental Income
$ 2,915,352
$ 2,754,469
Other Income
166,614 162,722
Interest Income
745 0
Total Revenues
$ 3,082,711 $ 2,917,190
Payroll & Benefits
$ (357,238)
$ (333,790)
(43,489)
(60,229)
Turnover Costs
(48,911)
(71,073)
(31,565)
(35,782)
(78,105)
(81,391)
(60,627)
(75,209)
Utilities (152,261)
(160,188)
Insurance
(66,000)
(66,540)
Property Taxes (303,458) (301,224)
Management Expenses
(98,085)
(91,416)
$(1,239,740)
$(1,276,842)
$ 1,842,971 $ 1,640,348
$(1,560,135)
(110,114)
Reserves (Net)
(5,814)
0
111,518
302,099
$
67,760 $
0
$
67,760 $
0
CWS Stonegate Arlington-Ballantyne, LP
CWS Lamplighter TX-Ballantyne, LP
CWS Crystal Lake-Ballantyne, LP
CWS Diamond Valley-Ballantyne, LP
CWS Friendly Village-Ballantyne, LP
CWS Palm Valley-Ballantyne, LP
CWS Shadow Hills-Ballantyne, LP
CWS Sunset-Ballantyne, LP
CWS Univ Winterhaven-Ballantyne, LP
Private Trust*
Private Trust*
Year 2009 Actual
Property Highlights
2009
Outstanding Investment (ROI) Average Economic Occupancy Average Physical Occupancy Average Market Rent
$
Loan Information
Lender
Loan Balance
as of 12/2009
2009
Projected
Taxable
Income
2010
1.00%
80.25%
94.33%
1,121 $
Interest Rate
Metropolitan Life
Insurance Company $21,172,368 0.00%
77.75%
92.23%
1,093
Maturity Date
6.08% September, 2011
2010
Projected
Taxable
Income
2009 Actual
Limited
Partner
Distributions
2010 Projected
Limited
Partner
Distributions
6.34510%
$ (19,057)
$ (26,912)
$ 4,490 $ 0
10.73990% (50,170) (63,465) 7,600 0
3.89000% (21,693) (26,509) 2,611 0
4.92220% (19,779) (25,872) 3,303 0
18.91040% (72,699) (96,109)12,691 0
15.61900% (50,441) (69,776)10,482 0
5.32930% (5,622) (12,219) 3,576 0
13.04480% (34,346) (50,494) 8,754 0
14.28750% (67,461) (85,148) 9,588 0
2.98020% 9,730 6,041 2,000 0
3.93160% 3,562 (1,305) 2,664 0
$(327,976)
$(451,770)
$67,760 $ 0
Year 2010 Projected
( in millions )
( in millions )
Total Revenues $
3.08
Total Revenues $
2.92
1.24
1.28
Debt Service $
1.56
Debt Service $
1.56
0.32
0.38
Distributions
$
0.68
Distributions
$
0.00
.PG.
Projected
Earnings
Year 2010
$ 1,842,971 $ 1,640,348
Amortization
(95,637)
(29,606)
(126,115)
(110,114)
$ (327,976)
$ (451,770)
Ownership
Percentage
Actual
Earnings
Year 2009
52
Raleigh
R
Financial
e
g
f e a t u r e d
i
o
n
smart
p r o p e r t i e s
guidance
Investing
for a
for
The Marquis on Cary Parkway*
The Marquis on Edwards Mill*
The Marquis at Preston*
The Marquis at Silverton*
turbulent
economy
today’s
landscape
CWS C
ta
api
rt n
l Pa
ers
.PG.
53
2009 Ann
ua l
Re p
ort
S o u r c e s
Greater Raleigh Chamber of Commerce, The Research Triangle Park, Real Estate Center at Texas A&M University, REIS, U.S. Bureau of Labor Statistics, and Federal
Housing Finance Agency
98
Durham
15
1
70
147
50
540
Raleigh-Durham
International
Airport
40
Morrisville
New Hope
• The Marquis
at Silverton
• The Marquis at Preston
55
401
• The Marquis at Edwards Mill
North
Carolina
State
University
• The Marquis on Cary Parkway
440
Raleigh
1
64
401
The Raleigh-Durham-Cary MSA has a diverse employment base consisting primarily
of technology, government, biotechnology,
and education. While the local economy has
been impacted by the recession, it has fared
better than most. Through December of
2009, employment had decreased by 16,400
jobs, or by approximately 2% compared to
the prior year. As of 3Q2009, housing prices had declined by 2.8% over the preceding
year, slightly better than the national average decline of 3.8%.
Raleigh is consistently ranked among the
nation’s best places to live and work. Within the past year, Forbes.com ranked Raleigh
as the top metro for Business and Careers,
70
Bizjournals rated it as the best city for small
business, and the U.S. Census Bureau rated
it as the fastest growing Metropolitan Area
in the U.S. Multi-family units permitted
in 2009 were substantially lower than the
2008 level, dropping to approximately 1,600
units. As of 3Q2009, vacancy was estimated
to be 8.3%. Further increases in vacancy are
expected, with a vacancy rate of 9.4% anticipated for 4Q2010. At that time, vacancy is
expected to reverse and begin dropping. No
change in effective rent levels is expected
in 2010 but increases are expected to be in
the 1.0% to 3.0% range over the following
three years.
.PG.
54
R a l e i gh : 4t h Qua rt e r
Metro Highlights
.PG.
55
R
Financial
Denver
e
g
f e a t u r e d
i
o
n
smart
p r o p e r t i e s
guidance
Investing
for a
for
Marquis at the Parkway*
The Marquis at Town Centre
turbulent
today’s
economy
landscape
CWS C
ta
api
rt n
l Pa
ers
.PG.
56
2009 Ann
ua l
Re p
ort
S o u r c e s
REIS, Broomfield Chamber of Commerce
Broomfield
36
• The Marquis at Town Centre
76
Denver
International
Airport
Thornton
Westminster
270
70
Lakewood
6
• Marquis at the Parkway
Denver
470
70
Aurora
225
470
25
40
285
Englewood
Denver
Tech Center
Metro Denver has an enviable quality of
life that makes it one of the best places in
the United States to live and work. Denver continues to offer a lifestyle that attracts young, educated workers and is also
home to 11 Fortune 500 companies such
as Qwest Communications and Molson
Coors Brewing. Denver has experienced
a loss in employment of -3.6% as of December 2009. The housing downturn and
financial market failures have impacted
the local economy allowing vacancy to rise
to an average of 9.0% during 2009. Construction of apartment units increased
1.6% over 2008 with 2,770 units completed in 2009. In addition, the metro has an
estimated 5,600 proposed units to be delivered between now and the end of 2012.
The Denver apartment market outlook for
growth is healthy but not robust. However,
Denver has a diverse set of economic drivers, including aerospace, energy, technology, biotech, and environmental research,
which should provide stability.
.PG.
57
D E N V E R : 4t h qua rt er
Metro Highlights
.PG.
58
Broomfield
Broomfield’s economy is very diversified with significant employment in technology, manufacturing,
services, retail and wholesale trade, government,
and construction. High-tech manufacturing accounts for over half of the jobs in Broomfield/Boulder Counties. More than 700 firms employ 30,000+
employees in high-tech research, manufacturing
and information technology services in the northwest quadrant of metro Denver. The US 36 corridor
and the Interlocken Advanced Technology Environment, a 963-acre business park, are home to IBM,
Sun Microsystems, Ball Corporation, Level 3 Communications, Seagate Technology, Hunter Douglas
and ValleyLab. ConocoPhillips, the Houston-based
energy giant, expects to open 1.6 million square feet
of facilities (more than half of its new campus) by
2013 in Louisville, CO (minutes from Broomfield).
The campus will occupy Conoco’s global training
facilities and new energy research and development
center. By 2032, the ConocoPhillips campus could
eventually employ up to 7,000 at the former Storage
Tek campus. The Marquis at Town Centre provides
residents with convenient access to downtown Denver and Boulder via US 36.
Occupancy rates in the Broomfield submarket
hovered in the 92% range during the year of 2009.
There are no new units under construction in the
Broomf ield /Interlocken submarket. In addition,
there are no immediate units in the planning/proposed stages of the development pipeline until 2012.
.PG.
59
t h e mar qu i s at t o w n c e n t r e
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Net Rental Income
$ 3,124,933 $ 2,932,142
Other Income
373,837 402,789
Interest Income
1,237 0
Total Revenues
$ 3,500,007 $ 3,334,932
Payroll & Benefits
$ (327,993)
$ (352,233)
(64,767)
(73,229)
Turnover Costs
(36,018)
(30,735)
(45,488)
(42,463)
(72,739)
(57,516)
(64,968)
(68,654)
Utilities (241,103) (250,793)
Insurance
(68,315)
(72,492)
Property Taxes (209,434) (207,005)
Management Expenses $117,654)
(117,148)
$(1,248,479)
$(1,272,268)
$ 2,251,528 $ 2,062,663
$(1,785,400)
(93,299)
0 500,000
Reserves (Net)
51,320 23,265
Cost to Refinance
0 (500,000)
49,853 115,631
202,649 232,607
$
0
$
0
$
0
$
0
Projected
Earnings
Year 2010
$ 2,251,528 $ 2,062,663
(345,398)
(375,398)
Estimated Depreciation
(938,636)
(941,910)
Amortization
(32,263)
(21,607)
(113,225)
(93,299)
Projected Taxable Income / (Loss) $ (1,075,674)
$($1,154,951)
Property Highlights
2009
Loan Information
Lender
Loan Balance
as of 12/2009
2009
Projected
Taxable
Income
2010
0.00%
76.45%
93.59%
1,204 $
Interest Rate
Freddie Mac
$23,573,665 Town Centre
Lender Group 1 2,215,803 Town Centre
Lender Group 2 1,016,597 Ownership
Percentage
Actual
Earnings
Year 2009
2010
Projected
Taxable
Income
Maturity Date
8.05%
August, 2010
11.00%
December, 2010
10.00%
December, 2010
2009 Actual
Limited
Partner
Distributions
TIG-Town Centre, LP
Tropicana-Town Centre, LP
FVLA-Town Centre, LP
Creekside-Town Centre, LP
Metric-Town Centre, LP
Shadowood-Town Centre, LP
Private Trust*
0.00%
72.10%
91.10%
1,197
2010 Projected
Limited
Partner
Distributions
3.90505% $ (42,910)
$ (46,006)
$0 $0
3.90505% (42,609) (45,705)0 0
2.59133% (26,751) (28,805)0 0
38.86024% (542,091) (572,898)0 0
23.05870% (156,209) (174,489)0 0
24.39020% (260,595) (279,931)0 0
3.28943%
(4,508)
(7,116)0 0
$(1,075,674)
$(1,154,951)
$0 $0
Year 2009 Actual
Year 2010 Projected
( in millions )
( in millions )
Total Revenues $
3.50
Total Revenues $
3.33
1.25
1.27
Debt Service $
2.24
Debt Service $
2.16
0.31
0.27
.PG.
60
R
Financial
Canada
e
g
f e a t u r e d
i
o
n
smart
p r o p e r t i e s
guidance
Investing
for a
for
Crestway Bays
Crispen Bays
Breakaway Bays
turbulent
economy
today’s
landscape
CWS C
ta
api
rt n
l Pa
ers
.PG.
61
2009 Ann
ua l
Re p
ort
S o u r c e s
Canadian National and British Columbia, B.C. Stats
1
• Crestway Bays
• Crispen Bays
Delta
15
99A
91
Cloverdale
10
Langley
Surrey
10
99
British Columbia
Semiahmoo Bay
• Breakaway Bays
White Rock
It is estimated Surrey will surpass Vancouver as British Columbia’s most populous city
within two decades. Current population of
the City of Surrey is 461,160. The number
added to the population in the last 10 years
has been 100,250. The labour market has
improved by +1.0% thus creating growth in
employment and wages. In the Fraser Val-
ley, housing prices during 2009 increased on
average by 7.2% for single-family detached
homes, 1.4% for townhouses, and -0.3% for
condominiums/apartments when compared
to December 2008. Demand for housing in
the area is currently below average and projects are no longer being sold out prior to or
during construction.
.PG.
62
c a na d a m a n u fa c t u r e d h o u s i n g C o m m u n i t i e s
The Neighborhood
Breakaway Bays – Breakaway Bays is located approximately 10 minutes away from the newly completed
Morgan Crossing, a “Big Box” mall with anchors including Wal-Mart, Home Depot, Future Shop, Best
Buy, and The Brick. A second phase for a commercial
complex has been started promoting “village life”. As
the boomer generation down sizes, many are looking
at condominium living. As an extension of the “Big
Box” mall complex, over 450 condominiums have
been constructed above a first floor of commercial
specialty stores. Condominiums start at $439,000
and go up to $739,000. As of January 2010 sales were
very slow.
Adjacent to the “Big Box” mall complex is a 100acre residential development consisting of single-family homes, narrow lot subdivisions, townhomes and
condominiums along with schools and green areas all
started in 2006. The expected completion has been
extended due to a major decline in residential sales for
the first 9 months of 2009. Sales in this specific area
were improving as of January 2010.
A former green recycling acreage, Stokes Pit, 15
minutes northeast of Breakaway Bays has been par-
tially redeveloped as a light industrial park. During
2009, there was minimal to no improvement of occupancy in this light industrial strip mall. Approximately 50% of the units are still vacant.
The City of Surrey is still actively widening main
arteries to improve traffic flow.
South Point is a popular shopping center catering
to mid-to-upper income clientele. A large multi-unit
assisted living development, very close to South Point
mall, is now completely occupied. Expansion that was
planned for 2009/2010 has been placed on hold.
The redevelopment and upgrading of the commercial buildings on White Rocks East Beach is progressing very slowly.
In White Rock City, two high rise condominium
projects were scheduled to progress through 2009.
One tower of a planned three-tower project (22-story
complex) has been completed. Construction of the
second and third towers has been placed on hold. The
second high rise project, across from the first, has
been placed on hold indefinitely.
Crestway & Crispen Bays – Tower #1 of the Infinity
five-tower urban village project (three kilometers
.PG.
63
Submarket Discussion (continued)
north of Crestway and Crispen Bays), is complete and
occupied. However, towers #2 and #3 and the rest of
the Infinity complex in central Surrey, together with
the Sky Towers have stalled. In their place, another
development plan with higher density has been proposed and is being considered by the city.
According to economic data from the city of Surrey, new construction, through December 2009, has
created 546,981 sq. ft. of commercial development
valued at $94.7 million and 512,789 sq. ft. of industrial development valued at $27.4 million.
T h e R e s i d e nt i a l H o u s i n g M a r k e t
The Provincial Liberal Government has encouraged
development, growth and financial stability within
the Province of B.C. Developers have tried to embrace
this attitude. As developers build on all the available
vacant land, new development is forced to move towards high rises and further into the suburban areas.
The developers are encountering resistance whenever
they try to expand in the suburban areas from the Agricultural Land Reserve (ALR), which is a Provincial
Government Agency created to preserve farm land.
Farm land is untouchable with respect to redevelopment potential.
Due to the world-wide financial crisis, building
activity has softened and some construction/development has been delayed. Construction for the 2010
Olympics is a major factor for short-term employment
growth in the lower mainland.
The centralized location of Crispen & Crestway
Bays provides affordable living in an economic zone.
Breakaway Bays is in a suburban area providing alternative upscale lifestyle for individuals desiring affordable living.
Work projects funded by various levels of government that were successful in counteracting the
recessionary financial crisis have been replaced with
private construction/redevelopment contracts.
As shown below, the median selling price in 2009
for Surrey is in a state of correction, since the median
selling price for 2009 is lower than 2008.
2007
2009
$ 512,000
$ 520,000
$ 510,000
Townhouse
$ 320,000
$ 330,000
$ 316,000
Condominiums $ 200,000
$ 210,000
$203,000
January 2009 was the worse real estate market
in twenty years. On a positive note, December 2009
was the 3rd best in the last two decades with multiple
fluctuations from February to November.
Mortg ag e R at e s
Long-term closed mortgage rates (five-year) are currently 5.49% in 2010 compared to 6.75% in 2009
whereas variable, open rates have changed from
4.10% in 2009 to 2.25% in 2010. Due to the financial
crisis, the Bank of Canada rate changed as follows.
By mid-February 2009, the rate was lowered to 1.0%
from 1.5%, by March 2009 it was lowered to 0.5%,
then by April/May 2009 it was lowered again to the
current 0.25%.
The Competition
During 2009, townhouses and condominium building permits totaled 488 units. Of those units, 302
were townhouses and 186 were condominiums/apartments. For 2009, the total value of residential building permits was $504.1 million compared to $958.5
million in 2008.
Developers continue to take a cautious approach
(mainly due to the fluctuations in the real estate market) of utilizing the narrow lot concept subdivisions
approved eight years ago, featuring 33 ft. wide lots.
There were no new manufactured housing projects built in 2009 and as of today, none are being proposed for 2010.
O p e r a t i o n a l Act i v i t y
The consolidated NOI for 2010 is projected to be
$4,113,446 . This is a 3.1% increase over the 2009
NOI of $3,987,655.
.PG.
2008
Residential
64
Submarket Discussion (continued)
The primary operational focus is increasing
revenues by maximizing the rental increases and increasing the occupancy when there is a vacancy in the
communities. The B.C. Residential Tenancy Board
allows a maximum site rental increase of 3.2% plus
the increase of government levies (electric, property
taxes, utilities) for 2010. Our Canadian affiliate,
Synergy Service Realty, continues to work in all the
communities to sell both inventory model homes and
brokerage homes. With the current dip in average
selling prices of residential homes, townhouses and
condominiums, the manufactured home community
lifestyle still continues to be both appealing and affordable to buyers.
In 2010, all the communities will continue to offer
the residents’ qualifying referral programs. There was a
net increase of one resident occupied space during 2009.
There are only two vacant spaces (Crestway
Bays) left in the Canadian portfolio of 656 spaces.
The Canadian Communities will continue to
provide value and service to the residents in addition to maintaining the high standards established
by CWS Communities.
The secondary operational focus for 2010 is to
continue to control expenses. The cost savings measures are being achieved through preventative maintenance, competitive contractor quotes, and closely
adhering to the 2010 budgets.
T h e M a n u f a ct u r e d H o u s i n g M a r k e t
The manufactured housing industry in B.C. has not
yet recovered from the slowdown created by the world
financial crisis. For a second year in a row, multisection shipments in B.C. area were down to 439 units
in 2009 from 485 units in 2008. Single section shipments during 2009 were 287 units, down from 341
units in 2008.
The lack of demand for the aging 12’ wide homes
is still an issue. 12’ wide homes made up 55% of
the total 656 home sites in the Canadian portfolio
in 2009. Other manufactured housing communities
with substantially lower rents, ranging between $506
and $713 per month compete for customers.
In 2009, the resident-occupied spaces in the CWS
Communities was 650 of 656 home sites (Breakaway
~ one model home, Crestway ~ two model homes &
two vacant spaces, Crispen Bays ~ one model home).
In November, 2009 the new home model was sited in
Breakaway Bays.
A s s e t M a n a g e m e nt
The asset management plan for 2010 remains fundamentally identical to 2009. The Canadian team
will continue to search for qualified homes suited for
purchase to fill the remaining vacant home sites in
our communities. Our team will work with prospective residents to pre-sell these homes before they are
sited in the community. The team will also monitor homes that might leave a community and will
present offers to purchase those homes if they are
desirable. Some of the homes we purchase may be relocated within our communities, especially if the site
will suit a multi-section home and makes economic
sense. Double-section homes are more appealing to
today’s homebuyers.
For 2010, the team will continue to try and attract residents that are being forced to relocate by
redevelopment. We will also be searching for homeowners wanting to relocate from other manufactured
home communities in the area. Currently, large developers are applying for high density redevelopment
permits in a number of existing manufactured home
communities. The Canadian team is targeting these
potential residents to relocate or upgrade to Crestway or Crispen Bays. The focus at Breakaway Bays is
continuing to site and sell new homes when a vacant
home site becomes available.
Sales of all property types for the year 2009
declined 8% in the geographical area of our communities. This decline is similar to changes in the
economy overall and the slowdown was predicated
during 2Q2008.
.PG.
65
ca na d a ma n u fac t u r e d h o u s i n g C o mm u n i t i e s
Earnings Overview
Actual
Earnings
Year 2009
Projected
Earnings
Year 2010
Actual
Earnings
Year 2009
Net Rental Income
$ 5,655,428 $ 5,895,186
Other Income
22,290 18,724
Interest Income
(70)
0
Total Revenues
$ 5,677,649 $ 5,913,910
Payroll & Benefits
$ (431,473)
$ (467,411)
(9,504)
(10,399)
(37,979)
(35,342)
(86,843)
(80,588)
Utilities (486,915) (566,373)
Insurance
(56,501)
(56,225)
Property Taxes (230,226) (238,429)
(192,417)
$(1,689,995)
$(1,800,464)
$ 3,987,655 $ 4,113,446
$(1,358,160)
(112,417)
(81,095)
(193,670)
Synergy Operations
(64,848)
(59,214)
Cash from/(to) Reserves (268,097) (421,307)
$ 2,000,000 $ 2,000,000
$ 1,000,000 $ 1,000,000
$ 3,987,655 $ 4,113,446
Amortization
0 0
Projected Taxable Income / (Loss) $ 2,271,472 $ 2,387,726
Property Highlights
2009
Loan Information
Lender
Loan Balance
as of 12/2009
Canadian Mobile Home Communities
Hermitage Oaks of Texas
Irvine Meadows Associates*
Year 2009 Actual
2009
Projected
Taxable
Income
Ownership
Percentage
Interest Rate
2010
Projected
Taxable
Income
5.21%
2009 Actual
Limited
Partner
Distributions
N/A
94.33%
99.20%
794
Maturity Date
November, 2012
2010 Projected
Limited
Partner
Distributions
37.50780% $ 778,123 $ 821,727 $ 375,078 $ 375,078
16.15200% 360,163 378,940
161,520 161,520
46.34020% 1,133,186 1,187,058 463,402 463,402
$2,271,472 $2,387,726 $1,000,000
$1,000,000
Year 2010 Projected
( in millions )
( in millions )
Total Revenues $
5.68
Total Revenues $
5.91
1.69
1.80
1.36
Debt Service $
1.36
Debt Service $
0.63
0.76
Distributions
$
1.00
Distributions
$
1.00
.PG.
2010
N/A
92.81%
99.04%
774 $
Great West Life
Assurance Company $26,350,000 Allocations by Tenant-In-Common
Projected
Earnings
Year 2010
66

2009 Supplemental - CWS Capital Partners LLC

Transcription

Similar documents

COVER SHEET FOR THE CEMALA FOUNDATION GRANT PACKET

Lake Underhill Road Roadway Reconstruction (From Alafaya Trail

Mutual funds provided through FundEX Investments Inc.

Investor Presentation - Small

WATCH YOUR SAVINGS ADD UP. GM ExtEndEd FAMILY CArd

Unlimited 1% earnings on pUrchases. impressive

get 1% earnings on purchases. and

Budget Worksheet - Nelnet Loan Servicing

Your Budget Planner

International Travel Reimbursements Form