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Mr. Arne Gregory May 16, 1988 Page 3 units generally result in a $15.00 per month premium on the rent. Heated underground parking is commonly included in the rent in new projects, but can be compared to garage parking in several competitors at $15.00-$20.00 per month. Window treatments will command $5.00-$10.00 per month, and fireplaces generally get a $15.00 premium. Townhome style units also rent for slightly more than a comparable sized garden -style unit. The total of these amenities averages $50.00 per month for the 321 units. Other amenities, such as microwaves, central air conditioning, icemakers and upgraded carpeting are more qualitative than quantitative, and generally result in faster leaseup and stronger occupancy as opposed to higher face rents. Based on ,the preceding analysis, it is our opinion that the subject units would rent for the average rent per square foot at a minimum, and would command the premiums outlined in the previous paragraph. The potential rent for each unit type is developed below: Rent/ Minimum Plus Total Unit tvve Square feet Sq. Ft. Rent Amenities Rent 1 BR 800 $0.70 $560 $50.00 $610Jo 1 BR 850 $0.70 $595 $50.00 $645 2 BR 1,050 $0.65 $682 $50.00 $732 2 BR 1,076 $0.65 $700 $50.00 $750 3 BR 1,200 $0.62 $744 $50.00 $794 The analysis above is based on 1988 rent levels. We anticipate rents to increase at approximately of 5% annually, which is consistent with rent increa ses over the pas t _. p ten years in the Twin Cities area. In summary, it is our opinion that the project as proposed represents an excellent response tp- the apartment market in Roseville and the physical characteristics and constraints of the site. Considerable evidence of pent-up demand in the upscale rental market exists in Roseville, and although we have not performed an in-depth feasibility study, our experience in the Roseville area leads us to believe that the the market is very broad, meaning that the renter profile would be comprised of an even mix of young professionals, young married couples, and empty -nesters. The provision of luxury apartments for empty -nesters has been well -received it markets similar to Roseville, such as Edina, St. Louis Park, and Mendota Heights. We hope you find this analysis useful. Please feel free to call if you have any additional questions. Sincerely, SHENEHON & ASSOCIATES, INC. Michael F. Amundson Assistant Vice Pre ident 9 Robert J. Strachota, MAI, CRE President