Located at the junction of Highway 29 and I-10, this affordable housing solution would be within walking distance to churches, schools, grocery stores, retail businesses, restaurants, and entertainment complexes.

The Property is approximately 53,520 square feet with 144 units, 122 of which are residential rooms. Twenty-two (22) units have been vacant for an extended period due to hurricane damage.

Sales information indicates that 22 of the units are suites. A specific detailed site plan will need to be obtained.

The listing information indicates that the lot size is 4.348 acres, was built in 1973, is zoned C-2, and is comprised of one, 2 story building, although the property tax information shows three separate two story buildings. There is also an office area, the size of which has not been determined. We estimate that each residential room is approximately 350 square feet, although some suites may be larger. Some units may be ADA compliant, but the number is undeterminable at this time. Renovation and tenant-mix may alter the total number of units available.

Further funding sources needed to complete the project are yet to be identified.
Funding sources could include the following:

• City of Pensacola
• Escambia County
• State of Florida
• Assumption of existing debt if any
• Creation of new debt
• Other sources

See Exhibit B – Sources and Uses of Funds for more details.

Other items for consideration on the Project include the following:

• After the above is determined, a project completion schedule will be developed.
• Since this is a hotel, we presume that a rezoning effort will likely be necessary through Escambia
  County. This effort can commence only after a Purchase/Sale agreement is executed and the LLC
  has official site control. The various costs, time, and resources needed to accomplish the
  rezoning efforts are currently unknown.
• Further investigation and conversation with Escambia County may be needed regarding
  additional renovation costs that may be triggered by added code requirements due to the
  zoning conversion from a hotel to housing.
• This building was constructed in 1973. As such, environmental testing will be required to test for
  asbestos and lead-based paints.
• The monthly tenant rents shown were determined by the U.S. Department of Housing and
  Urban Development (HUD). These rents will apply if any Federally sourced funds are used to
  acquire and/or renovate the Project. The tenant rent amounts used were determined as of May
  of 2023. HUD updates the rent amounts annually in April; however, an update has not yet been
  published for 2023. When published, the tenant rent projections will be adjusted accordingly.
• No decisions have been made regarding Project vendors including, but not limited to, an
  architect, legal counsel, general contractor, project manager, appraiser, environmental
  reviewers, surveyor, or property condition assessment contractor.
• As all the above items are completed/determined, a timeline will be developed, specifically
  working with the selected architect.
• Based on the assumptions used in the attached projections, this project could support debt of
  approximately $3,800,000, assuming a 30 year note at 7% interest. The other needed funding
  has not been identified/determined.
• This Project may be a candidate for Federal low-income housing tax credits (LIHTC). LIHTC
  financing is an extremely competitive process.
• The Project assumes some portion of the tenant mix will include populations that will require
  supportive services to assure they maintain their tenancy. Supportive services costs are included
  in the attached 15-year operating cost projections (Exhibit C – 15-Year Operating Pro Forma).
• The Project provides for both operating reserves and replacement reserves. A separate schedule
  with assumptions is attached (Exhibit D – Projected Operating and Replacement Reserves).