5Story Underwriting

50 Monroe Ave NW, Grand Rapids, MI 49503•PURSUING•v3•Saved 4/28/2026

Deal Thesis

6-story wood V-A over concrete podium: 3,500 sf ground-floor retail on Monroe Ave, 60-space podium parking, 48 units stacked above. TN-CC permits this massing on a 0.42-acre lot (effective FAR 4.0 within OD-DH-1 overlay). Form-based zoning allows 0.5/unit parking ratio; we hit that at 60 spaces total factoring retail (1.5 per 1,000 sf) plus 50 residential.

Why this scenarioDefault BALANCED scenario using engine-computed numbers for dashboard display.

Cost basis vs. implied value over time

Stab. yr1 $4.0M → Yr11 $22.0M

Cost basis (acquisition + dev)Implied value (NOI ÷ exit cap)Underwater band

Equity cash flow + cumulative recovery

Breakeven Y11 · End cumulative $7.4M

Equity drawn (construction)Distributions to equityCumulative

Site

APN: 41-13-12-277-019
Acreage: 0.42 ac
Lot SF: 18,295 SF
Frontage: 90 LF

Zoning

District: TN-CC
Overlays: none
Confidence: HIGH

50 Monroe Ave NW, Grand Rapids, MI 49503 parcel map

Concept / Program

Total Units

Residential SF

43,850

Retail SF

3,500

Parking

60 (podium)

Buildable SF

73,000

Programmed SF

56,400

Efficiency

83%

Parking Ratio

1.25 / unit

Rent Roll (AI-estimated)

Unit Type	Avg SF	Count	Rent (Low / Base / High)	Status	Note
1 BR	700	15	$1900 / / $2250	Overridden	Comps from 550 Monroe and 60 Ottawa support $2,100; AI undershooting this block.
2 BR	950	25	$2450 / / $2850	Accepted
3 BR	1200	8	$3100 / / $3600	Accepted
Retail	3500	—	$28 / / $38	Overridden	90LF frontage · visibility 5/5

Total Development Cost — $18,386,139

	Total	% of TDC
Acquisition	$1,097,700	6.0%
▸▾Land acquisition$1,097,7006.0% Formula lot SF × $/SF heuristic by zoning category Inputs Lot SF18,295ArcGIS parcel $/SF$60industry default for mixed Computed$1.10M source: baseline
Hard Costs (CSI)	$13,096,143	71.2%
▸▾ 1General Requirements — General Requirements$916,7305.0% Quantity × Rate 56,400 SF_GBA × $16.25 = $916,730 source: baseline
▸▾ 3Concrete — Concrete / Foundations$1,047,6915.7% Quantity × Rate 56,400 SF_GBA × $18.58 = $1,047,691 source: baseline
▸▾ 4Masonry — Masonry$523,8462.8% Quantity × Rate 56,400 SF_GBA × $9.29 = $523,846 source: baseline
▸▾ 5Metals — Structural Steel / Framing$1,178,6536.4% Quantity × Rate 56,400 SF_GBA × $20.90 = $1,178,653 source: baseline
▸▾ 6Wood, Plastics, and Composites — Rough & Finish Carpentry$1,047,6915.7% Quantity × Rate 56,400 SF_GBA × $18.58 = $1,047,691 source: baseline
▸▾ 7Thermal and Moisture Protection — Thermal & Moisture Protection$523,8462.8% Quantity × Rate 56,400 SF_GBA × $9.29 = $523,846 source: baseline
▸▾ 8Openings — Doors, Windows, Storefront$654,8073.6% Quantity × Rate 56,400 SF_GBA × $11.61 = $654,807 source: baseline
▸▾ 9Finishes — Finishes (drywall, flooring, paint)$1,309,6147.1% Quantity × Rate 56,400 SF_GBA × $23.22 = $1,309,614 source: baseline
▸▾ 10Specialties — Specialties$261,9231.4% Quantity × Rate 56,400 SF_GBA × $4.64 = $261,923 source: baseline
▸▾ 12Furnishings — Furnishings / Appliances$392,8842.1% Quantity × Rate 56,400 SF_GBA × $6.97 = $392,884 source: baseline
▸▾ 14Conveying Equipment — Elevators / Conveying$392,8842.1% Quantity × Rate 56,400 SF_GBA × $6.97 = $392,884 source: baseline
▸▾ 21Fire Suppression — Fire Suppression$261,9231.4% Quantity × Rate 56,400 SF_GBA × $4.64 = $261,923 source: baseline
▸▾ 22Plumbing — Plumbing$1,047,6915.7% Quantity × Rate 56,400 SF_GBA × $18.58 = $1,047,691 source: baseline
▸▾ 23Heating, Ventilating, and Air Conditioning (HVAC) — HVAC$1,309,6147.1% Quantity × Rate 56,400 SF_GBA × $23.22 = $1,309,614 source: baseline
▸▾ 26Electrical — Electrical$1,178,6536.4% Quantity × Rate 56,400 SF_GBA × $20.90 = $1,178,653 source: baseline
▸▾ 27Communications — Communications / Data$65,4810.4% Quantity × Rate 56,400 SF_GBA × $1.16 = $65,481 source: baseline
▸▾ 28Electronic Safety and Security — Security / Access Control$65,4810.4% Quantity × Rate 56,400 SF_GBA × $1.16 = $65,481 source: baseline
▸▾ 31Earthwork — Earthwork$261,9231.4% Quantity × Rate 56,400 SF_GBA × $4.64 = $261,923 source: baseline
▸▾ 32Exterior Improvements — Exterior Improvements$392,8842.1% Quantity × Rate 56,400 SF_GBA × $6.97 = $392,884 source: baseline
▸▾ 33Utilities — Site Utilities$261,9231.4% Quantity × Rate 56,400 SF_GBA × $4.64 = $261,923 source: baseline
Soft Costs	$73,180	0.4%
▸▾Construction-period property taxes$73,1800.4% Formula land value × land millage × construction years Inputs Land value$1.10MAcquisition above Land millage (GR)40 mills Years1.67 Computed$73K source: baseline
Financing	$725,611	3.9%
▸▾Lender fees / origination$106,1870.6% Formula loan amount × lender fee bps Inputs Loan amount$10.62MDebt sizing Lender fees100 bps (1.00%)Debt assumptions Computed$106K source: baseline
▸▾Construction loan interest$619,4243.4% Formula 0.50 (avg outstanding) × loan amount × construction rate × construction years Inputs Loan amount$10.62MDebt sizing Construction rate7.00%Debt assumptions Construction term20 mo (1.67 yr)Schedule Avg outstanding50%industry default Computed$619K source: baseline
Insurance	$65,481	0.4%
▸▾Builder's risk insurance$65,4810.4% Formula 0.50% × hard cost Inputs Hard cost$13.10MCost estimator Rate0.50% Computed$65K source: baseline
Reserves	$534,028	2.9%
▸▾Operating reserve (6 months OpEx)$267,0141.5% Formula 6 months × monthly stabilized OpEx Inputs Months6 Monthly OpEx$45KPro forma Computed$267K source: baseline
▸▾Lease-up operating reserve$267,0141.5% Formula lease-up months × monthly stabilized OpEx × 50% (avg occupancy shortfall) Inputs Lease-up months12 moSchedule Monthly OpEx$45KPro forma Shortfall factor50% Computed$267K source: baseline
Marketing + Leasing	$133,842	0.7%
▸▾Marketing + leasing commissions (initial lease-up)$133,8420.7% Formula 1 month × gross potential rent (one-time) Inputs Monthly GPR$134KPro forma Months1.0 Computed$134K source: baseline
Total Development Cost	$18,386,139	100%

Sources & Uses

Sources	Amount
Construction / Permanent Loan (debt)	$10,618,701
Sponsor / LP Equity (equity)	$7,767,438
Total Sources	$18,386,139

Uses	Amount
Hard Costs	$13,096,143
Soft Costs	$597,026
Contingency	$785,769
GC Fee	$720,288
Developer Fee	$630,252
Other / Reconciliation	$2,556,662
Total Uses	$18,386,139

Land Value (Residual) Solver

Holds the concept, rents, hard cost, and debt assumptions constant. Solves for the maximum acquisition cost that still meets the targets you set, accounting for the soft-cost ripple (loan amount, construction interest, reserves all re-resolve as land moves).

Target equity multiple

x — leave blank to ignore

Target IRR (levered)

% — leave blank to ignore

Hold years

exit at year N

Debt Sizing

Loan Amount: $10,618,701
Annual Debt Service: $826,472
DSCR (actual): 1.200x
LTC (actual): 57.75%
LTV (actual): 61.56%
Debt Yield: 9.34%
Binding: DSCR
Equity Required: $7,767,438

Assumptions

Construction rate: 7.00%
Permanent rate: 6.75%
Amortization: 30 yr
IO period: 24 mo
Target LTC: 83%
Min DSCR: 1.20x

DSCR Sensitivity (rent × cost)

Computed from current scenario inputs by re-running the engine for each cell.

Cost ↓ / Rent →	-10%	BASE	+10%
+10%	1.08	1.20	1.32
BASE	1.08	1.20	1.32
-10%	1.08	1.20	1.32

Stabilized Pro Forma

Gross Potential Rent	$1,606,100
Vacancy Loss (5%)	$-80,305
Effective Gross Income	$1,525,795
Operating Expenses (35% of EGI)	$-534,028
NOI	$991,767
÷ Exit Cap (5.75%)	$17,248,117

Cash Flow (12 years)

Yr	Phase	Revenue	OpEx	NOI	Debt Service	Cash Flow	Equity Flow
0	CONSTRUCTION	$0	$0	$0	$0	$0	$-4,660,463
1	CONSTRUCTION	$0	$0	$0	$0	$0	$-3,106,975
2	LEASE_UP	$762,898	$534,028	$228,869	$826,472	$-597,603	$-597,603
3	STABILIZED	$1,563,940	$544,709	$1,019,231	$826,472	$192,759	$192,759
4	STABILIZED	$1,603,038	$555,603	$1,047,435	$826,472	$220,963	$220,963
5	STABILIZED	$1,643,114	$566,715	$1,076,399	$826,472	$249,927	$249,927
6	STABILIZED	$1,684,192	$578,049	$1,106,143	$826,472	$279,671	$279,671
7	STABILIZED	$1,726,297	$589,610	$1,136,687	$826,472	$310,214	$310,214
8	STABILIZED	$1,769,454	$601,403	$1,168,052	$826,472	$341,580	$341,580
9	STABILIZED	$1,813,691	$613,431	$1,200,260	$826,472	$373,788	$373,788
10	STABILIZED	$1,859,033	$625,699	$1,233,334	$826,472	$406,862	$406,862
11	SALE	$1,905,509	$638,213	$1,267,296	$826,472	$440,823	$13,369,051

Incentive Stack

Default stab AV (50% of stabilized value): $8,624,059

Brownfield Act 381 / PA 90 Housing TIFAI defaults

$0 total · max annual $0

Neighborhood Enterprise Zone (PA 147)AI defaults

$0 total · max annual $0

Obsolete Property Rehab Act (PA 146)AI defaults

$0 total · max annual $0

PILOT (Section 7d / 15a)AI defaults

$0 total · max annual $0

PILOT requires a qualifying affordability commitment.

MCRP (MEDC Community Revitalization)AI defaults

$0 total · max annual $0

LIHTC 4% + Private Activity Bondscoming soon

LIHTC 9% (Competitive)coming soon

Federal Historic Tax Credit (20%)coming soon

Michigan State Historic Tax Credit (25%)coming soon

Combined Stack Value

$0 (TDC reduction $0, cash-flow savings $0 over 0y)

AI Assumptions

10 total · 8 accepted · 2 overridden · 0 pending

Field	Value	Source	Confidence	State	Note
concept.unitMix	{"mix":[{"count":15,"bedrooms":1},{"count":25,"bedrooms":2},{"count":8,"bedrooms":3}]}	unit-mix-v1	HIGH	Accepted	Mix accepted as proposed; matches buildable envelope and submarket demand.
zoning.envelope.maxFar	4	zoning-interpret-v1	HIGH	Accepted	Base district TN-CC permits FAR 4.
costs.adjustmentPct	0.03	cost-adjustment-v1	MEDIUM	Accepted	Grand Rapids hard-cost premium ~3% above raw industry baseline due to labor tightness.
concept.retail.visibilityScore	3	concept-v1	MEDIUM	Overridden	Monroe Ave NW gets heavy foot traffic from downtown workers
concept.retail.rentBase	34	rent-estimate-v1	HIGH	Accepted	NNN retail at $34/sf/yr; tier-2 corridor average for Grand Rapids neighborhood retail.
concept.unitTypes[2].rentBase	3350	rent-estimate-v1	MEDIUM	Accepted	3BR estimated at $3350/mo per comps within 1mi (CoStar Q1-2026, Rentometer, Zillow); sfAvg 1200sf.
concept.unitTypes[1].rentBase	2625	rent-estimate-v1	HIGH	Accepted	2BR estimated at $2625/mo per comps within 1mi (CoStar Q1-2026, Rentometer, Zillow); sfAvg 950sf.
concept.unitTypes[0].rentBase	1950	rent-estimate-v1	MEDIUM	Overridden	Comps from 550 Monroe and 60 Ottawa support $2,100; AI undershooting this block.
concept.parkingSpaces	60	concept-v1	HIGH	Accepted	60 spaces satisfies the TN-CC ratio of 0.5/unit (and retail minimums where applicable).
concept.totalUnits	48	concept-v1	HIGH	Accepted	AI sized the program at 48 units based on the buildable envelope and TN-CC form-based standards.

Override Log

Field	Old → New	Note	When
concept.retail.visibilityScore	3 → 5	Monroe Ave NW gets heavy foot traffic from downtown workers	4/28/2026
concept.unitTypes[0].rentBase	1950 → 2100	comps from 550 Monroe and 60 Ottawa support $2,100, AI undershooting this block	4/28/2026

5story.dev · v3 · cmoiumvy