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ta <br />www.FinanceDTA.com <br />SECTION II <br />LRV OF THE PROJECT <br />Based upon DTA's review of CoStar data, we assumed a market cap rate for retail property <br />of 4.75%. Although cap rates for retail products have risen recently, we concluded that the <br />Project will benefit from the projected 6,750 new tenants in the urban village setting. <br />Therefore, we adjusted the cap rate to approximately 5.5% due to the number of captive <br />consumers anticipated to live in the residential units in the urban village. <br />Figure 3: Retail Property Cap Rate <br />Cap Rate <br />ease <br />7-5% <br />4-6% <br />4 Q% <br />5.5% <br />3.6% is 14 � 15 ' F6 ! 57 I 79 I S9 I 20 I 2i I 22 ! <br />Below is a summary of anticipated revenues and expenses of the 250-room upscale hotel <br />product. <br />Table 9: NAV for the Hotel <br />Rooms <br />250 <br />Base Room Rent <br />$210.00 <br />$19,162,500 <br />104.66% <br />Vacancy <br />(30.00%) <br />($5,748,750) <br />(31.40%) <br />RevPAR <br />$147.00 <br />$13,413,750 <br />73.26% <br />Food Sales <br />16.00% <br />$23.52 <br />$2,146,200 <br />11.72% <br />Beverage Sales <br />7.50% <br />$11.03 <br />$1,006,031 <br />5.49% <br />Technology <br />3.00% <br />$4.41 <br />$402,413 <br />2.20% <br />Minor Departments <br />10.00% <br />$14.70 <br />$1,341,375 <br />7.33% <br />Total Non-RevPAR <br />Income <br />$53.66 <br />$4,896,019 <br />26.74% <br />Gross Hotel Revenue <br />$200.66 <br />$18,309,769 <br />100.00% <br />Hotel Expenses <br />Department Expenses <br />($63.43) <br />($5,788,033) <br />(31.61%) <br />Undistributed Operating Expenses <br />($60.27) <br />($5,499,638) <br />(30.04%) <br />Fixed Charges <br />($6.62) <br />($603,618.75) <br />($0.03) <br />Capital Reserves for FF&E <br />($2.94) <br />($268,275.00) <br />($0.01) <br />Total Expenses and Reserves <br />($133.26) <br />($12,159,564.38) <br />($0.66) <br />Net Operating Income <br />$67.40 <br />$6,150,204 <br />33.59% <br />NAV to 6.5% Cap Rate <br />6.50% <br />$94,619,000 <br />Related Bristol at 3600 South Bristol Street <br />Land Residual Value Study Report <br />Exhibit 10 <br />September 27, 2023 <br />/ 11 <br />