Kappa Chapter is well underway in its efforts to replace the chapter house. The Kappa Foundation has been working hard over the past year and a half to get to this stage, having brought in experienced architectures, a guiding development company and a top-notch legal team.
Sinclair-hille has designed the House Layout above through extensive input from the undergraduate chapter, as well as members of the Kappa Foundation. The house is designed to have beds for 64-members on two floors. There is a walk-out balcony through a commons lounge; and supporting ammenities for both in-house and out-of-house brothers.
WRK, a Lincoln development company, and Kent Seacrest, a Lincoln zoning expert, have guided the Kappa Foundation through the initial phases of approaching City Planning. Using their advice and aide, Kappa Foundation anticipates bringing the project before City Planning before the end of the summer.
The Foundation anticipates having all the formalities completed by early Fall 2011. With the help of our supportive Alumni, Kappa Chapter hopes to move forward with the project and start building in May 2012.
Financial Analysis
Project Costs and Financing
& Annual Cash Flow
| Project Costs | ||
| Construction Costs | $4,000,000 | |
| Soft Costs & Furnishings | $600,000 | |
| Real Estate Purchase | $150,000 | |
| Total Development Cost | $4,750,000 | |
| Financing | ||
| Initial Appraised Value | $4,000,000 | |
| Loan-to-Value Ratio | 65% | |
| Loan Amount Available | $2,600,000 | |
| Project Gap | ||
| Total Development Cost | $4,750,000 | |
| Loan | ($2,600,000) | |
| Current Down Payment | ($1,100,000) | |
| Additional Funds Needed | $1,050,000 | |
| Loan Analysis | ||
| Loan | $2,600,000 | |
| Interest Rate | 6.50% | |
| Amort. - Years | 25 | |
| Annual Debt Service | $210,065 | |
| Income | ||
| Number of Beds | 64 | |
| Annual Rent per Bed | $5,500 | |
| Rental Income | $352,000 | |
| Kimmel Fundraising Project | $10,000 | |
| Annual Income | $362,000 | |
| Expenses | ||
| Maintenance | $13,775 | |
| Utilities | $29,720 | |
| General House | $9,801 | |
| House Mother | $9,057 | |
| Alumni Maintenance | $3,657 | |
| Alumni General House | $10,696 | |
| Alumni House Mother | $383 | |
| Real Estate Taxes | $58,555 | |
| Property Insurance | $10,100 | |
| Annual Expenses | $145,744 | |
| Net Cash Flow | ||
| Annual Income | $362,000 | |
| Annual Expenses | $145,744 | |
| Annual Debt Service | ($210,665) | |
| Annual Structural Reserve | ($5,425) | |
| Annual Cash Flow | $166 | |
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Alpha Gamma Rho |
1430 Idylwild Dr. |
Lincoln, NE 68503 |
(402) 436-6360 |