Pro Forma — Radiant Active Adult — JAK Development Group

⚠️ Permit Status: Radiant is fully designed & was permitted — but the permit has EXPIRED. Plans must be updated for code changes and re-submitted. Estimated cost: $800K ($200K plans + $400K permits/fees + $200K carry). Timeline: ~8 months for SDP.

💡 Key Takeaways — Georgetown TX

Total Project Cost: $50M (~$233,645/unit) — confirmed from Novak Summaries Feb 2026. 214 units on 9 acres, Williams Drive, Georgetown TX.
Stabilized NOI: $3,478K — 6.96% yield on cost (Atlas model). Novak quotes 6.55% YOC. The difference is Atlas using slightly more aggressive Georgetown rent assumptions. Novak's 6.55% is the confirmed target.
Exit Value: $73.2M at 4.75% cap rate — Active Adult commands premium cap rates. Dev spread of 180 bps (6.55% YOC − 4.75% exit).
LP IRR: 22.7% — confirmed from JAK F&F model. Land contribution $5.5M. F&F raise ($400K of $800K combined Mayfair+Radiant) is SEPARATE from JV structure.
Georgetown is THE market for Active Adult — Sun City Georgetown (Del Webb) is the largest active adult community in the world (~38,000 residents). Proven demand. Lower construction costs than Austin proper.

Total Project Cost

$50.0M

~$234K per unit · Georgetown TX

Unit Count

214

Active Adult / 55+ · 9 acres

Stabilized NOI

$3.28M

6.55% YOC (Novak confirmed)

Exit Cap Rate

4.75%

AA premium product

Dev Spread

180 bps

6.55% YOC − 4.75% exit

Est. Exit Value

$69.0M

NOI $3.28M ÷ 4.75%

LP IRR

22.7%

JAK F&F model confirmed

Equity Multiple

1.86×

Est. total · 15% to F&F

Permit Status

EXPIRED

$800K to re-permit

JAK F&F Model (Confirmed)

Total Project Cost~$50,000,000

Land Contribution$5,500,000

Construction Loan~$29,900,000

Exit / Sale Value~$70,700,000

LP IRR22.7%

Equity Multiple1.86×

Atlas Georgetown Model

Total Project Cost$50,000,000

Yield on Cost6.96%

Atlas NOI$3,478,000

Exit Cap Rate4.75%

Exit Value$73,221,000

Project IRR~22-24%

Why two NOI numbers? Novak's confirmed YOC of 6.55% implies NOI of $3.275M. Atlas's independent Georgetown rent model produces NOI of $3.478M (6.96% YOC). The $203K difference comes from Atlas's Georgetown rent assumptions being ~$60/unit/mo higher than what's needed to hit 6.55%. This means either (a) Novak's rent assumptions are slightly more conservative, or (b) Novak's OpEx assumptions are slightly higher. Either way, the deal works at BOTH numbers. Atlas uses Novak's 6.55% as the confirmed baseline and presents the Atlas model as the market-based upside.

Strengths — Georgetown Specific

Georgetown = Active Adult capital of Texas. Sun City Georgetown (Del Webb) has 38,000+ residents — the largest active adult community in the world. The demand is proven and deep.
Georgetown is consistently a top-5 fastest-growing city in the US — population growth validates the thesis
Construction costs in Georgetown/Williamson County run $160K-$185K/unit — 10-15% lower than Austin proper
Active Adult rents in Georgetown: $1,600-$2,200/unit/mo — lower than Austin but margins are better due to lower costs
180 bps development spread (6.55% YOC vs 4.75% exit cap) — strong value creation
Fully designed project — saves 12-18 months vs. starting from scratch

Watch Items

⚠️ PERMIT EXPIRED — Must update plans for code changes and re-permit. $800K cost, ~8 months. This is the #1 execution risk.
Existing $2.6M loan on site — must be addressed in capital stack (Novak's debt)
Georgetown rents are lower than Austin — $1,940 avg vs. Andy's original ~$2,200 assumption. The $260/unit/mo gap is meaningful.
Active Adult lease-up is slower (18-24 months) — 55+ renters are more deliberate
Limited institutional AA rental comps in Georgetown specifically (Sun City is for-sale, not rental)

Development Budget — Radiant Active Adult · Georgetown TX

Confirmed: Total Project Cost of ~$50,000,000 from Novak Summaries Feb 2026. Land value $5,000,000 (Novak in-kind contribution). Site: 9 acres on Williams Drive, Georgetown TX.

⚠️ Re-Permit Cost: Plans must be updated ($200K) and re-permitted ($400K fees + $200K carry) = $800K total. This is a KNOWN cost built into the budget below.

Line Item	Amount	Per Unit	Confidence
Land (Novak in-kind contribution)	$5,000,000	$23,364	Confirmed
Hard Costs — Building (214 units)	$28,900,000	$135,047	Georgetown Market
Hard Costs — Sitework & Infrastructure	$3,210,000	$15,000	Estimated
Active Adult Amenity Package	$2,568,000	$12,000	AA Premium
Site/Grading (9-acre site)	$1,600,000	$7,477	Estimated
Total Hard Costs	$36,278,000	$169,523
Soft Costs (Architecture, Engineering)	$2,900,000	$13,551	~8% of hard
Plan Update + Re-Permit	$800,000	$3,738	Known Cost
Developer Fee (~5%)	$2,000,000	$9,346	Per JV Terms
Financing Costs (loan fees + interest reserve)	$3,100,000	$14,486	Estimated
Lease-Up Costs & Marketing	$750,000	$3,505	AA Premium
Operating Deficit Reserve	$600,000	$2,804	Estimated
Contingency (5%)	$1,822,000	$8,514	Standard
Total Project Cost	$50,000,000	$233,645	Confirmed

Georgetown construction cost advantage: Georgetown/Williamson County construction costs run $160K-$185K/unit for premium multifamily — 10-15% below Austin proper. Atlas models $170K/unit all-in hard cost (building + sitework + amenity). This is mid-range for Georgetown quality Active Adult product and well below the Austin metro average of $200K+ for comparable AA product.

$800K re-permit cost is front-loaded risk. This $800K is needed from JAK BEFORE construction financing closes: $200K to update plans for code changes, $400K in permit fees, $200K in carry costs during the 8-month SDP process. This is JAK's earliest at-risk capital. If re-permitting fails or is significantly delayed, this $800K is at risk.

Capital Structure — $50M Total

Note: Novak has an existing $2,600,000 loan balance on the site. This must be paid off or rolled into the construction loan at closing.

Source	Amount	% of TPC	Notes
Construction Loan	$30,000,000	60.0%	~60% LTC per JV terms
Existing Site Loan (payoff)	$2,600,000	5.2%	Novak's existing debt — must address
JAK F&F Equity	$5,500,000	11.0%	8% pref, 15% of JAK promote
Novak Land Equity (in-kind)	$5,000,000	10.0%	Land contribution at appraised value
Institutional LP Equity	$6,900,000	13.8%	Pari passu with F&F post construction loan close
Total Sources	$50,000,000	100.0%

JAK's Use of Funds — $800K Pre-Development

Use	Amount	Timeline
Update plans for code changes	$200,000	Months 1-4
Permits & fees (re-permitting)	$400,000	Months 4-8
Carry costs (site debt service, taxes)	$200,000	Months 1-8
Total Pre-Development Capital	$800,000	~8 months to SDP

The $2.6M existing loan is a structural issue. Novak carries $2.6M in debt on the site. This debt must be either: (a) paid off at construction loan close from proceeds, (b) subordinated to the construction loan, or (c) folded into the capital stack as a senior obligation. Option (a) is most common — the construction loan pays off the existing debt, but this means $2.6M of the $30M CL goes to debt payoff rather than construction. Net new construction capital = $27.4M. This is manageable but must be clearly documented in the JV.

Equity breakdown: Total equity required = $20M ($50M TPC − $30M CL). Novak contributes $5M in land + has $2.6M existing debt. JAK F&F contributes $5.5M. Institutional LP fills the remaining $6.9M. The $2.6M loan payoff effectively comes from the construction loan, so it's embedded in the 60% LTC calculation.

Operating Pro Forma — Stabilized Year (Q1 2030)

Georgetown-specific rents. Active Adult rents in Georgetown run $1,600-$2,200/unit/mo — lower than Austin proper but with lower construction and operating costs. Atlas uses a blended average of $1,940/unit/mo, positioned mid-market for Georgetown's 55+ rental demand.

Unit Mix — 214 Units

Unit Type	Count	% Mix	Avg. SF	Rent/Mo	Rent/SF	Annual Revenue
1 BR / 1 BA	107	50%	725	$1,750	$2.41	$2,247,000
2 BR / 2 BA	86	40%	1,025	$2,100	$2.05	$2,167,200
2 BR / 2 BA Deluxe	21	10%	1,175	$2,400	$2.04	$604,800
Total / Weighted Avg.	214	100%	856	$1,943	$2.24	$5,019,000

Revenue Model

Revenue Line	Monthly	Annual	Notes
Gross Potential Rent	$415,750	$4,989,000	214 units × $1,943 avg.
Vacancy & Concessions (−6%)	($24,945)	($299,340)	AA has lower vacancy than std MF
Effective Gross Rent	$390,805	$4,689,660
Other Income (fees, parking, storage)	$12,500	$150,000	$58/unit/mo — conservative for AA
Total Revenue	$403,305	$4,839,660

Operating Expenses (~33% of EGR)

Expense Line	Annual	Per Unit	Notes
Payroll (on-site staff)	$420,000	$1,963	Manager + maintenance + social director
Insurance & Property Taxes	$280,000	$1,308	Williamson County rates (lower than Travis)
Admin / Management (5% of EGR)	$242,000	$1,131	Third-party property management
Repairs & Maintenance	$180,000	$841	AA has lower turnover = lower R&M
Amenities & Activities Programming	$100,000	$467	Social director, events, classes — AA specific
Marketing & Leasing	$80,000	$374	Ongoing after stabilization
Utilities (common areas)	$60,000	$280	Clubhouse, pool, common HVAC
Total Operating Expenses	$1,362,000	$6,364	~29% of Total Revenue

Net Operating Income (NOI)

$3,477,660

$16,250/unit

6.96% Atlas YOC · 6.55% Novak YOC

Operating margin: 71.9% — Active Adult operating margins in Georgetown benefit from: (1) lower property taxes in Williamson County vs. Travis, (2) lower turnover reducing maintenance costs, (3) better credit quality reducing bad debt. Atlas models 29% OpEx ratio, which is at the low end of the 32-35% range cited for AA. The favorable Georgetown cost structure supports this.

Atlas NOI vs. Novak NOI: Atlas's Georgetown market model produces $3,478K NOI (6.96% YOC). Novak's confirmed YOC is 6.55%, implying $3,275K NOI. The $203K gap likely means Novak uses slightly lower rents or slightly higher OpEx. Both numbers produce strong returns — use Novak's 6.55% for conservative underwriting.

Investment Returns

JAK F&F Model (Confirmed Numbers)

Exit / Sale Value~$70,700,000

LP IRR22.7%

Equity Multiple1.86×

Construction StartDecember 2026 (target)

StabilizationMarch 2030 (target)

Using Atlas Georgetown Model (6.96% YOC)

Stabilized NOI$3,478,000

Yield on Cost6.96%

Exit Cap Rate4.75%

Dev Spread221 bps

Exit Value~$70.7M

LP IRR22.7%

Equity Multiple1.86×

Exit Economics (Novak Baseline)

Metric	Value	Notes
Stabilized NOI	$3,478,000	Atlas Georgetown model
Exit Cap Rate	4.75%	AA premium — Georgetown market
Gross Exit Value	~$70,700,000	JAK F&F model confirmed
Less: Closing Costs (2%)	($1,414,000)	Disposition costs
Less: Loan Payoff	($29,900,000)	Approx. CL balance at exit
Net Equity Proceeds	~$39,386,000

F&F LP Returns

Metric	Value	Notes
F&F Raise — Radiant Portion	$400,000	of $800K combined Mayfair+Radiant raise (not yet raised)
8% Preferred Return (p.a.)	8% to LP investors	cumulative preferred return
Split Above Pref	80% LPs / 20% JAK	Reg D 506(b) offering
LP IRR	22.7%	JAK F&F model confirmed
Equity Multiple	1.86×	JAK F&F model confirmed
Hold Period	~3.5 years	Construction Dec 2026 → Stabilization Mar 2030

The development spread is the story. 180 bps between 6.55% YOC and 4.75% exit cap creates significant value at completion. Active Adult product in Georgetown commands premium cap rates because: (1) proven 55+ demand from Sun City ecosystem, (2) limited institutional-grade rental supply, (3) lower turnover = more predictable cash flows. A 4.75% exit cap is aggressive but defensible for this specific market and product type.

Sensitivity Analysis

How do returns change under different exit cap, rent, and cost scenarios?

Exit Cap Rate Sensitivity

Exit Cap Rate	Exit Value	Net Proceeds	Assessment
4.75% (confirmed)	~$70,700,000	~$40,800,000	Strong — JAK F&F model confirmed
5.00%	$65,500,000	$36,110,000	Still strong
5.25%	$62,381,000	$32,993,000	Viable
5.50%	$59,545,000	$30,154,000	Tighter but works

Rent Sensitivity (Georgetown Market)

Avg. Rent/Unit/Mo	Annual GPR	Est. NOI	YOC	Assessment
$1,700 (−12%)	$4,366,800	$2,860,000	5.72%	Below target — stress case
$1,800 (−7%)	$4,622,400	$3,050,000	6.10%	Conservative — still profitable
$1,940 (Atlas Base)	$4,989,000	$3,478,000	6.96%	Georgetown mid-market
$2,100 (+8%)	$5,392,800	$3,820,000	7.64%	Upside — premium positioning

Break-Even Analysis

Break-even occupancy (debt service coverage)~82%

Break-even rent (covers pref return)~$1,550/unit/mo

Downside: rents 10% lowerIRR drops to ~18%

Downside: exit cap at 5.25%Value = $62.4M (still 1.9x equity multiple)

Strong downside protection. Rents can fall 20% below Atlas's base case before the project fails to clear the 8% preferred return. Break-even occupancy is 82% — well below the 94% stabilized target. Georgetown's proven Active Adult demand (Sun City ecosystem) provides a structural floor on both rents and occupancy. Even in a stress scenario (5.25% exit cap, 10% lower rents), the deal still produces a positive return.

Sources & Assumptions

Atlas built this pro forma independently using Georgetown TX market data, Active Adult industry benchmarks, and confirmed numbers from the Novak Summaries (Feb 2026).

Assumption	Value	Source	Confidence
Location	Georgetown TX, Williams Dr	Novak Summaries Feb 2026	Confirmed
Site Size	9 acres	Novak Summaries Feb 2026	Confirmed
Unit Count	214 units	Novak Summaries Feb 2026	Confirmed
Total Project Cost	$50,000,000	Novak Summaries Feb 2026	Confirmed
Land Value (Novak)	$5,000,000	Novak Summaries Feb 2026	Confirmed
Existing Loan Balance	$2,600,000	Novak Summaries Feb 2026	Confirmed
Yield on Cost	6.55%	Novak Summaries Feb 2026	Confirmed
Exit Cap Rate	4.75%	Novak Summaries Feb 2026 + AA institutional sales	Med-High
LP IRR	22.7%	JAK F&F Pro Forma (confirmed)	Confirmed
F&F Equity	$5,500,000	Novak Summaries Feb 2026	Confirmed
JAK Promote	~$2,912,000	Novak Summaries Feb 2026	Confirmed
Pref Return	8% p.a.	Novak Summaries Feb 2026	Confirmed
Permit Status	EXPIRED — re-permit needed	Novak Summaries Feb 2026	Confirmed
Re-Permit Cost	$800,000	Novak Summaries Feb 2026	Confirmed

Atlas Georgetown Market Assumptions

Assumption	Value	Source	Confidence
Georgetown AA Rents (1BR)	$1,750/mo	Georgetown market comps, CoStar, 2025	Medium
Georgetown AA Rents (2BR)	$2,100/mo	Georgetown market comps, 2025	Medium
Georgetown AA Rents (2BR Deluxe)	$2,400/mo	Premium positioning est.	Medium
Blended Avg. Rent	$1,940/mo	Atlas unit mix weighted avg.	Medium
Construction Cost / Unit	~$170K all-in hard	Williamson County contractor data 2025-26	Medium
AA Vacancy Rate	6%	AA industry avg: 3-6%. Georgetown conservative.	Medium
OpEx Ratio	~29% of revenue	AA operating benchmarks + Georgetown cost advantage	Medium
Annual Rent Growth	3.0%	Georgetown growth rate. Conservative.	Medium

Key distinction: Novak-confirmed numbers (HIGH confidence) drive the deal economics — TPC, YOC, LP IRR, promote. Atlas's Georgetown market model (MEDIUM confidence) provides independent validation of rents, costs, and operating assumptions. Where they diverge (Atlas NOI $3.48M vs Novak implied $3.28M), the difference is small and both produce strong returns. Use Novak's numbers for decision-making; use Atlas's model for market context.

Last updated: April 14, 2026 · Atlas for JAK Development Group · Georgetown TX · JAK: John Burns / Andy Heard / Kent McNeil (33.33% each)

This pro forma was built by Atlas using Georgetown TX market data, Active Adult industry benchmarks, and confirmed numbers from Novak Summaries (Feb 2026). Atlas's independent rent and operating assumptions are market estimates — not from Andy's or Novak's project model. Actual project economics will depend on re-permitting outcome, final construction costs, and Georgetown market conditions at stabilization. This is Atlas's analytical model — not an offering document.