An Excel-based spreadsheet analysis tool for the acquisition of an existing apartment/multi-family rental building with or without retail and income-producing parking components. Allows for modeling of the renovation of individual apartment units while continuing to operate the building, identifying and highlighting the income generation and cost savings resulting from the individual unit improvement program.
A blended average approach is used to simulate the income and expense profiles of both pre- and post-renovated unit states. In other words, while there is a rent roll input tab, the model does not key off of specific unit rollovers and renovations — it approximates the unknown sequencing of the unit rollovers using an average unit renovation budget and the aforementioned blended average income and expense values.
The model is monthly in nature, and it is a 100% unlocked Excel file with fully transparent formulas that can be further tailored to suit the particulars of your transactions.
User-Friendly Features
- Compatible with both PC and Mac
- Includes instructions for use, with detailed annotations tied to select cells
- Two-page assumptions input and reporting screen optimized for dashboard-style viewing
- Persistent calculation checks and data validation protections to prevent faulty inputs
- Hyperlink navigation enables fast, intuitive access to all tabs
- Institutional-quality print-ready reporting tabs that are brandable to your company
Functional Highlights
The model supports the following:
- Differentiation between fair market and any affordable/rent-controlled units with respect to rent growth, operating expenses, and unit renovation schedules and budgets
- Quick inputting of the apartment unit mix only instead of the entire rent roll, as well as full rent roll inputting with tagging of units as renovated vs. unrenovated and fair-market vs. rent-controlled
- Unit batch, or unit-by-unit renovation of the apartments modeled on a monthly basis, with post-renovation rent bump, and with or without post-renovation operating and maintenance savings
- Conversion of any affordable/rent-controlled units to fair market, on a monthly basis, including tenant buyout cases
- Two layers of acquisition financing (both senior and mezzanine amortizing or interest-only, or amortizing with an interest-only period), and a subsequent refinancing through an amortizing permanent loan with or without an interest-only period
- Up to three joint venture equity partnership players, and up to two 5-tier IRR-based waterfalls (capable of supporting a double-promote structure for the Sponsor)
Model Tabs
0 Model Overview and Instructions
1 Back of the Envelope Model
2 Rent Roll Inputs
3 Assumptions Inputs
4 Capital Structure Exhibit
5 Master Retail Leasing Exhibit
6 Retail Tenant 1 Inputs
7 Retail Tenant 2 Inputs
8 Retail Tenant 3 Inputs
9 Retail Tenant 4 Inputs
10 Retail Tenant 5 Inputs
11 Monthly Cash Flow Inputs
12 Annual Cash Flow Inputs
13 Renovation Timing Exhibit
14 Joint Venture Partnership Structure Exhibit
15 Monthly IRR Waterfall #1 Exhibit
16 Monthly IRR Waterfall #2 Exhibit
17 Sensitivity Tables Exhibit
18 Stabilized Pro Forma Executive Summary Exhibit
19 Joint Venture Partnership Returns Summary – 3 Players Exhibit
20 Joint Venture Partnership Returns Summary – 2 Players Exhibit
21 Senior Acquisition Loan Monthly Amortization Schedule Exhibit
22 Mezzanine Acquisition Loan Monthly Amortization Schedule Exhibit
23 Permanent Loan Monthly Amortization Schedule Exhibit
24 Retail TI and LC Amortization Exhibit
Model Timeline
11 years (expandable)
Reports
Print-ready, brandable reports are included in the model. See the Sample Reports link above.
Included With Purchase
- Blank template (inputs are all set to zero)
- Copy of the template with a sample deal loaded in