“I procured 5 LP term sheets and we just signed with a major $24B asset manager. This is testament that your models are accurate. I have gone head to head with major PE groups and there was no doubt on the solidity of the model.”

– Ali Lotfi, President, Intergulf Development Group

Overview and Video Tour

The Professional Pro Forma is a highly-flexible Excel-based analysis tool for modeling the ground-up development, operation and sale of an apartment/multi-family rental building with or without ground-floor retail and income-producing parking. It is suited for presentation to a wide array of debt and equity capital sources, including institutional players.

Functions

• Compatible with Excel on both PC and Mac
• Supports a 15-year timeline for development, plus an additional 16 years of operation
• Fee simple land purchase or ground lease
• Supports budgeting, construction and leasing for two phases
• Separate unit mixes, rents and absorption for market and affordable rate units
• Dynamic construction hard cost allocation based off of bell-shaped and sin curves
• 5 highly-detailed retail suite/tenant group projections
• Option to value and dispose of the retail component independently
• Choice of equity or senior loan funding of operating deficits

Features

• Includes instructions for use, with detailed annotations tied to select cells
• Two-page assumptions input and reporting screen dashboard
• Hyperlink navigation for fast, intuitive access to all tabs
• Institutional-quality print-ready reporting tabs that are brandable to your company
• S-curve distribution of soft costs by individual line item
• No circular references impacting construction loan sizing and interest
• Ability to size senior construction loan by LTC, or by back-solving based on equity investment
• Detailed real estate tax adjustment mechanism for valuing asset sale

Debt Capabilities

Land loan

• fixed interest rate with current or accruing payments
• repayment from senior construction loan

Senior construction loan

• funds on a residual basis to all equity and any mezzanine loan
• fixed rate or floating interest only, with default funded interest reserve, and user ability to switch to cash interest payments at specified milestone
• floating rate floor and cap
• repaid from net sales proceeds of apartment building and retail unit dispositions, or from refinancing proceeds from Permanent Loan

Mezzanine loan

• fixed or floating interest-only rate, with option for carried interest
• floor and cap for floating rate
• repayment from either refinancing or sale

Permanent loan

• sized by the lesser of three tests (LTV, DSCR, Debt Yield)
• option to do a cash-out refi with distribution of excess proceeds to equity
• fixed or floating rate (with floor and cap), with option for interest-only period up front

Equity Capabilities

Equity positions supported: sponsor/developer, developer partner, third party investor

Equity investment options

• all players pari passu (pro-rata, simultaneously)
• sponsor first, then partner, then third party investor
• sponsor and partner pari passu, then third party investor

Preferred Return (includes return of capital). For participation, Sponsor can be included or excluded from the Pref. If the sponsor is not included in the Pref, then sponsor’s return of capital occurs only after the third party investor receives: a) all of their capital back, and b) their Pref profit.

Accrual options:

1. only based on monthly compounding, cumulative IRR hurdle based on the performance of the third party investor’s invested dollars

2. based on both third party investor IRR hurdle and third party investor equity multiple hurdle, where the larger resulting dollar amount governs which basis determines the distribution

Residual profit split with sponsor promote share defined as share of residual profit above and beyond the sponsor deal ownership position share.

Reports

• Assumptions and Project Returns
• Project Gantt Chart
• Stacking Plan
• Capital Structure
• Unit Mix
• Partnership Structure
• Annual and Quarterly Sources and Uses
• Annual and Quarterly Cash Flow
• JV Returns Summary for both 2 and 3 entities

Quality Controls

Persistent calculation checks and associated visual alerts, and data validation protections to prevent faulty inputs or faulty conclusions

• project budget must match allocation of budget over timeline
• all loans must be repaid in full
• all units must be leased
• permanent loan is sufficient to pay off all outstanding debt
• waterfall profit splits must sum to match the deal-level profit

Support and User Guide

Support is available through our online ticket system.

A comprehensive, searchable, hyperlinked PDF User Guide is included with purchase. A sample is below.

Included With Purchase

• Blank template (inputs are all set to zero)
• Copy of the template with a sample deal loaded in
• Credit of what you pay towards future purchase of the Tools Bundle

Workbook Tabs

1    Executive Summary
2    Assumptions Input
3    Building Stacking Plan Input
4    Apartment Unit Mix Input
5    Monthly Sources and Uses of Funds
6    Monthly Cash Flow Exhibit
7    Master Retail Leasing Exhibit
8    Retail Tenant 1 Input
9    Retail Tenant 2 Input
10  Retail Tenant 3 Input
11  Retail Tenant 4 Input
12  Retail Tenant 5 Input
13  Annual Sources & Uses Exhibit
14  Quarterly Sources & Uses Exhibit
15  Annual Cash Flow Exhibit
16  Quarterly Cash Flow Exhibit
17  Capital Structure Exhibit
18  Joint Venture Partnership Structure Exhibit
19  Monthly Waterfall #1 Exhibit
20  Monthly Waterfall #2 Exhibit
21  Joint Venture Partnership Returns Summary Exhibit – 3 Equity Players
22  Joint Venture Partnership Returns Summary Exhibit – 2 Equity Players
23  Land Acquisition Costs Schedule Input
24  Soft Costs Budget Schedule Input – Phase 1
25  Soft Costs Budget Schedule Input – Phase 2
26  Hard Costs Budget Schedule Input – Phase 1
27  Hard Costs Budget Schedule Input – Phase 2
28  Monthly Retail TI and LC Amortization Schedule Exhibit
29  Monthly Permanent Loan Amortization Schedule Exhibit
30  Mezzanine Loan Interest Rates
31   Senior Construction Loan Interest Rates
32  Project Gantt Chart
33  Monthly Construction Cost Curves Lookup Table
34  Floating Rate Index