Simple Commercial Real Estate Acquisition Model

Looking for a commercial real estate model to give you a quality, quick idea on if the building you are considering acquiring is worth what the seller is asking or what the buyer is offering? Consider using this model I created.

The following modules are included:

• Forward Curves: a forward interest rate curve reference sheet, powered by Chatham Financial
• Property Summary: The meat and potatoes of the model including property details, valuation methods (Discounted Cash Flow, Manual Input, Cap Year-1 NOI, Replacement Cost), Fixed Rate Financing, Operating Cash Flows, and Summary Returns
• Property Returns: Pulls the cash flows from the Operating Cash Flows and details the unlevered (before debt) and levered (after debt) cash flows. This module also includes an IRR matrix up to the sale period to evaluate if selling earlier would be advantageous.
• Partnership Returns: Also known as a Waterfall module, this module is used when raising a portion of the equity from limited partners. Often times, the general partner will structure fees (performance and non-performance) that will dilute the limited partners returns relative to the overall project. This module calculates those cash flows for the limited (diluted) and general (promoted) partners.

I hope you find this model helpful! Please share it, so I know that products like this are gaining traction. Thank you for your patronage.