Preview of Mixed-Use Office Building Development Modeling Tutorial
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Overview
In this lesson, you will learn how to model the speculative development and sale of an office building with ground-floor retail and income-producing parking.
Instructions
Download the Excel from the Materials tab above. Then watch the videos, and follow along and perform the exercises in the Excel.
Video Sample
- Overview
- Floor Area Ratio (FAR)
- Capital Structure Overview
- Detailed Capital Stack
- Linear Logic
- Sources and Uses Overview
- Uses of Funds: Land Acquisition Projection
- Construction Bell-Shaped Curve Table
- Property Cash Flow As A Source Of Funds
- Loan Sizing
- Expense Reimbursement Mechanics
- Tenant Lease Year Counter
- Expense Reimbursement Projection
Course Content
Video 1 – Introduction and Modeling Foundations
- Introduction
- Roadmap
- Profile Lot & Building Information
- Lot & Base Building
- Parking
- Stacking Plan
- Components of Floor Height
- Construction Hard Costs
- Capital Structure 1
- Capital Structure 2
- Capital Structure 3
- Conditional Statement Introduction
- Development Financing Overview
- Construction Loan Sizing Methods
- Capital Structure 4
- Flow Charts
- Sources and Uses of Funds Overview
- Sources and Uses of Funds Overview 2
Video 2 – Uses of Funds Projection
- Sources and Uses Exercise Overview
- Control Panel
- Timeline
- Task Overview
- Teaching Approach
- Land & Acquisition Costs
- Base Building Hard Costs
- Tenant Improvements
- Leasing Commissions
- Total Hard Costs TIs and LCs
- Soft Costs
- FF&E
- Subtotal Eligible Costs for Senior Loan Funding
- Financing Costs
- Total Development Cost
- Operating Deficit
- Cash Flow Projection Connection
Video 3 – Sources of Funds Projection
- Overview
- Pari Passu
- Developer Sponsor
- Developer Partner
- Mezzanine Loan
- Senior Loan
- Property Cash Flow
Video 4 – Cash Flow Introduction
- Cash Flow Set-Up
- Cash Flow Projection Timeline
Video 5 – Cash Flow Projection and Returns
- Overview of Cash Flow Projection Tab
- Control Panel
- Cash Flow Assumptions
- Full Service Lease Structure
- NNN Lease Structure
- Office Lease Year Counters
- Office Square Footage Leased
- Gross Potential Rent
- Free Rent
- Expense Reimbursement Introduction
- Scheduled Base Rental Revenue
- Parking Income
- Signage/Miscellaneous Income
- Potential Gross Revenue
- Vacancy/Credit Loss
- Effective Gross Revenue
- Expenses
- Reimbursable Expenses
- Fixed Operating Expenses
- Variable Operating Expenses
- Real Estate Taxes
- Non-Reimbursable Expenses: Fixed Utilities
- Variable Utilities
- Insurance
- Management Fees
- Total Operating Expenses and Real Estate Taxes
- Net Operating Income
- Leasing & Capital Costs
- Capital Reserves/Expenditures
- Adjusted NOI
- Forward Adjusted NOI
- Expense Reimbursements
- Reinspecting NOI
- Retail Introduction
- Retail Lease Year Counter
- Retail SF Leased
- Retail Gross Potential Rent
- Retail Free Rent
- Retail Expense Reimbursements
- Retail NOI
- Retail Adjusted NOI
- Combined Adjusted NOI
- Cap Rate
- Net Revenue After Capital Events Before Financing Costs
- Unlevered Cash Flow
- Financing Costs Paid In Cash
- Capital Events
- Big Picture
- Financing Cash Flows
- Updating Sheet References
- Net Revenue After Capital Events After Financing Costs
- Levered Cash Flow
- Returns Metrics
- Adjusting Model Inputs
- Goal Seeking New Senior Loan Size
- Raising Rent
- Checking Senior Loan LTC
- Conclusion.
REFM_Office_Industrial_Building_Development_Tutorial_v37.1