0% Complete
0/14 Steps

Preview of Mixed-Use Office Building Development Modeling Tutorial

Lesson
Materials

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

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