How do I go about underwriting this deal?

I need to go about underwriting a deal as if I were a low income tax credit developer.

The site is located in a master planned community totaling 84 acres. The master developer must provide exclusionary housing. The proposed site would meet the required exclusionary housing.

The proposed project site 5 acres. The code allows 5 stories and 60 DU/Acre. The City is requiring a minimum of 180 units at a 60% low income and 40% very low income.

Master Developer will provide site at no cost with certified pad and utility stubs. They want highest number of units with lowest contribution level. Site is in Southern California.

How do you go about underwriting a deal like this with only this amount of information? What are you looking for? How do you determine how many units and how many beds per unit, etc. How do you determine what sources of financing? (9%, 4%, other?). What do you look for in reviewing the overall location/site?

 

A ad numquam voluptatem aperiam consequuntur velit. Est magnam error nesciunt. Dolores inventore velit et adipisci. Eos placeat cupiditate enim expedita ratione quis. Quasi hic sequi expedita qui quos molestiae molestias.

Career Advancement Opportunities

May 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 04 97.1%

Overall Employee Satisfaction

May 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

May 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

May 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (88) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (67) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
GameTheory's picture
GameTheory
98.9
6
kanon's picture
kanon
98.9
7
dosk17's picture
dosk17
98.9
8
CompBanker's picture
CompBanker
98.9
9
numi's picture
numi
98.8
10
Kenny_Powers_CFA's picture
Kenny_Powers_CFA
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”