Mixed Use Land Allocation?
How do I allocate land cost for a mixed use development?
I’m working through the UW for a ground up mixed-use deal. Considering the office, the MF, and the retail, it all works. My question is how would we go about selling the land to partners if we wanted to get out of the retail, multi, or office. How should the land cost be allocated?
Are they distinct buildings within the development? If distinct you can break out into individual cash flows and allocate the land price by solving to a sensible IRR for each product type. Then sense check your allocation vs. recent land comps for each product type.
Thank you. That’s kind of what I was thinking. I guess there’s no quicker way to back into it?
You could solve land price for each to a sensible profit on cost or yield on cost? I like CFing stuff out to make sure the IRR is makes sense too.
Saepe at a et sit. Et fuga ut voluptatem recusandae maiores qui molestiae. Itaque neque ut quibusdam ipsam cupiditate laborum ut at.
Nisi sapiente excepturi et consequuntur. Eveniet earum aut rerum. Officia officia iusto molestiae tempore. Nisi numquam aut minus vero.
Voluptates sit earum porro doloremque quibusdam numquam. Est quo a laudantium nam perferendis. Quod dolor quia quo delectus quasi molestiae vitae. Modi in debitis alias animi. Recusandae incidunt sed aliquid. Voluptate rem laudantium beatae praesentium dolor quibusdam sed autem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...