Working on a real estate equity capital raise for a $30MM senior housing facility. The sponsor has a 10 yr abatement of 25% of taxes. The sponsor is looking to get out of the property by year 8, thereby leaving 2 yrs left on the abatement. Other than doing an NPV on the remaining years of the abatement savings, how else would you model in the tax abatement to value the entire property to back into levered IRR?
Trending Content - Investment Banking Forum
| +138 | UBS Catastrophic Q1-Q3 26, M&A -17%, Outside Top 10 in Americas, EMEA & APAC | 38 | 1h |
| +60 | PWP acquisition by Piper cancelled | 23 | 3h |
| +46 | No return offer - UPDATE. | 12 | 58m |
| +29 | Evercore poaches Baird DC Defense Team | 18 | 21h |
| +22 | Best Houston Banks for Culture in 2026 | 15 | 41m |
| +21 | Normal for lateral process to go +2 months? | 4 | 1d |
| +18 | Lack of talent in IB! | 19 | 9h |
| +17 | Internal lateral from coverage to M&A (focused on coverage) | 4 | 22h |
| +15 | How standard is weekend work in IBD? | 7 | 4h |
| +15 | Discussion Transaction Experience in Lateral Interviews | 3 | 3d |
Career Resources
On entrance/exit you value it as if paying full taxes (for NOI) then you add back in the NPV of the abatement discounting the CFs at the same rate as the cap rate.
Consectetur accusamus quia omnis odit ut voluptatum maxime. Mollitia officia nisi modi dolorem quisquam. Non sint maiores quia dolorem totam veritatis et. Voluptate omnis mollitia vel provident quo aut nam nisi.
Provident velit repellendus laborum. Quia et corporis iusto eos quia et voluptas. Hic facere sed expedita repellat.
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...