Would love to hear how you guys would model this out. Friend sent me this short case study that he was asked to model for a interview with a D/E shop.
- Failed Condo Project in NYC
- Model Refi of existing loan with principal balance of $20,000,000
- Project details: 20,000 Net SF, 17 Units, with recent comp sellouts of $2,300 PSF
- Sponsor will now lease out units and hold long term.
- Specifically mentioned underwriting a CMBS loan for the Refi
Unfortunately these are all the details that were provided but would love to see what the experienced guys on here come up with.
So, if this is to be modeled as a 'long term hold', then its pretty much any regular rental deal. Model like a 17 unit apartment deal, the only difference is you can model an exit strategy based on either a capitalized NOI approach or a condo sell out.
The CMBS loan detail should be used for setting a rate, terms, fees of the refi.
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