Hi team,
It's going to sound dumb but here is the issue: having interviews and a modeling test planned in a couple of days. I'm comfortable with cashflows, promote, sensitivities...
At my current role I'm not dealing with tenancy schedules and all the templates I'm finding online are pretty huge. I'll get a 2/3 hours modeling test and I'm wondering if any of you would have tips for the tenancy schedule (linked to the cashflow obviously) without using a whole 200 rows separate tab for 3 tenants (if we talk office or industrial as an example).
Basically looking for a clean and easy way to plug Tenancy Schedule assumptions to my CF:
Tenant 1 / area SF / Passing Rent / Lease Start / Lease Expiry / Break option (how to model) / Rent Free / Void service / Rent review / Current ERV / Void / Rent Free Period ...
Please feel free to PM me if you have any completed model including these, happy to share case studies I have too.
On a side note: Anyone understand this (REPE Associate Case Study):
"JV obtains ten year, 65% LTC financing at a fixed interest rate of 4.50% that is interest only for two years, then amortizes starting in year three based on a 25 year schedule of 10%, 25% up to return of 12%, and 35% thereafter"
Happy to get an explanation of this amort... Looks like they've forgotten some words and that it's a mix of debt financing and promote plan...
Thanks a lot in advance guys!
Answers not bananas!
on the side note: yeah, looks like they forgot some words and its a mix of debt and promote
Thanks!
RE: tenancy schedule/rent roll, just build out a rent roll (tenant name/unit number, base rent, expiry date, recoveries PSF, any rent steps and timing of those steps) and use those as inputs to build out your revenue. No need for a separate tab - have a subtotal line for each component (base rent, recoveries) and sub-lines for each unit that roll up into the subtotal. Then you can build out the revenue from each unit from there.
The amortization wording makes absolutely no sense. Looks like sentence should end after 25 year schedule, then the next sentence is walking through the LP waterfall structure.
Thanks for your return!
Maybe something like:
In place assumptions + Renewal assumptions -> Inputs on the left side
Within my CF:
Row1: In place Rent -> If dates = current lease -> show Sf * Rent/ SF + growth
Row2: New/Renewal Rent -> If dates = post lease or no lease then new price * renewal probability etc...
Row3: Expenses
Rox4: Capex
Row5: CFBDS
I think it can make sense! thanks again!
A.CRE's "All-in-One" underwriting model does exactly this -- it would be very straightforward to review how their model is setup (how the formulas work and what inputs to incorporate), no?
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