Kind of stuck on a modeling test, would appreciate any help!
1° "You can assume the property will lease up in even tranches over 5 months"
- Does that mean that after the development part (12-Mths) the property is going from 0% to 100% occupancy in 5 months, proportionally?
- Is, 5 month post development, my stabilisation date (Month 17)?
2° "All leases are 12-Mths - 1 month free for new leases but not for renewals"
Do you have any idea on how to model this? I was thinking of starting with a weighed-average of the different unit rent (not taking SF into account but a monthly rent by unit type) and then calculate a percentage of it representing 1 month on the "Rent Free" line. But how can I keep it dynamic and avoid reaching more than 1 month rent free for all units (60 approx.) Using a MIN function on a total Rent free amount maybe?
3° "Purchase price is $X, project will be financed by a loan..., balance of the loan amount to be used to fund development costs and capitalised interest "
Do I assume that the purchase price + purchase costs go with Equity in my source and uses line-item?
May have some other questions but thanks a lot in advance for that!