REIT Modeling Test
Here is a modeling test for Equity Residential , they give 90 minutes to complete.
REIT interviews are similar to REPE ones- you are asked about cap rates, NOI's, thoughts on current trends, etc.
Salary is way lower, 75k with 10% bonus quoted in Chicago.
ANALYST CANDIDATE EXCEL EVALUATION
An opportunity exists to acquire a hypothetical 478-unit multifamily property in suburban Maryland. The property was built in 1999 and is fully stabilized. Build a dynamic real estate acquisition, operation, disposition, and financing model to evaluate the opportunity. Please provide an annual cash flow summary formatted to print.
- ● Acquisition Date: 4/1/2015
- ● Purchase Price: $110,000,000
- ● Stabilized Occupancy: 95%
- ● Rental Rate: See T-12 Financials Provided
- ● Revenue Growth: 4% annually
- ● Operating Expenses: See T-12 Financials Provided
o Management Fee = 2.5% of Total Income
o Tax's Reassessed at Purchase: $1,600,000 Year 1, 3% growth thereafter o Replacements: $350/unit per year
- ● Expense Growth: 2.5% annually
- ● CapEx - $600/unit per year
- ● Hold Period: 10 Years
- ● Exit Cap Rate: 6.25%
- ● Sales Costs: 2.75%
- ● 65% Loan to Cost
- ● Origination Fee: 45 bps
- ● Interest Rate: 3.5%, Fixed
- ● Amortization: 30 Years
Please provide a summary that includes the following metrics: