Commercial Real Estate Acquisition Model - Unprotected
  • Commercial Real Estate Acquisition Model - Unprotected
  • Commercial Real Estate Acquisition Model - Unprotected
  • Commercial Real Estate Acquisition Model - Unprotected
  • Commercial Real Estate Acquisition Model - Unprotected
  • Commercial Real Estate Acquisition Model - Unprotected
  • Commercial Real Estate Acquisition Model - Unprotected
  • Commercial Real Estate Acquisition Model - Unprotected
  • Commercial Real Estate Acquisition Model - Unprotected
  • Commercial Real Estate Acquisition Model - Unprotected
  • Commercial Real Estate Acquisition Model - Unprotected
  • Commercial Real Estate Acquisition Model - Unprotected
  • Commercial Real Estate Acquisition Model - Unprotected
Originally published: 18/02/2020 09:01
Last version published: 12/11/2020 08:27
Publication number: ELQ-81231-22
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Commercial Real Estate Acquisition Model - Unprotected

Advanced Real Estate Model, for a professional DCF Valuation of Office, Industrial or Retail Properties

Description
MODEL DESCRIPTION:

This model is one of the most detailed and comprehensive out there to assess Retail, Office or Industrial Properties, either as a value-add or already stabilized deal. This model is not designed for ground-up development or Multifamily. The max. number of tenants is 60, if you need adjustments to the model please contact me.

The model's functionality supports a wide variety of investment scenarios including different capital structures, lease recoveries, tenant rollover, refinance analysis as well as asset management considerations. It is ideal for brokers or investors, who are looking in presenting a deal to capital partners or clients or would like an accurate valuation of an investment property. Even though the model was originally designed for US-use, area, and currency can be adjusted in the Underwriting Dashboard.

The model has taken years of building and updating, which has translated in a very detailed and robust tool, which makes it a great Excel-based alternative for Argus at a fraction of the cost.

As a first step, review the Version Tab, which gives you an overview of the color-coding methodology and the sections of the model. If you would like training on how to use the model most efficiently, feel free to reach out.

Watch the links below to better understand the structure and functionality of the model:
General Walkthrough: https://youtu.be/-4qGkDbuaJc
Value-Add Case Study: https://youtu.be/W79R9A3tBVE

The model has undergone various iterations and extensive testing to ensure that there are no errors. Given the size and impressive depth, it is impossible to ensure there are none. However, if you do come across errors please let me know so that I can fix them.

The Model is provided as-is. Customization is available upon request. I'm continuously updating the model and therefore feedback is appreciated.

Hope you enjoy the model and feel free to reach out to me for comments, questions, or additional requests.

-Julian

CONTENTS:

Executive Dashboard: Quick summary over the deal, includes major key metrics, Rolled up Cash Flows and Key Metrics Charts
Executive Summary: Printable booklet of the deal and present to clients, investors, partners or lenders
Sensitivity Analysis: Availability to stress-test Model, Two-way data table for Purchase/Exit Price Sensitivity
Exit Analysis: Shows IRR and EMx based on Exit Timing
Monthly and Annual Waterfall: Partnership Distribution for General and Limited Partner, includes an option to add Sponsor Fees
Debt Module: Up to 3 different Loans, can be used for Acquisition Loan or Refinance
Construction Module: Capital Improvements and Construction Loan
Audit: Allows to overwrite and detail out Cash Flows, where the model does not provide pre-set logic
Rent Roll: Existing Leases, Vacant Lease-Up, 2nd Generation Lease and Market Leasing Assumption s for Rollover, % Rent
Underwriting Dashboard: Global Deal Assumptions, such as Acquisition, Disposition, Tax Re-Assessment, Inflation
Operating Expenses: Fixed/Variable %, Min. and Max and Start End Dates
Recovery Settings: Option to include expenses in recovery settings, Gross-Up, Recovery Options are Net, Stop Amount, Base Year Stop and Gross
Historical Financials: Option to add historical Cash Flows to come up with underwritten expenses

LIMITATIONS:
65 Tenants Max, 10 Year Investment Horizon (those are limits due to size constraints if you would like to expand limitations get in-touch with me), not a multifamily model, not a ground-up development model

This Best Practice includes
1 Excel Template

Acquire business license for $99.00

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Discussion feed for Commercial Real Estate Acquisition Model - Unprotected

The user community and author are here to help. Go ahead!

  • Brando Hayden
    Hi...can this be used to analyse the acquisition of multiple commercial properties in a portfolio?
    arrow_drop_uparrow_drop_downReply reply
    • Julian Scheeff
      I think it can, but I have never actually used it as that. Depending on deal there can always made modifications made to this model.
      arrow_drop_uparrow_drop_downReply reply
      • Brando Hayden
        It may require customization to input multiple properties and aggregate the outputs for portfolio analysis. The metrics for analysis would be similar to what you have now. It's the ability to input details for up to say 40 properties.
        arrow_drop_uparrow_drop_downReply reply
        • Julian Scheeff
          It depends how many tenants that would be, right now the model is set to a max. of 40. The reason for that is that the model is already heavy (about 15mb), which from my experience is a size where the model is still well functioning. Theoretically, # of tenants could be increased, by deleting sections of the model not needed for the analysis to create space for additional line items. I think however for your needs some customization would need to be done to the model to fully serve your need.
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    • Patrick Gates
      I just downloaded the CRE Acquisition model, and I can't get it to open in Excel. I'm using a 2007 version, do I need a newer version?
      arrow_drop_uparrow_drop_downReply reply
      • Julian Scheeff
        Patrick, I believe you would need a 2013 version and never as a lot of functions used in the model were not introduced back then
        arrow_drop_uparrow_drop_downReply reply


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