Last version published: 07/09/2022 08:26
Publication number: ELQ-70878-3
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Real Estate - Industrial Acquisition Model
An Institutional-Quality excel-based tool for acquiring, operating, and ultimately disposing of single- or multi-tenant Industrial/retail properties.
Industrial Development Model:
•An Institutional-Quality excel-based analysis tool for the acquisition, operation, and ultimate disposition of a single- or multi-tenant Industrial/retail property with or without streams.
•The model is monthly in nature, and it is a 100% unlocked Excel file with fully transparent formulas that can be further tailored to suit the particulars of your transactions.
•This model fits the definition of a professional tool. It is specifically built to analyze the acquisition of industrial development opportunities.
•It includes a robust rent roll and operating cash flow module and the ability to model complex partnership waterfall structure. This model is meant to be used in scenarios where the user intends to evaluate the acquisition, lease-up, and sell an industrial property.
•Dynamic Monthly & Annual Cash Flow: to calculate the key investments metrics needed to determine the feasibility of the project and the overall value of a potential selling, the cashflow is calculated monthly;
•In the rent roll sheet, the user can set up to 10 tenants, including options like Tennant improvement and lease commissions cost for both renewal and new contracts, Lease Type, Free Rent, Renewal Probability, and so on. The model can cope with up to 4 generations of renovations contracts;
•The model allows the user to set up four financing options: an acquisition loan, a mezzanine to Gap any additional funding, and refinancing the acquisition loan.
•For the Acquisition and refinance loan, the user can also set those loans with the possibility to ask for additional funds to fund any Tennant Improvements and lease commissions to cope with "good money news". The Mezz Loan is repaid at the sell event
•So the template also includes a circularity breaker (toggle between on and off) to avoid it, this will "break" the circularity, and the errors will be flushed out.
•Equity Waterfall Model: the template provides a 3-tier Equity waterfall model, so the user can determine how much capital the limited partner and General partner will get and their respective rates of return. The waterfall also allows setting the investor cash flow monthly, Quarterly, or annual.
•The user only needs to input information into the cells formatted in the dark blue font in the Assumptions and Budget sheets. If the contents of a cell are colored black, it means that it is a formula.
•All inputs in the model are formatted in blue type. Any input that has a suffix or Prefix such as "/month", "Year", or "SFT", and so after/before the numeric value is custom formatted to display that text suffix/prefix. You only need to enter NUMBER VALUES in those cells. Do not re-type the text suffix -- it will corrupt the calculations in the model or crash the model altogether.
•The template is provided with information from a hypothetical property for demonstration purposes that must be erased for a real property valuation;
•The template is provided with the iterative calculation mode active and calculation as automatic except for data tables whose data are only updated after the saving of the workbook;
•The investment summary sheet provides an overview of the property based on several key metrics and a printable "pitchable" report;
•In the Assumptions sheet, the user can define the majority of the drivers, and along with the budget sheets are the only sheets the users need to input information;
•The maximum horizon for this model is ten (10) years;
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Assess the feasibility of acquiring, operating, and ultimately disposing of single- or multi-tenant Industrial/retail properties