Commercial Real Estate Equity Waterfall
Originally published: 07/06/2022 08:21
Last version published: 08/06/2022 10:31
Publication number: ELQ-74269-2
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Commercial Real Estate Equity Waterfall

Equity Waterfall for Commercial Real Estate Deals

This commercial real estate waterfall module is a template that can be used to distribute the returns between a sponsor and an investor. This module works either as a standalone model or can be used as a tab in a larger financial model. Simply link the Gross Levered Cash Flow, Purchase Price and Sales Price to this model.

The model is clearly structured and 100% dynamic and allows the user a lot of flexibility in structuring a commercial real estate deal. The model includes:

A sponsor and limited partner section
Preferred Return and three hurdles
Acquisition Fee
Disposition Fee
Asset Management Fee

The model will take these inputs and allocate the cash flow accordingly. It will calculate cash-on-cash, equity multiple and IRR return metrics.

This module is perfect for investors who are looking for an easy-to-use and clearly structured equity waterfall, that is in a presentable format and easily can be included in investment memos.

This model has been extensively tested, but may contain errors. If you think you came across an error please contact the author to review and fix it.

 For customization or training of this tool, it is recommended to contact the author of the model as he will be most qualified to assist.
Hope you enjoy the model

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