Commercial Real Estate Investment Valuation

Description
This is a real estate valuation test I was given during an interview process. I used information from the offering memorandum to make my assumptions and provide backup for my modeling decisions. 


An old template was provided by the employer, I just rewrote the formulas to make things clear and to remove any hardcoded items that were specific to the previous editions. Honestly, I feel like my version of the sheet is a much cleaner and better working example than what was provided. 


In order to cycle through the different scenarios input values 1-3 in cell S6 on the Presentation worksheet. This will allow assumptions for the best case, worst case, and base case to flow through the model and provide details on the performance of the project at the various specifications. 


This was conducted in December of 2022 in the Austin, Texas U.S. area. As such, the real estate market for the region was performing well up until Q3 2022, and the market was showing a positive outlook. There were, however, big headwinds brewing in the form of interest rate shocks due to the Federal Reserve's monetary policy toward inflation. Please keep in mind that the purpose of this evaluation was to show my modeling abilities while applying for a job. So, the assumption values are generous, to say the least. My goal was to get a job, not highlight the deteriorating economic outlook for the industry.


At the time of this publication January 2023, the real estate market in the Austin Region has collapsed.