Apartment Building / Self-Storage / Multi-Family Real Estate Underwriting Model - Includes Joint Venture Waterfalls

 I love this template. If you are involved in real estate acquisitions, new construction, or perform real estate underwriting for apartment buildings, multi-family, or self-storage, this template will be useful to you. Anything that has units and monthly rent can be plugged into the assumptions. With this robust deal analyzer that focuses on value-add metrics, you can easily see the full financial picture of potential real estate deals.

$125.00 USD

After purchase, the template will be immediately available to download. It is also included in the real estate financial models bundle.

apartment building acquisition model

Template Features:

  • Model for up to 15 years.
  • Robust rent roll layout for up to 25 unit types.
  • Recently added an IRR sensitivity for leverage usage and exit cap rate.
  • Built to underwrite apartment buildings, multi-family units, or self-storage.
  • Joint venture capable.
  • Includes a robust GP fee schedule which can be configured as needed.
  • Monthly and annual view.
  • Useful for acquisitions, new construction, acquisition + renovation, acquisition + construction of new units.
  • Value-add metrics displayed from rent roll.
  • Options for up to two REFI events.
  • Optional construction loan with accrued or paid interest.
  • Option for exit value based on cap rate.
  • Two waterfall options if you are modeling a joint venture
  • Robust schedule for ancillary income by income stream type, average utilization percentage, and average monthly price.
  • Error-checking with a sanity check on all monthly / annual summaries / financial statements to ensure all values are balanced with each other and all the reports sum to the same final cash flow numbers.
  • Includes depreciation and logic for depreciation recapture upon exit.
Output Reports:
  • Monthly and Annual Waterfall Summary
  • Monthly and Annual 3-Statement Model (Income Statement, Balance Sheet, Statement of Cash Flows)
  • Monthly and Annual Pro Forma detail
  • Annual Executive Summary
  • Value-add Opportunity Metrics
  • Visualizations for Key metrics
  • DCF Analysis (for both waterfall summaries)
  • Equity Multiple, IRR, ROI, Cash-on-Cash for project, LP, and GP.
  • Key metric outputs include Debt Service Coverage Ratio (DSCR) and Average Revenue per Available Unit / Room (RevPAR)
If you're looking for an all-in-one real estate model that is good for a lot of diverse situations and can handle all sorts of equity and debt stacks, this is the spreadsheet tool for you. After building templates to help people analyze real estate deals for my entire career, there are some things I've picked up along the way.

The goal of this model is to provide something that requires as minimal logic customization as possible, meaning a very effective template to purchase. You can plug your deal metrics in quickly and accurately by using the assumptions as well as adjust variables for sensitivity and feasibility analysis.

My Favorite Modeling Feature

What I like most is the variability in the rent roll assumptions. It makes the real estate deal scenario very easy to understand from a value-add perspective. That section drives off the pro forma expected unit counts and allows for each unit type to have a variable start month, which is really good when your development / renovation period is staggered and the cash flow implications need to be captured.

You can easily view the percentage variance for each unit and in aggregate in regards to pro forma rent per unit vs. current rent per unit and pro forma rent per unit vs. market rent per unit.

The occupancy logic is straightforward as well. You can enter the maximum unit count per unit type, the starting occupancy per unit type, the month # that each unit type opens up, and the monthly occupancy improvement percentage as well as the long-term stabilized occupancy rate. All of this is called out on a monthly basis in the Rent Roll Matrix tab. It is a cohort modeling technique that fits really well with real estate unit types.

Fundamentals

Getting down to the fundamentals, this model is great for single operator real estate developers / investors or syndication deals with joint venture distribution schedules. For each party and for the project as a whole, you will be able to see the total investment required, total cash returned, cash-on-cash return, IRR, equity multiple, and run a DCF Analysis with NPV displayed.

The stabilized annual rental revenue improvement percentage, stabilized occupancy improvement, and stabilized weighted average  rent per unit per month improvement will all be displayed right below the investment summary described above. This makes it really easy to see what kind of value-add bang you are getting for your buck.

You can select any stop month in the model for up to 15 years and in that time there is the capability to show up to two refinance  capital events and an exit capital event. You can easily switch the REFI and Exit options on or off with a 'yes/no' selector. The REFI events are driven by a defined cap rate for valuation and an LTV percentage to determine how much you can cash out and distribute each time. The Exit is also driven by a defined cap rate against the trailing 12-month NOI (per the defined exit month).

The model runs off monthly inputs and the acquisition and debt all have automated logic in place that will run off the acquisition / development / construction cost data entries per month. The model automatically starts at the first fiscal month of the launch year, but you can easily define when costs start going out on a monthly basis and it doesn't have to start in month 1 (fiscal month 1). They can start at any point during the year and all the logic works perfectly.

On the construction / development cost section, you can easily define what percentage of the cost of each row in the schedule is financed (any remaining amount is subject to equity investment or off-set against any available cash flow from operations or other activities.

General Partner Fee Schedule

If you are modeling a joint venture and the GP is taking fees, you can account for that. The following fee schedule can be configured:

  • Acquisition Fee - Percentage - Based on purchase price
  • Other Fees Upon Purchase - Hard-coded value per a defined month
  • Ongoing Asset Management Fee - Percentage - Based on gross rental income
  • Disposition Fee (1st REFI) - Percentage - Based on property value at first REFI (per cap rate defined for 1st refi)
  • Disposition Fee (2nd REFI) - Percentage - Based on property value at second REFI (per cap rate defined for 2nd refi)
  • Disposition Fee (EXIT) - Percentage - Based on property value at EXIT (per cap rate defined for EXIT)
Other Fees as a Percentage of Development/Acquisition
  • Development - Percentage - Based on any costs entered in this section of the 'Development & Acquisition' tab.
  • Other Costs 1 - Percentage - Based on any costs entered in this section of the 'Development & Acquisition' tab.
  • Other Costs 2 - Percentage - Based on any costs entered in this section of the 'Development & Acquisition' tab.
  • Other Costs 3 - Percentage - Based on any costs entered in this section of the 'Development & Acquisition' tab.
  • Land-only - anything here is not depreciable - Percentage - Based on any costs entered in this section of the 'Development & Acquisition' tab.
If you wanted a waterfall that has a GP catch-up provision, just plug the cash flows into the top of this joint venture distribution template.

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