Multifamily
Single Asset Acquisition with Optional Value Add and Mixed Use
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Underwrite This Deal
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Documentation
For general modeling conventions (color coding, check system, change log, Wizard sheet), see Modeling Standards →
The documentation below covers specifics for this template.
Overview
This model underwrites multifamily single-asset acquisitions with two optional modules:
Optional Feature 1: Value-Add Renovations Model unit-by-unit renovation costs, timing, and rent bumps. Toggle off for stabilized acquisitions.
Optional Feature 2: Mixed-Use Commercial Add retail or office tenants with lease-by-lease detail. Toggle off for pure residential deals.
Both features can be enabled or disabled without breaking the model. Zero out the inputs you don't need.
Model Architecture
| Sheet | Purpose |
|---|---|
| Wizard | Built-in guide to every input—start here |
| Summary | Key assumptions and returns, print-ready |
| Operating | Residential NOI assumptions, expense projections |
| RR Input | Residential unit mix, renovation schedule, commercial leases |
| Cash Flow | Monthly cash flows with annual summaries |
| Waterfall | GP/LP distribution logic |
| Change Log | Assumption version tracking |
| Checks | Error flagging system |
Data flow: Summary (Inputs) → RR Input → Operating → Cash Flow → Waterfall → Summary (Outputs)
Summary Sheet
The Summary sheet is your dashboard. Everything important surfaces here, and most key assumptions can be changed directly on this sheet.
Purchase & Sale Assumptions
Property Information
| Input | Description |
|---|---|
| Name | Deal name for your reference |
| Location Class | A/B/C classification |
| Lot Size (Acres) | Property acreage |
| Year Built / Renovated | Construction and renovation dates |
Purchase
| Input | Description |
|---|---|
| Purchase Price Input | Acquisition price (blue cell) |
| Acquisition Date | Closing date—controls timing throughout model |
| Purchase Costs % | Percentage for closing costs |
| Purchase Costs $ | Flat closing costs |
| Total Acquisition Basis | Calculated: price + costs + CapEx reserve |
Exit Summary
| Input | Residential | Commercial | Global |
|---|---|---|---|
| Exit Date | Configurable by component or global | ||
| NTM NOI at Exit | Forward NOI for cap rate valuation | ||
| Exit Cap Rate | Assumption for residual valuation | ||
| Exit Value | Calculated from NOI ÷ Cap Rate | ||
| Cost of Sale % | Disposition costs | ||
| Net Exit Value | After sale costs |
You can set different exit timing for residential vs. commercial components, or link them with the Global column.
Sources & Uses
Uses
| Line Item | Description |
|---|---|
| Purchase Price | From Purchase section |
| Purchase Costs | Closing costs from % and $ inputs |
| CapEx Reserve | Pre-funded capital reserve |
| Operating Deficit | Funded shortfall during lease-up |
| Origination Fee | Loan origination costs |
| Total Uses | Sum of all uses |
Sources
| Line Item | Description |
|---|---|
| Equity | Total equity required |
| Initial Equity | Equity at close |
| Post-Close Equity | Future equity calls if applicable |
| Initial Loan Proceeds | Debt funding at close |
| Total Sources | Must equal Total Uses |
Returns display at multiple levels: Unlevered, Levered, GP Net, LP Net.
Debt Assumptions
Initial Loan
| Input | Description |
|---|---|
| Loan Issuance Date | When debt funds |
| Purchase Price | Basis for LTV calculation |
| LTV % | Loan-to-value ratio |
| Loan Proceeds | Calculated from LTV |
| Net Asset Value at Entry | Equity value check |
| Initial Equity $ | Required equity at close |
Loan Terms
| Input | Description |
|---|---|
| Initial Loan FXD Rate | Fixed interest rate |
| I/O Period (months) | Interest-only period |
| Amortization Period | Amortization schedule (months) |
| Monthly IO Payment | Calculated debt service during I/O |
| Monthly Total PMT | Calculated P&I payment after I/O |
Refi Loan (optional)
| Input | Description |
|---|---|
| Refi Date | Refinancing date |
| Valuation at Refi | Property value at refi |
| Refi LTV % | New loan-to-value |
| Max Issuance per LTV | LTV-constrained proceeds |
| DSCR | Debt service coverage ratio |
| Max Issuance per DSCR | DSCR-constrained proceeds |
| Refi Proceeds | MIN of LTV vs. DSCR constraints |
The model automatically takes the more conservative of LTV or DSCR constraints for refinancing proceeds.
Waterfall Assumptions
| Control | Preferred Return | Tier 1 | Thereafter |
|---|---|---|---|
| Hurdle Rate | — | 12.0% | 20.0% |
| Promote at Tier | — | 15.0% | 25.0% |
| GP % | 5.0% | 20.0% | 30.0% |
| LP % | 95.0% | 80.0% | 70.0% |
| Date Hurdle Met | — | Calculated | Calculated |
How it works:
-
Preferred Return: LP receives distributions until reaching the first hurdle (e.g., 12% IRR). GP participates pro-rata based on co-invest.
-
Tier 1: After first hurdle, GP receives additional promote. Split shifts (e.g., 80/20 LP/GP) until second hurdle.
-
Thereafter: After final hurdle (e.g., 20% IRR), split shifts to final promote (e.g., 70/30 LP/GP).
GP co-invest percentage affects participation in preferred return tier. All parameters configurable on Waterfall sheet.
Operating Assumptions
Summary-level operating metrics that link to the Operating sheet:
| Input | Description |
|---|---|
| RR Analysis Start Date | When rent roll projections begin |
| Total Units | Residential unit count |
| Total Occupied Units | Occupied at acquisition |
| Commercial SF | Square footage of commercial space |
| Resi SF | Residential square footage |
| Total SF | Combined square footage |
Capital Expenditures Reserve
| Line Item | Fund as you go? | Total |
|---|---|---|
| Resi Renov. CapEx + Building General | Toggle | Calculated |
| Leasing Commissions | — | Calculated |
| Tenant Improvements | — | Calculated |
| Total CapEx | — | Sum |
"Fund as you go" toggle determines whether CapEx is pre-funded at close or funded from operations as incurred.
Returns Sensitivity
The sensitivity table shows returns across a range of purchase prices:
| Purchase Price | T12 Cap Rate | Y1 Cap Rate | Cash-on-Cash | Unlevered IRR | Levered IRR | Price/SF | Price/Unit |
|---|
The sensitivity table has its own inputs for the purchase price range. Use it to stress-test your deal across scenarios.
Operating Sheet
The Operating sheet controls your residential NOI assumptions.
What's controlled here:
- Residential expenses (Year 1 amounts and growth rates)
- Other income items
- Expense growth projections by year
What's controlled elsewhere:
- Rent roll and vacancy → RR Input sheet
- Commercial operating assumptions → RR Input sheet
Residential Income Growth Rates
Project income growth by year:
| Input | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|
| Potential Rent Growth % | — | X% | X% | X% | X% |
Residential Expense Inputs
| Expense Category | Year 1 $ | Growth % |
|---|---|---|
| Real Estate Taxes | Input | Input |
| Insurance | Input | Input |
| Utilities | Input | Input |
| Repairs & Maintenance | Input | Input |
| Payroll | Input | Input |
| General & Administrative | Input | Input |
| Management Fee | % of EGR | — |
Management fee is driven as a percentage of Effective Gross Revenue rather than a fixed dollar amount.
Commercial Operating Assumptions
| Input | Description |
|---|---|
| CAM Income | Common area maintenance reimbursements |
| OpEx | Commercial operating expenses |
| Start Month | When commercial operations begin (cells G70, G71) |
RR Input Sheet
The Rent Roll Input sheet controls your unit mix, renovation schedule, and commercial leases.
Residential Unit Mix
Each row represents a unit type (or individual unit):
| Column | Description |
|---|---|
| Unit Type | Name/identifier |
| # of Units | Count of this type |
| SF per Unit | Square footage |
| Current Occupancy | Occupied/vacant at acquisition |
| Already Renovated? | Yes/No toggle |
| Reno Cost per Unit | Renovation cost assumption |
| Reno Start Date | When renovations begin |
| Reno Duration | Months to complete |
| Pre-Reno Rent | Current in-place rent |
| Post-Reno Rent | Target rent after renovation |
Expanding the unit mix: You can add rows for additional unit types. Group similar units together or model each unit individually.
Turning off value-add: To model a stabilized acquisition without renovations:
- Set all units to "Already Renovated = Yes"
- Set Reno Cost per Unit to $0
- Set Post-Reno Rent equal to Pre-Reno Rent
The Cash Flow sheet will show $0 for Resi CapEx and rents will grow only at your projected growth rate.
Commercial Leases
Each row represents one commercial tenant:
| Column | Description |
|---|---|
| Tenant Name | Identifier |
| SF | Leased square footage |
| Lease Start Date | Commencement |
| Lease Length | Term in months |
| NNN Rate ($/SF) | Triple-net rent per square foot |
| Annual Steps | Annual rent escalations |
| Leasing Commission | LC amount (considers escalations over full term) |
| LC Spend Date | When LC is paid |
| TI | Tenant improvement allowance |
| TI Spend Date | When TI is paid |
Formula inputs:
Blue cells accept formulas, not just typed values. For TI, you can enter =75*[SF cell] instead of calculating manually.
Turning off commercial: To model a pure residential deal:
- Set all SF values to 0
- Set TI and LC to 0
Don't delete the rows unless working with us—formulas reference these cells even when zeroed out.
Cash Flow Sheet
Monthly cash flows for the full hold period, with annual summaries.
Structure:
| Section | Contents |
|---|---|
| Residential Revenue | GPR, vacancy, concessions, other income |
| Residential Expenses | OpEx line items from Operating sheet |
| Residential NOI | Revenue minus expenses |
| Commercial Revenue | NNN rent by tenant |
| Commercial Expenses | CAM, OpEx |
| Commercial NOI | Revenue minus expenses |
| Grand Total NOI | Residential + Commercial |
| Capital Events | Acquisition basis, CapEx, TI, LC, exit value |
| Total Unlevered Cash Flow | NOI + Capital Events |
| Debt Service | Loan issuance, interest, amortization, paydown |
| Total Levered Cash Flow | After debt service |
What you'll see:
- Monthly columns for full hold period
- Annual summary columns
- Total Acquisition Basis at period 0
- Exit Value at disposition
- Unlevered and Levered IRR, MoC, and Profit
This sheet flows into the Waterfall for GP/LP splits.
Print layout: Configured to print on two pages—suitable for IC presentations without reformatting.
Waterfall Sheet
The Waterfall sheet shows annual cash flow distributions between GP and LP.
What's here:
- Annual cash flows from Cash Flow sheet
- Cumulative distributions by tier
- Hurdle tracking (when each hurdle is met)
- GP promote calculations
- Final GP Net and LP Net returns
Monthly detail: While the Waterfall sheet shows annual summaries, underlying calculations run monthly. This is standard for institutional models—monthly precision, annual presentation.
Customization: All waterfall parameters (hurdles, promotes, GP co-invest) are controlled on this sheet and flow to the Summary.
Common Workflows
Changing purchase price:
- Go to Summary sheet
- Change Purchase Price Input (blue cell, ~row 13)
- Press F9 to refresh
- Review updated returns in Sources & Uses section
Running a quick sensitivity:
- Summary sheet → Returns Sensitivity table
- Find your target purchase price row
- Read across for cap rates, cash-on-cash, IRR, price/SF, price/unit
Updating for a new deal:
- Start with Summary sheet inputs
- Update RR Input for your specific unit mix and leases
- Adjust Operating sheet expenses to match actuals
- Press F9 and verify checks are clear
- Log your baseline in Change Log
Turning off value-add module:
- RR Input → Set all units to "Already Renovated = Yes"
- Set Reno Cost per Unit to $0
- Set Post-Reno Rent = Pre-Reno Rent
- Press F9
Turning off commercial module:
- RR Input → Set all commercial SF to 0
- Set TI and LC to 0
- Press F9
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SKU: MF-ACQ-SA-VAO-MU