Condo Model

assume 10 FAR for R10A/C2-4 zoning
• Please use 60% LTC, interest only, 0.37% for LIBOR on construction financing
• Please use 10% gross up from ZSF to GSF. Retail is 100% efficient and condo/rental 80% efficient
(from GSF to NSF)
• Please use 8,000 for retail GSF and the remaining for condo/rental GSF
• Please use $1,700 PSF for condo sales, 5% sales cost, $3 PSF on carry cost based on unsold SF
starting from sales start month
• Please use $100 PSF NNN for retail rent, 4% sales cap, 4% sales cost
• Please use the end of the current month for the start date, 12 months of pre construction, 15
months of construction, sales start 3 months after construction completes and last for 12
months (equal monthly condo sales allocation)
Rental Model
• Please assume 10 FAR for R10A/C2-4 zoning
• Please use 60% LTC, interest only, 0.37% for LIBOR on construction financing
• Please use 75% LTV, size the loan using NTM NOI, 4% cap rate, 75% LTV, 1.25 DSCR, 30 year
amortization, 4% interest rate, 8% debt yield on refinance
• Please use 10% gross up from ZSF to GSF
• Please use 8,000 for retail GSF and the remaining for condo/rental GSF. Retail is 100% efficient
and condo/rental 80% efficient (from GSF to NSF).
• Please use $100 PSF for rental rent, 35% opex, initial occupancy 40% with 10% escalation, 3%
rent growth
• Please use $100 PSF NNN for retail rent, no growth
• Please use 4% for sales cap, 4% for sales cost, 5% for vacancy loss for the building, no additional
carry cost (both retail and rental)
• Please use the end of the current month for the start date, 12 months of pre construction, 15
months of construction, rental income starts 3 months after construction completes, refinance 6
months after lease start, sale 12 months after refinance
Other
• Do not assume anything that is not given. If you feel there should be additional assumptions,
please omit them
Excel Deliverable
• Summary Tab (compare the two scenarios with recommendation)
• Condo Model Tab
• Rental Model Tab
• Sources and Uses Table for each scenario
• Unlevered profit, IRR, equity multiple for each scenario
• Levered profit, IRR, equity multiple for each scenario