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Real Estate Deal Pitch Final

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Real Estate Deal Pitch Final

  1. 1. Real Estate Deal Pitch NICK LIEW NOAH NEWBERGER ZACHARY BARDWELL TOBIAS LEVIN STEIMBERG
  2. 2. Executive Summary 1. Market Characteristics 2. Site Plan 3. Timeline 4. Capital Structure 5. Distribution Waterfall 6. Analysis of Risks
  3. 3. Market Demand Residential ◦ 6.2% Avg Vacancy ◦ 4.4% 12 month rent growth ◦ Rents Retail ◦ 3.1% Avg Vacancy ◦ 8.8% 12 month rent growth ◦ Current asking rent $23/sqft ($/sqft/mo)
  4. 4. Residential
  5. 5. Retail
  6. 6. Site Plan On Western Ave. Development Plan ◦ Timeline- Two years to build both plots ◦ Cost - $111 Million 1101 Western Avenue ◦ 2 floors retail / 4 floors residential 1100 Western Avenue ◦ 6 floors parking / 7 floors residential Maximize waterfront views for residential and foot traffic for retail LEED Silver certification on all buildings
  7. 7. Floor Plans900 Square Foot 2 Bedroom 1,500 Square Foot 3-Bedroom Retail Space - 25,000 sft per floor - Split 2-1, Anchor and two stores
  8. 8. Market Leasing Assumptions Operating Expenses - 2% inflation Parking - $80/stall/month ◦ 722 stalls
  9. 9. Commercial Tenants Tenant Strategy ◦ Major anchor tenant ◦ Regular tenants
  10. 10. Project Timeline *Occupancy corresponds to Residential * * *
  11. 11. Sources and Uses Development Costs ◦ Total = 111.4 million ◦ Acquisition Cost ◦ Hard and Soft Costs
  12. 12. Debt and Equity Construction Financing Equity Structure
  13. 13. Cash Flow Distribution Step 1: Return All Capital - $40 mil Step 2: Accrue and Pay Preferred Return at 7% (pari passu) Step 3: Split Free Cash Flow After Preferred Return 3 ways Step 4: Sell Property in Year 10 Step 5: Split Sales Proceeds 3 ways
  14. 14. Financial Model General Assumptions One Time Jump in Year 6
  15. 15. Vacancy Rates 0% 25% Year 3 Onwards First 2 Years Vacancy Rates - Retail
  16. 16. Private Equity Cash Flow IRR = 30.2%
  17. 17. Gonzaga University Cash Flow IRR = 42.2%
  18. 18. Our  Team’s  Cash  Flow IRR = 40.8%
  19. 19. Overall IRRs
  20. 20. Average Cash-on-Cash
  21. 21. Sensitivity Analyses
  22. 22. Sensitivity Analyses (continued)
  23. 23. Sensitivity Analyses (continued)
  24. 24. Analysis of Risks (Qualitative) 1. Construction Risks ◦ Delays from flooding 2. Market Risks ◦ Macroeconomic conditions 3. Leasing risks ◦ Higher Vacancy

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