Underwriting models by deal type

Seven deal templates, one model

One model runs all of these. Each template opens it already filled in. A real rent roll or unit mix, real allowances, a capital plan, a reassessment and a loan. So you are editing a deal rather than starting from an empty sheet. If you landed here looking for an affordable alternative to ARGUS, start with the comparison.

• Vacant Rite Aid BoxRetail box

  13,000 SF dark drugstore demised into three suites. Demising cost, second-generation allowances, downtime and the development spread.

• Strip CenterRetail center

  25,275 SF with National bank branch and Fast casual restaurant pads, nine shops and one dark restaurant carrying a real allowance.

• Grocery Anchored CenterAnchored retail

  71,587 SF with a 48,387 SF supermarket at $10.50 a foot, percentage rent over a natural breakpoint, and shops at $24 to $36.

• Mixed UseTwo income streams

  12,000 SF of retail below 26 apartments. Two cap rates at the exit, two expense bases, one loan.

• MultifamilyResidential

  24 units across market and restricted types, real turnover cost, a renovation program and a full operating statement.

• Land and BuildGround up

  Raw land, a build-to-suit coffee pad and a speculative shop building. Construction in the basis, so yield on cost means something.

• Affordable ARGUS AlternativeComparison

  What this model does as well as the licensed product, tenant-by-tenant cash flow, recoveries, rollover, TI and LC, debt. And the four things it deliberately does not do.

What they all share

Whatever you are underwriting, the model reads in the same order: the property, the income, the expenses, the debt, then the options you can leave switched off. The debt section sizes the loan on loan to cost, loan to value, debt service coverage and debt yield, and tells you which test binds. It runs fixed or floating over an index with a cap strike, and it will refinance part way through the hold and re-size the new loan on that year’s income.

Each template opens in the model. Save it to your account and it joins the pipeline with its versions; the house standard you set applies to all of them.