Commercial real Estate Spreadsheet

Final Project Offering Memoranda & Spreadsheet

DUE 7/31/2013 at 11:59pm on WebCourses

PLEASE UPLOAD ONE FULLY FUNCTIONAL EXCEL FILE & ONE PDF FILE

NOTE: THIS PROJECT WILL ALSO COUNT AS YOUR FINAL EXAM – NO OTHER TEST WILL BE GIVEN Use a property in the “Summer 2013 Costar” file. Select just ONE. Using the basic property data, build a spreadsheet and “Offering Memoranda” using the “Sale Price” and “Pro Forma Cap Rate” to set up your financials in the spreadsheet. Hence, you must “make up” or assume all the rent roll and operating expenses that justify the Price and Cap rate. (HINT, put the purchase price from the “sale price” filed an d adjust numbers logically until the Purchasing Cap Rate is equal to the “Pro Forma Cap Rate”. Using this turn in and create the following: 25% of Grade - Submit an Excel Workbook with the following items, fully linked, updatable, and functional. Using the above property parameters: 1. Rent Roll – DOES NOT NEED the ABC thing, just the one method that works for your property 2. Operating Statement – with detailed expenses and CAPX 3. Acquisition – Disposition calculator, like in the example 4. Five Year Cashflow Statement – like in the example 5. Waterfall Method and Output sheets (like in example, have a PREF, 1st Tier, and 2nd Tier), MACRO enabled (NO OTHER METHOD IS NEEDED) This should be fully updateable and functional. Make sure you turn in a Macro Enabled Excel File. 30% of Grade – Offering Memoranda This one is a very creative project that will require the creation a word doc that you will PDF and turn in to “sell” someone on investing in the Limited Partner Equity Investment. Using your spreadsheet, make the deal “WORK”, hence make debt assumptions and equity payouts that make the deal profitable to you and the investor (Hint adjust the PREF return as needed if problems with profitability). Your project should have the following items below. The slides entitled “Capital Raising” have examples and hints.

1. Title/Cover Page 2. Introduction/Executive Summary (should describe the investment and why a good deal) 3. Sources and Uses 4. Property Description 5. Financial Summary (basically, nice presented parts of your spreadsheet in the word doc)

WARNING: Do not say “refer to spreadsheet” in the word doc, the goal and lesson is to summarize data out of a spreadsheet. If you do this, it is like omitting it from the project and will cost a TON of points. Be sure to clearly show how much money and IRR the investor will be making.