• Author
    Posts
  • #545

    ahazlett
    Participant

    Is there a way to model in a TI/LC reserve? We are seeing this requirement often for ORI value-add deals.

  • #549
    mm
    Spencer Burton
    Keymaster

    You’ll notice in the ORI-OpSt tab under Capital Expenditures, Tenant Improvements, Leasing Commission, Other CapEx, and Capital Reserve are all modeled. TIs and LCs are projected and hit the DCF (columns K:T) per the assumptions entered on the ORI-RR tab, whereas the Stabilized (column J) and Residual (column U) pro formas calculate an average annual TI and LC load.

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