Entries by Michael Belasco

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A.CRE 101: How To Use The Discounted Cash Flow (DCF) Method To Value Income Producing Property

The Discounted Cash Flow Method is a method to value a project by taking all future projected cash flows of the project and discounting them back to time zero (date of purchase) using a predetermined discount rate (the discount rate when used in a DCF to look at an investment can be looked at as […]

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3 Tiered Waterfall Module Added to the Condo Development Model

After receiving a few requests, I’ve finally gotten around to adding an equity waterfall module to the Condominium Development Model. This module allows you to model partnership splits up to three tiers using either equity multiple hurdles or IRR hurdles. Additionally, you can model for a preferred return for the limited partner where either (1) […]

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San Francisco Development Explosion! – Interactive Map & Side Project

San Francisco’s downtown area is currently going through an unprecedented, skyline redefining transformation. So many incredible developers and architects are in the process of leaving their mark on this city and it’s all happening or will be happening within roughly one square mile south of Market St in the downtown areas known as the Transbay District, Rincon […]

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Create A Dynamic Revenue Row to Calculate Multiple Tenant Leases

I recently received an email from one of our readers asking how to create a dynamic revenue row for a pro forma that can capture rent changes for multiple tenants. I thought that this would make a great post for the site and would be a good piece of information to share with our readers. What […]

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Waterfall Model For Real Estate Joint Ventures with Catch Up

I’ve just wrapped up a new JV waterfall model with catch up clause that I am excited to share on the site. This model was built as an addition to my back-of-the envelope retail/industrial/office acquisitions model I posted a few weeks back. And like the acquisition model, I made an attempt to make this as intuitive as possible for […]

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Understanding Taxes Series: Part 1 – Depreciation

Investing in real estate provides some tremendous tax incentives in the USA compared to other investments and is an important component to understanding real estate investing. Given the positive response I’ve received to my Understanding Leases Series, I thought I’d begin a new series on taxes in real estate. Important Note: This material has been prepared […]

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Understanding Leases: Office Buildings – Part 2b

Grossing Up Reimbursable Expenses in ARGUS This post and video are a follow up to a post written back in late October discussing grossing up reimbursable expenses. If you haven’t gotten to read that yet, you can do so by clicking here: https://www.adventuresincre.com/understanding-leases-office-buildings-part-2/ The purpose of this video is to help clearly explain how to […]

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Understanding Leases: Office Buildings – Part 2a

Grossing Up Operating Expenses – What, How, Why, and its impact on the Three Common Bill-back Methods A common practice in office leases is to gross up the variable portion of the reimbursable expenses. Grossing up expenses is when the owner of a property takes the annual actuals and figures out what the variable reimbursable […]

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Understanding Leases: Office Buildings – Part 1

Billing Back Reimbursable Operating Expenses – Three Common Approaches for Office Buildings (ARGUS video example to follow next week) The three most common approaches to expense reimbursements in office leases are the (1) triple-net, (2) base-year, and (3) expense-stop approaches. In this post I hope to provide readers with a general understanding of each. In […]

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Introducing a New Blog Segment: Understanding Leases

We are rolling out a new segment this week called Understanding Leases. The aim is to help our readers learn about the more nuanced and unique concepts to commercial real estate leasing and provide general tips and understanding. Over time we will revisit this topic and add new content. If there is anything you would like us to cover about […]

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CRE Market Spotlight: Camden, NJ

After decades of being statistically one of the poorest cities in the country, it seems there are finally big changes coming to the city of Camden, NJ. With an extensive and generous state sponsored tax credit program luring big businesses to the ailing city, development has finally started to take off. The big question that […]