apartment building financial modelWe haven’t uploaded an apartment acquisition model to our Excel library of real estate models yet, and I didn’t have anything worth sharing in my personal library that wasn’t proprietary. So I thought I’d alter the real estate valuation model I posted last week to work with multifamily residential deals. The project started out simple enough, but became more complex as I came to the conclusion that I needed to add several modules that are specific to apartments.

The model is similar in many respects to the office/retail/industrial acquisition model, only the DCF is more robust. I’ve added several calculation modules to model free rent, releasing costs, lease-up days between leases, unit types, etc. The debt module is fairly simple (no monthly amortization shown), but it could be easily enhanced. Also, note that I hammered this out quickly on a Saturday morning, so there are likely errors that I hope you guys will help me find.

Video Tutorial

I’ve posted a video of how to use the model, during which I value an actual property from LoopNet. Please feel free to reach out with questions, comments or requests you may have.

Click to View the Video Tutorial

Download The Model

To make this model accessible to everyone, it is offered on a “Pay What You’re Able” basis with no minimum (enter $0 if you’d like) or maximum (your support helps keep the content coming – typical real estate models sell for $100 – $300 each). Just enter a price together with an email address to send the download link to, and then click ‘Continue’. If you have any questions about our “Pay What You’re Able” program or why we offer our models on this basis, please reach out to either Mike or Spencer.

Real Estate Acquisition Model - Multifamily (v1.151)

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UPDATE: Uploaded v1.13; I found an error in how v1.0 was calculating debt service. I also corrected some minor formatting issues, moved the Investor Returns inputs to the Property Summary tab, and added a few ratios to the Annual Cash Flow tab.

UPDATE: Uploaded v1.15; Loan amount changed to an input cell. Added LTV (Loan Amount ÷ DCF Value) and LTC (Loan Amount ÷ All-in-Basis) on the Property Summary tab.

About the Author: Born and raised in the Northwest United States, Spencer Burton has over 15 years of real estate investment and development experience. In his current position, Spencer assesses new acquisition, development, and debt opportunities for a $45bn real estate fund. He resides in Dallas, TX.