It is my understanding that you are working to integrate the MF and ORI modules so that they can be used at the same time in the all in one model. Until this is complete, how would you advise me to run analysis on an acquisition of a MF asset with an ORI component. Thanks in advance and this is a terrific website you have put together.
Assuming the retail makes up a small share of total revenue, I’d suggest doing the following:
1) On the Summary tab, set the Property Type to ‘Apartment’; make sure the MF Tabs (under Navigation) are set to ‘Show’
2) Go to the MF-Settings tab and change one of the ‘Other Income’ categories (e.g. Parking Income or Storage Income) to “Commercial Income”. Then go to the MF-OpSt tab and in column J next to ‘Commercial Income’ enter the net income from the retail component (netting out commercial expenses but before vacancy).
3) Still on the MF-Settings tab in column J, go to ‘Other CapEx’ and make an assumption for the average leasing costs per year for the retail space.
Now you’ve accounted for the retail component in a retail deal. Of course, if the retail makes up a substantial share of total revenue, this may not be the right solution.
