Expense Reimbursement Error in ORI-Calc tab when changing Recovery % of OpEx

[Anonymous]

5 years, 5 months ago #2488

Hi Spencer,

There may be an error when a tenant / renewal changes its OpEx recovery percentage.

I’m modeling a tenant being on a gross lease with 0% recovery of OpEx in cell AI13 on the ORI-RR tab that then renews / is replaced by a NNN tenant with 100% recovery (BI13 on the ORI-RR tab). However, if I follow this to the ORI-Calc tab and look at BDP13:BFX13, that change never gets picked up. The error seems to stem from AG13:AQ13 on the OIR-Calc tab. These reference AK13:AU13 on the ORI-RR tab (tenant recovery % detail). The formula on the ORI-Calc tab works if you have the same tenant that change their reimbursements over time, but doesn’t work if you bring in a new tenant that is switching leases.

That leaves me wondering if I’m modeling something wrong because I misunderstand how the model is supposed to work or if there is an error with BI13 on the ORI-RR tab not solving its intent.

Thanks,

Oz

[Spencer Burton]

5 years, 5 months ago #2908

Oz,

Thanks for pointing this out. It sounds like you’re modeling it correctly, so let me take a look at what’s going on and include a fix in the next update.

Spencer

[Anonymous]

5 years, 4 months ago #2910

Spencer, any estimate on when you think the next update will come out? I’d love to be able to use the model for something I’m working on, but that piece is pretty key.

Also, as an aside, there isn’t any way to model a refinance on a non-development deal with the model, correct?

[Anonymous]

5 years, 4 months ago #2912

Hi Spencer,

Thanks for all of the good work that you do. I just updated my model with the newer version, but it looks like the same error is happening. I see that some of the formulas have been cleaned up, but unless I manually override the formulas in ORI-Calc, it doesn’t work. Is this update coming in the future?

Thanks,

Oz

[Spencer Burton]

5 years, 3 months ago #2914

Oz,

I apologize but I had added this to my list of fixes last month but missed it with my early December update. As it turned out, when I changed the ORI rent growth calculation methodology a few updates ago, the expense reimbursement calculation for future generation leases in the ORI module stopped working properly. I’ve made the fix in beta version 0.7 and will push the new version out tomorrow (12/31/2018).

Note that beta version 0.7 also includes the option to refinance the initial senior debt mid-hold.

Thanks for your contribution here!

Spencer