Typically with the debt structure we use on office deals, most or all of CapEx (mostly Tenant Improvements and Leasing Commissions) is funded by an additional draw on the loan. Is that scenario built into the Ai1 model? I noticed you accounted for that scenario in your debt module but didn’t know if this was accounted for in the Ai1.
This is a great question. If the TIs and LCs are modeled as budget line items on the Budget tab, they will be funded by the construction loan. Otherwise, they will be funded by equity during operation.
