[Spencer Burton]

7 years, 9 months ago in reply to: Excel Version Compatibility #3104

Hi Chee,

Appreciate the kind words and great question! I built the model in Excel 2016 for Windows using functions and features available in that version of Excel. As a result, I can’t guarantee that the model will work with earlier versions of Excel. I have relied on user comments to find whether the model is fully compatible with earlier versions and have been told by numerous users (here is one example) that the model has issues with Excel 2007 – largely related to the development module, s-curve forecasting, and the construction interest calculation macro. I can’t personally confirm because I don’t have Excel 2007 – just what I’ve been told by other users.

My recommendation is to upgrade to a more recent version of Excel to be sure all current and future functions work properly.

Spencer

[Spencer Burton]

7 years, 9 months ago in reply to: SQ footage #3102

The square footage (or meters) of the improvements is entered on the rent roll and summarized in cell F12 of the Summary tab. Only net rentable area is used in this model – gross area is not.

– For office/retail/industrial properties, go to the ORI-RR tab, enter the number of tenants in cell D6, enter the net rentable area for each tenant in column G. The total net rentable area is shown in cell G11 of the ORI-RR tab as well as in cell F12 of the Summary tab.

– For multifamily properties, go to the MF-RR tab, enter the number of unit types in cell F6, enter the average unit size in column F and the number of units in column G. The total number of units are displayed in cells G11 and F8 on the MF-RR tab. The total net rentable area (units x average unit size) is displayed in cell F12 of the Summary tab.

[Spencer Burton]

7 years, 9 months ago in reply to: Partial coupon payment and interest accruals #2962

Interesting idea and shouldn’t be too difficult to model. I’ll add it to the feature request list and get it included in a future version.

Thanks for the suggestion!

[Spencer Burton]

7 years, 9 months ago in reply to: Student Housing Module #2940

Added to the feature request list.

[Spencer Burton]

7 years, 9 months ago in reply to: Metric Version #2952

Added to the feature request list.

[Spencer Burton]

7 years, 9 months ago in reply to: Non-USD Currencies and Measurements #2954

Any references to USD ($) have been stripped from the model. I’m working on a drop-down menu to toggle between square feet and square meters.

[Spencer Burton]

7 years, 9 months ago in reply to: CapEx Below NOI #3096

Great question!

The model is working correctly, but perhaps not treating the cash flows as you’d expect. I think the difference is, you’re expecting a distribution based on cash-on-cash return (6/94 to a 8% CoC, then promoted above that) and prior to the LP’s return of capital. However, the model distributes purely based on IRR – which would require a full return of the LP’s capital plus a return on top of that before hitting a hurdle. This typically doesn’t happen until a capital event occurs.

To illustrate using your investment as an example, the LP contributes $2,615,685 in time 0. In period 1, the partnership distributes to the LP $244,453 (its pro rata share). If we were to do an IRR calculation based on those two cash flows (-2,615,685, 244,453) the LP’s IRR at the end of period 1 is -90.6% and the LP’s capital account stands at $2,577,247 – thus no hurdles have been hit.

Hope that answers your question! Let me know if you have any other questions.

[Spencer Burton]

7 years, 9 months ago in reply to: Formatting Question #3100

You can move cells on the Summary tab without impacting the macros. Any cells called by VBA code are named cells, so as long as you move (not copy) the cells it won’t compromise the model.

[Spencer Burton]

7 years, 9 months ago in reply to: CapEx Below NOI #3092

Thanks for reaching out and two very good questions.

To your first question. By default, the model’s direct capitalization valuation method uses NOI (before CapEx). However, the user also has the option to cap CFO (after CapEx). This option can be selected by changing cell B8 on the Property CF tab.

In terms of how to fund a large CapEx project without throwing off the cash-on-cash return. I would suggest modeling the deal using the Development module. The module was intended to be used both for development, and value-add opportunities – this scenario falls within that second category. To do this:
1) Set the development length on the Summary tab to 24 months
2) Set the operations begin date on the Summary tab to be equal to the analysis start date
3) Enter the purchase price together with the large CapEx project items on the budget tab

A couple things to keep in mind. If you intend to use a bridge loan to finance the purchase and CapEx project, use the Construction Financing assumptions on the Sources and Uses tab. Set the Stabilization date on the Summary tab to be equal to the date when you intend to refinance the bridge loan. If you plan only to use permanent financing, set the stabilization date equal to the analysis start date, and set the construction financing interest rate and LTC to 0 on the Sources and Uses tab. Then make sure to set a permanent debt loan amount on the Perm. Debt tab.

[Spencer Burton]

7 years, 9 months ago in reply to: Rent Bumps #3090

You are correct, that is one of the limitations of this model. However, if you select to model bumps as a percentage per year or an amount per square foot/meter per year, the bumps do occur on the anniversary of the lease start date each year.

With that said, if you’d like to model more detail into a specific tenant(s), the advantage to Excel (as you know) over non-Excel options like ARGUS is that you can manipulate the guts of the model. To do this, set the Calculation tabs to ‘Show’ on the Summary tab, go to ORI-Calc, and then edit the 1st Gen Rent (columns MM:RN) of the tenant(s) in question. My only recommendation would be to set the font color of the cells you change to red to remind yourself later that you changed those cells.

[Spencer Burton]

7 years, 9 months ago in reply to: Insufficient Cash Flow #3088

In certain circumstances, the sum of the partners’ contributed capital is not returned in the first hurdle (Return of Capital and Preferred Return Hurdle). This isn’t necessarily an undesired outcome but I thought the event was important enough to alert the user when it occurs. Thus, when the sum of G46:P46 (return of capital) does not equal the sum of cells F48:P48 (Contributions from LP or LP’s total contributed capital), cell F46 alerts the user.

[Spencer Burton]

7 years, 9 months ago in reply to: Is this the right model? #3086

It sounds like the All-in-One is our best option for what you describe. Make sure to read our guide to getting started and watch our tutorials before you start.

[Spencer Burton]

7 years, 9 months ago in reply to: Confirm No Viruses in Macros #3084

That is correct. I wrote all of the Macros myself and can assure you, I have not included any viruses.

Enjoy the model!

[Spencer Burton]

7 years, 9 months ago in reply to: Link not arriving #3082

The link is sent immediately. On occasion, spam filters on the receiving end will capture the email. The email may still come through, but just to be safe here’s your link:

[Spencer Burton]

7 years, 9 months ago in reply to: Make Printer-Friendly #2960

You are correct, I have not setup print areas yet for the All-in-One – I’ll add that to my feature request list. I release updates every weekend, adding features and fixing bugs as I find spare time.

[Note: print areas have since been added to most sheets to make the model printer-friendly]