Forum Replies Created
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Spencer Burton
Keymaster6 years, 10 months ago in reply to: Equity CF Bug #2870Thanks for pointing this out. I will include the fix in the next version of the model.
Keymaster6 years, 11 months ago in reply to: Minor tuning-up #2858Thanks Joacko! I’ve made the update in the most recent version of the file.
Keymaster6 years, 11 months ago in reply to: Cells T44:U44 of the Summary tab are being propagated when not in Dev. Mode. #2860I’ve made the correction to the most recent version of the model. Thank you for pointing this out!
Keymaster6 years, 11 months ago in reply to: AIO – Version 6.22 – Errors when choosing less than 10 year period #2862Thanks for letting me know. When I added the sponsor fees to the Equity CF tab, I failed to make the new net levered CF line dynamic to analysis period length. I’ve made the fix and uploaded the revised file. You can download the updated file here:
https://www.adventuresincre.com/?paybox-key=4ici2jivjwpws63u
KeymasterKeymaster7 years ago in reply to: Perm. Debt #3250Onke,
Thanks for the kind words and great to hear from another one of our South African readers!
What you’re referring to, we call here in the United States ‘Stepped Amortization’. Unfortunately, the model is not currently built to allow for stepped amortization. I’ll add your request to our ‘Feature Request’ list, but in the meantime you should be able to customize the Perm. Debt tab without much trouble to include this.
Best!
Spencer
Keymaster7 years ago in reply to: Capex / TI #3254Great question! The model calculates the initial capital contribution (e.g. equity required to get to stabilization) and reports that amount under ‘Equity’ in the ‘Initial Investment’ section of the Summary tab (cell Q43). However, to see the total equity required over the hold period you’ll go to the Equity CF tab (Waterfall Tabs to ‘Show’ on the Summary tab), where in cell D13 you’ll find the all-in Equity requirement.
With that said, if the intention is to hold equity in reserve until some future point when that equity will be drawn on to cover future capital requirements, the waterfall won’t accrue a preferred return on that amount until it is drawn on.
Keymaster7 years ago in reply to: TI/LC Reserve #2982You’ll notice in the ORI-OpSt tab under Capital Expenditures, Tenant Improvements, Leasing Commission, Other CapEx, and Capital Reserve are all modeled. TIs and LCs are projected and hit the DCF (columns K:T) per the assumptions entered on the ORI-RR tab, whereas the Stabilized (column J) and Residual (column U) pro formas calculate an average annual TI and LC load.
Keymaster7 years ago in reply to: Cost of Equity before development stabilization #3246Answer to question 1:
Sounds like you have a form of convertible debt / preferred equity with a debt service-type requirement payable as soon as those funds are drawn on – rather than unpaid pref accruing to the capital account as the model is currently structured. Is that correct? Unfortunately, I can’t think of a way to model this in the Ai1 without customizing the partnership cash flow tabs (Equity CF and/or Co-GP CF tabs). Assuming you have just two partnership groups (Sponsor+LP), it would be a manner of modeling a distribution to the LP during the negative cash flow months (i.e. during construction and lease-up) while having the sponsor contribute the amount distributed to the LP.
Answer to question 2:
Correct, if actual permanent (takeout) loan funding occurs prior to stabilization, for modeling purposes here (since the perm loan funds at stabilization) you could alter the I/O period for the Ai1 perm loan to the difference. Another alternative, is to change the ‘Stabilization Date’ on the Summary tab to the date when you expect the Permanent loan to fund. This may throw off your stabilized value calculation, but you can fix that by adjusting the first stabilized year assumption in cell J7 of the MF-OpSt or ORI-OpSt tab. The result will be the Ai1 perm loan will takeout the construction loan at the same time as your actual loan.
KeymasterIf you are using the ORI module, NRA is calculated as the sum of all rentable SF as defined on the ORI-RR tab. If you are using the MF module, NRA is the sum of all rentable SF as defined on the MF-RR tab (average SF/unit x total number of units).
As a reminder, black font cells are label and output cells and shouldn’t be changed. Blue font cells are required input cells, which drive the values calculated in the output (black font) cells. Orange font cells are optional input cells, while green font cells are links to outputs from other worksheets.
Keymaster7 years, 1 month ago in reply to: Equity Contributions % change #3242Thanks for this point. Initially, the thought was that to account for situations where there is no LP, the user would simply set the Sponsor’s contribution to 100% and the waterfall would turn off. However, various cases have arisen where there is a sponsor with 0% contribution but some distribution. I’m working on a solution to this, but in the meantime what I suggest is to set the sponsor’s contribution percentage on the Equity CF tab to some de minimus value (e.g. 0.0001%) and then adjust the distribution percentages to match the deal structure.
Keymaster7 years, 1 month ago in reply to: Interest on Interest Reserve #3236The interest reserve does accrue interest on funds drawn from it. Or put another way, interest is charge on interest accrued. You can see this formula in row 30 of the Dev-Interest Calc tab.
Keymaster7 years, 1 month ago in reply to: Using a Refinance to partially repay investors #3234The sponsor compensation question has arisen before. You can not currently add sponsor compensation to the waterfall, but I’ll go ahead and add that to the feature request list.
KeymasterNot sure I entirely follow. What exactly are you looking for when you say a “straight line split between the sponsor and investors?”
If you mean the sponsor is not promoted, but rather all cash flows are distributed pari passu to the the sponsor and LPs, what you would do is set the IRR hurdles to unattainable levels (e.g. 999%) such that all cash flows are split evenly.
Keymaster7 years, 1 month ago in reply to: formatting on ORI-Calc tab #2854This is great feedback – and nitpicking is good, it makes for a better model. I’ll include a fix for this in the April update.