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home/Knowledge Base/I have a question about a model.../Value-Add Apartment Acquisition Model/LP capital is not fully returned first before distributions are made. Is there a setting to make LP capital be prioritized before distributions are made?
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LP capital is not fully returned first before distributions are made. Is there a setting to make LP capital be prioritized before distributions are made?

5 views 0 October 1, 2020 Updated on November 26, 2022

If I understand correctly, you are looking to first distribute 100% of distributable cash flow to the LP until the LP has received a full return of capital and preferred return, before distributing to the GP? If so, simply set the ‘Split to GP’ percentage in the Pref. Return tier (cell J234) to 0% and the LP capital will be fully returned before any other distributions are made.

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Value-Add Apartment Acquisition Model

  • LP capital is not fully returned first before distributions are made. Is there a setting to make LP capital be prioritized before distributions are made?
  • I need help to modify (customize) the model
  • Where do I account for downtime of income during renovation?
  • Is there a best way to analyze a value add mixed use (Multifamily + retail) asset within your models?
  • Is there a way to add more debt sources without breaking the model?
  • The numbers don’t seem to be updating the IRR when I change some figures?
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