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home/Knowledge Base/I have a question about a model.../Self Storage Development Model
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Why is the Equity amount (cell I54) left as a hard-coded value?

5 views August 26, 2020 mespencerburton-org 0

The hardcoded value in cell I54 (i.e. Equity amount) is intentional. That value is updated via the ‘Click to Recalculate’ button, which when clicked runs a Goal Seek VBA macro that iteratively changes the value in cell I54 until the target LTC (cell C55) equals the actual LTC.

You can test this by a) opening a fresh copy of the model, b) changing the LTC input in cell C55, and then c) clicking the red ‘Click to Recalculate’ button. You’ll see once the recalculate operation runs, that the value in cell I54 has changed.

Spencer uses this logic/technique to avoid the circular reference issue inherit in construction interest calculation. So there is no need to make any changes to the value in cell I54 – in fact, adding a formula in cell I54 will break the model.

Note: While the above answer is specific to the Self-Storage Development model, The above logic is likewise used in Spencer’s Apartment Development and Industrial Development models.

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Self Storage Development Model

  • Why is the Equity amount (cell I54) left as a hard-coded value?
  • I need help to modify (customize) the model
  • Cell I54 seems hard-keyed or a value copy error from a previous version. I see where this pulls – I202 – but they don’t connect.
  • I’m not able to get the model to convert debt from I/O to amortizing
  • How do I make the hold period 10 years?
  • Why does cell Y83 discount the cash flow almost 90% of the total revenue and slowly burn off?
View All 8  

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