This mixed-use project delivers 36 residential apartments above 850 sqm of ground-floor retail within an urban Australian site. The capital stack combines $10.0M in senior construction debt with $8.1M in investor equity to fund the $18.1M project cost, with a strategy built around a standard development timeline and operating hold period leading to a 2035 exit.
01
2027 Q1
Land acquisition and construction commencement
02
2028 Q3
Construction completion — six-quarter build
03
2029
Lease-up and stabilization period begins
04
2035
Exit disposition at 5.25% cap rate
Approach
Modeling Methodology
The financial model underwrites the full project lifecycle, from initial land acquisition through the final exit disposition.
1
S-Curve Construction Draws
The draw schedule front-loads land costs and distributes hard costs following a standard bell-curve pattern.
2
Dual-Speed Lease-Up
Residential and retail tenancies are modeled on separate stabilization timelines, reflecting distinct mixed-use absorption dynamics.
3
Annual Rent Escalation
Annual escalations are applied to both residential and retail base rents, compounding throughout the entire hold period.
4
Conservative Exit Assumptions
Exit valuations utilize standardized cap rate and disposition cost assumptions, paired with a transition to amortizing permanent debt.
Workbook Structure
What the Model Covers
The model is organized across eight integrated tabs, tracing all outputs back to a single input sheet.
Assumptions
All model inputs are centralized on one sheet for streamlined updates.
Development Budget
Provides a quarterly S-curve cost allocation with full draw reconciliation.
Debt Schedule
Tracks the transition from construction financing to permanent amortizing debt.
Revenue & Lease-Up
Models the occupancy stabilization timelines for residential and retail components.
Operating Pro Forma
Calculates key performance metrics including NOI, cash flow, and debt coverage.
Sources & Uses
Ensures static reconciliation between total project costs and funding sources.
Equity Returns
Analyzes exit valuations and investor-level performance metrics like IRR.
Audit Checks
Provides formula-driven integrity checks to verify all model calculations.
Capital Structure
Sources & Uses: $18.1M Total Capitalization
$10.0M
Senior Debt
55% of total capitalization
$8.1M
Investor Equity
45% of total capitalization
$18.1M
Total Project Cost
Fully capitalized
Uses Breakdown ($M)
Construction Timeline
S-Curve Draw Schedule
Quarterly construction draws totaling $16.6M across seven quarters, front-loaded with land acquisition in Q1 2027.
$16.6M
Total Draws
Across seven quarters
$2.8M
Peak Quarter
Q1 2027, Q4 2027, Q1 2028, Q2 2028
Q3 2028
Final Draw
$1.2M completion draw
Quarterly Construction Draws ($M)
Debt Structure
Construction-to-Permanent Debt Transition
$10.0M senior debt facility transitions from interest-only construction financing to a 25-year amortizing permanent loan at exit.
01
2027–2028 — Construction Period (Interest-Only)
Senior debt draws $10.0M at 6.2% interest-only. Draws follow the S-curve schedule across seven quarters.
02
2029 — Permanent Loan Conversion
Debt converts to a 25-year amortizing permanent loan at 5.8% upon stabilization.
03
2035 — Exit & Debt Repayment
Remaining $8.8M loan balance repaid at exit from gross proceeds of $23.5M.
$10.0M
Senior Debt Facility
55% of total capitalization
6.2% → 5.8%
Rate Transition
Construction to permanent
$8.8M
Balance at Exit
After 6 years of amortization
Operating Performance
Revenue, NOI & Lease-Up Ramp
96%
Residential Occupancy
Stabilized by Year 2, ramping from 40% at opening
93%
Retail Occupancy
Stabilized over six quarters, trailing residential absorption
75.4%
NOI Margin
Stabilized margin held consistently through the hold period
Investor Returns
Equity Cash Flows & Exit Proceeds
Annual Investor Cash Flows ($M)
$8.1M
Equity Deployed
Across 2027–2028
$14.1M
Net Proceeds
At 2035 exit
10.3%
Investor IRR
Nine-year lifecycle
2.03x
Equity Multiple
$8.1M in → $14.1M out
At exit in 2035, the property sells for $23.5M at a 5.25% cap rate. After repaying $8.8M in senior debt and $586K in disposition costs (2.5% of gross value), investors receive $14.1M in net proceeds — returning 2.03x on $8.1M of deployed equity over a nine-year hold.