[GET] Real Estate Financial Modeling Course - Office Development

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Real Estate Financial Modeling Course - Office Development
Learn how to build an Office Real Estate Financial Model from scratch based on a real Case Study.
Highest rated
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(13 ratings)
600 students
2.5 hours on-demand video
2 downloadable resources

Description
This course is based on the following Case Study:

Background

As an investor at Udemy Capital specializing in office building developments, you are planning to purchase a land plot to develop a modern, build-to-suit office building for a major tenant who is willing to sign a 10-year lease (with no break options) for their headquarters. As part of Udemy Capital’s underwriting process you need to model the following assumptions on a monthly cash flow basis. If you think, that some of these assumptions may not make sense or could be more accurate, feel free to change them as long as you justify it properly.

Land and Acquisition Costs

Location: Barcelona’s Prime Office Area

Purchase of the Land on 01 January 2025

Land Purchase Price: to be determined by a minimum Levered IRR (LIRR) of 15% and an Equity Multiple (EM) of at least 1.80x

Buildability: 10,000 sqm

Real Estate Transfer Tax: 10% over Land Purchase Price

Notary and Registry: 0.25% over Land Purchase Price

Buy-Side Brokerage Fee: 1.50% over Land Purchase Price

Due Diligence: 75,000€

Development

Project: 10,000 sqm

Construction Period: 18 months starting in Month 1

Hard Costs: 1,800 €/sqm

Soft Costs: 15% over Hard Costs

Contingency: 5% over Hard + Soft Costs

Leasing Costs: 1 month of Rent

Tenant Improvements: 23.50 €/sqm to be paid out for 2 months and starting the first month of rent

Operations

Gross Leasable Area (GLA): 10,000 sqm

Rent: 23.50 €/sqm

Yearly Rental Bump: 2.50% on each lease anniversary

Free Rent: 5 months of rent

Operating Expenses (Opex): 15% over Gross Rental Income

Non-Recoverable Expenses: 10% of Opex

Building Capex Maintenance: 5% over Gross Rental Income

And more...



https://www.udemy.com/course/real-estate-financial-development-modeling-course/?couponCode=3F71936ABE66022DDBAA

Enjoy!