10. Building a Development Model from Scratch

COURSE DESCRIPTION

This is the 15th course in the 16-course Accelerator, and the second of three capstone courses. In this case-based course, you will put in practice what you learned in the previous courses to build an institutional-quality, development model without using circular references from scratch by either starting with a blank excel worksheet and building your own or using the skeleton template with some info to help guide you. In this course you will rely heavily on the following concepts learned from previous Accelerator courses:

1. Use the inputs –> calculation modules –> outputs concept to build a fully dynamic real estate model
2. Build out building area and budget summaries
3. Model development cash flows, using the bell curve, steady growth, and straight line formulas as well as some custom projections
4. Build out a draw schedule
5. Calculate unlevered and levered net cash flow lines
6. Calculate property-level return metrics

CASE DESCRIPTION – Sixteen 17th Street

Going through your emails at the end of the day, you happen to come across an email from East Lang Ellis titled ‘Sixteen 17th Street | Fully Entitled Office Development Opportunity in Miraflores Neighborhood of Anytown‘. You find this quite interesting as Miraflores is an historically residential part of the city on the edge of the CBD. Outside of the new office midrise project next to the HUMC medical campus, there is not much else happening in terms of office development here. Miraflores is a great part of the city as most people in this neighborhood work in Center City, which is adjacent to Miraflores. You think to yourself that this would be a great site for an office development as most people in Miraflores walk to work and find that to be a great lifestyle amenity. Bringing the office closer to the neighborhood could be a premium opportunity. Since you received this notice via East Lang Ellis company email, this deal is being widely marketed, so we can expect there to be a lot of activity from other developers eager to expand in one of the hottest markets in the country.

PROPERTY TYPE

• Office

SOFTWARE RECOMMENDED/REQUIRED

• While we recommend using Microsoft Excel, as that is the industry standard, this course will work with most other spreadsheet software such as Google Sheets and OpenOffice Calc
• This course was built using the Google Chrome browser, thus we recommend you use Google Chrome for optimal view experience
• This course is best taken on a desktop computer, although the platform is compatible with tablet and mobile devices

EXCEL PROFICIENCY REQUIREMENT

• The course assumes you have at least a basic proficiency working with Microsoft Excel