Multifamily
Apartments, down to the unit
Unit mix and in-place rents drive the model, from loss-to-lease through the renovation premium. Conventional and student both run on the same engine.
In-place to market
In-place rents roll toward market as leases turn, with loss-to-lease carried explicitly. Concessions and bad debt come out of income. RUBS, parking, and pet fees are booked as other income.
- Unit mix, in-place vs market, loss-to-lease
- Concessions, bad debt, and other income
- Per-unit value-add renovation with a rent premium
In-place rent / unit$1,845Rent roll
Market rent / unit$2,090Comps
Renovation premium+$185Value-add
Renovation on a turn schedule
Set a per-unit budget and the pace of turns. The rent premium arrives as units come back online, so the NOI ramp and the exit follow the business plan rather than a flat growth rate.
- Per-unit budget and turn schedule
- Rent premium ramps as units renovate
- Exit on the stabilized, post-renovation NOI
Levered IRR
18.0%
Equity multiple
2.19x
Going-in cap
5.4%
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