Office Building Acquisition – 10 Year Financial Model (Excel XLSX)

BENEFITS OF THIS EXCEL DOCUMENT

1. Presents an investment scenario of an Office Building, from the acquisition of the property to a potential future sale.

REAL ESTATE EXCEL DESCRIPTION

This product (Office Building Acquisition – 10 Year Financial Model) is an Excel template (XLSX), which you can download immediately upon purchase.

An office building acquisition involves purchasing a commercial property primarily used for business operations, such as office spaces, meeting rooms, and coworking areas. Investors evaluate the building's location, tenant occupancy, lease agreements, and financial performance before purchase. The goal is to generate rental income and capitalize on property value appreciation. Acquiring office buildings requires careful assessment of market demand, maintenance costs, and potential for lease renewals or upgrades to maximize returns.

This Financial model presents an investment scenario of an Office Building, from the acquisition of the property to a potential future sale. The model contains the basic elements required to determine a range of possible IRR returns to an investor, given a high-level set of assumptions about the asset's operating forecasts, leverage, and exit price.

Model Structure

•  General Setup & Acquisition Inputs
Operating and Acquisition-related inputs, including Project Timing, Acquisition, Renovation and Property Sale Assumptions, Building Metrics (Land Size, Building Coverage, Rentable Area, Occupancy Rates), Revenue (Rental Revenue, Ancillary Revenue, Expenses Reimbursement), Operating Expenses, Capital Expenditures and Financing through Equity and 2 Loan types.

•  Scenarios
Scenario Analysis using different approaches of calculating forecasted figures, usually calculating 3 scenarios; a base, an upside and a downside scenario.

•  Debt Schedules
Amortization Schedules for the 2 types of loans provided in the model (Acquisition and Permanent Loan)

•  Monthly Cash Flow
Monthly CF presents all the operating cash flows of the property over monthly periods.
It allows users to control the timing and how the cash flows over that time.

•  Annual Cash Flow
A roll-up of the monthly cash flows into annual periods from property acquisition to disposition.

•  Performance Reports
The model includes KPIs and Perfomance dashboard reports assisting users to monitor hotel's operations and profitability.

•  Project Returns
Report presenting project unlevered and levered returns (Pre-Tax & After-Tax IRR, MOIC, Cash Outflows, Inflows and Profits)

•  Investors' Returns Waterfall
A 4-tier IRR hurdle waterfall model to distribute proceeds between investors. The model allows for up to four tiers (IRR hurdles) and assumes only one sponsor (i.e., GP) and one LP. The first tier distributes cash flow to the partners until the LP has achieved some defined preferred return and received a full return of capital. Assuming the preferred return hurdle is hit in tier one, cash flow is distributed in tiers two through four based on a defined promote structure and hurdle rates as outlined by the user.

•  Acquisition Summary:

A high-level summary of the project key info, including:

•  Key Project Metrics (Building Areas, Stabilized Yield on Cost, Payback period, Debt Yield, DSCR)
•  Uses & Sources of Cash
•  Operations Summary (Gross Revenue, Net Operating Income, Net Cash Flow)
•  Property Sale and Project Level Return Metrics (Unlevered & Levered)
•  Partnership Level Return Summary (LP's & GP's)
•  Dashboard

Detailed instructions for the use of the model are included in the Excel file.

Help & Support

Committed to high quality and customer satisfaction, all our templates follow best-practice financial modeling principles and are thoughtfully and carefully designed, keeping the user's needs and comfort in mind.
No matter if you have no experience or are well versed in finance, accounting, and the use of Microsoft Excel, our professional financial models are the right tools to boost your business operations!
If you, however, experience any difficulty while using this template and you are not able to find the appropriate guidance in the provided instructions, please feel free to contact us for assistance.
If you need a template customized for your business requirements, please e-mail us and provide a brief explanation of your specific needs.

Source: Best Practices in Real Estate, Integrated Financial Model Excel: Office Building Acquisition – 10 Year Financial Model Excel (XLSX) Spreadsheet, Profit Vision