Real Estate Deal Pitch Final
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Transcript of Real Estate Deal Pitch Final
Executive Summary
1. Market Characteristics2. Site Plan3. Timeline4. Capital Structure5. Distribution Waterfall6. Analysis of Risks
Market DemandResidential
◦ 6.2% Avg Vacancy◦ 4.4% 12 month rent growth◦ Rents
Retail◦ 3.1% Avg Vacancy◦ 8.8% 12 month rent growth◦ Current asking rent $23/sqft
($/sqft/mo)
Site Plan On Western Ave.Development Plan
◦ Timeline- Two years to build both plots◦ Cost - $111 Million
1101 Western Avenue◦ 2 floors retail / 4 floors residential
1100 Western Avenue◦ 6 floors parking / 7 floors residential
Maximize waterfront views for residential and foot traffic for retailLEED Silver certification on all buildings
Floor Plans900 Square Foot 2 Bedroom 1,500 Square Foot 3-Bedroom
Retail Space- 25,000 sft per floor- Split 2-1, Anchor and two stores
Cash Flow Distribution
Step 1: Return All Capital - $40 milStep 2: Accrue and Pay Preferred Return at 7% (pari passu)Step 3: Split Free Cash Flow After Preferred Return 3 waysStep 4: Sell Property in Year 10Step 5: Split Sales Proceeds 3 ways
Analysis of Risks (Qualitative)
1. Construction Risks◦ Delays from flooding
2. Market Risks◦ Macroeconomic conditions
3. Leasing risks◦ Higher Vacancy