ASSET UNDERWRITING · LAST EDITED JUST NOW

Madison Heights

118-unit multifamily · Austin, TX · Value-add

01 / MODEL INPUTS

Underwriting assumptions

Purchase price

Closing costs

Going-in cap rate

Number of units

Avg. monthly rent

In-place occupancy

Hold period

yrs

Exit cap rate

Rent growth

% / yr

✦

Model confidence is high. You’ve filled 92% of the required inputs. Add financing terms to complete the debt case.

02 / INVESTMENT SUMMARY

Unlevered IRR135.1%+1.8% vs. market benchmark

Equity multiple2.04xOver 5 year hold

Cash-on-cash8.6%Year 1 yield

Equity value creation$20.62M

Year 0Year 1Year 2Year 3Year 5

03 / OPERATING PERFORMANCE

Year 1 NOI$1.74M↗ 3.4% annual growth

NOI by yearYear 1 — 5

$1.74M

Year 1

$1.80M

Year 2

$1.86M

Year 3

$1.93M

Year 4

$1.99M

Year 5

MetricYear 1Year 2Year 3Year 4Year 5

Potential gross income$3.03M$3.03M$3.03M$3.03M+2.1%

Effective gross income$2.85M$2.85M$2.85M$2.85M+1.8%

Operating expenses$1.11M$1.11M$1.11M$1.11M-1.2%

Net operating income$1.74M$1.74M$1.74M$1.74M+3.4%