A good development project starts with the land. Watch as consultant Marina Gitas shows Greg Dickerson how she analyzes a potential development using both a back-of-envelope model and a detailed ground-up multifamily development model. Download the back-of-the-envelope model below and follow along!
Part 1: “Back of the envelope” multifamily development model
Back into a development’s viable land value using this handy back-of-the-envelope development model. Use the sensitivity tables to better understand the impact that the land’s purchase price has on your returns.
Part 2: “Detailed” ground up multifamily development model
Let’s get detailed.
This walk-through describes all the key components of a detailed multifamily ground up development model – an analyst’s dream!
Marina has 20+ years of experience working in financial real estate, since graduating from McGill University. Her experience ranges from small real estate firms to multi-billion-dollar REITs with nationwide portfolios. She has experience in asset management of operating properties to underwriting ground up development, redevelopment, acquisitions, dispositions, mixed use projects from infrastructure through operations. Asset types including residential rental, condominiums, retail, office, mobile parks (The Yards DC is a good example of a project she has solely worked on since inception). Beginning in 2019 Marina shifted her full time focus to working as a consultant. Marin’s work through Bullpen includes real estate modeling, analyzing and providing feedback on real estate investment deals, helping business partners make sound business decisions. The models she creates are user friendly. Marina focuses on creating models that her clients can keep using to analyze deals as they continue to work together. Investing in modeling provides future value for her clients.
Purpose of this Model
- Quickly determine the land value required to attain a given return
- Input key development parameters
- Calculate debt requirements
- Automatically calculate returns
- Use for high level, quick view to see if your deal pencils
*Note: Iterative calculations must be enabled in your settings for this model.