Catherine Bell walks through reverse-engineering rental and NOI numbers for a $250M property project, modeling monthly rents from $5,000 to $8,000 to estimate net operating income. She also discusses fundraising challenges on an Altadena redevelopment deal affected by recent fires.
Here, let's dictate it.
Ready, go. Reverse engineer the numbers for the quick math section from $5,000 a month to $8,000 a month. Reverse engineer those numbers to see what we would end up with at an NOI if we spent $250 million to complete the entire project up there. So basically saying if we raised $250 million, spend it on that property, what would be our net operating income with those, with those rents?
So what we're doing here is we're doing the numbers and the numbers tell us what to do, right? So when we can reverse engineer what we're looking for, And we can restructure it. So while this is doing this, a really great example yesterday, one of my other partners, she came to me with a whole other project in Altadena. The fires completely devastated that entire city, like the houses, the businesses, everything, schools gone. And so she grew up there. So we're talking about it and she's been trying to raise capital for this particular deal for 6 months and just every door being shut in her face.
