Multifamily Analysis - Greenbriar
The document presents a detailed acquisition proforma for Greenbriar Apartments, a 96‑unit multifamily property in Montgomery, Alabama. It outlines income assumptions (gross potential rent of $811,200, other income $19,200, loss to lease, vacancy, and delinquency) resulting in a gross collected income of $749,436. Expenses are itemized per unit (insurance, taxes, utilities, maintenance, management, payroll/admin, G&A, reserves) totaling $366,811, yielding an expense ratio of 48.9% and a net operating income (NOI) of $382,625. The purchase price is $5,050,000 with $300,000 in improvements and $56,750 acquisition costs, for a total project cost of $5,406,750, giving a cap rate of 7.08% and a cost per door of $56,320. Debt financing assumes a 75% loan‑to‑cost ($4,055,063) at 5.75% interest, interest‑only service of $233,166 annually ($19,431 monthly). Equity required is $1.43 M, with a partner equity contribution of $1.5 M and a 7% preferred return ($105,000 annually). Cash flow after interest‑only debt is $44,459, turning negative ($‑28,503) after preferred return. Two exit scenarios are modeled: a 18‑24‑month sale at a 5.9% cap rate (stabilized value $6.486 M) producing a total partner return of $555,954 (18.5% annualized, 17.6% IRR); and a 60‑month sale assuming 2% annual growth (value $7.168 M) delivering a total partner return of $1,591,953 (22.2% annualized, 20.9% IRR). The proforma provides a comprehensive financial snapshot for evaluating the investment’s risk‑adjusted returns.
Topics
Income Assumptions and Gross Potential Rent
Breakdown of rent, other income, loss to lease, vacancy, and delinquency that generate the gross collected income of $749,436.
Expense Structure and NOI Calculation
Itemized per‑unit expense categories (insurance, taxes, utilities, maintenance, management, payroll/admin, G&A, reserves) totaling $366,811 and resulting in a net operating income of $382,625.
Acquisition Cost, Valuation Metrics, and Cap Rate
Purchase price, improvement and acquisition costs combine to $5,406,750; cap rate of 7.08% and cost per door $56,320 provide valuation context.
Debt Financing Structure and Cash Flow Implications
Loan amount (75% LTC), interest rate 5.75%, interest‑only service, and resulting cash flow before and after preferred return.
Partner Equity Contribution and Preferred Return Mechanics
Partner equity of $1.5 M, 7% preferred return ($105k annually), and its impact on cash flow and equity distribution.
Short‑Term Sale Scenario (18‑24 Months) and Projected Partner Returns
Assumes stabilized value at 5.9% cap, sales costs, loan payoff, net proceeds, and yields a total partner return of $555,954 (18.5% annualized, 17.6% IRR).
Long‑Term Sale Scenario (60 Months) with 2% Growth and Projected Partner Returns
Assumes property value growth to $7.168 M, equity share, cash flow, preferred returns, delivering a total partner return of $1,591,953 (22.2% annualized, 20.9% IRR).