MODEL DESIGN
How to Build a 10-Year Multifamily Core Pro Forma Model
Overview
ARTICLE IN PROGRESS
We're writing a deep engineering essay on AQ-111. How we built it, the design choices behind it, and how to use it. The model itself is live and available today.
AQ-111 is the full pro forma for the stabilized multifamily deal that passed the screen. 10-year horizon, unit-mix detail, line-item operating expenses, paired levered and unlevered IRR. It is the model you bring to IC when the story is "buy it, hold it, refinance once, sell it" and the asset already operates the way you want.
Planned Sections
When the full piece is published, it will cover:
- When the screen says yes: graduating from pocket to full pro forma.
- Design choice: 10-year hold horizon for stabilized core deals.
- Design choice: unit-mix detail vs blended-rent abstraction.
- Design choice: line-item operating expense modeling.
- Design choice: levered and unlevered IRR as paired outputs.
- How to use this model for IC underwriting of a stabilized deal.
For an example of the engineering-essay format this article will follow, see how we engineered AQ-141, the Multifamily Opportunistic Pro Forma Model.
About the Model
AQ-111 is a Boutique-tier multifamily core pro forma. 10-year annual cash flows, unit-mix detail, line-item OpEx, paired IRR outputs. Built for REPE shops, brokers, and family offices underwriting stabilized multifamily acquisitions for committee.