MODEL DESIGN
How to Build a Redevelopment and Adaptive Reuse Pro Forma
Overview
ARTICLE IN PROGRESS
We're writing a deep engineering essay on DV-002. How we built it, the design choices behind it, and how to use it. The model itself is live and available today.
DV-002 is the conversion pro forma. Office-to-residential, retail-to-multifamily, industrial-to-mixed-use. An existing shell, a new use, and two construction archetypes mashed together. The model handles monthly draws, capitalized interest, and the choice between exit at stabilization versus a merchant-build sale at completion.
Planned Sections
When the full piece is published, it will cover:
- The adaptive reuse problem: an existing shell, a new use, two construction archetypes mashed together.
- Design choice: monthly construction draws over an editable horizon.
- Design choice: capitalized interest reserve mechanics.
- Design choice: exit at stabilization vs merchant-build sale at completion.
- What's excluded (no multi-phase reuse, no preservation tax credits).
- How to use the model for conversion plays (office-to-residential, retail-to-multifamily).
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
DV-002 is an Institutional-tier, cross-asset redevelopment and adaptive reuse pro forma. Monthly construction draws, capitalized interest reserve, exit at stabilization or merchant-build. Built for REPE developers running conversion plays across asset classes.