MODEL DESIGN
How to Build a Retail Value-Add Pro Forma
Overview
ARTICLE IN PROGRESS
We're writing a deep engineering essay on AQ-331. How we built it, the design choices behind it, and how to use it. The model itself is live and available today.
AQ-331 is the value-add retail pro forma for strip center reposition plays. Tenant-by-tenant rollover and re-tenanting, a user-defined hold period, outparcel development as a separate cash flow stream, and percentage rent and cotenancy provisions where they matter. The deal thesis is in the lease schedule and the model is built for it.
Planned Sections
When the full piece is published, it will cover:
- Retail value-add: repositioning, re-tenanting, and outparcel development on one underwriting.
- Design choice: tenant-by-tenant rollover and re-tenanting modeling.
- Design choice: user-defined hold period.
- Design choice: outparcel development as a separate cash flow stream.
- Design choice: percentage rent and cotenancy provisions.
- How to use the model for strip center reposition plays.
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-331 is an Institutional-tier retail value-add pro forma. Tenant-by-tenant rollover, user-defined hold, outparcel development stream, percentage rent and cotenancy mechanics. Built for REPE shops and brokers underwriting strip center reposition acquisitions.