Greenfield Commons
Nashville, TN · 32 units · Class B · Demo
Live Demo
Start Free TrialAcquisition
$4,800,000purchase price
$3,600,000 loan · 75.0% LTV
$1,272,000 equity
Nashville, TN · 1998 Build
5-yr hold · 7.5% exit cap
Cap Rate
7.9%
Year 1 NOI / purchase price
IRR (5-yr)
19.4%
Levered, with exit
Cash-on-Cash
7.7%
Year 1 cash flow / equity
Equity Multiple
2.23x
Over 5 years
DSCR
1.35x
NOI / debt service
Break-Even Occ.
78.8%
Required to cover debt
NOI
$378,077
$11,815/unit
Annual Cash Flow
$97,882
NOI − debt service
Total Equity
$1,272,000
LTV
75.0%
Annual Debt Service
$280,194
Expense Ratio
27.5%
Pro Forma
Annual projections · Nominal dollars| Year | GPR | EGI | OpEx | NOI | Debt Service | Cash Flow | Cap Rate | DSCR |
|---|---|---|---|---|---|---|---|---|
| Year 1 | $537,600 | $521,344 | $143,267 | $378,077 | $280,194 | $97,882 | 7.9% | 1.35x |
| Year 2 | $553,728 | $536,984 | $146,849 | $390,135 | $280,194 | $109,941 | 8.1% | 1.39x |
| Year 3 | $570,340 | $553,094 | $150,520 | $402,574 | $280,194 | $122,379 | 8.4% | 1.44x |
| Year 4 | $587,450 | $569,687 | $154,283 | $415,404 | $280,194 | $135,209 | 8.7% | 1.48x |
| Year 5 | $605,074 | $586,777 | $158,140 | $428,637 | $280,194 | $148,443 | 8.9% | 1.53x |
Exit Analysis
Sale Price
$5,715,161
Remaining Loan
$3,379,526
Selling Costs
$114,303
Net Proceeds
$2,221,332
Total Profit
$2,835,187
Income & Expense Detail (Year 1)
Income
Gross Potential Rent$537,600
Less Vacancy (6.0%)($32,256)
Other Income$16,000
EGI$521,344
Expenses
Property Tax$48,000
Insurance$18,000
Management (5.0%)$26,067
Maintenance$20,800
CapEx Reserve$16,000
Utilities & Other$14,400
Total OpEx$143,267
NOI$378,077
Distributions & Waterfall
LP-First · 8.0% pref · 70.0%/30.0% LP/GP split
LP Contribution
$1,144,800
90.0%
GP Contribution
$127,200
10.0%
LP IRR
17.9%
LP Equity Multiple
2.07x
GP IRR
29.5%
GP Equity Multiple
3.64x
GP Promote Earned
$179,957
| Year | Distributable | Pref Paid | Pref Balance | Return of Capital | Promote Pool | LP | GP |
|---|---|---|---|---|---|---|---|
| Year 1 | $97,882 | $91,584 | $0 | $6,298 | $0 | $97,882 | $0 |
| Year 2 | $109,941 | $91,080 | $0 | $18,861 | $0 | $109,941 | $0 |
| Year 3 | $122,379 | $89,571 | $0 | $32,808 | $0 | $122,379 | $0 |
| Year 4 | $135,209 | $86,947 | $0 | $48,263 | $0 | $135,209 | $0 |
| Year 5 | $2,369,775 | $83,086 | $0 | $1,165,770 | $1,120,920 | $1,906,299 | $463,476 |
| Total | $2,371,711 | $463,476 |
Scenario Analysis
Adjust assumptions per scenario. All other inputs match the base deal.
Bear
Base
Bull
Exit Cap Rate
Rent Growth / yr
Vacancy Rate
Hold Period
yr
yr
yr
IRR
5.2%
19.4%
30.7%
Cash-on-Cash
6.5%
7.7%
8.5%
Equity Multiple
1.25x
2.23x
3.41x
DSCR (Yr 1)
1.29x
1.35x
1.39x
Exit Sale Price
$4,583,670
$5,715,161
$7,134,515
Net Sale Proceeds
$1,112,471
$2,221,332
$3,612,299
Total Profit
$1,591,843
$2,835,187
$4,337,445
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