Multi-Family Acquisition: Unit Mix


The purpose of this post is to outline the key functions of the Unit Mix in CREModels multifamily acquisition models. These features should be universal across all acquisition models unless noted otherwise.


Unit Type

The first column of the Unit Mix table is used for categorizing the property’s Floorplans by Unit Type. Next, the user may input different floor plans, along with their square footages and the total number of units of each floorplan. Thereafter, the user can input the number of units rented for each floorplan.


Existing Rent Roll

Within the Existing Rent Roll section, the user must enter the Current Rent/Unit for each floorplan of the property. However, if the user chooses to input a % for the Current Rent Deviation Threshold (%), then any monthly rent amounts per unit which are that % above or below the average monthly rent will be highlighted in dark blue, as exampled below.


The Current Rent/Unit values will be used to calculate the rent PSF/Month, the total Rent/Month, and the total Rent/Year. The calculated current Rent/Year will be used (subject to the Organic Rate Growth input entered for Year 1 in the Income table below the Unit Mix) in the calculation of the Gross Rental Income for the Year 1 Pro Forma statement.


Market Rent

After entering the Existing Rent Roll information, the user can input the Market Rent for each floor plan. The column to the right of the Market Rent inputs is going to show the Effective Market Rent/Unit, which is going to be the Market Rent/Unit entered by the user unless the amount entered is $0. Then, the Effective Market Rent/Unit will be the Current Monthly Rent/Unit. From there, the (Loss)/Gain-to-Lease is shown for each floorplan.


Reno Cost, Post Renovation Rent & Reno Downtime

The Value Add Assumptions section of the Unit Mix table allows the user to enter the expected renovation costs per renovated unit and the rent premiums to be achieved after renovations, as well as disburse renovation of the units across the first 4 years of the analysis. If any units are entered in the # of Units Reno’d columns, the user must enter the number of months that the renovation of a unit is expected to take in the Avg Reno Downtime column.

The inputs will be used in the calculation of Average Occupancy (based on down units) in the Income table and Down Units (For Renovations) loss in the pro forma statement.

Note: The user may enter 0 for # Units Reno’d or model renovations for any number of units which is less than the total units of that floorplan, however, If the user enters values for # of Units Reno’d that, in total, equal more than the total number of units for that floorplan, the model will show an error message to the right of the Avg Reno Downtime column which states: “TOO MANY RENOVATED UNITS”.

If the Avg Reno Downtime for all Floorplans is expected to be the same, the user can select “Y” from the “Use Reno DT Override?” dropdown (above the Post Renovation Rent columns) and simply enter the expected renovation downtime for each of the units.