Ground Lease Valuation Model in Excel - How to Use

A section-by-section guide to using our Ground Lease Valuation Model in Excel. This is an Excel financial model for analyzing and valuing a ground lease. Either standalone or module for inclusion in your property-level cash flow model. Fee simple and leasehold valuation. Unlevered and levered return calculation of ground lease investment. Learn more and download the model here: www.adventuresincre.com/groun...
00:00 - Introduction
01:12 - Property Description
03:01 - Investment Timing
04:43 - Ground Lease Terms
07:07 - Valuation Fees and Leasehold
10:03 - Discount Rate Analysis
13:07 - Leasehold Valuation
14:14 - Ground Lease Returns on Levered and Unlevered Basis
16:16 - Debt Valuation and Levered Returns
19:37 - Conclusion and Future Updates
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[@adventuresincre]

We also have a ground lease module in our All-in-One. But this model is great for those of you who need a standalone ground lease model or a ground lease module to add to your own model. You can find the video for using the All-in-One Ground Lease module here: czcams.com/video/cwmA-V6jUuY/video.html

[@pv0315]

Gracias.

[@jonnash7843]

Nicely done.

[@pv0315]

Thanks Spencer.. i recently added this land lease module to my devp model. It looks great and ready to fit in a homogenious portfolio of 3 - 4 projects.. my portfolio model has achieved a great meaning and substance.

[@acemishra]

can u please share the devp model you are using for valuation

[@jmj326]

Just came across this vid. Thank you for putting it together. I had a question regarding the reversion value. The vid takes the direct cap value and grows it by 1%/yr. However, I would think another way to do so would be to grow the NOI by a percentage per year and capping the last year's NOI to get a reversion value. Would appreciate your thoughts. Thank you

[@AdamJRosen]

Good video thanks. Question: would you alter this template at all for an urban property where the size of the property is a multiple of the land size?

[@bossblue2442]

If there is over 20 years remaining on the ground lease won't most equity buyers cap out the NOI inclusive of the ground lease payments? When there is under 20 years or 15 is when groups will solve for the leasehold value? i.e. take PV of remaining payments and deduct from market value. I am trying to understand better from an acquisition perspective. Thank you!

[@eldukenumero1]

Would you for a fee create a model for myself? And what do you charge?