Expected Cash Flow / ROI

[Jason Black]

To date, I've rehabbed and managed relatively small mixed-use properties. I'm putting together a pro forma for a large commercial retail development. My banker has already indicated his desire to shop the finished plan around to existing investors.

I've put all the numbers together for development and ongoing operation (this is a build and hold deal). I will be taking a development fee and handling ongoing management. The project comes in at approx. $20M - $8M in equity and a note against the rest. Assuming that I'm not really putting up much of the $8M, what type of net cash flow would an investor or group of investors be looking to see from such a project? Surely there is a rough guideline?