23 Apartment + 1 Retail Bldg: How to analyze?

[Sal Pacheco]

Folks, I’m looking at a deal in california where a developer is selling the property and expired for construction plans. The City had approved construction of 23 apartments and 1 retail space in a premium area close to downtown. They also had approved financing by a local bank. The reason they are giving for not going trough with construction is that the deal was too small for them. We (I have a few partners) would have to go through City approvals again. I have talked to the City planner and he doesn’t see a problem with the project being re-approved.

I’m trying to do an analysis on this type of deal. Does any one have any good resources for a pro-forma tool that I can use? Also, any advice in analyzing this type of deal?

A little background on me, I’m a construction manager so I have the construction part of this down. My partners are RE investors but have never done a deal this big. Raising the capital is not a problem. We just need help analyzing the deal.

Thanks