Washington, D.C. Development Pro Forma (Pennsylvania Ave)

March - April 2016
Course: Feasibility Analysis of Development | PLE635
Programs used: Microsoft Excel, InDesign

For our final project, we conducted a financial and market feasibility study on a Class-C heritage-designated office property in the Capitol Hill neighbourhood of Washington, District of Columbia. Based on historical property and lease data, area-specific market research reports, heritage district guidelines, and zoning by-laws, we determined:

  • Potential Gross Revenue 
  • Effective Gross Income (EGI)
  • Operating Expenses 
  • Net Operating Income (NOI)
  • Internal Rate of Return (IRR)
  • Net Present Value (NPV)
  • Hard & Soft Costs
  • Construction Loan Details & Interest Carry
  • Sale Price (Using appropriate cap rates)
  • Debt Service Payments (Using various Loan-to-value ratios)

We also conducted 5 sensitivity analyses, which included using different loan-to-value ratios, varying construction costs, varying purchase prices, and varying gross square footage.

Group Member: Alexsandria Pasquini