CRE Deal Metrics
Property assumptions
NOI (year 1)
Entry cap rate
Exit cap rate
NOI growth / yr
Debt
LTV
Interest rate
30-yr amortization, 5-yr term
GP / LP Waterfall
LP equity share
GP co-invests the remainder
Preferred return
rate x initial equity, paid each year: LP first, then GP
Pref type
Operating split after pref
LP / GP split of annual cash flow left after both prefs
LP IRR hurdle at sale
after capital is returned, LP takes 100% until this IRR
Sale split above hurdle
LP / GP split of remaining sale proceeds
Equity multiple
--
deal level, 5 years
Avg cash-on-cash
--
avg annual yield on equity
Levered IRR
--
unlevered: --
LP / GP IRR
--
after waterfall
Deal structure
| Implied entry value (yr-1 NOI / entry cap) | -- |
| Loan (-- LTV) | -- |
| Equity -- LP (--) | -- |
| Equity -- GP (--) | -- |
| Equity -- total | -- |
| Annual debt service | -- |
| Year-1 DSCR | -- |
| Loan balance at exit | -- |
| Exit value (yr-6 NOI / exit cap) | -- |
| Net sale proceeds after payoff | -- |
A. Annual distributions from operations
| LP | GP | |||||||
|---|---|---|---|---|---|---|---|---|
| Year | Cash available | Pref | Split | Subtotal | Pref | Split | Subtotal | Distributed |
B. Distribution of sale proceeds (end of year 5)
| Tier | LP | GP | Total |
|---|
C. Annual cash flows by partner (operations + sale)
| LP | GP | ||||||
|---|---|---|---|---|---|---|---|
| Year | Operations | Sale | Subtotal | Operations | Sale | Subtotal | Total |
American (deal-by-deal, per-period) waterfall. Each year, operating cash after debt service pays the LP pref (rate x LP capital), then the GP pref (rate x GP capital), and the rest splits at the operating split. Capital is returned only from sale: LP capital first, then GP capital, then any unpaid cumulative pref (LP, then GP), then 100% to the LP until its IRR across all years reaches the hurdle, then the residual split. If operating cash or sale proceeds are negative, partners fund the shortfall pro rata to equity.
Levered cash flow after debt service
| Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 + exit | |
|---|---|---|---|---|---|
| NOI | |||||
| After debt svc |
NOI grows at the selected rate; exit at end of year 5 at year-6 NOI / exit cap; no transaction costs or refis. Yr-5 column includes net sale proceeds.