Structural audit for development, income, and acquisition real estate models

The modelling risk

• Development and income-producing real estate models combine phased construction drawdowns, leasing or absorption assumptions, and a debt facility that steps between construction and investment financing, a structure prone to broken links at each transition.
• Acquisition and refinancing models are frequently built or updated under transaction-timeline pressure, exactly the conditions structural errors are most likely to survive unnoticed into an investment committee or lender decision.
• An investment committee or lender relying on a sponsor-submitted model did not build the model it is being asked to approve or finance.