The Pro Forma

The College Height Pro Forma is accessed by a clickable in the Library. The pro forma assumes a 20% of investment from equity, a 20% internal rate of return (IRR Excel function) over seven years, 7% interest,732 units, and a medium rate of absorption of 15.25 units  sold per month over 48 sale months. Total revenue is about $497 million.

All the costs go into the project. The pro forma is the financial analysis of the project.

The tabs of the spreadsheet are:

  • Overview
  • Phasing of construction
  • Absorption rates
  • Inputs
  • Overview
  • Phasing of construction
  • Absorption rates
  • Inputs
  • Summary
  • Cash Flow
  • Revenues
  • HOA Assets
  • Energy
  • Residential units
  • Building fees
  • Building team consultants
  • Site improvements
  • Podium
  • Project fees
  • Project team consultants
  • Land acquisition
  • Timing Excel functions

The project pro forma is frequently used to test assumptions and to keep up with the best available information on prices. The purchase price for market housing is usually based on comparables. For this project, however, there are no comparables the price was set on achieving an internal rate of return of 20%.

The HOA pro forma

The pro forma for monthly HOA dues uses a spreadsheet required by the California Department of Real Estate. It includes income from parking leases that pay for the podium and income from short-term parking charges. There may be income from the café, store, and meeting room. This income reduces the dues and offsets the increase in expenses by building the parking podium. Dues are higher by about $100 per month because of the cost of the Transportation Demand Management (TDM). Dues to the HOA will run from $156 to $204 per month.

We also had pro forma for the Village Bus and the Café.