I need a model expert to help with this case study

Job ID: 34130706

Budget: $30 – $250 CAD

Botta Development purchased a 34,617 square foot site in January 2022 to assemble a two-tower development
property in the heart of downtown Austin. The site provides flexibility to build both rental apartments and/or
condominium units. Currently, the organization is faced with the decision to determine the optimal investment
path based on three scenarios which are:
1. Develop one condo tower and one rental tower
2. Develop two condo towers
3. Develop two rental towers
To better understand the performance and implication of each option to the organization, we ask you to
conduct a thorough analysis of each scenario. At minimum, your analysis should provide performance metrics
of each scenario as well as scenario cashflows showing how you derived at your project returns.
To support your analysis, below please find some key assumptions:
▪ Assume that Botta bought the property on January 1
st
, 2022 marking the beginning of the project.
▪ Use a yearly cashflow format unless not appropriate
▪ Assume a maximum 10-year cashflow post completion of the development
▪ Internal Cost of Capital = 15%
▪ Assume no income from existing buildings on property
▪ Construction loan takes out 100% of the land loan
▪ Construction debt can cover a maximum of 100% of cost in that year
▪ Inflation on construction cost = 0%
▪ Inflation on revenue/net operating income = 2.5%
▪ Inflation on operating expenses = 2%
Related categories: PHP Real Estate Financial Modeling