UP 503: Site and Physical Planning
6b. Pro Forma Feasibility Analysis
Objectives: Using the Real Estate Pro Forma 1) develop a preliminary mix of land uses on your site and analyze the financial feasilibility of your proposal, and 2) explore the financial tradeoffs between different development decisions.
This assignment leads into the site engineering and layout sections of the course by giving you a tool to analyze the financial feasibility of your proposed development. In the last assignment you selected a site and analyized its socio-economic context as a way to identify development needs, opportunities and constraints. The results of this analysis should be used to select your choice of land uses and development types for the area you select. Although the proposal should be largely residential in character, I suggest you consider a mix of uses (commercial, industrial, residential... ) that comprehensively addresses the needs of the projected growth in the County tailored to meet the context of your specific site. Your analysis should include the following:
- Develop a Real Estate Pro Forma for your proposed mix of land uses on the selected site.
- Develop at least two alternative scenarios and comment on the configuration and assumptions of each along with the expected Internal Rate of Return (IRR). These scenarios should vary both the mix of land uses and assumptions regarding sales and leasing rates (e.g. what happens if the project does not sell or lease-up units as fast as expected?).
Report your results in a brief 'memo' format. Your memo should synthesize your results and provide a summary of the important numbers from your Pro Forma scenario and alternatives. Do not simply insert the Pro Forma tables into your memo. Comment on financial tradeoffs between different development types and sensitivity of your proposal to changing market conditions in the future. We will discuss your work in the next lab session. This document named by 6b_[Last Name].pdf is to be uploaded to the Assignment Dropbox folder before start of class on Thurs, Oct 31.
Return to Course Web Page --->