Commercial Real Estate Properties, Financial Model, Real Estate, Retail

Cap Rate (Capitalization Rate), Debt Service Coverage, Excel, IRR (Internal Rate of Return), Loans, Real Estate Valuation, Weighted Average Unexpired Lease Term (WAULT)

Built for buyers, brokers and lenders working on QSR, pharmacy, dollar-store, auto-service, medical and small-box industrial net-lease deals.

Inputs

Building SF, year-1 rent, going-in cap rate (or price override), closing costs
Escalations: annual % or step bumps every N years
Remaining primary term, landlord expense leakage (0% for absolute NNN), capital reserve $/SF
Debt: max LTV, min DSCR, min debt yield, rate, amortisation, interest-only years, origination fee
Exit: hold period (1-10 years), exit cap on forward NOI, selling costs

Lease-expiry scenario (the key STNL credit risk)

Renew: tenant exercises its option at the stated bump, escalations continue
Re-tenant: downtime months with no rent, landlord carries tax/insurance/CAM while dark, new market rent with growth, TI $/SF and leasing commissions on the new term
A flag on the Returns tab shows when the lease expires inside the hold

Outputs

Loan amount with the binding constraint named (LTV / DSCR / Debt yield), implied LTV, year-1 DSCR and debt yield, equity required
10-year annual cash flow: rent, leakage, dark carry, reserves, NOI, TI/LC, debt service, levered cash flow, DSCR, debt yield, loan balance
Unlevered and levered IRR, equity multiples, average cash-on-cash, levered profit, minimum DSCR over hold
Sensitivity: levered profit and equity multiple across five exit cap rates and five purchase prices, with loan and equity re-sized per price
Checks block (sources = uses, loan within limits, valid hold) that must read OK

File: NNN_STNL_Acquisition_Loan_Sizing_Model.xlsx (Excel 2016+, no macros). Recalculated with zero formula errors in both scenarios before release. Built with AI assistance and reviewed by Eastwich Advisors. Illustrative inputs; not investment advice.

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