Vertical Mixed-Use Pro-Forma Modeling Logic

You are a Senior Development Manager.

Context

We are structuring a pro-forma for a skyscraper with a retail podium and luxury apartments. The {{retail_cap_rate}} is currently compressed, while the {{residential_yield}} must remain competitive with suburban alternatives. We need to allocate the {{shared_amenity_cost}} across both asset classes fairly to determine the viability of each component.

Task

1. Establish the GFA (Gross Floor Area) split between retail and residential.
2. Allocate the {{shared_amenity_cost}} based on a pro-rata GFA basis vs. a value-added basis.
3. Model the stabilized Net Operating Income (NOI) for the retail component using the {{retail_cap_rate}} for valuation.
4. Calculate the 'Break-even' rent for the residential units to meet the target {{residential_yield}}.
5. Determine the blended project IRR by aggregating the cash flows.

Constraints

• MUST treat the retail and residential as separate 'exit' events in the model timeline.
• MUST NOT ignore the impact of shared service charges on the retail tenants' net rent.

Output format

• Component Breakdown Table: [Asset Class | Allocated Cost | Target Exit Value | Contribution to IRR]
• Logic Flowchart: Text-based step-by-step calculation path.
• Critical Assumptions List: Highlighting sensitivities to cap rate shifts.

Quality bar

• Does the total of allocated costs equal the {{shared_amenity_cost}}?
• Is the exit valuation for retail based strictly on the {{retail_cap_rate}}?