Multifamily Acquisition – California

Project Overview

Mayer Property Group is providing ongoing financial modeling and underwriting support for the acquisition of a multifamily property in California. The client — a real estate investment firm — engaged us to evaluate deal feasibility, test capital structures, and refine underwriting as they navigate acquisition negotiations and early-stage diligence.

Project Objectives

• Build a flexible 10-year acquisition model aligned with the firm’s investment thesis

• Analyze in-place operations and forecast post-acquisition cash flows

• Evaluate financing scenarios and support preliminary return analysis for LPs

Modeling Approach

We developed a full-scale acquisition model including operating cash flow projections, loan sizing, and equity return profiles. The model incorporates unit-level rent roll analysis, historical operating data, and forward-looking assumptions for rent growth, expense inflation, and exit valuation. Multiple capital structures — including interest-only and amortizing debt — were modeled to reflect financing options under consideration.

Key Focus Areas

Acquisition Underwriting
The model captures in-place and pro forma cash flows, blending real operating data with market assumptions to inform acquisition pricing and capital structure decisions.

Capital Structure Evaluation
Scenarios include different leverage levels, pref equity options, and refinancing pathways. All designed to align with investor return targets and risk tolerance.

Investor Return Modeling
Equity cash flows, IRRs, and equity multiples are broken out by partner class, providing the client with clear visibility for LP presentations and internal reviews.

Outcome

The model is serving as a live underwriting tool, updated continuously as new deal inputs are received. It has helped the investment team refine offer terms, assess sensitivity to financing variables, and prepare for internal and external investment committee discussions.

Impact

This engagement highlights Mayer Property Group’s ability to provide responsive, deal-specific underwriting support during critical acquisition windows. Our modeling framework ensures the client can adapt quickly to shifting deal terms while maintaining clarity around return drivers and risk exposure.