Mixed-Use Condo Development - New York
Comprehensive financial modeling and underwriting for a ground-up mixed-use condominium project in New York. Included condo absorption analysis, sensitivity testing, and detailed cash flow modeling.
Client
General Partner
Time Spanned
2 Weeks
About Project
Project Overview
Mayer Property Group provided full financial modeling and underwriting support for a proposed mixed-use development in New York. The project consisted of residential condominium units and ground-floor retail spaces across a mid-rise building footprint. The client engaged us to evaluate feasibility, assess structure, and prepare for early-stage financing discussions.
Project Objectives
Build a full project model from acquisition through exit
Support pricing, absorption, and lease-up planning for both retail and residential uses
Align capital structure and assumptions for presentation to capital partners and lenders
Modeling Approach
We developed a complete underwriting model covering land acquisition, construction phasing, debt assumptions, sellout timing, and stabilization. Key variables were tested across multiple scenarios, including absorption speed, market pricing volatility, and interest rate movement. Retail lease-up was modeled alongside a phased condo sellout, with clearly defined timelines and occupancy targets.
Key Focus Areas
Mixed-Use Strategy
Residential and retail program components were modeled with separate assumptions, timelines, and revenue structures — allowing for detailed evaluation of lease-up risk and sale timing.
Capital Planning
A structured capital stack was incorporated into the model, including assumptions for construction financing, closing costs, and development contingency.
Sensitivity Testing
Scenario modeling was performed to evaluate changes in construction costs, sales velocity, and interest rates — helping the client understand downside risk and margin thresholds.
Outcome
The model served as a decision-support tool for the sponsor team, enabling clear communication with equity partners and lenders during early-stage negotiations. It also allowed the client to refine their pricing strategy, align financing terms with expected cash flow timing, and better anticipate risk exposure throughout the project life cycle.
Impact
This engagement demonstrated the value of tailored underwriting for mixed-use development — especially when balancing for-sale and for-lease components. Mayer Property Group’s work supported more informed planning and positioned the sponsor team for capital engagement with confidence and clarity.
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