Your company is currently looking at a multi-family deal in Suburban New York. Meadow Apartments is a 175 Unit Complex that is listed for $30 Million. Your company anticipates this will be a long-term deal and you will hold the property 10 years following the assumed 12/31/2019 purchase. You anticipate that closing costs will equal 1.00% of the purchase price. As the lead analyst on the deal, you must underwrite the deal based on several market and historical assumptions.

Currently, Meadow Apartments has 100 one bedroom units and 75 two bedroom units; leasing at $1,250 and $2,000 per month respectively. Since the complex is located near a major train station with plenty entertainment amenities, you believe vacancy will be low, so you assume 5.00% vacancy (of rental income no additional income) for the entire term of the investment. Furthermore, rental growth should be assumed to be a healthy 3.00% per annum. Furthermore, the complex has several amenities which tenants pay $1,000 per unit each year. You anticipate that this additional income will grow 5.00% each year.

During you due diligence period, you found that your first year expenses will trend as follows.

	Payroll		$150,000
	Utilities		$450,000
	Repairs & Maintenance		$100,000
	Administrative/G&A		$100,000
	Insurance		$200,000
	Real Estate Taxes		$500,000

These expenses are assumed to grow at 3.00% per year. In addition to the above expenses, it is assumed that you will hire an outside management company that will charge you 3.00% of Effective Gross Income per year to run the property.

As an established owner/operator you are easily able to get a loan at attractive rates. A large institutional lender has agreed to lend you 75.00% of the purchase price at a 4.65% interest rate. The Loan Term is 10 Years but has a 30-year amortization schedule.

During the final year of the hold, you assume that the property will be traded at a 5.25% exit cap rate based off of the terminal year NOI. The cost of sale will be 2.00% (of Sale Value).

Given the above assumptions, create a dynamic model which will be able to calculate the following return metrics (for both unlevered and levered scenarios) IRR, Equity Multiple, and Net Profit. Also, make sure to include a sources and uses table.