Case Study Help - No Access To Resources

For context I have recently been let go and I don't have access to Costar, RCA, Green Street etc. I am currently doing a take-home case study and giving it my all for this exam.

The case study does not give enough information which is confusing me. It's a multifamily value-add acquisition in a primary sun belt market and all that is asked for is to build a model and do a waterfall and I have only received a redacted rent roll and not much else. This is confusing for me because I don't know what entry cap rate to use, what debt terms are reasonable, what YoC to be building to, what are some reasonable 5 year growth rates. These are all obviously really important to the model and returns. They didn't give any pictures of the asset so I have no idea how to run comps and set a post-renovation rent. The Capex they've provided PU is also ridiculously low for value-add project, I don't think you could even renovate a bathroom. 

My questions are therefore: 

1) What kind of entry cap should I use 
2) What kind of UYOC / TYOC should I be building to
3) What is an appropriate exit cap rate 
4) What are appropriate debt terms if I can make them up? I don't have a lot of experience in sourcing debt quotes, but know that if I used SOFR + Spread the deal wouldn't pencil. This is important because if i'm going to build a waterfall I want all the hurdles to be hit (there are multiple tiers) 

5) What % of total basis should Hard costs / Soft costs usually be? 
6) How much of an increase should be post-renovated rents be?

7) What other key return metrics should I be showing in my presentation? 

I guess why this is confusing to me is because the reality of the market is that debt is not accretive to returns at the moment obviously, and there's been very little guidance. I'm supposed to write an investment thesis, but with no access to resources or actual market data i'm worried i'll get picked on for wrong information. 


Any guidance would be greatly helpful 



 

Your best bet would be to summarize your request for information (comps/market data) and then talk to the people you are doing the test to get the information.

 

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