About the Apartment Development Model
The A.CRE Apartment Development Model is an institutional-quality ground-up multifamily development model. It includes an extensive development module, expandable unit mix capability, a retail module, simple or detailed OpEx underwriting, single or double promote, and basic sensitivity analysis.
Version 2.0 added a permanent debt module for hold-period analysis. Last updated September 2025. Author: Spencer Burton.
New to the Apartment Development Model? Watch this first.
A quick video tour of the model from Spencer himself. Then follow the three steps below to get productive fast.
Then follow these three steps
Read the Guide to Using A.CRE Financial Models
How every model is structured (blue = input, black = output) and how to navigate them.
Read the Guide →Read Best Practices in Real Estate Financial Modeling
The conventions institutional firms actually use. This will make every A.CRE model feel familiar.
Read the Article →Pick a tutorial below based on what you’re modeling
Start with the overview, then go deeper into development-specific topics like construction draws and unit mix.
Pick a topic below →Using the Model to Assess a Ground-Up Development
Spencer walks through a hypothetical merchant-build apartment development from start to finish. See how to enter assumptions, interpret the outputs, and evaluate whether the deal pencils.
Watch the Walkthrough ↓Accessing the Detailed Operating Expenses Module
Break down operating expenses by sub-item, list personnel on payroll, underwrite turnover using renewal probability, and set mill rate and assessed value for property tax. This is where institutional-quality underwriting separates from a quick BOE.
Watch the Video ↓Modeling Complex Partnership Structures Including Double Promotes
A hypothetical GP/LP structure with a double promote modeled step by step. Developer and friends/family at the GP level with a 12% pref and 50/50 excess split, then a GP/LP waterfall with 8% pref and three promote tiers.
Watch the Video ↓Watch Me Model a Build-to-Core Apartment Development
Not every development is a merchant build. This tutorial covers the build-to-core strategy: develop, lease up, hold long-term with permanent financing. Uses the Permanent Debt Module added in v2.0.
Watch the Video ↓All Tutorials by Topic
Thirteen step-by-step video tutorials organized by topic. Open a section and work through what matters for your deal.
Getting Started
Tutorial #1 — Guide to Getting Started with the Apartment Development Model
Spencer walks through the entire model top-to-bottom in this introductory overview — development budget, unit mix, construction financing, permanent debt module, and the GP/LP equity waterfall. Watch this before diving into any topic-specific tutorial below.
Using the Model to Assess a Ground-Up Development
Spencer uses the model to assess a hypothetical ground-up development opportunity from end to end — inputting site costs, development budget, construction draw schedule, unit mix, debt assumptions, and reading the IRR and equity multiple output. A set of sample assumptions is available to download and follow along.
Underwriting a Deal
Tutorial #2 — Modeling a Ground-Up Apartment Development (Merchant-Build)
Spencer uses the model to assess a hypothetical ground-up development opportunity from end to end — inputting site costs, development budget, construction draw schedule, unit mix, debt assumptions, and reading the IRR and equity multiple output. A set of sample assumptions is available to download and follow along.
Watch Me Analyze a Build-to-Core Apartment Development Scenario
Spencer works through a build-to-core scenario — using the Permanent Debt Module to size long-term stabilized financing, projecting a 10-year hold, and comparing the long-term hold IRR against a near-term merchant-build exit. Sample assumptions available to download.
How to Model a Carried Land Play Using the Apartment Development Model
Spencer walks through two separate carried land play scenarios and shows how to model each in the Apartment Development Model. A carried land arrangement lets a landowner take a participation interest rather than a cash sale — this tutorial covers both the mechanics and the model inputs (recorded using v2.86).
Model Modules
Tutorial #3 — Using the Retail Module
Have a ground-floor retail component in your apartment development? This tutorial covers how to toggle on the Retail Income tab and enter a retail rent roll, expense recovery assumptions, operating expense basis, and leasing cost assumptions. The retail outputs flow automatically back to the Underwriting tab.
Tutorial #4 — Using the Detailed Operating Expenses Module
Toggle on Detailed OpEx mode to activate the Detail Expenses tab — where you can break down each operating expense by sub-item, list personnel on payroll, underwrite make-ready costs using a renewal probability, and set mill rate and assessed value in the property tax calculation. Detail flows back to the Underwriting tab automatically.
Using the Permanent Debt Module
Version 2.0 of the model added a Permanent Debt Module that enables build-to-core analysis — where you model a build-lease-hold strategy rather than a pure merchant-build. This tutorial covers how to activate the module and set up stabilized permanent financing assumptions.
Using the Recalculate Feature — Plus Troubleshooting Tips
Version 2.7 overhauled the recalculate logic and added a troubleshooting feature that identifies circular references preventing the button from working. This tutorial walks through how to use the feature and what to do when it fails.
Debt & Construction Financing
Quick Tutorial — Toggling Between Fixed and Variable Interest Rates
A 50-second tutorial on how to toggle between fixed and variable rate construction loans in the model. The toggle lives on the Underwriting tab and switches the interest accrual logic for the entire draw period.
Solving for an Exact Construction Loan Amount
When your lender quotes a maximum LTC or LTV, you need to back-solve the exact loan amount that satisfies that constraint. This tutorial walks through how to set up and use Excel’s Goal Seek (or a manual solver) within the model to find the precise construction loan amount.
Adding a Mezzanine Loan to the Construction Debt
Version 2.4 added a Mezzanine Loan Module for modeling mezz debt in apartment development scenarios. The mezz facility is interest-only with unpaid interest accruing to a reserve, paid off simultaneously with the construction loan at sale or refinance. This tutorial covers how to activate and set up the module.
Choosing the Funding Order of the Construction Debt
Version 2.5 expanded the Mezzanine Debt feature to let you choose whether senior or mezz debt funds first. This tutorial shows how to use that toggle and explains how the funding order affects interest accrual and total cost of capital during construction.
Partnership & Waterfall
Tutorial #5 — Modeling Complex Partnership Structures Including Double Promotes
Spencer models a layered GP/LP structure with a double promote: the GP consists of a developer (10% GP equity) and friends-and-family (90% GP equity) with a 12% preferred return split 10/90, then all excess above a 12% IRR split 50/50. On top of that sits an LP with its own 8% preferred return, 20/80 split to 12% IRR, 30/70 to 15%, and 40/60 thereafter. A rare look at the full mechanics of a double promote inside the model.
Additional Resources
Best Practices in Real Estate Financial Modeling
The conventions institutional modeling teams actually use — blue input cells, black output cells, no hard-coding, and consistent structural patterns. Understanding these principles makes every A.CRE model feel immediately familiar from day one.
View Resource → TutorialCalculate Residual Land Value In Excel
Residual land value tells you the maximum you can pay for a site and still hit your target return. This tutorial builds the calculation step-by-step in Excel and shows how to use it to sanity-check your land basis before signing a PSA.
View Resource → TutorialWatch Me Build A Construction Draw Schedule
Spencer builds a monthly construction draw schedule in Excel from scratch — showing how to distribute costs using an S-curve, calculate interest reserves, and link the draw schedule into a development pro forma.
View Resource → Case StudyCase Study #6 — Hamilton Park Phase VIII: Residual Land Analysis
A development underwriting case focused on residual land value analysis — the same technique used when sizing your land basis in the Apartment Development Model. Practice case with full solution included.
View Resource → Case StudyCase Study #1 — Presidio
A.CRE’s flagship practice case study — a comprehensive real estate financial modeling exercise that builds foundational skills directly applicable to development underwriting. Full case and solution available.
View Resource →Frequently Asked Questions
What is the Apartment Development Model designed for?
The A.CRE Apartment Development Model is built for ground-up apartment development analysis. It includes an extensive development module, expandable unit mix, retail module, simple or detailed OpEx, sensitivity analysis, and permanent debt module.
Can the Apartment Development Model handle mixed-use projects?
Yes. The model includes a retail module so you can layer retail income alongside the apartment units, which works well for mixed-use buildings with ground-floor retail.
Is the Apartment Development Model free?
Yes. It is free. Download it from the Adventures in CRE website through a free checkout.
How is this different from the All-in-One Model?
The Apartment Development Model goes deeper on apartment development with features like an expandable unit mix and detailed OpEx options. The All-in-One Model is broader, covering multiple property types and both development and acquisition.
✓ 30+ tutorial articles & videos
✓ 15 practice case studies
✓ AI model assistant
× Structured curriculum
× Live mentorship
× Graded assignments
× Certificate of completion
× Private community
✓ 17 case-based courses
✓ Live mentorship sessions
✓ Graded modeling assignments
✓ Specialty endorsements
✓ Certificate of completion
✓ 2,700+ member community
✓ Job placement support
Explore More Models