Case Study
$3B NYC Multifamily Platform
IC was approving renovation dollars without seeing the actual unit-level economics. We built the models that changed that.
$3B
AUM
Unit-Level
MCI/IAI Modeling
Days → Hrs
IC Packages
Eliminated
Reconciliation
Sector
NYC Rent-Regulated Multifamily
Scale
$3B AUM
Scope
Underwriting, Fund Model, Reporting
Timeline
12 months
Stack
NYC rent-regulated multifamily has economics that standard models skip entirely. MCI recovery is unit-specific. IAI payback depends on legal rent gaps, turnover probability, and regulatory caps.
This platform needed models that captured all of it at the unit level, a fund model that stayed current, and reporting that didn't take days to assemble.
The Challenge
The models behind a $3B portfolio couldn't capture the regulatory economics that actually drive returns.
MCI recovery is unit-specific: DHCR approval runs 12-24 months, amortization varies by building age, and rent adjustments interact with preferential rent. None of this was modeled.
IAI economics depend on the gap between legal and preferential rent, turnover probability, and regulatory caps. Two analysts on the same building produced materially different projections.
The fund model was a standalone workbook. Every reporting cycle started with manual reconciliation across dozens of properties.
IC needed deal, portfolio, and fund-level impact in one package. That package took days to build.
Before
Models that missed regulatory economics
- MCI modeled in aggregate with no unit-level DHCR timelines
- IAI payback estimated differently by every analyst
- Fund model in a separate workbook, monthly reconciliation required
- IC packages took days to compile from disconnected sources
After
Unit-level precision across the portfolio
- MCI per unit: DHCR timelines, amortization, preferential rent interaction
- IAI standardized: legal vs. preferential gap, turnover, regulatory caps
- Fund model syncs with property data automatically
- IC packages generate from a single source in hours
What We Built
Purpose-built models for NYC regulatory complexity, from unit level to investor reporting.
Unit-Level Acquisition Model
- Excel model built for rent-regulated multifamily with MCI and IAI at the individual unit level.
- MCI module: recovery per unit with DHCR timelines, amortization, and preferential rent interaction.
- IAI module: improvement payback per unit based on legal rent gap, turnover, and regulatory caps.
- Scenario analysis across renovation timing, approval delays, turnover, and regulatory changes.
Fund Model
- Property-level performance flows into the consolidated fund model. No reconciliation step.
- Waterfall calculations for GP/LP economics, promote structures, and investor returns across vehicles.
- Portfolio analytics: renovation ROI, MCI recovery progress, occupancy by rent type, capital deployment.
Investor Dashboards & Reporting
- Power BI dashboards from fund level to individual unit: NOI, MCI status, renovation pipeline, occupancy.
- Investor packages generated on schedule with consistent data and format.
The Outcome
One model framework. Every analyst, same assumptions. IC sees the real economics.
Rent-regulated deals now underwrite with models that reflect actual unit-level economics. IC evaluates renovation spend against real recovery timelines. The fund model stays current without manual reconciliation. Every analyst works from the same framework.
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