Lease Up, Absorption Schedule, and Stabilization
I recently finished building a financial model for a deal in which I had to calculate the month the building achieved 95% occupancy. This was important because you can't pay off the construction loan and convert the debt to long-term financing until the property is stabilized.
It's harder to calculate than you might think when you consider multiple unit types, start dates, lease-up schedules, and unit counts.
I came up with a nice and tight solution that I can reuse in future financial models.
Enjoy.
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