Real Estate
Investment Financing

For this project, my two partners and I acted as a real estate investment team pitching a live deal to a panel of professors. We selected a multi-residential income property at 4874–4896 Rue Drolet in Montréal's Plateau-Mont-Royal neighbourhood — a $2,685,000 asking price, fully tenanted, requiring zero renovation. Our goal was to determine whether the acquisition generated adequate risk-adjusted returns for equity investors, and to structure a compelling investment case from scratch.

I led the financial modelling work. We built a full three-scenario DCF model in Excel — pessimistic, base case, and optimistic — each with distinct assumptions on revenue growth, expense escalation, mortgage terms, and exit capitalization rate. I calculated levered and unlevered IRRs and NPVs for each scenario, benchmarked them against custom hurdle rates derived from WACC and cost-of-equity calculations, and stress-tested the model against realistic market deterioration. In the base case, the investment delivers a levered IRR of 11.73% against an equity hurdle of 8.27%, generating a positive levered NPV of +$165,008.

Beyond the numbers, we conducted a rigorous market analysis of the Plateau-Mont-Royal submarket — vacancy rates, average market rents, comparable cap rate transactions, housing start trends, and macroeconomic indicators including the FOMC rate trajectory and Canadian CPI rent inflation. We profiled the neighbourhood's tenant demographic in detail: income levels, age distribution, education, and occupancy patterns — all of which fed directly into our revenue growth assumptions and vacancy allowances.

We structured the deal as a limited partnership with a 65% senior mortgage, 17.5% GP equity (our team), and 17.5% LP equity from outside investors — a total capitalization of $2,738,700. We defined investor terms, modelled the Year 5 balloon payment, and presented the full risk identification and mitigation framework. The final deliverable was a 21-slide investor pitch deck and a 10-section written report, both of which are available to download below.