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← All worked examplesWorked example · Mixed-use

Apartments over ground floor retail.

Two revenue lines, two settlement profiles, one project. The base case sells everything. The stretch holds the retail income.

  • Scale32 apartments
  • Program30 months
  • Profit on cost11.8%

02 / Sample assumptions

The market context behind the numbers.

Pricing benchmarks, build rates and finance terms used in this mixed-use example. Every one is editable in Popurise.

Assumption sheet07 lines
01
Apartment mix
20 × 1-bed, 12 × 2-bed
02
Apartment avg sale
$975,000
03
Retail face rent
$520 / m² gross
04
Retail incentive
15% rent-free equivalent
05
Retail cap rate
6.25%
06
Construction rate
$4,600 / m² blended
07
Senior debt
60% LVR, 8.5% all-in

03 / Key inputs

The inputs that drive the deal.

Grouped the way Popurise groups them. Change a category, watch the mixed-use output set respond.

0104 items

Site and scheme

Site area
1,800 m²
GFA total
4,800 m²
Apartment NSA
2,750 m²
Retail NLA
650 m²
0206 items

Cost stack

Land
$5.40M
Construction
$22.10M
Professional fees
$1.75M
Contributions and authority
$1.30M
Finance
$1.95M
Selling and leasing
$0.60M
0304 items

Revenue

Apartment GRV
$31.20M
Retail stabilised NOI
$525,000
Retail capitalised value
$8.40M
Total GRV
$39.60M

04 / Base case outputs

The output set, in full.

Every number a developer wants on the screen for a mixed-use deal, in one place.

Hero outputProfit on cost
11.8%
Secondary metrics08 lines

  • Total gross realisation

    $39.60M

  • Net realisation

    $36.99M

  • Total development cost

    $33.10M

  • Profit

    $3.89M

  • Development margin

    9.8%

  • Equity IRR

    16.2%

  • Peak debt

    $22.50M

  • Peak equity

    $7.20M

05 / Scenarios

Base, downside, stretch. Side by side.

Three scenarios on the same mixed-use project. No copied files. The decision is which one to take to investment committee.

Base case

base

Sell all 32 apartments. Sell retail as a single asset on stabilisation.

  • Profit on cost11.8%
  • Equity IRR16.2%
  • Profit$3.89M
  • Peak debt$22.5M
Verdict

Below the residential-only hurdle but cleaner cashflow thanks to the retail block sale.

Downside

downside

Retail leases at 12 months downtime, cap rate softens 50 bps.

  • Profit on cost6.2%
  • Equity IRR9.1%
  • Profit$2.05M
  • Peak debt$23.1M
Verdict

Retail risk swamps the apartment result. Pre-leasing becomes a deal condition.

Stretch

stretch

Hold the retail for 5 years, refinance against stabilised NOI.

  • Profit on cost11.8%
  • Equity IRR19.4%
  • Profit on sale (yr 5)$5.20M
  • Peak debt$22.5M
Verdict

Holds total profit at par but lifts IRR on the income tail. Needs a willing capital partner.

06 / Decision takeaway

Mixed-use schemes look like apartment projects with a bonus. They are not. Retail risk lives on its own clock and the deal sits on pre-leasing and cap rate. The right decision is rarely the average of the two assets.

Start modelling free Open this example in Popurise. Change any assumption. Watch the output set respond.
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