Sell vs lease
Mix Analysis
Each building stays 100% sold or 100% leased (mixing within a building forces condo structure that buyers and lenders discount). The only decision: how many buildings to sell. Per-building economics are the average across enabled buildings. Then: is holding better than selling now?
Cost per building
If leased: annual NOI
If leased: stabilized value
If sold: net proceeds
How many buildings to sell?
Equity required is constant — it is set by cost and LTC, not the mix. The de-risk question is how fast sales return that equity; the profit question is what each path creates.
| Sold | Leased | Sale proceeds | Stabilized NOI | Equity required | Equity returned | Value created | Dev profit | Margin |
|---|---|---|---|---|---|---|---|---|
| 0 | 6 | $0 | $1,748,828 | $2,463,737 | 0% | $23,317,704 | $6,892,789 | 42% |
| 1(current mix) | 5 | $3,384,000 | $1,457,357 | $2,463,737 | 100% | $22,815,420 | $6,390,505 | 39% |
| 2 | 4 | $6,768,000 | $1,165,885 | $2,463,737 | 100% | $22,313,136 | $5,888,221 | 36% |
| 3 | 3 | $10,152,000 | $874,414 | $2,463,737 | 100% | $21,810,852 | $5,385,937 | 33% |
| 4 | 2 | $13,536,000 | $582,943 | $2,463,737 | 100% | $21,308,568 | $4,883,653 | 30% |
| 5 | 1 | $16,920,000 | $291,471 | $2,463,737 | 100% | $20,806,284 | $4,381,369 | 27% |
| 6 | 0 | $20,304,000 | $0 | $2,463,737 | 100% | $20,304,000 | $3,879,085 | 24% |
10-year hold — one leased building
The stabilized-value view only captures year-1 worth. Holding collects 10 years of escalating cash flow, then exits at year-10 NOI ÷ 8.0% exit cap.
Levered IRR
Equity multiple (MOIC)
Total profit
Avg DSCR over hold
| Year | NOI | Debt service | Levered cash flow | Exit / equity | Total |
|---|---|---|---|---|---|
| 0 | $0 | $0 | $0 | -$410,623 | -$410,623 |
| 1 | $291,471 | -$214,246 | $77,225 | $0 | $77,225 |
| 2 | $300,215 | -$214,246 | $85,969 | $0 | $85,969 |
| 3 | $309,222 | -$214,246 | $94,976 | $0 | $94,976 |
| 4 | $318,499 | -$214,246 | $104,252 | $0 | $104,252 |
| 5 | $328,054 | -$214,246 | $113,807 | $0 | $113,807 |
| 6 | $337,895 | -$214,246 | $123,649 | $0 | $123,649 |
| 7 | $348,032 | -$214,246 | $133,786 | $0 | $133,786 |
| 8 | $358,473 | -$214,246 | $144,227 | $0 | $144,227 |
| 9 | $369,227 | -$214,246 | $154,981 | $0 | $154,981 |
| 10 | $380,304 | -$214,246 | $166,058 | $2,482,225 | $2,648,283 |
Sell now vs hold 10 years — per building
| Metric | Sell now | Hold 10 years |
|---|---|---|
| Profit per building | $646,514 | $3,270,533 |
| When cash arrives | Year 1, all at once | Spread over the hold + exit |
| Time-weighted return | Immediate capital recycle | 33.9% IRR |
What flips the answer toward holding: higher rent, cap-rate compression, rent growth, or wanting long-term income with depreciation. What flips it toward selling: immediate liquidity and recycling equity into the next project. The sensitivity to test: flex the exit cap rate — the hold case leans on it.