0 Circle Avenue · New Build Case

0 Circle Avenue: Landlord Model

The 0 Circle Avenue new-build case on one page: CapEx phased across construction, a lease-up ramp, WACC discounting and an optional exit value. Pick Shell-Only or a Full-Turnkey profile below; every driver is editable and every figure updates.

Deterministic · single path Landlord perspective only T0 = Jan 2027

Input parameters

Deal structure
Full-Turnkey profile (landlord funds the complete facility)

Cumulative cash flow: DCF vs. simple linear

DCF (discounted)

Single point-estimate path, $M. The DCF line discounts at WACC; the simple linear line shows the same cash flows undiscounted. With exit value switched on, both lines take the sale (trailing-12-month NOI ÷ exit cap rate) as a lump sum in the final month. Basic Analysis leaves the sale out.

Why the linear line can sit above zero while the DCF line is flat or negative: both lines use the same cash flows, so the gap is discounting alone. Most of the value arrives late, after years of lease-up, and discounting at WACC shrinks it: a dollar 10 years out at ~8.3% is worth roughly half today. A wide gap means the case depends on that late payoff arriving on schedule.

Why the DCF line can look flatter: both lines share one y-axis, and a large undiscounted exit value stretches it, compressing the DCF line into a narrow band. The inputs are the same.

Annual summary

NOI and cash flow at each anniversary of T0, $M.

YearMonthNOICash flowCumulativeCumulative disc.