German Multi-Family Development Feasibility
12-unit scheme • 9 rented • 2 landowner allocations • 1 sale exit • €5.3M loan stress-tested from 2.05% to 5.05% interest rates
Loan Amount
12-unit capital stack
Net Operating Income
Annual NOI before debt service
Base Case DSCR
Below 1.00x break-even
Annual Deficit Range
Negative in every scenario
Deal Structure
The project relies on , with recurring rent supported by of unit count. That leaves only one sale unit to absorb valuation risk while two units are transferred to the landowner rather than generating lease income.
Across the financing stress test, annual NOI of is compared with debt service running from . The modeled gap is already negative at the lowest rate and widens sharply as rates rise.
Modeled coverage never reaches a 1.00x DSCR threshold, meaning operating income does not fully service debt under any provided interest-rate scenario.
What the Dashboard Shows
- DSCR moves from , staying below 1.00x throughout.
- Annual cash flow remains between .
- Germany’s latest long-term rate is as of , inside the financing stress band.
- Residential prices are versus the peak.
Debt Service Outruns NOI in Every Rate Case
Annual debt service rises with the annuity rate while NOI remains fixed, creating a persistent coverage gap.
DSCR and Cash Flow Deteriorate as Rates Rise
The line marks DSCR against the right axis, while bars show annual cash flow against the left axis.
Operating Structure from Gross Income to NOI
Waterfall view of rental income, ancillary income, operating drag, and resulting net operating income.
German Long-Term Rate Context
Historical rate path since 2005, with the project’s financing stress band overlaid as a horizontal range.
German Residential Price Context
National residential price index shows the market run-up into 2021 and the subsequent reset relevant to the single-sale exit.
Financing Stress Scenario Table
| Interest Rate | Annuity Rate | Annual Debt Service | NOI | DSCR | Cash Flow |
|---|