Underwriting and IC
Acquisitions principal
Should we pursue this deal, under what conditions, and at what maximum price?
Underwriting and IC
Northgate Apartments · IC decision brief
Archived acquisition case · decision owner: Elena Vasquez · evidence as of Sep 12, 2024 10:32 PT · model v3.2
Human-owned recommendation
Pursue with Conditions
Drafted by Elena Vasquez · 4 open conditions · IC review Sep 13, 2024 at 09:00 PT
Maximum property price
$56.42M
Excludes fees and reserves
Current asking price
$56.42M
At the approved ceiling
Remaining price headroom
$0.00M
All-in capitalization $58.20M
Required-return cases
1 of 3 below hurdle
Downside case sets the renegotiation trigger
Evidence and assumptions
6 source files · 34 extracted facts · 1 pending verification
Deal intake and source documents
No live data room is implied. These are deterministic synthetic records for the sample transaction.
| Item | Value | Provenance | Source / basis | Owner · reviewed |
|---|---|---|---|---|
| In-place NOI | $2.91M | Fact | T-12 · pages 1–4 | M. Chen · 10:14 |
| Stabilized NOI | $3.64M | Calculation | Model v3.2 · operating case | System · 10:25 |
| Exit cap rate | 5.25% | Assumption | Comp set · 6 verified sales | E. Vasquez · 10:28 |
| Renovation scope | $18.5k / unit | Pending Verification | OM estimate · PCA pending |
Decision boundary by case
Approved model outputs are consumed here; model construction lives in Financial Modeling
| Case | Maximum property price | Return hurdle | Open conditions | Decision consequence |
|---|---|---|---|---|
| Downside | $49.30M | Below required return | 5 open | Renegotiate to downside ceiling or pass |
| Base | $56.42M | Clears required return | 4 open | Pursue only at the approved ceiling |
| Upside | $59.10M | Clears required return | 3 open | No price increase without new evidence |
The IC brief records whether each approved case clears the fund hurdle and what that means for price. Cash flows, debt schedules, returns, and sensitivities are edited only in Financial Modeling.
Open dedicated financial model →Risk register and conditions to proceed
4 conditions open · grouped by institutional risk domain
Renovated rent premium is 11.8% above in-place rents.
Downside case reduces premium to 6.0%.
77 of 184 units have not received interior inspections.
Condition precedent: inspect a 30-unit stratified sample.
Roof-access easement requires lender acknowledgement.
Counsel sign-off required before contingency expiry.
Bad debt is 4.5% versus 2.0% underwritten.
Base case keeps year-one loss-to-lease reserve.
Renovation scope basis is pending verification.
No price increase until PCA and PM budget reconcile.