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02

Underwriting and IC

Acquisitions principal

Should we pursue this deal, under what conditions, and at what maximum price?

Underwriting and IC · Governed Output

Investment committee memo

Northgate Apartments · decision owner: Elena Vasquez · memo v3.2 · evidence cut Sep 12, 2024 10:32 PT

NA Capital Group · Investment Committee

Northgate Apartments

Acquisition recommendation · archived sample decision

Recommendation

Pursue with Conditions

Human-owned · Elena Vasquez

Maximum property price

$56.42M

Fees and reserves excluded

Open conditions

4

Retained through contingency

Decision status

Draft

Awaiting committee review

01

Recommendation basis

Northgate fits the approved value-add multifamily strategy and the base case clears the fund hurdle at the current property price. The opportunity should proceed only at or below $56.42M, with no price increase justified by unverified renovation upside.

02

Material risks

  • Physical: 77 units remain outside the interior-inspection sample.
  • Legal: the roof-access easement requires lender acknowledgement.
  • Operational: bad debt remains above the underwritten run rate.
  • Execution: renovation scope must reconcile to the PCA and property-manager budget.
03

Conditions to proceed

  1. Complete a stratified 30-unit physical inspection before contingency release.
  2. Obtain counsel and lender acknowledgement of the roof-access easement.
  3. Retain the year-one bad-debt reserve in the approved base case.
  4. Reconcile renovation cost and scope to the PCA and property-manager budget.

Prepared by

Mei Chen · Acquisitions

Evidence compilation and calculation trace

Decision owner

Elena Vasquez · Acquisitions Principal

Draft recommendation · approval pending