# Investment Committee Memo

## {Deal Name} - {Address}
## {City, State ZIP}
## {Total Units} Units | {Year Built} | {Property Class}

---

## RECOMMENDATION: {PASS / FAIL / CONDITIONAL}

**Confidence Level:** {0-100%}
**Investment Strategy:** {Core / Core-Plus / Value-Add / Opportunistic}
**Prepared:** {Date}
**Deal ID:** {deal-id}

---

## 1. Executive Summary

{3-5 paragraph executive summary covering:}
- Deal overview and thesis
- Key investment merits
- Key risks and mitigants
- Financial summary (price, returns, metrics)
- Recommendation and conditions

---

## 2. Key Investment Metrics

| Metric | In-Place | Stabilized | Target |
|--------|----------|------------|--------|
| Purchase Price | ${X} | - | - |
| Price / Unit | ${X} | - | Market: ${X} |
| Cap Rate | {X.X%} | {X.X%} | > {X%} |
| NOI | ${X} | ${X} | - |
| DSCR | {X.XX} | {X.XX} | > 1.25 |
| Cash-on-Cash | {X.X%} | {X.X%} | > 8% |
| Debt Yield | {X.X%} | {X.X%} | > 9% |
| IRR (5-Year) | - | {X.X%} | > {X%} |
| Equity Multiple | - | {X.X}x | > {X}x |
| Risk Score | {X}/100 | - | > 75 |

**Verdict:** {X of 5 primary criteria met}

---

## 3. Property Overview

### 3.1 Physical Description
- **Address:** {Full address}
- **Property Type:** Multifamily - {Garden/Mid-Rise/High-Rise/Townhome}
- **Year Built / Renovated:** {Year} / {Year or N/A}
- **Total Units:** {X}
- **Total SF:** {X} SF ({X} avg SF/unit)
- **Buildings:** {X} buildings, {X} stories
- **Parking:** {X} spaces ({type})
- **Amenities:** {List}

### 3.2 Unit Mix

| Unit Type | Count | % of Total | Avg SF | In-Place Rent | Market Rent | Loss-to-Lease |
|-----------|-------|-----------|--------|--------------|-------------|---------------|
| Studio | {X} | {X%} | {X} | ${X} | ${X} | {X%} |
| 1BR/1BA | {X} | {X%} | {X} | ${X} | ${X} | {X%} |
| 2BR/1BA | {X} | {X%} | {X} | ${X} | ${X} | {X%} |
| 2BR/2BA | {X} | {X%} | {X} | ${X} | ${X} | {X%} |
| 3BR/2BA | {X} | {X%} | {X} | ${X} | ${X} | {X%} |
| **Total/Avg** | **{X}** | **100%** | **{X}** | **${X}** | **${X}** | **{X%}** |

### 3.3 Occupancy
- **Physical Occupancy:** {X%}
- **Economic Occupancy:** {X%}
- **Avg Lease Term:** {X} months
- **Month-to-Month:** {X%}
- **Lease Expiration Concentration:** {Assessment}

---

## 4. Market Analysis

### 4.1 Submarket Overview
{Submarket description, boundaries, character}

### 4.2 Demand Drivers
- **Employment:** {Major employers, job growth}
- **Population:** {Growth trend, migration patterns}
- **Income:** {Median household income, growth}
- **Rent-to-Income:** {X%} (target: <30%)

### 4.3 Supply Pipeline
- **Planned/Under Construction:** {X} units within {X} mile radius
- **Absorption Rate:** {X} units/quarter
- **Supply Risk Assessment:** {LOW/MEDIUM/HIGH}

### 4.4 Rent Comps

| Property | Distance | Units | Year | Avg Rent | $/SF | Occupancy |
|----------|----------|-------|------|----------|------|-----------|
| {Comp 1} | {X} mi | {X} | {X} | ${X} | ${X} | {X%} |
| {Comp 2} | | | | | | |
| {Comp 3} | | | | | | |
| **Subject** | **-** | **{X}** | **{X}** | **${X}** | **${X}** | **{X%}** |

### 4.5 Sales Comps

| Property | Date | Units | Price | $/Unit | Cap Rate |
|----------|------|-------|-------|--------|----------|
| {Comp 1} | {Date} | {X} | ${X}M | ${X} | {X%} |
| {Comp 2} | | | | | |
| {Comp 3} | | | | | |

### 4.6 Market Trends
- **Rent Growth (TTM):** {X%}
- **Projected Rent Growth:** {X%}
- **Market Cycle Position:** {Expansion/Hyper-Supply/Recession/Recovery}
- **Market Risk Rating:** {LOW/MEDIUM/HIGH}

---

## 5. Financial Analysis

### 5.1 Pro Forma Summary (5-Year)

| Line Item | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|-----------|--------|--------|--------|--------|--------|
| Gross Potential Rent | ${X} | ${X} | ${X} | ${X} | ${X} |
| Loss to Lease | (${X}) | (${X}) | (${X}) | (${X}) | (${X}) |
| Vacancy & Credit Loss | (${X}) | (${X}) | (${X}) | (${X}) | (${X}) |
| Other Income | ${X} | ${X} | ${X} | ${X} | ${X} |
| **Effective Gross Income** | **${X}** | **${X}** | **${X}** | **${X}** | **${X}** |
| Total Operating Expenses | (${X}) | (${X}) | (${X}) | (${X}) | (${X}) |
| **Net Operating Income** | **${X}** | **${X}** | **${X}** | **${X}** | **${X}** |
| Debt Service | (${X}) | (${X}) | (${X}) | (${X}) | (${X}) |
| CapEx / Renovations | (${X}) | (${X}) | (${X}) | (${X}) | (${X}) |
| **Cash Flow** | **${X}** | **${X}** | **${X}** | **${X}** | **${X}** |

### 5.2 Returns Analysis

| Metric | Year 1 | Year 3 | Year 5 | Stabilized |
|--------|--------|--------|--------|------------|
| Cap Rate | {X%} | {X%} | {X%} | {X%} |
| DSCR | {X.XX} | {X.XX} | {X.XX} | {X.XX} |
| Cash-on-Cash | {X%} | {X%} | {X%} | {X%} |
| Debt Yield | {X%} | {X%} | {X%} | {X%} |

### 5.3 Exit Analysis (Year 5)
- **Exit NOI:** ${X}
- **Exit Cap Rate:** {X%}
- **Exit Value:** ${X}
- **Equity Multiple:** {X.X}x
- **IRR:** {X.X%}

---

## 6. Scenario Analysis

### 6.1 Scenario Matrix (27 Scenarios)

| Scenario | Rent Growth | Expense Growth | Exit Cap | IRR | Equity Multiple | DSCR (Yr1) |
|----------|------------|----------------|----------|-----|-----------------|-------------|
| Best Case | +5% | +2% | -25bps | {X%} | {X.X}x | {X.XX} |
| Base Case | +3% | +3% | Flat | {X%} | {X.X}x | {X.XX} |
| Worst Case | -2% | +5% | +50bps | {X%} | {X.X}x | {X.XX} |

### 6.2 Probability-Weighted Returns
- **Expected IRR:** {X%} (25% downside, 50% base, 25% upside)
- **Expected Equity Multiple:** {X.X}x

### 6.3 Stress Test Results
- **Scenarios with DSCR < 1.0:** {X of 27}
- **Scenarios with negative cash flow:** {X of 27}
- **Scenarios failing thresholds:** {X of 27}

---

## 7. Financing Summary

| Term | Value |
|------|-------|
| Lender | {Name} ({Type}) |
| Loan Amount | ${X} |
| LTV | {X%} |
| Interest Rate | {X%} ({Fixed/Floating}) |
| Term / Amortization | {X} / {X} years |
| IO Period | {X} years |
| DSCR Covenant | {X.XX}x |
| Prepayment | {Type} |
| Recourse | {Full/Partial/Non-Recourse} |
| Estimated Closing | {Date} |

---

## 8. Risk Assessment

### 8.1 Risk Score: {X}/100 - {Risk Level}

### 8.2 Key Risks

| Risk | Severity | Probability | Impact | Mitigation |
|------|----------|-------------|--------|------------|
| {Risk 1} | {HIGH/MED/LOW} | {HIGH/MED/LOW} | {Description} | {Strategy} |
| {Risk 2} | | | | |
| {Risk 3} | | | | |

### 8.3 Dealbreaker Assessment
- **Dealbreakers Found:** {Yes/No}
- **If Yes:** {Description and recommendation}

---

## 9. Due Diligence Summary

### 9.1 Physical Condition
- **Overall:** {EXCELLENT/GOOD/FAIR/POOR}
- **Deferred Maintenance:** ${X}
- **CapEx Budget (5-Year):** ${X}
- **Major Issues:** {List or "None identified"}

### 9.2 Environmental
- **Phase I Status:** {Clean/RECs identified}
- **Phase II Required:** {Yes/No}
- **Flood Zone:** {Zone designation}
- **Environmental Risk:** {LOW/MEDIUM/HIGH}

### 9.3 Title & Legal
- **Title Status:** {Clear/Exceptions noted}
- **Curative Items:** {X items} ({X resolved})
- **Zoning:** {Conforming/Non-conforming}
- **Litigation:** {None/Active - details}

### 9.4 Estoppels
- **Received:** {X of X} ({X%})
- **Discrepancies:** {X}
- **Threshold Met:** {Yes/No}

---

## 10. Investment Thesis

### 10.1 Why This Deal
{3-5 bullet points on investment merits}

### 10.2 Value Creation Plan
{How returns will be generated: market rent growth, loss-to-lease capture, expense optimization, renovations, repositioning}

### 10.3 Exit Strategy
{Planned exit: refinance, sale, hold period, target buyer profile}

---

## 11. Recommendation

### Verdict: {PASS / FAIL / CONDITIONAL}

{Detailed recommendation paragraph}

### Conditions (if CONDITIONAL)
1. {Condition 1}
2. {Condition 2}
3. {Condition 3}

### Suggested Modifications
- **Price:** {Accept asking / Counter at ${X} / Walk away}
- **Terms:** {Suggested PSA modifications}
- **Due Diligence:** {Additional items needed}

---

## 12. Data Gaps & Limitations

| # | Gap | Impact on Analysis | Confidence Reduction |
|---|-----|-------------------|---------------------|
| 1 | {What's missing} | {How it affects conclusion} | {-X%} |

**Overall Confidence:** {X%}
**Confidence would improve to {X%} with:** {What additional data would help}

---

*Investment Committee Memo generated by CRE Acquisition Orchestration System*
*Deal: {deal-id} | Date: {date}*
