# Final Acquisition Report - Parkview Apartments

## Executive Summary
- Deal ID: parkview-2026-001
- Workflow: Full Acquisition Review
- Scenario: core-plus
- Status: COMPLETE
- Property: 4200 Parkview Drive, Austin TX
- Units: 200
- Purchase Price: $32,000,000
- Current NOI: $1,688,500 (5.28% cap).
- Stabilized NOI: $2,400,000 (7.50% cap on purchase price).
- Scenario pass count: 1/27.
- Recommendation: PROCEED WITH MITIGATIONS. Parkview is not an unconditional proceed at the stated leverage because tax-adjusted NOI and debt sizing are tight.

## Market Overview
- Market: Austin-Round Rock-San Marcos MSA, South Austin submarket.
- County: Travis County.
- Tax posture: annual reassessment/protest cadence modeled at 1.90% of purchase price for this sample underwriting.
- State income tax: Texas has no state individual income tax; do not confuse that with low property taxes.
- Business plan: value-add interior renovation plus exterior/community upgrades.
- Source caution: fixture is deterministic and public-demo oriented; production use requires primary-source market and legal verification.

## Deal Snapshot
| Metric | Value |
| --- | --- |
| Deal | Parkview Apartments |
| Location | Austin, TX / Travis County |
| Units | 200 |
| Purchase Price | $32,000,000 |
| Current NOI | $1,688,500 |
| Stabilized NOI | $2,400,000 |
| Going-In Cap Rate | 5.28% |
| Loan Amount | $24,000,000 |
| Rate / LTV | 6.50% / 75.0% |
| Equity Required | $10,960,000 |

## 10-Year Pro Forma
Debt service uses the stated 2-year interest-only period, then 30-year amortization.
| Year | Revenue | Expenses | NOI | Debt Service | DSCR | Cash Flow |
| --- | --- | --- | --- | --- | --- | --- |
| 1 | $3,414,000 | $1,725,500 | $1,688,500 | $1,560,000 | 1.08x | $128,500 |
| 2 | $3,516,420 | $1,766,912 | $2,079,825 | $1,560,000 | 1.33x | $519,825 |
| 3 | $3,621,913 | $1,809,318 | $2,400,000 | $1,820,356 | 1.32x | $579,644 |
| 4 | $3,730,570 | $1,852,742 | $2,460,000 | $1,820,356 | 1.35x | $639,644 |
| 5 | $3,842,487 | $1,897,207 | $2,521,500 | $1,820,356 | 1.39x | $701,144 |
| 6 | $3,957,762 | $1,942,740 | $2,584,537 | $1,820,356 | 1.42x | $764,182 |
| 7 | $4,076,495 | $1,989,366 | $2,649,151 | $1,820,356 | 1.46x | $828,795 |
| 8 | $4,198,789 | $2,037,111 | $2,715,380 | $1,820,356 | 1.49x | $895,024 |
| 9 | $4,324,753 | $2,086,002 | $2,783,264 | $1,820,356 | 1.53x | $962,908 |
| 10 | $4,454,496 | $2,136,066 | $2,852,846 | $1,820,356 | 1.57x | $1,032,490 |

## 27-Scenario Sensitivity Matrix
Matrix dimensions: 3 rent cases x 3 vacancy cases x 3 exit-cap cases. Rent, vacancy, and exit-cap shocks are symmetric around base.
| Scenario | Rent | Vacancy | Exit Cap | IRR | Equity Multiple | DSCR | Verdict |
| --- | --- | --- | --- | --- | --- | --- | --- |
| RENT_DOWN_VACANCY_HIGH_EXIT_TIGHT | Downside | High | 6.25% | 10.7% | 1.63x | 1.04x | FAIL |
| RENT_DOWN_VACANCY_HIGH_EXIT_BASE | Downside | High | 6.75% | 6.8% | 1.37x | 1.04x | FAIL |
| RENT_DOWN_VACANCY_HIGH_EXIT_WIDE | Downside | High | 7.25% | 2.8% | 1.14x | 1.04x | FAIL |
| RENT_DOWN_VACANCY_BASE_EXIT_TIGHT | Downside | Base | 6.25% | 12.1% | 1.73x | 1.06x | FAIL |
| RENT_DOWN_VACANCY_BASE_EXIT_BASE | Downside | Base | 6.75% | 8.2% | 1.46x | 1.06x | FAIL |
| RENT_DOWN_VACANCY_BASE_EXIT_WIDE | Downside | Base | 7.25% | 4.4% | 1.23x | 1.06x | FAIL |
| RENT_DOWN_VACANCY_LOW_EXIT_TIGHT | Downside | Low | 6.25% | 13.4% | 1.82x | 1.08x | FAIL |
| RENT_DOWN_VACANCY_LOW_EXIT_BASE | Downside | Low | 6.75% | 9.6% | 1.55x | 1.08x | FAIL |
| RENT_DOWN_VACANCY_LOW_EXIT_WIDE | Downside | Low | 7.25% | 5.9% | 1.31x | 1.08x | FAIL |
| RENT_BASE_VACANCY_HIGH_EXIT_TIGHT | Base | High | 6.25% | 12.1% | 1.73x | 1.06x | FAIL |
| RENT_BASE_VACANCY_HIGH_EXIT_BASE | Base | High | 6.75% | 8.2% | 1.46x | 1.06x | FAIL |
| RENT_BASE_VACANCY_HIGH_EXIT_WIDE | Base | High | 7.25% | 4.4% | 1.23x | 1.06x | FAIL |
| RENT_BASE_VACANCY_BASE_EXIT_TIGHT | Base | Base | 6.25% | 13.4% | 1.82x | 1.08x | FAIL |
| RENT_BASE_VACANCY_BASE_EXIT_BASE | Base | Base | 6.75% | 9.6% | 1.55x | 1.08x | FAIL |
| RENT_BASE_VACANCY_BASE_EXIT_WIDE | Base | Base | 7.25% | 5.9% | 1.31x | 1.08x | FAIL |
| RENT_BASE_VACANCY_LOW_EXIT_TIGHT | Base | Low | 6.25% | 14.6% | 1.92x | 1.10x | FAIL |
| RENT_BASE_VACANCY_LOW_EXIT_BASE | Base | Low | 6.75% | 11.0% | 1.64x | 1.10x | FAIL |
| RENT_BASE_VACANCY_LOW_EXIT_WIDE | Base | Low | 7.25% | 7.3% | 1.40x | 1.10x | FAIL |
| RENT_UP_VACANCY_HIGH_EXIT_TIGHT | Upside | High | 6.25% | 13.4% | 1.82x | 1.08x | FAIL |
| RENT_UP_VACANCY_HIGH_EXIT_BASE | Upside | High | 6.75% | 9.6% | 1.55x | 1.08x | FAIL |
| RENT_UP_VACANCY_HIGH_EXIT_WIDE | Upside | High | 7.25% | 5.9% | 1.31x | 1.08x | FAIL |
| RENT_UP_VACANCY_BASE_EXIT_TIGHT | Upside | Base | 6.25% | 14.6% | 1.92x | 1.10x | FAIL |
| RENT_UP_VACANCY_BASE_EXIT_BASE | Upside | Base | 6.75% | 11.0% | 1.64x | 1.10x | FAIL |
| RENT_UP_VACANCY_BASE_EXIT_WIDE | Upside | Base | 7.25% | 7.3% | 1.40x | 1.10x | FAIL |
| RENT_UP_VACANCY_LOW_EXIT_TIGHT | Upside | Low | 6.25% | 15.8% | 2.01x | 1.13x | PASS |
| RENT_UP_VACANCY_LOW_EXIT_BASE | Upside | Low | 6.75% | 12.3% | 1.72x | 1.13x | FAIL |
| RENT_UP_VACANCY_LOW_EXIT_WIDE | Upside | Low | 7.25% | 8.7% | 1.48x | 1.13x | FAIL |

## Rent Roll Analysis
| Type | Units | Avg SF | In-Place Rent | Market Rent | Monthly Loss-to-Lease |
| --- | --- | --- | --- | --- | --- |
| 1BR/1BA | 80 | 725 | $1,225 | $1,350 | $10,000 |
| 2BR/1BA | 40 | 900 | $1,450 | $1,600 | $6,000 |
| 2BR/2BA | 60 | 1050 | $1,650 | $1,800 | $9,000 |
| 3BR/2BA | 20 | 1200 | $1,900 | $2,100 | $4,000 |
- Total configured loss-to-lease: $84,000.
- Current occupancy: 93.0%.

## Risk Register
- underwriting: HIGH - Base DSCR 0.95x is below preferred cushion (Can reduce lender proceeds and increase risk).
- underwriting: HIGH - Scenario pass-rate 3.7% below target (Increases downside loss probability).
- financing: HIGH - Amortizing DSCR 0.97x is tight (Could reduce certainty of execution).

## Data Gaps
- underwriting: Historical monthly rent trend missing for two periods.
- financing: Final third-party report requested by lead lender.

## Phase Outcomes
- Due Diligence: COMPLETE | Verdict: PASS | Risk: 82 | Red flags: 0 | Data gaps: 0.
- Underwriting: COMPLETE | Verdict: FAIL | Risk: 76 | Red flags: 2 | Data gaps: 1.
- Financing: COMPLETE | Verdict: CONDITIONAL | Risk: 81 | Red flags: 1 | Data gaps: 1.
- Legal: COMPLETE | Verdict: PASS | Risk: 82 | Red flags: 0 | Data gaps: 0.
- Closing: COMPLETE | Verdict: PROCEED_WITH_MITIGATIONS | Risk: 93 | Red flags: 0 | Data gaps: 0.

## Closing Sources and Uses
| Source | Amount |
| --- | --- |
| Senior Loan Proceeds | $24,000,000 |
| Buyer Equity | $8,960,000 |
| Security Deposit Credit | $98,685 |

| Use | Amount |
| --- | --- |
| Purchase Price | $32,000,000 |
| Closing Costs | $960,000 |
| Tax Proration | $38,227 |
| Insurance Proration | $9,902 |
| Buyer Return at Close | $50,556 |
- Balanced: yes.

## Recommendation Conditions
- Reduce debt proceeds or secure an interest reserve until stabilized NOI supports permanent debt.
- Validate Travis County tax assessment, appeal assumptions, and annual protest budget.
- Confirm rent-premium evidence by unit type before underwriting the full $250/month renovation premium.
- Require lender quote confirmation that DSCR and debt yield are acceptable under tax-adjusted NOI.
- Keep PSA extensions and deposits aligned with tax, financing, and third-party-report diligence.

## Workpaper Index
- Due Diligence / rent-roll-analyst: see `data/reports/parkview-2026-001/due-diligence/rent-roll-analyst-workpaper-v1.md`.
- Due Diligence / opex-analyst: see `data/reports/parkview-2026-001/due-diligence/opex-analyst-workpaper-v1.md`.
- Due Diligence / physical-inspection: see `data/reports/parkview-2026-001/due-diligence/physical-inspection-workpaper-v1.md`.
- Due Diligence / legal-title-review: see `data/reports/parkview-2026-001/due-diligence/legal-title-review-workpaper-v1.md`.
- Due Diligence / market-study: see `data/reports/parkview-2026-001/due-diligence/market-study-workpaper-v1.md`.
- Due Diligence / tenant-credit: see `data/reports/parkview-2026-001/due-diligence/tenant-credit-workpaper-v1.md`.
- Due Diligence / environmental-review: see `data/reports/parkview-2026-001/due-diligence/environmental-review-workpaper-v1.md`.
- Underwriting / financial-model-builder: see `data/reports/parkview-2026-001/underwriting/financial-model-builder-workpaper-v1.md`.
- Underwriting / scenario-analyst: see `data/reports/parkview-2026-001/underwriting/scenario-analyst-workpaper-v1.md`.
- Underwriting / ic-memo-writer: see `data/reports/parkview-2026-001/underwriting/ic-memo-writer-workpaper-v1.md`.
- Financing / lender-outreach: see `data/reports/parkview-2026-001/financing/lender-outreach-workpaper-v1.md`.
- Financing / quote-comparator: see `data/reports/parkview-2026-001/financing/quote-comparator-workpaper-v1.md`.
- Financing / term-sheet-builder: see `data/reports/parkview-2026-001/financing/term-sheet-builder-workpaper-v1.md`.
- Legal / psa-reviewer: see `data/reports/parkview-2026-001/legal/psa-reviewer-workpaper-v1.md`.
- Legal / loan-doc-reviewer: see `data/reports/parkview-2026-001/legal/loan-doc-reviewer-workpaper-v1.md`.
- Legal / title-survey-reviewer: see `data/reports/parkview-2026-001/legal/title-survey-reviewer-workpaper-v1.md`.
- Legal / estoppel-tracker: see `data/reports/parkview-2026-001/legal/estoppel-tracker-workpaper-v1.md`.
- Legal / insurance-coordinator: see `data/reports/parkview-2026-001/legal/insurance-coordinator-workpaper-v1.md`.
- Legal / transfer-doc-preparer: see `data/reports/parkview-2026-001/legal/transfer-doc-preparer-workpaper-v1.md`.
- Closing / closing-coordinator: see `data/reports/parkview-2026-001/closing/closing-coordinator-workpaper-v1.md`.
- Closing / funds-flow-manager: see `data/reports/parkview-2026-001/closing/funds-flow-manager-workpaper-v1.md`.

## Reviewer Tickmark Log
- final-report tickmark 01: reviewed source tie-out, calculation flow, risk wording, and downstream handoff consistency.
- final-report tickmark 02: reviewed source tie-out, calculation flow, risk wording, and downstream handoff consistency.
- final-report tickmark 03: reviewed source tie-out, calculation flow, risk wording, and downstream handoff consistency.
- final-report tickmark 04: reviewed source tie-out, calculation flow, risk wording, and downstream handoff consistency.
- final-report tickmark 05: reviewed source tie-out, calculation flow, risk wording, and downstream handoff consistency.
- final-report tickmark 06: reviewed source tie-out, calculation flow, risk wording, and downstream handoff consistency.
- final-report tickmark 07: reviewed source tie-out, calculation flow, risk wording, and downstream handoff consistency.
- final-report tickmark 08: reviewed source tie-out, calculation flow, risk wording, and downstream handoff consistency.
