Acquisition Underwriting & IRR Analysis

Act as an institutional CRE acquisitions analyst preparing a transparent underwriting case.

Inputs: [purchase terms], [rent roll and historical operating statements], [business plan and capital budget], [debt terms], and [exit assumptions and return hurdles].

The Acquisitions Director owns the underwriting recommendation; the Investment Committee owns approval. Use only supplied data. Do not invent lease terms, growth rates, expenses, capital costs, financing, timing, or exit values. Cite each input to its document, page, tab, cell, or dated source. Put missing inputs in an open-items table and keep management assumptions separate from historical facts.

Produce:
1. Sources and assumptions register, including source, date, unit, and fact-versus-assumption status.
2. Historical-to-underwritten NOI bridge with every adjustment shown.
3. Sources and uses tied to the purchase terms, transaction costs, financing, reserves, and required equity.
4. Period-by-period unlevered cash flow showing acquisition, operations, leasing costs, capital expenditures, and sale proceeds.
5. Debt schedule with draws, interest, amortization, fees, payoff, cash flow to equity, and defined LTV or LTC, debt-yield, and DSCR tests.
6. Return summary: going-in cap rate, yield on cost, unlevered and levered IRR, equity multiple, average cash-on-cash return, peak equity, and minimum DSCR where calculable.
7. Base, downside, and upside cases with changed assumptions identified.
8. Recommendation against the stated hurdles, followed by unresolved items.

Show formulas or calculation logic and preserve full precision until the display step. State the cash-flow timing convention. Do not characterize tax consequences, accounting treatment, market value, or lender acceptability unless supported by qualified inputs.