New IC memo section: entry / stabilized / exit caps + spread (exit - entry) with the framing classified in plain English (aggressive / neutral / conservative / very conservative). Cherry Street's -49 bps spread sits right at the neutral / aggressive cusp. Tells the IC at a glance whether the appreciation thesis lives on cap compression (aggressive), rent growth alone (neutral), or has a defensive cushion for rate hardening (conservative).
Changelog, page 20
What shipped, and when.
A day-by-day record of what landed in Underwrite, kept by hand. Page 20 of 23.
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2026-05-13
15 entries
Monte Carlo, Deal Strength composite score, sensitivity curves, break-even cushions, risk-adjusted returns, tenant concentration, hotel ops overlay, GP coinvest sweep, debt sizing optimizer, NOI decomp, a below-NOI leasing-capex parser, and 15 more analytics. The day the memo went from 'pro forma + waterfall' to 'institutional IC packet.'
Capstone new IC memo section: a 0-100 composite score synthesizing all the new institutional analytics into a single headline number. Five subscores: Returns Quality (25), Risk (25), Capital Structure (20), Resilience (20), Operations (10). Each component has a transparent rationale shown in an expandable detail panel. Computed deterministically from the engine outputs: same inputs always produce the same score, locked in regression. Cherry Street scores 95/100 'Exceptional' (only loses 5 pts on Risk for a slightly thinner Monte Carlo P10).
New section: sweeps GP coinvest 0% / 5% / 10% / 15% / 20% / 25% and shows LP IRR + GP IRR + the gap at each. LP IRR is invariant across coinvest (LP capital and distributions scale together); GP IRR converges toward LP IRR as the GP commits more capital, diluting the promote's amplification effect. Useful when negotiating LP terms with the sponsor: quantifies the alignment of incentives at each coinvest level. Cherry Street pattern: 10% coinvest produces 13.91% LP / 24.83% GP / 11pp gap; 25% coinvest narrows to 13.91% / 19.06% / 5.15pp gap.
Engine validation now fires asset-class-native warnings: Hotel deals without the hotel-ops overlay get an info nudge to break out brand / mgmt / FF&E fees; Office deals without a tenant rent roll get an info nudge to add tenants; rent per SF / monthly rent per key / per unit get flagged outside institutional ranges (e.g. office $15-120/SF, multifamily $800-7,500/mo, industrial $4-24/SF). Closes one more facet of the 'one-shoe-fits-all' critique; the engine now actively coaches the analyst toward the asset-class-native modeling features rather than letting them silently underwrite a hotel with multifamily fields.
New IC memo section: proper three-section accounting view (Operating / Investing / Financing) that every IC committee, lender, and auditor expects to see. Sums to Net Cash to Equity, which matches the equity waterfall's headline series. Surfaces the exit year as a single combined number: operating CF + sale proceeds + balloon payoff = the biggest LP distribution on the memo. Adapts to deal structure (mezz lines and refi line only render when those features are active).
New IC memo section: debt yield (NOI / outstanding loan) year-by-year. Y1 / Y3 forward / exit-year debt yield + a refi-ability flag (clears the 8% institutional threshold = yes / no). Cherry Street prints 10.75% Y1 → 11.72% Y3 → 14.10% exit, well above the 8% bar, so a maturity refi is realistic instead of a forced sale. Pair with the leverage curve to read whether the deal has both refinance optionality AND room for incremental leverage.
New IC memo section: year-by-year YOC = NOI / Total Uses (purchase + closing + fees + cumulative leasing capex). Cherry Street starts at 6.81% Y1 yield, stabilizes at 7.24% by Y3, and exits at 8.19% Y7, a 138 bps compression from Y1 to exit. The institutional 'income half' of returns; pair with the exit-vs-entry cap spread to read whether the appreciation thesis is conservative or aggressive.
New IC memo section: for each key driver (exit cap, rent growth, vacancy), surfaces the value at which IRR crosses zero (the break-even) and the cushion in basis points between current and break-even. Flagged thick / moderate / thin / negative. Cherry Street has thick cushions everywhere: exit cap could go from 6.5% to 11.1% (462 bps), rent growth could drop from 3% to -1.7% (468 bps), and vacancy basically has unlimited cushion thanks to the appreciation gain crystallizing at exit. A deal with thin cushions on multiple drivers is fragile; thick cushions across the board mean real margin of safety.
New IC memo section: NPV of the equity cash flow series discounted at 5% / 8% / 10% / 12% / 15% / 18%, the institutional hurdle ladder. Each row flagged accretive (NPV > 0) or dilutive. Cherry Street is accretive at all rates 5% through 15% but dilutive at 18%, with NPV crossing zero between 15% and 18% (consistent with the 15.34% project IRR). Lets the LP map the deal to their specific fund hurdle instead of just reading a single IRR number.
New IC memo section answers 'when does the LP get made whole?' with three concrete year measures: operating payback (interim distributions only: captures whether yield alone returns capital), total payback (interim + exit-year sale proceeds), and discounted payback (cash flows discounted at the pref rate). Cherry Street's operating payback is never within hold (rent yield well below 15%); total and discounted both land on Year 7 (the exit). Year-by-year cumulative CF table shows the running net cash position, so the IC can read the trajectory at a glance.
New IC memo section: surfaces typical institutional ranges for project IRR, entry cap rate, senior LTV, and min DSCR per property type (Multifamily, Mixed-Use, Office, Retail, Hotel, Industrial), drawn from NCREIF / CBRE / JLL Q4 2025 transaction surveys. Each metric is flagged in-band, above-band, or below-band so the analyst can sanity-check at a glance whether the deal is in the market middle or an outlier. Cherry Street's IRR / cap / LTV all sit in-band; DSCR is conservatively above-band (1.46x vs typical 1.25-1.45x).
New IC memo section: sweeps the senior debt rate -100bps to +200bps in 50bps steps and re-runs the full DCF, capturing IRR + min DSCR at each rate. Cherry Street loses ~126 bps of IRR per 100bps of rate spike; max feasible rate (where min DSCR still clears 1.25x) is 7.75% (~150bps of headroom over current). Useful when sizing acquisitions against a rising-rate forward curve: see at a glance how rate-sensitive the deal is and where the lender feasibility ceiling sits.
New IC memo section: each year's Δ NOI broken into Δ EGI (revenue) and Δ OpEx, with residential and commercial revenue Δs called out separately. Surfaces whether NOI growth is coming from rent compounding, lease-up vacancy burnoff, free-rent rolloff, or expense discipline. A deal growing on rent compounding is materially different from one growing on burnoff; this section makes the distinction visible at a glance.
New IC memo section: 50 / 25 / 25 default probability split (base / upside / downside) using the existing Aggressive and Recession stress definitions for the wings. Cherry Street headline IRR 15.34% becomes 12.58% on a probability-weighted basis, a 276 bps drag that surfaces tail-risk an analyst would otherwise miss when staring at a single base-case number. The framing stays consistent with the stress matrix and ScenarioBar overlays: same shocks, just blended into a single expected value.
New IC memo section: shows the three lender tests (LTV cap 75%, DSCR floor 1.25x, debt yield floor 8%) side-by-side with the binding constraint flagged. Tells the IC at a glance which test gates leverage on the deal. Cherry Street is LTV-binding at $6.375M (75% × $8.5M); DSCR allows $6.432M and debt yield allows $7.426M, so policy LTV is the gate. Pattern: DSCR-binding deals need better operations or lower rates; LTV-binding deals are at the lender's policy ceiling.