How Underwrite handles Mixed-Use.
Mixed-use is the canonical Underwrite use case. The Cherry Street regression-anchor deal is mixed-use. The engine models residential and commercial revenue streams simultaneously: residential units x monthly rent + retail SF x rent per SF + other income. The Insurance / Tax Spike stress scenario is shared with multifamily since the underlying expense dynamics often align.
What the engine surfaces natively
On any Mixed-Usedeal, the in-tool Operating Snapshot replaces generic schema labels with the asset class's native vocabulary:
- Residential Units. Apartment / loft count from the residential portion.
- Avg Rent / Unit / Mo. Monthly rent per residential unit.
- Commercial SF. Retail / commercial square footage of the ground-floor or adjacent commercial space.
- Rent / SF / Yr. Annual rent per SF of commercial space.
- Cost / Unit. Purchase price allocated by unit count (mixed-use approximation; institutional underwriting often allocates by appraised value).
Property-type-aware validation bands
Validation guards in lib/engine/validation.ts use these tighter bands for Mixed-Use instead of the generic defaults:
- Property management % of EGI: 2-6%. Standard institutional band, weighted to the residential portion.
Asset-class stress scenarios
The ScenarioBar surfaces these stress overlays when Mixed-Use is the current property type:
- Insurance / Tax Spike. Expense growth +200bps, property mgmt +50bps. Applies to mixed-use since the residential portion drives the operating profile.
- All four generic stress scenarios (Base, Recession, Rate Spike, Aggressive) are also available on Mixed-Use deals.
Example deal: 132 Cherry Street
The Mixed-Use pre-built example computes to the headline values below. Click into the tool to edit any input and watch the engine recompute live, or open the IC memo to see the full deterministic output.
Current model boundaries for this asset class
These are the Mixed-Use-specific institutional features Underwrite deliberately routes to analyst review today. The full list across all asset classes is at /methodology/beyond-phase-1.
- Vertical mixed-use (street-level retail under residential) uses the same aggregate rent schema as horizontal. In practice retail and residential components have very different growth, vacancy, and exit cap profiles.
- Condo-conversion potential for the residential component is not modeled.
- Shared amenity spaces and parking are folded into other-income.