# Investment Committee Memo (Template)

> Illustrative teaching case. Northgate Commons is not a real property, this is not a real transaction, and the term sheet is not a real financing quote. Every figure is fabricated for instruction. Fill this in from your own model. Keep it to two pages.

**To:** Investment Committee
**From:**
**Date:**
**Subject:** Northgate Commons, 120 units, Fairhaven, a mid-size US market (fabricated)

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## Recommendation

_One sentence. Proceed, proceed at a revised price, or pass. Then the price._

Recommendation: ______________________________
Recommended price: ______________________________

## The deal

| | |
|---|---|
| Guidance price | $17,400,000 ($145,000 per unit) |
| Units / vintage | 120 / 1986 |
| Occupancy at the rent roll date | 95% |
| Normalized year-one net operating income | ______________ |
| Going-in cap rate on that figure | ______________ |
| Loan amount and binding test | ______________ |
| Sponsor equity | ______________ |
| Unlevered IRR / levered IRR | ______________ / ______________ |
| Equity multiple | ______________ |

## How we got to net operating income

_The number the whole memo rests on. Show the bridge from what the seller
reported to what we underwrote, one line per adjustment, with the dollar amount
and one sentence of reasoning each. A reader should be able to reproduce your
number from this section alone._

| Step | Amount | Reasoning |
|---|---|---|
| Seller reported net operating income, calendar 2026 | | |
| | | |
| | | |
| | | |
| | | |
| **Underwritten year one** | | |

## Where our number differs from the broker's

_Quantify rather than characterize. For each difference, the dollar amount and
the evidence in the package that supports our position._

| Item | Effect on net operating income | Evidence |
|---|---|---|
| | | |
| | | |
| | | |

## Financing

_Which test bound and why, what that implies about how much leverage this asset
supports, and what happens to proceeds if our net operating income is wrong by
five percent in either direction._

## The business plan

_The renovation program, the loss to lease, the pace, and what has to be true
for the year 2 and year 3 growth to land._

## What we are underwriting that we do not know

_Name the three assumptions carrying the most weight, and say which way the
answer moves if each is wrong. The exit cap belongs here. So does the renovation
premium holding across the remaining units._

| Assumption | If we are wrong by | Effect |
|---|---|---|
| | | |
| | | |
| | | |

## Recommendation detail

_If the deal does not clear the hurdle at guidance, do not stop at "pass."
State the price at which it clears, what you would need to see to pay more than
that, and whether the seller is likely to get to that number. A committee can
act on that. It cannot act on a rejection._

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*Illustrative teaching case. Northgate Commons, the market, the broker, the lender, the comparables, and every figure in this packet are fabricated for instruction. Nothing here is a real property, a real transaction, or a real financing quote.*