Example run
First-pass underwrite on a 3-tenant retail strip center
Underwriting a strip center
Photo: Surinder Singh / Unsplash. Illustrative photograph, not the subject property
About this run
This is one real run. The ask went through Boardroom's live pipeline once, and the output is laid out here unedited. Where the tool would not compute a figure, the page says so in that figure's place.
01Executive summary
- Asking price
- $3,200,000
- Price per SF
- $173.91/SF
- GLA
- ~18,400 SF
- In-place NOI
- $208,000[1]
- Going-in cap rate
- 6.50%[1]
- Debt yield
- 9.29%[1]
- Proposed loan, 70% LTV
- $2,240,000[2]
- Equity required
- $960,000
- Interest rate
- 6.75%[2]
- Annual Debt Service
- Not computed[3]
- DSCR
- Not computed[3]
- Cash-on-Cash Return
- Not computed[3]
- Amortization term
- TBD
- Lender's minimum DSCR requirement
- TBD
- Tenant rent roll
- Not provided
- CapEx/reserve requirements
- Not provided
Not computed marks a figure the tool would not calculate. TBD and Not provided mark inputs the ask did not have yet. Notes [1] to [3] are in section 02.
Boardroom | Example run | 1
02The financials
Each figure is an input, arithmetic the tool showed, or not provided.
2.1 DEAL BASICS
From the ask| Item | Value | Source |
|---|---|---|
| Asking Price | $3,200,000 | Input |
| GLA | ~18,400 SF | Inputper listing, unconfirmed |
| In-place NOI | $208,000[1] | Inputseller's trailing-12, UNAUDITED — verify against actual T-12 and rent roll |
| Proposed Loan | $2,240,000[2] | Input(70% LTV) at 6.75% (per lender quote, unverified/unsigned) |
2.2 CAP RATE & PRICE METRICS
Single-step arithmetic| Item | Value | Source |
|---|---|---|
| Going-in Cap Rate | 6.50%[1] | DerivedNOI / Price = $208,000 / $3,200,000 |
| Price per SF | $173.91/SF | Derived$3,200,000 / 18,400 SF |
[1]In-place NOI, in the tool's words: “seller's trailing-12, UNAUDITED — verify against actual T-12 and rent roll”. The going-in cap rate and debt yield are computed from it.
[2]The loan, in the tool's words: “per lender quote, unverified/unsigned”. Its rate and LTV are the tool's one labelled assumption, in section 03.
[3]Not computed. The tool wrote CANNOT CALCULATE for Annual Debt Service, DSCR, Cash-on-Cash Return. Its reason for Annual Debt Service: “amortization term is UNKNOWN.” The others depend on it.
2.3 DEBT METRICS
Where an input is missing, the tool gives its reason, not a number| Item | Value | Source |
|---|---|---|
| Loan Amount | $2,240,000[2] | Inputgiven |
| Equity Required | $960,000 | DerivedPrice − Loan = $3,200,000 − $2,240,000 |
| Debt Yield | 9.29%[1] | DerivedNOI / Loan = $208,000 / $2,240,000 |
| Annual Debt Service | Not computed[3] | Not providedCANNOT CALCULATE — amortization term is UNKNOWN. Formula once known: Monthly Payment = P × [i(1+i)^n] / [(1+i)^n − 1], where P=$2,240,000, i=6.75%/12, n=amortization months. Result should be tagged ~ (CALCULATOR-VERIFY) once amortization is confirmed. |
| DSCR | Not computed[3] | Not providedCANNOT CALCULATE — depends on annual debt service (above) and lender's minimum DSCR requirement, both UNKNOWN. |
| Cash-on-Cash Return | Not computed[3] | Not providedCANNOT CALCULATE — requires annual debt service to derive pre-tax cash flow (NOI − Debt Service) / Equity ($960,000). |
Boardroom | Example run | 2
03Assumptions
As the tool labelled them. Read before relying on any figure above.
ASSUMPTION (verify locally)
Interest rate of 6.75% and LTV of 70% remain valid through closing; lender quote is not yet a signed term sheet.
Left open
No assumption made on amortization, CapEx/reserves, DSCR minimum, or tenant lease detail — all left as UNKNOWN below.
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04Unknowns and next steps
In the tool's order.
| Item | Value | Why the tool needs it |
|---|---|---|
| 1. Amortization term (years) | TBD | needed for debt service, DSCR, cash-on-cash. |
| 2. Lender's minimum DSCR requirement | TBD | to test deal viability. |
| 3. Tenant rent roll: rents, occupancy %, lease expirations | Not provided | needed to assess NOI durability and rollover risk. |
| 4. CapEx/reserve requirements (lender and/or prudent underwriting) | Not provided | will reduce cash flow available to equity. |
Step 05
Confirm GLA (18,400 SF is 'per listing') via survey or lease measurements.
Step 06
Confirm NOI via audited/reviewed financials, not seller's unaudited T-12 alone.
The tool's closing line
Verify all figures against the T-12, certified rent roll, executed leases, and a signed lender term sheet before this analysis is relied upon by any party.
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05The ask and the output
Word for word, as sent and as returned. Check every figure above against it.
The ask
Underwrite this, first pass: 3-tenant retail strip center, +/- 18,400 SF GLA per the listing. Asking $3,200,000. In-place NOI $208,000 per the seller's trailing-twelve, unaudited. Lender has quoted 70% LTV ($2,240,000 loan) at 6.75%. Don't have yet: amortization, the tenant rent detail (occupancy, lease expirations), CapEx or reserves, and the lender's minimum DSCR. Give me going-in cap rate, price per SF, equity, debt yield, annual debt service, DSCR, and cash-on-cash.
The output
DEAL BASICS - Asking Price: $3,200,000 - GLA: ~18,400 SF (per listing, unconfirmed) - In-place NOI: $208,000 (seller's trailing-12, UNAUDITED — verify against actual T-12 and rent roll) - Proposed Loan: $2,240,000 (70% LTV) at 6.75% (per lender quote, unverified/unsigned) CAP RATE & PRICE METRICS - Going-in Cap Rate = NOI / Price = $208,000 / $3,200,000 = 6.50% - Price per SF = $3,200,000 / 18,400 SF = $173.91/SF DEBT METRICS - Loan Amount: $2,240,000 (given) - Equity Required = Price − Loan = $3,200,000 − $2,240,000 = $960,000 - Debt Yield = NOI / Loan = $208,000 / $2,240,000 = 9.29% - Annual Debt Service: CANNOT CALCULATE — amortization term is UNKNOWN. Formula once known: Monthly Payment = P × [i(1+i)^n] / [(1+i)^n − 1], where P=$2,240,000, i=6.75%/12, n=amortization months. Result should be tagged ~ (CALCULATOR-VERIFY) once amortization is confirmed. - DSCR: CANNOT CALCULATE — depends on annual debt service (above) and lender's minimum DSCR requirement, both UNKNOWN. - Cash-on-Cash Return: CANNOT CALCULATE — requires annual debt service to derive pre-tax cash flow (NOI − Debt Service) / Equity ($960,000). ASSUMPTIONS USED - ASSUMPTION (verify locally): Interest rate of 6.75% and LTV of 70% remain valid through closing; lender quote is not yet a signed term sheet. - No assumption made on amortization, CapEx/reserves, DSCR minimum, or tenant lease detail — all left as UNKNOWN below. UNKNOWNS / NEXT STEPS 1. Amortization term (years) — needed for debt service, DSCR, cash-on-cash. 2. Lender's minimum DSCR requirement — to test deal viability. 3. Tenant rent roll: rents, occupancy %, lease expirations — needed to assess NOI durability and rollover risk. 4. CapEx/reserve requirements (lender and/or prudent underwriting) — will reduce cash flow available to equity. 5. Confirm GLA (18,400 SF is 'per listing') via survey or lease measurements. 6. Confirm NOI via audited/reviewed financials, not seller's unaudited T-12 alone. Verify all figures against the T-12, certified rent roll, executed leases, and a signed lender term sheet before this analysis is relied upon by any party.
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