ACQUIRE · Pro Forma Impactv3 · scenario: CoreNav adjusted (mid)·last reflow 11:38 UTC
Does the deal still work? Yes — with a retrade.
Base case implies $82.5M. CoreNav-adjusted range is $76.2M–$79.1M, a 4.1–7.6% reduction. The deal is viable with a structured retrade anchored to the HVAC reserve gap. Two items still need seller data.
Base purchase price
$82.5M
as proposed by seller
CoreNav adjusted range
$76.2–79.1M
low to high scenario
Stabilized NOI
$5.18–5.32M
−$280K to −$420K vs base
CapEx reserve adj.
+$3.2M
midpoint; primarily HVAC
Viability signal
Retrade
4.1–7.6% cumulative impact
Recommendation
The deal is not broken — but core assumptions need to move. Ask for a $2.7M price reduction or an equivalent $1.8M seller-funded HVAC reserve, paired with seller-funded BAS recommissioning and an R&W on undisclosed loss runs.
Confidence
78%
to hold the adjusted range
Model assumptions
linked to findings · edit any linebase · high · lowrevenue
Base rental revenue
Year 2 rollover concentration
$8.2M
$8.1M
$8.0M
F-03−3.4%
Expense reimbursements (NNN)
$1.1M
$1.1M
$1.1M
−3.6%
expense
Real estate taxes
2026 reassessment risk
$1.2M
$1.3M
$1.2M
RF-07++3.8%
Utilities
Savings unsupported
$186K
$214K
$196K
F-02++5.4%
Repairs & maintenance
HVAC repair trend
$312K
$384K
$348K
F-01++11.5%
Payroll
Below market headcount
$480K
$620K
$575K
RF-05++19.8%
Insurance
Undisclosed loss history
$248K
$323K
$283K
RF-04++14.1%
capex
CapEx reserve (annualized)
HVAC underbudgeted
$1.2M
$4.4M
$3.4M
F-01++183.3%
financing
Debt (LTV, rate)
% LTV
60%
60%
58%
−3.3%
exit
Exit cap rate
Asset quality + capex
6.5%
7%
6.75%
F-01++3.8%
Stabilized NOI (implied)
$5.6M
$5.3M
$5.2M
Implied value (cap @ 6.5–7.0%)
$82.5M
$79.1M
$76.2M