New IC memo section: strips the inflation tailwind out of the nominal IRR to show the LP's purchasing-power return. At a 3% CPI default, Cherry Street's 15.34% nominal becomes 11.98% real (336 bps inflation drag). Also computes real MIRR and (when tax overlay is enabled) after-tax real IRR. Standard institutional analysis especially relevant in any non-zero-inflation regime: the nominal headline IRR overstates what the LP actually keeps in purchasing-power terms.
Changelog, page 18
What shipped, and when.
A day-by-day record of what landed in Underwrite, kept by hand. Page 18 of 23.
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2026-05-14
15 entries
Phase 3 begins: live market data overlay (FRED Treasury / SOFR / CPI / inflation expectations) + 18 more institutional analytics. Live macro frame, deal-vs-market positioning, deterministic engine guarantee preserved (Cherry Street regression byte-identical with seeded fallbacks). 90 modules shipped today.
New IC memo section: cap rate minus 10-year Treasury (4.5% mid-2026 proxy), the institutional 'is this CRE deal even better than risk-free?' sanity check. Cherry Street stabilized cap 7.43% over 10Y of 4.5% = +293 bps spread, 'standard' band. Framing: strong (≥400 bps), standard (250-400), thin (100-250), tight (<100; returns hinge on cap compression). Useful for treasury teams and capital allocators benchmarking CRE vs fixed income.
New IC memo section overlays a typical institutional sponsor fee structure on the engine's pre-fee cash flows: acquisition (1% of purchase), asset mgmt (1.5% of LP equity / year), disposition (1% of sale). Cherry Street: pre-fee 15.34% → post-fee 13.43%, fee drag 191 bps, total fees $532k over hold. Surfaces the difference between the deal's gross math and the LP's net-of-fees experience; the headline IRR is rarely what an LP actually pockets.
New IC memo section: blended cost of capital across senior debt + mezz (when present) + equity (priced at the 15% institutional CRE hurdle, representing what NEW capital would expect to earn). Project IRR vs WACC spread = whether the deal beats market hurdle rates. Cherry Street WACC 9.46% vs project IRR 15.34% = +588 bps spread, accretive. Standard corp finance metric applied to CRE: gives the IC a clear 'are we creating value over capital cost' read.
New IC memo section: extends the Monte Carlo distribution into risk-officer-style downside metrics. Probability bands at multiple IRR thresholds (loss, below pref, below 12%, above 15%, above 20%, above 25%) plus tail statistics (worst-of-1,000, P1, P5, CTE5 = avg of worst 5%). Cherry Street's downside profile: 0% chance of capital loss, 3.9% chance of underperforming pref, 23.7% chance of clearing 15%, worst case 3.45% (still positive). LP allocators who think in terms of tail magnitude (not just probability) now have the metrics surfaced explicitly.
New IC memo section: scores the deal against five institutional LP archetypes (Insurance/Pension Core, Sovereign Wealth, Pension Fund-of-Funds, Family Office, Opportunity Fund) on three dimensions: target IRR band, CF stability tolerance, hold-period preference. Each archetype gets a 0-100 fit score with rationale. Cherry Street fits Pension Fund-of-Funds and Family Office (100/100), Sovereign Wealth (83), Insurance Core (73), Opportunity Fund (63), pointing to mid-tier institutional capital as the natural buyer. Helps sponsor positioning: don't pitch a 15% IRR core deal to an opportunity fund chasing 25%+.
New IC memo section: price per SF / per unit / per key (asset-class-native) compared to mid-2026 institutional transaction comp bands. Multifamily $200k-500k/unit, Office $200-700/SF, Hotel $120k-400k/key, Industrial $100-300/SF, etc. Status flagged in-band / above (needs upside story) / below (diligence the discount). Cherry Street's $354k/unit sits in the middle of the Mixed-Use $250k-550k band. The first 'is this a fair price' check that every broker conversation revolves around, now surfaced explicitly on the memo.
New IC memo section: tracks operating margin year-by-year + Y1 → exit expansion in pp + trend classification (expanding / stable / compressing). Expanding margin = operating leverage is working (revenue grows faster than expenses); compressing = expense inflation eats operating returns. Pair with NOI Decomposition for the full picture: NOI Decomp shows the dollar Δs; this view shows whether those Δs translate into improving or deteriorating operating efficiency.
New IC memo section: measures how comfortably each year's operating CF covers the LP's preferred return on contributed equity. Cherry Street's pre-exit DCR is 91.5% (interim CF covers ~92% of the cumulative pref obligation through Y6); total DCR including exit is 435%. Below 100% pre-exit = some pref accrues unpaid and is made whole from the sale; above = pref is fully serviced through operations. Tells the IC how much pref accrual the deal leans on the exit sale to clear.
New IC memo section: identifies the year NOI is within 2% of the year-3+ trailing-average (the 'settled' steady-state). Y1 vs stabilized NOI delta tells the IC how much of the deal's value lives in operations stabilization vs market rent growth. Band classification (stabilized at acquisition / early / mid-hold / late). Cherry Street's Y1 NOI is $594k, stabilizes at Y5 to $672k (13% uplift), a continuous-growth deal rather than a value-add ramp, which is what the band confirms.
New IC memo section: capital sources ordered from most senior (senior debt = first paid, lowest cost) to most junior (LP equity = last paid, gets carry). Each layer shows $ amount, % of total stack, position label, and expected return. Stacked-bar visualization at the top gives the institutional 'what does the cap stack look like' view that LPs and lenders use to read a deal at a glance. Adapts when mezz / GP coinvest are active; layer count flexes from 2 (senior + equity) to 4 (senior + mezz + GP coinvest + LP).
New IC memo section (rent-roll deals only): NER = (gross rent over term - free rent dollars - TI/LC dollars) / (SF × term years). The institutional standard for comparing leases with different concessions. A $50/SF face with 6 months free + $40/SF TI on a 5-year lease is really ~$37/SF net effective. Plus SF-weighted summary stats: face rent, NER, and concession drag in basis points. Lets the IC see each tenant's true economics rather than the broker-quoted face rate.
New IC memo section: year-by-year annual cash-on-cash yield + running cumulative yield (% of equity returned through year N). Cherry Street's pre-exit cumulative yield is ~44% (interim CF returns less than half the equity check); total cumulative is ~244% (exit crystallizes the rest). The pre-exit-to-total split tells the IC how much of the LP's return is yield-driven vs appreciation-driven, useful framing for LP fit (yield-focused LPs want high pre-exit shares).
New IC memo section: asset-class-native operating efficiency benchmarks. Year-by-year NOI per unit (multifamily), NOI per key (hotel), or NOI per SF (office / retail / industrial). EGI and OpEx broken out per unit too, plus NOI growth CAGR. These are the numbers institutional brokers quote at broker tours ($/key on hotels, $/SF on logistics) and lenders benchmark when underwriting; having them surfaced explicitly on the memo bridges the gap between the deal-level pro forma and the asset-class-native comp tables.
New IC memo section: anticipates what a senior debt underwriter would internally risk-rate the deal at. Synthesizes DSCR thickness + Y1 debt yield + LTV vs policy + property type stability + refinance feasibility into a 1-10 rating (lower = better) with transparent component breakdown. Cherry Street prints 3/10 'Investment-grade': pristine DSCR, strong debt yield, mid-LTV, moderate property-type risk, strong refi optionality. Anticipates underwriter pushback before the sponsor approaches debt capital markets.