Bridgeview Commons — Investment Committee Memo

Prepared 2026-03-31. Bridgeview Commons is fictional and every figure below comes from the two documents in demo/sources/.

Recommendation

Proceed to full diligence. The asset supports the sponsor's basis, but the underwritten year-one NOI sits above trailing performance and the pending tax appeal is unreserved.

The asset

Bridgeview Commons is 128 units across four three-story garden buildings, built in 1998 and substantially renovated between 2019 and 2021¹. Unit mix runs from one-bedroom through three-bedroom, and the property has no rent-restricted units.

Trailing performance

Effective gross income of $2,684,400² is the one figure the T12 summary and the sponsor's model agree on without adjustment. Against that, total operating expenses were $1,254,800, an expense ratio of 46.7%³, leaving net operating income of $1,429,600⁴.

Occupancy is not the problem here. The summary states that "Physical occupancy was 96.4% in the most recent month and has not fallen below 92.0% in any month of the period."⁵ The gap between that and economic occupancy of 90.3%⁶ is concessions, bad debt and vacancy loss — and concessions of $84,700 were concentrated in the third quarter of 2025⁷, which management has since addressed by staggering renewal terms.

Average in-place rent was $1,658 per month against asking rents of $1,742 on the twelve most recent leases⁸, a spread that supports the sponsor's rent-growth assumption without requiring the submarket to move.

The sponsor's underwriting

The model carries a purchase price of $24.85 million⁹ and an underwritten year-one NOI of $1,487,400¹⁰ — 4.0% above trailing, which is the assumption the committee should test first. At the proposed loan amount that produces a year-one DSCR of 1.34x¹¹, comfortably inside covenant but well below the 1.47x the property produced on its existing agency loan¹².

Risks

Real estate taxes of $412,300 are 32.9% of total operating expenses¹³, and the 2025 reassessment that produced them is under appeal with no relief assumed and no reserve established. An adverse outcome is already in the run rate; a favourable one is upside nobody has underwritten.

Capital is the second exposure. Deferred maintenance of $410,000 was identified in the March 2026 property condition assessment, of which $148,000 is immediate¹⁴, and none of it is escrowed. The model's replacement reserve of $250 per unit per year¹⁵ does not reach it.

Ask

Approval to spend $45,000 on third-party reports and to extend the PSA contingency by fourteen days.