Underwriting Summary
Cap Rate Stress Test
Valuation impact of cap rate movement on a NOI-constant basis.
| Scenario | Cap Rate | Implied Value | Equity Impact |
|---|---|---|---|
| −50bps | 6.60% | $6.7M | +7.6% |
| Base Base | 7.10% | $6.2M | 0.0% |
| +50bps | 7.60% | $5.8M | -6.6% |
| +100bps | 8.10% | $5.4M | -12.3% |
DSCR Rate Sensitivity
Coverage ratio under interest rate shock scenarios.
| Rate Scenario | DSCR | Status |
|---|---|---|
| Current Rate Current | 1.41x | Pass |
| +100bps | 1.27x | Pass |
| +200bps | 1.16x | Marginal |
Threshold: 1.25x (agency standard) · 1.0x (minimum acceptable)
Rent Comps
Comparable properties within the submarket. Market rent per unit/month.
| Address | Market Rent | Year Built | Distance |
|---|---|---|---|
| 4800 Fredericksburg Rd | $1,080/mo | 2005 | 0.9 mi |
| 6100 NW Loop 410 | $1,020/mo | 2001 | 1.4 mi |
| 5200 Wurzbach Rd | $1,140/mo | 2012 | 0.7 mi |
Sample comps generated for illustration. Live deals show actual market data from CoStar/Rentometer.
Risk Flags
- Smaller unit count (72) limits institutional exit buyer pool
- San Antonio rent growth lagging other Texas MSAs at 1.8% YoY
- Military-adjacent tenant base creates rotation risk on PCS orders
Investment Rationale
The San Antonio deal scores 79 — strong fundamentals, modest market discount. A 7.1% cap rate and 1.41x DSCR are the best coverage metrics in this cohort, and 68% LTV at a $6.2M basis gives the buyer meaningful equity at entry. The 96% occupancy is genuine strength; this is a property that cash flows from day one with no repositioning required.
The score discount reflects two structural factors. First, the 72-unit count is below the 100-unit institutional threshold, which narrows the exit buyer pool to value-add operators, local investors, and 1031 exchange buyers. Second, San Antonio's multifamily rent growth has underperformed Austin and Dallas at roughly 1.8% YoY, consistent with the market's more military-driven demand composition and lower per-capita income growth.
Best suited for an all-cash or conservatively leveraged buyer seeking yield over appreciation. At current NOI and a 5% terminal cap rate, a 5-year DCF model returns an estimated 12.5% unleveraged IRR — above average for this asset class. A modest $2,400/unit renovation to kitchens and baths could push in-place rents 8% and take the score to mid-80s on a stabilized basis.
This is a sample analysis. Live deal rationale is generated by the Clearfield agent at deal ingestion using real financial data.
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