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๐Ÿ“š Knowledge Hub

Commercial Real Estate Investment Guides

Institutional-depth guides to CRE metrics, deal structures, and investment strategies โ€” written for private equity, family offices, REITs, and high-net-worth investors.

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Asset Class

Industrial Real Estate Investing 101

Warehouse, distribution, cold storage, and last-mile logistics investment fundamentals โ€” cap rates, leasing, operations, and key underwriting metrics.

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Net Lease

NNN Lease Investing: Tenant Credit & Due Diligence

How to evaluate tenant credit quality, analyze rent-to-sales ratios, structure sale-leaseback transactions, and underwrite NNN lease real estate.

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Hospitality

Hotel Investment: RevPAR, ADR, and NOI Analysis

A complete guide to hotel investment underwriting โ€” RevPAR benchmarks, NOI calculation, PIP requirements, brand selection, and hospitality financing.

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Quick Reference: Key CRE Metrics

Return Metrics
IRR (Internal Rate of Return)Compounded total return including income + appreciation, accounting for time value
Cash-on-Cash ReturnAnnual pre-tax cash flow รท total equity invested; current levered yield
Equity Multiple (MOIC)Total distributions + exit proceeds รท equity invested; e.g. 2.0x = doubled equity
Cap RateNOI รท purchase price; unlevered property yield, no debt effect
DSCRNOI รท annual debt service; lenders require 1.20xโ€“1.30x minimum
Underwriting Terms
Going-In Cap RateYear 1 NOI รท purchase price; the initial unlevered yield at acquisition
Exit Cap RateAssumed cap rate at sale; determines exit price = terminal NOI รท exit cap
LTV (Loan-to-Value)Loan amount รท property value; lenders typically allow 55โ€“75% LTV
NOI (Net Operating Income)Gross income โˆ’ operating expenses; excludes debt service and depreciation
WALTWeighted Average Lease Term; longer WALT = lower risk, tighter cap rates
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