WIREFRAME — Commercial Real Estate Acquisition & Appraisal-Review Dashboard

Asset / use scenario Office (as-is) Multifamily Convert → Assisted Living — illustrative; switches the rule set, comps & return metric (stub)

Seven adversarial checks · four-layer module (L1–L4)

Rent Roll Integrity Reject

Rent roll given to the appraiser ≠ internal records: basement shown vacant though it earns ~$90K/yr. Plus 2 cash/no-lease units (~$40K) the lender zeroes.

−$40K NOI · integrity÷ 8.0% ≈ −$0.5M value

OpEx & NOI Flag

Insurance line missing (the classic omission); $0 capital reserves; related-party mgmt fee; ~$55K property-tax reassessment (frozen-CVA deferred).

−$80K NOI÷ 8.0% ≈ −$1.0M value

Appraisal Cap-Rate Reject

Appraiser used 5.00%; Colliers/CBRE Class B suburban office is 7.50–9.00% — below the appraiser's OWN embedded data. At 8.00% the same NOI supports ~$5.8M.

−$3.49M valuecap rate alone

Vacancy & Comp-Adj Reject

4% vacancy applied to a 59%-vacant building (peers 29%); all sales comps 100% leased, no occupancy adjustment for the subject — warrants a 30–40% discount.

−$1.0M lease-up drag→ Stabilized (C), net

Market Rent & Absorption Flag

Office at $17/sf vs $8/sf across the street (same block) — outside the 20% tolerance; subject rents −14% YoY per the appraiser's own CoStar data; absorption is structural.

rents ≈ 2.1× market→ market $8/sf in scenarios

Title · Zoning · Use Flag

Clean for office/retail as-is. A Convert → Assisted Living reposition is NOT as-of-right: CL ✗ / CR ✓ — rezoning 12–18 mo, $75–150K, no guarantee; OBC Part 3.

rezoning gatereturn = Yield on Cost

Stress & CapEx Flag

27-yr building approaching roof / HVAC / elevator replacement; rate sensitivity +100/200 bps; Phase I environmental screen clear.

−$0.6M CapEx reserve→ value / returns

Cards reveal in sequence during the demo. Green = pass · Amber = flag · Red = reject (status is shown by the pill and the top border, not colour alone — survives B&W print). NOI findings are capitalized into value at the market cap rate (÷ cap); methodology findings feed the four scenarios below. Each amount is traceable (see audit drawer).

Exception report — adversarial appraisal review

Item	Check	Finding	Claimed	Supported	Delta	Source
1	Rent Roll	Sanitized rent roll: basement shown vacant though it earns ~$90K/yr (data to appraiser ≠ internal); 2 cash/no-lease tenants are unbankable	in-place	−$40,000	$40,000	internal rent roll · deposits
2	OpEx & NOI	Missing insurance line + $0 capital reserves + related-party management fee + ~$55K property-tax reassessment uplift (frozen CVA)	—	−$80,000	$80,000	T-12 · tax roll (MPAC)
3	Cap-Rate	Appraiser 5.00% vs published 7.50–9.00% (Class B suburban office) — below the appraiser's own embedded comps; at 8.00% → ~$5.8M	$9,300,000	$5,810,000	$3,490,000	appraisal · embedded comps
4	Vacancy / Comp	4% vacancy allowance on a 59%-vacant building (peer 29%); all sales comps 100% leased with no occupancy adjustment (30–40% discount)	4% vac.	59% vac.	$1.0M*	CoStar (in appraisal) · comps
5	Market Rent	Office rent $17/sf vs $8/sf across the street (same block); subject rents −14% YoY per the appraiser's own data	$17/sf	$8/sf	—*	cross-street comp · CoStar
6	Zoning / Use	Convert → Assisted Living not as-of-right: CL ✗ / CR ✓; rezoning 12–18 mo, $75–150K, no guarantee; OBC Part 3 conversion cost	—	—	gate*	zoning schedule
7	Stress / CapEx	27-yr building: roof / HVAC / elevator approaching replacement; +100/200 bps rate sensitivity modelled	$0	−$600,000	$600,000	PCA · rate model
Appraised $9,300,000 → defensible $4.0–5.5M (recommended bid). Cap-rate correction alone $3.49M; NOI corrections −$120K (÷ cap ≈ −$1.5M)					≈ $3.8–5.3M	*methodology findings feed the four scenarios →

Arithmetic (internal recompute, not a headline card): all rent-roll extensions, the OpEx/NOI rollup and each scenario's NOI ÷ cap are re-derived. Deltas are not simply additive — NOI and cap-rate corrections compound — so the four scenarios (below) are the authoritative re-basing.

Valuation scenarios & recommended bid

Going-in cap 5.00% appraiser → 8.00% market — illustrative; adjust to re-run the value (stub)

$5.5M

A · In-Place

$4.0M

B · Risk-Adj

$5.5M

C · Stabilized*

$5.8M

D · Appr.-Corr.

Recommended bid $4.0–5.5M vs appraised $9.3M — a 41–57% over-appraisal. *Stabilized is net of multi-year lease-up of a 59%-vacant building.

Export Layer 1–4 report (PDF) Send to IC / data room (stub) Accept / override flags

Audit drawer (on click): Source = the appraisal's OWN embedded comp data — Colliers Class B suburban office cap 7.50–9.00%. The report concludes value at a 5.00% cap. At the midpoint 8.00%, the appraiser's own NOI (~$465K) supports ~$5.8M, not $9.3M — a $3.5M overstatement from the cap rate alone, before the sanitized rent roll, the 4% vacancy on a 59%-vacant building, and $17/sf rents in an $8/sf market.

Convert → Assisted Living (if repositioned): zoning gate CL ✗ / CR ✓ — rezoning 12–18 mo, $75–150K, no guarantee; OBC Part 3 build cost; 10-category intended-use risk. Return metric becomes Yield on Cost (acquisition + rezoning + conversion + contingency), not a stabilized cap rate.

Portfolio — appraisals re-checked

$14.2M

of appraisal over-valuation flagged across 9 acquisitions reviewed — every third-party appraisal cross-checked against its own embedded data

Bars = $ over-appraisal flagged per deal · amber = above the discrepancy threshold.

Mockup only — illustrative figures, no live engine. Final figures come from the four-layer Real Estate module (Layer 1–4 + adversarial appraisal review) per DESIGN-commercial-real-estate-acquisition-appraisal-verification.md.

Sponsor Package + Draft Appraisal

Portfolio — appraisals re-checked