What is Typically Included in a Multifamily Investment Committee Memo?

For a 250+ unit institutional multifamily acquisition, an investment committee (IC) memo typically follows a structured format so decision-makers can quickly understand the opportunity, risks, and recommendation. While exact structure can vary by firm, here are the sections most often included:

1. Executive Summary

Deal overview (property name, location, units, vintage, acquisition price)
High-level thesis (why this asset, why now)
Key financial highlights (purchase price, projected IRR, equity multiple, DSCR, etc.)
Recommendation for approval

2. Property Overview

Basic facts: unit count, year built/renovated, class (A/B/C), construction type, amenities
Physical condition (deferred maintenance, recent capital improvements)
Site plan and photos

3. Location & Market Overview

Submarket description (demographics, demand drivers, employment centers, schools, transit access)
Supply pipeline (new deliveries, planned projects)
Historical and projected rent growth, occupancy trends
Competitive positioning (Class A vs. B, concessions, lease-up velocity)

4. Business Plan & Strategy

Investment thesis (core, value-add, opportunistic)
Planned renovations or operational improvements
Repositioning strategy (interior upgrades, amenity improvements, management efficiencies)
Timeline and execution risk

5. Financial Analysis

Sources & Uses of capital
Capital structure (equity, debt terms, leverage, interest-only/ amortization)
Base case pro forma (NOI growth, exit assumptions)
Sensitivity/scenario analysis (rent growth, exit cap rate, occupancy)
Key metrics: IRR, MOIC, Equity Multiple, Cash-on-Cash, DSCR

6. Comparable Analysis

Rent comps (effective rents, concessions, amenities, absorption trends)
Sales comps (price per unit, cap rates)
Occupancy and exposure comparison

7. Risks & Mitigants

Market risks (supply, economic concentration, regulatory rent control risk)
Asset-specific risks (capex, age, physical condition, lease rollover exposure)
Mitigation strategies (fixed-rate debt, reserves, staggered upgrades, third-party management)

8. Exit Strategy

Expected hold period
Exit assumptions (cap rate, projected value, buyer profile)
Sensitivity to market conditions

9. Legal/Tax/Structuring Considerations

JV structure, ownership percentages
GP/LP fees and promotes
Tax considerations (1031, depreciation strategy, bonus depreciation, etc.)

10. Appendices

Detailed financial model
Rent roll & lease expiration schedule
Market survey data
Maps (aerials, comps, pipeline projects)
Third-party reports (appraisal, PCA, ESA, market study if available)

📌 For institutional IC memos, the emphasis is typically on clear, data-driven justification: market defensibility, risk-adjusted return, and execution feasibility.