Audit of the proforma (2) Press_House_Proforma_Model.xlsx, "Prepared by TP, reviewed by PJG") against the primary source documents in 15 - Press House Dataroom. Focus: data precision + model audit. Source extracts in _review/05_dataroom/extracts/. No tenant PII (rent-roll/AR names excluded). As of June 2026.
The model is competently built and ties exactly to the seller's actuals on the big anchors (price, gross rent, property tax, retail NOI, other income) — the analyst clearly built it off the real T-12/rent roll. But the entry is flattered: going-in NOI uses the single most favorable month (April), and concessions are actually surging, not falling. A few items are genuinely conservative (transfer tax, mgmt fee). The equity is institutionally backed (Farallon, $42B AUM); the senior-loan financeability question from the prior review still stands. Net: the deal is real, but a normalized, market-grounded entry NOI is ~$3.9M (T-12), not $4.57M.
| Model input | Model value | Source value (dataroom doc) | Status | Sev |
|---|---|---|---|---|
| Purchase price | $110,000,000 | $110,000,000 — LOI (Fox→CBRE, 6/4/26) | ✅ Confirmed | OK |
| Units | 356 | 356 — Rent Roll / Box Score | ✅ | OK |
| Gross Potential Rent | $996,480/mo | $996,480/mo flat all 12 mo — Resi T-12 (4100-0000) | ✅ exact | OK |
| Going-in resi NOI ("now") | $360,785/mo (April) | April = $360,785 ✅ but T-12 avg = $324,464/mo ($3,893,571/yr) — Resi T-12 NOI (B145) | ⚠️ April cherry-picked | H |
| Utilities (going-in) | April $26,390 | T-12 avg $80,957/mo; April low from a gas credit −$10,802 & low electric — Resi T-12 (5800s) | ⚠️ April flatters NOI | H |
| Bad debt (going-in) | April −$8.87 | T-12 avg −$36,583/mo — Resi T-12 (4110-0007) | ⚠️ April flatters NOI | M |
| Other income (going-in) | April $93,032 | T-12 avg $65,375/mo (model uses T-12 fwd — OK) — Resi T-12 (B45) | ⚠️ "now" flattered | M |
| Concessions (forward) | 4% → 1.5% of GPR | Rising: Jan −$11,065 → Apr −$125,156 (~12.6% of GPR) — Resi T-12 (4110-0003) | ❌ contradicts trend | C |
| Real-estate taxes | $1,211,031/yr | $1,211,031/yr T-12 accrual; cash-billed ~$1.12M main lot flat 2023-26 — Resi T-12 (5900-0004) + Tax bills (SSL 0772-7004/0809/7001) | ✅ validated; no reassessment | OK |
| Transfer/"Welcome Tax" | $1,595,000 (buyer) | Seller pays ALL transfer & recordation — LOI "Closing Costs" → buyer pays $0 | 🟢 overstated ~$1.6M (conservative) | OK→fix |
| Payroll (forward) | $65,000/mo | T-12 avg $89,734/mo (incl Temp Agency ~$21.5K/mo); April $76,963 — Resi T-12 (5200s) | ⚠️ aggressive cut (temp is a real lever) | M |
| Mgmt fee (forward) | 3.5% of EGI | actual ~$23,615/mo (~3.1%) — Resi T-12 (5400) | 🟢 modeled above actual | OK |
| Insurance (forward) | $9,786/mo | recent actual $7,382/mo (renewed down); T-12 $11,958 — Resi T-12 (5900-0003) | ⚠️ watch renewal | L |
| Non-recurring / capex | $70K FFE budget | $977,480/yr actual non-recurring (HVAC $410K, fire $141K, interior $175K…) — Resi T-12 (6150s) | ❌ deferred capex understated | H |
| Retail NOI | $19,805/mo | $19,805/mo (April) ✅; retail ~65% vacant (−$34.5K/mo vacancy) — Retail T-12 | ✅ / context | OK |
| Retail "+$35K lease-up" | speculative upside | Starbucks + S&S retail leases EXECUTED in room (14,832 SF retail per LOI) → likely contracted | 🟢 (army verifying terms) | OK |
| Equity / sponsor | (implicit) | Fox RE + Farallon Capital ($42B AUM) institutional equity; no fundraising contingency — LOI + Farallon letter | 🟢 NEW — equity de-risked | OK |
| Senior debt | $88M / 80% / 6.85% I/O | "conventional acquisition financing" (separate from Farallon equity); no term sheet in room | ⚠️ sizing still open (debt yield ~5%) | H |
| Physical occupancy | 86.9% | Box Score 85.7% (Apr) → 86.2% (May); %Leased 89.9% → 93.8% — Box Score | ✅ momentum positive | OK |
| Economic occupancy | 65% | driven by concession surge + AR delinquency — (AR total: army verifying) | ⚠️ the real lever | H |
Aged Receivables (3/27/2026) — quantifies the economic-occupancy gap. Total unpaid $589,346 ($315,226 net of prepays/credits); aging 0-30 $175K · 31-60 $187K · 61-90 $103K · over-90 $123K. 108 of 356 units (30%) are delinquent; 64 carry an over-90 balance. Total AR ≈ 0.59 months of GPR. The ~$227K in the 61-90/over-90 buckets is the real bad-debt exposure — against which the model's April bad-debt of −$8.87 is not credible (write-offs appear to have stopped while AR balloons). This confirms the 65% economic-occupancy story is a collections problem, and the going-in entry month understates normalized bad debt. Severity: High.
Retail leases — the "+$35K/mo lease-up" is largely CONTRACTED (de-risked). Two executed leases sit in the room: Starbucks (2,360 SF, $52.00/SF → $122,720/yr / $10,227/mo yrs 1-5, $57.20/SF yrs 6-10, 10-yr term + extensions) and Scissors & Scotch (~2,000 SF, 10-yr + 2×5, rent chart ~$50/SF ≈ ~$100-110K/yr). Combined ≈ $19K/mo of contracted base rent — currently sitting in the Retail T-12 vacancy line (−$34.5K/mo) because rent has not yet commenced (build-out; rent starts at opening or ~150 days post-delivery). When they open, retail NOI roughly doubles toward the modeled +$35K. Risk is rent-commencement timing, not leasing risk — a meaningful positive vs treating the $35K as speculative. (Both managed by Foulger-Pratt Mgmt — seller-affiliated; building retail = 14,832 SF total.) Severity: Low (favorable).
Rentable items (4/02/2026). Directory carries both Market Rent and Current Rent per item (parking/storage/bike) — confirms a market-vs-in-place gap (e.g., ADA parking 2 of 3 leased, $400 current vs $625 market). Ancillary lease-up is genuine unmodeled upside; the model's other-income (~$65K/mo) treats it conservatively. Severity: Low (favorable).
Proforma v1 → v2. The two files are structurally different, not just re-numbered: v1 (Press_House_Proforma_Model.xlsx) is the working model with a "VCF Calculation" sheet + raw Projection/Monthly-Detail tabs; v2 (2) …) is the reorganized presentation model — the analyst added "1) Investment Summary" and "2) Inputs & Drivers", renumbered the tabs, and dropped the VCF Calculation sheet. v2 is the operative model audited here, and its anchors tie to the actuals above. (A line-by-line v1↔v2 number reconciliation across the renamed tabs is the one remaining nice-to-have if you want to see exactly which projection inputs moved between drafts.)
Per Fox's direction, two assumptions were corrected in the REVIEWED workbook and the investment deck: - Concessions: held at the current ~12.6% of GPR (April actual ~$125K/mo) for 12 months, then trending down (4% by month 24, 3% stabilized) — vs the original glide to 1.5%. - Other income: flat for the first 6 months, then growing at an annual rate ramping 3% -> 6% (months 7-24).
Corrected model result: Project IRR 53.9% / 2.42x equity multiple (vs the 61% headline); net equity at exit ~$69.0M; stabilized NOI ~$8.0M; gross exit value ~$160.6M; yield on cost 6.8%. The investment deck has been updated to these figures.