METHODOLOGY
Methodology.
Three analytical pillars structured to satisfy SBA SOP 50 10 8, USDA 7 CFR Part 5001, HUD MAP Guide, NCHMA Model Content Standards, and the published methodology of every major CMBS rating agency. The same methodology applies to every engagement; the depth of each pillar adapts to asset class and capital source.
THE THREE PILLARS
Three pillars. One bankable deliverable.
Every engagement is built on three analytical pillars. Each pillar has its own deep-dive page below; this overview shows how they connect.
The bankable framework
The structural philosophy that lets one feasibility study satisfy multiple capital sources. Regulatory citations, sensitivity bands, comp set methodology, and analyst certification structured for cross-program portability.
Market analysis discipline
Submarket analysis, competitive set construction, demand modeling, and absorption forecasting. Adapted to STR-grade for hospitality, NCHMA-aligned for multifamily, KBRA-ready for CMBS-bound deals.
Financial projections discipline
Five-year forward pro forma, DSCR and debt yield sensitivity, capital stack analysis, and lender-threshold stress testing. Built to survive credit committee, B-piece review, and rating agency scrutiny.
PILLAR 01
The bankable framework.
The term "bankable" originates in mining and energy project finance, where a bankable feasibility study is one sufficient for a financial institution to make a project finance decision. Standards like NI 43-101, JORC, SAMREC, and SEC S-K 1300 codify the structure: capex accuracy within ±10–15%, qualified person sign-off, and independence from operator interest. Translated to commercial real estate, the same principle holds. A bankable feasibility study travels across capital sources without rework.
Four characteristics make a CRE feasibility study bankable. First, regulatory citation density: SOP 50 10 8 for SBA, 7 CFR Part 5001 for USDA, MAP Guide for HUD, KBRA and Fitch methodology for CMBS. Each citation appears where it belongs, not as decoration. Second, sensitivity bands aligned to each capital source's published thresholds. Third, comp set methodology defensible to a B-piece buyer or rating agency reviewer. Fourth, independent third-party authorship with no operator conflict.
The framework sets the structural floor. Asset-class-specific methodology (Section 4 and Section 5 below) determines how deep each engagement goes within that floor.
What a bankable study carries
- Regulatory citations
SOP 50 10 8, 7 CFR 5001, MAP Guide, KBRA, Fitch, S&P, Moody's, DBRS Morningstar.
- Sensitivity bands
DSCR, debt yield, LTV stress-tested at every relevant lender threshold.
- Defensible comp sets
STR-grade, NCHMA-aligned, or KBRA-aligned by capital source.
- Independent authorship
No operator interest. Conflict policy disclosed in every engagement.
Market analysis components
- Submarket vacancy and absorption
- Competitive set construction (asset-class specific)
- Demand drivers and demographic catchment
- Capture rate and absorption modeling
- Rent or rate comparable analysis
- Tenant rollover and lease durability (where applicable)
PILLAR 02
Market analysis discipline.
Market analysis is the foundation of every feasibility study because every revenue projection depends on it. Get the comp set wrong and the entire pro forma is wrong. Methodology adapts to asset class: STR-style competitive set construction for hospitality, Radius Studies and SF-per-capita for self-storage, NCHMA Model Content Standards for LIHTC and tax credit deals, KBRA-aligned property comparables for CMBS-bound assets, and HUD Forms 92273 / 92274 / 92264 for HUD MAP-financed multifamily and senior housing.
Demand modeling layers on top of supply-side analysis. Capture rate calculations follow NCHMA methodology for affordable housing, demographic-catchment models for retail and consumer-facing assets, and employer-anchored modeling for workforce housing and rural USDA-financed projects. Absorption forecasts are stress-tested for slow-up scenarios and documented with the assumptions that drive them.
Comp sets are documented with selection rationale defensible to credit committee, B-piece buyer review, or rating agency desk review. Inclusion and exclusion judgments are explicit, not inferred.
PILLAR 03
Financial projections discipline.
Financial projections translate market analysis into a five-year forward pro forma stress-tested against the underwriting thresholds of every relevant capital source. Revenue build, operating expenses, NOI, capex reserves, and debt service are modeled at the line-item level. Every assumption traces to a market analysis reference or a documented industry benchmark from RMA Annual Statement Studies, IBISWorld, or asset-class-specific data sources.
Sensitivity testing is the differentiator between a template pro forma and a bankable one. DSCR is stress-tested at the specific threshold of every relevant capital source — 1.15x SBA, 1.25x agency multifamily, 1.30 to 1.50x life-co, 1.20 to 1.35x CMBS conduit, 1.176x HUD 221(d)(4) and 223(f). Debt yield is calculated and stress-tested at 8 to 10 percent for life-co and CMBS conduit, the post-2008 second filter B-piece buyers screen on. LTV stress-tested against capital-source-specific maximums.
Capital stack analysis covers senior debt, mezzanine or preferred equity if applicable, sponsor equity, and total cost of capital. The analysis surfaces the all-in rate, the cure-rights structure where mezz or pref is involved, and the refinance-risk profile for mini-perm or bridge structures.
Financial projection components
- Five-year forward pro forma
- Revenue, expense, NOI build at line-item level
- DSCR sensitivity at lender thresholds
- Debt yield (post-2008 second filter)
- LTV stress-testing
- Capital stack and total cost of capital
DATA INFRASTRUCTURE
The data subscriptions behind every engagement.
Every market analysis, comp set, and financial projection draws on licensed third-party data. Below is the active subscription stack.
CoStar
Office, retail, industrial, and multifamily comps; submarket vacancy and absorption.
STR (Smith Travel Research)
Hospitality competitive set, ADR, occupancy, RevPAR by chain scale and market.
IBISWorld
Industry economic analysis, growth rates, operating margins, sector-level demand drivers.
RMA Annual Statement Studies
Industry-specific operating ratios and financial benchmarks for SBA and conventional pro forma validation.
ESRI Business Analyst
Demographic catchment, traffic patterns, drive-time analysis, consumer-facing asset demand modeling.
Moody's Analytics
Macroeconomic forecasts, employment projections, regional economic data.
NCHMA
Multifamily and senior housing market study standards, rent comparable methodology, capture rate analysis.
Specialty data
Asset-class specific subscriptions for self-storage (Radius+ / Inside Self Storage), seniors housing (NIC MAP), and outdoor hospitality (Modern Campground).
INDEPENDENCE
Independence is structural, not aspirational.
We do not own, operate, manage, or hold equity in any property we evaluate. We do not accept referral fees from operators, brand-flag franchisors, or third-party vendors. We do not provide ongoing advisory services to operators of properties we have evaluated within the prior 24 months.
Where a potential conflict exists — prior engagement with a comparable-set property, prior work for a competing sponsor in the same submarket, family or business relationship with any party to the transaction — it is disclosed in the engagement letter before work begins. The sponsor and lender both retain the right to terminate the engagement at that disclosure with full retainer refund.
Errors and Omissions insurance is in place at industry-standard limits. Carrier and policy limits documented in the engagement letter. The conflict policy and E&O coverage together constitute the independence framework that lenders rely on.
Full conflict-of-interest policy and E&O carrier detail provided with engagement letter.
QUALITY CONTROL
Four-step quality review on every engagement.
No deliverable goes to a sponsor or lender without four review passes. The process is structural, not optional.
Lead analyst draft
Primary analyst completes market analysis, financial projections, and bankable framework sections. Internal data sources logged.
Senior review
Senior analyst reviews methodology, comp set selection, sensitivity assumptions, and regulatory citations. Methodology challenges resolved before sponsor draft.
Independent QC pass
A second senior reviewer not involved in primary analysis re-reviews comp set defensibility, financial model integrity, and citation accuracy. Catches issues that author bias misses.
Final certification
Lead analyst and senior reviewer both sign final deliverable. Certification page documents review chain, data subscriptions used, and independence representations.
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30-minute scoping call. Fixed-fee engagement letter within 24 hours. Methodology aligned to your specific lender mix.
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