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- Introducing AI-Powered Deal Analysis from DeCyph.ai
Introducing AI-Powered Deal Analysis from DeCyph.ai
Case study #1
Hi all,
As many of you know, at DeCyph.ai we’re leveraging AI to independently analyze real estate deals—providing data-driven ratings and insights that LPs can use to make more informed investment decisions.
As part of our community, you’ll start receiving details of real investment opportunities, complete with deal scores, sponsor background, and a deep dive into the deal structure—highlighting potential issues that may not be clearly outlined in the PPM. We also include a comprehensive checklist extracted from the PPM to streamline your due diligence process.
Each opportunity comes with a summary on the first page and a detailed PDF analysis attached. The PDF includes an AI-generated deal overview, in-depth property-level insights, and a breakdown of how the deal could potentially outperform—or what challenges it may face. Our goal is to arm investors with the right questions to ask about the sponsor’s business plan.
Currently, over 75% of the analysis is AI-driven, with some human-assisted modeling. We’re on track to bring this to 95%+ automation in the coming weeks.
Let us know if you have any feedback—we’re excited to help you underwrite smarter, faster, and more independently. Also, we’d love for you to share it with friends or family who might want to join our community.
Now, presenting comprehensive analysis of The Life at Westland Estates, a 192-unit value-add multifamily opportunity in Fort Worth, TX—transitioning from LIHTC to market rate under BridgeGaps Real Estate:
🔍 Quick Deal Snapshot:
Purchase Price: $19.25M ($100K/unit)
Cap Rate (T3): 5.74%
Target IRR: 15.3% (Class B), 10% (Class A)
Occupancy: 90% (vs 85.7% market average)
Rent: $1.32/SF (vs $1.45/SF comps)
Repositioning Play: From LIHTC → Market Rate
✅ Why We Like It:
The operator has a proven track record and communicates effectively with investors.
Achievable business plan with demonstrated operator experience.
Operational efficiencies can reduce OpEx from 67% to approximately 50%.
Low in-place rents compared to comps ($1.32/SF vs up to $1.80/SF on the high end).
Former LIHTC conversion allows rent repositioning upon rebranding.
Recent rent trends at the property are very positive.
⚠️ What to Watch:
High submarket vacancy (~14%) from new supply may slow absorption.
Lower household income within 1-mile radius could affect leasing velocity.
Recent rent trends in the DFW market are negative year-over-year (-0.8%).
High fees: 70/30 equity split and 50/50 on a 13% IRR hurdle.
🧮 Scenario Analysis: Return Projections
Summary of projected returns under different operating scenarios:
Scenario | Avg Cash-on-Cash | IRR | Equity Multiple (EMx) | AAR |
|---|---|---|---|---|
Base Case (3% growth) | 8.0% | 13.1% | 1.7x | 14.9% |
Conservative (0% growth) | 7.6% | 8.7% | 1.5x | 9.0% |
Aggressive (5% growth) | 8.5% | 16.0% | 2.0x | 19.4% |
🧠 Want the full breakdown with charts, heatmaps, and lease expiration histograms?
Disclaimer: This report is an independent analysis by DeCyph.ai based on public data, third-party sources, and proprietary modeling. It is for informational purposes only and does not constitute investment advice or an offer to buy or sell securities; prospective investors should conduct their own due diligence and consult professional advisors.