Cubedup Street Underwriting · Acquisition screen
Facilities under USD 5M

Illustrative 18,000 NRSF facility, Southeast

Methodology: Cubedup Street Underwriting (CSU), price below USD 5M and under 40,000 NRSF. Contents: Summary, Financing, Risk register, Sources.

Broker NOI restated on the Cubedup operating cost card, property tax and insurance reset to the buyer's basis, and capitalized at a rate-adjusted market cap. Inputs shown are illustrative, not a live transaction; replace every field with the deal at hand.

1. Transaction Source tier noted per line

Property Asking price (T3) Net rentable SF Days on market Price reduction taken NOI basis Deferred capex, deducted from price

2. Net operating income Broker vs Cubedup basis, USD per year

Line	Tier	Broker	Cubedup	Variance

Cubedup basis: White Label management USD 1,000/mo (call center included), ad management USD 250/mo, bookkeeping USD 99/mo, CubedupOS USD 310/mo, card processing 2.89% of revenue, tenant protection retained 75% by owner. Revenue is the broker's T-4 annualized figure pending a two-source T-12.

3. Property tax and insurance reset

Tax treatment Effective rate on value, % Reset at % of price FEMA flood zone Flood premium, USD/yr

Pull the parcel's own bill from the county collector before asking the broker. Effective rate = assessment ratio x district millage; for example, a 15% commercial ratio at 100 mills gives 1.50%. Use the full-reset stress where the assessment lags the sale price.

4. Capital markets Refresh before every bid

Rates as of 5-yr Treasury, % 10-yr Treasury, % Bank spread over 5-yr, % Amortization, years Loan-to-value, % DSCR, x Market cap tier 10-yr at tier calibration, %

FRED DGS5, DGS10, DPRIME; SOFR per sofrrate.com. Tier caps from 2026 closed comps (median true closing cap 7.4%) are moved 50% of the subsequent change in the 10-year (Cubedup estimate, T4).

5. Scorecard Points awarded by the underwriter

Factor	Weight	Points

Bands: 75+ Pursue · 60-74 Pursue at price · 45-59 Wait · under 45 Pass. Any failed gate (oversupply without a written case, failed two-source revenue) is a pass regardless of points.

Recommendation

Pricing

Cubedup ceiling
Market-clearing price
Opening bid
Settlement range
Ceiling, full tax reset
Ceiling per NRSF
Ceiling as % of ask

Valuation range

Capitalization

Sensitivity Ceiling, USD 000s

Rows: Cubedup NOI change. Columns: market cap change in basis points. Shaded cell is the base case.

Risk register

Risk	Exposure	Status	Mitigant

Conditions and open items

Financing structures

Price to finance (blank = ceiling) Hold, years NOI growth, %/yr Exit cap over going-in, % Closing costs, % of price SOFR, % Prime, %

Seller note offered Down payment, % Note rate, % Note amortization, yrs (0 = IO) Balloon, years Buyer discount rate, %

Assumable loan Balance, USD Rate, % Remaining amortization, yrs Years to maturity Mezzanine on CMBS, combined LTV %

Financing flags and warnings

Lender terms are market conventions, October 2026 (T3/T4): bank 5-yr Treasury + 2.75%, 25-yr, 70% LTV, 1.25x; credit union + 2.50%; SBA 7(a) prime + 2.75% (cap prime + 3.00%), 25-yr, 90% LTV, FY2026 guaranty fee 3.5%/3.75% of the guaranteed portion; SBA 504 bank 50% + CDC 35% at 6.97% (Oct 8 2026 debenture sale), 15% equity; CMBS 10-yr + 2.25%, 30-yr, 65% LTV, 1.30x, 9% debt yield, 2 yrs IO; life company 10-yr + 1.75%, 60% LTV, 1.40x, 9.5% debt yield; bridge SOFR + 4.50%, interest-only, 75% LTV. Replace with a term sheet before any LOI. Seller paper is valued at the buyer's discount rate to give a cash-equivalent price.

Sources and evidence

Interest rates: Federal Reserve Bank of St. Louis (FRED) DGS5, DGS10, DPRIME; SOFR, Federal Reserve Bank of New York. T2, dated on the page.
SBA 7(a) fees: SBA FY2026 fee notice, effective 10/1/2025. SBA 504 rate: CDC debenture sale of 10/8/2026. T2.
Market cap tiers: Cubedup calibration on 2026 closed small-facility sales (true closing cap median 7.4%), moved 50% of the change in the 10-year since 6/30/2026. T4 method on T2 data.
Deal inputs: as entered; tier shown per line in the NOI table.

Change log for this version

Presentation only: monochrome research-publication styling, valuation range chart, risk register, sources, accessibility (skip link, live region). No input, formula or output value changed.
Formatting: ranges now written "USD 719K to USD 791K" instead of with a dash; missing values shown as "n/a".

Cubedup Street Underwriting. Decision support for acquisitions; not an appraisal, broker opinion of value or investment advice. Evidence tiers: T1 county record, recorded instrument, PMS or bank; T2 data service; T3 broker or seller; T4 Cubedup estimate. Calibration: 2026 CoStar closings; market price at 0.93 x ask landed within 5% on 6 of 7 actuals-based sales.