Investment committee guide
Commercial real estate investment committee memo template
An IC memo is a decision instrument. It should let a reviewer understand the recommendation, verify the numbers, locate the risks, and identify unresolved diligence without reverse-engineering the model.
Direct answer
Lead with the decision and its conditions. Then present the asset and basis, current operations, business plan, market evidence, financing, returns, sensitivities, risks, and remaining diligence. Cite material claims back to the model or source document.
The process
A repeatable way to do the work
- 01
State the recommendation
Name the requested decision, price or basis, key conditions, and the two or three reasons supporting it.
- 02
Explain the current property
Summarize the asset, location, tenancy, operations, physical condition, and historical performance using sourced facts.
- 03
Describe value creation
Connect each business-plan action to timing, cost, evidence, and its contribution to NOI or exit value.
- 04
Present capital and returns
Show sources and uses, debt terms, cash flows, key metrics, and sensitivity cases with consistent definitions.
- 05
Make uncertainty actionable
Rank risks and open diligence, assign owners, and state what result would change the recommendation.
Recommended IC memo outline
The memo should follow the order in which a decision is made, not the order in which documents arrived. Put the recommendation and key conditions first. Reviewers can then test that view against property facts, historical operations, the proposed business plan, financing, and downside.
- Decision requested, recommendation, proposed basis, and conditions.
- Property, location, ownership, tenancy, unit mix, and physical summary.
- Historical operations and bridge to the underwritten case.
- Market evidence, competitive position, and supply or demand risks.
- Business plan, capital program, timing, team, and execution dependencies.
- Sources and uses, debt terms, returns, sensitivities, and break-even points.
- Risks, mitigants, conflicts, open diligence, owner, and deadline.
Tie prose to the same numbers as the model
Memo drift is common: the workbook changes after the narrative is drafted, leaving purchase price, NOI, leverage, or returns inconsistent across artifacts. Build the summary table from controlled model outputs where possible, and perform a final cross-document check before circulation.
For material facts, include a concise citation: document name, date, page, table, or cell. For assumptions, name the basis and owner. A sentence like “rents are 12% below market” is incomplete without the rent cohort, market set, date, and treatment of concessions.
| Statement type | How to present it | Example support |
|---|---|---|
| Source fact | State without embellishment | Rent roll dated May 31 |
| Calculation | Show definition and period | T12 NOI bridge |
| Assumption | Name basis and scenario | Renewal trade-out based on signed leases |
| Open item | Assign owner and consequence | Insurance quote due before final IC |
Write risks as scenarios, not disclaimers
A long generic risk list does not help a committee price or manage uncertainty. Each material risk should identify the trigger, impact, early indicator, and available response. Link high-impact risks to a sensitivity or downside case so the committee sees how much economics depend on the uncertain variable.
End with explicit approval conditions and next actions. This turns the memo into a record of the decision and a diligence plan rather than a one-time presentation.
FAQ
Frequently asked questions
What should be in a real estate investment committee memo?
Include the decision requested, recommendation, property and market facts, historical operations, business plan, sources and uses, debt, returns, sensitivities, risks, and unresolved diligence with ownership.
How long should an IC memo be?
It should be as short as possible without hiding a material assumption or risk. Use a concise main memo with structured exhibits for detailed market, model, and diligence support.
How is an IC memo different from an offering memorandum?
An offering memorandum markets the opportunity on behalf of the seller or broker. An IC memo is the buyer's internal, evidence-tested recommendation and should not inherit seller claims without verification.
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