Compound works from the documents a commercial real estate buyer receives: the offering memorandum (OM), the leases and amendments, the rent roll, the monthly T12, the general ledger, the appraisal and the third-party reports. Every figure it extracts cites the lease page or report it came from, and the underwriting downloads as an Excel workbook with live formulas. The three worked examples below run one acquisition: Cedar Fork Commerce Park, an illustrative 248,400 square foot industrial park asked at $48.0 million, a 6.00% cap rate on the seller’s NOI.
Rent roll analysis and AI lease abstraction
Compound abstracts every lease and ties each row of the seller’s rent roll to its lease, the tenant’s estoppel and the T12. In the AI rent roll analysis, $109.3 thousand a year of base rent has no executed lease behind it, most of it an unsigned extension, which is about $1.8 million of the ask at the OM’s 6.00% cap rate.
Underwriting: the real estate pro forma in Excel
Compound builds the buyer’s pro forma from the OM, the leases, the T12, the appraisal and the property condition assessment, then rebuilds the lines the seller’s numbers get wrong. In the real estate pro forma example, in-place NOI is $2.55 million against the seller’s $2.88 million, a 5.32% cap rate on the ask; the ask returns 7.52% unlevered over ten years, and an 8.0% return needs a $46.4 million price.
Commercial real estate due diligence
Compound runs the diligence period as a log with an owner, a question for the seller and a due date on every open item, across the property condition assessment, the Phase I, title, survey, zoning and the estoppels. The commercial real estate due diligence example finds trailer stalls inside an easement and a storage yard that zoning can take away, and its 52-item log rolls up into 19 questions for the seller.
Why real estate investment firms use Compound
- Every number traces to the lease. Click a cited cell to open the lease page, estoppel or report it came from; a downloaded workbook keeps each citation as a cell note.
- The whole data room at once. Drop up to 15,000 files at once into a deal’s agent, and start a task per property or per lease that subagents run in parallel.
- Your firm’s model. Compound works in your firm’s underwriting and IC templates, keeps their layouts and formulas, and fills them for the new deal.
- One agent for the deal team. An associate starts the underwriting, a VP comments on a cell and the agent makes the change, and the partner opens the same model.
- Enterprise security. Compound is SOC 2 Type II, encrypts data with 256-bit AES at rest and in transit, and never trains on customer data.
