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How we evaluate deals

What type of deals do we invest in?

Airworthy Capital REI Fund invests in commercial self-storage and multi-family deal with veterans on the management teams. We look for various opportunities for equity and debt deals.

How do we evaluate deals?

Airworthy Capital utilizes a team of deal analysts to sift through deals. We generally only make offers on 1 out of every 100 deals. Our priority is to pick the best opportunities evaluating the following:

  • Property information - age, location, quality 

  • Capital Stack Risk - senior debt, mezzanine debt, preferred equity, sponsor equity & investor equity

  • Deal Structure Risk - hurdle rates, promote structure, GP fees and expenses

  • Debt Servicing Risk - Revenue, NOI, pro-forma, loan structure

  • Sponsor Experience - assets under managements, exited deals & exit performance

  • Other factors including operating agreement terms

Data we use to evaluate a deal

In order to properly assess a syndication deal, we require the following information from deal sponsors. Our risk assessment model generates its score based on the information provided by sponsors. If all information is not provided, the system will score your deal lower. The following information is required:

  • Complete view of equity stack

  • Property information

  • T-12 financials

  • Forward pro-forma with underlying spreadsheet / assumptions

  • Loan terms & any preferred equity terms

  • Construction timelines, details, assumptions

  • Partner firms - builders, property managers, architects

  • Sponsor Experience

  • Complete legal documents - PPM, LPA, OA's

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