Sterling Flats: 31-unit multifamily sample, Jersey City, NJ

## Scheduled Rent & Loss-to-Lease The rent roll produces a scheduled rent of **$576,504 annually** ($48,042/month) across 31 occupied units. Against market rents, the portfolio carries a **loss-to-lease of $191,268/year**, equal to **24.91% of market**. That is not a rounding-error gap — it suggests either long-tenured tenants whose rents have compounded below market, rent-stabilized or banked-rent units, or a combination of both. The rent roll includes `banked_pct` and `banked_monthly` columns, which is consistent with New Jersey rent control applicability and warrants direct confirmation before underwriting any mark-to-market assumption. ## Rent Distribution In-place monthly rents range from **$799 to $2,434**, with a mean of **$1,549.74** and a median of **$1,618**. The mean sitting $68 below the median suggests a left skew — a subset of units pulling the average down materially. Those low-rent units (anchored near the $799 floor) are the most likely source of the $191,268 loss-to-lease concentration. Without unit-level market rents broken out, it is not possible to isolate exactly which units drive the gap, but the $1,635 spread between floor and ceiling is wide enough to suggest the bottom quartile of the rent distribution accounts for a disproportionate share. ## Tenure & Rollover — Data Gap All 31 lease-start and lease-end dates are unparseable, placing every unit in the `units_with_unparseable_move_in` bucket. As a result, the rollover schedule shows **zero units** in any forward window (0–3 months, 4–6 months, 7–12 months, 13+ months) and zero expired leases. This is a data integrity problem, not a reflection of actual lease status. The IC cannot determine which tenure band holds the loss-to-lease dollars — long-tenured tenants (3–10+ years) would be unlikely to turn voluntarily and would require lease expiration or vacancy to capture upside; recently moved-in tenants would already be near market and contribute little burn-off. Until legible lease dates are provided, any mark-to-market projection is speculative and should not be underwritten as near-term income. ## Flags Requiring Resolution Pre-Closing Three items need direct resolution: (1) confirm which, if any, units are subject to Jersey City rent control or state rent stabilization — the presence of `banked_pct` and `non_arms_length` columns is consistent with a regulated portfolio; (2) obtain parseable lease commencement and expiration dates for all 31 units so rollover timing can be modeled; (3) reconcile the $799 minimum rent unit(s) against market to determine whether below-market rents are contractual, regulatory, or a data error. Until these items are cleared, the $191,268 loss-to-lease should be treated as largely non-recoverable in the near term for underwriting purposes.