AI: AA & CRE
A letter on AI
AI won't replace analysts. Analysts who use AI will replace those who don't.
The world of analytical tools is evolving rapidly. Since 2022, we’ve tested dozens of AI platforms and plug-ins, many unimpressive, some promising, and until recently, few transformative.
What’s clear is that the pace of AI improvement is accelerating. At Alkaline, we’re leaning in. We continue to experiment, build, and integrate AI tools that enhance the way we analyze real estate data and structure complex financial models. Recent advances in Excel automation and analytical workflows have been particularly impressive. Tasks that once took hours can now be completed in minutes.
But while generating outputs is becoming easier, verifying those outputs is becoming harder. As AI makes it simple to produce analyses, charts, and models, the demand for logic, transparency, and sound assumptions will only increase. That’s where experience still matters, and we remain committed to providing rigorous, transparent real estate analysis grounded in CRE fundamentals. Fast analysis is great... but without accuracy, it's useless.
We’re excited about what these tools enable, and we’re dedicated to building efficient, confidential, and elegant analytical solutions for our clients. The tools have changed, but the fundamentals remain the same.
- Spencer Correnti, Founder & CEO
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Sample Dashboard
Alkaline's Test Project
Investment Returns
Property & Partnership LevelAnnual Cash Flows
10-Year Hold PeriodCapital Structure
Sources, Uses & Project TimelineOperating Performance
Revenue, Expenses & Unit Mix| Unit Type | Units | % | Avg SF | Avg Rent |
|---|---|---|---|---|
| Studio 1 | 100 | 33.3% | 800 | $2,800 |
| Mix Two | 100 | 33.3% | 1,000 | $3,300 |
| Mix Three | 100 | 33.3% | 1,500 | $4,500 |
| Total / Avg | 300 | 100% | 1,100 | $3,533 |
Sensitivity Analysis
Levered IRR by Exit Cap & Sale Month| Exit Cap ↓ / Month → | 96 | 108 | 120 | 132 | 144 |
|---|---|---|---|---|---|
| 5.00% | 32.2% | 30.3% | 28.8% | 27.6% | 26.6% |
| 5.50% | 30.4% | 28.8% | 27.6% | 26.6% | 25.7% |
| 6.00% | 28.7% | 27.5% | 26.5% | 25.6% | 24.9% |
| 6.50% | 27.2% | 26.2% | 25.4% | 24.8% | 24.2% |
| 7.00% | 25.7% | 25.0% | 24.4% | 23.9% | 23.5% |
| Metric | Stabilization | Sale |
|---|---|---|
| NOI | $8.4M | $10.9M |
| Cap Rate | 5.50% | 6.00% |
| Value | $153.2M | $181.6M |
| YOC | 9.0% | 11.7% |
| Dev. Spread | 352 bps | 567 bps |
| Timeline | Month 29 | Month 120 |

