ADVANCED MARQUIS, LLC Advanced Marquis LLC · Irvine, California
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ADVANCED MARQUIS, LLC — Irvine, California

Yield first. The building comes second.

Commercial real estate, evaluated before it is sold. We teach and underwrite through income, cash flow after debt, occupancy, and debt availability — in that order.

The figure we pin first

Net operating income, built from leases and expenses — not a seller’s pro forma.

NOI / CAP RATE / CASH FLOW

Occupancy checked Debt service modelled year by year Vacancy allowed for Capital reserves included

Investment approach

A real estate investment approach that starts with underwriting

Our investment approach is a sequence, not a slogan. We screen for location and income, underwrite the property with stated assumptions, test the debt, and examine risk before any conclusion. Each step can stop the next one. That is the point.

A property that fails on cash flow after debt does not become acceptable because the building is attractive. This page walks through the sequence in the order we actually use it, so you can see where a weak candidate leaves the process and why a stronger one takes longer.

How to read this page

  • Screening first lowers the cost of finding out a property does not belong.
  • Income comes before yield, and yield comes before cash flow after debt.
  • Debt and risk are tested before a conclusion, not added after one.
See how we screen properties Read current market insights

Screening

Screening comes before excitement

Screening asks whether a property belongs in the conversation at all. We look at submarket employment, occupancy and vacancy, property condition, and the quality of in-place income.

A building in a weak submarket needs exceptional income to compensate, and we rarely find that combination. A building with strong income but deferred maintenance needs a realistic capital plan.

Brief on purpose: weak candidates leave quickly, so stronger candidates get proper time.

Net operating income

Net operating income is the starting figure

Net operating income is the income a property produces before debt and depreciation, and it is the numerator in most cap rate calculations. We build it from actual leases and actual expenses, not from a seller’s pro forma. Vacancy allowance, management costs, taxes, insurance, and maintenance all belong in the figure.

If those costs are understated, the income is overstated, and every later calculation inherits the error. A conservative income figure makes the rest of the work more honest.

Cap rate

Cap rate in context

A cap rate translates net operating income into a yield on price, which allows comparison across property types. We compare cap rates only among properties with similar lease risk and similar capital needs, because the headline figure hides those differences.

A retail property with long leases and a multifamily property with annual renewals should not be judged by the same threshold. We also track how cap rates move with interest rates. The cap rate opens the discussion. It does not close it.

After the yield

Cash flow is judged after the lender is paid

A fair yield on paper can still leave an owner short. The two checks below are where that gap shows up.

Cash flow after debt service

Cash flow analysis after debt service

Cash flow after debt is what remains for equity after the lender is paid, and it is the figure that matters most to an owner. We model it year by year, including lease expirations, tenant improvements, and capital reserves.

A property can show a healthy cap rate and still produce thin cash flow if the loan is large or expensive. That mismatch is a common beginner mistake, and it is easy to avoid once you look at the right line. We require a margin that survives a vacancy without heroic assumptions.

Basis points / loan terms

Debt availability and the cost of borrowing

Lenders in 2026 are active, but they are selective, and selectivity is information. Debt availability varies by sector, with industrial and multifamily properties often receiving more receptive terms than older office space. We ask about loan-to-value, interest rate, amortization, prepayment terms, and covenants before we finalize any projection.

A rate quoted in basis points can look small, yet it compounds across a loan term. We also test refinancing risk, because a loan that matures before the holding period ends creates a second decision. Cheap debt on paper is not cheap if it forces a sale.

  • Loan-to-value
  • Amortization
  • Prepayment
  • Covenants
  • Refinancing date

Risk, tested in the open

Risk considerations we price in

Risk enters our approach as a list of named items, not as a general feeling of caution. Tenant concentration, lease rollover, local supply, insurance costs, property taxes, and deferred maintenance each get a line in the model.

We then ask how those items interact, since a vacancy during a rate rise is worse than either event alone. Flight to quality is one of the forces we watch, because tenants leaving older space can raise vacancy in buildings that looked stable. Naming risks early keeps them from appearing as surprises later.

Named, not felt

What gets its own line in the model

Tenant concentration

Lease rollover

Local supply

Insurance and taxes

Deferred maintenance

Interaction between risks

Slower growth / higher vacancy / higher exit cap rate

Sensitivity testing instead of single forecasts

A single forecast pretends we know the future, and we do not. We test the property under slower rent growth, higher vacancy, and a higher exit cap rate to see which assumption changes the outcome most.

If a small change in vacancy erases the return, the deal depends on optimism rather than income. If the property holds up across a range, the conclusion is stronger. Sensitivity testing also tells us where to spend due diligence time. The assumption that matters most deserves the most checking.

Test: rent growth slows Test: vacancy rises Test: exit cap rate rises

The clear no

When we walk away

We walk away when income is weak, when debt terms consume the cash flow, or when the exit depends on a market we cannot verify. Walking away is not failure. It is the process working, because capital that is not committed to a weak property remains available for a stronger one.

We also walk away when the seller’s information cannot be confirmed, since unverified figures are not a basis for a decision. A disciplined approach needs a clear no, and we use it.

Ask about a property Our Process
ADVANCED MARQUIS, LLC
15320 Barranca Parkway, Suite 100, Irvine, CA 92618
[email protected] · +1 (949) 513-6138
Monday to Friday, 9:00 AM to 6:00 PM
Screen location and income Underwrite with stated assumptions Test debt and risk Decide — including no