At the requested $97.9M proceeds, the deal fails every agency coverage test at once — not just DSCR:

Lender-case NOI comes in at $7.26M (haircut driven by the LA-CBSA 43% OpEx-ratio floor, since the platform carries only revenue actuals for this property — no expense detail — so the lender case grosses actual GPR/vacancy loss through the market benchmark, the conservative read absent a T12)1. Capitalized at the LA-metro multifamily cap rate of 5.19%2, that's a $139.8M lender value ($380K/unit)3 — so 70% of value is $97.9M, but the debt yield test caps supportable proceeds at $76.4M (54.6% LTV)4, a $21.5M gap5. Debt yield binds ahead of LTV because it's the more conservative constraint at this NOI level; LTV alone would still let $90.9M through.

Two more flags worth naming: NOI cushion to 1.00x DSCR is a thin 1.8%6 — almost no room before coverage breaks — and recovery at a 20% value decline is 83.9% of par7, under the 90% threshold. The maturity refi, by contrast, clears comfortably (+$19.5M gap under a +50bp rate/cap stress)8, because 10 years of amortization and 3%/yr NOI growth do a lot of work by then — Day 1 is the pinch point here, not the back end.

Counter-offer: $76.4M (54.6% LTV) is what the collateral supports today, debt-yield-bound. Getting to $97.9M requires either a materially higher basis (a real T12 showing lower actual OpEx than the 43% benchmark floor would help, since that floor is doing most of the haircutting) or accepting sub-agency terms (bridge/debt fund at a wider spread, or a cash-management/sweep structure a life co might accept below its usual floor). Sponsor financials weren't provided, which caps any verdict here at Approve with Structure pending guarantor review even before the proceeds gap is addressed.