The Math the Broker Is Pitching
The verified close numbers are a 5.9% cap and a 10.82 GRM on $488,139 NOI. Implied gross annual revenue is $764,787, which at 33 units works out to $1,931/month average in-place rent. I think the buyer can slowly get these rents up by 20% and if rates go down, this will be worth over 10M.
| Scenario | Avg Rent/Mo | Gross Annual | NOI (est. 36% exp.) | Value at 5.9% cap |
|---|---|---|---|---|
| In-Place (current) | $1,931 | $764,787 | $488,139 | $8,273,543 |
| Submarket Market Rent | $2,084 | $825,264 | $527,169 | $8,935,915 |
| Subject Market Rent | $2,286 | $905,292 | $579,387 | $9,820,119 |
What an Operator Sees
I like this deal. The buyer paid $238/SF, got close to a 6% cap, has meaningful rent upside, and owns a quality apartment building in one of my favorite Valley submarkets.
Send OMs to David@AtlasBrief.La