1. Please complete the NOI and property value calculations using the assumption provided on the second worksheet. What is the total gross revenue for the urban property?

178,000

200,000

168,000

188,000

2. Please complete the NOI and property value calculations using the assumption provided on the second worksheet. What is the total expenses for the suburban property?

46,763

63,464

89,752

42,729

3. Please complete the NOI and property value calculations using the assumption provided on the second worksheet. What is the total NOI for the downtown property?

124,652

123,452

113,369

110,646

4. Please complete the NOI and property value calculations using the assumption provided on the second worksheet. What is the property value for the seaview property?

5,676,163

6,476,667

6,163,474

6,987,414

5. Please complete the sensitivity analysis using the variance given in the worksheet. What is the property value per sq ft for the seaview property if its gross monthly rent per sq is $4.00 and Cap rate is 1.50%?

2,430

1,790

1,450

2,380

Property/Name Average Unit Size (sq ft) Units (#) Gross Rents ($/fq ft/month) Cap Rate Rural 1000 5 2 0.04 Suburban 1000 5 2.5 0.038 Urban 1000 5 2.8 0.03 Downtown 1000 5 3 0.022 Seaview 1000 5 3.5 0.02 1 Property Tax Insurance (per unit) R&M - Int (per unit) R&M - Ext Allowance (Vacancy, other) 0.01 500 300 7500 0.02 Corporate Finance Institute. All rights reserved. Real Estate Model - Cap Rates and NOI $4.00 $4.25 $4.50 Assumptions Property/Name Average Unit Size (sq ft) Units (#) Gross Rents ($/sq ft/month) Cap Rate Sensitivity Analysis - Property Value ($/sq ft) - Seaview Cap Rate Gross Monthly Rent ($/sq ft) $3.00 $3.25 $3.50 $3.75 2.50% 2.25% 2.00% 1.75% NOI & Valuation 1.50% 1.25% 1.00% Property Value $ / SF Cap Rate vs Gross Monthly Rent NOI Calculation Rental Income $ / SF / Month $ / Unit / Month Total Gross Revenue Expenses: Property Tax Insurance (per unit) R&M - Int (per unit) R&M - Ext Allowance (Vacancy, other) Total Expenses $ / SF / Month $ / Unit / Month TOTAL NOI $ / Sq ft / Month $ / Unit / Month