Question: Can you help me solve this problem. Thank you. ABC Residential Investors, LLP, is considering the purchase of a 120-unit apartment complex in Steel City.

Can you help me solve this problem. Thank you.
Can you help me solve this problem. Thank you. ABC Residential Investors,
LLP, is considering the purchase of a 120-unit apartment complex in Steel

ABC Residential Investors, LLP, is considering the purchase of a 120-unit apartment complex in Steel City. Pennsylvania. A market study of the area reveals that an average rental of $604 per month per unit could be realized in the appropriate market area. During the last six months, two very comparable apartment complexes have been sold in the same market area. The Oaks, a 140 -unit project, sold for $9 million. Its rental schedule indicates that the average rent per unit is $558 per month. Palms, a 90 -unit complex, is presently renting units at $658 per month, and its selling price was $6.6 million. The mix of number of bedrooms and size. of units for both complexes is very similar to that of the subject property, and both appear to have normal vacancy rates of about 10 percent annually. All rents are net as tenants pay all utilities and expenses. Required: a. Based on the data provided here, how would an appraiser establish an estimate of value? (Round intermediate calculations and final answers to the nearest dollar amount.) Q Answer is complete but not entirely correct. b. What other information would be desirable in reaching a conclusion about the probable value for the property? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double cilck the box with the question mark to empty the bok for a wrong answer.) Expense ratios Financing Expected trends in rents Property values Risk

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!