OfflineHi DG Family;
I need help in finding market values for commerical multifamily units. I am new to commerical contracts and just wondering if anyone out there has any experience in this type of realestate and would be willing to guide me. I have buyers I just need to determine a fair offer on a 38 unit condo conversion in Phoenix. Any help would be greatly appricated.
Thanks Donna
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You should contact DEAN sense your in his backyard, and he is the expert.
Jim
http://kendrickpropertymanagement.com/
http://rochesterapartmentrentals.com/?page_id=10
There are 3 main yardsticks for determining commercial values.....Cap rate, gross rent multiplier (GRM), and cash on cash return. Google "Phoenix gross rent multiplier" and that will get you started and you can ask more specific questions. As for the condo conversion, it may have different valuations based on if they are rentals to be held, or if they will be resold in today's market. So the valuation depends on your end buyer's investment plans. Another thing to consider is if the conversions are complete and all the units have occupancy certificates and all permits necessary from the city.
Thanks James, I will agree with you Dean is the very best:)
TRSD They are 100% occupied i will google, commerical seems to be more complex than my normal REO's or maybe it is just me.
Thank you for taking the time to comment on my post.
Sincerely,
Donna
They usually value commercial with the cap rate or GRM.
10cap is usually the ideal cap rate. You would have factor in alot more than in SFR. Email me Donna i will send you a copy on to calculate this.