Cortland buys Evo (Arlington, VA) for $335M
Recent Cortland/Baupost deal. Saw this after seeing an OM for a similar property. How is this profitable? Wouldn't this be like a stabilized 2.75% YOC?
Another Cortland purchase
What kind of expense ratio are you using to solve for a 2.75% cap?
Based on a (334M purchase * .0275)/455 units would be 20k NOI per unit and if the asking rent is 3951/mo (47k/yr) per unit that would be an absurdly high expense ratio for brand new product. This was probably closer to a 3.5-3.75 stabilized. If the sale date was July 2022 the price was probably agreed to a bit before and the pricing was probably still near peak at the time.
*the 4.30 asking psf looks high based on the area
I cover mid-atlantic sort of and I've been seeing 45% expense ratios or around 33k rev per unit - 15k exp per unit from Class A high rises in WDC
How are you getting to that YOC number?
NOI / Purchase Price so thinking they're making around 9-10MM a year in NOI based on what I've seen but I could be wrong which is why I'm asking haha. Seems like a crazy price but maybe not
I don't see the NOI anywhere... am I missing something or are you backing into a number based on the $/sf rent?
Basing it off the NOI per unit for a similar property's OM that got sent to me yesterday and increasing based on the PSF spreads at the same expense ratio
Qui sint odio ex pariatur aut. Molestiae corporis nam eligendi. Odio omnis sit et cupiditate quis qui molestiae. Placeat quos sunt minima id velit est. Ut occaecati hic voluptatem sapiente eligendi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...