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?
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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
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