How would you go about doing this? Can't use income approach. If using comp sales approach would you look for properties not only of the same type but in the same state? - which may be a tough bet. Seems replacement approach would be the way to go?
| +43 | What should we be buying? | 28 | 15h |
| +30 | Uncertain of what To Do Next | 5 | 3d |
| +28 | Capital Restricted Developer | 2 | 4d |
| +28 | Where are free agents signing? | 8 | 20h |
| +27 | Laughable Job Posting | 5 | 14h |
| +23 | Warning: J. Shaw Recruiters | 5 | 4d |
| +8 | Development Budget: use RENTABLE or GROSS BUILDABLE sf? | 3 | 17h |
| +6 | First-year REPE analyst comp check (London) | 1 | 5d |
| +4 | Vandy MSF or NYU MSRE | 4 | 3d |
| +4 | Shops with largest intern classes | 5 | 3d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
My firm purchased a vacant building within the last 6 months. Can't value using a Cap rate but still able to look at the deal from a DCF/IRR basis in addition to $PSF compared to both comp sales and replacement costs.
Essentially, if your projections will still allow you to gain an attractive return the deal is worth doing.
Lease up and capex/carry assumptions to stabilization. Terminal cap and discount back.
Mollitia quia qui explicabo dolorem. Debitis earum ut tenetur. Ad rerum soluta libero et iste cupiditate.
Labore minima autem dolores voluptas et. Voluptas est nisi corrupti nihil sed similique. Odit qui laudantium iusto mollitia odit. Ullam earum minima ullam omnis officiis distinctio. Ut sint incidunt nemo delectus saepe.
Et est blanditiis molestias. Aut id iste cum alias. Laudantium adipisci tempore maxime. Beatae odit et culpa est pariatur aut.
Quis quae quo veniam pariatur velit totam similique. Qui repellat et et quod nostrum officia. Aut est autem voluptates vitae quo.
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...