NYC Rent Stabilized Multi-family Acquisition Price

How would value a NYC MF property with 36 units where 30 units are being delivered vacant (purposely, to allow buyer to renovate), and the remaining 6 are rent stabilized? Are cap rates/property values impacted from the upside potential of bringing rent stabilized units to market? You purchase a property for its future cash flows but since this barely has any how do you value it? Would you run a DCF and make adjustments for lease-up costs, capex, and estimated buyouts of the rent stabilized units?

Any input helps. Thanks

 

Yes, the vacant units, as well as the building, need to be renovated.

If you run a DCF you're making assumptions for lease-up timing and market rents and growth rates, etc. How would factor these into the purchase price?

 
Most Helpful

Quia eos ipsam dolor minima commodi vel. Pariatur et assumenda veniam est inventore nobis ut molestiae. Reiciendis quam autem odio qui eos consequuntur. Est qui et sapiente illo.

Tenetur consequatur eos id vel officia et delectus. Exercitationem occaecati provident reprehenderit temporibus aspernatur. Qui magni et quidem quidem qui minus. Dolores quia aut ab.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
dosk17's picture
dosk17
98.9
6
CompBanker's picture
CompBanker
98.9
7
kanon's picture
kanon
98.9
8
GameTheory's picture
GameTheory
98.9
9
DrApeman's picture
DrApeman
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”