Implied Cap Rate = NOI/Value of Property
Implied Cap rate = $550,000/$12,222,222
Implied Cap Rate = 4.5%
QUESTION 11 If the value of a property is $12,222,222.00, and the NOI is $550,000.00, what...
An appraiser estimates that a property will produce NOI of $25,000 in perpetuity, yo is 11 percent, and the constant annual growth rate in NOI is 2.0 percent. What is the estimated property Value?
In real estate net operating income (NOI) from a property is often divided by the cap rate to determine value. If we have a cash inflow (NOI) of $350,000 in year 1 and a cap rate of 6%, what is this stream of cash flows worth? Assume the cash flow continues each year to infinity. $1,800,342 $3,107,864 $5,833,333 $6,994,826 $8,478,243 Please help urgently.
10 pts Question 6 Assume that the expected net operating income (NOI) on a property in year i is $250,000. If the annual rent increase (escalation) is 5.5%, what is expected NOI in year 6? $319,070 $326,740 $344,711 $368,526 $350,977
What is the present value of a property with next year's NOI of $100,000, which will grow at 3% per year and discounted at a rate of 8%? Use PV=FV/e^Tk
QUESTION 6 Assume a REIT has an annual NOI of $10OM. Net debt equals $700M. The company has 90M shares outstanding, If the stock trades at $6 per share, and the stock price is equal to the value of NAV per share, what is the implied cap rate? 8.07% 8.0% 8.7% 7.5%
Calculate the capitalization rate implied by a property which produces $183,500 in NOI being sold for $2,720,000.
QUESTION 29 What is the gross income multiplier? Property 1 Property 2 Property 3 Subject NOI 82,000 75,000 94,000 60,000 EGI 122,000 111,500 140,000 108,000 Selling Price 1,250,600 1,146,300 1,433,600 6.54 10.25 8.70 15.15
) A small office building in Hutchinson is expected to generate annual NOI of $120,000 in each of the next five years. It can be purchased at a going-in cap rate of 12 percent. If you purchase the property, you will expect to hold it for five years. Your required rate of return on this investment is 15 percent. Estimate the property’s reversion value (V5) and current market value (V0) under each of the following assumptions: a) The terminal cap...
(3) Fill in the sheet titled “NPV-IRR”. Ann will buy the property in 2014, she will collect NOI for 5 years 2015-2019, and she will sell it in 2019. Ann’s loan has a 5/4/3/2/1 prepayment penalty structure, so if she prepays in the first year, she will pay a penalty equal to 5% of the balance, in the second year she will pay a penalty equal to 4% of the balance etc. Ann forecasts NOI will grow at 2% per...
8. A property has Net Operating Income (NOI) of $130,000 and is offered for sale at $1,950,000. What Capitalization Rate did the seller use to price the property? Capitalization Rate: 130000/1950000=0.06667=6.67% 9. You have a Required Return of 7.66%. What would you offer for the property in the previous question?