How many grosses a brand new, 9 units apartment building in E. Hollywood would sell for?

The mix is 5 3bd + 2.5ba and 4 2bd + 2.5ba townhouse style.
In Selling Property - Asked by Edward R. - Aug 20, 2010
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Answer(s)

James S.
Corporate Investor
New York, NY

CRE wise you can use this simple equition, but realize that if you are looking for convetional terms it is done on a blended approach.
PGI X 10 x 10 = Income Approach Value. It is approximate but it will give you a sound idea. CRE is appriased by utilizing three different approaches, and then the appraiser will just call the value. Sales Approach or Price per Door, Income Approach factoring CAP Rates, and Replacement Approach for the cost to rebuild the asset.

Aug 21, 2010
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Joseph S.
Owner/Investor
Beverly Hills, CA

That’s a very good question that my clients ask me all the time. Since your building is new construction and not subject to rent control, where your rents are currently at versus the market rent plays a huge role because a new owner could raise rents if there is room for that. The GRM (gross rent multiplier) could significantly change whether your rents are below, above or at current market rents. I currently have 2 buildings in escrow in Hollywood and have sold about 15 in the neighborhood.

Sep 14, 2010
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