17) VALUATION OF MULTIFAMILY REAL ESTATE RENT ROLL: Your Apartment Project: Units Avg. Rent Annual Rent 72 $ 1,025 $ 885,600 Comparable Sales Properties: Units Property Webster St. Farwell Ave. Prospect Ave. Comparable Sales: Avg Rent Market NOI Sales Price Weight/Similarity 64 $ 940 $ 410,966 $ 6,850,000 65% 108 $ 1,060 $ 840,634 $12,925,000 25% 32 $ 1,100 $ 263,608 $ 4,215,000 10% Construction: It costs approximately $220,000/unit to build new today. Assume the property is 50 years old and it has a 100-year useful life. Assumptions: Market management fee is 5% Market vacancy is 5% Reserves for a property this age is $250/unit/year Expenses for properties average $4,000/unit/year a. What is the value using the Sales Approach? 8 pts b. What is the value using the Income Approach? 8 pts 17) VALUATION OF MULTIFAMILY REAL ESTATE RENT ROLL: Your Apartment Project: Units Avg. Rent Annual Rent 72 $ 1,025 $ 885,600 Comparable Sales Properties: Units Property Webster St. Farwell Ave. Prospect Ave. Comparable Sales: Avg Rent Market NOI Sales Price Weight/Similarity 64 $ 940 $ 410,966 $ 6,850,000 65% 108 $ 1,060 $ 840,634 $12,925,000 25% 32 $ 1,100 $ 263,608 $ 4,215,000 10% Construction: It costs approximately $220,000/unit to build new today. Assume the property is 50 years old and it has a 100-year useful life. Assumptions: Market management fee is 5% Market vacancy is 5% Reserves for a property this age is $250/unit/year Expenses for properties average $4,000/unit/year a. What is the value using the Sales Approach? 8 pts b. What is the value using the Income Approach? 8 pts