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A real estate company is considering a new project consisting of an apartment building with 100 units. Each unit can be rented for $2,037/month. It
A real estate company is considering a new project consisting of an apartment building with 100 units. Each unit can be rented for $2,037/month. It is expected to have an average vacancy rate of 14%. Net operating expenses are budgeted as 23.8% of the projects gross annual income.
What would be the economic value of this project, using a cap rate of 9.5%?
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