Question
The subject property with an existing building generates NOI of $15,000 per year. The appraiser believes an overall (R o ) cap rate of 8.5%
The subject property with an existing building generates NOI of $15,000 per year. The appraiser believes an overall (Ro) cap rate of 8.5% is supportable for the valuation of the as-is improved property.
The value of the site as if vacant before demolition costs is $180,000.
- What is the as is value?
- What is the HBU if demolition costs are $5,000? ( AS IS OR AS IF VACANT)
- What is the demolition cost that would change the HBU outcome?
- Why might the building be considered an interim use?
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Finance And Strategy Inside China
Authors: Check-Teck Foo
1st Edition
9811328404,9811328412
