Using the data below, your task is to negotiate the purchase price of the Target property with another team. All comps are within a 2 mile radius of the Target Property and represent transactions that occurred within the last six months (ignore possible impact of pandemic). All properties have comparable off-street parking per unit and amenities. None have been substantially renovated since construction. None are subject to rent control. Assume the property tax rate is 1.25%. The negotiation will be done on a Team basis, using the teams you previously signed up for on the Google Sheet. On the Google Sheet where you formed the teams, the team pairings and your team's role (seller or buyer) will be posted. Your team will need to do whatever prep work you deem necessary and then initiate the negotiation with the opposing team. Besides Cap Rate, other metrics that RE investors often consider include: Price/SF, Rent/SF, Price/Unit, Gross Rent Multiplier. Out of respect for everyone's time, there is a 45-minute time limit to complete the negotiation. When you have concluded the negotiation, one representative from each side should complete the Google Form ( which will ask the final transaction price.

 

Comps	A	B	C	D	E	F		Target
Zip Code	90064	90034	90034	90232	90034	90232		90034
Year Built	2004	1980	1974	1972	1982	1992		1998
Total Units	8	24	16	8	8	10		8
Num of 1Br/1Ba	6	24	16	6	-	6		6
Avg Rent 1Br/1Ba	1,600	1,500	1,300	1,325	1,450	1,400		1,350
Num of 2Br/2Ba	2	-	-	2	8	4		2
Avg Rent 2Br/2Ba	2,200	-	-	1,700	1,800	1,900		2,000
Total Rentable Sq/Ft	8,100	21,600	12,800	7,250	9,600	9,750		7,400
LTM Oper Exp (Ex Taxes)	27,800	73,500	40,700	23,200	28,600	31,200		23,232
Recent Sale Price	2,550,000	6,240,000	3,580,000	1,890,000	2,510,000	2,730,000