You are appraising a beautiful high-end apartment building known as the NAZIK BUNGALOWS which includes 50 luxurious units, with an average unit size of 1,100 SF, with a total of 75 on-site parking spaces. Parking in the area is scarce and premiums are given for buildings with parking, since most tenants in other buildings have to park on the street. The following rental survey was performed in December 2018 in which market vacancy was 3.5%. Today vacancy is 5.0% due to COVID-19. Monthly Rent $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 500 700 900 1,500 1,700 1,900 1,100 1,300 Unit Size According to an interview conducted today, with Evgeniya (on-site manager), laundry income is currently $10 per month per unit, other income is averaging $5,000 per month. In addition, today tenants pay for parking at $50 per space per month. Today, Fixed expenses (taxes and insurance are 20% of EGI, while variable expenses (utilities, repairs, management and reserves) are 18% of EGI. The following annual rent changes have been observed for this market, along with average capitalization rates in each of the past five years in the market. 2019: Rent Decrease 2.00% / Average market cap rate was 6.000% 2020: Rent Increase 2.00% / Average market cap rate was 6.125% 2021: No Rent Increase Due to Covid-19 Aftermath / Average market cap rate is 6.50% What is the Price/Unit of the property TODAY