Vernon Martin
Senior Member
- Joined
- Jun 8, 2005
- Professional Status
- Certified General Appraiser
- State
- California
A 360 unit condo complex in an overbuilt condo market has 72 remaining units operated as rentals by the developer. A Canadian investor is buying these 72 units.
I'm trying to figure out a sales comparison approach. The rental apartment properties in the neighborhood are older and don't have condo maps, so would understate the value. I can't just add the individual retail values of each unit, either, without applying some type of bulk sale discount, for which I have no data. I could try a DCF analysis assuming sales over some absorption period, but condo sales are so slow now, this forecast would be rather speculative.
With the weak condo market, I would think that there are other transactions like this going on, but where do I find such data?
Any suggestions? Thanks, everyone.
VM
I'm trying to figure out a sales comparison approach. The rental apartment properties in the neighborhood are older and don't have condo maps, so would understate the value. I can't just add the individual retail values of each unit, either, without applying some type of bulk sale discount, for which I have no data. I could try a DCF analysis assuming sales over some absorption period, but condo sales are so slow now, this forecast would be rather speculative.
With the weak condo market, I would think that there are other transactions like this going on, but where do I find such data?
Any suggestions? Thanks, everyone.
VM