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Use of Cap Rates for Transaction Pricing

February 6th, 2021
The capitalization rate or overall rate (OAR) is a fundamental metric used by investors, brokers, and lenders to determine transaction pricing (the price at which the deal gets done).  The cap rate is determined by dividing the NOI by the transaction price or projected value (cap rate =NOI/value).  Moreover, a property value can be determined by dividing the NOI by the cap rate (val ...

2652 Hastings Street East, Vancouver , BC

February 4th, 2021
Retail space available in the high-traffic pedestrian-friendly Hastings-Sunrise Village. Dynamic amenity-rich location with a 14,791 daily vehicular count (Vancouver.ca). Vibrant shopping district serving a population of 34,575 with an average family income of $112,000 (Vancouver.ca). Flexible C-2C zoning with future development potential. Ideal for an investor or owner user. Check out all o ...

The Real Estate System

February 4th, 2021
The Real Estate System is a tool that creates a general framework in which to understand the connections between the space market, the asset market and the development industry and how these connections affect the demand for commercial real estate. The space market is the driving force in forming the asset market and development industry since it is from the space market that the cash flow to ...

Positive and Negative Leverage

February 3rd, 2021
Positive and negative leverage.  “Real estate is nothing more than a positive spread investing game” (Sam Zell, Bergsman) Positive and negative leverage are two sides of the same coin, with positive leverage occurring when the investment property’s yield is higher than the mortgage which increases the investor return.  Conversely, negative lavage is exactly the opposite, where the loan amou ...

3305 West 8th Ave, Vancouver, BC

February 3rd, 2021
Premier south facing corner development lot in sought after Kits location one block from all the amenities along Broadway with direct transit to UBC and downtown. RT-7 zoning allows for two dwellings on site. Solid revenue property with rental income in place while you wait for development plans and permits. Bayview Elementary school and Kitsilano Secondary school catchment, and General Gordo ...

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