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Best way to value a shopping center in Rancho Cucamonga, Ca 22,000 sqft., 3 units, built in 1987. Two tenants

Building size 22,000. property type retail, community center, strip center, neighborhood center. Property use type Net lease Investment with 10+. Tenancy multiple, Lot Sz. 2.0. 3 Units
What do you think it should be the estimated value to sale?

GIL RODRIGUEZ

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Answers (2)
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Biz2Credit LLC
New York County, NY

Gil,

The best way is to do the income expense analysis of the building Calculate the total expenses as well as total income. Check what kind of lease it is , the lenght and any ecaltion clasuses. Also if there is an anchor tenant for the property.

You can check http://www.biz2credit.com/financial-calculators/financial-calculators/debt-to-income-calculator.html about the debt to income ratios and the way it can valued.

Jul 19, 2010
Kathryne Pusch
ConsultKAP Inc./Business Brokers Network
GA

Use IRV
NOI over Cap Rate X Value
Fill in NOI and divide by the cap rate to find the value.

Check with COMPS-- do a CMA

KAP

Jul 19, 2010