Matt, Home Buyer in 95051

What is GRM at current sales prices for 10 unit (plus or minus) apartment buildings in Mountain View area?

Asked by Matt, 95051 Thu Nov 18, 2010

I know this depends on a number of factors. I am just interested in knowing a realistic range given the market today versus where it has been in the past (at the peak).

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Answers

2
Matt,
Currently there are no 10+ unit apartment building listed on MLS. There are 2 on Loopnet.com which is a commercial real estate site. Unfortunately only have data for 2 is not really going to give you a lot of information on a range. You might do better looking at sold GRM's to get the info you are looking for.

Marcy Moyer
DRE 01191194
Web Reference: http://www.marcymoyer.com
0 votes Thank Flag Link Fri Nov 19, 2010
GRM (sales price/gross income) isn't typically used as a market indicator because the underlying data, primarily what is paid by the tenant versus what is paid by the owner, is different for every property. For example, in some complexes what is metered and billed by the utility company to each unit, in others it's metered at the building level and paid by the owner. Cap rates or cash-on-cash return provide a better view of profitability across a market. In general, prices for multi-family properties in Mountain View are down 10%-12% over the past year, depending upon the neighborhood. Rents are tracking along the same line, though in the better neighborhoods (primarily west of El Camino Real), demand is stronger and rents have not dipped as much.
0 votes Thank Flag Link Thu Nov 18, 2010
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