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[{"id": "hasww0z", "text": "1000 sqft for 1.5 M? Terrible investment unless you're printing cash at that business.\n\nPlaces where the average square footage is some of the highest in the country. \n\nYou're not really buying the cap rate because it would take an eternity to pay back what you owe at that rate. \n\nIt is simply so you can over time (decades and decades) build full equity when it would hypothetically be worth more.", "replies": [{"id": "hatz7av", "text": "i doubt they are printing cash, they are probably laundering the cash.", "replies": [{"id": "hau01nj", "text": "Terrible pun\ud83d\ude02", "replies": [], "depth": 3}], "depth": 2}, {"id": "hau7ym4", "text": "&gt;You're not really buying the cap rate because it would take an eternity to pay back what you owe at that rate.\n\nYes you are buying the cap rate.  That NOI is selling for $50 per dollar.  If you have just a dollar step up in rent and can increase NOI by $12,000 a year you just increased your value $600,000!  Not bad for a hands off investment.", "replies": [{"id": "hauiep9", "text": "What are you talking about? Did you miss a zero? The space is 1,000 sq fr - for 1.5M that\u2019s almost $1500 a square foot. That\u2019s fucking INSANE.\nAt 2% cap rate - 1,500,000/50 gives you $30,000 a year in rent.\nSure you could bump up the rent schedule but the numbers at the moment make no sense.", "replies": [{"id": "hauwm19", "text": "That is $30,000 in NOI.   Value =NOI/cap rate.   $1,500,000=$30,000/2%\n\nNope, I have the math correct.  You must live in flyover.  My condo that I bought at $1.000 sf 10 years ago is now $2,000 sf.  If you consider my leverage that is about eleventy billion return.", "replies": [{"id": "hav3dvy", "text": "Just correcting your math - Cap rate = NOI/Value.\n\nYou're either in NY/SF or just insane. I'm in a major northeast city &amp; nothing even comes CLOSE to that amount per square foot. I don't even look at a deal unless its a 7.5 cap or higher. Not speaking from lack of experience I've done 10M+ in deals this year alone.\n\nWhat you're suggesting this dude to do is NOT correct. Even without interest, it would take this dude 50 years to pay off the total cost of the condo.", "replies": [{"id": "hav5iyl", "text": "Why are you TRYING to solve for cap rate?   Cap rates come from an income approach to value called direct capitalization.  The formula is V=i/r.  The formula you gave is for analyzed closed sales.  Once you pay your money the cap rate to the buyer or seller is pretty much meaningless.\n\nHey , I can sell to you at 7.5% cap rate ALL DAY LONG!  Ya gots any money?  I buy in 10% cap rate markets for $10 per dollar of NOI and since you think cap rates measure time I sell to you at 7.5%  Or $13.51 for each dollar of NOI  Shoot, on just a $50,000 NOI I profit from you out of $175,500!  You will be a small boost to my empire.  Like taking candy from a baby or \"deals\" from a novice!  LOL", "replies": [{"id": "hav8y9x", "text": "Im just gonna go back to my original statement saying the deal OP was looking at was a bad deal. \nThat second paragraph definitely made me laugh though.", "replies": [{"id": "hav9vru", "text": "I don't know how you can say that based on what information is provided.  If similar properties are selling at 2% then people with money are making the decision that it is fair market value and that they can make a return based on that price.  Despite your inexperience, all a cap rate tells you is what the market is paying for NOI.  They could be right or they could be wrong.  Your statement seems to be based on your lack of experience and knowledge and of commercial valuation and your immaturity.  \n\nI offered you the 7.5% cap rate that you reuested.  Seems you don't know what you want or are not able to complete a \"deal\".", "replies": [{"id": "havh319", "text": "You sound like a fun guy.", "replies": [{"id": "havkwlq", "text": "Thanks, I am.  I thought you were getting annoyed because I corrected everything you said.  I appreciate that you had the good sense to delete your attacking and name calling posts.  \n\nReal estate is fun!  Don't let it get to you when someone more experienced corrects you.  It is all about sharing knowledge.", "replies": [{"id": "havmrp4", "text": "Yeeeesh you\u2019re pathetic\ud83d\ude02\ud83d\ude02\nYou wouldn\u2019t know a good deal walked across your rented desk. \nIt\u2019s okay HonoBob, we\u2019ve all been at the bottom at some point.", "replies": [{"id": "havn9i2", "text": "Oops!  Yer mean streak is back.  Go back and review.  It is you calling this a bad deal yet you cannot articulate why even when I directly asked you.  That is the sign of a novice or a scammer.", "replies": [{"id": "havnwxr", "text": "If you can\u2019t understand why this is a bad deal at 1.5M for a property bringing in only 30k a year you are truly lost. I say that being at a big 4 firm. If you want I could hook you up with an internship?\n\nEdit: now I see you\u2019re from Hawaii, where some of the most inflated prices of the country exist. You\u2019re a joke \ud83d\ude02\ud83d\ude02", "replies": [{"id": "havvqmi", "text": "It is you that can't articulate why this is a bad deal.  I am smart enough to say you can't tell if is a good or bad deal.  I did show the math that showed each dollar of NOI is worth $50 but in the markets you invest you will only get $13.33.  You must work for minimum wage if that kind of value increase excites you.\n\nGeez, you can't even answer why you are trying to solve for cap rate!!\n\nNow you are an expert on Hawaii real estate and boldly state the prices are highly inflated.  You country boys get so jealous that you can't participate in the big boy markets.", "replies": [{"id": "havw9pk", "text": "Wait don\u2019t you have a wave to catch somewhere with a can of spam one hand and a coconut in the other? Ohana my brudda, I\u2019ll bet your banana leaf thatched roof has a mighty fine cap rate \ud83d\udc80", "replies": [{"id": "havwxzh", "text": "Brah, don't be dissing my $2,000 sf ocean front Gold Coast condo.  Makes you sound immature.", "replies": [{"id": "hawznpi", "text": "See - my warehouses, self storage parks, office plazas &amp; MF complexes may not be $1,000/sqft but they sure as shit blow the shit outta your banana hut\ud83d\ude02", "replies": [{"id": "hax1rfw", "text": "You live in a warehouse?  Good that you got out of Mom's basement.", "replies": [{"id": "hax2eqk", "text": "Your claim to knowledge and wealth is an office condo, mine is a portfolio that churns cash better than your mom on the corner \ud83d\ude02 \nWe are not the same banana hut boy.", "replies": [{"id": "hax45l5", "text": "Why are you fixated on a banana?  Should spend some time educating yourself on some basic real estate concepts so you can participate here instead of resorting to childish babbling.", "replies": [{"id": "hax4wfg", "text": "Terrible comeback banana boy, no one wants to study your banana hut real estate concepts (aka how to harvest &amp; give valuation to said bananas) Back to the banana hut with you.", "replies": [], "depth": 21}], "depth": 20}], "depth": 19}], "depth": 18}], "depth": 17}], "depth": 16}], "depth": 15}], "depth": 14}], "depth": 13}], "depth": 12}], "depth": 11}], "depth": 10}], "depth": 9}], "depth": 8}], "depth": 7}, {"id": "hb77q8t", "text": "Late to the party, just wanted to say you're wrong in the sense that you are confusing going-in cap rates with the stabilized cap rate used in a direct cap method.  Also talking about year 2, year 3 cap rates is absolutely something investment professionals do in CRE.  You're so wrong on that, and you're trying to be condescending with it.  It just makes you look stupid.\n\nOn the other hand, I'm not shocked at $1,000 price per pound (that's another term CRE people use) for a city like Toronto, but there's clearly not enough info on the deal to pass judgment one way or another since it sounds like they only gave a going-in cap rate and zoning that implies it's not the highest and best use, so you were right that there's not enough info.", "replies": [{"id": "hb7x8bs", "text": "Oh Geez, I do appreciate you coming into the conversation but I am 100% correct on all fronts.  \"Going in\"  cap rate?  There is no such thing. \n\n1.   Where would you get it?  \n2.   What would it tell you?  \n\nAt the risk of sounding condescending but 100% factual I will correct you in that you are confusing \"going in\" NOI with the the imaginary \"going in\" cap rate.  I'm sorry but you guys have either been on scammer websites like biggetpockets or paid a fortune to a crappy guru and when you hear factual information you fight the person that is trying to help you be a better investor and not look like a fool that can be taken advantage of.\n\nSee if you can explain answers to my questions above as if you were talking to someone that really wanted to understand.  I say you will not be able to.  Will you stay with me until you can either explain yourself or accept the explanation that makes sense?", "replies": [{"id": "hb7z7y9", "text": "Sorry, I think I'm starting to understand.  A lot of people on this forum, like me, have institutional investment experience.  For example, I've probably sold \\~$200MM of CRE, acquired about \\~$150MM, and recapped about $900MM of CRE for my firm2021 YTD.  I guess some slang used in institutional CRE isn't used with mom and pop investors which it sounds like you are, that's probably where the disconnect is.\n\nFirst of all, a cap rate is short for \"Capitalization Rate\".  This is a metric the Net Operation Income divided by the Valuation/Purchase Price.  There are plenty of uses, the most important of which is probably determining an \"exit cap rate\" for someone's discounted cash flow analysis.\n\n(1) A \"going-in cap rate\" is slang for the Year 1 Pro-forma (assuming usage of a discounted cash flow analysis) Net Operating Income divided by the Purchase Price.\n\n(2) It tells you how much Net Operating Income you are expecting in the first year based on the Purchase Price.  Sophisticated investors understand that your pro-forma doesn't always magically turn into reality. This tells you one number that acts a simple litmus test for the deal.  Like any good investor, you look at the whole underwriting, rents, assumptions, etc.  Usually if a deal is at market, it is an important data point when evaluating sale comparisons.  There's a lot of uses, but like any metric, including UIRR, LIRR, Avg. Cash-on-Cash, etc as well as tightening up expenses, etc.  It's part of the package of things we look at. \n\n&amp;#x200B;\n\n Good day!", "replies": [{"id": "hb80sj7", "text": "&gt;(1) A \"going-in cap rate\" is slang for the Year 1 Pro-forma (assuming usage of a discounted cash flow analysis) Net Operating Income divided by the **Purchase Price.**\n\nExactly where is this Purchase Price coming from?   Isn't that the goal of direct cap, short for capitalization (said in a slower/ lower voice)?", "replies": [{"id": "hb849xl", "text": "&gt;Exactly where is this Purchase Price coming from?   Isn't that the goal of direct cap, short for capitalization (said in a slower/ lower voice)?\n\nThe goal of a direct cap is to spit out a quick value.  A point of data and information.    The purchase price comes from any number both the seller and buyer are willing to agree on for the deal.  That's economics 101.  There are so many factors and considerations that go into a real estate deal besides one metric, but you're so fixated on it", "replies": [], "depth": 11}], "depth": 10}, {"id": "hb813h8", "text": "&gt;  Usually if a deal is at market, it is an important data point when evaluating sale comparisons\n\nHow does this \"evaluating\" of sales comparisons work using cap rates?", "replies": [], "depth": 10}, {"id": "hb81qvu", "text": "&gt;Sorry, I think I'm starting to understand.  A lot of people on this forum, like me, have institutional investment experience.  For example, I've probably sold \\~$200MM of CRE, acquired about \\~$150MM, and recapped about $900MM of CRE for my firm2021 YTD\n\nI think the disconnect is that my experience is in the billions and that I testify as an expert witness on valuation matters so I don't use a lot of slang in legal proceedings.  \n\nFrom your post it seems that you are calling this \"going in\" cap rate basically the same as cap rate.  Why are you calling it \"going in\"?", "replies": [{"id": "hb852o7", "text": "1. I gave you my 2021 YTD experience, my experience is also in the billions.\n2. If you are an expert witness, it means you weren't directly involved in the deals.  You're an appraiser.  I am discussing how the business itself is done.\n\nGood day!", "replies": [{"id": "hb8vh2x", "text": "&gt;If you are an expert witness, it means you weren't directly involved in the deals.  You're an appraiser.\n\nCanada won't allow you to be both?  In America some of the best investors are appraisers.  Too many investors fail because they jump to \"return\" metrics before they determine value.  Geez, what a typical mistake.  Believe me, sitting with ownership of billion dollar properties helps me immensely in my personal investing.", "replies": [], "depth": 12}], "depth": 11}], "depth": 10}, {"id": "hb8cp30", "text": "&gt;(1) A \"going-in cap rate\" is slang for the Year 1 Pro-forma (assuming usage of a discounted cash flow analysis) Net Operating Income divided by the Purchase Price.\n\n1.  Wher are you getting this purchase price?\n2. Why do you have to assume dcf?", "replies": [], "depth": 10}, {"id": "hb8j0cp", "text": "You stated, **\"The goal of a direct cap is to spit out a quick value. A point of data and information. The purchase price comes from any number both the seller and buyer are willing to agree on for the deal. That's economics 101. There are so many factors and considerations that go into a real estate deal besides one metric, but you're so fixated on it\"**\n\n&amp;#x200B;\n\nThe formula is V=i/r   I asked you how direct capitalization was used.  If you have the \"purchase price\" why waste time trying to calculate a cap rate?", "replies": [], "depth": 10}, {"id": "hb8y7ln", "text": "&gt;(2) It tells you how much Net Operating Income you are expecting in the first year based on the Purchase Price.\n\nNOPE, there is a calculation to get the NOI.  Once you calculate that the Cap Rate tells you what you will pay for that NOI.  In a 10 cap market you will pay $10 and in a 5 cap $20.  That is all that cap rate tells you.  It is not a method of calculating NOI.", "replies": [], "depth": 10}], "depth": 9}], "depth": 8}, {"id": "hb8ffgt", "text": "My first reply to you, **\"Will you stay with me until you can either explain yourself or accept the explanation that makes sense?\"**\n\n&amp;#x200B;\n\nThen I went down to the beach and had my coffee and within an hour you scrub several of your posts and slink off into the sunset!  You are just wasting people's time.", "replies": [], "depth": 8}], "depth": 7}], "depth": 6}, {"id": "hav84qp", "text": "&gt;Why are you TRYING to solve for cap rate?   Cap rates come from an income approach to value called direct capitalization.  The formula is V=i/r.  The formula you gave is for analyzed closed sales.  Once you pay your money the cap rate to the buyer or seller is pretty much meaningless.  \n&gt;  \n&gt;Hey , I can sell to you at 7.5% cap rate ALL DAY LONG!  Ya gots any money?  I buy in 10% cap rate markets for $10 per dollar of NOI and since you think cap rates measure time I sell to you at 7.5%  Or $13.51 for each dollar of NOI  Shoot, on just a $50,000 NOI I profit from you out of $175,500!  You will be a small boost to my empire.  Like taking candy from a baby or \"deals\" from a novice!  LOL", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hasx3lw", "text": "Someone else will come along and pay more, or there is no alternative, or fomo or money laundering. Same thing with the stock market, I have no idea why they should be at all time highs", "replies": [], "depth": 1}, {"id": "hasz9pj", "text": "Capital preservation/inflation hedge is one reason investors accept very low cap rates. \n\nThe other, more likely reason is that the laundry isn\u2019t the best and highest use and the current owner knows that. In this case, it may have been over paid for because it was the last parcel need to combine. There a pretty famous story about when the Time-Warner building was being developed at Columbus Circle NYC. One owner held out against all offers until the very end. He ended up getting ~$30MM for a property that would have been worth $1MM under normal circumstances.", "replies": [], "depth": 1}, {"id": "hat43b3", "text": "Tax deferral and inflation, most likely.", "replies": [{"id": "havj4zp", "text": "Pay more for tax deferral?\n\nCan you explain this?", "replies": [{"id": "havupue", "text": "Maybe the buyer sold a property recently and needed to 1031 exchange into a new property and thought it was a stable option. Or the Canadian 1031 equivalent if there is one.", "replies": [{"id": "havx4h7", "text": "There is not.", "replies": [], "depth": 4}], "depth": 3}, {"id": "hayhyda", "text": "Oftentimes the buyers with the highest offers are those with a time limit and (what they perceive to be) expiring excess funds at their disposal due to tax deferred exchange policy.", "replies": [{"id": "hayljsv", "text": "Interesting. \n\nApparently this is not a thing in Canada?\n\nGoing from a 3% Cap to a 2% Cap is a 50% increase in price\n\nThe Cap rates for Urban Street Front in Toronto are between 3.75 and 4.5 according to a recent CBRE Canadian Cap Rates Report.\n\nI'm going to just put out there that the building has immediate redevelopment potential and can't be priced on the Cap rate of the existing tenancy.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hat4opc", "text": "Why not buy RH stick which returned 800% in one year. At that rate it\u2019ll take 400 years to achieve that performance!?", "replies": [], "depth": 1}, {"id": "hat83m1", "text": "Oh I have been watching cap rates tumble in the GTA for years now. It seems to me that people are betting on / speculating on capital growth. But I\u2019d also like to know what the deal is here?", "replies": [], "depth": 1}, {"id": "hataxv3", "text": "\nCap rates are a representation of risk. \nIn a lot of ways Toronto real estate is a safe bet on demand outstripping supply and driving rents and prices up over time.  Municipal bureacracies  cause huge bottlenecks on development of adequate supply and there will always be demand. \n\nAlso I'm sure C1 zoning has more potential than you give it, even when not consolidated with other lots. Yes there's a laundry there now -  but what could be there in 10 years? Could be a high end restaurant or trendy retail shop paying double the current rent.", "replies": [], "depth": 1}, {"id": "hatklzz", "text": "Either capital preservation or money laundering.  There's not that many all-cash businesses left in the world.", "replies": [], "depth": 1}, {"id": "hatlgpy", "text": "Tax shelter + appreciation. Especially in this market you could lease up to a 5-6 cap in a year or less even.", "replies": [{"id": "hauxqso", "text": "An increase in cap rate decreases your value.  You do not want to go from a 2 cap to a 5-6 cap!  At 2% your almost $30,000 NOI is worth about $1,500,000.  At a 5 cap you lose almost $900,000!   You would have to increase NOI from $30,000 to $75,000 JUST TO BREAK EVEN.", "replies": [{"id": "hauybrk", "text": "I think I just got dumber reading this", "replies": [{"id": "hav0gyi", "text": "Is that even possible?", "replies": [], "depth": 4}, {"id": "havv5q1", "text": "Surprising that so many people on a commercial real estate forum don't know that the higher the cap rate the lower the value.  The formula is V=i/r   $1,500,000=**$30,000**/2%    $1,500,000=**$75,000**/5%", "replies": [{"id": "havxtb5", "text": "Please keep focusing on the algebra", "replies": [{"id": "havynyp", "text": "So you don't understand that direct capitalization uses a formula to get a value?  See, there's your problem.", "replies": [{"id": "havz74h", "text": "Listen man I don't know why you're angry. But if you buy at a 2 cap and increase your NOI 3% relative to your purchase price you now own it at a 5 cap against the price you paid. Take your shit attitude somewhere else and learn to admit when you're wrong. \n\nI bet your parents change the subject when their friends ask about you.", "replies": [{"id": "havzucr", "text": "&gt; But if you buy at a 2 cap and increase your NOI 3% relative to your purchase price you now own it at a 5 cap against the price you paid.\n\nOh, you really are clueless.  Cap rates do not come from the NOI you get in 2021 against the price you paid in 1990!!!   That is pretty funny that you think that is correct.  \n\nSo the formula is cap rate=2021 NOI/1990 purchase price \n\nSeriously....this is too funny", "replies": [{"id": "haw0iap", "text": "I think you need to go back and read my initial comment..", "replies": [{"id": "haw10ej", "text": "&gt; Especially in this market you could lease up to a 5-6 cap in a year or less even.\n\nWhere am I wrong?  This was your statement.  Please explain how you are buying at a 2% cap rate and \"lease up to a 5-6 cap\".", "replies": [{"id": "haw4ity", "text": "Dude you\u2019re just wrong here. He\u2019s saying a 5 cap on your cost basis i.e. the purchase price, not that the property would then be sold or valued at a 5 cap.\n\nIf I buy at a 3 cap, let\u2019s say $100 for a property with $3 of NOI, and get rents up to generate $5 NOI, it\u2019s now operating at a 5 cap RELATIVE TO WHAT I PAID, or in other words generating a 5% ROI.\n\nThat doesn\u2019t mean I then sell it at a 5 cap, it just means I\u2019ve created value. If the market is still valuing the property at a 3 cap, then I can sell this property at a 3 cap at $5 NOI and cash in on that value.\n\nThis is common use of terminology in the industry. You\u2019re stuck in a textbook. Get your head out of your ass you sound like an idiot.", "replies": [{"id": "haw6d4e", "text": "Yeah, NO!  Show me a cap rate reporting company that reports cap rates calculated on todays NOI vs 10 year ago values!\n\nWhat ever you are calculating is not a cap rate and really has no value.  A cap rate is valued because it tells market participants what investors have paid for NOI in the past quarter.  That is the forking value of having third party professional companies doing the calculation.  They tell you that investors HAVE paid $10 for each possible dollar of NOI.  As a seller I am going to show you the cap rate comps and tell you to pay me $10.  If you are a great negotiator or it is obvious that the market is slowing you may convince me to sell to you for only $9,50!\n\nYour silly calculation that you are calling a cap rate is laughable in the industry,\n\nCap rate = todays NOI/ sometime in history's market value.  That is just insane.", "replies": [{"id": "hax7pl6", "text": "Lol yea you\u2019re right that\u2019s why your development yield is always referred to as \u201cbuilding to an X cap\u201d even though it\u2019s NOI/total development costs.\n\nYou\u2019re right, the calculation I\u2019m referring to is TECHNICALLY the ROI, but I\u2019m saying that in industry jargon people will say this.\n\nDo you actually work in the industry? Because I\u2019m guessing you don\u2019t.", "replies": [{"id": "hax8hqg", "text": "I am an investor.  I do not work in the industry but used to participate as an expert witness for valuations.", "replies": [], "depth": 14}, {"id": "haygz2c", "text": "Banana boy honoBob has zero knowledge but likes to yell on reddit a lot.", "replies": [], "depth": 14}], "depth": 13}], "depth": 12}, {"id": "haxc2c0", "text": "Lol thank you", "replies": [], "depth": 12}], "depth": 11}], "depth": 10}], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}, {"id": "havyreq", "text": "Is that mathematically possible?", "replies": [{"id": "hbe79z2", "text": "Hey look, it\u2019s u/Honobob! Better known as \u201cthat guy that has a stroke each time cap rate is misdefined!\u201d Great to see you back here.", "replies": [{"id": "hbf8dhp", "text": "Mahalo!  **Know the law cause the law knows you!**  Cap rate Cop!", "replies": [], "depth": 6}, {"id": "hbfbrbz", "text": "Alooooooooooha!", "replies": [{"id": "hbgqee9", "text": "We meet again", "replies": [{"id": "hbgx8fv", "text": "https://i.ytimg.com/vi/BqwdNm52Pzg/hqdefault.jpg", "replies": [], "depth": 8}], "depth": 7}], "depth": 6}, {"id": "hbmj47x", "text": "I wouldn't say correcting someone is having a stroke.  So what do you think should be done when these clueless posters come on spreading ignorance?  Funny they are all Wall Street bankers and $100,000,000 investors that when called out slink away.  They should go over to biggerpockets where they can pay $40 a month and call themselves experts.", "replies": [{"id": "hbmq32i", "text": "Hey, I never said I didn\u2019t enjoy it! You keep schoolin\u2019 and I\u2019ll keep laughin\u2019.", "replies": [{"id": "hbn2bl4", "text": "So you think the moderators have a joke subreddit instead of a place to have serious commercial real estate discussion?  I guess it is my fault for not realizing this is just a BS place.  If you don't want to help you just have way too much time and are wasting it.", "replies": [{"id": "hbnwofz", "text": "Alright now you\u2019re getting annoying again.", "replies": [{"id": "hbom2vr", "text": "Isn't that what you are saying?  Why aren't you still laughing?\n\n&amp;#x200B;\n\nOh, you are the guy that thinks there are negative cap rates buy can't do the math!  Guess who is laughing now!", "replies": [], "depth": 10}], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hatne9w", "text": "A McDonald\u2019s in Seattle sold for a 1% Cap Rate. McDonald\u2019s was paying low rent and had no further options to renew. The new owners then backfilled the space with Chase at a much higher rent.", "replies": [], "depth": 1}, {"id": "hatwxs1", "text": "Occasionally a user will overpay for a location they absolutely want.", "replies": [], "depth": 1}, {"id": "hauf7iz", "text": "I want to see a listing showing a 1000sqft laundromat property selling for $1.5m.", "replies": [], "depth": 1}, {"id": "haxkina", "text": "Terminal value, cash flows, portfolio value, and long term holds \u2026 this is not unusual for long term funds with little to no risk", "replies": [], "depth": 1}, {"id": "hbgs1nt", "text": "Not enough info. Are there any details behind the transaction? Can you share an OM", "replies": [], "depth": 1}, {"id": "hbkrhgc", "text": "They are anticipating higher rent growth than non TO assets. If you were to plug in what they believe their rents will be in 5 or 10 years you would see a whole different picture.", "replies": [], "depth": 1}]