JP 3E Holdings Inc (JPTE)

[I ll be back]

Do the math.

A quick review on LoopNet would suggest that the Capitalization Rate for this property would be in the range of 6% for NJ market. Which is currently supported in most US markets right now for student housing.

Based on my industry knowledge as a former CCIM, the rule of thumb for expenses run 34% to 42% for this type of apartment complex. Assuming a 93% occupancy rate and average Net Operating Income (NOI) is going to be 62% of the collected rents or $1.4M NOI.

Cap the $1.4M at 6% Cap rate and you come up with a valuation in the $24,000,000 range. Surprise....Surprise!

If you use the $37,000,000 "membership purchase" your cap would be closer to 3.7%. Sorry, but that dog don't hunt!

Would LOVE to see the appraisal.

By the way, for $1.00, the NJ tax assessor will provide you with a full report on this property.