When potential buyers seek financing to acquire multifamily rental buildings in urban areas, the obvious first question is: what is the value of the underlying asset? Prospective borrowers and lenders employ various methods to determine this value.

Writing for Commercial Investment Real Estate, Bryan Mohler, a partner in Pryor Cashman’s Real Estate Group, explores the challenges of valuing multifamily properties in urban areas and explains why a “capitalization rate” can be a beneficial method for uncovering their true value. 

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