The Problem: To value a high-rise, mixed use, residential project under several distinct valuation assumptions, as well as supporting various absorption models under each in-use assumption (e.g. Rental vs. Condominium) and their respective impact on the subject’s forecasted profit and/or rate of return.

 

The Solution: Developed separate absorption and valuation models under each assumed use and correlate each present value interest to the subject’s highest and best use and project time line necessary to achieve either a stabilized mixed-use rental building or gross sellout.

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The Result: Both valuation methods resulted in a viable return & reasonable profit basis over costs and existing debt.