Underwriting question for the gurus

[Dale Gwynn]

Question for a multifamily property that has less than 70% vacancy... To figure out the proforma NOI would you underwrite the value as if the property had 90% occupancy?

[Ben Leybovich]

You need to underwrite income and opex at the stabilozzed market, whatever that may be. Then, you need to discount the period of time it'll take you to get to stabilized.