Apartment Metrics when Evaluating Multi-Family Syndication

[Duke Giordano]

Hello All,

I was curious if there are target metrics specifically in respect to the following from the [perspective of Risk/Target profile of deal:

1. Purchase price per unit: is there a target range for this price per unit based on deal cost?  How much of this changes based on asset class (A,B,C) vs Deal location or are some of these numbers universal?

2. Average Rent Per Sq Feet: When looking at a multifamily property is there an average Rent per Sq Ft?  Obviously this would be. number derived from Average Sq feet of units to average rent.  I am guessing this is somewhat market dependant but not sure if there is a rule of thumb?

3. Average Rent per unit compared with average income in the area: is there a specific range/metric that is targeted or does this not really come into play?

4. Renovation/Cap Ex cost in relation to total Purchase price: Is there a target that is looked at in relation to this percentage?

5. Bedroom Diversity/Breakdown: When looking at a Multi-Family Deal is there a target Bedroom Diversity: for example, how many of the total units are 1 bedrooms, 2 Beds, 3 Beds etc?  Does this number effect risk profile/target of deal?

Thanks in advance for your thoughts/input,

Duke