In opposing HUD's proposal, the coalition said that median gross rents
do not reflect market conditions and affirmed that median gross rents
are based on outdated information and not adjusted for inflation.
This calculation assumes four void weeks in every year and total operating costs of 32% of gross rents
(management fees, running costs and depreciation), and an interest-only mortgage charged at 4.
It has re-let 4 properties at average gross rents
which are 18 per cent
are in the upper-20's to mid-30's with cash flows averaging $15/sq ft.
Under the first, SSP would pay them $21,000 annual rent plus 40% of the annual gross rents in excess of $52,500; the $21,000 was guaranteed even if SSP did not rent the condominium to any third parties.
These amounts reflected 39%-49% occupancy rates; most of the units examined had lease agreements under SSP's second plan, under which the owners received 50% of the gross rents.
Under the agreement, the company was the exclusive rental agent for the units and was entitled to a percentage of the gross rents
as its management fee.
Located only five minutes west of the Yokohama Train station, the property is in the &uot;Yokohama West Sub-market&uot;, where current vacancy rates are approximately 10% and gross rents
average approximately $40.
range from $10 to $15 a square foot, added Surry, and could go higher depending on whether it's a gross deal or not.
30, 1996, the most recently reported quarter, scheduled gross rents
for apartments in our Bay Area portfolio owned for more than one year had increased 13 percent.
At the same time, as gross rents
stabilized or declined, operating expenses and, particularly, real estate taxes continued to increase.
The main reason for this drop, he explained, is that, at that time, prices were more inflated and properties were selling for 10 to 12 times the gross rents