Greystone's unique bridge product allowed us to fully realize the stabilized value
of Park 83 before pursuing permanent financing through Greystone's capital markets platform.
To know the relationship between the present market value of a property and its stabilized value
over time would likely help lenders and other clients a great deal.
less rent loss, tenant improvement costs and leasing commissions:
As we showed, most of the effects observed can be treated with relatively simple equations that model the variation as an evolution towards a plateau, or stabilized value
, of the property considered.
If, however, the real estate's value is only temporarily impaired and its value can be expected to increase over the next 7-10 years, then it should be accounted for based on its future stabilized value
Additionally, we were able to sell a property in the same area that we believe has reached its stabilized value
The borrower saw an opportunity to acquire a mismanaged asset at approximately 60% of the stabilized value
and 40% of the cost to build," explained Mr.
Once the comparable sales have been reconciled to the subject property on a stabilized basis, the appraiser can infer a stabilized value
opinion for the subject property.
25% to determine a stabilized value
for the real estate of $704 million.
The as stabilized value
would include discounting eight years of cash flows beginning in year three.
In addition to the current stabilized value
, the property has the potential for an additional development of 337,000 square feet over the parking garage.
In this instance, the developer was able to repay the initial equity investors, realize a development fee and cover transaction costs, all based on the full stabilized value
of this two year-old property.