What Is Price Per Unit?

Answer

Price per unit is a property’s total price divided by its number of apartment units. A $12,000,000, 60-unit community is $200,000 per unit. It is a quick way to compare apartment deals and to sanity-check a price against recent sales comps in the same submarket.

Price per unit complements the cap rate: the cap rate reflects income, while price per unit reflects replacement cost and comps. Buying well below replacement cost can be a margin of safety in a value-add deal.

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