📊 Valuation Summary – K&K Property Ventures LLC
31-Acre Recreational Facility | Rochester, NY
🧮 Income Approach to Valuation
The Income Approach estimates property value based on its ability to generate income. It’s widely used for income-producing assets like commercial and recreational real estate.
Formula:
[ \text{Value} = \frac{\text{Net Operating Income (NOI)}}{\text{Capitalization Rate (Cap Rate)}} ]
💼 Financial Snapshot
| Metric | Value |
|---|---|
| Net Operating Income | $737,747/year |
| Asking Price | $6,250,000 |
| Cap Rate | 11.9% |
📈 Cap Rate Sensitivity Analysis
| Target Cap Rate | Required NOI | Your NOI | Status |
|---|---|---|---|
| 12% | $750,000 | $737,747 | ⛳ Near Target |
| 11% | $687,500 | $737,747 | ✅ Exceeds |
| 10% | $625,000 | $737,747 | ✅ Exceeds |
🔍 Why This Matters
- Cap Rate reflects investor expectations for return and market risk.
- Your property’s NOI supports valuations across multiple cap rate scenarios.
- The Income Approach confirms your asking price is aligned with performance and market benchmarks.
📊 Rochester NY Cap Rate Comparison (2025)
| Property Type | Class A | Class B | Class C | Your Cap Rate |
|---|---|---|---|---|
| Multifamily (Metro) | 4.90–5.17% | 4.95–5.24% | 5.60–5.90% | 11.9% |
| Retail (Suburban) | 6.14–6.59% | 6.35–6.85% | 7.22–7.35% | 11.9% |
| Office (Suburban) | 8.05–8.50% | 8.38–8.78% | 8.86–9.12% | 11.9% |
| Industrial | 6.22–6.48% | 6.38–6.52% | 6.66–7.03% | 11.9% |
✅ What This Means:
- Your cap rate is well above Rochester averages across all major sectors.
- This suggests strong income performance relative to the purchase price.
- It may indicate a value-add opportunity, favorable deal structure, or a property with higher risk/reward dynamics.
📞 For more details or a private tour, contact:
Doug Miller
📧 doug@dougmillersoccer.com
📱 585-352-5300
