After improvements, the property is expected to «generate a 6
percent unlevered stabilized return,» Mathrani said on Thursday.
The deal represents a 6.4
percent unlevered return on International Plaza's projected net operating income for 2005, says UBS analyst Ian Weissman.
Not exact matches
On average returns for direct,
unlevered real estate investments are forecast to be 10.6
percent this year, falling to 8.6
percent in 2016 and 7.7
percent in 2017.
The REIT achieved an
unlevered internal rate of return of 11.1
percent.
The deal represents a first - year
unlevered cap rate between 5
percent and 5.25
percent.
In a statement, executives with Physicians Realty described it as an on - campus medical office building consisting of about 458,396 net leasable sq. ft.. At a purchase price of $ 290 million and after closing, the
unlevered cash yield is expected to be 4.7
percent.
With projected total
unlevered returns on NCREIF at 6
percent — or potentially sub-6
percent — in 2018, the current yield in the existing portfolio becomes very important, notes McAuliffe.
«If cap rates are down 75 to 100 basis points from when they bought the portfolio, we are looking at
unlevered returns of 15, maybe 20
percent.
Today, investors can expect returns of around 6
percent, on average, for assets in most core sectors and a little bit higher returns for niche sectors, said Andy McCulloch, managing director at Green Street, noting that the firm's return forecasts focus on
unlevered returns for long - term holds.