Centennial Court Townhomes
For sale238 Centennial Court, Hanover, PA 17331
$2,080,0008 units11,200 SF
Multi family$260,000/unit$186/SF2026
| metric | current | proforma |
|---|---|---|
| CAPCAP rateCapitalization rateThe cap rate is calculated by dividing net operating income by property value, showing the potential return on a real estate investment as a percentage. While useful for comparing similar investments, it doesn't consider leverage, time value of money, or future cash flows from improvements. We calculate current CAP rate using current property value and NOI calculated as last month’s NOI times 12. Pro-forma CAP rate is calculated using current property value and NOI for the next 12 months (including rent growth rates, OE growth rates, and the period of rent stabilization).Optimal valueLower cap rates (e.g., 3% - 5%) typically suggest lower risk and often correspond to "prime" real estate with strong growth prospects. Mid-range cap rates (e.g., 6% - 8%) might represent a balanced risk/return profile. Higher cap rates (e.g., 9% - 12% or more) could indicate potentially higher annual returns but also higher risks. | 6.65% | 6.47% |
| GRMGRMGross Rent MultiplierThe GRM values a property based on annual rent, offering a quick way to assess its investment worth. However, this doesn't account for taxes or expenses like insurance and utilities as GRM uses gross income as opposed to NOI.Optimal valueA suitable GRM depends heavily on your property's rental market. Aim for a GRM between 4 and 13 for quicker payoffs. | 10.32 | 10.27 |
| Cash-on-CashCoCCash on cashA cash-on-cash return is a rate of return often used in real estate transactions that calculates the cash income earned on the cash invested in a property. Cash-on-cash return measures the annual return the investor made on the property in relation to the amount of mortgage paid during the same year.whereAPTCF = (GSR + OI) - (V + OE + AMP)GSR = Gross scheduled rentOI = Other incomeV = VacancyOE = Operating expensesAMP = Annual mortgage paymentsOptimal valueHistorically, many real estate investors aim for a CoC return in the range of 8% to 12%. However, in riskier or less mature markets, investors might expect a CoC of 15% or higher to compensate for the increased risk. In very stable or competitive markets, a CoC return might be lower, even 5% or less, especially if the investor is banking more on property appreciation than on immediate cash flow. | 6.65% | 6.27% |
| YoCYoCYield on CostYield on cost is a measure of the return on investment of a property. It is calculated by dividing the net operating income by the total project cost. | -- | 6.47% |
| Upside | -- | 0.43% |
Acquisition & Sale
| Acquisition date | 6/25/2026 |
|---|---|
| Total cash to close | Detailed cash to closeCash payment$2.08MLoan fees--Acquisition fee--Closing costs acquisition--$2.08M |
| Total acquisition costs | Detailed acquisition costsCash payment$2.08MLoan fees--Working capital$0Acquisition fee--Closing costs acquisition--$2.08M |
Rent roll
| Multifamily | ||||||||
|---|---|---|---|---|---|---|---|---|
| unit # | unit type | SF | current | current/SF | annual current | proforma | proforma/SF | annual proforma |
| 1 | 3BR/2.5BA | — | $2,100 | -- | $25,200 | $2,109 | -- | $25,308 |
| 2 | 3BR/2.5BA | — | $2,100 | -- | $25,200 | $2,109 | -- | $25,308 |
| 3 | 3BR/2.5BA | — | $2,100 | -- | $25,200 | $2,109 | -- | $25,308 |
| 4 | 3BR/2.5BA | — | $2,100 | -- | $25,200 | $2,109 | -- | $25,308 |
| 5 | 3BR/2.5BA | — | $2,100 | -- | $25,200 | $2,109 | -- | $25,308 |
| 6 | 3BR/2.5BA | — | $2,100 | -- | $25,200 | $2,109 | -- | $25,308 |
| 7 | 3BR/2.5BA | — | $2,100 | -- | $25,200 | $2,109 | -- | $25,308 |
| 8 | 3BR/2.5BA | — | $2,100 | -- | $25,200 | $2,109 | -- | $25,308 |
| AVERAGES | 3BR/2.5BA | 1,400 | $2,100 | $1.50 | $25,200 | $2,109 | $1.51 | $25,308 |
| 8 units | 24BR/20BA | 11,200 | $16,800 | $201,600 | $16,872 | $202,464 | ||
Average rent per unit type
| Series | Category | Value |
|---|---|---|
| Current rent | 3 bedrooms | $2,100 |
| Proforma rent | 3 bedrooms | $2,109 |
Operating proforma
| Current | Per Unit8 units | Per SF11,200 SF | % GOI | Proforma | Per Unit8 units | Per SF11,200 SF | % GOI | |
|---|---|---|---|---|---|---|---|---|
| INCOME | ||||||||
| Multifamily | ||||||||
| Gross Multifamily Rental Revenue | $201,600 | $25,200 | $18.00 | 100% | $202,464 | $25,308 | $18.08 | 104.56% |
| Vacancy | $0 | $0 | $0.00 | 0% | $8,823 | $1,103 | $0.79 | 4.56% |
| Effective Multifamily Rental Revenue | $201,600 | $25,200 | $18.00 | 100% | $193,641 | $24,205 | $17.29 | 100% |
| Gross Operating Income | $201,600 | $25,200 | $18.00 | 100% | $193,641 | $24,205 | $17.29 | 100% |
| EXPENSES | ||||||||
| Insurance | $5,600 | $700 | $0.50 | 2.78% | $5,600 | $700 | $0.50 | 2.89% |
| Utilities | $0 | $0 | $0.00 | 0% | $0 | $0 | $0.00 | 0% |
| Repairs & Maintenance | $5,866 | $733 | $0.52 | 2.91% | $5,866 | $733 | $0.52 | 3.03% |
| Off-Site Management | $11,733 | $1,467 | $1.05 | 5.82% | $11,733 | $1,467 | $1.05 | 6.06% |
| Property Taxes | $40,000 | $5,000 | $3.57 | 19.84% | $40,000 | $5,000 | $3.57 | 20.66% |
| Total operating expenses | $63,199 | $7,900 | $5.64 | 31.35% | $63,199 | $7,900 | $5.64 | 32.64% |
| NET OPERATING INCOME | $138,401 | $17,300 | $12.36 | 68.65% | $130,442 | $16,305 | $11.65 | 67.36% |
Annual Operating stats
| Series | Category | Value |
|---|---|---|
| Gross rental income | Current | $201,600 |
| Gross rental income | Proforma | $202,464 |
| Other income | Current | $0 |
| Other income | Proforma | $0 |
| Insurance | Current | $5,600 |
| Insurance | Proforma | $5,600 |
| Utilities | Current | $0 |
| Utilities | Proforma | $0 |
| Repairs & Maintenance | Current | $5,866 |
| Repairs & Maintenance | Proforma | $5,866 |
| Off-Site Management | Current | $11,733 |
| Off-Site Management | Proforma | $11,733 |
| Property Taxes | Current | $40,000 |
| Property Taxes | Proforma | $40,000 |
Cash flow & Debt
| Income Assumptions | Occupancy | Rent growth | Other income growth |
|---|---|---|---|
| Year 1 | 95.64% | 5.12% | 4% |
Property Tax Assumptions
| Effective tax rate | 1.36% |
|---|---|
| Reassess on sale | no |
| Property tax growth rate | 1% |
Expense assumptions
| Management fee | 6.06% of GOI |
|---|---|
| Proforma OE offset | no |