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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (34906)	7/23/2009 2:00:33 AM
From: Spekulatius	Respond to of 78749

E_K_S - i like the valuation approach but i do not think that based on data from a singe sale, the average value of huge industrial portfolio can be deducted. I took another stab based on a recent mortgage financing: sec.gov 1) 2.6 msqft mortgaged for 71M$= 27$/sqft 2) 3.1 msqft mortgaged for 62.5M$=20.2$/sqft. Now the big question is the hypothetical capital structure of the deal. if we assume that 30% equity /70% debt than 1) Batch one is worth 27/0.7 =38.6$ 2) batch two is worth 20.2/0.7=28.8$/sqft Of course we do not know if the 30%/70% assumption is correct, but still those values are lower than the 38$. So know we have 3 datapoints: 55$/sqft, 38$/sqft and 29$/sqft.Take your pick. Fun business to do this back on the envelope stuff - or maybe I should say funny business <g>.