How is an apartment building valued?

On its net operating income, verified from the rent roll and the statements and adjusted to the taxes and insurance a new owner will pay, divided by the cap rate buyers are paying for comparable multifamily. Price per unit and per square foot from comparable sales check the figure.

Should I raise the rents before selling?

Rents at market raise the income the buyer underwrites, but a building with below-market rents and leases ending soon can sell well too, because buyers pay for the upside. The pricing review shows which produces the higher price in your market.

Do the tenants have to be told the building is for sale?

Not during marketing, beyond the notice Florida law and their leases require for showings. Their leases and deposits transfer to the buyer at closing, and they are told of the new owner then.

Can I sell with tenants on month-to-month leases?

Yes. Some buyers prefer it because they can move rents to market quickly; others want the stability of annual leases. The review shows which buyers are active in your market and what they are paying.

For Owners

Sell Your Apartment Building in Florida

Name: Sell an Apartment Building
Brand: BreakThru Realty

Your rents and expenses set the price of your building. See the number before a buyer does.

See what your apartment building, from five units to a hundred, anywhere in Florida, would bring from the investors buying multifamily today, before you list it. Multifamily is bought for its income and its upside, so the rent roll, the operating statement and the rents nearby decide the price more than the asking figure does. A licensed BreakThru Realty agent works the number from your actual rents and expenses, prepares the package investors expect, and markets the building to the buyers acquiring multifamily in your market.

Get My Commercial Property Strategy · (786) 914-1017

BreakThru Realty · Founder and Broker of Record: Tyson E. Sam, Florida License 3565210

Your first step: Property Value & Disposition Review

Start With a Property Value and Disposition Review

Investors and owner-users price your building three ways: against the competition, against closed sales and on its income. The review shows you all three, where they meet, and the ways to sell that fit your timing and your tax position.

What you receive

A broker's opinion of value from closed sales, competing listings and, for an income property, the rent roll and the cap rates buyers are paying
The documents buyers and lenders will ask for, and which to prepare before listing
Disposition options: open-market sale, confidential sale, sale-leaseback or a 1031 exchange, with the trade-offs
The buyer profile for your property type and how we would reach it
A written summary of the figures behind the opinion

What happens next

Tell us the address, the property type and how the building is occupied.
A commercial agent pulls the closed sales and the competing listings and prepares the review.
We call within one business day to walk through it.
You decide whether, when and how to sell.

Free and confidential. It is a broker's opinion of value, not an appraisal, and we never publish an estimate for a specific property.

Get My Commercial Property Strategy · How commercial property is valued

What Investors Underwrite

The current rent roll against market rents for the same units nearby (the loss to lease is the upside they will pay for); occupancy and collections over twelve months; the operating expenses, especially property insurance and the property tax a new owner will pay after the sale, which in Florida are often far higher than the current owner's; the unit mix; and the building's age, roof, electrical, plumbing and any county safety recertification due.

Pricing: Income, Per Unit and Per Foot

The primary value is net operating income divided by the cap rate multifamily buyers are paying in your market. It is checked against price per unit and per square foot from comparable sales. A building with below-market rents can sell for more than its current income implies, because buyers pay for the increase they can achieve; a building with deferred maintenance sells for less than its income implies, because they deduct the cost.

Preparing the Building

A current rent roll with lease dates, deposits and any concessions; twelve to thirty-six months of operating statements and the bank statements that support them; the current tax bill and insurance policy; the survey and zoning; roof, electrical, plumbing and air-conditioning records; unit photographs of the best units; and the recertification and inspection reports if the building is subject to them. Cleaning up collections and documenting expenses before listing often adds more to the price than any repair.

Who Buys Apartment Buildings

Private investors and syndicates buying for income and value-add; 1031 exchange buyers on a deadline; out-of-state buyers moving capital into Florida; and, for smaller buildings, owner-operators who manage their own. The buyer pool is broad, so the building is marketed widely and the offers are compared on certainty of closing, not only price.

Marketing and the Sale

An offering package under confidentiality agreement; the MLS listing (the commercial feed and, for smaller buildings, the residential income category where appropriate); BreakThru Realty's multifamily pages and direct outreach to registered investors for that size and area; and the brokers who represent multifamily buyers. Tours are by appointment with notice to the tenants; the buyer reviews leases and statements in due diligence, the lender appraises, and estoppels are collected where the lender requires them. Closing is coordinated with your attorney and the title company.

Questions you may be asking

Can the sale be kept confidential?: Yes. Financials go only to buyers who sign a confidentiality agreement, tours are by appointment, and a tenant-occupied building can be marketed without disturbing the tenants. The review sets out the options and the MLS rules that apply.
What does it cost to sell?: The commission is negotiable and agreed in writing in the listing agreement before anything is marketed. Other seller costs usually include title and closing charges and Florida documentary stamp tax on the deed; your closing agent confirms the figures.
I am thinking about a 1031 exchange.: Tell us before you sign anything: the exchange has to be set up before the sale closes. The review covers the timing, and your CPA and a qualified intermediary handle the tax side.
How long will it take?: Longer than a home. Pricing, marketing, a due-diligence period that commonly runs 30 to 60 days and financing all take time. The commercial market pages show how long listings like yours have been on the market today.

Request a Broker Pricing Review

On this page you can tell us: the address, the number of units and the unit mix, the rent roll and occupancy, operating expenses, especially insurance and taxes, your timing.

Call or text (786) 914-1017 or email sales@breakthrurealty.com. A licensed BreakThru Realty agent follows up within one business day.

Frequently Asked Questions

How is an apartment building valued?: On its net operating income, verified from the rent roll and the statements and adjusted to the taxes and insurance a new owner will pay, divided by the cap rate buyers are paying for comparable multifamily. Price per unit and per square foot from comparable sales check the figure.
Should I raise the rents before selling?: Rents at market raise the income the buyer underwrites, but a building with below-market rents and leases ending soon can sell well too, because buyers pay for the upside. The pricing review shows which produces the higher price in your market.
Do the tenants have to be told the building is for sale?: Not during marketing, beyond the notice Florida law and their leases require for showings. Their leases and deposits transfer to the buyer at closing, and they are told of the new owner then.
Can I sell with tenants on month-to-month leases?: Yes. Some buyers prefer it because they can move rents to market quickly; others want the stability of annual leases. The review shows which buyers are active in your market and what they are paying.