The biggest valuation factor in the analysis is the cap rate.
Manhattan has seen average cap rates around 4%, and to be conservative I used 4.3%.
Over the last three years it appears there have been rumors of offers in the - .75 range, but no action has been taken and now the company is in the process of liquidating the portfolio.
There was a merger proposal before the announcement of the liquidation or sale of the company, but I think the board realized the merger wasn't going to go through with major shareholders believing the merger was going to be a value destroyer.
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The majority of the risk is how long will it take for management to liquidate the portfolio?
I estimate about a year, which would provide an incredible annualized return in a market that is overpriced.
The Per Key Value seem reasonable at 0,000 with the property being a luxury hotel.
Manhattan real estate has seen tremendous demand from Asian buyers.