price_from_cap: Acquisition price from an entry capitalization rate

In cre.dcf: Discounted Cash Flow Tools for Commercial Real Estate

Acquisition price from an entry capitalization rate

Description

Converts a given NOI_y1 and entry_yield into a net purchase price (HT) and an all-in price including acquisition costs (via acq_cost_rate).

Usage

price_from_cap(noi_y1, entry_yield, acq_cost_rate = 0)

Arguments

noi_y1	numeric(1). Expected NOI for year 1.
entry_yield	numeric(1) in (0,1]. Entry capitalization rate.
acq_cost_rate	numeric(1) in [0,1). Acquisition cost rate.

Value

list(ht = net price, di = all-in price).

Examples

price_from_cap(500000, 0.05, acq_cost_rate = 0.07)

cre.dcf documentation built on April 10, 2026, 5:08 p.m.