Showing posts with label Greg Oehler. Show all posts
Showing posts with label Greg Oehler. Show all posts

Tuesday, January 29, 2013

Net Present Value is a Valuable Tool for Analyzing Investment Property

A message from Greg Oehler, COO of HUNT Commercial

Investment property is a worthwhile undertaking, if it creates value for the owner. In the most general sense, we create value by identifying an investment worth more in the marketplace than it costs us to acquire. The difference between an investment’s market value and its cost is called the net present value (NPV) of the investment. In other words, NPV is a measure of how much value is created or added by taking on an investment property.

Suppose you are considering the purchase of a property for $1,000,000. The property has a single, high credit-rated tenant; the lease is triple net and there are eight years remaining. The property generates $45,000 net cash per year. If 20% is the down payment and your required discount rate is 14%, what is the NPV on this property?

Since the cash flows are equal each year, we effectively have an eight-year annuity. Using an annuity table, we can determine that the factor for 8 years at 14% is 4.6389. If we multiply the annual cash flow by this factor we get $208,750 (these are the discounted cash flows). Subtracting our down payment of $200,000 we end up with $8,750, therefore, this is a good investment. Had the result been negative, then the effect on value would have been unfavorable and we would pass on this investment opportunity.

Sounds simple, doesn’t it? Calculating the NPV is fairly straightforward; however, the task of coming up with accurate cash flows, determining future market value of the property, and selecting the correct discount rate is much more challenging. HUNT Commercial Real Estate has the experience to provide comprehensive investing solutions, and licensed professionals across Upstate New York to give you expert local support.

For more information about HUNT Commercial and our services, visit, or call Greg Oehler directly at (716) 880-1915. For the location of a HUNT Real Estate ERA office near you, visit, or call (716) 633-9400.

Friday, January 11, 2013


Oehler Sworn in as President of the Rochester Chapter of NYSCAR®

HUNT Real Estate Corporation is pleased to announce that Gregory Oehler, COO of HUNT Commercial, was sworn in as the President of the Rochester area chapter of the New York State Commercial Association of REALTORS® (NYSCAR). The appointment commenced on Thursday November 15, 2012 at the NYSCAR® annual awards dinner held at the Genesee Valley Club.

Oehler was also honored for the Rochester ‘Commercial Deal of the Year,’ for the lease negotiated on behalf of the law firm LeClairRyan with Linden Oaks. This marks the second time that HUNT Commercial has received this prestigious award; in 2009, Clarke Thrasher received this same award from the Western New York Chapter of NYSCAR®.

“Working with Clarke Thrasher on this assignment was a great experience, and to be honored by my peers for this award is extremely gratifying. I’m looking forward to an exciting year as President of the Rochester Area Chapter of NYSCAR®” said Greg Oehler, COO of HUNT Commercial.

Oehler joined HUNT Commercial as a sales associate in September of 2003, and became the Chief Operating Officer in 2008. His years of experience and expertise in areas such as contract and lease negotiations, production planning and manpower requirements, capital equipment planning and banking relationships give him immeasurable insight into the needs of businesses today and an understanding of all aspects of real estate. Greg Oehler lives in Rochester and is a member of Daemen College Board of Trustees.

For more information about HUNT Commercial, visit, or call Greg Oehler directly at 716-880-1915. For the location of a HUNT Real Estate ERA office near you, visit, or call 716-633-9400.