Valuation Report: 5.5% Stake in Monarch Properties, Inc.

Executive Summary

Company: Monarch Properties, Inc. (private Texas corporation, HQ Albuquerque, NM) – Regional multi-family property owner and manager focused on affordable, conventional, HUD, USDA, and LIHTC housing across New Mexico, Oklahoma, and Texas.

Portfolio Snapshot: Approximately 8,500 apartment units under management/ownership; established 1982; stable cash flows from government-assisted programs.

Estimated Enterprise Value Range: $175 million – $325 million (midpoint $250 million).

Implied Value of 5.5% Stake: $9.6 million – $17.9 million (midpoint ≈ $13.75 million pre-discount).

Recommended Action: Formal third-party appraisal recommended prior to any sale, redemption, or leveraged buyout discussions. Minority stake discounts (20–40%) typically apply due to lack of marketability and control.

Company Overview

Key Metric	Estimate (as of 2026)
Headquarters	Albuquerque, New Mexico
Year Founded	1982
Primary Business	Multi-family property ownership & management (affordable & conventional housing)
Portfolio Size	≈ 8,500 apartment units across NM, OK, TX (100+ properties)
Estimated Annual Revenue	≈ $74–$85 million (management fees + rental income)
Employees	≈ 100–300 (corporate staff ~30 in Albuquerque)
Market Position	Strong regional player in government-subsidized housing with long-term contracts

Valuation Methodology

This report uses three standard approaches for private real estate operating companies. No audited financials are publicly available, so estimates rely on industry benchmarks, comparable transactions, and publicly disclosed portfolio data.

Method	Approach	Key Inputs	Implied Total EV
Revenue Multiple	1.5× – 3.5× trailing revenue (typical for property management + ownership hybrids)	$74–$85M revenue; higher multiple reflects owned assets & stable cash flows	$150M – $300M
Per-Unit Asset Value	$120,000 – $220,000 per unit (Southwest multi-family / affordable housing comps)	8,500 units × net equity after debt	$180M – $350M (adjusted for typical leverage)
Comparable Transactions	Recent regional multi-family portfolio sales (5–12× NOI or 2–4× revenue)	Affordable housing operators in NM/TX/OK market	$175M – $325M

Selected Valuation Range

Conservative

$175 million

(1.8× revenue; lower per-unit value)

Midpoint (Most Likely)

$250 million

(2.8× revenue; balanced asset & cash-flow view)

Optimistic

$325 million

(3.5× revenue; strong property appreciation)

Value of Your Group’s 5.5% Minority Stake

$9.6 million – $17.9 million
(Midpoint: $13.75 million pre-discount)

Scenario	Total Company EV	Gross 5.5% Stake Value	After 30% Minority Discount*
Conservative	$175M	$9.625M	$6.7M
Midpoint	$250M	$13.75M	$9.6M
Optimistic	$325M	$17.875M	$12.5M

*Typical discount for illiquid minority interest (lack of control + no public market). Actual discount depends on shareholder agreement, buy-sell provisions, and negotiation.

Key Assumptions & Limitations

Revenue and unit count derived from industry databases (ZoomInfo, public property records, and historical filings); no audited statements available.
Debt levels assumed typical for multi-family portfolios (50–65% loan-to-value); actual net asset value could vary.
No adjustment for pending lawsuits (Cataldo cases resolved in 2025 with no material ongoing impact noted).
Market conditions: Stable Southwest affordable housing demand; interest rates and cap rates as of Q1 2026.
Excludes control premium that a full acquisition buyer might pay.

IMPORTANT DISCLAIMER: This is an informal, desktop valuation estimate prepared by Grok using publicly available data only. It is NOT a formal appraisal, fairness opinion, or investment advice. Actual value can differ materially based on internal financials, property appraisals, shareholder agreements, and market conditions. Monarch Properties, Inc. is a private company; no public trading market exists. We strongly recommend engaging a certified business valuation firm (e.g., CPA or real estate appraiser specializing in multi-family portfolios) for any transaction, financing, or estate-planning purposes. Past performance or estimates do not guarantee future results.