27 December, 2025 | The Multifamily Formula - Investing

Mastering the right metrics is key to navigating the ever-evolving commercial real estate landscape. Whether you're evaluating a luxury multi-family development or any other asset class, understanding Return on Cost (ROC), Return on Equity (ROE), and Internal Rate of Return (IRR) can elevate your investment strategy.

Return on Cost measures profitability by comparing Net Operating Income (NOI) to total development costs. It’s a vital first step in determining if a project aligns with market expectations. Return on Equity zooms in on your capital’s performance, showing how well your equity is working for you. Finally, the Internal Rate of Return provides the complete picture, factoring in time value to evaluate your investment’s total returns upon exit.

At ContraVest, these metrics are at the core of our development process, guiding us in creating high-performing luxury multi-family communities. Whether you're an investor seeking strong returns or just starting to explore the world of real estate, mastering these tools can help you make smarter decisions and build wealth with confidence.