Do you mean current rent level is $20k/month? If yes, even it includes some utility costs (2-3 thousand at most?), the effective rent is around $17k to $18K. Therefore the asking price of 2.4 millon is not too bad in my opinion.
My guess: previous rent level is pretty low (like around $10k/month), so the current owner somehow increased rent from $10k/month to $20k/month----that increased the NOI, and therefore increased the asking price to $24k.
Why can the rent be increased so much?
1. Market rent inflation for the past 2-3 years.
2. Small area becomes revitalized, so bad tenants moved out and quality tenants move in with big rent increase?
Just my rough guess.
