Refinance help for Apartment complex

[Account Closed]

If I wanted to do a cash-out refi at 70% LTV, how do they value the apt complex? Is it NOI/ Cap Rate? Or do the banks find the valuation a different way?

For example: The purchase price of the apartment was $1.7Mil 5 years ago. We have raised the NOI from $182,000 to $201,000 in 5 years. Assuming the Cap Rate is the same, at 9%, the new valuation would be $2.2Mil. Does the bank use the $2.2Mil number, or do they find the valuation a different way ($1.7Mil plus appreciation for 5 years so roughly $1.8-1.9M)?

Thanks!