1. The subject property is a 5-year-old warehouse with an economic life of 50 years when...
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1. The subject property is a 5-year-old warehouse with an economic life of 50 years when new. A comparable warehouse in the area sold for $1,200,000. The comparable is identical to the subject in all respects except the effective age of the improvements is 10 years. The replacement cost of the comparable is $900,000. What is the indicated value of the comparable land? 2. The comparable property was a small office building that sold for $750,000. The total cost new of the building would be $450,000. There is an estimated 35% depreciation for the building improvements. The depreciated cost of the site improvements is $78,500. What is the extracted value of the land? 3. The subject property has a net operating income (NOI) of $150,000. The land capitalization rate is 5.5%, the capitalization rate for the building is 7.5%, and the value of the building improvements is $900,000. What is the indicated value of the land? 1. The subject property is a 5-year-old warehouse with an economic life of 50 years when new. A comparable warehouse in the area sold for $1,200,000. The comparable is identical to the subject in all respects except the effective age of the improvements is 10 years. The replacement cost of the comparable is $900,000. What is the indicated value of the comparable land? 2. The comparable property was a small office building that sold for $750,000. The total cost new of the building would be $450,000. There is an estimated 35% depreciation for the building improvements. The depreciated cost of the site improvements is $78,500. What is the extracted value of the land? 3. The subject property has a net operating income (NOI) of $150,000. The land capitalization rate is 5.5%, the capitalization rate for the building is 7.5%, and the value of the building improvements is $900,000. What is the indicated value of the land?
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Answer rating: 100% (QA)
1 To find the indicated value of the comparable land we need to use the sales comparison approach First we need to adjust the sale price of the comparable property for the difference in effective age ... View the full answer
Related Book For
Real Estate Finance and Investments
ISBN: 978-0073377339
14th edition
Authors: William Brueggeman, Jeffrey Fisher
Posted Date:
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