You want to purchase an office building in Brooklyn that is expected to generate $450,000 net operating income (NOI) in the following year. A very similar nearby property has an estimated net operating income (NOI) of $437160 and recently sold for $7 million dollars. How much should you bid on the Brooklyn office building if you use the cap rate comparison approach to value the property? State your answer as a number rounded to the nearest cent.

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i To find the value of the Brooklyn office building using the cap ra... View the full answer