1. In the Valuation module in Canvas, open the sample commercial appraisal report on the Gwinnett Station Apartments in the Northeast Atlanta suburb of Tucker. The subject is a 180-unit garden style apartment property, with improvements constructed in 1995 and situated on a 20-acre site. Note that rental rates for the subject are currently restricted because of special financing the original developer received under the Low-Income Housing Tax Credit (LIHTC) program. The section of the report using the direct capitalization approach begins on numbered page 106 (or p. 120 in the PDF). Skim through this section until you find a single-year pro forma that summarizes the income and expenses for the property as rent restricted. What is the estimated value (after the appraiser has subtracted deferred maintenance) using direct capitalization and a cap rate of 9.5%?

(Input your answer rounded to the nearest whole dollar and without the $ sign, e.g., 1000)

2.

Continuing with the sample appraisal on the Gwinnett Station Apartments, recall that rental rates for the subject are currently restricted because of special financing the original developer received under the Low-Income Housing Tax Credit (LIHTC) program. However, those restrictions will time-off in the future and the property owner will be able to charge market rents to the tenants. Thus, the appraiser needs to value the property both as a rent-restricted and also as a market-rate property. Skim through the direct capitalization section again until you find the single-year pro forma that summarizes the hypothetical income and expenses as a market rent property. What is the estimated value (after the appraiser has subtracted deferred maintenance) using direct capitalization and a cap rate of 8.5%?

(Input your answer rounded to the nearest whole dollar and without the $ sign, e.g., 1000)