Due Wednesday by 11:5pm Points 10 Submitting a file upload Assume that the following Comparable Sales for office properties are observed Comparable A: Sales Price $1.600,000; 1st year NOI $150,000 Comparable B: Sales Price $1,700,000: 1st year NOI $170,000 Comparable C: Sales Price $1.960,000; 1st year NOI $240,000 Comparable D: Sales Price $1.200,000; 1st year NOI- $105,000 1) Weighting all comparables equally, utilize direct market extraction to determine an appropriate cap rate based on these 4 comparables 2) Calculate the 1st year NOI for an office property with the following characteristics -Projected 1st year Potential Gross Income (PGI) of $950,000. Vacancy and Collection cost is 12% of PGI -Operating Expenses are 40% of Effective Gross Income (EGI) -Capital Expenditures are budgeted at 5% of EGI 3) Based on your answers above utilize direct capitalization (the cap rate method) to determine the value of the office property described in question 2 utilizing the cap rate from question 1