Problem 17-18 Real Estate Valuation (LO4, CFA3) Centerland Partners has collected information on the recent purchases...

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Problem 17-18 Real Estate Valuation (LO4, CFA3) Centerland Partners has collected information on the recent purchases of three small shopping centers. Centerland is considering the purchase of a similar property with an NOI of $4.4 million. Shopping Center Castleton Round Fashion Commons Belden Square Valuation NOI $ 3.4 million $ 11.20 million $ 5.0 million $ 39.22 million $ 3.6 million $ 31.46 million a. What is the market capitalization rate? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place. Market capitalization rate % b. What valuation should Centerland assign to the target property? Note: Do not round intermediate calculations. Enter your answer in millions. Round your answer to 2 decimal places. Value estimate million Problem 17-18 Real Estate Valuation (LO4, CFA3) Centerland Partners has collected information on the recent purchases of three small shopping centers. Centerland is considering the purchase of a similar property with an NOI of $4.4 million. Shopping Center Castleton Round Fashion Commons Belden Square Valuation NOI $ 3.4 million $ 11.20 million $ 5.0 million $ 39.22 million $ 3.6 million $ 31.46 million a. What is the market capitalization rate? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place. Market capitalization rate % b. What valuation should Centerland assign to the target property? Note: Do not round intermediate calculations. Enter your answer in millions. Round your answer to 2 decimal places. Value estimate million