Question: Problem 4 SHOW ALL WORK You are an appraiser and have been assigned to determine the land value of a site, as vacant. The property

Problem 4 SHOW ALL WORK

You are an appraiser and have been assigned to determine the land value of a site, as vacant. The property is zoned for apartments and retail. The relevant information is as follows:

Property Type NOI Return on Cost Construction Cost

Office $4,000,000 8% $42,000,000

Apartment $2,500,000 6% $35,000,000

Retail $3,000,000 9% $30,000,000

What is the Highest and Best use of the site and what is the residual value of the land?

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