The subject property is a $5,000$ sf single tenant office building that is currently leased

for $$9\mathrm{.}00$ per sf per year with three years remaining on the lease. The current lease is

assignable. Typical total vacancy credit loss for this type of property is $10\%$ per year.

Owner expenses are typically found to be $25\%$ of the effective gross income. Market rent

rates are $ $12\mathrm{.}00$ per sf per year. Market overall rates are $9\mathrm{.}5\%$ in the data collection, a sale

of a leasehold interest sold for $$29,000$ with a net leasehold income of $$12,000$ per year with

three years remaining.

What is the value of the leasehold estate, rounded to the nearest $$1,000?$

A$)$ $$34,000$

B$)$ $$38,000$

C$)$ $$45,000$

D$)$ $$36,000$