Use Marshall and Swift and the format in Sample Appraisal 3 to apply the Cost Approach to 100 Woodbridge Center Drive, Woodbridge, 

NJhttps://www.loopnet.com/Listing/1000-Woodbridge-Center-Dr-Woodbridge-NJ/21719222/For our purposes it is a two-story plus basement medical office building containing 31,434 square feet above grade (100 feet by 157.17 feet x 2).It is arectangular Average Class C Office Building constructed circa 1984.Assume that it has 18 foot high ceilings and the expected life is 75 years.

 

Use the age/life method to estimate depreciation and assume that 30% of the depreciation is curable and the balance incurable. Functional obsolescence is 15% and economic obsolescence 10% due partly to Covid.

Assume thatMaximum Floor Area Ratio for the 2.5 acre (108,900 SF) lotis .8.Land values in the area are $12.50 per square foot or $7.50 per square foot buildable, whichever is greater based on a comparable sale analysiswhich you do not have to do for this assignment.

You can use the template in Appraisal Sample 3 or another template.You should be able to design your own Excel sheet.Obtain construction costs and multipliers from the Marshall & Swift Manual (from the library).I will provide something if this does not work out.

Please readthe links provided for the Cost Approach in Announcements

If there is a discrepancy between this assignment and the setup go by this assignment.

Compare this value to the asking price and in 2 to 5 sentences explain why or why not it might be a good indication of whether to pay the asking price of $5,500,000 ($175/SF)

https://www.loopnet.com/Listing/1000-Woodbridge-Center-Dr-Woodbridge-NJ/21719222/