Use the information provided below to estimate the market value of the apartment building that has been described using the direct capitalization approach. 1. Type of Property: Number of Units: Average Rent: Vacancy and Collection Losses: Other Income: Operating Expenses: Apartment Building 25 $1,000 per unit per month 10% of potential gross income $20 per unit per month 40% of effective gross income 3% of effective gross income 5.5% Capital Expenditures: Going-In Cap Rate: 2. Suppose you are trying to determine the value of a Class A office building that is expected to have $2.5 million in NOI over the next year Another Class A office building just sold for $37.5 MM. It had expected NOI of $3 million over the next year Using the "cap rate" method, what is the appraised value of the subject property