You are looking at a potential acquisition and want to estimate its value. A highly similar and competitive income-producing property has sold in the same submarket as the subject property. The sales price on the comp was $1,350,000 and the NOI was $71,000. The subject property NOI is $76,000.

What is the estimated value of the subject property?

Please upload your work below. Show and explain how you calculated value. In your work, please show the cap rate for the comparable sale and don't forget that we carry cap rates out to two decimal places, i.e. 6.25% rather than 6.3%. Also: do NOT round your final answer beyond the nearest dollar

Answer rating: 100% (QA)

To estimate the value of the subject property we can use the income approach and apply a capitaliza... View the full answer