Value of subject property using overall capitalization rate

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A comparable property sold for $5,000,000. The appraiser determined that the sale price included favorable financing from the seller worth $250,000. The comparable property is at a location considered to be inferior to that of the subject property, and the appraiser believes it would be worth 5 percent more at the same location as the subject. The comparable property sold six months ago and prices have increased by 3 percent over the past six months. The comparable property has a net leasable area of 100,000 square feet and its NOI is $380,000. The subject property is 125,000 square feet and its NOI is $475,000. a. What is the indicated value of the subject property based on price per square foot? b. What is the indicated value of the subject property using an overall capitalization rate?

Reference no: EM131176521

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