16. Real Estate Valuation (LO4, CFA2) Sky High Partners is evaluating a high-rise office building to add

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16. Real Estate Valuation (LO4, CFA2) Sky High Partners is evaluating a high-rise office building to add to its investment portfolio. To calculate a value, Sky High plans to use the income approach, based on the following estimates:

Gross potential yearly rental income $894,000 Estimated vacancy rate 3.5%

Yearly operating costs $426,000 Market capitalization rate 16%

a. Compute the net operating income (NOI) for the building.

b. Using the income approach, calculate the value for the office building.

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Fundamentals Of Investments Valuation And Management

ISBN: 9781260013979

9th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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Question Posted: Jul 25, 2024 09:00 AM

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16. Real Estate Valuation (LO4, CFA2) Sky High Partners is evaluating a high-rise office building to add

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Fundamentals Of Investments Valuation And Management

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