18. Real Estate Valuation (LO4, CFA2) Centerland Partners has collected information on the recent purchases of three small shopping centers. Centerland is considering the purchase of a similar property with an NOI of $3.1 million.

Shopping Center NOI Valuation Castleton Round $2.2 million $13.75 million Fashion Commons $3.6 million $22.22 million Belden Square $2.7 million $16.46 million

a. What is the market capitalization rate?

b. What valuation should Centerland assign to the target property?