A)

B)

You are considering the purchase of a commercial office property. Currently, the property is partially vacant and in need of repairs. If you purchase the property, you will refurbish some of the vacant units and assume new leases will be signed over the next couple of years. Your pro forma estimates of the property's net operating income (NOI) net of capita expenditure are as follows: Given these estimates of future NOI, estimate the market value of the property assuming a discount rate of 6% and a sale of the property at the end 5 at an out") cap rate of 3%. decimal places, e.g., 5.81 instead of .0581