A Northern California real estate company is considering diversifying its real estate portfolio and buying a 5-year old office building in Upland. It did a thorough study of the market and the leases that are in place. The company estimates that next years net operating income will be $100,000. Its projections allow it to estimate that after the first year the annual net operating income will be rising by $6,000 each year for the following 5 years, after which it is expected to grow by 9 percent per year for a few years in the foreseeable future. It plans to own the property for 8 years and then sell it at a price determined using information on all applicable (How many from the list below?? Thats something you need to figure out!!) comparable properties terminal cap rates. The chosen comps will all be considered equally important in determining the subject propertys expected terminal value. The company requires a 15% return on this investment. Below is the information on seven office buildings with similar features and amenities that recently sold in Upland and surrounding area.

First, under each of the below seven recently sold buildings' information put YES if it should be treated as a comp, and NO otherwise.

Please show all work on excel. Thank you

Bldg #1 Bldg #2 Bldg #3 Bldg #4 Bldg #5 Bldg #6 Bldg #7 $1,000,000 $1,200,000 $900,000 $1,200,000 $1,100,000 $1,000,000 Recent sale #1,300,000 price Arm's length yes transaction? no no yes yes yes no NOI in the coming year $80,000 $110,000 $120,000 $100,000 $90,000 $120.000 $110,000 Other info 5 years old 13 years old Previously sold three years ago to its second 8 years old owner as a 10-year old building Built in October 2008 Will be a 13-year old Twice as old as the building in a couple subject property weeks Comp? If you can do the math in Excel with correct referencing to cells with intermediate results. This will allow you to avoid rounding errors. Otherwise, increase decimal places - the more the better! Say, 6 or even higher. Calculate the company's estimated future net operating incomes for the entire holding period. Round to whole dollar. Don't use the "$" sign. Year estimated NOI Year 1 $ Year 2 $ Year 3 Year 4 $ Year 5 $ Year 6 Year 7 $ Year 8 Estimated reversion value of the subject property equals $ Don't use the "$" sign, and round to whole dollar & the NEAREST THOUSAND (e.g., if you got 1,234,567 then type 1,235,000). Estimated current value of the subject property is $ Don't use the "$" sign, and round to whole dollar & the NEAREST THOUSAND (e.g., if you got 1,234,567 then type 1,235,000). Estimated going-in cap rate for the subject property is %, assuming it is purchased for exactly what it's worth. Don't use the "%" sign, and round to 2 decimal places: e.g., type 1.23 if you got "1.23 percent". Estimated going-out cap rate for the subject property is %. Don't use the "%" sign, and round to 2 decimal places: e.g., type 1.23 if you got "1.23 percent". Bldg #1 Bldg #2 Bldg #3 Bldg #4 Bldg #5 Bldg #6 Bldg #7 $1,000,000 $1,200,000 $900,000 $1,200,000 $1,100,000 $1,000,000 Recent sale #1,300,000 price Arm's length yes transaction? no no yes yes yes no NOI in the coming year $80,000 $110,000 $120,000 $100,000 $90,000 $120.000 $110,000 Other info 5 years old 13 years old Previously sold three years ago to its second 8 years old owner as a 10-year old building Built in October 2008 Will be a 13-year old Twice as old as the building in a couple subject property weeks Comp? If you can do the math in Excel with correct referencing to cells with intermediate results. This will allow you to avoid rounding errors. Otherwise, increase decimal places - the more the better! Say, 6 or even higher. Calculate the company's estimated future net operating incomes for the entire holding period. Round to whole dollar. Don't use the "$" sign. Year estimated NOI Year 1 $ Year 2 $ Year 3 Year 4 $ Year 5 $ Year 6 Year 7 $ Year 8 Estimated reversion value of the subject property equals $ Don't use the "$" sign, and round to whole dollar & the NEAREST THOUSAND (e.g., if you got 1,234,567 then type 1,235,000). Estimated current value of the subject property is $ Don't use the "$" sign, and round to whole dollar & the NEAREST THOUSAND (e.g., if you got 1,234,567 then type 1,235,000). Estimated going-in cap rate for the subject property is %, assuming it is purchased for exactly what it's worth. Don't use the "%" sign, and round to 2 decimal places: e.g., type 1.23 if you got "1.23 percent". Estimated going-out cap rate for the subject property is %. Don't use the "%" sign, and round to 2 decimal places: e.g., type 1.23 if you got "1.23 percent