A single tenant property measures 100,000 SF. It has a tenant paying an in-place rent of $75/SF/Yr and operating expenses of $42/SF/Yr. The lease is month-to-month. Based on market levels, the rent should be $73/SF/Yr. The property is up for sale and the prevailing cap rate for this type of property is 4.5%. By how much would a buyer over pay if they purchased the property based on the in-place rent?

$5.9M

$5.44M

$4.44M

$4.84M