ABC Residentlal Investors, LLP$,$ is considering the purchase of a $120-$unit apartment complex In Steel City, Pennsylvanla. A market study

of the area reveals that an average rental of $$624$ per month per unit could be realized in the approprlate market area. Durlng the last

slx months, two very comparable apartment complexes have been sold In the same market area. The Oaks, a $140-$unlt project, sold for

$$9$ million. Its rental schedule Indicates that the average rent per unit is $$598$ per month. Palms, a $90-$unit complex, is presently renting

units at $$698$ per month, and its selling price was $$6\mathrm{.}6$ million. The mix of number of bedrooms and sizes of units for both complexes is

very similar to that of the subject property, and both appear to have normal vacancy rates of about $10$ percent annually. All rents are

net as tenants pay all utIlitles and expenses.

Required:

a$.$ Based on the data provided here, how would an appralser establish an estimate of value? $($Round intermedlate calculations and

final answers to the nearest dollar amount.$)$