Assume a property has 200,000 SF. The existing rent is $90 SF/Yr. Operating expenses are $30 SF/Yr. And the prevailing cap rate for properties like this is 5%. Now assume that during due diligence, you the buyer find that the roof needs to be replaced at a cost of $2,000,000. You try to negotiate a reduction in the sales price but the seller says no, take the property as-is, or leave it. If you buy the property and then incur the cost to replace the roof, what is the effective cap rate that you paid? O 5% 4.96% 7.44% 3.96%