Ltd Corporation wants to buy 320,000 square foot distribution facility the northern edge of a large Midwestern city. The subject facility is presently renting for $1.87 per square foot. Based on the recent market activity, two properties sold within a s-mile distance from the subject facility and are very comparable in size, design and age. One facility is 350,000 square feet and is presently being leased for $1.85 per square food annually. The second facility contains 300,000 square feet and is being leased for $1.90 per square foot. Market data indicates that current vacancies and operating expenses should run approximately 50 % of gross income for these facilities. The first facility sold for 3,600,000 and the second for 3,000,000.

Using an overall capitalization rate approach to value, how would an estimate of value be made for the subject distribution facility?