Property A has a NOI of $100,000 and was sold recently for $1,300,000. Property B has a NOI of $95,200 and was sold for $1,350,000, while property C has a NOI of $500,000 and was sold recently for $6,100,000. You want to calculate the overall cap rate and understand that properties A and B are more similar to your property than property C. You are accordingly assigning to C only half of the weight that you are assigning to A and B each. Which cap rate do you use? (8 Points)

Your answer