QUESTION 12 Bob wants to buy a building. He computes the annual NOI for the following year to be $275,000. The sellers asking price for the building is 55,000,000, Bob finds a similar building nearby which sold for 56,000,000 last year and had an NOI of $360,000. If Bob thinks the building he wants to buy should sell at the same cap rate as the similar building, how much should Bob offer