Question 2 (30 points) Complete a sales comparison approach using the following data. In your adjustment grid, round all S/SF to the nearest dollar (no cents) Subject property 42.000 SF office warehouse Sales A-B are all office/warehouses. Market rent is 56.50/SF with industrial gross terms. Sale B sold with market lease terms in place. Sale D sold with a lease rate of $7.15/SF with industrial gross terms. Market conditions were stable from late 2019 up until March 2020, after which conditions declined 20%. All sales that took place prior to March 2020 sold during superior market conditions. In terms of location Lebanon is considered to be 15% inferior to Indianapolis, and Plainfield is considered to be 5% superior to Indianapolis. Buildings within 5,000 SF +/- from the subject's square footage are considered to be similar enough not to require a size adjustment Properties with over 5,000 SF +/- difference require a 5% adjustment per 1.000 SF difference Smaller buildings are considered superior, and larger buildings are considered inferior. An adjustment for age is 2.5% per year of difference. Older buildings are considered inferior, and newer buildings are considered superior. Remember transactional adjustments are performed in sequence. Location/physical adjustments are added up and can net each other out Use the range of adjusted S/SF to indicate a range of values (whole dollars, rounded to the nearest $10,000) for the subject building Your answer: Subject Fee Simple Sale A Fee Simple Interest transferred Sale B Sale C Sale D Leased Fee Fee Simple Leased Fee @ market @ $7.15/SF terms Financed @ Cash Financed @ market terms market terms Arm's length Am's length Arm's length Financing NA Cash Arm's length Conditions of sale Date of sale October 2020 January 2020 June 2020 September 2020 Lebanon 36,000 SF Location Size Indianapolis 42,000 SF December 2019 Plainfield 40.000 SF Indianapolis 45,000 SF Indianapolis 49,000 SF 10 years 14 years 22 years 8 years Age Sale Price Sale Price/SF NA N/A $3,150.000 $1,1510,000 $70 $42 Transactional Adjustments $2,740.000 $56 9 years $3,200,000 $80 Interest transferred Semi-Adjusted S/SF Financing Semi-Adjusted S/SF Conditions of sale Semi-Adjusted $/SF Date of sale Semi-Adjusted $/SF Location/Physical Adjustments Location Size Age Net physical/location adjustments Adjusted S/SF Resulting range of values for subject: Question 2 (30 points) Complete a sales comparison approach using the following data. In your adjustment grid, round all S/SF to the nearest dollar (no cents) Subject property 42.000 SF office warehouse Sales A-B are all office/warehouses. Market rent is 56.50/SF with industrial gross terms. Sale B sold with market lease terms in place. Sale D sold with a lease rate of $7.15/SF with industrial gross terms. Market conditions were stable from late 2019 up until March 2020, after which conditions declined 20%. All sales that took place prior to March 2020 sold during superior market conditions. In terms of location Lebanon is considered to be 15% inferior to Indianapolis, and Plainfield is considered to be 5% superior to Indianapolis. Buildings within 5,000 SF +/- from the subject's square footage are considered to be similar enough not to require a size adjustment Properties with over 5,000 SF +/- difference require a 5% adjustment per 1.000 SF difference Smaller buildings are considered superior, and larger buildings are considered inferior. An adjustment for age is 2.5% per year of difference. Older buildings are considered inferior, and newer buildings are considered superior. Remember transactional adjustments are performed in sequence. Location/physical adjustments are added up and can net each other out Use the range of adjusted S/SF to indicate a range of values (whole dollars, rounded to the nearest $10,000) for the subject building Your answer: Subject Fee Simple Sale A Fee Simple Interest transferred Sale B Sale C Sale D Leased Fee Fee Simple Leased Fee @ market @ $7.15/SF terms Financed @ Cash Financed @ market terms market terms Arm's length Am's length Arm's length Financing NA Cash Arm's length Conditions of sale Date of sale October 2020 January 2020 June 2020 September 2020 Lebanon 36,000 SF Location Size Indianapolis 42,000 SF December 2019 Plainfield 40.000 SF Indianapolis 45,000 SF Indianapolis 49,000 SF 10 years 14 years 22 years 8 years Age Sale Price Sale Price/SF NA N/A $3,150.000 $1,1510,000 $70 $42 Transactional Adjustments $2,740.000 $56 9 years $3,200,000 $80 Interest transferred Semi-Adjusted S/SF Financing Semi-Adjusted S/SF Conditions of sale Semi-Adjusted $/SF Date of sale Semi-Adjusted $/SF Location/Physical Adjustments Location Size Age Net physical/location adjustments Adjusted S/SF Resulting range of values for subject