Samme's Club wants to buy a 320,000 square feet distrbution facility on the northern edge of a large midwestern city. The subject facility is presently renting for $4 per square foot. Based on recent market activity, two propertles have sold within a two-mile distance from the subject facitity and are very comparable in size. design, and age. One facility is 350.000 square feet and is preseritly being leased for $3,90 per square foot annually. The second facility contans 300,000 square feet and is being leased for $4.10 per square foot. Market data indicate that current vacancles and operating expenses should run approximately 50 percent of grosc income for these facilies. The first facility sold for $9.4 million, and the second sold for $7.9 million. Required: a. Using a going in or direct capitalization rate approach to value. how would you estimate value for the subject distribution facility? (Do not round intermedate calculations. Pound your final answers to 2 decimal places) b. What additionat information would be desirable before the final direct rate (R) is selected? (You may select more than one answer. Single dick the box with the quection mark to produce a check mark for a correct answer and double click the box with the. quection mark to empty the box for a wrong answer) Z The trino in wor Property vaues 7 pinaning Z