Sammie's Club wants to buy a 320,000 -square-feet distribution facility on the northern edge of a large midwestern city. The subject facility is currently renting for $4.20 per square foot. Based on recent market activity, two properties have sold within a two-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 $4.10 per square foot annually. The second facility contains 300,000 square feet and is being leased for $4.30 per square foot. Market data indicates that current vacancies and operating expenses should run approximately 50 percent of gross income for these facilities. The first facility sold for $9.40million, and the second sold for $7.90 million. Required: a. Calculate the cap rate for both comparable properties. Hint: You'll need to calculate the NOI for both comps. The average of those two cap rates is 7.90%. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)