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 presently renting for $4 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 $3.90 per square foot annually. The second facility contains 300,000 square feet and is being leased for $4.10 per square foot. Market data indicate that current vacancies and operating expenses should run approximately 50 percent of gross income for these facilities. 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 intermediate calculations. Round your final answers to 2 decimal places.) b. What additional information would be desirable before the final direct rate (R) is selected? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)