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 $5.6 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 $5.50 per square foot annually. The second facility contains 300,000 square feet and is being leased for $5.70 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 $12.6 million, and the second sold for $11.1 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.) % Comparable 1 Comparable 2 %