Solve the following problems: 1) I'm looking at a property in Ohio City where the price per acre is $500,000. The property is 2 acres and has remediation costs of $750,000 (subtract this amount from the land value). On this property sits a 4-story vacant industrial building with 30,000 sa ft of space on each floor. Based on cost estimates the space is valued at $50 per sq ft. The property has an economic life of 100 years and based on its current condition the effective age of the building is 1950. The building has 40 windows on each floor and 25% of the windows are broken and the cost of each window is $2,000. The building also needs new HVAC systems, which will cost $200,000. What is fair market value for this property? You're looking to invest in a property in University Circle. The property that is of interest to you is in Little Italy and is a 16-unit apartment complex. Upon inquiring with the current property manager, you find out the following information: The apartment building is 10 1-bedroom units and 6 2-bedroom units. The 1-bedroom units rent for $750 per month and the 2-bedroom units rent for $1000 per month. There are no vacancies and the loss allowance estimate is 2% based on concessions. The other income is derived from pet fees ($200 per month total) and laundry ($300 per month total). There are many expenses that go with the property, but in your short conversation with the property manager they are summarized as $80,000 per year. Based on the cap rate sheet, what is the value of this property? 2)