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Suppose three recent comps had the following NOI and recent sale prices: Comp A NOI = $500,000 and SP = $8,000,000; Comp B NOI =
Suppose three recent comps had the following NOI and recent sale prices: Comp A NOI = $500,000 and SP = $8,000,000; Comp B NOI = $400,000 and SP = $6,000,000; Comp C NOI = $350,000 and SP = $5,000,000. Using the Market Extraction Approach to estimating your cap rate, it would equal:
| 6.64% | ||
| 7.00% | ||
| 6.25% | ||
| 6.67% |
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