Question
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% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
ISE Real Estate Finance And Investments
Authors: Jeffrey Fisher William B. Brueggeman
17th International Edition
1264892888, 9781264892884
