Use the following property data:

Property consists of 6 Office suites

Contract rents: 1 @ $1,750 per month, 3 @ $2,600 per month, and 2 @ $1,800 per month

Annual market rent increase: 5%

Vacancy and collection losses: 9.5% per year (of PGI)

Operating expenses: 25% of EGI

Capital expenditures: 20% of EGI

Expected holding period: 5 years

Going-out Cap. Rate: 9.4%

Selling expenses: 3.8% of sale price

Market discount rate: 9.5%

Comparable First-year NOI Sale Price

A $75,000 $930,000 B $105,000 $1,360,000 C $130,000 $1,050,000 D $76,000 $800,000 E $88,000 $1,150,00

1. Calculate NOI (2 pts) Show all work.

2. Calculate Overall Capitalization Rate (3 pts) Show all work.

3. Calculate Estimated Market Value (1 pts) Show all work.

4. Calculate Five Year Pro Forma NOI (4 pts) Show all work.

5. Estimate Future Sale Proceeds (1 pts) Show all work.

6. Calculate Net Sale Proceeds (1 pts) Show all work.

7. Calculate Present Value of Future Cash Flows (3 pts) Show all work.