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Business, 25.03.2021 23:10 61497

Four highly similar and competitive income-producing properties located in close proximity to the subject property have sold this month. All four offer essentially the same amenities and services as the subject property. The sale prices and estimated first-year NOI for each of the comparable properties are as follows: Comparable Sale Price EGI NOI1
A $1,450,000 $383,000 $155,000
B $1,100,000 $329,000 $135,400
C $1,250,000 $334,000 $143,400
D $1,500,000 $425,000 $169,000

Required:
a. Use Direct Market Extraction to calculate an overall capitalization rate (or going in cap rate).
b. Calculate the market value of the subject property using direct capitalization
c. Calculate the Effective Gross Income Multiplier from the market data.
d. What is the subject property's estimated market value based on the market derived Effective Gross Income Multiplier?

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