Question: A property recently sold for $2,360,000. The reported capitalization rate for which the property sold was 7.79%. What was the NOI at the time of sale?

Question #1 (one point): A property recently sold for $2,360,000. The reported capitalization rate for which the property sold was 7.79%. What was the NOI at the time of sale?

Question #2 (2 points): You are looking to acquire a 49,800 rentable square foot industrial building that leases for

$0.35 per square foot per month. The market vacancy rate is 5%, and the operating expense ratio is 15%. There is no other income and none of the operating expenses are reimbursable. You are considering making an offer to purchase the property for $2,000,000. What is the indicated capitalization rate at acquisition?

Questions #3 (2 points): You are thinking about selling an office building that you own. The building totals 23,400 rentable square feet, and rents for $18.50 per rentable square foot. Market vacancy is 8% and the operating expense ratio is 45%. Market capitalization rates for this type of property range from 7.75% to 8.25%. Based on this data, what is the price range for which you can expect to sell this property?

Use the following data to answer questions 4-6.

Loan to Value Ratio: 70%                                                                   Payments: Monthly

Interest Rate: 5.21%                                                                           Discount Rate: 10.5%

Debt Coverage Ratio: 1.25                                                                 Income Growth Rate: 3.0%

Amortization: 20 years                                                                      Cash on Cash: 11%

Question #4 (2 points): What is the indicated cap rate using the band of investment model?

Question #5 (1 point): What is the indicated cap rate using the Gordon Growth model?

Question #6 (2 points): What is the indicated cap rate using the Gettel model?