Real Estate Problem, i need your help?
Posted July 17th, 2010 by admin 2 Comments »
Christina B asked:
Hi, i am having trouble on a problem involving real estate, and any help would be greatly appreciated!
“An investor is considering the purchase of a 11,000 sq foot warehouse that is expected to command $8.40 per square foot in annual rents. 2 comparable warehouses have recently sold in the market. comparable 1 measures 12,000 sq. ft and sold for $450,000.
Hi, i am having trouble on a problem involving real estate, and any help would be greatly appreciated!
“An investor is considering the purchase of a 11,000 sq foot warehouse that is expected to command $8.40 per square foot in annual rents. 2 comparable warehouses have recently sold in the market. comparable 1 measures 12,000 sq. ft and sold for $450,000.
comparable 2 measures 8,600 sq ft and sold for $322,500.
compute the gross income multiplier that is implied by these transactions and estimate the value of the subject property.