What is the implied cap rate for transaction

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A 320,000 SF industrial property is under consideration for purchase. It currently rents for $4 PSF. Two nearby properties have recently sold and are comparable in size, design, and age. One property is 350,000 SF and rents for $3.90 PSF annually and the other 300,000 SF facility is being leased for $4.10 PSF. Market data indicates that vacancy and OPEX represent about 50% of gross income. The first comparable property sold for $9.4 million and the second sold for $7.9 million. What is the implied cap rate for each transaction? Show all math.

Reference no: EM133115428

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