What is the indicated market value of the subject property

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You have been asked to estimate the market value of an apartment complex that is producing annual net operating income of $78,000. three highly similar and competitive apartment properties have sold in the past three months. All three offer essentially the same amenities and services as the subject. All were open-market transactions with similar terms of sale. All were financed with 30-year fixed-rate mortgages using 70 percent debt and 30 percent equity. The sale prices and estimated first-year net operating incomes were as follows:

Comparable 1: Sale price $1,250,000; NOI $84,375

Comparable 2: Sale price $950,000; NOI $59,375

Comparable 3: Sale price $1,150,000; NOI $74,750

What is the indicated market value of the subject property?

Reference no: EM131461883

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