What is the current market value of the property


Question: You are analyzing a property with the following characteristics:

Projected Year 1 NOI: $100,000

Projected Year 11 NOI: $121,899

Projected Year 10 resale (reversion) value: $1,741,414

Current (going-in) market cap rate for similar properties: 6%

Q1. What is the current market value of the property?

Q2. What is the projected terminal (going-out) cap rate?

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