You have been hired by an investor to evaluate for investment purposes a mixed-use building. The investor is looking for a market value estimate of the building. There are 20 apartment units all with 2 bedrooms and 1 bathroom and have 1000 sq ft. The apartment units rent for $1200 per month. The 8 retail units on the first floor are 2500 sq ft each and rent for $3500 per month. All of the contracts have expiration dates ranging from January 2017 through July 2018. In addition all of the units are currently occupied in both the apartment space and the retail space. The NOI for the entire property is $30,000 per month. The GRM, GIM, and NIM for the area is estimated at 80, 7, and 12 respectively. Similar buildings in the area have recently sold for between $3M and $5M, however they are much newer than your building which has an effective date of 1987 and has an estimated useful life of 50 years. The land that the building is constructed on is valued at $1M. There are currently 7 windows that need to be replaced (each valued at $1200). There is a furnace upgrade that needs be completed as one of five furnaces is down (each valued at $30,000). The roof has leak and already has two layers of shingles and tar (replacement would cost $75,000). Evaluate the market value of the building.