Problem 25
Intro
Office Simple is a real estate investment company that is interested in acquiring an office building (the target building). A similar office building in the same area (the comp building) recently sold for $65,000,000:

Comp building Target building
Value ($) 65,000,000
Square feet 65,000 45,000
Annual rent ($) 3,770,000 2,700,000
Annual maintenance cost ($) 910,000 720,000
The company expects similar growth for and risk of rental income for both buildings.

Attempt 1/3 for 10 pts.
Part 1
What is a value of the target building based on a multiple of net operating income (in $)?

0+ decimals