Valuation assignment for the subject property is for both the building and land.
· A Comparable Office Bldg owned and sold separately from its site (land), which is subject to a 99-year ground lease.
· The comparable 80,000 sf bldg sold (separately from the land) for $4,000,000, or $50/sf.
· Assume the annual ground rent is $250,000, which is consistent with the market
· Market Land Capitalization rate is 11%.
If no other adjustments were made except for the value of the land, what would be the final adjusted sales price of this comparable?