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?