NVI Technical College Information

I NCOME C APITALIZATION A PPROACH 66

I NVESTOR S URVEYS

INVESTOR SURVEYS

Survey/Investment Type

OAR Range

Average

PwC Real Estate Investor Survey (3Q23) Warehouse Situs RERC Real Estate Report (3Q23) Flex

3.00% - 6.50%

4.97%

6.00% - 8.20% 4.30% - 6.50%

6.70% 5.30%

Warehouse

RealtyRates.com Investor Survey (3Q23) Industrial

5.42% - 13.00% 9.65% 6.15% - 13.00% 9.83% 6.59% - 15.16% 10.82% 3.00% - 15.16% 7.88%

R&D/Flex

Schools/Day Care

Indicated OAR:

The subject property represents a Class C property in a secondary market. Due to the size and location of the subject, it would not like likely attract the attention of institutional investors. Thus, the subject warrants a capitalization rate well above the reported average of investor surveys. M ARKET P ARTICIPANT I NTERVIEWS The following table indicates data from market participant interviews relative to capitalization rates for the subject and similar properties.

MARKET PARTICIPANT INTERVIEWS

Respondent Alan Buttram

Company

Income Survey Date Cap Rate Range

Buttram Commercial RE Market

3Q 2023 3Q 2023

7.50% - 8.50% 7.00% - 8.50% 7.00% - 8.50%

Bill Wright

CBRE

Market

Reported Range

B AND OF I NVESTMENT The band of investment calculation is summarized in the following table.

BAND OF INVESTMENT Loan Parameters

75%

Loan-to-Value (LTV)

25

Amortization Period (yrs)

7.00%

Interest Rate

0.08481 10.00%

Mortgage Constant Equity Dividend Rate

Calculation

0.06361 0.02500

0.75 LTV

x 0.08481

Mortgage Constant

=

0.25 Equity x 0.10000

Equity Dividend Rate =

Capitalization Rate

8.86%

F OUR B UILDING I NDUSTRIAL C OMPLEX A PPRAISAL

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