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INCOME APPROACH
<br /> Capitalization Rates
<br /> The following is a table of twelve sales from which overall capitalization rates can be extracted.
<br /> NO. ADDRESS DATE PRICE NOI OAR
<br /> 1 700 W.Valley Mall Blvd, Union Gap,WA 01/22/19 $2,924,650 $220,627 0.075 Warehouse
<br /> 2 11607 W. Lincoln Ave.,Yakima,WA 06/06/19 $460,000 $29,900 0.065 Subw ay
<br /> 3 11 Hall Avenue,Yakima,WA 06/14/21 $1,379,000 $92,616 0.067 Apartments
<br /> 4 10410 US Hwy 12, Naches,WA 03/10/21 $2,376,000 $136,620 0.058 Hardware Store
<br /> 5 812 W.Wine Country Rd.,Grandview,WA 09/22/20 $1,325,000 $83,808 0.063 Les Schwab
<br /> 6 182 East Hawthorne St.,Connell,WA 02/22/21 $2,300,000 $134,550 0.059 Dollar General
<br /> 7 5215 W.Clearw ater Ave., Kennew ick,WA 10/29/20 $7,050,000 $527,078 0.075 Commercial Strip
<br /> 8 2710-5802 N Road 68, Pasco,WA 12/31/19 $8,950,000 $622,424 0.070 Commercial Strip
<br /> 9 867 N.Columbia Ctr Blvd., Kennewick,WA 12/18/19 $10,450,000 $743,666 0.071 At Home Store
<br /> 10 7504 W.Clearw ater Ave., Kennew ick,WA 06/05/19 $480,000 $29,452 0.061 Subw ay
<br /> 11 598 N.Wilbur Ave.,Walla Walla,WA 06/16/21 $4,600,000 $299,000 0.065 Bi Mart
<br /> 12 118 W.5th St. Ellensburg,WA 10/29/21 $1,700,000 $103,200 0.061 Bank Building
<br /> Because of the location of the subject being surrounded by industrial uses, it is felt that the higher end
<br /> of the range of capitalization rates is appropriate.
<br /> The concluded capitalization rate for the subject is .075.
<br /> INCOME APPROACH
<br /> Projected Gross Annual Income: $20,160
<br /> Administrative Expense: -0.05 -$1,008
<br /> Net Operating Income = $19,152
<br /> Overall Rate = 0.075
<br /> Indicated Value Office = $255,360
<br /> Excess Land = $154,640
<br /> Shop = $20,352
<br /> Canopy = $39,330
<br /> TOTAL INDICATED VALUE = $469,682
<br /> ROUNDED = $470,000
<br /> 46 DAVIS APPRAISAL COMPANY
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