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Income Approach -- continued <br />Rate extraction from comparable sales: The following information is based on properties that have <br />sold. The overall capitalization rate (OAR) is arrived at by dividing the net operating income (NOI) by the <br />sale price. <br />Direct Capitalization Rate Comparables <br />Location <br />Use <br />SF <br />Age <br />Date <br />Sale Price <br />NOI <br />Cap Rate <br />6704 Bleck Drive Industrial 15,500 2001 Sep-15 $785,000 $58,875 <br />Rockford 7.50% <br />Cap rate based on sale price and reported cap rate. <br />1 <br />340 Phyllis Street Industrial 9,920 1970, '80 Feb-18 $375,000 $30,058 <br />Big Lake 8.00% <br />Cap rate based on sale price and reported cap rate. <br />w <br />20850 Rogers Drive Showroom 23,497 1988 May-17 $3,953,861 $237,232 <br />Rogers 6.00% <br />Cap rate based on sale price and reported cap rate <br />, <br />15 1st Avenue South MT Retail 21,000 1966 Aug-16 $743,000 $80,498 <br />Buffalo 10.80% <br />Cap rate based on sale price and reported cap rate. <br />223 nerd th Street South Retail 13,434 1935 May-14 $1,050,000 $100,000Bra0 <br />9.50% <br />Cap rate based on sale price and reported cap rate. <br />9350 Cedar Street Commercial 7,905 2013 Mar-16 $1,270,000 $100,330 <br />Monticello 7.90% <br />Cap rate based on sale price and reported cap rate. <br />•-. <br />702 East Highway 55 Auto 50,000 2002 Mar-16 $8,308,731 $581,611 <br />Buffalo Dealership 7.00% <br />Cap rate based on sale price and reported cap rate. <br />Average 8.10% <br />Median 7.90% <br />Conclusion capitalization rates: The capitalization rates range from 6.00% to 10.80% with an average <br />of 8.0%. Given the age, quality, and condition of the subject, a rate near the mid -range is considered <br />appropriate. Based on the current market and the above data a rate of 8.00% is appropriate. <br />