6555 quince building bought by in-rel

Memphis Business Journal had story about in-rel buying old comcast building at Kirby and Quince for $5 million. It is 5 stories and 112,679 sq ft so price was $44.37 per foot. website is in-rel.com.

If building is 112,679 sq ft total with halls and lobby and elevators and public restrooms, I estimate that 80% is leasable space which is 112,679 x .8 = 90,143 sq ft. If rent is $15 per foot (guess), then possible gross rev is 15 x 90,143 = $1,352,145 per year. If you figure 8% vacancy and collection loss, then rev goes to 92% x 1,352,145 which is about $1,244,000 per year. If expenses are 40% of gross, then that's $541,000 and NOI is 1,244,000 miuns $541,000 = $703,000. At 9% cap rate, buildingis worth about $7,811,000.

Nut article in MBJ said building was only 45% leased and using those numbers then value is less. Gross rev is 90,143 sq ft x $15 per foot x 45% occupied = $608,500. If expenses are 40% or $244,000 then NOI is $364,500 and value at 9% cap is $4,050,000. In-rel paid $5 million so they obviously think they can gt occupancy up.....