Investment Sale – Jason Griffith, CCIM, with NAI Utah South, assisted a client-investor purchase a 9,000 SF retail strip center is Atlanta (Dacula), GA.  The purchase helps the buyer complete part of a 1031 exchange requirement.  The 100% leased retail center sold for $890,000 and will yield a true 8% CAP rate (capitalization rate) based on the current Net Operating Income.  As some below market rents are increased at the center, the CAP rate will increase a bit more. 
The calculation of a proper CAP rate takes into account:  reserves, property management, and a market vacancy factor.  Proper underwriting of a commercial investment property is important to help investors determine a correct market value.  Jason Griffith represents investors with acquisitions throughout Utah and the United States.