Value of this office building?

[Jon Klaus]

Waiting to learn more, but this is what I know:

--11K SF REO class B office building in a great location
--25 years old, estimate $60K in deferred maintenance
--Vacant
--Current comp rents--$12-$15/SF -- Was $15-20 1-2 years ago.
--Current comp asking prices $75-$125/SF --Was $110-$200/SF 1-2 years ago

It could probably be leased up at $9-$11/SF+E over 6-12 months.

How much is it worth?

[Will Barnard]

Assuming it is leased out at $10 per sq. ft. annually, and it is leased on a NNN, your potential gross income is $110,000 and your expenses should not exceed 25% of the gross.

That would make your max NOI at $82,500.
On the low end for valuations, you stated they are $75/sq. = $825,000
That comes out to a 10 cap.
Since you have no income at 100% vacancy, you have to buy buy the pound and not off the income since there is none.
I would not pay more than 50% as the absolute max, thus $412,500 and would probably offer something along the lines of $350k ALL CASH since it also requires $60k in deferred maintenance.