I am listing a restaurant and did a cap rate. How is the value of the building treated?

I am not sure how to set a listing price on a restaurant! I did a cap rate calculation but I do not know how to handle the building itself. Is it included in the cap rate price or is it figured into the cap rate (how?)
In Selling Property - Asked by John S. - Feb 18, 2011
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Efon M.
Lender/Mortgage Broker
Altadena, CA

First there is a differece between listing a restaurant for sale and listing a special use property for sale that happens to have TI's catered to a restaurant.
If listing the latter I would survey the lease rates $/sqft with other properties close by that have restaurants in them. Use your findings, derive the NOI from that. Then apply the cap rate based off the most recent sales/listings to the NOI for a potential price. Thats should be a good start.

Feb 23, 2011
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