A 150,000-sf office building has a NNN lease providing a constant rent of $20/sf per year. The lease has five years before it expires (assume the next payment come sin one year, and there are four more annual payments after that under the present lease). rents on similar leases being signed today are $22/sq ft. You expect rents on new leases to grow at 2.5% per year for existing buildings. You expect to release the building in year 6 after the current lease expire, but only after experiencing expected vacancy of 6 months, and after spending $10/per sq ft on tenant improvements. After 10 years you expect to sell the building at a price equal to 10 times the then-prevailing rent in new triple-net leases. Based on the survey information about typical going-in IRRs prevailing currently in the market for this type of property, you think the market would require a 12% expected return for this building.

What is the NPV of an investment in this property if the price is $30 million? Should you do the deal?