A company rented a 150,000-sq.-ft. warehouse for 10 years for $10.50 per square foot of building area per year. The lease is at a flat rate on a net basis. The market rate at the inception of the lease was $10.50 per square foot. Five years into the lease term, the market rent jumped to $15.00 per square foot for similar space in the area. The market rate is expected to be stable at $15 per square foot for the remainder of the lease. What is the value of the leased fee if the reversion is based on $15 per square foot with a capitalization rate of 12% and a discount rate of 9.5%? The effective date of valuation is today, which is five years into the lease. Sales costs at the end of the five-year holding period are 5%.

OK TO USE FINANCIAL CALCULATOR, BUT SHOW STEPS. Thank you.