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A developer plans to purchase a vacant lot to build apartment units, which represent the highest and best use of the land. Assume that the
A developer plans to purchase a vacant lot to build apartment units, which represent the highest and best use of the land. Assume that the anticipated net operating income (NOI) from the projected units is $450,000, the market-derived capitalization rates for the building and the land are 12% and 9.5% respectively, and the value of the projected building is $3,300,000. What is the value of the land?
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