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An investor is considering the purchade of a 22,000 square foot shopping center for $5 million. First year NOI is $402,550 and is expected to
An investor is considering the purchade of a 22,000 square foot shopping center for $5 million. First year NOI is $402,550 and is expected to increase at 3% per year over a holding period of 5 years. If the property sells at a terminal, or "going out" cap rate of 7.5%, what is the appreciation rate for the property?
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