An office property with 50,000 square feet of rentable space is expected to rent for $50 per square foot in the coming year. Rent is expected to decline 3 percent per year over a projected holding period of seven years. Vacancy will be at 7 percent, and the operating expense ratio (based on effective gross income) will be at 35 percent. The property is expected to appreciate at the rate of 3 percent per year. It will be financed using 75 percent debt at an interest rate of 8 percent, amortized over 15 years with monthly payments. Equity investors expect an 15 percent before tax yield. What is the value of this property? Use the Finance-Explicit Model.