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Assume that the annual NOI this year for a building is $ 2 . 5 million. Assume that the market cap rate for the building

Assume that the annual NOI this year for a building is $2.5 million. Assume that the market cap rate for the building today is 6.25%. Additionally assume that the replacement cost of the building is $35 million. Are you acquiring this property at a premium or discount to replacement cost?

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