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Based on the following information, what is the potential developer profit? (Ignore cost of sale.) Building size 12,000 square feet (sf)

Based on the following information, what is the potential developer profit? (Ignore cost of sale.)

Building size 12,000 square feet (sf)

Total development cost $85 per square foot (psf)

Market cap rate 8 percent

Developer profit spread 2 percent

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