First-year NOI for a long-term net lease is expected to be $75,000. Rent is escalating at a rate of 4 percent per year, but there is a two-year period between adjustments. Thus, the income for years 1 and 2 will be $50,000, increasing to $50,000 (1+.03)2 = $53,045 in years 3 and 4, and so on. The discount rate is 12 percent. Assuming beginning-of0year payments, estimate the value of the leased fee.