First-year NOI for a long-term net lease is expected to be $60,000. 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 $60,000, increasing to $60,000 (1+.04)2 = $64,896 in years 3 and 4, and so on. The discount rate is 11 percent. Assuming beginning-of-year payments, estimate the value of the leased fee