Informationen asked to develop a pro forma statement of cash flow for Betts Distribution Center, an Internet-based order fulfillment/distribution/office/warehouse property. In addition to recoverable operating expenses, the new tenant will be billed for pass throughs including insurance and property taxes, which will then be paid by the owner. The information given to you is listed below. Property : Betts Distribution Center Age of Improvement 8 years old Rentable Space 200,000 sq. ft. Single Tenant 10 year lease term, net, net Financial Information: Rent $7.00 per sq. ft. (7-year term), flat Recoverable Expenses from Tenant $1.50 per sq. ft., fixed Operating Expenses $700,000 Property Taxes $50,000 Insurance $15,000 Other Cash Outlays: Allowances for: Recurring CAPEX/Improve Allowance $60,000 Develop a pro forma statement for the Betts property for a base year.

What is the net operating income (NOI)?