Lynn Investment Company (LIC) is considering the purchase of land that could be developed into a class A residential project. At the present time. The site can support a 1,500,000 rentable sq. ft. building with rent of $30 / sq. ft. and opex equal to 60% of that amount. Rents are expected to grow at 5% and LIC requires a 12% IRR. Building costs are $100 / sq.ft.

Based on this information what is property value?

$107,142,857

$87,500,000

$75,000,000

none of the above