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On January 1, 2022, you acquired an industrial property that was leased to Walmart until 2040 for $50 million. At the time of purchase, the
On January 1, 2022, you acquired an industrial property that was leased to Walmart until 2040 for $50 million. At the time of purchase, the property had a cap rate of 7%. Exactly one year later, on January 1, 2023, you sell the property and, at closing, incur broker commissions equal to 5% of the sale price. Your realized rate of return from this investment, after taking into account the broker fees, is 7%. What is the sale price of the property on January 1, 2023?
$46.32 million
$50.53 million
$52.63 million
$55.79 million
$42.63 million
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