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QUESTION 15 A single tenant property has an in-place rent of $6MYr and operating expenses of $2.5M/Yr. Based on market levels, the rent should be

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QUESTION 15 A single tenant property has an in-place rent of $6MYr and operating expenses of $2.5M/Yr. Based on market levels, the rent should be $5.5M. The existing tenant has a month to month lease (meaning the landlord would have to release the space at the market rent if the tenant opts not to renew). Assuming a cap rate of 4%, what is a fair price for the asset? 1.587.5M O2.585M $75M 4.572M

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