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Tiburon Realty Advisors, LLC, is a No. CA based commercial real estate investment firm, that on 1/1/20, acquired a 1,000,000-sq. ft. regional mall in Walnut Creek, CA for $165 million plus $5 mil- lion in needed capital improvements for a total cost of $170 million. Beginning on 1/1/20, all leases are triple net, all operating expenses are billed back to the tenants except the management fee and all rents increase at the inflation rate. The primary anchor tenant is Macy's with a 150,000 sq. ft. store. Macy's pays a triple net rent of $8 per sq. ft. plus 1% of sales in excess of $18.75 million. Macy's sales for 2020 were $60 million and will increase by 4% each year. The cap rate on the sale is the same as the proforma cap rate and there are no sales costs. The building will be financed with 70% debt at a 5% interest rate and twenty-five-year amortization. Other actual 2020 data regarding the acquisition are as follows: Gross Potential Rent (GPR) 2020 (excluding percentage rent and expense reimbursements) Management Fee as % of EGI Project Inflation Rate $20,000,000 4% 4% 10 Yr. T-Note Rate Discount Rate Projected Holding Period Vacancy Rate Parking and Other Non-Lease Income Operating Expenses Per Sq. Ft. (excluding management fee) 3% 8% 5 yrs. 5% of GPR 2% of GPR $8 1. The effective gross income (EGI) for 2020 is?