Using the direct capitalization method and below information, what is the current property value? (Round answer to two decimals)

Capital reserves are $25,000 per year

Effective Gross Income = $630,000

Vacancy and Collection loss = 8.2%

The building will be depreciated over 35 years

The current tax rate is 40%

The holding period is 7 years

Operating expenses are $325,000

Current interest expense $60,000

Cap rate on similar properties 5.5%