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You are working with an investor on a property purchase. The owner is analyzing a mixed use building with a annual net operating income of

You are working with an investor on a property purchase. The owner is analyzing a mixed use building with a annual net operating income of $200,000. The cap rate for the purchase is 7.0%. The owner will hold the property for seven years and expects NOI to increase 1.5% annually. What is the reversion value assuming a load factor of 100 basis points

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