An investor went for financial advice. Their financial adviser said they could get them an average of 8.5% in mutual funds, on average, over a 10 year period. The adviser also said that there was a safer investment in a mix of CDs and mutual funds, earning 7% on average over the same period.

A real estate broker approached the investor about a deal on a 5 unit apartment complex that could yield 12% over the same 10 year period. The annual gross income from the rental of the 5 units will be $78,500 . The annual expenses are $15,075. If the broker charges the investor a 4% commission, what should the investor negotiate as the selling price to realize the 12% return on investment for the first year? Round your answer to the nearest cent.