I am not familiar with the 702's phono pre - but as long as it's competently designed, it will perform transparently. I use an external pre, but that's only because I needed some additional gain due to my cartridges low voltage output, and the built in phono pre in my RX-V2600 was just a little lacking in voltage gain. Otherwise, it has a great phono pre built into it.
In your case, you may need to use an external pre because of the distance between the table and receiver. Remember that you have to keep cable capacitance very low when connecting a table to a phono pre input. So in your case, it would be wise to use a short low capacitance interconnect between the table and an external pre and run the line level output from the pre to the line input on the 702.
-Chris