Choose 2 out of the following three questions and answer in the space provided on the page.
Indicate clearly which questions we should grade or we will grade the first two.
* 40,000 NRSF office building project.
* Acquisition & construction cost = $1,500,000;
* Estimated operating costs (to landlord) = $100,000/yr.
* Projected stabilized occupancy = 95%.
* Permanent loan available on completion @ 9% (interest-only loan) with 130% debt service coverage requirement on the net operating income, and 75% maximum loan-to-value ratio.
Show your work.
