A buyer is seeking a $4,583,500 loan in order to purchase a 50,000-square-foot single-tenant office building for $6,111,000. The buyer wishes to obtain a 10-year, partially amortizing non-recourse loan from you, the lender, that would include a $4,083,250 balloon payment due at the end of Year 10. Your job is to decide whether or not the loan satisfies your underwriting guidelines. You determined that you are willing to lend money out at a rate of 7.67% (.0767/12, payments to be made monthly). Your underwriting criteria are as follows:

Underwriting Criteria

1. Maximum ILTV less than or equal to 75%.
2. Maximum projected terminal LTV (TLTV) less than or equal to 65%.
3. In computing ILTV and TLTV apply direct capitalization with an initial cap rate of 9% for Year 1 and a terminal cap rate of 10% for Year 10.
4. Minimum DCR of 1.2 in all years.
5. Maximum BER of 85% for the Year 1.
6. Consider the need for capital improvements and avoid negative EBTCF Flag the property if EBTCF is negative in any given year.

1. Based on your uploaded Excel-based ProForma, what is the monthly payment associated with the borrower's desired $4,583,500.00 loan? Round your answer to two decimals.

2. Assuming a 10% cap rate, what are the estimated sale proceeds in Year 10? Round your answer to two decimals.

3. What is the value for "Debt Service" shown in your Pro Forma in Year 1? Round your answer to two decimals.