A developer has agreed to purchase a single tenant building of 250,000 sq. ft. It is NNN leased to a single tenant whose rent in year 1 is $25.00. The rent has a CPI adjustment feature and CPI is projected to start at 2% during year 1 and increase by 1% each year thereafter. The developer anticipates acquiring the building at a 6% cap rate and selling it at the end of year 5 based on Year 6's rental income capped at 7.50%. To finance the acquisition, the developer has lined up the following capital sources: First mortgage financing at 70% of the selling price. The 10-year loan carries a 4.50% coupon, payable monthly based on a 30-year amortization. Upon sale, there is 2% fixed prepayment premium due. Mezzanine financing equal to 50% of the equity after application of the first mortgage above. The loan carries a coupon of 7.50% and is interest only. 90% of the equity required was sourced from a financial institution who required a 5% cumulative preferred return. During the operation of the project (Years 1-4), cash flow will be distributed as follows: The preferred return; Unpaid preferred return; if any, Any remaining cash flow is allocated 80%/20% to the financial Institution and the developer For year 5, the year of sale, cash flow will be distributed as follows: The preferred return; Unpaid preferred return, if any; Return of capital to the financial institution and the developer; A sum sufficient to provide the investor with a 9% IRR; and, Any remaining cash flow 80%/20%. What is the total return (IRR) to the financial investor?