A privately-held health care provider has requested financing for a new medical office building to house its growing operation. The building was constructed in 2015 and is currently vacant, with a purchase price of $5,000,000 and minimal renovations needed before your customer can move into the property. The health care company is owned equally by four physicians. Provide specific comments on the following loan structure components for this request.

Loan amount (actual $, based on your chosen advance rate) $3,500,000 (70% advance rate)

Loan interest rate (fixed or variable and actual rate)? Fixed at 6%

Loan maturity (term) 10 years