A tenant has just leased 20,000 square feet of industrial space at an annual contract rent (market rent) of $6.00 per square foot for a lease term of 25 years. The tenant wants to improve the interior of the space at a cost of $200,000. These tenant improvements will increase the market rental value of the space to $6.75 per square foot per year. A lender is considering making a loan based on this lease at 8% per annum, compounded monthly, amortized over 20 years with a 5 -year term and monthly payments. The lender requires a 15% debt-service safety margin and will not advance more than 70% of the cost of the leasehold improvements. Calculate the maximum mortgage loan secured by the leasehold improvements, rounded to the nearest dollar. $140,000 $127,026 $135,068 $143,702