Question
Assume a retail shopping center can be purchased for $5.5 million. The center's first year NOI is expected to be $489,500. A $4,000,000 loan has
Assume a retail shopping center can be purchased for $5.5 million.
The center's
first year NOI is expected to be $489,500. A $4,000,000 loan has been requested.
The loan carries a 9.25 percent fixed contract rate, amortized monthly over 25
years with a 7-year term.
What will be the property's (annual) debt coverage ratio
in the first year of operations?
How do i get the debt service
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Personal Finance
Authors: Jack R. Kapoor, Les R. Dlabay, Robert J. Hughes, Melissa Hart
12th edition
1259720683, 978-1259720680
