Atwater Park is a five-building office park in Montreal. The property is valued at $500 million. Bankers have proposed a first mortgage with an LTV of 55 percent. A financial services firm has offered a mezzanine loan to take the property up to a 75 percent LTV. How much equity will be required from the owners in order to complete the purchase?

Select one:

a.

$100 million

b.

$375 million

c.

$225 million

d.

$125 million

e.

$325 million