Choose the most likely lender credit spread given the following scenario.

Scenario:

You are in the market for a CRE construction loan to finance the renovation of a multifamily property. You believe a lender will view your project as relatively high-risk because the asset is located in a rural location, not near any live-work-play properties or communities. Its sub-market is still considered tertiary and the overall economy is slowing down. What yield spread premium do you think the bank is likely to offer? Assume SOFR is currently at 5.30%.

A) 100 bps

B) 450 bps

C) 250 bps