Consider the possible purchase of a fully operational 50,000 squar e foot single - tenant office bui lding. A buyer is seeking a $ 4,583,500 loan in order to purchase the property for $6,111,000 . The buyer wish es to obtain a 10 - y ear , partially amortizing no nrecourse loan from you, the lender, that wou ld include a $4,083,250 balloon payment due at the end of Year 10 . You r job is to decide whether or no t the loan satisfies your under writing guideli nes . As a starting point , you took a careful look at what is currently going on in the capital markets to get a sense of what contract interest rates