Our professor said he wants us to either liquidate or hold for an exit strategy. Here are the guidelines he gave us. He also wants to find the common equity using his equation.

Exit Strategies: Liquidate Baild in 20\% Equity - Target ROI A - Sales price noesed for - price/seft mayoe 500-rodas. Hold-Set your cap rate - betermine Net \$/Month requires - Determine the new mintaly pmt Based on 0.8(ttotalprajectcost) Development Project Details: - Projected Square Footage: Bar - 9,504 sqat, Restaurant - 9,504 satt, AirBnB (2nd floor) - 11,035.8 sqft - Estimated Development Duration: Approximately 1 year per 10,000 saft - Costs: - Acquisition: $2,339,144 - Renovations: \$4,966,110 (at \$225/satt) - New Construction: Not applicable (renovations only) - Total Project Cost: \$7,305,254 Funding Structure: - Bank-Acquisition Terms: 100% of Acquisition Cost, 8.825% fixed, 20 -year term from Day 1 - Bank-Construction Terms: 40% of Construction Costs, 8.825% fixed, 20 -year term after 10% of project duration - Mezzanine Terms: 35% of Construction Costs, 15.75% fixed, Interest Only, starting after 25% of project duration - Preferred Equity: 20% of Construction Costs, 21% required return, starting 50% of project duration - Common Equity: 5% of Construction Costs + Interest for debt, 26% required return, starting 75% of project duration Find the common equity for the project and provide an exit strategy (oither liquidate or fifld). 5. Common Equity C1E=(%Constcost)+Is1+Is2+Im