Park Siena is a 200 unit garden apartment complex. Each unit is a 1-bedroom apartment with monthly rent of $1,500 On average 10 units are vacant at array given time. The Landlord pays for all operating expenses The owner is forecasting the following line items for the first year .

 Property tax $1,000,000 . 

Insurance: $100,000 . 

Maintenance: $120.000 

Management expense. $100.000 . 

Capital expenditures $300,000

Rents, expenses, and capital expenditures are expected to increase by 2% per year [indefinitely). Cost of capital for this property is 7% (fired for all years). Investors of Park La Siena are negotiating with First Capital Bank to refinance an existing permanent loan. The loan is a 10-year CPM (constant payment mortgage), amortized over 30 years, with ANNUAL payments and a contractual interest rate of GM. What is the largest loan that can be offered for this property if First Capital requires a maximum break even ratio (BER) of 80%?