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PROFORMA. Assumptions: Project Cost: $5.5M Building: 70,000sf Rent: $14 psf gross RETax: $1.50psf CAM: $3.50psf gross Cap Exp: $.15psf Vacancy Allow: 10% Financing: 5.5%, 10yr,

PROFORMA. Assumptions:

Project Cost: $5.5M

Building: 70,000sf

Rent: $14 psf gross

RETax: $1.50psf

CAM: $3.50psf gross

Cap Exp: $.15psf

Vacancy Allow: 10%

Financing: 5.5%, 10yr, 25 yr amort

DSCR: 1.20

Cap rate: 7%

LTV: 65%

a. Write out the stabilized proforma for the above property.

b. What will the loan amount be? Derive it both ways. How much equity will be required for the project?

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