Projections using a MONTHLY period.

You are a Real Estate developer building a small office tower in Montreal. The construction will take one year and the units have all been pre-leased. The stabilized NOI at opening wall be $700,000 and comparable cap rates are 5%. The construction lender is willing to finance the project based on the terms and conditions shown below. a) Based on the budget, calculate the ourtanding construction loan at the end of the year. b) How much equity will you be able to withdraw at the end of the construction period if you take-out a mortgage with the terms and conditions shown below? Please make your calculations to the right of the data on this worksheet or on a sperate spreadsheet Print your assignment on 8.514 sheet and be ready to hand in a hard copy during the March 24 th Class. Cash flow: The land is purchased and site preparation occur in the first month. The soft cost (excluding interest) are evenly distributed over the 12 month period. The hard costs are evenly distibuted over month 3 to month 12 . All cash flows occur at the end of the month. 57 58 59 Mortgage loan: 62 Amortization period (yea 63 Mortgage rate 64 Maximum LTV 65 Minimum DSCR 66 67 68 69 You are a Real Estate developer building a small office tower in Montreal. The construction will take one year and the units have all been pre-leased. The stabilized NOI at opening wall be $700,000 and comparable cap rates are 5%. The construction lender is willing to finance the project based on the terms and conditions shown below. a) Based on the budget, calculate the ourtanding construction loan at the end of the year. b) How much equity will you be able to withdraw at the end of the construction period if you take-out a mortgage with the terms and conditions shown below? Please make your calculations to the right of the data on this worksheet or on a sperate spreadsheet Print your assignment on 8.514 sheet and be ready to hand in a hard copy during the March 24 th Class. Cash flow: The land is purchased and site preparation occur in the first month. The soft cost (excluding interest) are evenly distributed over the 12 month period. The hard costs are evenly distibuted over month 3 to month 12 . All cash flows occur at the end of the month. 57 58 59 Mortgage loan: 62 Amortization period (yea 63 Mortgage rate 64 Maximum LTV 65 Minimum DSCR 66 67 68 69