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Question 4 ( 6 points ) You own a 4 8 , 0 0 0 S F office building with current NOI of $ 1
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You own a office building with current NOI of $ per per year. You are refinancing the property, and the current market indicates a cap rate. The appraisal your lender obtained indicated a value based on this NOI and cap rate.
Your lender has quoted you the following terms:
interest rate
year amortization
Monthly compounding
LTV ratio
x debt coverage ratio
Prepayment penalty equal to of loan balance at time of prepayment
Determine the following:
a The value indicated in the lender's appraisal.
b The maximum amount for the loan based on the LTV ratio.
c The maximum amount for the loan based on maximum ADS indicated by the debt coverage ratio.
d The annual debt service for the lower of the loan amounts from and
e The loan balance at the end of year
f The prepayment penalty if the loan is prepaid at the end of year
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