Questions 13-30will use the assumptions as explained below:

Purchase $45,000,000 Office space - Max 60% LTV loan

DSCR requirement: 1.3 - Debt Yield Ratio must be above 10%

PGI: 15% of acquisition price. Increases at 2% a year for entire hold period

Vacancy: 18% and decreases to 10% yr 2-5

CAPEX: 7% for entire hold period

OPEX: 35% of EGI

WACC: 9.5% - Reinvestment Rate: 13%

Mortgage Rate: 5.25% 5/1 ARM - Mortgage Term: 20 yr.

Closing costs: 2% of L/A- Future Selling costs: 4%

Going in Market Cap rate is 6.48. Going out CAP rate is 6.48

5 Year Hold - Tax rate 20%

Investor requires a Before Tax IRR of 19%

What is the Before TaxIRR?

What is the DSCR?

What is the loan balance after 60months?

What is the projected future sales price in year 5?