Real Estate Question

1. You were the Common Equity Investor in an office building that was purchased for $1 million in 2006. You invested 100k, the preferred investor invested 100k, the mezzanine lender loaned $100k, the Junior Debt lender loaned $200k and the Senior Debt lender loaned $500k. The hold period was supposed to be for 5 years. The CE investor was projected to have IRR returns of 15% and the PE investor was projecting to have returns of 12%. After the financial crash in 2008 2 years later the property fell into distress because of failing businesses and you are forced to sell the property for a net amount of $750k. Assuming all debt payments were made and were interest only so the balances staid the same while the property was owned how would the waterfall flow to each lender and investor?
2. You are an investor buying an existing office building. You determine that year 1 NOI will be $44,000 and that you the going in CAP rate is 4.1%. Using the Direct Capitalization approach, what is the estimated value of the building?
3. You also determine that the Effective Gross Income will be $80,000 and the Effective Gross Income Multiplier is 13. What is the value using the EGIM muliplier approach?
4. You also determine that the Annual Debt Service is 35,000. What is the Debt Service Coverage Ratio?