RETAIL REIT acquires CORE SHOPPING CENTER on 10/1/2020 for $30,500,000. Cash flows end up exactly as forecasted. However, RETAIL REIT decides to sell the property at the end of Year 7 instead of Year 10. The sale price is $35,500,000. It will cost RETAIL REIT 2% of the sale price in closing costs. Prepayment penalty of 1%.

37. What was RETAIL REITs unlevered IRR? Include the cost of sale.

a. 8.31%

b. 8.07%

c. 8.25%

d. 9.12%

38. What is the prepayment penalty?

a. $191,125

b. $190,816

c. $200,000

d. $198,250

39. What are the net proceeds to RETAIL REIT upon sale? Do not consider original equity contribution.

a. $16.2 Million

b. $15.7 Million

c. $34.6 Million

d. $15.5 Million