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Suppose a lender has a target IRR of 6%. After assessing the credit risk on an office and a residential development the loss adjusted IRR

Suppose a lender has a target IRR of 6%. After assessing the credit risk on an office and a residential development the loss adjusted IRR is estimated 5.2% for offices and 5.6% for residential. What factors account for the difference between the office investment and residential loss adjusted IRRs

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