Suppose you buy Commercial property at the asking price of $7,000,000 and own it for exactly 1 year.

You make the down-payment 2.1m.

You collect the NOI $377300 in the 1^st year of ownership .

You pay $306250 as annual mortgage payment.

In two years, the NOI is expected to be the same.

You sell the property at the end of year 1, at a cap rate of 50 basis points below the original cap rate of 5.39% and you pay off the loan balance when you sell.

Compute the IRR on this investment.