Question
Vornado took an interest-only mortgage with 60% LTV and 10% interest rate to buy an office building for $10,000,000. The building generates $800,000 of rental
Vornado took an interest-only mortgage with 60% LTV and 10% interest rate to buy an office building for $10,000,000. The building generates $800,000 of rental income per year and requires a $50,000 in operating costs. What is the Debt Service Coverage Ratio for this deal?
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International Finance Transactions Policy And Regulation
Authors: Hal Scott, Anna Gelpern
20th Edition
1609303164, 978-1609303167
