You are a financial analyst with a regional development firm. Your company has been under contract for a property near the local train station and has spent over a year and \$1,000,000 developing a set of plans and undertaking the required approvals to construct a 300 -unit apartment building on the site. The summarized development proforma is as follows: Land: $18,000,000 Pre Development Expenses: $1,000,000 Hard Costs: $52,000,000 Soft Costs: $15,000,000 Contingency: $3,000,000 Financing Costs (including interest during construction and lease-up): $5,000,000 Total Capital Costs of Production: $94,000,000 There are a number of competing communities in the area of the train station, which allows you to be confident that you will achieve between $2.40 and $2.50 per rentable square foot for the completed project. The units average 840 square feet rentable. You believe your operating expenses will be about $8,000 per unit. Cap rates for this type of project are approximately 4.5%. You have obtained proposals from three potential construction lenders, the terms of which are outlined below. Your firm is a merchant building and is currently very busy. Equity to be invested in projects must be obtained from high return nvestors expecting double-digit returns on their capital. Which lender are you likely to pursue? What are the principal risks in this type of loan structure? How much equity do you need to raise, and what is your projected return on equity? You are a financial analyst with a regional development firm. Your company has been under contract for a property near the local train station and has spent over a year and \$1,000,000 developing a set of plans and undertaking the required approvals to construct a 300 -unit apartment building on the site. The summarized development proforma is as follows: Land: $18,000,000 Pre Development Expenses: $1,000,000 Hard Costs: $52,000,000 Soft Costs: $15,000,000 Contingency: $3,000,000 Financing Costs (including interest during construction and lease-up): $5,000,000 Total Capital Costs of Production: $94,000,000 There are a number of competing communities in the area of the train station, which allows you to be confident that you will achieve between $2.40 and $2.50 per rentable square foot for the completed project. The units average 840 square feet rentable. You believe your operating expenses will be about $8,000 per unit. Cap rates for this type of project are approximately 4.5%. You have obtained proposals from three potential construction lenders, the terms of which are outlined below. Your firm is a merchant building and is currently very busy. Equity to be invested in projects must be obtained from high return nvestors expecting double-digit returns on their capital. Which lender are you likely to pursue? What are the principal risks in this type of loan structure? How much equity do you need to raise, and what is your projected return on equity