You are the Chief Underwriter of Debt Products for Mutual Life Insurance Company. The institution's Senior Lending Officer walks into your office and shares the following:

"I'm short on my quota of deals for this year and my wife just told me that her BMW needs a new transmission. I'm trying to finance a 300,000 square foot office building. The Property will appraise at a 6.5% cap all day long. I've offered The Borrower two financing alternatives,

Alternative A is: (a) A $36 million loan (b) For 15 years (c) With amortization predicated on a 30 year schedule (d) At a fixed rate of interest equal to the yield on a 10 year Treasury Bond plus 235 basis points with payments calculated on a monthly basis (e) With a three point fee to Mutual Life Insurance Company Alternative B is: (a) A $38.5 million loan (b) For 15 years (c) With amortization predicated on a 30 year schedule (d) At a fixed rate of interest equal to the yield on a 10 year Treasury Bond plus 275 basis points with payments calculated on a monthly basis (e) With a three point fee to Mutual Life Insurance Company

If you accept The Loan Officer's valuation premise (that The Property can be valued @ a 6.5 cap) and you compel the Borrower to reserve $150,000 for Capital Expenditures from the Net Operating Income on an annual basis, what is the Loan To Value for 2022 and 2023 for Alternatives A and B? You may ignore amortization for the purposes of calculating the LTVs.

2022 2023

LTV Alternative A = LTV Alternative B =