You wish to build an office space. Market rents seem to be around $150 per square foot per year with a 5% Vacancy rate in the local area. All expenses are passed through the tenants except property taxes, insurance and management, which you estimate at $50 per square foot per year. Mortgage rates are 11% for a 20 year amortization. Construction costs for your planned 20,000 gross-leaseable square foot project are estimated at $10,300,750 in total. All 20,000 square foot are rentable. The debt service coverage ratio required is 120% and the maximum LTV ratio is 75%.

Use the simple financial feasibility analysis (SFFA) back-door procedure to determine what you could pay for the land?