REIT has an offer of $50 million, five-year financing at 7 percent with 25-year amortization on your property. You have three choices for increasing the financing: $60 million five-year financing at 8 percent with 20-year amortization; add a $10 million preferred equity investment at 14 percent to the $50 mortgage; or add a five-year interest-only $10 million second mortgage at 12 percent to the $50 million mortgage.

Which is best?