A property owner has provided you with the following
information. Assume the owner has no other assets or liabilities.
The annual gross revenue is $3,275,000. The debt service payment on
the loan is $147,000 per month. The capitalization rate is 8%.
Assets: Cash $ 1,000,000 Land 1,500,000 Building 29,500,000 Total
Assets $ 32,000,000 Liabilities & Equity: Nonrecourse
Liabilities $ 25,000,000 Partner’s Capital 7,000,000 Total
Liabilities & Capital $ 32,000,000
14. What is the property’s NOI?
Calculate the Debt Service Coverage...