Question

In: Accounting

2. An office building has the following investment characteristics:             Year 1 NOI                   

2. An office building has the following investment characteristics:

            Year 1 NOI                             $2,100,000

            Year 2 NOI                             $2,200,000

            Year 3 NOI                             $2,300,000

            Year 4 NOI                             $2,400,000

            Initial (going in) cap rate        7%

            Loan Principal                        $18,000,000

            Interest rate                             5%

            Amortization                           30 years

            Exit cap rate                            8%

            Holding period                        3 years

Solve for each of the following:

            Purchase price                                                                                    

            Loan to value ratio                                                                             

            Annual debt service                                                                           

            Debt service coverage ratio for year 1                                               

            Loan balance at the end of year 3                                                      

            Equity (Levered) IRR                                                                        

                       

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ekkarill92 answered 3 years ago
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