A shopping centre yields $100,000 in NOI and has been appraised for $2,000,000. The mortgage constant is 7% for a loan that may be offered. If a lender insists on 1.25 debt service coverage ratio and a loan-to-value ratio of no more than 75%, what is the largest loan this shopping centre can support?

Answer rating: 100% (QA)

To determine the largest loan that the shopping center can support we need to consider the lenders r... View the full answer