( 1 ) With an initial loan commitment of $ 1 225 090 and using the initial terms outlined in the case , what is ARP's expected return if the property is held for six years ? Eleven years ? Assume that ARE and its investors are in the 317 marginal tax bracket at the federal level and the to bracket at the state level Assume a 2896 capital gains tax rate and standard depreciation schedules . Similar projects in the Atlanta market have sold at cap rates of between 8 546 and 1190