Question: A developer is considering developing a Class A office building. The developers preliminary estimate of value is $2,000,000. Initial discussions with lenders indicate that loans

A developer is considering developing a Class A office building. The developers preliminary estimate of value is $2,000,000. Initial discussions with lenders indicate that loans are available for this property type at 9 percent interest and 30-year amortization periods with monthly payments. Lenders further have indicated they are using a 1.2 DSCR ratio or a 75 percent loan to value (LTV) ratio for Class A office buildings, whichever results in the lower loan amount. Lenders typically select the lower amou

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