1. Acquisition Cost: $5MM
2. Project Development Cost: $22.2MM
3. Project Duration: 44 Months
4. Bank @ 100% of Acquisition (I/Y = 8.25%)
5. Bank @ 30% of Development Costs for 90% of the project duration
6. Mezz @ 40% of Development Costs (I/Y = 14.25%) for 60% of the project duration
7. Preferred Equity @ 20% of Development Costs (I/Y = 19.25%) for 40% of the project duration
8. Common Equity @ The rest of Development Costs (I/Y = 23.0%) for 15% of the project duration
9. Exit Strategy: Build and Hold. Refinance terms: 100% of Total Project Cost @9.25% for 25 years.

Find:

Amount borrowed from each lender/partner.

Capitalized Interest for each loan/investment

Total Project Cost (including Capitalized Interest)

Monthly Debt Service after completion/Refinance

Bonus Points: Find Effective Interest, NOI assuming 6% Cap Rate.