Calculate 'Return on Equity' based on the property information provided below. Please provide step-by-step explanation of calculation. Thank you.

SOFIA LOFTS - PROJECT INFORMATION Development Timeline Site Purchased Planning Started Construction Financing Arranged Construction Started Sales/Leasing Started Construction Completed 2/1/2016 2/1/2016 9/1/2016 10/1/2016 5/1/2017 8/31/2017 Gross Building Area (GBA) Residential Parking Total GBA Total Auto Parking Spaces Total Bike Storage Spaces Bldg. Area (sqft.) 13,658 3,000 16,658 16 6 Land Use Plan Buildings Landscaping/Open Space Total Acres 0.17 0.24 0.41 % of Site 41% 59% 100% Current Residential Information Unit Type Number of Units Square Feet Vacant Units Studio (w/o parking) Studio Two Bedroom Three bedroom (historic house) Total 3 7 6 1 615 650 930 1,683 1 1 0 0 Average Rents $1,425 $1,630 $2,200 $3,200 $2,114 17 2 $ 825,000 Financing & Value Information Construction Loan Interest Rate Permanent Loan Interest Rate Loan to Value Amortization (years) Loan Term (years) Lender Required DCR (min.) Interest-Only Period Market Cap Rate Your Required ROE 3.50% 5.50% 70% 30 10 1.20 N/A 8.25% 10.0% 73,250 2,773,313 Development Cost Information Site Acquisition Cost Hard Costs Residential Units (gross) 1,950,000 Existing House Rehab 172,500 Parking Area 237,000 Stairwell 52,000 Landscape/Hardscape 76,500 Contractor's Fee 80,000 Administrative Overhead & Expenses Contingency 132,063 Subtotal - Hard Costs Soft Costs Architecture 48,500 Landscape Architecture 23,650 Structural Engineering 32,000 Civil Engineering 24,675 Planning & Processing Consultants 6,000 MEP Engineering 15,840 Utility Consulting 12,350 Title 24 & Survey 15,000 Legal 16,500 Accounting, Printing & Insurance 11,275 General & Administrative 47,950 Property Taxes (24 months) 14,325 City Fees & Permits 425,000 Contingency 34,653 Construction Loan Interest Subtotal - Soft Costs Total Development Cost 727,718 $ 4,326,031 SOFIA LOFTS - PROJECT INFORMATION Development Timeline Site Purchased Planning Started Construction Financing Arranged Construction Started Sales/Leasing Started Construction Completed 2/1/2016 2/1/2016 9/1/2016 10/1/2016 5/1/2017 8/31/2017 Gross Building Area (GBA) Residential Parking Total GBA Total Auto Parking Spaces Total Bike Storage Spaces Bldg. Area (sqft.) 13,658 3,000 16,658 16 6 Land Use Plan Buildings Landscaping/Open Space Total Acres 0.17 0.24 0.41 % of Site 41% 59% 100% Current Residential Information Unit Type Number of Units Square Feet Vacant Units Studio (w/o parking) Studio Two Bedroom Three bedroom (historic house) Total 3 7 6 1 615 650 930 1,683 1 1 0 0 Average Rents $1,425 $1,630 $2,200 $3,200 $2,114 17 2 $ 825,000 Financing & Value Information Construction Loan Interest Rate Permanent Loan Interest Rate Loan to Value Amortization (years) Loan Term (years) Lender Required DCR (min.) Interest-Only Period Market Cap Rate Your Required ROE 3.50% 5.50% 70% 30 10 1.20 N/A 8.25% 10.0% 73,250 2,773,313 Development Cost Information Site Acquisition Cost Hard Costs Residential Units (gross) 1,950,000 Existing House Rehab 172,500 Parking Area 237,000 Stairwell 52,000 Landscape/Hardscape 76,500 Contractor's Fee 80,000 Administrative Overhead & Expenses Contingency 132,063 Subtotal - Hard Costs Soft Costs Architecture 48,500 Landscape Architecture 23,650 Structural Engineering 32,000 Civil Engineering 24,675 Planning & Processing Consultants 6,000 MEP Engineering 15,840 Utility Consulting 12,350 Title 24 & Survey 15,000 Legal 16,500 Accounting, Printing & Insurance 11,275 General & Administrative 47,950 Property Taxes (24 months) 14,325 City Fees & Permits 425,000 Contingency 34,653 Construction Loan Interest Subtotal - Soft Costs Total Development Cost 727,718 $ 4,326,031