Calculate the 'construction loan interest' based on the property information below. Please provide Excel solution if possible. If not possible, please provide explanation of calculation. Thank you.

 

Transcribed Image Text:

SOFIA LOFTS - PROJECT INFORMATION Development Timeline Site Purchased Planning Started Construction Financing Arranged Construction Started Sales/Leasing Started Construction Completed Unit Type Studio (w/o parking) Studio Two Bedroom Three bedroom (historic house) Total Site Acquisition Cost Hard Costs Residential Units (gross) Existing House Rehab Parking Area Stairwell Soft Costs Development Cost Information Landscape/Hardscape Contractor's Fee Administrative Overhead & Expenses Contingency Subtotal - Hard Costs Architecture Landscape Architecture Structural Engineering Current Residential Information Civil Engineering Planning & Processing Consultants MEP Engineering Utility Consulting Title 24 & Survey Legal 2/1/2016 2/1/2016 9/1/2016 10/1/2016 5/1/2017 8/31/2017 Accounting, Printing & Insurance General & Administrative Property Taxes (24 months) City Fees & Permits Contingency Construction Loan Interest Subtotal - Soft Costs Total Development Cost Number of Units Square Feet 3 7 6 1 17 1,950,000 172,500 237,000 52,000 76,500 80,000 73,250 132,063 48,500 23,650 32,000 24,675 6,000 15,840 12,350 15,000 16,500 11,275 47,950 14.325 425,000 34,653 615 650 930 1,683 $ 825,000 2,773,313 727,718 $ 4,326,031 Gross Building Area (GBA) Residential Parking Total GBA Total Auto Parking Spaces Total Bike Storage Spaces Land Use Plan Buildings Landscaping/Open Space Total Vacant Units 1 1 0 0 2 Average Rents $1,425 $1,630 $2,200 $3,200 $2,114 Bldg. Area (sqft.) 13,658 Market Cap Rate Your Required ROE 3,000 16,658 Acres 0.17 0.24 0.41 16 6 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 % of Site 41% 59% 100% 3.50% 5.50% 70% 30 10 1.20 N/A 8.25% 10.0% SOFIA LOFTS - PROJECT INFORMATION Development Timeline Site Purchased Planning Started Construction Financing Arranged Construction Started Sales/Leasing Started Construction Completed Unit Type Studio (w/o parking) Studio Two Bedroom Three bedroom (historic house) Total Site Acquisition Cost Hard Costs Residential Units (gross) Existing House Rehab Parking Area Stairwell Soft Costs Development Cost Information Landscape/Hardscape Contractor's Fee Administrative Overhead & Expenses Contingency Subtotal - Hard Costs Architecture Landscape Architecture Structural Engineering Current Residential Information Civil Engineering Planning & Processing Consultants MEP Engineering Utility Consulting Title 24 & Survey Legal 2/1/2016 2/1/2016 9/1/2016 10/1/2016 5/1/2017 8/31/2017 Accounting, Printing & Insurance General & Administrative Property Taxes (24 months) City Fees & Permits Contingency Construction Loan Interest Subtotal - Soft Costs Total Development Cost Number of Units Square Feet 3 7 6 1 17 1,950,000 172,500 237,000 52,000 76,500 80,000 73,250 132,063 48,500 23,650 32,000 24,675 6,000 15,840 12,350 15,000 16,500 11,275 47,950 14.325 425,000 34,653 615 650 930 1,683 $ 825,000 2,773,313 727,718 $ 4,326,031 Gross Building Area (GBA) Residential Parking Total GBA Total Auto Parking Spaces Total Bike Storage Spaces Land Use Plan Buildings Landscaping/Open Space Total Vacant Units 1 1 0 0 2 Average Rents $1,425 $1,630 $2,200 $3,200 $2,114 Bldg. Area (sqft.) 13,658 Market Cap Rate Your Required ROE 3,000 16,658 Acres 0.17 0.24 0.41 16 6 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 % of Site 41% 59% 100% 3.50% 5.50% 70% 30 10 1.20 N/A 8.25% 10.0%

Answer rating: 100% (QA)

Calculate the total construction loan amount The construction loan amount is calculated as a percent... View the full answer