Construction costs are estimated to be $$12\mathrm{.}0$ million. A construction loan is available at $6\mathrm{.}00\%$ annual interest, with $1\mathrm{.}25$ points in origination fees charged. The total interest paid on the loan over the construction period will be $$335,562.$ A permanent loan at $4\%$ annual interest paid monthly over $30$ years is used to pay off the construction loan. The fee to acquire the permanent loan is $3$ points. The estimated NOIs from operations are listed below. The terminal cap rate is $6\mathrm{.}5\%$ and the selling expenses are $4\%$ of the sale price.

What is the annual debt service $($Blank $1)$ in Year $2?$

REE$4313$ Exam $2$ Practice Questions $18-20-1.$png

Group of answer choices

$$750,030$

$$62,502$

$$315,000$

$$335,562$