Debb Development has requested a construction loan for a new development project. The total project cost is $3,000,000. Debb wants to borrow $1,840,500 (plus accruing interest) from a commercial bank. The bank has examined Debbs project and is on board with the following construction loan: term of 22 months, 2% upfront origination fee (not financed, but paid in cash by Debb on day zero), 25% of the loan amount drawn evenly over first 4 months, 75% of the loan amount drawn evenly over remaining 18 months, 8% annual interest.

How much equity capital will Debb have in this deal when construction is finished and the construction loan is repaid?

Also, what is the expected yield to the lender??