If all the individual land parcels in a new housing development are sold for $250,000 each, the developer projects total revenue from land sales will be $100 million. If the land lender requires that their $40 million land loan be completely paid off by the time that 80% of the individual land parcels have been sold, what would be the lender's minimum release price for each parcel?

A 54,000 square foot multi-tenant retail property with an LA Fitness gym and a Chipotle restaurant in Cincinnati, Ohio was recently sold for $7,200,000. Selling costs, including a brokerage fee, totaled 5% of the purchase price. The mortgage loan balance at the time of sale was $3,760,000. The property was purchased eight years ago for $4,200,000, and annual depreciation deductions of $120,000 were taken each year for eight years for tax purposes. If the combined federal and state tax rates on capital gains is 30%, what was the after-tax cash flow from the sale of the property?

Answer rating: 100% (QA)

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