You are a Real Estate developer building a small office tower in Montreal. The construction will take one year and the units have all been pre-leased. The stabilized NOI at opening will be $700,000 and comparable cap rates are 5%. The construction lender is willing to finance the project based on the terms and conditions shown below. a) Based on the budget, calculate the oustanding construction loan at the end of the year. b) How much equity will you be able to withdraw at the end of the construction period if you take-out a mortgage with the terms and conditions shown below? Please make your calculations to the right of the data on this worksheet. Upload your file onto Moodle by the deadline indicated on the course outline. PI FASF PROVIDF MF WITH AN ANSWFR WITH THF FXACTI Y SAMF NIIMRFRS Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. \begin{tabular}{|l|c|c|} \hline A66 & A \\ \hline 39 & The land is purchased and site preparation occur in the \\ 40 & first month. The soft cost (excluding interest) are \\ 41 & evenly distributed over the 12 month period. The hard \\ 42 & costs are evenly distibuted over month 3 to month 12. \\ 43 & All cash flows occur at the end of the month. \\ 44 & \\ 45 & \\ 46 & \\ 47 & \\ 48 & \\ \hline 49 & Construction loan: \\ 50 & \\ 51 & LTC \\ 52 & Interest rate \\ \hline \end{tabular} 53 54 \begin{tabular}{llr|} 55 & Stabilized NOI at opening & 700,000 \\ 56 & Comparable cap rates & 5.0% \\ \hline \end{tabular} 57 58 59 Mortgage loan: 60 61 Term (years) 62 Amortization period (years) 63 Mortgage rate 64 Maximum LTV 65 Minimum DSCR 66