Find out property for a net amount

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Reference no: EM132811997

You were the Common Equity Investor in an office building that was purchased for $1 million in 2006. You invested 100k, the preferred investor invested 100k, the mezzanine lender loaned $100k, the Junior Debt lender loaned $200k and the Senior Debt lender loaned $500k. The hold period was supposed to be for 5 years. The CE investor was projected to have IRR returns of 15% and the PE investor was projecting to have returns of 12%. After the financial crash in 2008 2 years later the property fell into distress because of failing businesses and you are forced to sell the property for a net amount of $850k. Assuming all debt payments were made while the property was owned how would the waterfall flow to each lender and investor?

Reference no: EM132811997

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