What would be the expected sale price of the property

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Q1. A $7.0 million 25-year fully amortizing fixed rate mortgage loan from Citibank at a 3.75% annual interest rate with monthly payments has been seasoned for 5 years. What will be the balloon payment due on the contract maturity date?

a. $6,070,146

b. $35,989

c. $7,000,000

d. $0

Q2. CVS signed a 25-year triple net lease for a 125,000 square foot distribution facility in Torrance, California that had a first year base rent of $2,250,000 and fixed annual base rent increases of 3% per year. What would be the expected sale price of the property if it is sold at the end of the tenth lease year based on a sale capitalization rate of 4% that is applied to the eleventh year projected NOI?

a. $75,595,296

b. $73,393,492

c. $56,250,000

d. $77,863,155

Reference no: EM132909381

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