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Question
Calculation of Income (continuing exercise)
The Freeling Tower, a major office building, is held for a year and one day and then sold. The NOI in year one is $2.5m.
The original financing is:
$ 10.0 m mortgage, interest only 6%
$ 5.0 m mezzanine debt, interest only 10%
$ 5.0 m equity
Assume the allocation to land is 20% of the purchase price and depreciable life is 39 years. What is the partnership income?
Answer
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