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Question
MB REIT owns a shopping center with adjusted NOI of $10 m. Market cap rates for similar properties are 8%. The property currently has a $50 m 7% mortgage that expires in 6 months. The REIT is offered three replacement mortgages $50 million at 6%, $60 million at 7% and $70 m at 8.25%. All of the loans are for ten years and are interest only. MB REIT is not a tax payer. Which loan is best?
Answer
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Related questions
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