The book's own figures: Cedar Ridge Corporate Center

1. The_Cure_Priced_Blank.xlsx, sheet 1

   1 Inputs!B5    Appraised value                               62000000
   1 Inputs!B6    Net operating income                          3875000
   1 Inputs!B7    Loan amount                                   37200000
   1 Inputs!B8    Interest rate                                 0.0635
   1 Inputs!B9    Amortisation, years                           30
   1 Inputs!B15   Coverage — cash trap                          1.2
   1 Inputs!B16   Coverage — cash sweep                         1.1
   1 Inputs!B17   Coverage — event of default                   1.05
   1 Inputs!B18   Debt yield — cash trap                        0.085
   1 Inputs!B19   Debt yield — ORIGINATION sizing test          0.09
   1 Inputs!B22   Extension condition: debt yield               0.09
   1 Inputs!B23   Extension condition: coverage                 1.2
   1 Inputs!B24   Extension fee, basis points                   0.0025
   1 Inputs!B27   New lender: loan to value                     0.65
   1 Inputs!B28   New lender: coverage                          1.25
   1 Inputs!B29   New lender: debt yield                        0.09
   1 Inputs!B30   New lender: amortisation, years               30

   Result: constant 7.467%, debt service 2,777,660, the ladder at -14.0, -18.4, -21.2 and -24.7 per cent,
   cures of 233,192 and 2,602,535 (11.16 times), a window of 4.4 points and a bound of 1,910,586.

2. Loan_On_One_Page_Blank.xlsx, sheet 1 (the mezzanine is chapter 18's; put 0 for the senior loan alone)

   1. Inputs!C5   Appraised value                                           62000000
   1. Inputs!C6   Net operating income, your own definition                 3875000
   1. Inputs!C7   Gross revenue                                             5000000
   1. Inputs!C8   Rentable area, square feet                                210000
   1. Inputs!C9   Interest rate                                             0.0635
   1. Inputs!C10  Amortisation, years (0 if interest-only)                  30
   1. Inputs!C11  Term, years                                               10
   1. Inputs!C12  Loan amount                                               37200000
   1. Inputs!C13  Sponsor equity, including acquisition costs               26040000
   1. Inputs!C16  Maximum loan to value                                     0.6
   1. Inputs!C17  Minimum coverage                                          1.25
   1. Inputs!C18  Minimum debt yield                                        0.09
   1. Inputs!C21  Management fee imputed, share of gross revenue            0.04
   1. Inputs!C22  Management fee already deducted in your income            0
   1. Inputs!C23  Replacement reserve, per square foot                      0.25
   1. Inputs!C24  Tenant improvement and leasing reserve, per square foot   1.25
   1. Inputs!C25  Other income the definition excludes                      0
   1. Inputs!C28  Cash trap: coverage below                                 1.2
   1. Inputs!C29  Cash trap: debt yield below                               0.085
   1. Inputs!C30  Cash sweep: coverage below                                1.1
   1. Inputs!C31  Event of default: coverage below                          1.05
   1. Inputs!C34  Origination fee, share of the loan                        0.01
   1. Inputs!C35  Third-party and legal costs                               250000
   1. Inputs!C36  Mortgage recording tax, share of the loan                 0
   1. Inputs!C37  Debt service reserve, months                              6
   1. Inputs!C38  Reserve deposits below income, a year                     315000
   1. Inputs!C39  Default rate margin                                       0.05
   1. Inputs!C42  Year of the early exit                                    3
   1. Inputs!C43  Step-down premium that year                               0.03
   1. Inputs!C44  Treasury or securities yield at the exit                  0.041
   1. Inputs!C47  Sale costs on an enforced sale                            0.02
   1. Inputs!C48  Year of the downside test                                 5
   1. Inputs!C49  Mezzanine loan (0 if none)                                6200000
   1. Inputs!C50  Mezzanine rate, interest-only                             0.11

   Result: loan to value binds at 37,200,000; coverage would take over at 7.43%; lender's income 3,360,000,
   coverage 1.210x; cash-on-cash 4.21% and 3.00%; all-in 6.59%; step-down 1,074,929, yield maintenance
   4,821,005, defeasance 40,467,882; the lender starts to lose below 42.8%; combined coverage 1.120x.
