Real Estate Case Study Terms

I have an interview coming up for a real estate investment analyst position and the company sent me a case study to complete before the interview. I didn't take a real estate class is college so my knowledge of the subject is limited. There were a few terms I was unsure of and I was hoping someone could clarify for me.

The case has to do with a company xyz asking to borrow money from my company for an apartment complex. The case is asking for me to value the property based on the information provided.

1. How do you calculate balloon Balance at loan maturity if the loan is fully interest only? is this simply ((coupon rate x loan amount)/12)+principal of loan?

2. What is the best method to value this property and determine if you should give the loan to company xyz? (ie. DCF, look at cap rate, other methods?)

3. What is Quoted MEY Spread? (in this case it is 175bps)

4. What is Net BEY Spread? (in this case 182bps)

5. What is PV? (says it is 20bps) (I guess this is not present value since loan amount is over $10m)

6. What is prepayment premium? says yr 6 open at 101%, yr 7 open at par

7. Is there a cap rate (6.35% in my case) that is considered too high or too low by industry standards? Same goes for loan-to-cost (50% in my case) and loan-to-value (59% in my case)?

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