An apartment is expected to produce $115,000 NOI the first year, increasing by 3 percent per year each year over a projected 7 year holding period. A 80 percent loan-to-value ratio is typical. Current terms are 6.5 percent interest for 25 years (annual payments). Equity investors expect a 12 percent yield. The property is expected to increase in value by 15 percent over the holding period. Value the property using Ellwood.