Given a text T, and several options, according to the question posed in the text T to choose the most appropriate option from the options as the answer, please directly output the most appropriate option, do not need to output the explanation.

Amanda Rodriguez is an alternative investments analyst for a US investment management firm, Delphinus Brothers. Delphinus’ Chief Investment Officer, Michael Tang, has informed Rodriguez that he wants to reduce the amount invested in traditional asset classes and gain exposure to the real estate sector by acquiring commercial property in the United States. Rodriguez is to analyze potential commercial real estate investments for Delphinus Brothers. Selected data on three commercial real estate properties is presented in Exhibit 1.
| Exhibit l.Selected Property Data |
| Property#l | Property # 2 | Property # 3 |
| Downtown | Grocery-Anchored | Multi-Family |
| Property Type | Office Building | Retail Center | Building |
| Location | NewYork， NY | Miami， FL | Boston， MA |
| Occupancy | 90.00% | 93.00% | 95.00% |
| Square | Feet | or |
| Number of Units | 100，000sf | 205，000sf | 300umits |
| Gross Potential Rent | S4，250，000 | $1，800，000 | $3，100，000 |
| Expense |
| Reimbursement |
| Revenue | S330，000 | $426，248 | so |
| Other | Income |
| (includes%Rent) | $550，000 | S15，000 | $45，000 |
| Potential | Gross |
| Income | $5，130，000 | S2，241，248 | $3，145，000 |
| Vacancy Loss | (S513，000) | (S156，887) | (S157250) |
| Effec ive | Gross |
| Income | $5，079，000 | S2，084，361 | S2，987，750 |
| Property Management |
| Fees | (S203，160) | (S83，374) | (S119，510) |
| Other | Opera tng |
| Expenses | (S2，100，000) | (S342，874) | (S1，175，000) |
| Net Opera tg Income |


Rodriguez reviews the three properties with Tang, who indicates that he would like her to focus on Property #1 because of his prediction of robust job growth in New York City over the next ten years. To complete her analysis, Rodriquez assembles additional data on Property #1, which is presented in Exhibits 2, 3 and 4.
|  |
| Exhibit 2.6-Year Net Operating Income(NO I)andDCFAssumptions forProperty # 1 |
| Year lYear 2Year 3Year 4Year 5Year 6 |
| NO I$2，775，840$2，859，119$2，944，889$3，033，235$3，124，232$3，217，959 |



| Exhibit 3.Sales Comparison Data for Property#l |
| Variable | Property l | Sales CompA | Sales Comp B | Sales Com pC |
| Age(years) | 10 | 5 | 12 | 25 |
| condtion | Good | Excellent | Good | Average |
| Location | Prime | Secondary | Secondary | Prime |
| Sale price psf | $415psf | $395psf | $400psf |

| Adjustments |
| Age(years) | -10% | 2% | 10% |
| Condition | -10% | 0% | 10% |
| Location | 15% | 15% | 0% |
| Total Adjustments | -5% | 17% | 20% |

| Exhibit 4.Other Selected Data for Property#l |
| Land Value | $7，000，000 |
| Replacement Cost | $59，000，000 |
| Total Depreciation | $5，000，000 |


As part of the review, Tang asks Rodriguez to evaluate financing alternatives to determine if it would be better to use debt financing or to make an all cash purchase. Tang directs Rodriguez to inquire about terms with Richmond Life Insurance Company, a publicly traded company, which is an active lender on commercial real estate property. Rodriquez obtains the following information from Richmond Life for a loan on Property #1: loan term of 5 years, interest rate of 5.75% interest-only, maximum loan to value of 75%, and minimum debt service coverage ratio of 1.5x.After reviewing her research materials, Rodriguez formulates the following two conclusions:Conclusion 1Benefits of private equity real estate investments include owners’ ability to attain diversification benefits, to earn current income, and to achieve tax benefits.Conclusion 2Risk factors of private equity real estate investments include business conditions, demographics, the cost of debt and equity capital, and financial leverage.
In the event that Delphinus purchases Property 2, the due diligence process would most likely require a review of:
Option A:all tenant leases.
Option B:tenant sales data.
Option C:he grocery anchor lease.

Answer: C