Real Estate week 5

# Planation points rec eiv ed chapter 9 pages

This preview shows page 1. Sign up to view the full content.

This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: tenant i n r etai l space to achi eve a cer tai n l evel of sal es or the l ease wi l l be ter mi nated. 2 of 2 (TCO 7) Whi ch of the f ol l owi ng does the ter m anchor tenant usual l y r ef er to? Som eone w ho l eases space The l ar gest tenant i n an of f i ce bui l di ng https://f r a me se t.ne xt.e c olle ge .c om/( NEXT( 41c 927c 49b) ) /Ma in/AllMode /Fr a me se tHybr id/Ge ne r a lFr a me se tVie w.e d 2/5 8/12/13 Gr a de book De ta il A depar tm ent stor e i n a m al l The tenant w ho pays the hi ghest r ent i n a m al l Ins tr uc tor Ex planation: Points Rec eiv ed: Chapter 9, Pages 280, 284 An anchor tenant r ef er s to a tenant that l eases a ver y l ar ge amount of space, usual l y a depar tment stor e i n a m al l . Comments : 7. Q ues tion : Student Ans wer : 0 of 2 (TCO 7) Whi ch of the f ol l owi ng i s TRU E f or a net l ease? Al l expenses ar e pai d by the ow ner Al l expenses ar e pai d by the tenant Al l expenses ar e pai d by the l ender Al l expenses ar e pai d by the i nvestor Ins tr uc tor Ex planation: Points Rec eiv ed: Chapter 9, Pages 272­273 Al l expenses ar e pai d by the tenant under a net l ease. Comments : 8. Q ues tion : Student Ans wer : 2 of 2 (TCO 7) Assume compar abl e sal es data shows that a capi tal i zati on r ate of .095 i s opti mal . If a subject pr oper ty has a NOI of \$27,500, what val ue woul d a cap r ate appr oach yi el d (r ounded)? \$289,474 \$305,556 \$289,447 \$287,958 Ins tr uc tor Ex planation: Points Rec eiv ed: Chapter 10, Page 302 Val ue = NOI / R = \$27,500 / .095 Comments : 9. Q ues tion : Student Ans wer : Ins tr uc tor Ex planation: Points Rec eiv ed: 2 of 2 (TCO 7) Whi ch of the f ol l owi ng f actor s i s NOT par t of the def i ni ti on of mar ket val ue? Paym ent i s m ade i n ter m s of cash i n U .S. dol l ar s or a compar abl e f i nanci al ar r angement The pr oper ty has been on the open m ar ket f or l ess than a y e ar Buyer and sel l er ar e typi cal l y m oti vated Pr i ce i s not af f ected by speci al or cr eati ve f i nanci ng Chapter 10, Page 296 Mar ket val ue r ef er s to when a payment i s made i n ter ms of cash i n U .S. dol l ar s or a compar abl e f i nanci al ar r angement, the buyer and sel l er ar e moti vated, and the pr i ce i s not af f ected by speci al or cr eati ve f i nanci ng. 2 of 2 Comments : https://f r a me se t.ne xt.e c olle ge .c om/( NEXT( 41c 927c 49b) ) /Ma in/AllMode /Fr a me se tHybr id/Ge ne r a lFr a me se tVie w.e d 3/5 8/12/13 Gr a de book De ta il 10. Q ues tion : Student Ans wer : (TCO 7) Whi ch of the f ol l owi ng steps nor mal l y woul d be used i n the cost appr oach to val ue? Esti m ate net oper ati ng i ncom e of the pr oper ty Mul ti pl y accr ued depr eci ati on by the assessed cost Add actual constr ucti on costs to the l and val ue Subtr act accr ued depr eci ati on f r om the r epl acem ent cost Ins tr uc tor Ex planation: Points Rec eiv ed: Chapter 10, Pages 324­327 The step of subtr acti ng accr ued depr eci ati on f r om the...
View Full Document

Ask a homework question - tutors are online