RE 618 / Fin 618 Real Estate Investment Analysis
Homework Effective Rent Solutions
Dr. Stanley D. Longhofer
1) A tenant would like to lease 4,000 square feet of space over the next ten years, and is
evaluating the following alternatives:
Option 1: Gross l
Real Estate Investment Analysis
Sale-Leasebacks - Solutions
Initial Property Assumptions
Gross leasable area
85,000 sf
Construction costs
12,500,000
Building value percent
80.00%
Depreciable basis
10,000,000
Depreciation schedule
39.0 Years
Mortgage amoun
Real Estate Investment Analysis
After-Tax Investment Analysis Solutions - Part a
Property Assumptions
Property and purchase assumptions
Property size
Rent
Vacancy allowance
Operating expense ratio
Purchase price
Acquisition costs
Date property will be put
RE 618 / Fin 618 Real Estate Investment Analysis
Homework Disposition Analysis
Dr. Stanley D. Longhofer
1) Five years ago, Bob the Builder developed a 15,000 square foot shopping center for $1.8
million. This property generated NOI of $180,000 in the firs
RE 618 / Fin 618 Real Estate Investment Analysis
Homework NOI, Cap Rates and Multiplier Analysis Solutions
Dr. Stanley D. Longhofer
1) Vinnie is considering investing in a commercial office building in downtown Wichita.
The building has 140,000 square fee
RE 618 / Fin 618 Real Estate Investment Analysis
Homework Estimating Reversion Values Solutions
Dr. Stanley D. Longhofer
1) A small office building in Hutchinson is expected to generate annual NOI of
$120,000 in each of the next five years. It can be purc
RE 618 / Fin 618 Real Estate Investment Analysis
Homework Commercial Property Finance Solutions
Dr. Stanley D. Longhofer
1) Consider a property with a first-year expected NOI of $450,000 that can be purchased
for $5.6 million. Financing is available with
RE 618 / Fin 618 Real Estate Investment Analysis
Homework Selecting Discount Rates Solutions
Dr. Stanley D. Longhofer
1) Livia is trying to determine the appropriate discount rate for analyzing a Class A
apartment property in Memphis, TN. She has establis
RE 618 / Fin 618 Real Estate Investment Analysis
Homework Valuing Leasehold Interests Solutions
Dr. Stanley D. Longhofer
1) Six years ago you entered into a 10-year lease for 8,000 sf at $15.00 psf gross. Now
market rent for this space is $13.00 psf. You
Real Estate Investment Analysis
Before-Tax Investment Analysis Solutions
Property and purchase assumptions
Property size
Premium space
Premium rent
Secondary space
Premium rent
Rent growth during holding period
Vacancy allowance
Operating expense ratio
Pu
Real Estate Investment Analysis
Fall 2013
Midterm Exam 1 Version A Solutions
Dr. Stanley D. Longhofer
MW 9:30-10:15
1) (30 points) Schroeder must decide whether to invest in an apartment complex with
180 units. Of these, 60 lease for $900 per month, 90 le
Nickname for grades_
Name _
Real Estate Investment Analysis
Fall 2013
Midterm Exam 1 Version A
Dr. Stanley D. Longhofer
MW 9:30-10:45
DO NOT OPEN THIS EXAM UNTIL I GIVE YOU PERMISSION TO BEGIN!
Midterm exam rules:
1. You may use one, 8 x 11 inch page of n
RE 618 / Fin 618 Real Estate Investment Analysis
Homework Commercial Property Markets and Leases Solutions
Dr. Stanley D. Longhofer
1) In class we discussed that there is no such thing as a single real estate market.
Instead, real estate space markets are