Tommy purchased a property based upon a 7% overall rate with a net income of $30,000, which included $10,000 of capital improvements. What is the indicated overall rate from this sale?

A retail strip center sold at a 9% capitalization rate with financing being provided with an 75% loan-to-value ratio and a debt coverage ratio of 1.25. What is the implied mortgage capitalization rate?

A property recently sold with an Io of $32,000. The land value is estimated at $65,000 and the current rate to the land is 9.5%. What is the property value if we assume that the building capitalization rate is 100 basis points higher than the land capitalization rate?

What would property taxes be in this scenario? An office/warehouse sold for $2,000,000 based upon a market overall rate of 9.5% applied to Io, if net income before taxes (NIBT) is $240,000?

A warehouse recently sold for $575,000 with an Io of $63,200. Let's assume the overall rate to the land is 9.2%. What is the indicated overall rate to the building?

A warehouse recently sold for $575,000 with an Io of $63,200. Let's assume the overall rate to the land is 9.2%. Given a 21.22% land-to-value ratio, what is the capitalization rate of the building?

A warehouse recently sold for $575,000 with an Io of $63,200. Let's assume the overall rate to the land is 9.2%.Given a 21.22% land-to-value ratio, what is the value of the land?

What is the terminal cap rate?

NOI - $275,000
lo & Vo are increasing at 3% per year
Yo & Ycf = 12%
Holding Period is 5 years

What sort of lease structure allows the owner to participate in the sales of the retail tenant?

What happens to the mortgage constant for the following structures over time in an amortization schedule?

Rm = 9%, i = 10%

What happens to the mortgage constant for the following structures over time in an amortization schedule?

Rm = 11%, i = 10%

What happens to the balance for the following structures over time in an amortization schedule?

Rm = 10%, i = 10%

What happens to the balance for the following structures over time in an amortization
schedule?

Rm = 11%, i = 10%

What type of mortgage structure does this represent?

Rm = 9%, i = 10%

What type of mortgage structure does this represent?

Rm = 11%, i = 10%

What is the value of the part taken?

What is the recommendation for total compensation?

What is the after value?

A road-widening project includes plans to take .53 acres of a 3.5 acre tract. The property is improved with a retail center with 38,115 square feet. The center is currently 95% occupied, but one tenant (5000 sf) already has decided to move out because the parking will be affected by the taking. The tenant would have renewed for 3 years at $1.00 psf per month. The adjacent land-owner may be willing to sell .53 acres for $7.50 psf (market value is $4.50 psf).
The following assumptions apply.
(1) Land value before $3.00 psf
(2) Improvements before:
(a) Retail center - $1,325,000 (replacement cost = $1,750,000)
(b) Parking - $2.00 psf * 100,000 sf (replacement cost = $2.50 psf)
(c) Signage - $25,000 (replacement cost = $30,000)
(3) Taking:
(a) .53 acres of land
(b) Parking – 21,000 sf
(c) Signage – all
(4) The new sign permit is $4,000. New signage will cost $30,000 including the sign permit. The center would be significantly impacted without signage.
(5) The retail center will lose $5 psf in value because of parking, unless the adjacent owner sells the land.
(6) Given no land acquisition, a drive for new access will have to be constructed along the north side of the building because ingress will be changed. The drive would cost $20,000 and $5,000 in landscaping would be removed
(7) Similar properties are selling based upon a 15% overall yield.

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Question 1:
What is the before value?

The Median is:

The chances of obtaining a value between $80 and $120 for the above, if randomly drawn is:

The future value of $1 per period for year one is:

Given a decrease in interest rate line 3 will:

Given a change in interest rates, can the relationship between the lines representing the 6 basic functions of $1 “change”?

Which of the 6 basic functions is always the lowest line at any interest rate?

Which distribution has the highest mean?

Which distribution has the highest mode? Assume equal scales on the X and Y axis.

Line one represents the following financial function:

Line two represents the following financial function:

Line four represents the following financial function:

Given a graph of factors at a higher interest rate, line three would:

Which Distribution has the highest mean?

Which distribution has the highest standard deviation?

Assuming five of the six functions of $1 are represented, which line represents the sinking fund factor?

Which lines would overlap and be the same lines if the interest rate was zero?

Which line represents the present value of $1?

Which distribution has the highest mode?

Which distribution has the highest mean?

Line four represents the following financial function:

Line one represents the following financial function:

The market tenant improvement allowance is $12 psf, assume a market rent of $17.00 psf for 3 year leases. What should be the rental rate (psf per year) for a market yield rate of 12.5% for annual discounting and a tenant allowance of $12.00 psf?

Given that percentage rent of 8%, a value of $280,000, OER (on EGI) of 44%, Ro = 14%, and vacancy of 9%, what are the annual sales?

Net income before property taxes & allowance for replacements) = $55,000 (excluding taxes & reserves)
Ro from sales with an allowance for replacements & property taxes in the expense estimates = 16%
Reserves are 1.8% of value and property taxes are 3.4% of value.
Yo = 18% (Discount rate in cash flow analysis)
=======================================
What is the value?

What is the value assuming a 5 year tax abatement?

According to the given conditions; Which one is larger Re or Ye?

* Property sold had an Ro of 10%
*Income and value are expected to remain the same
*Rm is 11% with the loan being amortized over 20 years at 10.25%.

What is the relationship of RFS to RLF? When the sales from the market are of leased fee interests (multi-tenant properties)?

Note: Rents are rising and contract rents tend to somewhat lag market rents.

If income is increasing and Ro remains stable, which of the following is true?

In most analysis, which is greater the RLF, RLH, or RFS?

Why is a discount rate used instead of R in Leasehold valuations?

Which of the following is a cash flow rate to an investor?

A seller sold a property worth $2,000,000 for $2,200,000 with 20% down and a note at 5% interest only for 7 years, with monthly payments.

What is the applicable discount rate for the seller financing?

What is the net effective monthly rent if an owner offers 12 months free on a 60 month lease,
with the nominal rate being $15.00 psf/year and the Yo being 13%?

What is the appropriate way to value a life estate?

Taking the given conditions; what will happen to the Ro?

* Io decreased 20%
* EGIM decreased 20%
* Value remains the same

What is the percent change in the equity position assuming value increases 10% in 5 years?

* DCR is 1.25
* Rm = .10
* 20% down-payment
* Monthly payments for 15 years
* Ye = 15%

A property was purchased with $200,000 down. The Re was 6%, but equity increased 1% per year for 4 years. The after resale proceeds were $250,000. What is the Ye?

Using the following information, what is the discount rate?

* Ro = 10.5%
* RN = 8.5%
* N = 5 years
* Io increases 2% per year compounded

Compare valuing a property with a DCF or mortgage-equity analysis such as use of Elwood.
Which yields the higher value?

The net present value of cash flows is $1,000 when discounted at 11% and $500 when discounted at 12%.

What is the IRR?

If Ro ranges from 10% to 11% and financing is available at 8.5% with 25 year terms, what effect will an increase in loan-to- value ratio have on Re?

A property sold for $1,000,000 with property taxes of $10,000 based upon a frozen assessment. The Io was $100,000 at sale and the property is reappraised at sale for tax purposes with the local tax rate being 2%.

What was the expected Ro if the property is reappraised at sale?

Assume a total project cost of $1,000,000 with land, but excluding profit of 15% on project cost.

Assume a Yo of 13%, change in value of 10% over five years and level income.

What is the discount rate (Yo) applicable to this property if the 15% or $150,000 in profit was included in the total project cost?

Given the following annual cash flows, and a discount rate of 10%, what is equivalent level income?

250,000
300,000
278,000
450,000
533,000

A tenant is quoted a lease rate of $20 psf/year, with a $15 psf finish allowance (most tenants pay $10 to $20 psf over the allowance) on a 5 year lease. Assume the residual value of tenant finish is 20% of cost and the tenant wants a reduced rate for paying for all the tenant finish.

What monthly rental rate should be quoted if the investor yield is 12%?

A reversion is ________________.

What is Rm in 10 years if the following terms apply to a loan? Interest is 7%, 20 year payments (annual).

A lender has a note with terms of 75% loan-to- value, 8% interest, 20 year amortization (monthly payments) and one point paid up front. The loan term is 5 years.

However, the borrower may extend the loan for 3 additional years if they pay 1.5 points on the balance.

Assume the borrower will renew, what is the yield to the lender?