Midterms
I’ve graded about half of them and I’ll have the
rest done for next Tuesday
So we’ll talk about them in detail then
It looks like there is some stuff we still need to work on,
but that is good to know
...
Midterms
I’ve graded about half of them and I’ll have the
rest done for next Tuesday
So we’ll talk about them in detail then
It looks like there is some stuff we still need to work on,
but that is good to know so we can work on it…
As a class you are the greatest proponents of
hope notes known to real estate (even if they
don’t actually make sense for the transaction)
Given the wave of refinancing we are going to be
doing in the CMBS market in the next couple of
years, it seemed like the asset would be timely
deal to go through
When I first found it I was just looking for an asset
having trouble refinancing, I didn’t know the whole deal
was so “special”Leases Homework
The leases homework is due on the 26th
Feel free to just hit print and kill trees
What you report in the leasing file for expenses is the reimbursement
from the tenant to the landlord.Case
The case is up on Blackboard (in the homework section)
It is due in the last class (May 10th.)
Notes/Warnings/Suggestions
You will have to find information about the asset (CoStar in the
library is a good starting point)
The correct answer isn’t the price the property sold for or any
loan the property has – think of them as ballpark type numbers
You will need to come up with your own assumptions about
going in and going out cap rates, IRR benchmarks etc.
Model the financials as I have them stated in the case, but if
you disagree with those assumptions feel free to provide an
additional alternative pro forma
I strongly advise using Argus to do the modeling – unless you
are highly proficient in excel, you are unlikely to get numbers
that make sense
I suggest working in groups (up to 3), because there is a lot of
work to do and multiple sets of eyes help catch mistakes in the
modeling – this is one place where the free rider problem canCase
Notes/Warnings/Suggestions
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