Real Estate Ownership Structures
and Waterfalls (last topic !!)
Wally Boudry
Spring 2016Admin
Final Exam
I will post it on Blackboard at 8am on May 11th
It is due at 11.30am on May 18th
You can work in gro
...
Real Estate Ownership Structures
and Waterfalls (last topic !!)
Wally Boudry
Spring 2016Admin
Final Exam
I will post it on Blackboard at 8am on May 11th
It is due at 11.30am on May 18th
You can work in groups of up to 3 (I’m feeling nice)
The format is the same as for the case (you are working up an IC
report) although for an apartment building
You can hand in a hard copy of your write up (465A) and email me your
model or you can email me both.
If you email me your write up, I strongly suggest sending a PDF file (all
I’m going to do is hit the print button, so if it isn’t formatted correctly I
will assume you planned to hand in gibberish.)
If I can’t follow the numbers in your write up, I may look at your model
(if I can’t understand what you have done in your model, I will assume
you just made up the numbers.)
I get really cranky about extensions for the final exam, so think
carefully before you ask for one because it will likely cost you a
full letter gradeAdmin
The case is due next Tuesday
I will be around on Friday if you still have questions
For the MLAs I left out the lease terms
Large: 10 year lease
Small: 5 years lease
Café: 10 year lease
TE means Tenant Electric
So the MLAs are a base year stop on CAM and RE Taxes, plus a $1.75
PSF fixed tenant electric charge
CAM includes CAM electric but not “electric” (which is tenant electric)
Operating expenses should be escalating at the general
inflation rate of 2.5%
Note: I’m expecting to see a pretty wide range on pricing for
the asset, because there are two very different ways you can
view the asset (both are equally correct, just different)The Idea
So far we have seen how to value a property
In doing this we paid little attention to how
we “owned” the property
The goal of this lecture is to:
Introduce the different ways we can potentially
“own” a property and the gremlins that each
entails
Learn how to model partnership waterfalls
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