©SOPHIABENNET@2024/2025 Wednesday, August 21, 2024 12:13 PM
UNIVERSITY OF NORTH TEXAS AT DALLAS
UNIVERSITY OF GEORGIA (UGA)
UGA REAL 4000 EXAM 3 Dietz Study
Guide with Complete Solutions
In contrast to rent for residential units, rent for U.S. commercial
properties is typically quoted as a(n) - Answer✔️✔️-annual cost per
square foot.
In a neighborhood retail shopping center, a grocery store (e.g.,
Publix) often serves as a(n) - Answer✔️✔️-anchor tenant
Lenders may request that property owners of rental properties
include a clause in their lease agreement that gives the lender the
right to terminate the lease and evict the tenant, even if the tenant
has fulfilled all of its responsibilities under the lease, in the case
that the owner of the property defaults on her mortgage. This part
of the lease agreement is more commonly referred to as a relocation
option. - Answer✔️✔️-false
An office or retail landlord will often give a new tenant a certain
amount of ________ allowance to cover the cost of refurbishing the
rental space to meet the needs of the tenant's business. -
Answer✔️✔️-tenant improvement
1
, ©SOPHIABENNET@2024/2025 Wednesday, August 21, 2024 12:13 PM
UNIVERSITY OF NORTH TEXAS AT DALLAS
UNIVERSITY OF GEORGIA (UGA)
A concept called "concession" means that an owner must provide
the tenant with uninterrupted use of the property without any
interference from any entity that may threaten to impose upon the
tenant's leasehold interest in the property. - Answer✔️✔️-false
In making single-asset real estate investment decisions, the first
pass often involves calculating a series of returns, ratios, and
multipliers. Which of the following is often cited as a limitation
associated with this type of analysis? - Answer✔️✔️-They fail to
incorporate cash flows beyond the first year of the analysis.
T or F: BTCF is an unlevered cash flow, while NOI is a levered cash
flow. - Answer✔️✔️-false
Given the following information, calculate the cash down payment
(equity) required to purchase the specific property:
purchase price: $500,000;
loan amount: 75% of purchase price;
up-front financing costs: 2.5% of loan amount - Answer✔️✔️-134,375
Given the following information, calculate the debt coverage ratio
for this investment:
2
, ©SOPHIABENNET@2024/2025 Wednesday, August 21, 2024 12:13 PM
UNIVERSITY OF NORTH TEXAS AT DALLAS
UNIVERSITY OF GEORGIA (UGA)
potential gross income: $120,000;
vacancy rate: 9%;
net operating income: $60,000;
operating expenses: $51,300;
acquisition Price: $520,000;
debt service: $40,000. - Answer✔️✔️-1.50
Given the following information, calculate the going-in capitalization
rate for the specific property:
first-year NOI: $19,000;
acquisition price: $155,000;
equity investment: 20% - Answer✔️✔️-12.26%
If you look to rent a space in an office building that cost $25/sqft
(full-service) and has:
A total usable space for you (the tenant) of 2,000sqft
A total usable area in the building of 25,000sqft
3
UNIVERSITY OF NORTH TEXAS AT DALLAS
UNIVERSITY OF GEORGIA (UGA)
UGA REAL 4000 EXAM 3 Dietz Study
Guide with Complete Solutions
In contrast to rent for residential units, rent for U.S. commercial
properties is typically quoted as a(n) - Answer✔️✔️-annual cost per
square foot.
In a neighborhood retail shopping center, a grocery store (e.g.,
Publix) often serves as a(n) - Answer✔️✔️-anchor tenant
Lenders may request that property owners of rental properties
include a clause in their lease agreement that gives the lender the
right to terminate the lease and evict the tenant, even if the tenant
has fulfilled all of its responsibilities under the lease, in the case
that the owner of the property defaults on her mortgage. This part
of the lease agreement is more commonly referred to as a relocation
option. - Answer✔️✔️-false
An office or retail landlord will often give a new tenant a certain
amount of ________ allowance to cover the cost of refurbishing the
rental space to meet the needs of the tenant's business. -
Answer✔️✔️-tenant improvement
1
, ©SOPHIABENNET@2024/2025 Wednesday, August 21, 2024 12:13 PM
UNIVERSITY OF NORTH TEXAS AT DALLAS
UNIVERSITY OF GEORGIA (UGA)
A concept called "concession" means that an owner must provide
the tenant with uninterrupted use of the property without any
interference from any entity that may threaten to impose upon the
tenant's leasehold interest in the property. - Answer✔️✔️-false
In making single-asset real estate investment decisions, the first
pass often involves calculating a series of returns, ratios, and
multipliers. Which of the following is often cited as a limitation
associated with this type of analysis? - Answer✔️✔️-They fail to
incorporate cash flows beyond the first year of the analysis.
T or F: BTCF is an unlevered cash flow, while NOI is a levered cash
flow. - Answer✔️✔️-false
Given the following information, calculate the cash down payment
(equity) required to purchase the specific property:
purchase price: $500,000;
loan amount: 75% of purchase price;
up-front financing costs: 2.5% of loan amount - Answer✔️✔️-134,375
Given the following information, calculate the debt coverage ratio
for this investment:
2
, ©SOPHIABENNET@2024/2025 Wednesday, August 21, 2024 12:13 PM
UNIVERSITY OF NORTH TEXAS AT DALLAS
UNIVERSITY OF GEORGIA (UGA)
potential gross income: $120,000;
vacancy rate: 9%;
net operating income: $60,000;
operating expenses: $51,300;
acquisition Price: $520,000;
debt service: $40,000. - Answer✔️✔️-1.50
Given the following information, calculate the going-in capitalization
rate for the specific property:
first-year NOI: $19,000;
acquisition price: $155,000;
equity investment: 20% - Answer✔️✔️-12.26%
If you look to rent a space in an office building that cost $25/sqft
(full-service) and has:
A total usable space for you (the tenant) of 2,000sqft
A total usable area in the building of 25,000sqft
3
