Re Finance

Topics: Lease, Renting, Leasehold estate Pages: 4 (1024 words) Published: March 19, 2013
RE Finance
Bring to class.
Due on 3/19.

PART 1
Mac Development Corporation Problem Set
It will help the discussion if you bring an extra copy of your answers to class & the case for reference

Download case (approx. $4 charge)
Mac Development Corporation Case Study Reference
https://cb.hbsp.harvard.edu/cbmp/access/17117433

Four Major Areas
1. ID Risks
a. “Imagine that you are a real estate developer who saw the 41-acre site the week before Dick McCaffrey did in August , 1999. Why would you decide not to pursue the purchase of the property? b. Major Factors & Risks & Probability of success

c. What is the probability of success for the Phoenix Project? i. Probability for each part
ii. Joint probability
2. Risk Management
a. What is your assessment of how well McCaffrey managed the risks? b. What is the most important thing McCaffrey did to manage the risks? c. How much uncertainty is reduced by each of these actions? d. Why did McCaffrey attack the five primary risks in the order he did? i. Criticisms?

3. Economics of the Phoenix Project (Potential payoffs)
a. Do the returns justify the all the risks McCaffrey has taken? 4. Action Issues
a. Outcome of Village Meeting?
b. Outcome of Abatement (TIF and assessment)?
c. Agreement on final purchase price?
d. Getting the loan?

PART 2
Read the Cycle Pro LLC lease in the Litewood building posted on D2L. Fill out the following information as best you can. Indicate any caveats, inconsistencies, or things that are not clear in the lease. 1. Square Feet leased?

The Lessor leases to Lessee approximately 5,308 rentable square feet of space on the south side of the first floor of the property located at 3575. 2. Rent and options and their respective rent? (please quote rents in $ psf per year) Lease year foot Annual rent...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • BTEC Business Level 3
  • sources of funds Essay
  • Essay on Assignment 1
  • Sources of Business Finance Essay
  • Describe Sources of Internal and External Finance for a Selected Business, Unit 2 P4 Essay
  • Essay about Agricultural Finance
  • sources of finance Essay
  • res judicata Research Paper

Become a StudyMode Member

Sign Up - It's Free