Main Question Set 9 Which of the following building descriptions best fits a 'class B' property? An office building built 15 years ago close to the central business district that requires some renovation A newly built corporate building in a suburban area. A high-rise built 5 years ago built in the heart of the central business district. A small convenience store built 25 years ago in a rural area. 10 Select ALL the reasons why heavy industrial properties are less desirable as collateral for a loan. Review Later If the tenant defaults, there will be many costly modifications to make the property marketable for other tenants. Heavy Industrial properties often have features that support heavy manufacturing or processing functions that can increase the of environmental contamination If the tenant defaults, the property will be less desirable for future tenants, as it previously held a failed company. If the tenant defaults, it is unlikely to find a new tenant that requires the same specifications for the property 00 Assuming there are 5 tenants, which of the following lease maturity profiles would get the strictest loan terms from a real estate lender? Leases expiring in: 6, 9, 12, 24, 36 months Leases expiring in: 12, 12, 12, 12, 12 months Leases expiring in: 12.24, 36, 48, 60 months Leases expiring in: 24, 24, 24, 24, 24 months Main Question Set 7. What is the influence of environmental issues on the real estate lending transaction? An increase to minimum debt service requirements Potential termination of the deal altogether OOOO An adjustment to shorten the amortization period A downward adjustment of the LTV