SIX PART QUESTION

RETAIL REIT acquires CORE SHOPPING CENTER on 10/1/2020 for $30,500,000. Cash flows end up exactly as forecasted. However, RETAIL REIT decides to sell the property at the end of Year 7 instead of Year 10. The sale price is $35,500,000. It will cost RETAIL REIT 2% of the sale price in closing costs.

1. What was RETAIL REITs unlevered IRR? Include the cost of sale.
   1. 8.31%
   2. 8.07%
   3. 8.25%
   4. 9.12%

2. What is the prepayment penalty?
   1. $191,125
   2. $190,816
   3. $200,000
   4. $198,250

3. What are the net proceeds to RETAIL REIT upon sale? Do not consider original equity contribution.
   1. $16.2 Million
   2. $15.7 Million
   3. $34.6 Million
   4. $15.5 Million

4. What component of the development process is most related to risk?
   1. Construction
   2. Management
   3. Completion and Occupancy
   4. Sale

5. You own 1.5 acres of land in a bustling metropolis. The city will allow a FAR of 2.75:1. How many SF of building can be constructed on your site?

1. 43,560
2. 179,685
3. 239,580
4. 196,020

6. A 150,000 SF shopping center has a 4 per 1,000 parking ratio. There are currently 625 parking spaces. True or False; the center is adequately parked.

1. True
2. False