Midterm Review

deed

Written document which transfers actual ownership to another person.

title

the legal way of saying you own something

lease

A contract between an owner and a user of property.
the owner (lessor) receives financial compensation and in exchange, the tenant (lessee) is given the right to operate his or her business on the property.

Eminent Domain

the right of a government or its agent to expropriate private property for public use, with payment of compensation.

Environmental Issues

Can range from groundwater and soil contamination to materials used in buildings-Past uses and expected uses come into play

writing

contracts must be in ________

deed

ownership transferred through _________

#NAME?

Who can an in-house counsel be employed by?

-track activities in the market continually
-know what spaces are coming up for lease, who is looking for space, what space would fit
-work with tenant to analyze negotiate best deal
**Middle man

What are some broker duties?

any way possible

how do brokers find clients

rent per square foot x how many years x negotiated percentage

how are brokers paid

only if/when deal closes

when do brokers get paid

optimizing asset return
branding, repositioning asset, re-leasing space to new tenants
*does NOT include acquisition, financing, underwriting of new asset

what are asset managers responsible for

high reward
unlimited earnings

In development there is high risk, yet

length

term of loan

negotiated conditions

terms of loan

opportunisitc
value-add
core-plus
core

What are the 4 investment categories

concept commitment closing

What is the sequential process of acquisitions?

Asset Allocation
Investment policies
Investment Strategy
staffs job is to implement

Institutional investors have governing boards with authority over

Portfolio diversification
Income
Inflation hedge

why add real estate to a portfolio?

equity - common
equity - preferred
mezzanine debt - higher risk/ret.
b note - second mortgage
base - first mortgage

what is the capital stack?