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FINC 371 (Peterson) Final Exam Questions & Answers 100% Correct!! £10.10   Add to cart

Exam (elaborations)

FINC 371 (Peterson) Final Exam Questions & Answers 100% Correct!!

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  • Module
  • FINC 371
  • Institution
  • FINC 371

Ch. 11 - ANSWERResidential Land Uses Types of Residential Development - ANSWER1. Single-family detached -> privacy, elbow room, best resale value 2. Single-family attached -> lower development costs per unit, higher density, less yard work, shorter utility lines (town houses, plexes, ...

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  • August 5, 2024
  • 21
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • FINC 371
  • FINC 371
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FINC 371 (Peterson) Final Exam Questions & Answers 100% Correct!!



Ch. 11 - ANSWERResidential Land Uses



Types of Residential Development - ANSWER1. Single-family detached

-> privacy, elbow room, best resale value



2. Single-family attached

-> lower development costs per unit, higher density, less yard work, shorter utility lines (town
houses, plexes, patio or zero-lot-line)



3. Multifamily

-> don't need a down payment, no maintenance/yard work, allow you to live in certain areas you
normally couldn't (condos and coops)



4. Manufactured homes (mobile homes)

Pro: -> economies of scale in construction, better lending standard

Con: -> Reputation, typically decrease in value over time, lenders treat as personal property



5. Second homes

-> typically for leisure-time enjoyment (time shares)



Market and feasibility analysis - ANSWER1. Delineation of market area

-> must explain employment opportunities or commuting ranges



2. Analysis of recent economic trends in the local market

-> past and current trends (vacancy rates, etc)



3. Determination of changes in demand factors (demand feasibility)

-> changes in disposable income, population, absorption rate, etc)



4. Analysis of potential future supply

,-> long gestation period, examine what lies behind the trends



Financial feasibility analysis - ANSWER- Analyze profitability

-> leveraged vs leveraged IRR and NPV



- Analyze sources of capital

-> equity vs debt, "capital stacking"



- Analyze timing of cash flows



Mezzanine financing - ANSWER10% equity



20% mezzannine loan financing



70% senior debt




Historically, shopping was done in the _____ - ANSWERCBD

-along main street



Distinguishing characteristics of modern shopping centers - ANSWER-1 or more structures of unified
architecture housing firms selected and managed as a unit for benefit of all tenants



- Site serves a particular trade area



- On-site parking



- Facilities for deliveries separated from shopping area



- Single ownership and management

, Categories of shopping centers - ANSWER- Neighborhood center

- Community shopping center

- Regional shopping center

- Super-regional shopping center



1st suburban shopping center = - ANSWERcountry club plaza, Kansas City



Neighborhood Shopping Center - ANSWERAka Convenience Center (supermarket or drugstore)



-Radius of 1.5 miles

-Population 2,500-40,000

-Grocer-anchored

- Gross Leasable area-- 30,000 to 100,000sf.

i) 50K is typical

-"strip style"



Community Shopping Center - ANSWERAka Discount Shopping Center (discount or junior
department store)



-Radius of 3-5 miles

-Population of 40,000-100,000

-Built around a discount store

- Gross Leasable area-- 100,000 to 300,000sf.

i) typically 150,000sf



Regional Shopping Center - ANSWER-Super Center



-Radius of 50 miles

-Population of 150,000+

-Consists of 1-2 department stores

-Open or enclosed pedestrian malls

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