Exam 23: Development: The Dynamics of Creating Value

Even the smallest building project involves a multitude of separate contractors to complete construction.Therefore,it becomes difficult for the developer to monitor the construction process.Which of the following individuals serves as the developer's liaison and representative on the project site?

After construction has been completed,a developer may decide to seek additional financing.If current interest rates are relatively high,but the developer expects them to decline in the near future,the developer would most likely seek financing in the form of a:

The second stage of the development process requires an analysis of the project's feasibility.The developer will typically begin this stage of the development process with which of the following types of analysis?

Once a specific use has been chosen for a site,the first stage in the development process,often considered the "entry ticket to development," is:

Since the architect can be involved in various stages of the development process,there are a number of methods used to compensate him for his services,each of which may depend on the particular phase of development.If the architect provides pre-design services or schematics early in the development process,he will typically be compensated:

The developer will face a variety of costs throughout the project's life.Which of the following would be classified as a soft cost?

Suppose that a developer pre-leases space to a financially strong,national tenant such as Home Depot,without having yet built the structure in which they will be leasing space.This is more commonly referred to as a:

There are a number of ways that a developer can finance the establishment of site control,each with its own advantages and disadvantages.Which of the following methodologies calls for only the initial land rent to be paid out before development actually gets under way?

The majority of financing for the acquisition of land for development is most likely to come from which of the following parties?

The strength of a successful developer lies in his or her ability to select design professionals and engineers that play vital roles in the project's plan and completion.Which of the following individuals would be most concerned,on a general level,with the design aesthetics,optimal use and preservation of the site,traffic flows,utility systems and drainage systems?

Development involves a complex organization of many moving parts.Which of the following choices is often viewed as the single greatest cause of project delays and cost overruns?

In each stage of the development process,the developer faces risks that can have a profound impact on the success of the particular project.Which of the following risks is of primary concern after the construction phase has been completed?

Since banks seldom loan 100 percent of construction costs,developers often turn to mezzanine financing to obtain necessary funds.With mezzanine debt,which of the following entities is typically pledged as collateral to the lender?

With a multitude of players involved in the development process,it is important to understand where they participate within the various stages of development.Which of the following individuals is the least likely to be involved in the design stage of development?

In more complex development projects,a developer may choose to combine the roles of the architect and general contractor into one in order to mitigate design-cost conflicts that otherwise must be negotiated when plans are revised.This arrangement is more commonly referred to as a:

Suppose that a development group would like to determine if the local zoning and land-use ordinances will permit the type of development they desire.However,they do not want to be obligated to purchase the property if they find that their proposed development will not be permitted.To gain control of the site without being obligated to perform,the development group should purchase which of the following?

For all but the largest of developers,the marketing and leasing of the project will be through an external broker.Given their special knowledge of the target market,it would be most beneficial for the developer to bring the broker into the development process during which of the following stages?

Based on your understanding of the relation between risk and the phases of an income producing property's life,which phase would you expect to entail the highest risk?

With a site under control,the developer will begin to evaluate the feasibility of the project.The main tool that a developer will use in determining the financial feasibility of a project is:

In considering the main components of a construction budget,which costs would be expected to constitute the largest portion of a development project's expense?