Exam 17: Sources of Commercial Debt and Equity Capital

There are a number of ways in which individual and institutional investors can hold investments in commercial real estate as a part of their portfolio.One way is to purchase and hold the title to the actual commercial property,which gives the owner complete control of the asset.This type of transaction would be considered which of the following?

The choice of ownership form for pooled equity investments depends heavily on federal tax considerations.Which of the following ownership structures suffers from the major disadvantage of double taxation?

Up until the market for these instruments collapsed in 2008,which of the following was the fastest-growing source of long-term commercial mortgage funds from 2002-2007?

One measure of the importance of a publicly traded asset class in the U.S.economy can be calculated by multiplying the number of publicly traded shares by the current market price of the stock.The result of this calculation is more commonly referred to as:

There are two major types of REITs: Equity REITs and Mortgage REITs.Each differs in terms of what they invest in.Which of the following choices best describes the investment focus of an Equity REIT?

Given the following information,calculate the funds from operation (FFO).Net income: $1,200,000,Gain/losses from infrequent and unusual events: $0,Amortization of tenant improvements: $120,000,Amortization of leasing expenses: $75,000,Depreciation (real property): $2,675,000.

In most pooled ownership forms a single partner is empowered to act on behalf of the investors in terms of making property investment decisions.Based on your understanding of the different types of pooled ownership which of the following structures would we expect this issue to be the least prevalent?

In contrast to public markets,private markets are characterized by individually negotiated transactions that take place without the aid of a centralized market.Therefore,private markets will generally have:

Though difficult to accurately measure,the market value of U.S.real estate held by non-real estate corporations is estimated to exceed $10 trillion.All of the following are examples of noninvestible commercial real estate EXCEPT:

In recent years,which of the following pooled ownership structures are used by private funds that are trying to attract capital from very high net worth and institutional investors?

The choice of ownership form for pooled equity investments can also depend on the desire to avoid personal liability.Which of the following ownership structures suffers from the major disadvantage of unlimited liability for all investors?

Real estate private equity funds can focus investment on anything from "Class A" real estate to redevelopment in the urban center.On the risk-return spectrum,which of the following private equity fund categories tends to have a heavier development component and Often involves investment in riskier property types and locations?

In recent years,a number of pooled ownership structures have emerged that have changed the analysis of ownership form selection for many investors.Which of the following ownership structures is generally used for small,local investments that are marketed to accredited,but non-institutional investors?

Most real estate investment trusts (REITs)are actively managed operating companies that typically focus their investments either by property type or geographic market.Which of the following commercial property types represents the largest proportion of REIT market value?

The syndication agreement generally creates a principal/agent relationship in which the syndicator (agent)is empowered to act on behalf of the investors (principals).In most principal/agent relationships,there is the concern that the agent will act in the agent's best interest,not in the best interests of the principal.This issue is more commonly referred to as:

When investing in commercial real estate through an intermediary,it is important to consider whether the fund has a finite or infinite life.By having a finite life,the fund manager is forced to eventually dispose of the assets and return the investors' capital.With which of the following fund structures do you expect the issues associated with finite life to be least prevalent?

Which of the following measures,equal to the estimated total market value of a REITs underlying assets,allows investors to compare the value of a publicly traded security to the value of the properties that it holds in the private market?

Of the $3.2 trillion in outstanding mortgage debt in the U.S. ,approximately 714% is privately held by institutional and individual investors.Which of the following institutions is the largest single source of private mortgage funds?

The estimated market value of investible commercial real estate in the United States at the end of 2011 was approximately $6.5 trillion.In terms of market size,which of the following asset categories is most closely related to commercial real estate?

When fund managers collect contributions from multiple sources and "commingle" them to purchase properties,this is referred to as the use of commingled real estate funds.Which of the following institutional investors utilize commingled real estate funds for approximately one-half of their investments in real estate?