Condo Sales Case

The real estate division was estimated to have a fair value of $13,890,000. This was determined by totaling the number of lots expected to sell within the next four years and multiplying it by the price per lot of $180,000. After determining total lot sales, a 20% discount rate was applied as suggested by current market conditions. Given the unique nature of the real estate development, it is not believed that there are any comparable developments to find a market multiple.

1. Using a similar approach as example 2.3 (textbook page 75): “Finding the Sale Price of Items in a Department Store”, provide your analysis for the following problem statement:

The following information has been provided by the Evans Retail Stores, Inc., for the first quarter of the year:

This report will review the property of 101 Richmond St. East, Toronto and analyze it as potential investment for Allied Properties REIT. The key characteristics of the firm will be evaluated and an analysis of the property (based on location, size, building type and overall appeal) will determine its compatibility as a new investment for Allied’s Portfolio.

If you’re looking to live right in the lap of luxury, consider purchasing one of the gorgeous condos inside of Bel Aire On The Ocean. The name alone says it all. If you enjoy having lots of fun right on the ocean, a condo in this eighteen-story building is the one to purchase. There will be night when you’d like to lay back and enjoy a fun night with friends. The building comes complete with a full recreation room. There’s a billiards table for games and a plush movie and television room. There’s also a breathtaking view of the ocean to top it all off. If your main concern involves your safety, the Bel Aire On The Oceans is safeguarded with 24-hour security. This allows you to sleep peacefully knowing you’re protected. In addition to sitting

Rent will be collected on a monthly bases. Monthly rent was determined by multiplying the sale price of the subject property by 1% and adding in utilities and addition fees. This amount was calculated to be $1,485 monthly for year one. Which is high for this area. Vacancy losses were determined by multiplying potential gross income by 10%. Miscellaneous income will be $500.00 for the first year in fees for maintenance, repairs, and so on. This amount will be charged every two years. This resulted in an Effective Gross Income of $16,535.06. Operating expenses are broken in two categories: fixed expenses and variable expenses. In the fixed expenses I estimate yearly taxes and insurance based upon local rates. For variable expenses, I will not incur any utility or garbage collection expenses as the tenants will be paying these. The repairs and expenses were estimated to be $250 each and incurred every other year for $150 thereafter. This results in our total operating expenses. The capital expenditures equal our tenant improvements of

1. Ocean view units (south-facing), have a good view of the pool and face the beach and ocean. Bay view units (units to the rear of the building), face an area of land that borders a

15. See the attached “Regression Data I”. We are using the number of radios, TVs, and DVD players stocked to predict the profit, revenue, and cost for future periods. Based on the output,

Record the annual heating and cooling demands for each of the floors for all three models. What will be the observation?

In order to answer this question we first have to consider whether the value provided to the commercial and residential markets is the same. While it may look like the value is similar, upon closer inspection, we can identify an important distinction between the values provided to the two markets:

Gulf Real Estate Properties, Inc., is a real estate firm located in southwest Florida. The company, which advertises itself as “expert in the real estate market,” monitors condominium sales by collecting data on location, list price, sale price, and number of days it takes to sell each unit. Each condominium is classified as Gulf View if it is located directly on the Gulf of Mexico or No Gulf View if it is located on the bay or a golf course, near but not on the Gulf. Sample data from the Multiple Listing Service in Naples, Florida, provided recent sales data for 40 Gulf View condominiums and 18 No Gulf View condominiums. Prices are in thousands of dollars.

The data for the second test to be conducted by our group consists of lot sizes of the residential properties that are up for sale in Toronto and Vancouver. The samples are represented in m2 (metres squared; area of the land in which the residential properties are built on). The data taken are based on the properties that are up for

A difficult characteristic to understand about the housing market is how a price is given for a particular house. That price will be designated to that particular house alone. All houses have various pricing, so I can’t always assume that one will cost more or less than any other. The pricing for houses vary based on their characteristics. Each characteristic must be analyzed to determine its contribution or detraction toward the price. I have taken some of these characteristics and modeled the relationship between them and the price of real estate for a specific area.

The major residential complex across the Hudson River from midtown Manhattan comprised of six high-rise buildings that contain 4,000 condominium homes ranging in size from 1-bedroom to 3-bedroom, 3-bath. There are a total of six possible apartment configurations with prices that vary by floor and view. The river views that overlook New York City are higher priced, as are the higher floors. The most premium apartments are on the 31st floor facing New York in a 3-bedroom, 3-bath configuration on a corner of the building, going for $393,500. The lowest price condominium home is $175,000 for a 1 bedroom on the lobby floor. The developer has chosen conjoint analysis to accomplish the following objectives. First, based on the rank order of preference for condos differing in their combinations of view, floor height, unit size and price, the developer is looking to calculate the relative theoretical utilities of each. Second, each respondent's utilities for the various levels of each attribute have been analyzed and rank-ordered. Third, a mathematical model will be designed to simulate the sell-out of each specified building, varying pricing scenarios to see which will yield the optimal results. Fourth, the study seeks to define the optimal set of prices that would cause the building to sell out as evenly as possible. The

This report outlines the project of a new Mixed Housing Suburban residential area for our client Unitec. With the site section already been divided into residential lots (Refer to figure.1); an ideal concept is to be suitable for the Mixed Housing Suburban area that should include a drawings and within the standards