REAL ESTATE FINANCE Ninth Edition. John P. Wiedemer and J. Keith Baker. Chapter 12 Commercial Building and Farm Loans. LEARNING OBJECTIVES. At the conclusion of this chapter, students will be able to : • Understand key aspects of commercial real estate finance analysis.
John P. Wiedemer and J. Keith Baker
At the conclusion of this chapter, students will be able to:
• Understand key aspects of commercial real estate finance analysis.
• Describe the application process and documentation requirements for
commercial real estate loans.
• Understand how the property evaluation process relies on more than the
appraised value of the property and how the type of commercial loan will
affect the approach to valuation and maximum loan considerations.
• Explain the draw or disbursement process for commercial construction real estate loans.
• Describe the approach used for considering construction loans for residential properties versus other types of commercial real estate loan.
Smaller neighborhood centers often consist of a large corner area with a strip of two or more stores. Merchandise offered is mostly daily essentials such as food, drugs, hardware and other everyday services.
A community center offers all the services found in the neighborhood center plus an anchor tenant offering general merchandise, apparel stores, furniture outlets, professional services, and some recreational facilities.
The largest category, a regional center offers a full range of merchandise and services. It contains at least two anchor tenants as well as scores of lesser shops and a variety of restaurants, theaters, and other recreational facilities.
Describe a special purpose building.
Compare and contrast two widely different types of commercial real estate loans that you had not previously had any experience discussed in this chapter.
Discuss each of the three factors in the operation of a commercial building: location, physical facilities, and management.
What part of the federal Fair Housing Act is applicable to an apartment project?
Define net lease.
Why does shopping center management promote shopper-attraction activities?
How does a shopping center utilize percentage leases?
Discuss who builds office buildings and why.
Evaluate preleased space as a factor in obtaining a building loan.
Distinguish between issues of valuation in commercial and farm loans.