Reference no: EM131568180
Suppose that you work for Camden Property Trust, a multi-family REIT in the southern US, and that your company wants to add another apartment building to its investment portfolio. After conducting a thorough market analysis, you have narrowed your search to three properties located in different areas in Houston, Texas. All of the properties have a similar number of units, and the units are also similar with regard to mix and sizes. The primary differences is the supply and demand in the different market areas, and the consideration of newer versus older properties.
Option 1: The first property is currently built and operating in a middle income area that has a shortage of housing. At this time, the building has no vacancy, but there are some new apartments being built nearby that will soon be competing with this property. This is the oldest property, and will likely be impacted by the new construction in the area that may take away tenants.
Option 2: The second property is currently under construction, and is being sold because the developer has run out of money, and is unable to finish the project. However, it is likely that your firm could complete the building at a favorable per-unit cost. The market area is close to equilibrium, but with some excess supply, and the completion of this property would add even more. However, it would be a new building - something that is often attractive to potential tenants.
Option 3: The third property currently has a relatively high vacancy rate. However, the market area has become an increasingly desirable area to live and demand is expected to grow. There is also little threat of new competition here because there are no sites available to build additional apartment complexes.
Given these vacancy considerations, which property would you choose? Are there other investment factors that may be impacted by these considerations?
What will be monthly loan payment
: You want to buy a car and have to finance $22,000. What will be the monthly loan payment?
|
Reflection on carbon tax vs cap-and-trade
: Write your reflection in two pages after reading the article on this topic (carbon tax vs Cap-and-trade).
|
Naval air systems command contracting
: You are the recently designated Naval Air Systems Command contracting officer for a new air-to-ground missile development program.
|
Write a market research implementation plan
: Conduct market research concerning the selected scenario using secondary market research resources.
|
Operating in a middle income area
: The first property is currently built and operating in a middle income area that has a shortage of housing.
|
Find the next four terms of the sequence
: Determine a rule for generating the terms of the sequence that begins 2, 3, 3, 5, 10, 13, 39, 43, 172, 177, 885, 891,...
|
How well does mary shelley''s frankenstein
: how well does Mary Shelley's Frankenstein address existing personality traits versus how a person is taught to act
|
Discuss several pieces of legislation that were enacted
: Discuss several pieces of legislation that were enacted to protect against unethical investing practices. Charts and graphs should be used where appropriate.
|
Debt to equity ratio and price-earnings ratio
: Calculate Lucky Lender's, Inc.'s, Debt ratio, Debt to equity ratio, and Price-earnings (PE) ratio.
|