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CGA Exact Questions With Complete Solutions
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CGA Exact Questions With Complete Solutions
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CGA Exact Questions With Complete Solutions*"Always Appears" - If the overall cap rate for the fee simple
interest is 10% and the leased fee cap rate is 8.5%, market net
operating income is $20,000 and contract net operating income
is $12,500. What is the implied leasehold cap rate? Correct
Answers 14.17%
A 50,000 SF site is improved with a 10k sf industrial building in
avg condition. Market values for the area indicate:
$12.00 per sf for unimproved sites
$45 for an industrial building
etc. etc.
What is the most probably highest and best use of the property
as improved? Correct Answers Demo of existing
improvements and redevelopment of the site.
A client asked for a feasibility analysis based on equity return
rates. One use provides an annual net operating income totaling
$75k. There will be a 7%, $800,000, 30 yr mortgage paid
monthly. The client must make a $250k down payment and will
hold the property for a 20-yr period. The client expects to sell
the property for $458,400. What is the annual equity dividend
rate? Correct Answers 4.45%
A developer has a rectangular 5-acre site with a commercial
zoning designation allowing mini-storage, office, retail or
apartments. Given these factors, if the building capitalization
rate is 10% and the land cap rate is 7.5%, what is the market
, value per sf of the site under the highest and best use? Correct
Answers $15.00 per sf (or 19.50??)
A developer has a rectangular 5-acre site with a commercial
zoning designation allowing mini-storage, office, retails, or
apartments. The land is under contract for purchase for 3.35
million and the minimum acceptable land cap rate is 6%.
Building cap rates are currently 10%. Which of the above uses
are financially feasible? Correct Answers Multi-unit and retail
A hog farm sold for $1M. The farm was situated on an 80-acre
site valued at $160k. The whole property generated an annual
NOI of $120k. Typical land in the area leases for $15 per acre
per year, net to the owner. What is the building cap rate?
Correct Answers 14.14%
A property has a replacement cost of 3M. Deferred maint. is
estimated at 100,000 Correct Answers
A property has an actual age of 12 years, an eff. age of 10 years,
and a remaining economic life of 35 years. What is the annual
depreciation rate utilizing the age-life method? Correct Answers
2.22%
(10+35 = 45) = .222
A property sold for $330, 000 with 10% down, financed at 7.5%
interest for 20 years with monthly payments. The property has a
gross annual income of $42k. / Vacancy / collection loss totals
8% and expenses are $8k per year. What is the equity dividend
rate indicated by this sale? Correct Answers 5.85%
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