tarik64

I don’t follow your logic here I’m afraid.
The answer key for sattement A says that: “Operating expenses are being passed on to to the tenant because the sum of Property Mgmt fees and other opreating expenses equal the expense reimbursement revenue” - so how exactly do you get a remaing $2.1m worth of operating expense risk that is borne by the owner for property 2?
I also don’t see how statement C can be a correct statement. Even the answer key says that “Other income is only $15k suggesting that there is minimal amount of percentage rent linked to sales revenues”. Option C in the question says “There is a significant amount of percentage rent linked to sales levels”. Surely this is least accurate?
I would agree with lagstream that all 3 seem wrong at first glance.