Market Capitalization Rate definition

Market Capitalization Rate means the appropriate capitalization rate for mobile home parks and manufactured housing communities as published in the then current Korpacz Real Estate Investor Survey as of the time of calculation of Fair Market Value. If the Korpacz Real Estate Investor Survey (a) has ceased publication, (b) does not report a capitalization rate for mobile home parks and manufactured housing communities, or (c) the current survey is dated more than three (3) months prior to the time of calculation, the Agent shall determine an appropriate capitalization rate, subject to the approval of the Required Lenders, which rate shall in no event be less than 9% or greater than 11 1/2. The Agent may make such determination no more frequently than twice in any consecutive twelve (12) month period upon sixty (60) days prior written notice to the Company. If the Company has not submitted reasonably satisfactory evidence to the Agent and the Required Lenders that a different rate is appropriate, the rate chosen by the Agent shall be effective as of the end of such sixty (60) day period. If the Company and the REIT are required to submit any financial reports during such sixty (60) day period, such reports shall include a pro forma statement showing the impact of the Agent's selected rate on the calculations in such reports. As of the date hereof, the parties agree that the appropriate capitalization rate is 9.00%. The determination by the Agent and the Required Lenders of the Market Capitalization Rate after review of any evidence submitted by the Company as provided above shall be final.

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Market Capitalization Rate means the most probable Capitalization Rate that a buyer purchasing the BCS4 Project on the last day of the Term of Available Apartment Recapture would apply to determine the purchase price for the BCS4 Project assuming that the BCS4 Project has received reasonable exposure in the competitive sub-market in which the BCS4 Project is located under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, at arms-length, and for self-interest, and assuming that neither is under any duress. Market Capitalization Rate Determination means, unless agreed upon by the Parties within thirty (30) days following the expiration of the Term of Available Apartment Recapture, the Market Capitalization Rate shall be determined by appraisal, made by a board consisting of three appraisers selected as provided below who are experienced in the valuation of commercial properties similar to the BCS4 Project in the Minneapolis/St. ▇▇▇▇ metropolitan area, and each of whom shall be a member of the Appraisal Institute with the designation of “MAI.” The Authority shall appoint the first appraiser and shall notify the Secondary Developer of such appointment. Within fifteen (15) business days following receipt by the Secondary Developer of such notice from the Authority, the Secondary Developer shall appoint the second appraiser and shall promptly notify the Authority of such appointment. The first two appraisers shall appoint a third appraiser within fifteen (15) business days thereafter. If the first two appraisers are unable to agree on a third appraiser within fifteen (15) business days after the Secondary Developer’s notice of the appointment of the second appraiser, or if either party refuses or neglects to appoint an appraiser as herein provided, then such appraiser whose appointment was not made as aforesaid shall be appointed within ten (10) business days by the President of the Appraisal Institute, or by such successor body hereafter constituted exercising similar functions. The three appraisers, each acting independently, shall each determine the Market Capitalization Rate, and within sixty (60) days after the appointment of the third appraiser, shall each submit their determination of such Market Capitalization Rate to the Authority and the Secondary Developer. If the determinations of at least two of the appraisers shall be identical in amount, said amount shall be deemed to be the Market Capitalization Rate. If the determinat...

Market Capitalization Rate means the appropriate capitalization rate for hotels as determined by Lender or the Rating Agencies.

Examples of Market Capitalization Rate in a sentence

In the event that this covenant is breached solely as a result of a change in the appropriate Market Capitalization Rate by the Agent and the Required Lenders, such breach shall not be deemed a Default unless the Borrower and the REIT fail to cure such breach within thirty (30) days of the date of such breach.
In the event that this covenant is breached solely as a result of a change in the appropriate Market Capitalization Rate by the Agent and the Required Lenders (but not as a result of a change in such Market Capitalization Rate as published in the Korpacz Real Estate Investment Survey), such breach shall not be deemed a Program Event of Default unless the Company and the REIT fail to cure such breach within thirty (30) days of the date of such breach.
In the event that this covenant is breached solely as a result of a change in the appropriate Market Capitalization Rate by Agent and the Majority Co-Lenders (but not as a result of a change in such Market Capitalization Rate as published in the Korpacz Real Estate Investment Survey), such breach shall not be deemed an Event of Default unless Borrower and the REIT fail to cure such breach within thirty (30) days of the date of such breach.
Example One: Assume that on the date of conveyance of the Property to RPLP the Annualized Net Operating Income from Rent Paying Space equal to 95% of the rentable area of the Property is $15,390,000, and that the Market Capitalization Rate is 6.5%.
Example Two Assume that on the date of conveyance of the Property to RPLP the Annualized Net Operating Income from Rent Paying Space equal to 95% of the rentable area of the Property is $15,390,000, and that the Market Capitalization Rate is 7%.
Assume that on the date of conveyance of the Property to RPLP the Annualized Net Operating Income from Rent Paying Space equal to 85% of the rentable area of the Property is $13,770,000, and that the Market Capitalization Rate is 6.5%.

More Definitions of Market Capitalization Rate

Market Capitalization Rate means the appropriate capitalization rate for manufactured housing communities, as determined by the Agent, which shall be subject to the approval of the Required Lenders, which rate shall in no event be less than 8 1/2% or greater than 11%. The Agent may make such determination no more frequently than twice in any consecutive twelve (12) month period upon sixty (60) days' prior written notice to the Borrower. If the Borrower has not submitted reasonably satisfactory evidence to the Agent and the Required Lenders that a different rate is appropriate, the rate chosen by the Agent shall be effective as of the end of such sixty (60) day period. If the Borrower and the REIT are required to submit any financial reports during such sixty (60) day period, such reports shall include a pro forma statement showing the impact of the Agent's selected rate on the calculations in such reports. As of the date hereof, the parties agree that the appropriate capitalization rate is 8.75%. The determination by the Agent and Required Lenders of the Market Capitalization Rate after review of any evidence submitted by the Borrower as provided above shall be final.