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  • August 2014 (Revised November 2015)
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Rick's Dilemma

By: Arthur I. Segel, Charles F. Wu, Siddharth Yog and Ben Eppler
  • Format:Print
  • | Language:English
  • | Pages:8
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Abstract

In 2014, Rick is serving as a trustee for a large family trust whose principle asset is a plot of prime real estate in the Upper East Side of Manhattan. The land is currently subject to a ground lease which pays $4.6 million annually, with resets every 20 years at 4.5% of the appraised value of the land. The next reset is in 2022, and in the meantime Rick must make a decision on whether it might be better for the trust's beneficiaries to sell the land early. If so, what price should he seek?

Keywords

Real Estate; New York Property; Appraisal Methods; Valuation Methodologies; Property; Finance; Real Estate Industry; New York (city, NY); United States

Citation

Segel, Arthur I., Charles F. Wu, Siddharth Yog, and Ben Eppler. "Rick's Dilemma." Harvard Business School Case 215-006, August 2014. (Revised November 2015.)
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About The Author

Arthur I Segel

Finance
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Related Work

    • December 2014
    • Faculty Research

    Rick's Dilemma

    By: Arthur I Segel and Ben Eppler
    • August 2014 (Revised November 2015)
    • Faculty Research

    Rick's Dilemma

    By: Arthur I. Segel, Charles F. Wu, Siddharth Yog and Ben Eppler
Related Work
  • Rick's Dilemma By: Arthur I Segel and Ben Eppler
  • Rick's Dilemma By: Arthur I. Segel, Charles F. Wu, Siddharth Yog and Ben Eppler
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