This Case is aboutÂ FINANCIAL MANAGEMENT
PUBLICATION DATE: August 11, 2014 PRODUCT #: 215S09-HCB-SPA
Rick's Dilemma, Spanish Version case solution
In 2014, Rick is serving as a trustee to get a big family trust whose principle asset is a plot of prime property in the the Upper East Side of Manhattan. The property is now subject to a ground lease which pays $4.6 million per annum, with resets every 20 years at 4.5% of the appraised value of the property. The next reset is in 2022, and in the meantime Rick must make a determination on whether it may not be worse for the beneficiaries to sell the property early of the trust. If so, what cost should Rick seek?