GSD Course Bulletin - Fall 2008
05204: Real Estate Finance and Development (SES 0520400)
Urban Planning and Design
Lecture - 4 credits
Tuesday Thursday 10:00 - 11:30 Gund 111
This course teaches the fundamentals of real estate finance anddevelopment. Lectures and case studies introduce students to the fullrange of financial analysis skills and analytical processes for evaluating private and public development and investment in real estate. All major property types and land uses are covered as well as all stages of the development process, including site selection, market analysis, financial feasibility, design and legal considerations, construction, lease-up, operations, and sale of the final product. The cases are designed to place students in a number of decision-making situations commonly faced by real estate professionals. Prior or supplementary study of microeconomics is useful. Students studying business, law, and government, as well as selected undergraduates will be admitted, space permitting.The course's objectives are fivefold:(1) to help students achieve technical competence in understanding all forms of real estate finance ranging from fully amortized constant payment loans to price-level adjusted mortgages;(2) to give students the technical skills for analyzing the cash flows and economic returns of real estate development including commercial, industrial, office, residential and land development, as well as partnership joint ventures and syndications;(3) to introduce students to the broad range of real estate capital markets with special attention to secondary markets, CMO's, REITs, and current trends in securitization of real estate finance;(4) to give students an understanding of the implications of various tax issues for real estate development and investment;(5) and to expose students to as many aspects of real estate issues and strategic decision-making as possible.Prerequisites: Graduate standing.