Development Finance Fundamentals

Courses

Development Finance Fundamentals is designed for introductory- to intermediate-level real estate development professionals. This eight hour course provides participants with the analytical theory and practical tools needed to appropriately evaluate the financial feasibility of complex value added and opportunistic real estate investments. This includes speculative land, land development, and commercial and residential rehabilitation and development for all major property types: office, industrial, retail, multifamily and mixed-use. Accounting, risk management, taxation, capital markets and organizational issues influencing the financial viability of these real estate projects will also be considered and discussed.

Includes softcopy of all materials and breakfast snack.

Lesson Plans

Module 1

Module 1: Overview of the Real Estate Capital Markets: Investment Strategies, Return Measurement and Risk

  • Understand participants of the public and private real estate capital markets.
  • Define the types of real estate financed by the real estate capital markets.
  • Know the sources and types of financing for real estate investments.
  • Know the major indices which measure real estate investment returns and risk over time.
  • Define the investment strategies followed by investors and the required rates of return for each these strategies.
  • Discern the components of the expected total return on a real estate investment.
  • View some of the industry data sources for cap rates and required returns.
  • Know how to measure return on real estate investments.

Module 2

Module 2: Investment Analysis: Value-Added Properties

  • Develop skills to identify and analyze value-added investment opportunities.
  • Review key metrics, data points, and structural issues used when evaluating value-added investments from both a debt and equity viewpoint.
  • Introduce and complete a comprehensive case study that evaluates a value-added investment and includes both equity and debt underwriting evaluation.

Module 3

Module 3: Investment Analysis: Development Transactions

  • Overview of financing and investing in development.
  • Understand the complexities of valuing and assessing development projects.
  • Learn the difference between valuing a for-sale vs. a for-rent development project.
  • Learn how to deal with changes in project risk over time.
  • Comprehend how to determine the appropriate equity return for a development project.
  • Complete two case study/exercises that evaluate a for-rent and a for-sale project.
  • Financial analysis of mixed and multiuse development.
  • Overview of financing and investing in a mixed-use development.
  • Understand the complexities and nuances of a mixed-use development projects.
  • Determine the factors that drive the phasing and inventory decision for a mixed-use or multiuse investment.
  • Complete a case study/exercises that evaluates a mixed-use development.

Schedule

Schedule

  Development Finance Fundamentals
Course Topics and Outline
7:30 a.m.
 
Check-in and breakfast snack
8 a.m. Overview of the Real Estate Capital Markets: Investment Strategies, Return Measurement and Risk
9 a.m. Investment Analysis: Value Added Property Analysis
10 a.m. Break
10:15 a.m. Case Study/Exercise 1: Value Added Property Analysis for an Office Flex Project
11:15 a.m. Investment Analysis:  Development Transactions
1:15 p.m.
Lunch on Your Own
2 p.m.
Case Study/Exercise 2: Industrial Project
Case Study/Exercise 3: For-Sale Condo Project
3:15 p.m.
Break
3:30 p.m.
Financial Analysis of Mixed and Multiuse Development
4:15 p.m.
Case Study/Exercise 4: Mixed-Use Development Analysis
5 p.m.
Course concludes

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