Development Finance Fundamentals

Courses

This offering of the course is in conjunction with CRE.Insights: The Last Mile conference, March 5-6, 2018, in Seattle, Washington. Discounted registration is available for conference attendees.

This course provides students with the analytical theory and practical tools needed to appropriately evaluate the financial feasibility of complex value-added and opportunistic real estate investments, including commercial/residential rehabilitation and ground-up development projects for all major property types. Capital markets and organizational issues influencing the financial viability of these real estate projects are also considered and discussed.

It is recommended that students bring their laptops to class. Students participating in the course will receive the PowerPoint slides for all modules included in the course and any other course materials one week before the course.

Instructor: Charles Tu, Daniel F. Mulvihill, Professor of Commercial Real Estate, Academic Director of the MS in Real Estate program, Burnham-Moores Center for Real Estate, University of San Diego

Lesson Plans

Module 1

Module 1: Overview of the Real Estate Capital Markets

  • Identify the various real estate capital market participants
  • Discuss the projects financed in the real estate capital market
  • Review the major indices used to measure risk and return
  • Explore different real estate investment strategies
  • Discern the components of total return on investment
  • View sources of industry data for cap rates and discount rates
  • Introduce ways 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 for Development Transactions

  • Review the fundamentals of real estate development financing and investing
  • Explore the complexities of valuing development projects
  • Differentiate “for-sale” vs. “for-rent” valuation methodologies
  • Learn how to deal with changes in project risk over time
  • Calculate appropriate equity returns for development projects
  • Complete a case study analyzing a for-sale development project

Module 4

Mixed-Use Development

  • Review the financial fundamentals of mixed-use development
  • Evaluate the complexities and nuances of these projects
  • Consider the factors driving phasing and inventory decisions
  • Complete a mixed-use development case study

Schedule

Schedule

Development Finance Fundamentals
Course Topics and Outline
7:30 a.m.
 
Check-in and continental breakfast
8-8:15 a.m.
Introduction and welcome
8:15-10 a.m. Module 1: Overview of the Real Estate Capital Markets
10-10:15 a.m. Break
10:15 a.m.-noon Module 2: Investment Analysis for Value-Added Properties
Noon-1 p.m.
Lunch on Your Own
1-2:45 p.m.
Module 3: Investment Analysis for Development Transactions
2:45-3 p.m.
Break
3-4:45 p.m.
Financial Analysis of Mixed and Multiuse Development
5 p.m.
Course concludes

Register

Register

Course Tuition

Conference Attendees: Register with conference registration
Local Member $125
Member $195
Nonmember  $295
 Non-Conference Attendees: Register for the course only (not full event)
Local Member $245
Member $325
Nonmember $425

Confirmation

All registrations processed online receive an automatic order confirmation and receipt. If you register via fax, mail, or phone, a receipt must be requested by contacting education@naiop.org.

Cancellation Policy

All cancellations must be in writing. Cancellations of registrants received after February 9, 2018, will be charged a fee of $100 USD per attendee. Substitutions are permitted. Nonmembers substituting for a member will pay the fee difference. Cancellations received after February 26, 2018, will forfeit the registration fee. No refunds will be made for no-shows. Special events (tours) are nonrefundable. Cancellation notices should be sent via fax to the NAIOP Education Department at 703-904-7003 or emailed to education@naiop.org.