The readings are from the textbook:
Geltner, David M., Norman G. Miller, Jim Clayton, and Piet Eichholtz. Commercial Real Estate Analysis and Investments. Cincinnati, OH: South-Western Educational Publishing, 2007. ISBN: 9780324305487.
| SES # | LECTURES | READINGS | RECITATIONS |
|---|---|---|---|
| 1 | Course introduction (Geltner) | Chapters 1, 2, and skim parts | PV math (chapter 8), calculator help, PS1 coaching (TA) |
| 2 | DCF (McGrath) | Chapter 10 (10.1-3) | |
| 3 | DCF (cont.) and NPV (McGrath) | Chapter 10 (10.4-6) | Coaching on excel and argus (TA) |
| 4 | NPV (Geltner) | Chapter 10 (10.5 and 10.6 and appendix A and B) | |
| 5 | Real estate cash flows, proformas (McGrath) | Chapter 11 (11.1) | Problem set 1 due (chapters 8, 10, 11, excel and argus tutorial exercise) (TA) Required assignment |
| 6 | Real estate opportunity cost of capital (McGrath) | Chapter 11 (11.2) | Guest speaker: Jeannette Rice, VP market research, Crescent RE. (Liquidity Seminar) |
| 7 | Leverage (McGrath) | Chapter 13 (13.1 and 13.2) | |
| 8 | Case 1: Private practice case I due (McGrath) | Case discussion (cont.) | |
| 9 | WACC formula (McGrath) | Chapter 13 (13.3-5) | |
| 10 | After-tax cash flows (McGrath) | Chapter 14 (14.1 and 14.2) | |
| 11 | After-tax investment analysis and capital budgeting (Geltner) | Chapter 14 (14.3.1-5) | Leverage and tax (TAs) |
| 12 | Commercial mortgage underwriting (Geltner) | Chapter 18 (Section 2) | |
| 13 | Case 2: Private practice case II due (McGrath) | Chapter 17 (Section 1) | Mortgage mechanics (Geltner) |
| 14 | Exam 1 (Chapters 10-13, 14.1-5) | ||
| 15 | Development financial feasibility (Geltner) | Chapter 28 | Lecture extension; exam de-briefing (Geltner) |
| 16 | Development project evaluation (Geltner) | Chapter 29 (29.1 and 29.3 only) | |
| 17 | Intro case 3, madison project example (Geltner) | Madison spreadsheet | Case 3 guidance (TAs) |
| 18 |
Madison example (cont.) Finish development project investment analysis (Geltner) | Sections 29.1 and 29.3 | |
| 19 | Case 3: One Lincoln St case I (development) due (McGrath) | Extension of case 3 discussion | |
| 20 | Lincoln (post) and Inter-Mountain (pre) case discussions (Geltner) | Inter-Mountain | |
| 21 | Capital structure debt vs equity, etc. (Geltner) | Chapter 15 | No recitation |
| 22 | Project level capital structure (Geltner) | Section 15.3 | |
| 23 | Real options and land value (Geltner) | Chapter 27 | Lecture extension |
| 24 | Real options and land value (cont.) (Geltner) | Chapter 27 | |
| 25 | Case 4: "Inter-Mountain" development project case (Larry Ellman, Citigroup) guest participant | Case discussion continued | |
| 26 | Case 4 debriefing; review and catch up (Geltner) | ||
| 27 | Real options (cont.) review, catch up (Geltner) | Chapter 27 | |
| Final exam (cumulative with emphasis on 17.1, 18.2, 15.3, 27, 28, 29.1 and 29.3, and lessons from Cases 3 and 4) |