Financial Analysis of Development Projects

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Note: All times noted are Eastern Time.

Thursday, March 15
Noon - 2 p.m.
Overview of the Real Estate Capital Markets: Investment Strategies, Return Measurement and Risk
In this session, we'll define the types of real estate financed by the real estate capital markets and develop an understanding of the participants in the public and private real estate capital markets. We'll learn about the sources and types of financing for real estate investments and also the major indices that measure real estate investment returns and risk over time. Students will learn how to measure the return on real estate investments, as well the various investment strategies followed by investors and the required rates of return for each of them. Additionally, students will learn to determine the components of the expected total return on a real estate investment and will have the opportunity to view some of the industry data sources for cap rates and required returns.

Jerry Franke, President, WISPARK LLC, Milwaukee, Wis.

Thursday, March 22
Noon - 2 p.m.
Investment Analysis for Value-Added Properties: Case Study/Exercise 1: Office Project
Students will develop skills to identify and analyze value-added investment opportunities. They will review key metrics, data points, and structural issues used when evaluating value-added investments from both a debt and equity viewpoint. This session will introduce a comprehensive case study that evaluates a value-added investment and includes both equity and debt underwriting evaluation. Students will complete a comprehensive case study that evaluates a value-added investment and includes both equity and debt underwriting evaluation.

Jim Neyer, Executive Vice President, Real Estate Development, Al Neyer Inc., Cincinnati, Ohio

Thursday, March 29
Noon - 2 p.m.
Investment Analysis for Development Transactions; Case Study/ Exercise 2: Industrial Project; Case Study/Exercise 3: Sale of a Residential Condo Project
This session will provide an overview of financing and investing in development. Students will understand the complexities of valuing and assessing development projects. We'll learn the difference between valuing a for-sale vs. a for-rent development project, and we'll learn how to deal with changes in project risk over time. Students will learn how to determine the appropriate equity return for a development project, and will complete two case study/exercises that evaluate a for-rent and a for-sale development.

Jim Neyer, Executive Vice President, Real Estate Development, Al Neyer Inc., Cincinnati, Ohio

Thursday, April 5
Noon - 2 p.m.
Financial Analysis of Mixed and Multi-Use Development; Case Study/Exercise 4: Mixed-Use Development Analysis (includes: retail, office and multifamily).
This session will give students an overview of financing and investing in a mixed-use development. Students will gain an understanding of the complexities and nuances of mixed-use development projects and will learn to determine the factors that drive the phasing and inventory decisions for a multi- or mixed-use investment. Additionally, students will complete a case-study/exercise that evaluates a mixed-use development.

William L. Klein, President, Kay Realty Services LLC, Ocean, N.J.

Thursday, April 12
Noon - 2 p.m.
Investment in Land for Future Development; Case Study/Exercise 5: Analysis of a Land Investment
We'll focus on knowing the characteristics of land and land investment strategies during this session. Students will go over land calculations and gain an understanding of how land can be viewed as an option. We'll discuss how to use this information to value land and look at the risk and required returns on land investment. This session will include a case study/exercise on examining a land investment.

Joan Woodard, President and CEO, Simons and Woodard Inc., Santa Rosa, Calif.

Thursday, April 19
Noon - 2 p.m.
Real Estate Development Deal Structuring and Underwriting; Case Study/Exercise 6: Modeling Joint Venture and Partnership Profit Sharing and Partitioned Returns
This session begins by examining the sources of equity financing. We'll discuss the Organizational Forms and Joint Ventures for Value Added and Opportunistic Real Estate Investments, as well as define the terms associated with a private equity arrangement. Students will understand the investment strategies pursued by private equity, the working of joint ventures, and the commercial mortgage capital markets: lenders, mortgage types and terms. We'll analyze the fees structures of private equity investment vehicles and review the contents of a loan submission package. Additionally, students will work through a case study/exercise detailing a private equity joint venture deal structure with profit sharing and partitioned returns.

Ronald W. Ruth, J.D., LEED AP, Attorney and Managing Partner, Sherin and Lodgen LLP, Boston, Mass.

Thursday, May 3,
Noon - 2 p.m.
Accounting and Taxation issues for Real Estate Development Projects
Students will learn about the various tax classifications and exemptions imposed on real estate. We'll address accounting and tax issues for development projects and take a look at affordable housing programs and the Low Income Housing Tax Credit (LIHTC). Also, we'll examine other tax incentives and programs that affect development.

Dustin Read, PhD, Associate Director for the Center for Real Estate, University of North Carolina at Charlotte

Thursday, May 10
Noon - 2 p.m.
Risk Management for Real Estate Development Projects
In this session, students will identify and pinpoint risk exposures during the development process as a problem to be solved with a risk management solution. Students will also learn about the principal risk exposures in real estate development and how to distinguish insurable from uninsurable risks. We'll determine how to assess risk exposure and identify the assumptions that must be made in the process of recommending a risk management solution. Finally, students will also learn how insurable risk exposures and theoretical concepts of risk affect insurance policy design, coverages and contractual provisions.

Thomas G. Thibodeau, Professor of Real Estate, University of Colorado