Overview. This course provides students with an introduction to real estate finance and institutional analysis. The course is designed to help students quantify the financial implications of various real estate decisions. This material covers such topics as basic time value of money, financial leverage, discounted cash flow analysis of individual properties, and advanced as the management of institutional portfolios and implications and implementation of sustainable development programs and materials. Some of the introductory material has been added to respond to the interdisciplinary nature of students, which results in an intake of students who do not have strong financial and modeling skills when they enter the program. Using a combination of incremental learning in which such material is introduced throughout the curriculum and technological innovations including interactive cases, streaming video instructional modules, instructional support materials, and special laboratories, students are able to develop the requisite introductory and foundation skills necessary to support more advanced learning. The coverage of the course is comprehensive and consistent with that offered at peer institutions, both in terms of coverage and textbooks. In terms of content, the course covers such topics as time value of money, financial leverage, discounted cash flow analysis of individual properties, management of institutional portfolios, and capital markets including such items as macroeconomic analysis, CMBS, REITs, TICs, mezzanine financing, portfolio theory, and options.

Positioning. This course builds on the foundation laid in the Real Estate Process with special emphasis on the financial aspects of real estate. It is a methods course that covers a range of financial and analytical tools.

Winter 2007: Tuesdays and Thursdays, 3:30p.m. to 5:20p.m.

Instructor: DeLisle