Calendar

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 1 Course introduction (Geltner) DCF (McGrath) DCF (cont.) and NPV (McGrath) READINGS Chapters 1, 2, and skim parts Chapter 10 (10.1-3) Chapter 10 (10.4-6) Chapter 10 (10.5 and 10.6 and appendix A and B) Problem set 1 due (chapters 8, 10, 11, excel and argus tutorial exercise) (TA) Required assignment Guest speaker: Jeannette Rice, VP market research, Crescent RE. (Liquidity Seminar) Coaching on excel and argus (TA) RECITATIONS PV math (chapter 8), calculator help, PS1 coaching (TA)

2 3

NPV (Geltner)

Real estate cash flows, proformas (McGrath)

Chapter 11 (11.1)

Real estate opportunity Chapter 11 cost of capital (McGrath) (11.2)

SES # LECTURES 7 8 9 10 Leverage (McGrath) Case 1: Private practice case I due (McGrath) WACC formula (McGrath) After-tax cash flows (McGrath) After-tax investment analysis and capital budgeting (Geltner) Commercial mortgage underwriting (Geltner) Case 2: Private practice case II due (McGrath) Exam 1 (Chapters 10-13, 14.1-5) Development financial feasibility (Geltner) Development project evaluation (Geltner) Intro case 3, madison project example (Geltner)

READINGS Chapter 13 (13.1 and 13.2)

RECITATIONS

Case discussion (cont.) Chapter 13 (13.3-5) Chapter 14 (14.1 and 14.2) Chapter 14 (14.3.1-5) Chapter 18 (Section 2) Chapter 17 (Section 1) Mortgage mechanics (Geltner) Leverage and tax (TAs)

11

12 13 14

15

Chapter 28 Chapter 29 (29.1 and 29.3 only) Madison spreadsheet

Lecture extension; exam de-briefing (Geltner)

16

17

Case 3 guidance (TAs)

SES # LECTURES Madison example (cont.) 18 Finish development project investment analysis (Geltner) Case 3: One Lincoln St case I (development) due (McGrath) Lincoln (post) and InterMountain (pre) case discussions (Geltner) Capital structure debt vs equity, etc. (Geltner) Project level capital structure (Geltner) Real options and land value (Geltner) Real options and land value (cont.) (Geltner) Case 4: "InterMountain" development project case (Larry Ellman, Citigroup) guest participant Case 4 debriefing; review and catch up (Geltner)

READINGS

RECITATIONS

Sections 29.1 and 29.3

19

Extension of case 3 discussion

20

Inter-Mountain

21 22 23 24

Chapter 15 Section 15.3 Chapter 27 Chapter 27

No recitation

Lecture extension

25

Case discussion continued

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SES # LECTURES 27 Real options (cont.) review, catch up (Geltner) 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)

READINGS Chapter 27

RECITATIONS