MGT 276 - Students - UC Davis

UNIVERSITY OF CALIFORNIA, DAVIS
Graduate School of Management
Course Syllabus
Spring 2004
MGT 276
REAL ESTATE FINANCE AND INVESTMENTS
Time – Wednesdays, 6:00 p.m. to 9:00 p.m.
Location – 261 Olson Hall (adjacent to AOB IV)
Instructor:
Phone:
Office Hours:
Email: -
Class Website:
Brian Woods
(415) 395-7207 office
(925) 787-7313 mobile
Weeks without Guest Lecturers - Wednesdays, two hours before class
Weeks with Guest Lecturers - by appointment
Brian.Woods@am.joneslanglasalle.com
Accessible through My UC Davis portal system
COURSE DESCRIPTION
This course is a study of the major aspects of real estate finance and investment from the perspective
of corporate, private, and public owners; investors; and users. Commercial properties will be
emphasized. The course begins with an overview of the fundamentals of income producing real
estate and builds on these concepts as it considers the forces that influence the cyclical, fragmented,
and inherently local business of real estate investment. These foundation concepts are further
considered in detail in a serie s of cases that will be presented and discussed in class both by the
instructor and visiting lecturers. The course will expose students to current “real world” real estate
finance and investment situations and people who shape them.
The course is case-based, and students will be challenged to think on their feet in class. Students will
have the opportunity to develop their business presentation skills through case discussions and a final
project presentation.
TEXTBOOKS AND READING
1. Brueggeman, William B. and Fisher, Jeffrey D. Real Estate Finance and Investments, 11 th
edition (McGraw-Hill/ Irwin, 2002)
2. Case studies, supplemental reading and lecture notes will be handed out in class or posted to
the class website.
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UNIVERSITY OF CALIFORNIA, DAVIS
Graduate School of Management
Course Syllabus
Spring 2004
Management 276 - Real Estate Finance and Investments
COURSE REQUIREMENTS
1. Exams: There will be one in-class midterm exam.
2. Class Participation and Case Studies: Cases will be used to introduce and explore
many of the concepts introduced in the class. Students will be expected to have reviewed the
cases prior to class. Thoughtful contributions to class discussions will enhance the learning
process.
3. Team Project: Team projects will be due over the last two weeks of class. Utilizing
Microsoft PowerPoint, each team will present a 20 minute investment analysis for either a
development or repositioning project of the team’s choice. The team’s presentation will
include an overview of the property or project, market justification (supply and demand
analysis) for funding the project, pro forma or historic income and expense information and
an analysis of projected cash flows (leveraged and unleveraged, before and after tax). The
team will be graded on the quality and conciseness of the oral presentation; financial
analysis; investment recommendations; executive summary and poise in response to
questions from class during a brief Q &A.
4. Grading:
Class Participation 10%
In-class Midterm Exam 30%
Case Studies 25%
Team Project and Presentation 35%
There will be NO Final Exam
TEXTBOOKS AND READING
1. Required Text: Brueggeman, William B. and Fisher, Jeffrey D. Real Estate Finance
and Investments, 11 th edition (McGraw-Hill/Irwin, 2002)
2. Handouts: Case studies, supplemental reading and lecture notes will be handed out in
class or posted to the class website.
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UNIVERSITY OF CALIFORNIA, DAVIS
Graduate School of Management
Course Syllabus
Spring 2004
Management 276 - Real Estate Finance and Investments
SCHEDULE, LECTURE TOPICS AND READING
Lecture Topics
Reading
Week 1 - Overview of Real Estate Finance and Investment [April 7]
1. Practical Matters
- Introductions
- Course Expectations, Plans and Objectives
- Student Evaluation, Participation and Projects
- Some Useful Sources and Links???
Brueggeman & Fisher
Chapters 1, 2 and 3
2. Introduction to the Real Estate Industry
- Defining the industry, the players and their roles
- The real estate “Products” – what’s being sold
3. Markets and Cycles Handout - Stephen E.
Roulac - Real Estate
Market Cycles,
Transformation Forces
and Structural Change,
4. Some Basic Real Estate Finance and Investment Concepts;
- Real Estate Investment Pro Forma
- Direct Capitalization and Discounted Present Value
Week 2 - Leases and Leasing - Part 1 [April 14]
1. Elements and Basic Terms of the Commercial Lease
- Defining the Premises
- Base Rent
- Operating Expenses, Taxes and Insurance
- Tenant Improvements
2. Brokers
3. Introduction of Leasing Case Study
- Set up Class Teams
- Review Case Study Handout and Objectives
Brueggeman & Fisher
Chapter 9
Week 3 - Leases and Leasing - Part 2 [April 21]
In-class Case: Lease Negotiation Case Study
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UNIVERSITY OF CALIFORNIA, DAVIS
Graduate School of Management
Course Syllabus
Spring 2004
Management 276 - Real Estate Finance and Investments
Week 4 – Real Estate Investment Analysis and Problem Solving [April 28]
Guest Speaker: Ze Figueirinhas, Vice President – Jones Lang LaSalle
Angus Cartwright Case Study
Silicon Valley Lease Restructure Case Study
Brueggeman & Fisher
Chapters 8 and 10
Angus Cartwright Case
Week 5 - Real Estate Development and Repositioning [May 5]
Guest Speaker: Mark Regoli, Executive Vice President – South Bay
Development
Brueggeman & Fisher
Chapters 11, 13 and 15
Silicon Valley Investment Case Studies
Week 6 - Midterm [May 12]
Week 7 - Real Estate Investment Marketing and Sales [May 19]
Guest Speaker – Randy Getz, Senior Vice President CB Richard Ellis
Brueggeman & Fisher
Chapter 20
Case study assignment –Financial analysis of Investment Offerings
Week 8 – Corporate Real Estate [May 26]
Guest Speaker – TBD
Brueggeman & Fisher
Chapter 14
Financial analysis of Investment Offerings Due
Week 9 - Ownership Structures – Partnerships, Syndications and REITs;
Taxes; Team Project Presentations [June 2]
Brueggeman & Fisher
Chapter 19
Week 10 - Team Project Presentations; Course Wrap-up [June 9]
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