Real Estate Private Equity

1.5 Credits · Level: Graduate

This course provides an introduction to the world of private equity real estate investment with a particular focus on answering the question, “What is the real estate asset worth?” Lectures will consider the thought process and mechanics implicit in establishing an asset’s value via proforma statement construction and discounted cash flow methodology. Lectures will be delivered from the perspective of an equity investor with the intention of instructing each student on the proper approach to measuring the cash generating potential and risk associated with a real estate transaction. This approach will broadly cover the physical and the financial aspects of the investment, but will delve into a variety of subtopics including financial performance measurement, leverage, and income tax considerations. Students will gain a broad understanding of the institutional real estate world and how circumstances in the current market impact the ability to acquire (and dispose) of real estate assets. The course will also employ a case study approach for applying the course concepts to practical real estate problems. Course Objectives: • Introduction to the basic concept of real estate and the manner that investors consider this type of investment in their portfolios. • Obtain a fundamental understanding of real estate valuation with an appreciation for unleveraged, leveraged and equity returns. • Introduction to the bottom-up, real estate acquisition process with a particular focus on real estate asset pricing and risk management practices. • Develop a broader understanding and appreciation for the real estate profession through interaction with guest speakers and market oriented reading materials