Course Objectives: This course is designed to introduce students to real estate financing from an equity securitization perspective. Alternative types of securitization vehicles are analyzed including real estate investment trusts (REITs), commingled real estate funds (CREFs), real estate limited partnerships (RELPs) and master limited partnerships (MLPs), and real estate swaps. The course also explores real estate securitization in a mixed asset portfolio as well as international real estate securitization.

Texts:
Bruggeman and Fisher (BF), 1997, Real Estate Finance and Investments, 10th Edition, Richard D. Irwin, Homewood, IL (Required)

The Institute of Chartered Financial Analysts (CFA), 1990, CFA Readings in Real Estate. (Required)
 

Case Study:

Harvard Business School, Angus Cartwright Case, December 1995.

Lecture Notes: Available at NYU Professional Bookstore

Grading:
 

Homework	10%
Angus Cartwright Case Study	40%
Final Exam* (Exam is on last day of class, June 17th)	50%

*Given that this course runs approximately 1.5 months, only a final is planned in order to cover more material. Angus Cartwright is an individual case study.

CFA Chapter 3 - A Review of the Chicago Real Estate Market
CFA Chapter 2 - What Determines Cap Rates on Real Estate?

• Problem Set 1 - Real Estate Macromarket Analysis

 2 Analysis of Income Producing Property

BF Chapter 8 - Introduction to Commercial Property Markets pp. 236-271
BF Chapter 9 - Valuation of Income Properties pp. 272-306
BF Chapter 10 - Investment and Risk Analysis pp. 307-355

Problem Set 1 is Due (May 25, 1999)

• Problem Set 2 - Angus Cartwright Case

Problem Set 2 is Due (June 8, 1999)

3 Real Estate Investment Trusts

BF Chapter 20 - Real Estate Investment Trusts pp. 661-681

• Problem Set 3 - REIT Valuation, CREFs, and Real Estate Swaps (Combine Problem Set 3 and Problem Set 4).

4 Commingled Real Estate Funds and Real Estate Swaps

BF Chapter 17 - Institutional Sources of Real Estate Capital pp. 557-583
BF Chapter 21 - Real Estate Investment Performance and Portfolio Considerations pp. 682-706
CFA Chapter 1 - Real Estate Appraisal
CFA Chapter 1 - Toward an Assessment of the Reliability of Commercial Appraisals
CFA Chapter 4 - Real Estate Returns and Inflation
CFA Chapter 4 - Current Value Reporting by Real Estate Fiduciary Managers

 Problem Set 3 is Due (June 10, 1999)

5 Real Estate Limited Partnerships

BF Chapter 12 - Partnerships, Joint Ventures, and Syndications pp. 393-419

6 Real Estate in a Mixed Asset Portfolio

CFA Chapter 4 - The Historical Perspective of Real Estate Returns
CFA Chapter 4 - Real Estate Risk and Return Expectations: Recent Survey Results
CFA Chapter 5 - Toward the Discipline of Real Estate Portfolio Management
CFA Chapter 5 - A Practical View of Real Estate and Modern Portfolio Theory
CFA Chapter 5 - Real Estate: The Whole Story
CFA Chapter 5 - Real Estate Portfolio Analysis: An Emerging Focus on Economic Location
CFA Chapter 5 - The Dimensions of Diversification in Real Estate
CFA Chapter 5 - Toward an Indexed Portfolio of Real Estate Part II: Recent Construction