Advanced Real Estate Finance and Development GSD 5303 Richard Peiser Frank Apeseche

Course objective This course is a second-level class for students who want to learn about more advanced topics in real estate finance and development. The course builds on GSD 5204 (Real Estate Development and Finance) and other similar first-courses in real estate at HBS and MIT.

Students should have a good working knowledge of basic real estate analysis, terminology, and concepts of DCF, IRRs, etc.

Course Topics Advanced financial analysis and deal structuring for land and building development Debt and equity capital – how to structure a capital proposal and where to go for different types of equity REITS, public real estate markets, and market cycles Buying distressed debt and non-performing loans with emphasis on Asian capital markets.

Richard Peiser How to analyze investment returns and structure development deals. Richard Peiser is the Michael D. Spear Professor of Real Estate Development at Harvard Design School.

Over 25 years leading Real Estate Businesses: Frank Apeseche Over 25 years leading Real Estate Businesses: 14 Discretionary Funds, $7B Capitalization 3 Public NYSE Real Estate Companies National Multifamily Real Estate Advisor: 1,000 employees, $5B in assets Nation’s largest multifamily GSE Lender Venture Capital Investment Firm focused on RE entity level investing

Topics Land and Community Development Income Property Development Small scale to new towns Financial Analytical Techniques Income Property Development Office, Residential, Retail, Industrial 5 stages of analysis – Combined Development Period/Operating Period Financial Analysis

J/Vs and institutional deal structures Asset allocation and international fund underwriting Non-Performing Loans and investing in distressed debt Securitization REITs Strategic decision-making

Topics Section will cover the essentials for successfully starting, building and managing Real Estate Enterprises

Topics Sequenced to build strong foundational understanding of concepts around starting, managing and leading a real estate company Optimizing analysis and decision making at asset level Strategic construction of RE portfolios Capitalizing Real Estate portfolios

Capitalizing Real Estate Companies Underwriting Real Estate Sponsors Managing the Enterprise Optimizing the Enterprise: Leveraging Strategy, Talent and Capital Start up considerations

Use of cases, lectures and problems sets geared towards Evaluating risk adjusted returns of real estate asset opportunities Constructing investment strategies for markets and cycles Accessing public and private capital

Managing and serving investors leading a business Optimizing long term entity success Evaluating career and employment opportunities

Guests Charles Lowrey –      Charles F. Lowrey is executive vice president and chief operating officer of Prudential’s U.S.-based businesses, comprising Prudential Investment Management, Prudential Retirement, Prudential Annuities, Individual Life Insurance and Group Insurance, which together had approximately $877 billion in assets under management as of September 30, 2012.

Richard Georgi –Global Managing Partner for Grove International Partners which is a spin-out of Soros Real Estate Partners, a firm he founded with George Soros in 1999. Michael Lander – CEO of the Lander Group, a developer of residential, retail, and mixed-use projects based in Minneapolis, Minn.

Jack Rodman – past managing partner of Ernst & Young’s Beijing office and head of Ernst & Young’s distressed debt practice worldwide. He has served as Financial Advisor to the governments of Japan and China for dealing with their non-performing loans.

Major Assignment The term project will constitute the major part of the grade along with occasional homework assignments and quizzes Each student will select either Frank Apeseche or Richard Peiser to work with on his/her Term Project MDES students may use the term project in partial fulfillment of their scholarly paper requirement

Classes Monday and Wednesday afternoons 3:30-5:00 Case instruction method supplemented by lectures Optional site visit to major Boston area development project