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

2. 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.

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

4. 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.

6. 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.

7. 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

8. 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

9. 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

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

13. 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

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

16. 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

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

19. 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.

20. 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.

21. 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.

22. 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

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