Note: this is a course description from a previous semester. The Spring 2014 description will be updated as soon as it is available.
COURSE
NUMBER: EWMBA280.1
COURSE
TITLE: Real Estate Investment
UNITS
OF CREDIT: 3 Units
INSTRUCTORS:
Nancy Wallace
EMAIL
ADDRESSES: wallace@haas.berkeley.edu
MEETING
DAY(S)/TIME: Mondays, 6:00 – 9:30 PM
CLASS
WEB PAGE LOCATION (HTTP URL): http://bspace.berkeley.edu
PREREQUISITE(S): None
CLASS
FORMAT: The class format will be a
mixture of lectures and extensive case discussions.
REQUIRED READINGS: Bruggeman
and Fisher, Real Estate Finance and Investments, McGraw Hill, 2009.
BASIS
FOR FINAL GRADE: Midterm, final project.
ABSTRACT
OF COURSE'S CONTENT AND OBJECTIVES: This
is an introductory course in real estate investment and market analysis.
The course will begin with an introduction to the fundamentals of real estate
valuation and risk analysis including a consideration of the elements of
mortgage financing and taxation. The course will then address topics such
as the financial and economic fundamentals of residential and nonresidential
real estate markets, the regulation of land use and real estate development,
and an introduction to the tools needed to forecast real estate values.
The asset types we will consider include office buildings, single- and
multi-family residential, and retail properties. We will also discuss
alternative ownership strategies such as real estate investment trusts (REITs)
and real estate syndications and will consider current thinking about the
returns to real estate investment. Recent innovations in real estate
capital markets will be discussed and the implications of these innovations for
commercial and residential real estate development and investment will be
considered. Finally, and time permitting, we will discuss the role of
real estate in the financial crisis of 2008 and the great recession that
followed.
As a BILD experiential learning course, the primary
deliverable for this course will be a comprehensive analysis of repositioning a
series of related properties in the industrial district of West Berkeley.
This analysis will include concept development, full market analysis, funding
strategy, and entitlement and stakeholder consultation and approval
strategies. The project deliverable will be developed through the
coordinated efforts of several working teams of five to six students focusing
on different aspects of the project, including, as noted above, design, market
analysis, funding, and entitlements and stakeholder approval. For
example, the deliverable from the entitlements and stakeholder team will
include evidence of interviewing and assessing the objectives of numerous competing
stakeholders in the district, including the City of Berkeley, the University of
California, Berkeley, the local business owners association, the local
neighborhood or community association, and other relevant groups. The
course deliverables will be the product of extensive face-to-face interactions
with stakeholders, real estate professionals, design professionals and capital
market providers. The project will engage with virtually all of the
capabilities in the BILD program, with special emphasis on problem framing,
opportunity recognition, revenue model innovation, managing ambiguity and
conflict, team creativity and adaptive governance. A number of the
stakeholders will themselves play an active role in the vetting and approval
process for the final written group project and presentation. Students in
MBA280 who are also successful candidates for either the NAIOP Competition Team
or the Bank of America Low Income Housing Team will be allowed to substitute
their team competition products (written deal book and presentation) for the
final project for the class.
BIOGRAPHICAL
SKETCHES
Nancy
Wallace is a Full Professor of Real Estate at the Haas School of Business, the
University of California, Berkeley. She is Chair of
the Real Estate Group and is Co-Chair of the Fisher Center for Real Estate and
Urban Economics. She teaches asset-backed securitization, real estate
investment analysis, real estate strategy, and real estate finance at Haas. Her
research focus includes models of residential house price dynamics, mortgage
contract design and pricing, mortgage backed security pricing and hedging,
lease contract design and pricing, and executive compensation. She serves as a
visiting scholar at the San Francisco Federal Reserve Bank and the Universite de Cergy Pointoise, Centre de Recherche
THEMA (Theorie Economique, Modalisation, et Applications). Professor Wallace is the
President of the American Real Estate and Urban Economics Association and is a
member of its Board of Directors. She is also a member of the editorial boards
of Journal of Computational Finance and Real Estate Economics.
Robert
Helsley is a Full Professor and holder of the Chair in Real Estate Development
in the Haas School of Business at UC Berkeley, and is a co-chair of the Fisher
Center for Real Estate and Urban Economics. He joined the Berkeley-Haas
faculty in January 2009 from the University of British Columbia, where he held
a variety posts, including professorships in urban economics, public economics
and land management, Director of the UBC Center for Real Estate and Urban
Economics, and Senior Associate Dean for Faculty and Research. He
received his B.S. in economics and mathematics from the University of Oregon,
and his Ph.D. in economics from Princeton University. His research
focuses on the growth and development of urban areas,
the operation of private land markets, and the economic impacts of government
tax, spending and regulatory policies. He currently serves as a co-editor
of the Journal of Urban Economics, and was an Associate Editor of Regional
Science and Urban Economics from 1997 to 2004.