COURSE NUMBER: MBA280.1
COURSE TITLE: Real Estate Investment and Market
Analysis
UNITS OF CREDIT: 3 Units
INSTRUCTORS: Nancy Wallace and Dwight Jaffee
EMAIL ADDRESSES: wallace@haas.berkeley.edu,
jaffee@haas.berkeley.edu
MEETING DAY(S)/TIME: Tuesdays and Thursdays, 9:30
– 11:00 AM
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 case discussions.
REQUIRED READINGS: Bruggeman
and Fisher, Real Estate Finance and Investments (14th Edition, 2010),
McGraw Hill.
BASIS FOR FINAL GRADE: Midterm, Case write-ups,
Course BILD project.
ABSTRACT OF
COURSE'S CONTENT AND OBJECTIVES: This is an
introductory MBA course in real estate investment and market analysis. The
course begins by introducing the fundamentals of real estate valuation and risk
analysis ,including mortgage financing and taxation. The
course then examines issues related to the financial and operational aspect of
real estate markets, including techniques to evaluate supply and demand in
these markets, as well as the determinants of rents, prices and development
patterns and zoning and other forms of land use regulation. The asset types
include both commercial buildings (e.g. office buildings and retail properties)
and residential( single- and multi-family). Alternative
ownership strategies such as real estate investment trusts (REITs) and real
estate syndications and data regarding the returns to real estate investment
are studied. Sources and solutions for the subprime crisis in real estate and capital
markets are discussed and the implications of innovations for commercial and
residential real estate development and investment are considered.
As a BILD experiential learning course, the primary deliverable
for this course will be a comprehensive analysis of repositioning available properties
in Berkeley CA and environs. This analysis will include concept development,
full market analysis, funding strategy, and entitlement and stakeholder
consultation and approval strategies. The project deliverable requires the
coordinated efforts of working teams, each consisting 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 stakeholder including the City of Berkeley,
the University of California, Berkeley, business owners, local neighborhood or
community associations, 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 and holds the
Lisle and Roslyn Payne Chair in Real Estate and Capital Markets at the Haas
School of Business, the University of California, Berkeley. She is Chair of the Real Estate Group,
Co-Chair of the Fisher Center for Real Estate and Urban Economics, a member of
the Haas Finance Faculty, and is a Faculty Co-Director of the Berkeley Center
for Law, Business & the Economy, the UC Berkeley School of Law. She teaches asset-backed securitization, real
estate investment analysis, real estate strategy, and real estate finance at
Haas. Her research focus includes
residential house price dynamics, mortgage contract design and pricing,
mortgage backed security pricing and hedging, lease contract design and
pricing, methods to underwrite energy efficiency in commercial mortgages, and
valuation models for executive stock options.
She has served as a visiting scholar at the New York Federal Reserve
Bank, the San Francisco Federal Reserve Bank, the Université
de Cergy Pointoise, Centre
de Recherche THEMA (Théorie
Economique, Modélisation,
et Applications), and the Stockholm School of Economics. Professor Wallace is a past President of the
American Real Estate and Urban Economics Association and a past member of the
AREUEA Board of Directors. She is on the
editorial board of the Journal of
Computational Finance. Professor
Wallace just completed a grant from the Society of Actuaries to develop metrics
for the accounting life of executive stock options and a grant from the
Department of Energy, joint with the Lawrence Berkeley National Laboratory, to
develop underwriting tools that account for the energy risk of commercial real
estate mortgages.
Professor Dwight Jaffee
is the Willis H. Booth Professor of Finance and Real Estate at the Haas School
of Business,
COURSE
NUMBER: MBA280.1