11.431J | Fall 2006 | Graduate

Real Estate Finance and Investment

Lecture Notes

Some of the lecture notes span more than one class session; they are included in the first session only.

1 Course introduction (Geltner) (PDF)
2 DCF (McGrath) (PDF)
3 DCF (cont.) and NPV (McGrath)
4 NPV (Geltner)
5 Real estate cash flows, proformas (McGrath) (PDF)
6 Real estate opportunity cost of capital (McGrath)
7 Leverage (McGrath) (PDF)
8 Case 1: Private practice case I due (McGrath)
9 WACC formula (McGrath)
10 After-tax cash flows (McGrath)
11 After-tax investment analysis and capital budgeting (Geltner) (PDF)
12 Commercial mortgage underwriting (Geltner) (PDF)
13 Case 2: Private practice case II due (McGrath) (PDF)
14 Exam 1 (Chapters 10-13, 14.1-5)
15 Development financial feasibility (Geltner) (PDF)
16 Development project evaluation (Geltner) (PDF)
17 Intro case 3, madison project example (Geltner)

Madison example (cont.)

Finish development project investment analysis (Geltner)

19 Case 3: One Lincoln St case I (development) due (McGrath)
20 Lincoln (post) and Inter-Mountain (pre) case discussions (Geltner)
21 Capital structure debt vs equity, etc. (Geltner) (PDF)
22 Project level capital structure (Geltner)
23 Real options and land value (Geltner) (PDF)
24 Real options and land value (cont.) (Geltner)
25 Case 4: “Inter-Mountain” development project case (Larry Ellman, Citigroup) guest participant
26 Case 4 debriefing; review and catch up (Geltner)
27 Real options (cont.) review, catch up (Geltner)
  Final exam (Cumulative with emphasis on 17.1, 18.2, 15.3, 27, 28, 29.1 and 29.3, and lessons from Cases 3 and 4)

Course Info

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Lecture Notes