Real Estate Finance
Course Description: This course provides an introduction to concepts and principles associated with analyzing hospitality and multifamily real estate development projects. Through real-world examples, students will gain an understanding of the metrics which guide real estate investment decisions and an ability to clearly communicate this understanding to others.
Background: The topics covered in this course are based on concepts used at my full time job as a Vice President of Development Management at HRI Properties. HRI Properties is a New Orleans based real estate development firm with over $3 billion of projects completed or under construction during its 30 year history. You might be familiar with some of the projects I have worked on over the past 11 years. These include, among others, the Hibernia Bank Building, Nine27 Apartments, Bywater Art Lofts, Hilton Garden Inn FQ/CBD, The Strand/Aloft New Orleans Downtown, Homewood Suites New Orleans French Quarter, The Mayflower – Dallas, and the Hyatt Place/Hyatt House Downtown Indianapolis
Course Prerequisites: SRED 6100
Course Goals: This course is designed to give students the requisite background to succeed as a real estate finance professional at a commercial bank, investment firm, or development company while providing a broader appreciation of the entire development process.
Student Learning Objectives: As the result of this course, students should be able to:
1) Understand and prepare basic financial models for real estate transactions, including capital budgets, operating pro-forma, underwriting calculations, and investor and developer returns.
2) Appreciate all phases of the real estate development process from the inception of the idea to financial closing, the construction process, and asset management/disposition.
3) Analyze potential commercial real estate transactions while clearly providing original insight and creative solutions
4) Comprehend traditional financing sources including metrics lenders and institutional investors use to make investment decisions and understand availability of non-traditional sources.
Old Course Number: SRED 6420