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11.432J / 15.427J Real Estate Finance & Investments II: Macro-Level Analysis & Advanced Topics, Spring 2003

Leading firms involved in real estate securitization in New York city.
Leading firms are involved in real estate securitization in New York city. (Photo © openphoto.net.)

Highlights of this Course

As the second in a two-course sequence (11.431J is the first), this course focuses on more advanced topics and the "macro" level, which pertains to decisions about collections of many individual real estate assets, that is, portfolio or firm level decisions and investment management considerations. The text is written by David Geltner, and the lecture notes correspond directly to chapters in the text.

Course Description

This course presents some of the major concepts, principles, analytical methods and tools useful for making investment and finance decisions regarding commercial real estate assets. As the second in a two-course sequence, this course focuses on more advanced topics and the "macro" level, which pertains to decisions about collections of many individual real estate assets, that is, portfolio or firm level decisions and investment management considerations. (More fundamental "micro" level analysis, pertaining to individual properties and deals, is covered in 11.431 taught in the fall semester).

This course also introduces and surveys the major public capital market real estate vehicles, REITs and MBS. Other topics treated include a selection among such subjects as real options, land valuation, development project financial analysis, corporate real estate, capital structure, portfolio strategy, equilibrium pricing of asset classes, investment performance measurement and benchmarking, investment management, and international real estate investing (not all subjects covered every semester). Students can take 11.432/15.427 without having taken 11.431/15.426 provided they have taken 15.401. Such students may have to do some review of the real estate terminology presented in the earlier course if they are not already familiar with basic real estate finance and investment terminology (see the "Key Terms" listed in the backs especially of Chs.1, 9, 11, 14, 16-18 of the text).

 

Staff

Instructors:
Prof. David Geltner
Prof. Tod McGrath

Course Meeting Times

Lectures:
Two sessions / week
1.5 hours / session

Level

Graduate

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