DRAFT
THE INTERNATIONAL BUSINESS SCHOOL
BRANDEIS UNIVERSITY
REAL ESTATE FUNDAMENTALS
BUS 235a
Spring 2016
Monday & Wednesday 11am – 12:20pm
Linda Stoller
Email: lstoller@brandeis.edu
Phone: 617-733-2144
Office Location:
Office Hours:
TBD
1pm- 2:30pm M/W
and by appointment
OVERVIEW
This course serves as an introduction to the real estate industry, touching on valuation, financing
and operations of income producing properties as well as some societal issues related to the
ownership, financing and regulations of real estate. Using lectures, case studies, and guest
speakers, we will explore the largest asset class in the world. We will learn industry
terminology, review determinants of value, and discuss the regulatory and legal environment of
real estate. In addition, we will study affordable and senior housing.
LEARNING GOALS AND OBJECTIVES
Recognize and evaluate the determinants of value: individual property characteristics, market
conditions or supply and demand, capital market influences, and public policy effects
Be familiar with the legal and regulatory environment for real estate: property rights and
limitations, regulatory concerns, and contracts related to real estate such as leases and purchase
contracts
Understand the sources of capital and capital structure of real estate acquisition: including
the amount, cost, and other market terms for debt
Estimate the value of income producing properties: understand the factors that impact real
estate value including design, markets – including capital markets, public policy and the
financial methods used including the income approach, market approach, and sales approach
with emphasis on the discounted cash flow analysis
Understand the roles and responsibilities of the “players” in the real estate marketplace
PREREQUISTES
FIN 212a, thought you may take it concurrently with this course
COURSE REQUIREMENTS
Attendance and Participation
Class attendance is required and students are expected to arrive at class prepared to discuss the
day’s topics. For a number of classes, a case is assigned. It is critical to the learning process that
each student come prepared to discuss the case and their solutions in detail. Students are
expected to use name cards at every session.
Academic Honesty
You are expected to be honest in all of your academic work. Please consult Brandeis University
Rights and Responsibilities for all policies and procedures related to academic integrity. Students
may be required to submit work to TurnItIn.com software to verify originality. Allegations of
alleged academic dishonesty will be forwarded to the Director of Academic Integrity. Sanctions
for academic dishonesty can include failing grades and/or suspension from the university.
Citation and research assistance can be found at LTS – Library Guides.
Disabilities
If you are a student with a documented disability on record at Brandeis University and wish to
have a reasonable accommodation made for you in this class, please see me immediately. Please
keep in mind that reasonable accommodations are not provided retroactively.
Grading
Students will be graded on their class participation, written assignments and final team
presentation. The assignments are a mixture of individual and team assignments. Assignments
will be posted on LATTE approximately one week before the assignment is due. Unless
otherwise indicated on LATTE, students are allowed to discuss assignments with classmates.
However, written assignments should be solely the work of the individual or the group as
indicated on LATTE.
Written Assignments*
60%
Final Presentation
20%
Class Participation**
20%
*Written Assignments will be posted on LATTE approximately 1 week before they are due
**You are expected to attend each class and to arrive prior to the start time. If you know that you will miss a class, please
contact me ahead of time. Attendance will be taken. If you attend class but do not contribute to class discussion or ask
thoughtful questions you will receive a participation grade of C+. Meaningful participation will improve your participation
grade.
Course Materials
This course utilizes readings and cases from the Harvard Business Publishing. You will need to
establish an account in order to purchase the required materials, if you do not already have one.
Please access the site here: https://cb.hbsp.harvard.edu/cbmp/access/43523979 and look for Real
Estate Fundamentals – Spring 2016.
Harvard Business Publishing materials are in .pdf format and should be viewed with Adobe
Reader which is available free at www.adobe.com You will have immediate access to Harvard
Business Online upon placing the order. For subsequent access, you will be required to logon, so
please save your account settings.
NOTE: This material is copyright protected, so each student MUST purchase their own
course pack and sharing the material from HBS Publishing is expressly prohibited.
Additional readings may be posted on LATTE.
OPTIONAL READING: Students have the options of purchasing an eBook on the McGraw Hill
Create website. To purchase this book (which is a required text for the course) follow the
instructions below:
1. Go to:
https://create.mheducation.com/shop/
2. Select the eBook via the following ISBN number:
9781308732251
3. Add the book to your cart and pay using a credit card. The book costs approximately
$80.
The eBook above consists of selected chapters from Real Estate Principles: A Value Approach,
Fourth Edition by David Ling and Wayne Archer. ISBN 978-0-07-304621-1. NOTE: You may
find this entire text available used in either the 3rd or 4th edition for less than the eBook. Feel free
to choose to purchase in this manner.
CLASS SCHEDULE - Subject to Change at Professor's Discretion
Session
1
Date
1/13
Day
Topics/Chapters
Reading
W
Introduction – The Nature
of Real Estate and Real
Estate Markets
A Note on
Real Estate
Research
HBS Packet
NO CLASS – Martin Luther
King Day
1/18
2
1/20
W
CASE – Pickney Street
HBS Packet
3
1/25
M
Financial Analysis and
Valuation
Financial
Analysis of
Real Property
Investments
HBS Packet
4
1/27
W
CASE – Millegan Creek
HBS Packet
Real Estate Financing
Markets
Note on
Commercial
Real Estate
Financial
Market and
Understanding
the Credit
Crisis of 2007
to 2008
HBS Packet
5
6
2/1
2/3
Assignments (due
the next class)
Prepare and
submit Exercise 1
and 2 in Real
Estate Financial
Analysis Workbook
– see Topic One on
LATTE
M
W
CASE – Angus Cartwright
IV
HBS Packet
Prepare questions
listed in Topic Two
on LATTE
Prepare and
submit Exercise 3,
4, and 5 in Real
Estate Financial
Analysis Workbook
– see Topic One on
LATTE
Prepare questions
in Topic Four on
LATTE
Prepare questions
in Topic Six on
LATTE
7
8
2/8
2/10
M
W
2/15
–
2/19
Players and
Responsibilities
CASE – Holt Lunsford
Principals,
Agents and
Partners and
Tenant and
Landlord
Rights
HBS Packet
HBS Packet
Prepare questions
on Topic 8 on
LATTE
Real Estate
Investment
Trusts
HBS Packet
Assignment posted
in Topic 9 on LATTE
NO CLASSES – MIDTERM
BREAK
9
2/22
M
Real Estate Securities
10
2/24
W
GUEST SPEAKER
11
2/29
M
Problem Properties
See LATTE
12
3/2
W
CASE – Steel Street
HBS Packet
13
3/7
M
CASE – Pilgrim Assurance
HBS Packet
Prepare questions
on Topic 12 on
LATTE
Prepare questions
on Topic 13 on
LATTE