University of Southern California
Marshall School of Business
Department of Finance and Business Economics
FBE 470
Robert Bridges, A.I.A.
FBE 470 Advanced Topics in Real Estate Analysis
Course Overview:
This course covers a series of special topics in real estate finance and
investment. The areas that will be emphasized include acquisition and financing
of investment real estate including individual properties, property portfolios, asset
management, corporate real estate, acquisition and disposition strategies, public
and private partnerships, and entrepreneurship. The course is appropriate for
students emphasizing real estate with strong finance skills or students
emphasizing corporate finance with a desire to broaden their exposure to some
of the unique aspects of real estate. The use of advanced computer software is
emphasized.
Learning Objectives:
Students successfully completing this course will be able to understand industrystandard terminology and techniques for valuing income-producing real estate,
identifying risks and opportunities, as well as be able to gain advanced
capabilities in the methods for the creation and communication of finance
concepts, strategies, proposals and presentations. Students are expected to gain
competency in current software applications relevant to the real estate industry.
By means of a series of case studies, the student will develop a practical
understanding of how the formal finance and market analysis concepts learned
introductory classes are applied in a practical context. Students will also gain
insights into the roles of debt and equity in the structure of real estate
transactions, as well as syndications and partnerships.
Students will work individually and groups to analyze real-world real estate
cases, and prepare and present proposals in class.
Course Organization:
This course is in a seminar format with a number of individual and group
assignments including spreadsheet exercises, case analyses, and group
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projects. The class meets twice weekly and students are expected to have read
the relevant textbook, case and other assigned material prior to the classes
during which the topics are to be discussed.
Course Requirements:
Case Analyses
Final Case Presentation
Assignments
Attendance, preparedness and making a meaningful contribution
To the intellectual environment of the classroom
50%
30%
10%
10%
The assignments will be drawn from the course reader, from questions from the
chapters in the textbook, or from other current and newsworthy material covered
in class.
All homework assignments must be submitted in printed form during the
class session on the day they are due. No late work will be accepted.
Textbook, Equipment, Cases and Readings:
Required Resources: A course reader is available from the USC Bookstore
containing copyrighted material that will be used as a basis for discussion and
assignments during the semester. Students must have an HP 17bII+ financial
calculator, and access to a computer running the latest version of Microsoft Excel
and Word in order to complete assignments.
Students should have a copy of, and a complete working knowledge of the
material covered in FBE 391 in Breuggeman and Fisher, Real Estate
Finance and Investments, Latest Edition, Homewood Illinois: Irwin. Also, it
is assumed that students have covered the standard core material in
corporate finance and accounting.
In addition to the cases, there will be periodic readings related to the case
and lecture materials assigned and distributed by the instructor.
ARGUS Software:
Personal versions of ARGUS Financial Software are available for sale to
individual students for use during the course. It is recommended that the
software be purchased by those students contemplating its use outside of
the classroom. The software will not be used during the course, however,
ARGUS is commonly used in the real estate industry and familiarity with
the program may assist in placement for those students pursuing real
estate careers. ARGUS is available on our network but is not accessible
from off campus.
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An application for ARGUS will be distributed. The cost is a small fraction of the
retail cost of the software and includes a manual. The software (and license)
expire at the end of the school year.
Other Resources:
There are numerous periodicals that are relevant and good reading too
keep abreast of real estate events, trends, people, players and deals.
This is by no means an exhaustive list but a start. Among periodicals, the
National Real Estate Investor, Commercial Property News and the Real
Estate Alert (expensive weekly) provide good national coverage. The Real
Estate Review is an excellent applied Journal. The Property Report
appears in Section B of the WSJ every Wednesday. There are numerous
others. Local periodicals include the Los Angeles and Orange County
Business Journals. The Los Angeles Downtown News distributed free in
Hoffman Hall on Mondays often has real estate oriented articles regarding
the LA region. The LA Times Business Section has regular coverage of
commercial real estate on selected weekdays.
Websites that are of interest include:
www.reforum.com
www.nareit.com
www.tortowheatonresearch.com
www.boma.org
www.ncreif.com
www.argussoftware.com
www.ssctech.com/realestate/
www.nacore.com
www.ccim.com
Note: Student readings from the Brueggeman and Fisher Text, Harvard Business
School Cases and other cases in preparation for lectures and class sessions are
shown in boldface type.
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Tentative Schedule of Class Meetings:
Week 1
Course Overview
Week 1
Finance Principles Review
Week 2
Spreadsheet Review
Week 2
University View Case (To be distributed by Instructor)
Week 3
University View Case, Continued
Week 4
Culver Hts. Drive Case (To be distributed by
Instructor)
Week 4
Culver Hts. Drive Computer Exercises
Week 4
Culver Hts. Drive Continued
Week 5
Culver Hts. Drive Case Presentations
Week 5
Kevin Hopkins Case (To be distributed by Instructor)
Week 6
Kevin Hopkins Case, Continued.
Week 6
Kevin Hopkins Computer Exercises
Week 7
Kevin Hopkins Case, Continued.
Week 7
Kevin Hopkins Case Presentations
Week 8
Conejo Point Case (To be distributed by Instructor)
Week 8
Conejo Point Case, Continued.
Week 9
Conejo Point Computer Exercises
Week 9
Conejo Point Case, Continued.
Week 10
Conejo Point Case Presentations
Week 10
Sun City Case (To be distributed by Instructor)
Week 11
Sun City Case, Continued.
Week 11
Sun City Computer Exercises
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Week 12
Sun City Case, Continued.
Week 12
Sun City Case, Continued.
Week 13
Financing Corporate Real Estate, Sun City Case
B+F Chapter 14
Week 13
Financing Project Development, Sun City Case
B+F Chapter 15
Week 14
Sun City Case Final Presentations
Week 14
Leases
B+F Chapter 9
Week 15
RE Investment and Risk Analysis – Last Day of Class
B+F Chapter 10
Final Exam:
Refer to University Final Exam Schedule
Instructor Access:
The instructor will hold office hours by appointment only.
E-mail is the preferred method of communicating with the instructor.
Campus Office:
301F Accounting
Telephone:
310-494-6125
E-mail:
rbridges@marshall.usc.edu
Academic Integrity:
The use of unauthorized material, communication with fellow students during an
examination, attempting to benefit from the work of another student, and similar
behavior that defeats the intent of an examination or other class work is
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unacceptable to the University. It is often difficult to distinguish between a
culpable act and inadvertent behavior resulting from the nervous tensions
accompanying examinations. Where a clear violation has occurred, however, the
instructor may disqualify the student’s work as unacceptable and assign a failing
mark on the paper.
Returned Paperwork:
Returned paperwork, unclaimed by a student, will be discarded after 4 weeks
and, hence, will not be available should a grade appeal be pursued by a student
following receipt of his/her grade.
Students With Disabilities:
Any student requesting academic accommodations based on a disability is
required to register with Disability Services and Programs (DSP) each semester.
A letter of verification for approved accommodations can be obtained from DSP.
Please be sure the letter is delivered to the instructor as early in the semester as
possible. DSP is located in STU 301 and is open 8:30 a.m. - 5:00 p.m., Monday
through Friday. The phone number for DSP is (213) 740-0776.
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