Real estate represents the largest asset class in the world and is historically the asset most closely associated with wealth. Our objective is to understand the financial characteristics of incomeproducing real estate by focusing on capital costs, cash flow characteristics, discount rates, exit values, and required rates of return. We will explore some of the unique characteristics that shape the economic performance of real estate assets through the extensive use of case studies. We will deploy a set of analytical tools to model potential economic outcomes of real estate investments; review the most common sources of capital deployed in income producing properties; and explore how securitization and secondary markets have revolutionized financing approaches, not always with positive results.
Prerequisite(s): Financial Management module BFIN 2409 and BFIN 2410 Financial Management 1 & 2, respectively.