ED225 Commercial Real Estate Development FinanceThis course is designed for nonprofit organizations and public entities interested in getting involved with commercial real estate development. We will focus primarily on how to evaluate the financial feasibility of projects. Whether you are a developer, lender funder or advocate trying to encourage development in your community, understanding how to assess financial feasibility of potential projects will help you in your role. Students will review development budgets, create income/expense pro formas and calculate debt capacity, breakeven point and return on investment. Participants will learn how commercial properties are appraised and how to use capitalization rate to estimate value. We will assess projects using underwriting ratios and explore financing tools and sources to close financing gaps. We will look at how investment from a variety of sources can be combined to lower the WACC (weighted average cost of capital) in order to make projects feasible. We will also evaluate a project from the perspective of the equity investor and explore the financial impact of deductions, depreciation, tax credits and net proceeds from a sale. Project case studies will be used throughout the course and students will perform a series of analytical exercises. (A calculator is required.)Course length: 3 Days Tuition: $ 680 Course counts toward a professional certificate: Yes |
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