Real Estate Capital Markets

Catalog description

The purpose of this course is to provide the student with a comprehensive understanding of both theory and practice in residential and commercial real estate debt and equity capital markets. These markets finance approximately two thirds of all residential debt in the US and about one quarter of all commercial real estate debt. They are also at the heart of the past real estate bubble, collapse and ensuing lackluster performance in the US economy. We will also discuss their role in the current re-inflation of residential and commercial real estate assets. The approach will be to make sure students first have a thorough grasp of the relevant theories and models used to value these assets and then to critique the limitations of these theories. As a final project, students will be grouped into teams and given residential and commercial real estate securities to analyze on a Bloomberg to make investment decisions.