THE DEVELOPMENT PROCESS – SPRING 2007

Course Overview:

This course provides the step by step administration and policy and procedures utilized in the real estate development process including conceptualization, site acquisition, application to zoning and planning boards and township committees, administrating through various Federal, State and local governmental programs and entities, planning and design, financial evaluation, the construction process, raising equity, government financing, sales, leasing and management and the exit strategy.

Leadership, management and control of the development team are featured issues.

Course Objcectives:

  • Learn how to successfully negotiate through the entire real estate development process.
  • Empower the student to successfully participate in a real estate development transaction. The principles discussed in the class include: cycle analysis, market analysis, highest & best use analysis, land use and zoning, site analysis, securing equity & financing, due diligence issues, project planning and management, investment exit strategies.

Course Prerequisites:

Tier 1 core courses.

Required Textbooks:

  • Real Estate Development: Workbook and Manual (RED), Howard A. Zuckerman & George D. Blevins: Prentice Hall.
  • The Site Book (TSB) Richard M. Fenker, PhD – Go online its cheap.
  • Construction Funding (CF) Nathan Collier et al, 2002 Third Edition, John Wiley & Sons.
  • Recommended Textbooks and Readings:

    The course will focus on the Course Study Guide and handouts; however, it is highly recommended that students read the following:

    Books

    • There are several articles and actual deal books on Blackboard that will be helpful in understanding the concepts discussed in this course.
    • The Real Estate Game (REG) Poorvu, William J.; Cruikshank, Jeffery L, 1999, The Free Press.

    Periodicals

    • The New York Times (especially Sunday)
    • The Wall Street Journal (especially Wednesday)
    • Crain’s New York Business
    • Real Estate Weekly
    • The Real Deal

    Course Requirements:

    • Students are expected to attend all classes. Absent an emergency, requests to miss a class should be made at least one week in advance.
    • Active class participation is as important as attendance – interaction presents real life queries which lead to knowledge.
    • The Final Project will be announced at the first class.
    • There will be an in-class Mid-term exam on Thursday, March 1st.
    • Attached to this syllabus is a schedule outlining the topics that will be discussed during each class as well as student presentations, required readings, and written assignments. This schedule may be modified from time-to-time during the semester.
    • Students must check the Blackboard periodically and especially each week on the Monday following each class.

    Note to Required Textbooks:

    The Required Textbooks must be read by the third (TSB) and fifth (RED) week except the Construction Process book which must be read by the seventh week. The blackboard will be used extensively for the balance of the course and the blackboard material will involve extensive real world exhibits requiring significant time and attention.

    Final Grades:

    Each student’s final grade will be determined by taking into account the following factors:

    Class attendance and participation
    (2.0 points per class) 28
    Mid-term / assignments 32
    Final Project 40
    Total points available 100

    • Students are expected to attend each class (unless they have been excused by the professor in advance), arrive on time, have completed reading assignments, and participate actively and constructively in class discussions and activities.
    • Students must submit all assignments in hard copy and electronic form to the professor.
    • In preparing written assignments and the oral presentation, students should expect to be judged as they will be in the workplace. Written and oral presentations should be substantive, well thought out, competently organized, the content maintained on point, adequately informative and grammatically correct with a definitive plan of action and execution.

    Course Schedule:

    1. 1/18/07 Introduction to real estate development – Art composed of Science. Basic real estate principals, development activities and professionals involved- Team
      The Role of the Developer.- Ethics
      Readings: See Blackboard
    2. 1/25/07 Real Estate Cycle Analysis – Guest Speaker: Professor Edward Lombardo.
      Readings: (RED) Chapters 1-8, (TSB) Chapters 1-12, See Blackboard
    3. 2/01/07 Real Estate Market Analysis. Sources of and methods for gathering information. Inception of concept. Discuss final project & group team plan. Site Analysis
      Readings: (TSB) Complete Book, See Blackboard
    4. 2/08/07 Site Acquisition. Zoning and Permits. Feasibility analysis in the development process. Environmental Issues
      Readings: (RED) Review Chapters 5& 8, (CF) chapters 1-5, See Blackboard
    5. 2/15/07 Underwriting the development deal. Understanding the deal book. Partnership Agreements. Loan Documentation
      Readings: See Blackboard
    6. 2/22/07 Contract Negotiations / letter of Intent, Due Diligence Analysis and issues. Lease Issues. Financial Modeling
      Readings: See Blackboard
    7. 3/01/07 Mid-term Exam – first hour- 30 questions Lease Abstracts due
      Readings: , See Blackboard
    8. 3/08/07 Raising Equity & Sources of Capital. Guest Speaker- Billy Procida – Palisades Financial
      Readings: (RED) Review Ch 6, See Blackboard
    9. 3/22/07 Legal, Title, and Environmental Risks in the Development Process. Begin discussion on Construction issues. Guest Speaker: Andrew Brown- 5:00 PM Fred Cohen
      Readings: See Blackboard
    10. 3/29/07 Construction Loan Process and Financing Construction Contracts, Architectural Issues, Plan & Cost Analysis, Construction Draw Requests. Guest Speaker- Fred Cohen, Esq.
      Readings: See Blackboard
    11. 4/05/07 Property Management issues and alternatives.
      Readings: See Blackboard
    12. 4/12/07 Appearing before Zoning and Planning Boards. Understanding the and negotiating though the Governmental Process
      Readings: See Blackboard
    13. 4/19/07 – Oral presentation of Final Project.
    14. 4/26/07 – Review of oral presentations- and class discussion.