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Fall 2002
This information effective
for Fall 2002.
Check with instructor the first day of class for any changes.
R. E. Grieson
SSI Room 249
phone: 459-2968
email: grieson@cats.ucsc.edu
Background: The course emphasizes rigorous theory, which is necessary in order to deal with applied and public issues. It is recommended that you review your 100A in preparation for this material, especially utility maximization and its techniques: income and substitution effects, etc. *Will be covered more thoroughly and theoretically than in the text.
Required Text: Neil Bruce, Public Finance and the American Economy, Addison Wesley, 1998.
Roman numerals refer to topics not weeks in the quarter—various topics take more or less than a week to cover.
R. E. Grieson
SSI Room 249
phone: 459-2968
email: grieson@cats.ucsc.edu
Introduction and Overview
This course is an analytical introduction to real estate investment analysis. The course emphasizes the use of financial and economic principles intertwined with some "street smarts" and common sense. Students are assumed to have had Economics 100A.
(This course is not a course on mortgages or mortgage pricing. We will, however, briefly cover mortgages in the context of real estate investment.)
The first few classes are designed to give the student a taste of real estate development by review of some of the players as well as organizational issues in real estate. Thereafter, the course is divided into two main sections.
The first section of this course deals with the tools needed to analyze cash flows and real estate. It is necessary in order to understand the practical application of real estate investment.
The second section of the course looks at three major types of commercial real estate development: Office, Industrial, and Retail. Along the way, we will deal with various issues in Urban Economics including (1) location decisions by households and firms, (2) zoning, (3) property taxes, and (4) the role government plays in shaping urban development. These issues are practical ones facing developers. Depending on the pace of the course we will also discuss "Trends and Issues," an attempt to look at the "big picture."
A midterm, a final, attendance, and constructive participation. Do all readings before class.
They should be available at the book store. In light of the cost of textbooks, there shall be no reader. Of course, you are responsible for all lecture notes.
Required Text: Professional Real Estate Development, by Richard B. Peiser, Dearborn Financial Press, 1992.
Suggested Reading: The
Wall Street Journal, 1992-2000
Investment
Analyses for Real Estate Decisions, by Gaylon Greer, Dearborn Press, 1997.
California
Real Estate Principal, David L. Schalow, Southwestern, 1998.
There is no explicit way to make up a missed class. The best alternative is to copy lecture notes from a classmate. Missed classes may affect your participation grade.
The order of lecture topics and their associated reading are as follows: This schedule is only a blueprint and may vary with reality.
I. Introduction and Course
Overview
II. Overview of Real Estate Development
(Peiser Chapter 1)
A. What is a developer?
B. Requirements for Success
C. Finding the First Deal?
D. Managing the Development Process
III. Organization for Development
(Peiser Chapter 2)
A. The Firms Organization and Management
B. Choosing Consultants and Contractors
C. The Design/Constructive Teams
D. Real Estate Service Firms
E. Lenders
IV. Land Development
(Peiser Chapter 3)
A. Introduction
B. Project Feasibility
C. Design and Site Planning
D. Financing
E. Marketing
F. Covenants & Associations
V. Residential Development
(Peiser Chapter 4)
A. Introduction
B. Project Feasibility
C. Design
D. Financing
E. Construction
VI. Office Development
(Peiser Chapter 5)
A. Introduction
B. Project Feasibility
C. Financing (brief overview)
D. Marketing and Leasing
E. Operations and Management
VII. Industrial Park and Building Development
(Peiser Chapter 6)
A. Introduction
B. Project Feasibility
C. Design and Construction
D. Financing (brief overview)
E. Marketing
F. Property Management
VIII. Retail Development
(Peiser Chapter 7)
A. Introduction
B. Project Feasibility
C. Design and Construction
D. Financing (brief overview if needed)
E. Marketing
F. Operations and Management
X. Trends and Issues
A. Trends
B. Social Responsibility