RE119 - Capital Markets

Course description


The commercial real estate industry is a voracious consumer of third-party capital because of its defining economic characteristic of slow capital turnover. Third-party capital may take the form of debt, equity, or sometimes a combination of the two. In recent years, the public markets have become an increasingly important yet volatile force that, when combined with the traditional private channels of debt and equity finance, has resulted in an ever-widening array of financial alternatives.

Topics: This course examines these alternatives by comparing and contrasting the types of capital that are available to a project from a variety of suppliers, including commercial banks and thrifts; insurance companies; pension funds; conduit lenders; credit companies; and REITs.

Prerequisites


Prerequisites: Fundamentals of Investment Analysis (RE 107) and Fundamentals of Real Estate Finance Analysis (RE 112). Underwriting the Commercial Mortgage (RE 116) is recommended.