Advanced Real Estate Finance

Case studies will introduce the complex analytical techniques required for portfolio analysis and asset allocation.

A Case-Based Analysis of Deal Structure and Risk Allocation

This capstone course in real estate finance will engage students in a series of challenging case studies designed to require that they apply simple and complex debt and equity ratios to make informed, risk-managed real estate decisions The course will help students understand how to structure commercial real estate transactions and how different structures allocate investment risk and return to each party. The course will introduce complex real estate finance topics, including real estate as an asset class, using property return indices, the effect of income taxation on deal structure, complex income streams, and the implications of the return waterfall. In-depth exposure to the capital market will illustrate the vital link between the space, capital, and development segments of the market in the development process.
Case studies will also introduce the complex analytical techniques required for portfolio analysis and asset allocation. Guest speakers from both the debt and equity side will provide real-world examples of current deals.

Participants are expected to bring a laptop computer with Microsoft Excel to the course.

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Principal Instructor

Charles Tu
Professor of Real Estate
Burnham-Moores Center for Real Estate
University of San Diego
San Diego, California

Charles Tu
Tu is the Daniel F. Mulvihill Professor of Commercial Real Estate at the Burnham-Moores Center for Real Estate at the University of San Diego (USD). Tu joined the USD faculty in 2004 and was appointed the academic director of the Master of Science in Real Estate (MSRE) program in 2010. He is also responsible for the curriculum of the undergraduate real estate major.

Tu’s research covers a wide range of topics, including housing valuation, smart growth and the new urbanism, sustainable and green buildings, commercial mortgage-backed securities (CMBS), real estate investment trusts (REITs), multifamily housing, retail shopping centers, and real estate education. He has published in many academic journals and for professional organizations such as the Urban Land Institute (ULI) and the Mortgage Bankers Association (MBA). Tu was a primary investigator of research projects sponsored by government agencies, including the U.S. Department of Energy, the U.S. Environmental Protection Agency, the California Energy Commission, and the District of Columbia Government. He currently serves on the editorial board of the Journal of Sustainable Real Estate.

Tu earned his PhD in business administration from the George Washington University (GWU) in 1999. He received the Chartered Financial Analyst (CFA) designation in 2000 and became a LEED Accredited Professional in 2009. He is ARGUS Software Certified (ASC) for both ARGUS Valuation-DCF and Developer. Before joining USD, Tu taught real estate and finance courses at GWU and California State University and Fullerton.

Contact ULI Education

David Mulvihill
Vice President,
Professional Development
DMulvihill@uli.org
202-624-7122

Program Highlights

  • U.S. economy and real estate capital markets
  • Analytical tools used to make optimal development decisions
  • Income pro forma, debt ratios, and equity ratios
  • Development feasibility case study
  • Effect of income taxation on deal structure
  • Advanced case study on deal structure
  • Commercial mortgage underwriting case study
  • Portfolio analysis of real estate in a mixed asset class
  • Incremental cost of funds: what does another dollar of debt really cost?
  • The impact of taxes on real estate investment
  • Industrial property case study—determining market rents and investor returns