Understanding Real Estate Capitalization (Cap) Rates

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Date:
September 24, 2014
Time:
1:30 pm - 3:30 pm
Category:
Venue:
Webinar
Organizer:
David Mulvihill, Vice President, Professional Development
Phone:
202-624-7122
Email:

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http://uli.peachnewmedia.com/store/seminar/seminar.php?seminar=30140
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September 24, 2014           1:30 – 3:30 p.m. ET

Real estate professionals often talk about real estate capitalization rates (“cap rates”). But do they really know where they come from, what they signify, and how they can be applied to understand real estate valuation across markets, over time and through the development process? Part of the difficulty is that the cap rate can reflect many different components of a real estate project’s valuation. It is, in effect, an “all in” index incorporating conditions in capital markets, investor perceptions of regional and sector differences, expectations on the stability or potential growth of cash flows, and projections about future market conditions. There is a lot of information represented in just one number.

This webinar explores the multiple inputs that determine a cap rate and explains how a developer, investor, lender or broker can apply that understanding to making better, more informed decisions in the real estate market. It further illustrates how to use cap rates as descriptors of project and investment viability.

Instructor

Charles A. LongCharles Long
Principal
Charles A. Long Properties
Oakland, CA

Charles A. Long is a developer specializing in mixed-use infill projects, including acquisition, entitlement and public private partnerships.

He served for eight years as city manager in Fairfield, California.  Since 1996, he has worked as a consultant to public and private clients on development and management.  He has held interim positions for several cities in finance, redevelopment and management, including Interim Town Manager of Mammoth Lakes and Interim City Manager of Pinole and Hercules, California.   His assignments have been diverse including negotiating development agreements, writing redevelopment plans, pro-forma analyses, strategic planning, economic development, organizational development, capital and financial planning, budget reform, base reuse and alternative energy development. He has overseen over $600 million of public financing in his career.

Mr. Long is a full member of the Urban Land Institute and, within ULI, a member and Vice Chair of the Public Private Partnership Council. He is a faculty member of the ULI Real Estate School, teaching both in the US and internationally, and a faculty member at San Jose State University Urban and Regional Planning Department.  He has worked on seventeen ULI Advisory Panels, chairing panels in Salem, OR, Boise, ID, Dallas, TX, Buffalo, NY and Pasco County, FL.   He received the 2012 Robert M. O’Donnell Award for distinguished service in the advisory program.  He is co-chair of the Sustainability Committee for the San Francisco District Council and, in that capacity, initiated several reports including recommendations for streamlining California’s environmental review process and a directory of financing sources for building efficiency.  He is also building a program called Real Estate 101 for Public Officials, training a volunteer faculty to teach public officials about how to do public private partnerships.  He is the author of the book, Finance for Real Estate Development, published by ULI in April 2011 and winner of the 2012 National Association of Real Estate Editors Silver Award.

Mr. Long has a BA in economics from Brown University and a Masters of Public Policy from U. C. Berkeley.  He served in the U.S. Army as an infantry platoon sergeant.

Registration

Member: $125
Nonmember: $165
Govt. nonprofit member: $100
Govt. nonprofit nonmember: $135

Attendee Takeaways

 *A comprehensive understanding of how existing and anticipated capital and real estate market conditions, property characteristics and regional and sector differences determine a particular real estate capitalization rate.


* How real cap rates determine property value in investment decisions over a time horizon.


* How to evaluate the viability of a real estate development project by comparing its “development cap” to the current market cap rate.


* How to analyze and portray investment and development opportunities based on existing and projections of future cap rates.