PLANA4312 Real Estate Finance II Fall 2024C/C++

Java Python SYLLABUS

CLASS TITLE: Real Estate Finance II

SEMESTER YEAR: Fall 2024

COURSE NUMBER: PLANA4312

I. COURSE DESCRIPTION

Taught in conjunction with Underwriting Intensive, Real Estate Finance II will build upon the major topics from Real Estate Finance I and take a deeper dive into the mechanics of real estate debt and equity.

This core course will piece together micro-level components of finance through weekly homework. These assignments build on students’ technical skills week after week until the subject matter becomes clear, ultimately giving students a head start on the core material taught in the following semester.

Students will also gain exposure to a number of different mortgage products, equity structures and industry vernacular, as well as the major loan conditions and features that are utilized across all types of capital providers in various markets. In doing so, students will understand why real estate finance is such a large part of their education at Columbia and a crucial component of the commercial real estate industry.

II. COURSE REQUIREMENTS AND ASSIGNMENTS

Students are expected to attend every class and complete and submit each homework assignment (if due) prior to the start of class. Each assignment will build on the previous assignment and will ultimately prepare students for their exams. All students are expected to complete their work individually.

Students are encouraged to bring questions to class so the course can focus on the areas students got stuck or needed clarification. Since homework is reviewed in detail, students are expected to heavily participate.

Office hours are always open. Please do not hesitate to come by, especially if you are struggling with the homework or concepts in class.

Reminder - Columbia Counseling and Psychological Services are always there to help - especially if you feel things are getting too much. There is no shame in asking for help. For their resources, please click HERE (https://www.health.columbia.edu/content/counseling-and-psychological-services-columbia-university) .

Policy on ChatGPT and other AI Tools: Students are not allowed to use generative Artificial Intelligence (AI) or machine learning tools to complete deliverables for this course. Individuals must complete their own work and properly acknowledge the circumstances, ideas, sources, and assistance upon which the work is based. The use of AI is prohibited in this course and shall be treated similarly to unauthorized assistance and/or plagiarism per Columbia University’s academic policy (https://cssi.columbia.edu/content/academic-violations) .

III. COURSE GRADING CRITERIA

Below is a breakdown of the course grade:

· Completion of Homework: 30%

· Attendance and in-class participation: 10%

Exams: 60%

Only exceptional performers will receive a High Pass.

IV. COURSE OUTLINE (dates and topics are subject to change)

Class 1: September 5th – Syllabus Overview, Introduction of the Mortgage, Stabilized Mortgage Underwriting

Homework due: None

Class 2: [NOTE: CLASS HAS A 4PM ET START for GUEST SPEAKER] September 12th

Distinguished Speaker Series: A Conversation with Simon Ziff, President of Ackman-Ziff.

Homework due: None

Class 3:  September 19th – Sizing the Mortgage I - Loan Amortization Table + I/O, DSCR Loan Sizing and Basic Loan Conditions

Homework due: Debt HW1

Class 4: [ROOM CHANGE: PUPIN HALL 428 (6:50 START TIME)] September 26th - Sizing the Mortgage II (LTV/LTV/DY), Fee Schedules and Constructing the S&U Table

Homework due: Debt HW2

Class 5: October 3rd Mezzanine Loans, Refinancing Scenarios and the Basic Pro Forma

Homework due: Debt HW3

Class 6: [ROOM CHANGE: PUPIN HALL 428 (6:50 START TIME)] October 10th Structures and Sensitivities & Midterm REVIEW SESSION

Homework due: Debt HW4

NOTE: Students should come prepared with questions for the professor to review.

Class 7: October 17th MIDTERM EXAM

Homework due: None

NOTE: ATTENDANCE IS REQUIRED. IF YOU REQUIRE AN EXAM ACCOMODATION YOU MUST EMAIL THE PROFESSOR BY 10/11.

Class 8: October 24th Equity Structuring Overview

Homework due: None

Class 9: October 31st– Waterfall Refresher and the Equity Capital Account

Homework due: None

Class 10: [ROOM CHANGE: PUPIN HALL 428 (6:50 START TIME)] November 7th Entity Level

Costs and Fees

Homework due: Equity HW1

Class 11: November 14th Double Promote Waterfall and Advanced Structuring Considerations. Homework due: Equity HW2

Class 12: November 21st REVIEW SESSION, Open Forum to Answer Student Questions Homework due: None

Class 13: December 5th FINAL EXAM

Homework due: None

NOTE: ATTENDANCE IS REQUIRED. IF YOU REQUIRE AN EXAM ACCOMODATION YOU MUST EMAIL THE PROFESSOR BY 11/30         

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