FNAN 454: Real Estate Development and Investment Fund Master Syllabus
The syllabus will likely be updated throughout the semester and in response to any weather-related or other events that affect the course.
Course Instructor:
Office Number:
Office Hours:
Email:
Course Meeting Times:
Course Website: Canvas
This course will be delivered on-line, primarily synchronously, which means both professor and students will be attending the class live-streamed through a Zoom meeting. Information and class materials will be emailed to students and/or posted on the Canvas site for the course.
Course Description, Goals and Objectives
Real Estate Development examines commercial real estate development process and principles plus actual residential, office, retail, and industrial projects. Includes financial analytical techniques to investigate project feasibility, density, financing viability, cash flows, and valuation. Emphasis is placed on real-world, entrepreneurial, decision-making skills for developing commercial real estate. It is a required course for the Real Estate Development Minor.
The course objectives are for students to:
- Objective 1: Understand the role and history of real estate development in the social, economic, and political systems of a community
- Objective 2: Learn about the complex real estate development process and the multidisciplinary skills needed to successfully plan, execute, and deliver a real estate development project
- Objective 3: Apply concepts of risk-adjusted return to establish the financial feasibility of real estate projects
- Objective 4: Learn to evaluate different risks applicable to real estate development projects
- Objective 5: Apply concepts learned in class to case studies and site visits to development projects
- Objective 6: Explore roles and careers in the real estate development industry and related industries
Required Item for Class (that must be purchased)
textbook – “Real Estate Development: Principles and Process” (fifth edition) by Mike Miles, Laurence Netherton, and Adrienne Schmitz. Published by the Urban Land Institute, 2015. If there are issues in acquiring the book, please see me.
Other Required Items
- Access to a computer that meets the School of Business Minimum Computing Requirements.
- Canvas: Students must have access to Canvas, an on-line course management system that enables students to receive messages, observe grades, submit assignments, and access course material such as overheads, videos, and other relevant material. Students should not use the email feature associated with Canvas.
- George Mason University Email Account: Students are expected to have their George Mason email accounts activated, regularly check their inboxes, and keep adequate space available so that they can receive (and, of course, read) emails. Note that to help ensure privacy, faculty and students need to use their George Mason email accounts when corresponding with each other.
Course Schedule
The course schedule may be changed during the semester, depending on our progress and decisions by the University or School of Business regarding the academic calendar. If changes are made, I will notify the class via email and a revised schedule on Blackboard. The current schedule for the course is presented in Appendix A.
Evaluation and Grading
| Tests and Homework | 30% | The tests will consist primarily of essay questions, some short analytical problems and several short answer questions to measure breadth of knowledge and make sure the readings have been completed. |
| Mid-Term Exam | 30% | Students will be given essay-type exam. |
| Final Exam Case Study | 30% | Students will be given a case study on a real estate development feasibility decision one week before finals. |
| Class Participation | 10% | Attendance, Preparation, creativity, solution viability and presentation in answering questions on the required reading and case studies will be considered. |
Students are expected to attend all classes and are responsible for keeping themselves updated on any changes on the course website. In case of absence, it is the student’s responsibility to catch up with the material covered. Other than in exceptional circumstances, late assignments will not be accepted. Students should be prepared to discuss the assigned homework readings and current events in class.
The grading scale is as follows:
| Course Grade | Course Average | |
|---|---|---|
| A | 96-100% | Satisfactory/Passing |
| A- | 91-95% | Satisfactory/Passing |
| B+ | 86-90% | Satisfactory/Passing |
| B | 81-85% | Satisfactory/Passing |
| B- | 75-80% | Satisfactory1/Passing |
| C | 70-74% | Unsatisfactory/Passing |
| F | below 70% | Unsatisfactory/Failing |
Incompletes
A grade of incomplete may be given to students who are passing the course (with a C or higher) but who may be unable to complete scheduled coursework for a cause beyond reasonable control. An incomplete can only be given if a student is passing the course and has a documented excusable reason such as a serious illness or unanticipated family emergency for being unable to complete the remainder of the work as scheduled. Poor time management or failure to deal with a situation earlier in the semester would not be accepted as a reason for an incomplete.
An incomplete may not be appropriate for a student who misses a significant portion of the semester due to an extended illness or other situation. In these cases, the student should talk to a Costello College of Business academic advisor about a possible non-academic withdrawal.
Appendix A: Initial Course Schedule (Sample)
(subject to change; test and homework assignments to be provided)
| 1/25 | Class Introductions Lecture: What is Real Estate? (Part I) Case Study Presentation: Scout on the Circle Development |
| 1/27 | Lecture: What is Real Estate? (Part ii) Reading Assignment: Chapter 1 (Introduction to the Real Estate Development Process) |
| 2/1 | Lecture: Demographic Shifts in Real Estate (TBD for Feb. 2 webinar) Reading Assignment: Chapter 2 (Raw Material: Land and Demographics in the United States) |
| 2/3 | Lecture: The Development Team Reading Assignment: Chapter 3 (Developers and Their Partners) Case Study Presentation: The District Wharf |
| 2/8 | Lecture: History of Real Estate Development I Reading Assignment: Chapter 4 (The Colonial Period to the Late 1800s) View Video: “A History of Segregation and Housing in Virginia” |
| 2/10 | Lecture: A History of Real Estate Development 2 Reading Assignment: Chapter 5 and 6 (The Late 1800s to the Modern Era) View Video: “A Region Rising: A Development History of Northern Virginia” |
| 2/15 | Lecture: Government Impact on Real Estate Development 1 Reading Assignment: Chapter 7 (The Role of the Regulatory Sector) Case Study Presentation: The Wayfair in Ballston |
| 2/17 | Lecture: Government Impact on Real Estate Development 2 Reading Assignment: Chapter 8 (Decision Makers and Stakeholders) |
| 2/22 | Mid-Term Examination Week |
| 2/24 | Mid-Term Examination Week |
| 3/1 | Lecture: The Real Estate Pro-Forma Reading Assignment: Chapter 9 (Stage One of the Development Process) |
| 3/3 | Lecture: Finding the Money Reading Assignment: Chapter 10 (Real Estate Finance) |
| 3/8 | Lecture: Measuring Risk and Return Reading Assignment: Chapter 11 (Real Estate Finance: Tools) |
| 3/10 | Lecture: Controlling the Land Reading Assignment: Chapter 12 (Stage Two: Idea Refinement) |
| 3/15 | Spring Break |
| 3/17 | Spring Break |
| 3/22 | Lecture: Is There a Market? Reading Assignment: Chapter 13 (Stage Three: The Feasibility Study) |
| 3/24 | Lecture: Closing the Deal Reading Assignment: Chapter 14 (Stages Four and Five) |
| 3/29 | Lecture: New Trends in Construction Reading Assignment: Chapter 15 (Construction) View Video on Prefab Construction |
| 3/31 | Lecture: Creating the Value Reading Assignment: Chapter 16 (Marketing, Sales and Leasing) |
| 4/5 | Site Visit 1 |
| 4/7 | Lecture: Maintaining the Value Reading Assignment: Chapter 17 (Property, Asset and Portfolio Management) |
| 4/12 | Site Visit 2 |
| 4/14 | Lecture: Affordable Housing Development |
| 4/19 | Affordable Housing Case Study Presentation |
| 4/21 | Lecture: Green Development – Sustainability and Real Estate Case Study: 80 M Street SE |
| 4/26 | Site Visit 3 |
| 4/28 | Lecture: Technology and Real Estate Development Case Study: Autonomous vehicles and the real estate |
| 5/3 | Lecture: Case Studies in the DMV |
| 5/5 | Careers in Real Estate Development |
| 5/10 | Student Consultations |
| 5/12 | Finals Week: Case Study Exam Due |
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