Professional Development Institute

Executive Level

Advanced Real Estate Development

July 20-21

Course Overview

A fundamental tenet of real estate development is that a project’s return should reflect its risk. The objective of this course will be to look at the qualitative and quantitative elements of risk and return in relation to the development process and explore ways to use this understanding to structure deals.

The course will begin by reviewing the stages of the development process and key decision points. With the development process as a backdrop, the course will explore risk and uncertainty, building a definition of risk that will guide course instruction and discussion. This section will also include a look at the traditional causes of risk and how to identify and mange these risks.  A discussion of new risks associated with the current economy will also be explored.

The course then shifts to answering the question, how does the risk profile of a proposed development process factor into establishing appropriate rates of return?  In this section the course will explore tools for determining returns, including simulation and real option methodology; tools which allow developers to identify and quantify uncertainty and flexibility.  In the concluding section, the course will evaluate deal structuring and ways to layer debt and equity based on the risk and return profiles.

Course content will be delivered through lectures, case studies, and industry guest speakers, with small-group work to reinforce learning. Reading materials and case studies will be sent in advance for attendees to prepare.

Course Objectives

• Identify key decision points in the development process and determine how the risk profile of development evolves in relation to these decision points and differs from the profile of a project
• Identify tools for a better understanding of the return on development projects
• Understand how to use the risk and return analysis to structure deals

Companion Courses

This course is designed to precede Strategic Thinking for Commerical Real Estate and Innovation and Entrepreneurship for Real Estate Professionals to create an executive level series of companion courses.

Who Should Attend

Students are assumed to understand the real estate development process and to have a solid understanding of real estate finance.  Advanced Real Estate Development is intended to be interactive in nature and students are encouraged to share real life examples that may inform class discussion.  This course is targeted to real estate professionals who have significant experience in the industry, and are expected to share real world examples.

Instructor

Tony Ciochetti is the Thomas G. Eastman Chair, Chairman, and Director of the MIT Center for Real Estate where he is also involved in teaching topics in real estate finance and development. He regularly consults on behalf of investment banks, rating agencies, institutional clients and development companies.  Prior to his academic career, Dr. Ciochetti spent 12 years in the private sector in the areas of commercial real estate development and consulting.

Registration + Fees

Course Fee:  $2,000.
Executive Series Fee:  $4,500 (10% discount). The Executive Series includes enrollment in Advanced Real Estate Development, Strategic Thinking for Commercial Real Estate, and Innovation and Entrepreneurship for Real Estate Professionals.

The program fee covers tuition, course reader, continental breakfast, and light refreshments. Registration and payment must be made at least one week prior to the course start date.  Course information, including the reader, will be made available once payment is received.

To register on-line with a credit card click here. If you would like to pay by bank check or wire transfer, please follow the instructions on the General Information page.

For additional information, please contact:

PDI Program Coordinator
MIT Center for Real Estate
Office of Professional Education
+1 617-253-6193
@mit.edu