MSRED Courses

11.950J/15.990: Real Estate Capital Markets (H1)

Spring 2005

Instructors

Professor David Geltner
Office W31-310G
phone: 617-253-5131, fax: 617-259-6991
e-mail: dgeltner@mit.edu
Office hours: 2:30-4:00 Tue,Thur or by appointment (email, voicemail anytime.)

Tod McGrath
Office W31-310I
phone: 617-283-2338, fax: 617-781-749-0656
e-mail: wtod@advisore.com

Brian Anthony Ciochetti
Office W31-310C
phone: 617-253-3988, fax: 617-258-6991
e-mail: tony_c@mit.edu

Teaching Assistant

Konstantinos Kalligeros
phone: (617) 452-5422
e-mail: kkall@MIT.EDU
Office hours: TBA

Lecture

4:00-5:30 T,H
Room W31-301

Recitation

5:30-7:00 H
Room W31-310

Description and Objectives

This half-semester course introduces and surveys the major public capital market real estate vehicles, REITs and MBS (with primary emphasis on CMBS). Some background is also included in basic modern portfolio theory and equilibrium asset pricing. This course is primarily designed to provide MSRED students with a basic introduction to how real estate obtains financial capital through the public capital markets. Students can take 11.432/15.427 without having taken 11.431/15.426 provided they have taken 15.401. Such students may have to do some review of the real estate terminology presented in the earlier course if they are not already familiar with basic real estate finance and investment terminology (see the “Key Terms” listed in the backs especially of Chs.1, 9, 11, 14, 16-18 of the text).

Requirements

Text: D.Geltner & N.Miller, “Commercial Real Estate Analysis & Investments”, South-Western College Publishing Co., Cincinnati, 2001 (ISBN# 0-324-13676-5).
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Administration/Recitations

In addition to twice-weekly lectures taught by the primary instructor (or Case Instructor), there will usually be weekly recitation periods run by either the Case Instructor or the teaching assistant (and sometimes guest speakers). The course will include several case assignments or exercises, generally due during class. Recitations may also be used for guest lectures from industry leaders and for review of lecture material. An optional problem set may be distributed and reviewed prior to the exam. The course includes an optional (but highly recommended) field trip to New York City after the end of the official course (April 28-29) where we will visit leading firms involved in real estate securitization.

Grading

The grade will be based on a final exam (March 10) and the assignments. Grading will be done by the recitation instructor and late assignments will not be accepted. Overall course grading will be approximately as follows: