Real Estate Investment and Capital Markets (Coming in 2018)

Real Estate Investment Capital

Real Estate Investment and Capital Markets

Real Estate Investment and Capital Markets examines at an intermediate to senior level the intersection of real estate space markets and real estate capital markets by exploring in depth the Four Quadrants of Real Estate Finance: (1) private debt, (2) public debt, (3) private equity, and (4) public equity, and their application to real estate space markets, as well as exploring derivative markets that involve real estate.

A thorough range of topics in equity real estate investment are examined, including private equity markets, private equity deal structuring, public and private real estate investment trusts (REITs), problems in measuring risk and return, structuring optimal portfolios, portfolio valuation issues, valuing publicly traded real estate securities, performance evaluation and attribution, and real estate risk management techniques. The course also covers a variety of topics in commercial real estate debt markets, including the structure of the U.S. mortgage finance system, the valuation of mortgages, and commercial mortgage-backed securities.

Students will generally wish to take Basic Real Estate Finance and Advanced Real Estate Finance (which largely continues BREF into more advanced topics) before taking Real Estate Investment and Capital Markets. The course also correlates with the Financial Analysis of Development Projects course.

About On-demand Courses

This is an edited version of a previously recorded, live, online course. Student and instructor comments are the opinions of the individuals and do not necessarily reflect the views of NAIOP.

All handouts and resource materials are posted with the module to which they belong, as well as an evaluation and assessment at the end of the course.

To receive proof of attendance for this course, each student must attend/view all eight modules and complete the evaluation.

As a NAIOP Certificate candidate, you must complete all eight modules in the Basic Real Estate Finance On-demand course, submit the evaluation, and pass the end-of-course assessment with a score of 80 percent or better.

If you experience any difficulty with accessing this on demand course or its materials, please email education@naiop.org or call 703-904-7100, 8:30 a.m.–5:30 p.m. (ET), Monday–Friday. You can also view the FAQ here.

Lesson Plans

Module 1

Capital Markets

Time: 3:45 a.m. - 6 p.m. (Eastern Standard Time)

Date: October 18, 2017

This session will address the interaction of real estate space markets with the real estate capital markets. Students will gain an understanding of the current size and participants of the public and private, debt and equity, commercial real estate capital markets and will be able to define the types of real estate financed by the real estate capital markets. We'll also explore the various real estate investment strategies and define the major indices that measure public and private real estate investment returns over time.

Learning Objectives

  • Describe how the intersection of space and capital markets create value
  • Analyze the pros and cons of investing various property types
  • Introduce the four quadrants of real estate capital markets
  • Describe the four main investment strategies in commercial real estate
Facilitator for this Lesson:
Jason S. Ting

Jason Ting

Principal

Ting Realty

Tulsa, Oklahoma

Subject Area:

Jason Ting is co-founder of Ting Financial Group, a niche private equity real estate investment firm, and principal of Ting Realty, a full-service real estate development, management and brokerage company. His direct responsibilities include acquisitions and dispositions, property management and leasing, domestic and foreign client relations, and new business formation. 

Module 2

Private Debt: Underwriting Traditional Mortgage Loans

Time: 4 p.m. - 6 p.m. (Eastern Standard Time)

Date: October 25, 2017

We will discuss the commercial mortgage capital markets in regards to lenders, mortgage types and terms. Students will review and understand the contents of a loan submission package in addition to reviewing permanent loan underwriting guidelines and understanding how lenders make decisions on financing commercial property. Finally, students will take part in a case study in underwriting a commercial mortgage.

Learning Objectives

  • List types of commercial mortgages
  • Explain lenders and borrower challenges with commercial mortgages
  • Discuss the lending decision making process
  • Perform a quantitative analysis of a loan application
  • Describe the ramifications of defaulting on a loan and negotiation tactics
Facilitator for this Lesson:

Anthony Polston

Founder and Principal

Black Cap Halcyon

Subject Area:

Black Cap Halcyon was founded by Anthony (“Tony”) Polston, an industry veteran who brings over 20 years of commercial real estate experience to the BCH team. Polston has more than 17 years of direct experience investing for institutional balance sheets and nearly three years of public accounting audit experience for real estate related companies, including national REITs such as Simon Property Group and Equity Residential Properties, as well as development and construction firms. Prior to founding Black Cap Halcyon, Polston successfully served in varying capacities of increasing responsibility within the real estate managed investments department of The Northwestern Mutual Life Insurance Company, a Fortune 150 financial services company with over $193 billion in invested assets. In those roles, he was directly involved in arranging, negotiating, closing, leasing, managing and servicing well in excess of $35 billion in institutional quality commercial real estate assets across a variety of property types and markets throughout nearly all major markets in the U.S.

Polston holds an M.B.A. in finance from the University of Michigan-Ann Arbor and an M.A. in public policy from the University of Chicago. He is also a graduate of Indiana University-Bloomington where he earned a B.S. in accounting. Polston is a full member of the Urban Land Institute and serves as a member of the Chicago chapter’s Mixed Use Product Council. In addition, Polston is Chair of the NAIOP Investment Management III National Forum and a member of the Mortgage Bankers Association. 

Module 3

Private Debt: Pricing Traditional Mortgage Loans

Time: 4 p.m. - 6 p.m. (Eastern Standard Time)

Date: November 1, 2017

In this session, students will learn to identify and understand the differences between expected returns and stated yields on commercial mortgage loans. We will also discuss how to calculate an investment's yield degradation due to default and how to describe and calculate an expected return on a mortgage. The case study for this module will focus on computing expected return on a mortgage.

Learning Objectives

  • Define the difference between stated yields and expected returns on commercial real estate loans
  • Recognize and calculate an investment’s yield degradation due to default
  • Identify the hazard function and related concepts
  • Describe and calculate an expected return on a mortgage
Facilitator for this Lesson:

Anthony Polston

Founder and Principal

Black Cap Halcyon

Subject Area:

Black Cap Halcyon was founded by Anthony (“Tony”) Polston, an industry veteran who brings over 20 years of commercial real estate experience to the BCH team. Polston has more than 17 years of direct experience investing for institutional balance sheets and nearly three years of public accounting audit experience for real estate related companies, including national REITs such as Simon Property Group and Equity Residential Properties, as well as development and construction firms. Prior to founding Black Cap Halcyon, Polston successfully served in varying capacities of increasing responsibility within the real estate managed investments department of The Northwestern Mutual Life Insurance Company, a Fortune 150 financial services company with over $193 billion in invested assets. In those roles, he was directly involved in arranging, negotiating, closing, leasing, managing and servicing well in excess of $35 billion in institutional quality commercial real estate assets across a variety of property types and markets throughout nearly all major markets in the U.S.

Polston holds an M.B.A. in finance from the University of Michigan-Ann Arbor and an M.A. in public policy from the University of Chicago. He is also a graduate of Indiana University-Bloomington where he earned a B.S. in accounting. Polston is a full member of the Urban Land Institute and serves as a member of the Chicago chapter’s Mixed Use Product Council. In addition, Polston is Chair of the NAIOP Investment Management III National Forum and a member of the Mortgage Bankers Association. 

Module 4

Quadrant 2 – Securitization and CMBS

Time: 5 p.m. - 7 p.m. (Eastern Standard Time)

Date: November 8, 2017

This session will present a comprehensive overview of commercial mortgage markets as well as a discussion of the role and process of securitization. We will explore the structure of Commercial Mortgage-Backed Securities (CMBS), and students will demonstrate their understanding of the materials covered by working through a securitization example.

Learning Objectives

  • Describe the role and process of securitization
  • Illustrate the structure of Commercial Mortgage-Backed Securities (CMBS)
  • Work through a securitization example

Module 5

Private Equity: Private Equity Real Estate

Time: 5 p.m. - 7 p.m. (Eastern Standard Time)

Date: November 15, 2017

During this session, students will take an in-depth look into real estate private equity markets. We will examine the sources of equity financing and discuss the investment vehicles used by private equity. Students will define the terms associated with private equity arrangements and gain an understanding of investment strategies pursued by private equity. We will analyze the fees structures of private equity investment vehicles, discuss how joint ventures work and review a case study detailing recent private equity joint venture deal structures.

Learning Objectives

  • Define Private Equity Real Estate
  • Examine the sources of equity financing
  • Discuss the investment structures utilized by private equity
  • Illustrate the functioning of joint ventures
Facilitator for this Lesson:
Sara Shank

Sara Shank

Managing Director

Beacon Capital Partners

Boston, Massachusetts

Subject Area:

Ms. Shank is based in Boston and oversees portfolio management, including technology initiatives to improve the tenant experience. In this role, she evaluates opportunities to invest in and pilot new technology to add value across Beacon’s portfolio. She spearheads technology adoption across functionalities, and has forged relationships with leading industry providers, including Wiredscore, Hightower, Honest Buildings, ExteNet, Floored and Building Engines.

Module 6

Public Equity: Real Estate Investment Trusts (REITs)

Time: 5 p.m. - 7 p.m. (Eastern Standard Time)

Date: November 29, 2017

This session will provide an overview of Real Estate Investment Trusts (REITs) and discuss the requirements necessary to qualify as a REIT. We will identify the types of REIT structures and discuss the pros and cons of public investment in real estate. A case study will be reviewed that explains will demonstrate how to evaluate a REIT.

Learning Objectives

  • Summarize the requirements necessary to be a REIT
  • Classify the types of REIT structures
  • Explain the pros and cons of REIT real estate investment
  • Identify the REIT valuation methodologies
  • Use the REIT valuation method to analyze REITs
Facilitator for this Lesson:
Jim Clayton

Jim Clayton

Vice President, Research

Cornerstone Real Estate Advisers, LLC

Subject Area:

Jim Clayton is Vice-President of Research at Cornerstone Real Estate Advisers LLC, a Hartford CT based global real estate investment adviser with affiliate and subsidiary offices in the US, UK, Europe and Asia. At Cornerstone, Jim is responsible for monitoring and forecasting real estate and capital market trends and delivering applied research and strategic thought pieces to the firm’s leadership and investor clients. Prior to joining Cornerstone in December 2008, he was the Director of Research at the Pension Real Estate Association (PREA). Before joining PREA in 2006, Jim held faculty positions at the University of Cincinnati and Saint Mary’s University (in Halifax, Nova Scotia). He is currently an Adjunct Professor in the Real Estate Program in the School of Business at the University of Connecticut and also teaches in executive education programs at the Real Property Association of Canada (REALpac). 

Jim is a Fellow of the Real Estate Research Institute (RERI), a Fellow of the Weimer School of Advanced Studies in Real Estate and Land Economics and a past recipient of a Homer-Hoyt Institute post-doctoral fellowship. He is active in a number of industry groups and is a frequent presenter at both industry and academic events in North America and abroad. Jim has an undergraduate degree in Economics from Queen’s University, an MA degree in Economics from the University of Western Ontario and a Ph.D. degree in Real Estate Finance and Urban Economics from the University of British Columbia.

Module 7

Role of Real Estate in an Investment Portfolio

Time: 5 p.m. - 7 p.m. (Eastern Standard Time)

Date: December 6, 2017

In this session, we'll discuss the attributes of real estate that make it attractive as part of a multi-asset investment portfolio and examine historical real estate risk and return performance relative to other asset classes.

Learning Objectives

  • Explain the attributes of real estate that make it attractive as part of a multi-asset investment portfolio
  • Present historical real estate risk and return performance relative to other asset classes

Module 8

Real Estate Investment Management

Time: 5 p.m. - 7 p.m. (Eastern Standard Time)

Add to Calendar 

Date: December 13, 2017

In this final session, we'll start by taking an in-depth look at how investors view real estate as an investment class alongside other investment alternatives. In discussing real estate investment management, we'll explore institutional portfolio management trends and strategies and present an overview of the real estate investment management industry. Students will learn about basic asset-pricing theory and investment performance evaluation and benchmarking techniques. A discussion of the common types of derivatives and the mechanics of a real estate return swap will be covered in this session.

Learning Objectives

  • Describe the role of investment management companies
  • Explain the role of the Capital Asset Pricing Model
  • Summarize investment performance evaluation and benchmarking techniques
  • Explain how to attribute investment performance at the portfolio and property levels
  • Describe what is meant by the term swap
  • Discuss the types and uses of real estate derivatives
  • Quantify risk associated with real estate derivatives
Facilitator for this Lesson:
Dan R. Levitt

Daniel R. Levitt

Senior Vice President Capital Markets

Ryan Companies US, Inc.

Minneapolis, Minn.

Subject Area:

Dan Levitt brings more than 25 years of real estate experience and capital investment expertise to his role as senior vice president of Capital Markets at Ryan Companies US, Inc. His work includes the analysis, origination and structuring of debt, equity and joint ventures as well as directing the funding process from inception to closing. Over the last five years, his capital markets team has managed dispositions, financings, acquisitions and joint ventures valued at more than $2 billion. 

Education Credits

Education Credits

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Real Estate Investment and Capital Markets is approved for the following Education Credit:
16 hours credit toward either the Certificate of Advanced Study in Commercial Real Estate Development or the Certificate of Advanced Study in Real Estate Finance.

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15 AIA/CES Learning Units
16 Professional Development Hours (PDH)
1.6 Continuing Education Units (CEUs)

Learning Objectives

Learning Objectives

  • Explain the purpose, strengths and weaknesses of each of the participants in the four quadrants of real estate capital markets
  • Identify the key elements of underwriting a commercial mortgage
  • Compute the expected return on a commercial mortgage
  • Perform a mortgage note evaluation
  • Create a waterfall distribution for a joint venture deal
  • Determine the Net Asset Value of a REIT
  • Describe Real Estate Investment management strategies

Tuition & Register

Tuition & Register

Payment for a NAIOP online course entitles access for one person only to the course and all materials.

Course Tuition

  • Member: $795
  • Nonmember: $995
  • Developing Leader: $595
  • Student Member: $95
  • Student Nonmember: $145

How to Register

Register online.
Fax: Complete the PDF form and fax to 703-904-7003
Mail: Send check payments to: P.O. Box 333354, Chantilly, VA 20153
Register over the phone/questions: 800-666-6780

Confirmation

All registrations processed online receive an automatic order confirmation and receipt. If you register via fax, mail, or phone, a receipt must be requested by contacting education@naiop.org.

Login instructions to access the online course are sent under separate cover from customercare@gototraining.com, approximately 1 week before the first class. If it is less than one week until the start of the course and you have not received the login instructions, please check your spam folder. If the login email is still not there, please contact the NAIOP Education Department at education@naiop.org.

Cancellation Policy

All cancellations must be in writing. Cancellations of registrants received after September 28, 2017, will be charged a fee of $100 per attendee. Cancellations received after October 11, 2017 will forfeit the registration fee. No refunds will be made for no-shows. Substitutions are permitted until October 18, 2017. Nonmembers substituting for members will pay the difference in fees. Cancellation/substitution notices should be sent to education@naiop.org or faxed to 703-674-1471.

FAQs

FAQs

What does tuition cover?

Payment for a NAIOP online course entitles access for one person only to the course and all materials.

Is there an online instructor?

Yes, there is a live instructor presenting each class. Students are able and encouraged to engage and interact with the instructor and each other.

How much out-of-class work is required for each course?

Courses offered online require no more than one hour per week of additional work outside of the scheduled class times.

What if I miss a scheduled class?

If a student misses a class, all materials and a recording of each class is posted in the material library for the student to review before the next class. A student must attend a minimum of 75 percent of the classes to receive credit.

Do I have to take an exam?

Course exams are not required unless you are enrolled as a candidate for the Certificate of Advanced Study in Commercial Real Estate or the Certificate of Advanced Study in Real Estate Finance.

What records are kept of my coursework?

The Center maintains records of all the coursework you complete, as well as optional exam scores, in a confidential transcript. Transcripts are available to candidates upon request. Please contact education@naiop.org.

What are the computer requirements?

The interactive sessions will be accessed via GoToWebinar.com.

Please use the list below to determine if your computer meets the minimum requirements recommended to participate in the online courses:

To attend on a PC, the following is required:

  • Internet Explorer® 6.0 or newer, Mozilla® Firefox® 2.0 or newer (JavaScript™ and Java™ enabled)
  • Windows® 2000, XP, 2003 Server or Vista
  • Cable modem, DSL or better Internet connection
  • Minimum of Pentium® class 1GHz CPU with 512 MB of RAM (Recommended) (2 GB of RAM for Windows® Vista)

To attend on a Mac®, the following is required:

  • Mac OS X 10.4 (Tiger®) or newer
  • Safari 3.0 or newer, Firefox 2.0 or newer (JavaScript™ and Java™ enabled)
  • Cable modem, DSL or better Internet connection
  • Power PC G4/G5 or Intel processor (521 MB of RAM or better recommended)

Participants wishing to connect to audio using VoIP will need a fast Internet connection, a microphone and speakers (a USB headset is recommended).

Contact Barb Parnarouskis at barbp@naiop.org for more information.