Advanced Development Practices

Advanced Development Practices

Advanced Development Practices is a sequel to the Essentials of the Development Process and builds on the concept of a Development Matrix where the seven stages of Real Estate Development are combined with the eight Tasks required in each stage to produce a 56-cell matrix.

This survey course focuses on the eight Tasks in each stage of the real estate development process. Each Task is really a category of tasks that must be completed in order to create value throughout the development process. Each Stage of Development begins with the Acquisition Task and ends with the Disposition Task. In between, the developer must address and complete the following Tasks: Finance, Market Studies and Marketing Strategy, Environmental, Approvals and Permits, Improvements, and Transportation and Accessibility. In reality these Tasks are completed in various orders and usually they are done simultaneously. The order of the Tasks presented in this course is arbitrary, and most tasks interact with each other to some extent and the completion of individual task is dependent on the completion of other Tasks. This course broadly describes the Tasks and the sub-tasks from a developer’s point of view. Students are not expected to be experts in all of these tasks, but they are expected to understand and appreciate what needs to happen for a successful development, i.e. one that creates value in excess of the costs needed to create value.

Lesson Plans

Module 1

Acquisitions

Time: noon - 2 p.m. (Eastern Standard Time)

Date: August 9, 2017

This session begins with a brief review of the Development Matrix and then focuses on the five sub-tasks in the Acquisition Task category.  A review of various acquisitions strategies is presented using two class exercises.

Learning Objectives and Outcomes

  • Explain the real estate development process, 7 stages
  • Articulate the five sub-tasks of acquisition
  • Differentiate among feasibility, underwriting, and due diligence
  • Define various acquisition strategies
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

Financing

Time: noon - 2 p.m. (Eastern Standard Time)

Date: August 16, 2017

This module addresses the need for accurate financial projections and record keeping as well as the accumulation of debt and equity capital for the real estate development. The special skills address the sources and uses of funds in a development, and estimating construction loans.

Learning Objectives and Outcomes

  • Articulate the 3 subtasks of financing.
  • Recognize importance of accurate record-keeping and timely reports.
  • Define various capital requirements needed in each stage of development.
  • Estimate development budgets
  • Estimate sources and uses of funds
Facilitator for this Lesson:
Barbara Schaefer McDuffie

Barbara Schaefer McDuffie

Managing Director, Business Development

Baker Tilly | NAIOP Northern Virginia

Subject Area:

Barbara Schaefer McDuffie is the managing director of business development for Baker Tilly in the Northeast Region providing consulting and advisory services to their clients' real estate portfolios. She is a past chairman of NAIOP Northern Virginia, a three year board member of NAIOP Corporate and currently serves as chair of the Trustees for NAIOP's Governor's Research Foundation.

Module 3

Market Studies and Marketing Strategies

Time: noon - 2 p.m. (Eastern Standard Time)

Date: August 23, 2017

This session discusses the need for accurate and thoughtful market forecasts and projections and then emphasizes the need for a coherent marketing strategy to capture the market opportunities. The special skills outlines estimation techniques for projected rental rates and absorption.

Learning Objectives and Outcomes

  • Estimate and analyze future market conditions
  • Create a matrix for market condition analysis
  • Evaluate and determine marketing strategies for each stage of development
  • Estimate market absorption rates and rental rates
Facilitator for this Lesson:
Jay Padgett

Jay Padgett

Regional Director of Business Development

McShane Construction Company

Subject Area:

Mr. Padgett joined McShane Construction in 2015 to oversee the acquisition, planning, pre-construction and corporate account management of assignments within the industrial, distribution, warehouse and manufacturing sectors. As an experienced professional, he offers seasoned expertise in examining the dynamics of the industrial market and uncovering opportunities for new construction throughout the Southeast Region. Mr. Padgett works to develop and maintain relationships within the commercial real estate industry to enhance the firm’s ability to be considered for new opportunities and continuing its expansion within the region. His professional successes in meeting the needs of corporate end-users, establishing confidence on behalf of clients and fostering relationships with the brokerage community, architects, consultants and other entities involved in the acquisition of new construction, allows Mr. Padgett to advance McShane’s project portfolio.

Module 4

Environmental Tasks

Time: noon - 2 p.m. (Eastern Standard Time)

Date: August 30, 2017

This module discusses environmental challenges in terms of environmental studies; sustainability certifications; surface, sub-surface and atmospheric characteristics of the site; and possible historical and cultural restrictions on a site. Evaluating potential environmental concerns is demonstrated through two class exercises.

Learning Objectives and Outcomes

  • Differentiate between Phase I, II and III environmental studies
  • Understand the role of sustainability certifications in the development process
  • Provide examples of environmental conditions related to surface, sub-surface and atmospheric characteristics of the property
  • Include historic and cultural factors when analyzing a properties environment and understand the possible restrictions on use due to those facts.
Facilitator for this Lesson:
Barry Trilling

Barry Trilling

Of Counsel

Hickey Smith, LLP

New York, New York

Subject Area: Essentials of the Development Process and Site Feasibility

Barry J. Trilling serves as Of Counsel to the national law firm Hickey Smith, LLP, where he leads the firm’s Environmental Law practice. Clients call on him to assist on a wide variety of matters with regard to the environment and "green" business and real estate issues. These include business and real estate transactions, due diligence investigations, site remediation, brownfields development, wetlands, insurance transactions and claims, regulatory compliance counseling, mold and asbestos issues, governmental relations, legislation, rule making, National Environmental Policy Act (NEPA) matters, and both administrative and judicial litigation.

Module 5

Approvals and Permits

Time: noon - 2 p.m. (Eastern Standard Time)

Date: September 6, 2017

This module emphasizes the need for developers to obtain permits and approvals that are specific to the stage of development that is being undertaken. The special skills focus on deciphering local approval codes and timelines. Students are also expected to provide examples of approvals and permits they have encountered.

Learning Objectives and Outcomes

  • Understand the natural tension that exists between approvals, permits, and various agencies.
  • Understand that the approval process is complex, with numerous agents and agencies.
  • Identify communication and negotiation techniques of the approvals/permits process.
  • List and define the various types of approvals and permits needed at the federal, regional, state, local, and private level.
Facilitator for this Lesson:
William Klein

William L. Klein

President

Kay Realty Services LLC

Ocean, New Jersey

Subject Area: Essentials of the Development Process, Advanced Development Practices, Leasing, Marketing and Negotiations, Site Feasibility and Financial Analysis of Development Projects

William Klein has been a recognized leader in all facets of real estate investment for more than 40 years. He has participated in numerous transactions, (many as a managing principal), in all asset classes in the industry. Since 1994, Klein has been the CEO of Kay Realty Services., one of the New Jersey shore's innovative real estate investment firms, which he founded on a theme of "value-added" strategies. He acts as managing member of all Kay Realty Holdings assets. He is also CEO of Smitty's Super Foodtown Stores, a 2 store supermarket which anchors two of his shopping centers.

Prior to KAY REALTY, Klein held key senior management positions in several national and regional development firms such as K Hovnanian and Dyson Kissner Moran where he created over three million sf of class A properties. Earlier, he served as chief appraiser of Central Savings Bank of New York and a senior executive and leader of Joint Ventures in the Home Life Insurance Company's mortgage investment division.

Klein holds a bachelors degree in economics from Upsala College and has completed professional graduate courses in real estate at Harvard University Graduate School of Design, Rutgers University and New York University. His appraisal training was provided by the American appraisal institute (MAI). He is a licensed broker in the state of New Jersey.

Module 6

Improvements

Time: noon - 2 p.m. (Eastern Standard Time)

Date: September 13, 2017

This module emphasizes that all improvements must be planned, designed, engineered, constructed, maintained, and renovated or replaced. Each stage of development requires improvements to be addressed in a different way. The special skills section compares design-bid-build and design/build models, and promotes student discussion with two class exercises.

Learning Objectives and Outcomes

  • Define “Improvements” in the broadest sense
  • Articulate the sub-tasks of physical improvements
    • Plan and Design
    • Engineer
    • Construct
    • Maintain
  • Differentiate between Design-Bid-Build and Design-Build models
Facilitator for this Lesson:
Scott Marcus

Scott Marcus

Principal

RSM Development & Management

Bloomfield Hills, Mich.

Subject Area: Essentials of the Development Process, Advanced Development Practices, Leasing Marketing Negotiation and Financial Analysis of Development Projects

As a principal in the real estate development firm of RSM Development & Management, L.L.C. in Bloomfield Hills, Mich., Mr. Marcus' primary responsibilities include the acquisition, development and first party property management of office, medical office and industrial properties in the metropolitan Detroit area. Since forming the firm ten years ago, RSM has acquired and/or developed a portfolio totaling over one million square feet with a market value of over $100M.


Mr. Marcus is a graduate of the University of Michigan (B.G.S.) and Wayne State University Law School (J.D.) and is a licensed Michigan real estate broker. He is president of the Michigan NAIOP Chapter Board and on the nonprofit board of directors for Gateway Counseling (Madison Heights, Mich.). Additionally, Mr. Marcus is a member of the Office Development I NAIOP Forum and received the NAIOP Developing Leaders Award in 2007.

Module 7

Transportation and Accessibility

Time: noon - 2 p.m. (Eastern Standard Time)

Add to Calendar 

Date: September 20, 2017

This module discusses location, location, and location issues in terms of off-site transportation systems and on-site accessibility requirements. The special skills section discusses how a developer gets paid including a simple promotion strategy.

Learning Objectives and Outcomes

  • Differentiate between transportation and accessibility improvements
  • Explain the challenges of integrating new transportation systems into existing systems
  • List and define accessibility issues on-site and inside buildings
  • Understand the importance of life-safety networks and systems.
  • Articulate how a developer gets paid using various payment and financing structures
Facilitator for this Lesson:
William Klein

William L. Klein

President

Kay Realty Services LLC

Ocean, New Jersey

Subject Area: Essentials of the Development Process, Advanced Development Practices, Leasing, Marketing and Negotiations, Site Feasibility and Financial Analysis of Development Projects

William Klein has been a recognized leader in all facets of real estate investment for more than 40 years. He has participated in numerous transactions, (many as a managing principal), in all asset classes in the industry. Since 1994, Klein has been the CEO of Kay Realty Services., one of the New Jersey shore's innovative real estate investment firms, which he founded on a theme of "value-added" strategies. He acts as managing member of all Kay Realty Holdings assets. He is also CEO of Smitty's Super Foodtown Stores, a 2 store supermarket which anchors two of his shopping centers.

Prior to KAY REALTY, Klein held key senior management positions in several national and regional development firms such as K Hovnanian and Dyson Kissner Moran where he created over three million sf of class A properties. Earlier, he served as chief appraiser of Central Savings Bank of New York and a senior executive and leader of Joint Ventures in the Home Life Insurance Company's mortgage investment division.

Klein holds a bachelors degree in economics from Upsala College and has completed professional graduate courses in real estate at Harvard University Graduate School of Design, Rutgers University and New York University. His appraisal training was provided by the American appraisal institute (MAI). He is a licensed broker in the state of New Jersey.

Module 8

Sales and Disposition Tasks

Time: noon - 2 p.m. (Eastern Standard Time)

Add to Calendar 

Date: September 27, 2017

This module discusses the disposition tasks that include the seller’s due diligence, sales contracts, pre- and post-closing conditions, and seller-financing opportunities. Various sales contracts are presented, with a discussion of strategies using two class exercises.

Learning Objectives and Outcomes

  • Define seller’s due diligence
  • Explain a disposition strategy
  • List important features of a sales contract
  • Analyze the pros and cons of seller financing
  • Explain post-closing conditions and concerns
Facilitator for this Lesson:
John Saunders

John Saunders

Senior Vice President

United Properties

Subject Area:

John Saunders is a Senior Vice President at United Properties in Minneapolis. United Properties is the commercial real estate investment arm of the Pohlad family, owners of numerous businesses, including the Minnesota Twins baseball team.

John has over 35 years of commercial real estate and legal experience and has been with United Properties for 15 years. For United Properties, he has lead numerous acquisitions of Office and Industrial Projects and has led all dispositions for United Properties in that time. Prior to United, John spent 5 years in an acquisition role for another commercial real estate company, and prior to that he practiced real estate, business and bankruptcy law for a large Minneapolis law firm.

John is originally from Minneapolis, got his B.A. from Tufts University in Boston and his J.D. from the University of Minnesota Law School.

Course Objectives

Course Objectives

  • Define and explain the eight sets of tasks that are required in each stage of development.
  • Define and explain at least two sub-tasks in each major task set.
  • Understand why each task must be address even if the developer decides to undertake multiple stages of development.

Education Credits

Education Credits

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Advanced Development Practices is approved for the following Education Credit:
16 hours credit toward the Certificate of Advanced Study in Commercial Real Estate Development.

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

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 July 19, 2017, will be charged a fee of $100 per attendee. Cancellations received after August 1, 2017 will forfeit the registration fee. No refunds will be made for no-shows. Substitutions are permitted until August 8, 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.