M.S. in REAL ESTATE. CORE: TIER I (12 Credits) Real Estate Finance. Principles of Real Estate Accounting and Taxation

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M.S. in REAL ESTATE

The 42-credit M.S. in Real Estate program integrates theory, real-world application, and practice-based immersion in all phases of real estate—from initiating and analyzing to negotiating, financing, and closing the transaction. Courses examine in detail the breadth and depth of the various real estate disciplines, including development, finance, investment, valuation, project

management, law, market analysis, digital imaging, and economics. Topics range from analyzing and financing to managing and owning.

The M.S. in Real Estate curriculum provides students with both the fundamental knowledge and advanced analytical skills required for success across the spectrum of the real estate industry. NYU Schack faculty, composed of leading industry practitioners, are empowered to address current concerns and issues in their courses, keeping students abreast of today’s industry developments. Students receive a solid theoretical foundation with immediate practical application.

Degree candidates become part of a global network of more than 2,000 alumni who connect with students through a mentoring program, introduce them to professional development opportunities, and provide scholarship support. Throughout their course of study, students are motivated to take a conscientious approach to their profession as they explore how their expertise can best be used to meet the challenges and developing needs of today's society.

CORE: TIER I

(12 Credits)

Principles of Real Estate Accounting and Taxation

Y64.1005 Credit: Real Estate This course provides students with an understanding of the uses of accounting in the real estate and construction industries. It reviews concepts, principles, rules, regulations, and reporting requirements and the accounting and tax procedures needed to understand financial statements related to management, operations and investments, including income tax analysis. As such it provides a first introduction to the Time Value of Money concept and to Appraisal.

Real Estate Finance

Y64.1035 Credit: Real Estate

This course covers the debt and equity financing of real estate with particular emphasis on income-producing property. It identifies and explains the legal instruments involved in mortgage underwriting and lending; the role of government in the financing of commercial and residential real estate; sources of both private and public debt and equity capital, and the financing of real estate construction and development activity. The course analyzes income property cash flows, the valuation of property, the

measurement of investment returns and the impact of debt leverage and income taxes.

Real Estate Economics and Market Analysis

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Legal Principles and Practices

This course teaches students the principles of real property law, as well as when and how to utilize the legal system. It reviews the contracts and issues that arise in the course of development, ownership and operations, including ethical considerations, and examines the roles, rights, obligations and liabilities of the major parties involved in transactions.

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CORE: TIER III

(3 Credits)

Real Estate Capital Markets

This course identifies the sources of debt and equity capital for commercial real estate, and the vehicles by which this capital is delivered to the property markets. In covering these topics, the course analyzes the 'four quadrants' of capital: private debt, public debt, private equity and public equity, including class discussions and exercises in the structure and pricing of CMBS and CRE CDO, and the performance and valuation metrics of equity REITs.

CONCENTRATIONS

Digital Design Applications for Real Estate

Concentration

Students are required to take all 4 courses in discreet and consecutive semesters as designated and approved by a faculty advisor.

3D Production I - Tool Sets

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Finance and Investment Concentration

Students choosing this concentration must take the 3 courses below plus two electives.

Real Estate Finance and Investment Analysis

Y64.2300 Credit: Real Estate

Students in this course examine various analytical techniques and structure appropriate financing requirements for all major types of income‐producing real estate investments and developments. Students learn traditional and innovative methods of finance such as joint ventures, private placements, and mezzanine structures as well as the derivation of rates of return, cash flow analysis and modeling, estimates of residual and present intrinsic value, commercial lease and expense analysis and inflation sensitivity analysis.

Risk and Portfolio Management

This course examines the methods employed in both strategic and tactical value enhancement decision‐making for real estate. Students learn how to balance the potential for positive financial reward with concurrent exposure to risk and uncertainty in both single assets and portfolios. Risk analysis begins with a review of the credit worthiness of tenants and buyers and moves up the scale to risk analysis of portfolios of assets and modern portfolio theory. The advantages and disadvantages of small versus large‐scale enterprises; single versus multiple property type portfolios; and local, regional and national market diversification strategies are evaluated. The interaction of volatility, risk and diversification is examined.

Applied Project in Finance and Investment

The capstone course in each concentration integrates and applies all of the prior coursework taken, engaging the student in the production of a professional quality project or proposal. Capstone projects are the principal assessment device to evaluate each student's understanding of the discipline. In each case actual market data and industry resources are researched and employed in the creation of an investment related product specific to each concentration. The capstone course in the Finance and Investment concentration provides a synthesis of the various disciplines, processes and activities which comprise the investment in real estate assets. Each student assumes the role of one of the players in the investment process from the sale/acquisition to the financing of debt/equity. In addition, the course offers a student an opportunity to experience "real world" simulated presentations to both Investment and Loan Committees. Throughout this course, the student utilizes the principles, theories, information and skills that have been introduced during the course of their studies at the NYU Schack Institute of Real Estate.

Strategic Real Estate Management Concentration

Students choosing this concentration must take the 3 courses below plus two electives. Strategic Real Estate Management

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opportunities and techniques, designing a tenant mix, creating and implementing repositioning strategies, planning capital expenditures, budget and management reporting, cost control techniques, management and operations strategies.

Commercial Lease Analysis

This course provides an extensive and detailed overview and analysis of the commercial leasing process with a special emphasis on the theory and types of clauses used in a contemporary leasing transaction. Leases are analyzed in context with other commercial contracts. The course analyzes each of the major lease provisions and then examines leases as financial instruments. Students use financial devices as a tool for understanding the economics of the lease and then participate in a negotiation workshop at the course's end.

(Capstone Required) Applied Project in Strategic Real Estate Management

The capstone course in each concentration integrates and applies all of the prior coursework taken, engaging the student in the production of a professional quality project or proposal. Capstone projects are the principal assessment device to evaluate each student's understanding of the discipline. In each case actual market data and industry resources are researched and employed in the creation of an investment related product specific to each concentration. The capstone course in the Strategic Real Estate Management concentration is designed to assess a student's knowledge of the concepts, technical skills, and processes involved in preparing, analyzing, and completing a strategic real estate management plan. Each student is solely responsible for selecting a real estate asset of their choosing and developing a comprehensive plan that encompasses the following: a clear statement of the owner's objectives for the asset; a complete verbal description of the asset; a financial analysis comparing the asset "as‐is" to various creatively thought‐out alternatives; a regional and neighborhood analysis providing a picture of the immediate environment surrounding the asset; a complete competitive rent analysis; and alternative courses of action. The strategic real estate plan developed by the student for this course is one that outlines the strategic options which meet the owner's objectives and increases the value of the asset. In addition, the course offers a student an opportunity to review the principles, theories, information, and skills that the student has been introduced to during the course of their studies at the NYU Schack Institute of Real Estate.

ELECTIVES (6 credits)

Students are required to select two courses in any combination of the following: (a) from the list below, (b) from a course(s) within another concentration in this program or (c) with permission from the Program Director, from a course(s) from the M.S. in Construction Management degree program.

Affordable Housing Development

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Analyzing REIT Securities

The class is designed to familiarlize students with the quantitative and qualitative aspects of REIT stocks and to provide an experience in presenting their results in writing and in a public forum. Students learn how to find and understand pertinent data, build an earnings model, assess various risks and potential rewards hidden in financial statements and employ various valuation methods used in determining the relative attractiveness of REIT securites.

Federal Taxation for Real Estate Investment

The purpose of this course is to provide future real estate professionals with an understanding of the tax concepts that affect real estate investment. The course will focus on providing participants with an understanding in three basic areas: capital events, operations, and investor issues. Students gain an understanding of: the tax concepts and consequences involved in the

acquisition, operation, and disposition of real estate; the various forms of ownership; the individuals and entities that invest in real estate; REIT asset and income tests.

Managing Building Systems and Operations

This course examines the mechanical and electrical systems in buildings from a property management standpoint and presents issues in design, construction, operations and maintenance. Topics covered include heating, ventilating and air conditioning, indoor air quality, domestic hot and cold water, storm and sanitary drainage, fire protection, electric power and lighting, signaling, elevators and escalators. The technology will be placed within the framework of property management and will include contractor, consultant and tenant relationships, inspections and service, capital planning, metrics and the regulatory backdrop.

Acquisition Procedures and Analysis Using ARGUS Software (tm)

This advanced elective course will provide students with an overview of the acquisition process from asset evaluation and underwriting through due diligence, purchase and sale agreements, closing and asset integration. The primary focus of this class will be property valuation using ARGUS Software (tm) and examination of underwriting scenarios as well as in‐depth audits of models. Other topics will include the creation of concise management reports and an examination of the criteria used by senior executives in pursuing a property acquisition. The student is expected to have some experience with ARGUS Software(tm), financial calculator and Excel. Prerequisites:

 Completion of all Tier I and II courses, with the exception of Negotiation and Dispute Resolution Y64.1080

 Finance and Investment Analysis Y64.2300

 Familiarity with ARGUS Software

Advanced Seminar in Real Estate Finance

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Analytical Techniques in Real Estate Investment Analysis

Using the principles, concepts, models and tools studied in Tiers I and II of the program, the student will learn how to estimate the Intrinsic Value of income‐producing real estate. This course includes a review of commonly used valuation techniques and an in‐depth study of valuation analytical techniques utilizing discounted cash flow analysis; the derivation of Rates of Return; cash flow modeling; estimates of residual values through replacement cost analysis, optimum holding periods; space absorption, lease analysis, inflation measurement and sensitivity analysis. There will be extensive reading and computer use. The student is expected to be proficient in the use of a financial calculator and Excel. Prerequisites: Y64.2300/Real Estate Finance and Investment Analysis

Derivatives and Real Estate Investing

This course will explore the use of derivatives by real estate investors. It will be divided into two sections. The first will teach students how to use derivatives ‐ such as options, futures, and swaps ‐ to transform various types of risk. Emphasis will be placed on how such securities might change the expected future cash flows from an underlying real estate investment. The second part will focus on how investors can use derivatives based on real estate indices to gain exposure to various real estate investments and markets. The class will explore the strength and weaknesses of various indices (CMBX, NACREIF, etc.) and the derivative securities based on those indices. Real Estate Investing in a Distressed Environment

This course introduces the framework of Commercial Real Estate (CRE) investment through a lens of distressed situations. Elements of bankruptcy procedure and valuation will be discussed, with a specific concentration on those issues most pertinent to CRE workout situations. Common characteristics of and factors leading to distress will also be addressed. Students will be exposed to cases and experts that bring forth legal, valuation, strategic, and other key considerations typical in CRE workouts ‐ with maximum recovery from a lender, borrower, and venture‐ partner perspective. Prerequisite knowledge of real estate finance, valuation, law, and negotiation are strongly encouraged.

Global Real Estate Markets and Investments

This course will be a dynamic five-day intensive program of study focusing on the global real estate markets of Europe, Asia, the Middle East and the Americas. The students will examine transnational real estate transactions and investments and the firms who operate in this environment with a special focus on four principal areas of concern: 1) the institutional framework at the property and sovereign level, 2) political considerations, 3) the currency markets, and 4) the capital markets. Specific topics covered include globalization, global real estate trends, risk and portfolio management, country risk, development and ownership rights, taxes, currency risk, hedging, and cultural considerations.

Seminar in Community Development

This seminar will provide an intense, real‐world, multi‐disciplinary real estate project experience which will be structured as a competition between several teams. Students may apply individually or as a core group of one of the teams, which will consist of 5‐7 students each. Real estate development project opportunities will be selected that involve significant public investments and/or important planning, design or economic development objectives. Project proposals must achieve the public policy objectives involved while providing feasible and attractive returns to the private developer. A panel of outside real estate professionals will serve as a jury to judge the project proposals and a winner will be recognized at an awards event.

Advanced Real Estate Development and Investment Practices

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This course will provide an advanced overview of real estate development and investment whether that activity occurs here in the U.S. or overseas. The course will highlight differences and similarities between development and investment activities in a variety of locations and of various property types. Students will analyze the differences in methodology and consider how they could be advantageously applied in the U.S. Specific topics can include market perceptions, financing methods, construction methods, sustainable design concepts, investment opportunities or global capital flows. Students will make a trip to a selected foreign university or international investment and development conference for about one week during the course to attend lectures or presentations, tour or observe specific development /investment projects and meet with local developers, banks, investors, etc. A comprehensive paper and presentation on specific topics will be required as a term project. Prerequisites: Completion of all Tier I and II courses, with the exception of Negotiation and Dispute Resolution Y64.1080, as well as Corporate Finance Y64.1070.

Entrepreneurship and Innovation in Real Estate and Development

This course provides an in‐depth overview of the numerous facets of new venture creation, expansion, and innovation in real estate development. Specifically, this course analyzes the unique financial, legal, political, and organizational issues associated with entrepreneurial real estate development. The emphasis is on bridging theory and practice to learn how to identify new opportunities, assess and mitigate risk, and transform ideas into action. The course examines project‐level joint venture structures, sources of start‐up and project capital, advanced financial analysis techniques, contract issues, and organizational structure in the context of understanding the entire entrepreneurial development process. Particular attention is paid to the role of sustainable development practices and triple‐bottom‐line feasibility analysis.

Deconstructing the Appraisal