NCREIF and the MIT Center for Real Estate present a Professional Certificate Program in Institutional Real Estate Investment

Transcription

1 NCREIF and the MIT Center for Real Estate present a Professional Certificate Program in Institutional Real Estate Investment

2 About the Program The collaboration between the MIT Center for Real Estate and the National Council of Real Estate (NCREIF) opens an exciting opportunity for professionals pursuing a career in institutional real estate investment. This collaboration between MIT and NCREIF is a first of its kind between two of the top thought leading organizations in the industry. NCREIF member firms include the leading investment management firms with over $500 billion of capital invested in apartments, office, retail, industrial and other types of large scale commercial property. This joint educational program has been designed specifically to cover the concepts and techniques needed to be successful in a career related to institutional real estate investment, including investments managed directly, or by investment management firms, on behalf of pension funds, endowments and high net worth individuals. Topics range from fundamental theories to cutting edge tools and methodologies of industry practice. The curriculum combines the research and expertise of MIT professors and instructors with the practical knowledge and experience of industry leaders from among NCREIF s member organizations. Our line up of faculty are globally renowned thought leaders, practitioners, and sought after consultants in these topics and great instructors. The program blends the vast experience of NCREIF with the technical prowess of faculty from MIT whose academic careers have also involved working with institutional real estate investors. Students will be exposed to case studies, hands on analysis of investments, and the use of NCREIF s, and other databases, to evaluate markets and construct indices. Students will also find this an excellent networking opportunity, and the intellectually vibrant MIT and Cambridge environment are perfect for summer learning.

3 NCREIF and MIT Center for Real Estate Professional Certificate Program Overview Participants must take all six courses to complete the Certificate Program Courses must be completed within five (5) years to earn Certificate Except for the Pre requisite course, Intro to Institutional Real Estate (aka Nuts and Bolts), courses may be taken in any order Previous grads of the Nuts and Bolts course will be given credit for and will be exempt from taking the Intro to Institutional Real Estate course (5 year window applies to remaining five courses) All courses are 2 full days, except Space Market Analysis (1 day), and are generally from 9:00 am to 5:00 pm The Program will generally be offered during a two three week period in mid June, on MIT s campus, Cambridge, MA NOTE! Two of the courses are cross listed between both the NCREIF/MITCRE Professional Certificate in Institutional Real Estate Investment and the MIT s Professional Certificate in Real Estate Finance and Development. The courses are Space Market Analysis and is called Evaluating Real Estate Markets in MIT s Professional Certificate in Real Estate Finance and Development program and the Advanced Institutional Real Estate Investment which is called Real Estate Finance: Advanced in MIT s Professional Certificate in Real Estate Finance and Development program. If you have taken one or both of these courses from MIT within the past two years you will receive credit toward the NCREIF/MITCRE Professional Certificate in Institutional Real Estate Investment.

4 June 8 9 Introduction to Institutional Real Estate June 8 9 Instructors: NCREIF Members and Industry Leaders Co Chaired by Jeff Fisher, Ph.D., NCREIF and Doug Herzbrun, CBRE Global Investors Course Topics Covered Gateway course. Prerequisite for taking all other courses. Intro to field & terminology. Introduction to Institutional Real Estate: History and Industry Structure Bottom Up Analysis The Key Players in the Institutional Real Estate Market Portfolio Theory Applied to Institutional Real Estate Top Down Asset Allocation Investment Analysis and Valuation of Institutional Real Estate Performance Measurement, Attribution and Risk Analysis Evaluating Investment Structures: Financing, Joint Ventures and Partnerships The Three S s Private Placement Memo Case Study

5 June 10 Space Market Analysis June 10 Instructor: MIT Professor Bill Wheaton Required Course for Certification. Note: This is a cross listed course between this certificate program and the MIT Professional Certificate in Real Estate Finance and Development. Course Description Real Estate rents, vacancy and prices are all determined by the operation of selected economic factors/markets. This course distinguishes between real estate space (occupancy) and real estate investment (capital) markets; will evaluate impacts of global, macro and local market forces on both. Current issues/trends covered include: recent and continuing housing crisis ; the globalization of real estate capital and its impact on pricing; technology and the changing spatial structure of cities (what this means for location decisions); and the evolution and increasing scale of real estate development.

6 June Advanced Institutional Real Estate Investment June Instructors: MIT Professor David Geltner and MIT Senior Lecturer Walter Torous with invited guest speakers Required Course for Certification. Note: This is a cross listed course between this certificate program and the MIT Professional Certificate in Real Estate Finance and Development. Course Description Advanced and cutting edge concepts, tools, and knowledge relevant to macro level real estate investment (portfolios of many properties, distinguished from the micro level subject of Institutional Valuation & Investment Analysis), presented from the perspective of U.S. institutional investors. Topics Covered: portfolio theory; capital asset equilibrium pricing theory applied to real estate; strategic and tactical investment policy; price indexing; and derivatives.

7 June Institutional Valuation and Investment Analysis June Instructors: Jeff Fisher, Ph.D., NCREIF and MIT Professor David Geltner Required Course for Certification Course Description THIS COURSE WILL BE OFFERED IN 2016! Introduction to basic principles, tools, and facts for evaluating micro level commercial property assets (individual properties) from a U.S. institutional investment perspective. Topics Covered: basic DCF; NPV; CRE pro formas; concepts of market value/investment value; urban/financial economics applied to CRE valuation and investment. Introduction to lease bylease software.

8 June Benchmarking, Attribution and Risk Analysis June Instructors: Joe D Alessandro, NCREIF and Jeff Fisher, Ph.D., NCREIF Required Course for Certification Course Description THIS COURSE WILL BE OFFERED IN 2016! This course first reviews the different return calculations used to evaluate the performance of properties and funds. Next the course explores the characteristics of an ideal property and fund level benchmark and what benchmarks are most appropriate for different investment strategies. This leads to examination of various attribution models used to evaluate a managers over or under performance relative to the benchmark. Attribution analysis is designed to explain the difference between the manager s performances versus the performance of the benchmark. This difference may be due to how the fund allocated its investments by property type and geographic area or how well the fund manager selected individual properties. The impact of various fee structures, leverage and joint ventures on the fund return is also examined. Finally the course discusses how to evaluate what risks the manager took that impacted the performance of the properties and fund. We will discuss various ways of defining risk and applying risk measures such as Sharpe ratios, tracking error and other metrics to determine how much of a fund s return was due to taking on risk versus alpha earned by the manager.

9 June Institutional Capital Markets & Investment Vehicles June Instructors: W. T. McGrath (MIT) and J. Dunn, J.D. (Ropes & Gray) Required Course for Certification Course Description THIS COURSE WILL BE OFFERED IN 2016! Examines the investment structures used by domestic and foreign institutions to invest in U.S. commercial real estate. Structures address fundamental investment objectives: tax efficiency, governance, liquidity and limited liability. Advantages/disadvantages of these multiple investment vehicles will be discussed. Particular attention given to the JV structure used by investment sponsors and institutional investors to develop new assets, and introduces a new capital markets based framework to evaluate the structure of proposed cash distributions between the parties.

10 Registration and Travel Information Course Registration Course Fee for 2 day Courses: (Includes breakfast and lunch each day): Plan Sponsors $1,000 Other Participants $2,400 Course Fee for 1 day Courses: (Includes breakfast and lunch): Plan Sponsors $500 Other Participants $1,200 You may register for courses by clicking here. Travel Information The course will take place at the MIT Campus in Cambridge, MA. Specific details will be sent to you upon registration. MIT has secured discounted rates at several nearby hotels. Please click here to access a list of hotel options. Contact Information Please contact Stacy Gaskins at NCREIF with any questions: (312) or SGaskins@NCREIF.org