Falcon Invoice Discounting: Unlock Your Business Potential
Fundamental Skills for Real Estate Development Professionals I – Financial Analysis (Mark Eppli) - ULI Fall Meeting 102611
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2. Real Estate Development Workshops Fundamental Skills for Real Estate Development Professionals I Financial Analysis 9:00-10:15 Mark J. Eppli Marquette University Center for Real Estate Site Selection and Due Diligence 10:45-12:00 Charles A. Long President, Charles A. Long Properties Fundamental Skills for Real Estate Development Professionals II Structuring the Deal to be Profitable 1:00-2:15 Tennyson Williams Founder/President Tennyson Williams Associates Project Entitlement 2:45-4:00 David Farmer Principal Capital Four Advisors
18. Property Cap Rates and Premium over U.S. Treasury Securities Sources: St. Louis Federal Reserve, Mortgage Bankers Association, and Marquette University.
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21. So Let’s Look at Total Investment Return Total Investment Return
34. Investor Target Returns: Each use is different *Unleveraged Internal Rate of Return. Higher leverage increases return on equity. Anchor Tenant Timing of sale or lease Target IRR* Sector Occasional Lease up after construction 7-12% Industrial Desirable Pre-leasing usually req’d 7-12% Retail Desirable Pre-leasing desirable 7-12% Office None Lease-up after construction 7.5-11% Multi-family None Pre-sales for each phase 8-20% For-sale residential Depends on phase With phasing 20-30% Land Development
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36. What is Our Incremental Cost of Debt? Incremental Cost of Funds Assumptions Loan Amortization Term 30 30 30 Prepayment Year 10 10 10 Property Value $30,000 $30,000 $30,000 LTVR 70.00% 75.00% 80.00% Loan Fees 0.50% 0.75% 1.25% Incremental Closing Costs 0 100 250 UST 10 2.25% 2.25% 2.25% Spread 1.80% 2.20% 2.60% Mortgage Interest Rate 4.05% 4.45% 4.85% Loan and Borrower Cost Information Loan Amount 21,000 22,500 24,000 Points and Increment Costs 105 269 550 Funds Disbursed 20,895 22,231 23,450 Debt Service 101 113 127 Outstanding Loan Balance 16,573 17,991 19,433 Borrower Cost of Funds 4.12% 4.61% 5.17% Incremental Cost of Funds Incremental New Funds 1,336 1,219 Incremental Debt Service 12 13 Incremental Outstanding Loan Balance 1,419 1,442 Incremental Cost of Funds 11.53% 13.96%
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Notas del editor
Financial Analysis 9:45 – 11:00 a.m. Learn step-by-step the process for developing the skills necessary to critically analyze a development project. The session will cover projecting and analyzing return on investment, the use of leverage, mortgage types and uses, and pro forma building and analysis. Site Selection and Due Diligence – 11:30-12:45 The importance of insuring a sufficient due diligence period, securing the appropriate team members, and performing a thorough effort cannot be overstated. These steps provide the developer with the final opportunity to rescind the transaction before closing on the purchase. Learn how to avoid post-closing conditions that could destroy the viability and profitability of a project. Structuring the Deal to be Profitable 1:30 – 2:45 The way a transaction is structured at the outset has a direct impact on the profitability of a project. The probability of achieving the project's financial goals can be enhanced by the way in which the deal is structured. This session will teach you the key elements involved in structuring the successful development project. Project Entitlement 3:00 – 4:15 Entitlement includes project permitting, growth management and land use regulations, as well as such concepts as sustainable development, smart growth, green development, and compact urban mixed-use development. The entitlements process may be the most rapidly changing part of the real estate development process today. Everyone in the development field, regardless of their experience, needs updating on a regular basis.
December 1&2, 2008 San Francisco Crafting Successful Public Private Parnerships
December 1&2, 2008 San Francisco Crafting Successful Public Private Parnerships
December 1&2, 2008 San Francisco Crafting Successful Public Private Parnerships