SYLLABUS

REAE 5314.032: SEMINAR REAL ESTATE DEVELOPMENT

FALL 2001

Thursday, 3:00-5:50 PM

University Center at Dallas

Instructor        J. Andrew Hansz, Ph.D., CFA

Office                         619 Business Building

Office Hours   MWF 11:00 – 11:45 AM and by appointment.

Phone              (817) 272-5843                                   E-mail             hansz@uta.edu

Course Description

The land conversion process including feasibility analysis, site selection, design, construction, and financial analysis. Land use controls, planning, and environmental constraints are also examined.

Prerequisites

Prerequisite: FINA 5311 or REAE 5311 or equivalent.  See graduate bulletin.

Course Format

·        Discussion/Seminar - Specific text readings and cases will be assigned for each class period.  Class will be conducted in a seminar format and it is expected that each assignment will be read prior to class and you will be ready to discuss the material in class.

·        Lectures and Assignments – Some lecturing will be necessary.

·        Quizzes (3) and Final Exam

·        Cases – Several real estate development case studies will be assigned, discussed in class, and graded.

·        Development Project/Paper/Presentation – Students have the option of a case study based final development project or an applied (local) project.

·        Attendance and participation is required.  Due to the seminar format of this course, class discussion and contribution is critical.  Attendance will be taken.

Required Textbooks

Real Estate Development, 3rd Edition, Mike E. Miles, Gayle Berens, and Marc A. Weiss,

 Urban Land Institute, 2000. (ULI phone number 1 800 321-5011)

            Getting to Yes, Roger Fisher and William Ury, Penguin Books.

Harvard Business School case studies (5)

Calculators and Spreadsheet

A financial calculator (HP 10-B or equivalent) and a spreadsheet (Excel or equivalent) are required.  The calculator must be able to calculate Internal Rate of Return (IRR) and Net Present Value   (NPV).  This means that the calculator must be able to deal with entry of uneven cash flows.  Check the manual before you buy a calculator.  You are responsible for learning the keystrokes.  Please, do not use any electronic devises with memory during quizzes or exams.  I also assume that you have basic spreadsheet skills.

Grading

                                                                                                                             Percent

Quizzes (3)                                                                       45%

Final Exam                                                                       20

Development Project Papers/Presentations                       20

Chapter Presentation, Case Preparation,

Attitude/Contribution                                                        15

            Total                                                                 100%

Generally, the grading scale used by the Instructor can be:

90 - 100% = A                                  

80 - 89%  = B                                   

70 - 79%  = C                                   

60 - 69%  = D                                  

Below 60% = F                                   

The instructor can apply a "curve" which could lower these ranges. 

Make-up Examination Policy

The instructor reserves the rights to change the style, format, and content of a make-up examination. A make-up exam will be given if the student has a reasonable, verifiable excuse.  However, students should not expect to take more than one make-up exam.  The make-up exam must be completed before the end of the week in which the original exam was scheduled.  Once a student has taken an exam, a make-up exam cannot be given.

Policy on Attendance 

Students are expected to attend each class and students are expected to come to each class with their assignments completed.  Students who must miss a class are responsible for obtaining all assignments, lecture notes, handouts, and announcements discussed in class from a classmate.  You should get to know at least one student in class.

Policy on Handing in Assignments Late

Several homework assignments will be made during the quarter. A penalty per class period will be assessed for all assignments turned in late.  Absence from class is not a valid excuse for handing in homework assignments late.

Policy on Disruptive Classroom Behavior

This course will be conducted in a professional manner.  Unprofessional behavior of any form in the classroom will not be tolerated.  Students can be withdrawn at the discretion of the instructor for unacceptable behavior.  Additionally, a portion of the final grade is attributed to class attitude/contribution.  This grade, made at the instructor discretion, is based on attendance and attitude during class.  Please disable all cell phones and pagers during class time.

Academic Honesty

It is the philosophy of UTA that academic dishonesty is a completely unacceptable mode of conduct and will not be tolerated in any form.  All persons involved in academic dishonesty will be disciplined in accordance with University regulations and procedures.  Discipline may include suspension form the University.  You are responsible to maintain the standards of Academic Honesty included in the current UTA catalog.

Bomb Threats

Effective April 8, 1996, the College of business Administration has adopted a policy to deal with the classroom disruption caused by bomb threats in the building.  (A) Section 22.07 of the Texas Criminal Law Statutes states that a Class A misdemeanor is punishable by (1) a fine not to exceed $4,000, (2) a jail term of not more than one year, OR (3) both such a fine and confinement. (B) If anyone is tempted to call in a bomb threat, be aware that UTA has the technology to trace phone calls. (C) Every effort will be made to avoid cancellation of presentation/tests caused by bomb threats to the Business Building.  Unannounced alternate sites will be available for these classes.  If a student who has a class with a scheduled test or presentation arrives and the building has been closed due to a bomb threat, the student should immediately check for the alternate site notice which will be posted on/near the main doors on the south side of the Business Building.  If the bomb threat is received while class is in session, your instructor will ask you to leave the building and reconvene at another location.  (D) Students who provide information leading to the successful prosecution of anyone making a bomb threat will receive one semester’s free parking in the Maverick Garage across from the Business Building.  UTA’s Crime stoppers will provide a reward to anyone providing information leading to an arrest.  To make an anonymous report, call 817-272-5245.

Withdrawing

It is the student’s responsibility to complete the course or withdraw form the course in accordance with University regulations.  Students are strongly encouraged to verify their grade status before dropping a course after the first withdrawal date.  A student who drops a course after the first withdrawal date may receive an “F” in the course if the student is failing at the time the course is dropped.

Drop for Non-payment

It is the policy of the University of Texas at Arlington that students who have not paid by the census date and are dropped for non-payment cannot, under any circumstances, receive a grade for the course.  Therefore, a student dropped for non-payment whom continues to attend the course will not receive a grade for that course.  Emergency loans are available to help students pay tuition and fees. Students can apply for emergency loans by going to the Emergency Tuition Loan Distribution Center at E.H. Hereford University Center (near the southwest entrance.).

Student Evaluation of Teaching

The following appears in Administrative Memorandum No. 98-5 dated August 21, 1997, from the President for academic and administrative offices. “ Beginning in Fall 1997, teaching evaluations will be conducted in every class every semester for every instructor of record”. 

Important Dates

Tentative Schedule:   This is a tentative schedule.  Adjustments will be necessary during the progression of the semester.  It is the student’s responsibility to be aware of any changes announced in-class.

Week              Topics                                                                                                 Chapters

1                                            Course Administration; Review Packet

2                                            Part I: Introduction                                                                                Ch. 1, 2, 3

Introduction to the Real Estate Development Process

The Raw Materials: Land and Demographics

Developers and Their Partners

                        Anderson Street Case (class discussion)                                             Case

3                                            Part II: Finance                                                                                     Ch. 4, 5

Real Estate Finance: The Institutional Setting

Financial Theory: The Logic behind Real Estate Financing

                        The Millegan Creek Apartments (write-ups due)                               Case

4                                            Part III: History of Real Estate Development in the US                          Ch. 7, 8, 9

The Colonial Period to the Late 1800s

The Late 1800s to World War II

Post-World War II to the Present

                        Quiz 1 (September 20^th)

5                                            Part IV: Ideas                                                                                       Ch. 10, 11, 12

Stage One: Inception of an Idea

Market Research: A Tool for Generating Ideas

Stage Two: Refinement of the Idea

                        Fan Pier (write-ups due)                                                                     Case

6                                            No Class (Urban Land Institute Meeting, Boston, October 4th)

7                                            Part V: Planning and Analysis: The Public Roles                         Ch. 13, 14

The Roles of the Public Sector

Meshing Public and Private Roles in the Development Process

                                                Quiz 2 (October 11^th)

8                                            Part VI: Planning and Analysis: The Market Perspective                        Ch. 16, 17, 18

Stage Three: The Feasibility Study

Market Analysis: Collecting, Validating, and Understanding Market Data

Data Sources Supporting Market Studies

9                                            The Feasibility Study and Market Analysis (continued)

10                                        Part VII: Making It Happen                                                                  Ch. 19, 20

Stage Four and Five: Contract Negotiation and Formal Commitment

Stages Six and Seven: Construction, Completion, and Formal Opening

Commercial Construction Video

11                                        Negotiation                                                                                           Getting to Yes

                                Quiz 3 (November 8^th)

12                                        Part VII: Making It Work                                                                     Ch. 21, 22, 23

Stage Eight: Property, Asset, and Portfolio Management

The Challenge of Marketing and Sales

A Note about the Future

13                                        No Class (Thanksgiving Break, November 22nd)

14                                        Development Project Presentations – Regency Plaza & Local

15                                        Development Project Presentations – Silver Lane Apartments & Local

                                All Paper Due Thursday, December 6th

16                Final Exam* – Thursday, December 13, 2001

*If you would like your final grade, before posted by the University, please bring a self-addressed, stamped envelope to the final exam.  To protect your privacy, I do not give grades over the phone or via E-mail (applies to all quizzes and final grade).

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