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Revere

In: Business and Management

Submitted By AliAliAli
Words 4194
Pages 17
Revere Street- Part I (Multifamily)
Roger Staiger III, FRICS (202) 640-8912 rstaiger@gwmail.gwu.edu

Purpose
Gain Understanding of owner/developer issues within Real Estate Finance  Understand tools and methods for evaluating projects  Understand general structure of a project pro forma using multifamily case study  Gain basic ability to construct a project pro forma  Develop initial tools to quantify a project

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Vehicle for Understanding
 Harvard

Business Case  Relate to Personal Projects  Individual investor/developer seeks to learn Real Estate Finance through actual investment

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Revere Street Case Summary
Edward Alexander wants to invest in Real Estate  Alexander has $80,000 to invest



Finite capital

Real Estate in downtown Boston is Alexander’s preferred investment vehicle (Beacon Hill Area)  Alexander considers an apartment complex



4-unit multifamily
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Considerations - General
 What

are Alexander’s goals?  What are Alexander’s skills?  What are the due diligence efforts?  What are Alexander’s limitations?  Who are the competitors for properties?

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Considerations - Area
Which types of buildings in the Beacon Hill area increased the most in value over the past ten years?  Will property value continue to go up?  Could the land value have a ceiling?  What are the property value differences within the Beacon Hill area?  What is a realistic exit strategy?

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Considerations - Personal
     

What type of cash return is Alexander expecting/willing to receive? (Will 8% or 12.5% satisfy his goals?) Does Alexander require fund liquidity? Does Alexander have any other options besides living in one of his own apartments? How does Alexander’s wife feel? Does she want to work/live in an apartment? What are his family goals? If Alexander lives in the...

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