HSK 831 - Real Estate Development and Finance 2

Course Description

*Formerly CPE 223*

Course Description: 

This course builds on the knowledge and skills from Real Estate Development and Finance I (CPE 119/HSK 825) to provide more nuanced study of financing options available to buildout development projects. Learn through a combination of peer collaboration, active, real-world examples from across Canada, and expert guest speakers from the real estate sector. This course includes topics related to common forms of borrower structure, limited partnerships, joint ventures, profit and equity waterfall distributions, 1^st and 2^nd mortgage financing options, A/B mortgages, lender syndications, VTB’s, and CMHC-insured financing programs.

Course Learning Outcomes: 

1. Identify the various types of legal structures that are used to acquire, develop, and divest real estate assets and explain each structure's benefits as it relates to the financing decision.
2. Analyze the benefits of various acquisition methods used to acquire land
3. List the basic features of mortgage agreements, including first and second charges, other types of private financing transactions, and the legal framework supporting these agreements.
4. Compare 1st and 2nd mortgage returns and assess risk relative to the positions taken by each type of lender.
5. Assess various equity capital structures used to finance real estate projects and how they influence the securing of project debt.
6. Develop a project pro-forma for an existing cash-flowing asset to be used to secure long term financing.
7. List the various buyers of real estate assets upon completion.
8. Identify the familiar sources and providers of commercial real estate debt across the risk spectrum.