PROJECT:
Continuing Care Community Seattle, Washington. Economic Feasibility Assessment
Salient Features:
• US witnessing growing Baby Boomer generation ( 1940 – 1964)
• Seattle virtually untouched by housing recession with net immigration, GDP growth, & pay hikes
• Project will induce job growth, senior immigration to city, asset appreciation with time, highest & best use
Lessons Learnt:
• Consideration of market timing, pre-sales projections, purchasing power of clientele,
Fall 2007, MSRE 09 REI - NYU
PROJECT:
329 Tenth Avenue (29th Street), Market Analysis & Project Proposition
Salient Features:
• ~7000 sft, grandfathered property on edge of Hudson Yards Special District & Highline Construction with current $7 psf rent, projected to increase to $17 psf post development of district
• Financially feasible once property value appreciates, as current rents are low
Lessons Learnt:
• Consideration of market timing, inside information of Hudson Yard + Highline development timelines are important for investment decisionSpring 2008,
MSRE 09 REI - NYU
PROJECT:
Bowleys Lane - Brownfield Remediation, Development, & Marketing
Salient Features:
• 600,000 sft of Retail cum Light Industrial (with community component) development on 82 acres of Baltimore city Landfill
Lessons Learnt:
• Benefits to five constituencies – Developer, Investor / Lender, End User, State, and Community
Spring 2008,
MSRE 09 REI - NYU
PROJECT:
Realty Income - -Analysis & Future Projections of Net Lease Retail REIT
Salient Features:
• Stock Overview, Business Model, Asset Portfolio, Geographical distribution, Corporate Governance, Analyst coverage, Current Capital Structure, Status of Debt / Stock etc
• Diversified portfolio, Reserve capital, High investor confidence amongst peers are some of the Strengths
• Retail asset class is cyclical, sustaining Dividend growth is testing for CFO
Lessons Learnt:
• Recessionary environment, high leverage, portfolio risk can have severe impact on REIT’s investor confidence and stock price growth Fall 2008,
MSRE 09 REI - NYU
PROJECT: Health Care REIT - Capital Structure Analysis, Financing Options & Strategy Formulation for long-term growth
Fall 2008,
MSRE 09 REI - NYU
Salient Features:
• Stock Overview, Business Model, Asset Portfolio, Geographical distribution, Corporate Governance, Analyst coverage, Current Capital Structure, Status of Debt / Stock, Comparatives,
• Financial Ratios & Interpretations, Blended WACC, Additional Funds Needed (AFN) for growth, Alternate Financings options, Recommendations
Lessons Learnt:
• Lower stock valuations and high leverage alongwith frozen bond + weak stock markets are unfavorable for REIT M&A
WACC Vs D/E Graph
8.50%
9.00%
9.50%
10.00%
10.50%
11.00%
D/E
WA
CC
WACC Vs D/E Graph 10.67 10.14 9.70 9.47 9.33 9.26 9.58 9.90 10.57
0 0.19 0.46 0.73 1.11 2.17 2.80 5.33 8.50
PROJECT: 171-175 Thomson Street - 29 unit, 1900’s walk-up apartment in West Village, New York City
Fall 2007,
MSRE 09 REI - NYU
Salient Features:
• Location apt for Yuppies clientele & close to amenities
• Appraisal done using Cost, Income Capitalization, and Sales Comparison Approach
• Information of comparables, property title records
Lessons Learnt:
• Lower stock valuations and high leverage alongwith frozen bond + weak stock markets are unfavorable for REIT M&A
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