Styuvesant Town-Peter Cooper Village, otherwise known as Stuy Town, is back in real estate news. Blackstone, together with Ivanhoe Cambridge and CWCapital Asset Management, have agreed to buy the 11,232-unit apartment complex for $5.3 billion – nearly matching the $5.4 billion paid for the property by a Tishman Speyer/Blackrock partnership in 2006. The property is the largest apartment […]
It is little secret among our readers that I view ARGUS DCF as a necessary evil. On the one hand, it is the industry standard for underwriting real estate. Virtually every broker package for institutional quality deals comes with an ARGUS run, and most real estate shops use the software in their analysis. On the other […]
I took a few minutes this weekend, and created a video to help you use my real estate equity waterfall (IRR hurdle technique) model that I built in Excel. Again, keep in mind that the model is not standalone, but can be used with any of the Excel models in our library or with your […]
I’ve updated my Portfolio Acquisition Model to include the following changes: – Added an “Investor Level Returns” tab to the model, which uses my Real Estate Equity Waterfall Model to calculate the equity returns of the sponsor (GP) and the limited partners (LPs) – Added an “Investor Returns” box to the Portfolio Summary tab, summarizing […]
From time to time, I’m asked to share more complex development models that I’ve used professional. Unfortunately, most of the models that I’ve used professionally were built in partnership with others, and so I’m not at liberty to share those models openly. However, a couple of years ago, a friend at Cornell shared a resource with […]
UPDATE: ARGUS stopped selling ARGUS DCF at the end of 2015 and will stop supporting the software all together in 2017. The company no longer offers public training for DCF. You’ll also note that the YouTube video tutorial for DCF has been taken down. This blog post therefore, is no longer relevant. ARGUS DCF is was […]
If there’s one thing I remember from my pre-2008 days, it was seeing a lot of stories like this. Are we in bubble territory yet? SL Green Realty has agreed to buy CIM Group’s 11 Madison Ave. The 29-story office tower in Manhattan, NY will reportedly trade for $2.3 billion, the second highest price ever paid for a U.S. […]
It was announced last week that Prologis, the world’s largest industrial REIT, has agreed to buy KTR Capital Partners for $5.9 billion. KTR owns and operates 70 million square feet of real estate across the U.S. I think the deal is interesting because, besides being one of the largest deals of the year, Prologis plans to buy KTR through a joint […]
David Funk, a professor of mine and the former director of the Baker Program in Real Estate at Cornell University, recently published some interesting research into asset reallocation by institutional investors that more heavily favors commercial real estate. It is definitely worth a read: Click here to read: ‘Real Estate Takes Its Place as the […]
I built this multi-scenario , value-add hotel investment model from scratch in Excel for an assignment in one of my real estate finance courses at Cornell. Keep in mind, this model is not plug-and-chug ready. However, with a few tweaks it works great for both back-of-the-envelope, and more detailed financial analysis. This model is an example […]
GE is unwinding its financial companies, and as a consequence, is selling off its real estate assets. Blackstone and Wells Fargo have reportedly agreed to buy GE Capital’s real estate assets for $23bn. This is the largest deal of its kind since Blackstone acquired Equity Office Properties Trust in 2007. A few links with deal specifics: […]
At $1.3bn, The Blackstone Group is set to become the next owner of the iconic Willis Tower (formerly the Sears Tower) in Chicago, IL. The group selling the building, bought it for $841mm in 2004. A few links with deal specifics: http://www.bloomberg.com/news/articles/2015-03-16/blackstone-group-agrees-to-buy-chicago-s-willis-tower http://www.benzinga.com/trading-ideas/long-ideas/15/03/5331305/blackstones-willis-tower-purchase-set-a-record-but-is-it-a-ba http://www.chicagobusiness.com/article/20150306/NEWS12/150309828/blackstone-in-talks-to-buy-willis-tower-for-1-5-billion Frequently Asked Questions about Blackstone’s Acquisition of the Willis Tower
As further evidence that real estate is fast becoming the fourth major institutional asset class, S&P has announced that it will create a new sector for the industry. “S&P Dow Jones Indices, a leading provider of financial market indices, and MSCI Inc., a leading provider of investment decision support tools worldwide, announced today that as […]
This is the first in a series of Excel models on adventuresincre.com Here is a basic multifamily development model that I put together. I didn’t build this model from scratch, but rather pieced together several other models to arrive at this. This is very basic, but is a great first-look model for simple projects. More complexity […]
Two years of formal real estate instruction is best complemented by real world application. By putting into practice the principles taught in the classroom, we as students truly internalize the concepts. The summer internship experience is one of the reasons I chose to attend the Baker Program in Real Estate at Cornell, and my internship […]