15.427  Real Estate Capital Markets (H1)

As a follow-up to my previous message, we found out that apparently WebSIS won't report grades to students until the end of the semester (even though we have recorded them in the system). If you want to know your grade before the end of the semester, please email to Maria Vieira at mvieira@mit.edu. My apologies.

The course grades for Real Estate Capital Markets have been recorded and should be available to you on WebSIS. You can look at your graded exam (and see an answer sheet for the exam) by stopping by Maria Vieira's office anytime in the afternoons (after approximately 1:30PM). You're welcome to look over your exam but then please return it back to Maria before you leave.

I hope you are all enjoying your Spring Break.
I have now posted a link to the audio-videotape of our March 21 class, the guest presentation by Brad Case (NAREIT Director of Research). Go to the Forum, the Module 3 section. Feel free to post any questions or responses (I may forward to Brad, as appropriate). Brad's slides are also posted as a PDF file under the Lecture Notes heading on the Materials page.

If anyone wants to delve into more depth about the PureProperty Indices that Brad Case spoke about in class today (March 21), I have posted to the Resources section some additional slides and an Excel file that gives a simple numerical example of how the PureProperty Index construction works. I will also post the videotape of Brad's lecture as soon as we have that available. (And of course Brad's slides that he used in class are already posted in the regular class Lecture Notes section.)

Let me also say, since this is the end of the course, that I enjoyed the class, and please fill out the course evaluation that is available online.
Thanks, DG.

In RE Capital Mkts class on Tuesday we will focus on real estate price index based derivatives, including some background about price indexes and swaps. But it will be more fun if we focus on the Grosvenor Case. So, even though this last week is optional and not graded, I strongly encourage you to obtain the Grosvenor Case (see previous announcement) and read it. In particular be prepared to discuss the questions in the second paragraph on page 1:

• Can derivatives be right for a "conservative" organization?

• Why/How does it matter for Grosvenor if the derivatives market is new and "not fully seasoned"?
• What are the costs and benefits (qualitatively) of using derivatives in the case?
• How would use of derivatives relate to Grosvenor's long-standing commitment to use of local operations and knowledge?

Relevant material in the text is in Chapter 25 (about CRE indexes) and Chapter 26 (about derivatives). In particular I recommend section 26.3, pp.684-692 (with the last of that, 26.3.3 on pp.690-692, being particularly relevant for Brad Case's presentation).

Beyond that, we don't have any plans for a recitation on Tuesday evening. However, I will be available during that time slot for Q&A, "Liquidity Seminar," whatever. And finally, don't forget our last class on Thursday featuring NAREIT Research Director Brad Case.

Have a nice weekend (and do read the Grosvenor Case - it's quite interesting!)