ALI Plus-Real Estate Development (APRD1-CE)

<p>Examine the real estate development finance process for new building projects and renovations. Whether you are an owner, borrower, investor, developer, lender, broker, contractor, or manager in the real estate industry, this course reveals the mechanics, motivations, and requirements of the parties involved in the construction loan (debt) process. Topics include loan types; the development team; the lender&#8217;s credit criteria; the loan proposal; hard and soft cost budgets; the appraisal report; project feasibility; due diligence; construction contracts; legal documentation; guarantees; insurance and bonding; title insurance; liens; environmental reports; the Building Loan Agreement (BLA); requisitions, the funding process, and loan administration; retainage; the lender&#8217;s engineer; and the takeout.</p>

<p>Learn the fundamental phases of the real estate development process. Property and project types covered include commercial office, multifamily, mixed-use, redevelopment, and urban infill. Study land assemblage, land use review, environmental procedures, design considerations, delivery methods, market feasibility, the project pro forma, capital and financing structures, dealing with professional and government agencies, contracts with partners and external parties, the project life cycle, marketing, leasing, and property management.</p>

<p>Examine standard office and retail lease forms, understand the motivations of the parties to a lease, and develop a framework for negotiation&#8211;&#8211;from term sheet to closing. Topics include full-service, triple-net, and modified-gross leases; legal terminology in leases; expenses and additional rent clauses, including operating expenses, common area maintenance (CAM), and real estate taxes; exit strategies, including assignment and sublease; the tenant&#8217;s rights of first offer, first refusal, renewal, and termination; the role of lenders in commercial leases; guarantees and types of security deposits; insurance and environmental issues; and use and operating covenants specific to retail leases.</p>

<p>Learn fundamental real estate market analysis principles and techniques to make more informed development and investment decisions. Topics include site assessment; demographic analysis; rental rates; sales values; supply and demand for different property types; and local as well as national economic, governmental, legal, and social considerations. Relevant, hands-on research and analysis exercises are conducted inside and outside the classroom.</p>