Real Estate Private Equity Course

Lesson 1 • Property Types and Market Segments

Surveys major commercial property sectors and their risk-return profiles. Grounds students in sector-specific dynamics before financial modeling begins.

Lesson 2 • Risk-Return Spectrum in REPE

Introduces core, core-plus, value-add, and opportunistic strategies along the risk-return continuum. Students learn to match strategy to investor mandate.

Lesson 3 • The REPE Asset Class Defined

Defines REPE relative to public real estate, direct ownership, and other private alternatives. Establishes the conceptual baseline for all subsequent chapters.

Lesson 4 • Industry Participants and Roles

Maps the ecosystem of sponsors, limited partners, lenders, and advisors. Clarifies how each party's incentives shape deal structure and outcomes.

Lesson 1 • Levered Cash Flow and Returns

Derives levered free cash flow after debt service and calculates equity distributions. Introduces IRR and equity multiple as primary return metrics.

Lesson 2 • Sensitivity and Scenario Analysis

Stress-tests key assumptions using data tables and scenario toggles. Teaches students to identify which variables most affect investment outcomes.

Lesson 3 • Building the Pro Forma Income Statement

Constructs gross potential rent, vacancy, and effective gross income line by line. Establishes the revenue architecture used in all subsequent models.

Lesson 4 • Operating Expenses and NOI

Categorizes fixed, variable, and management expenses to arrive at net operating income. Accurate NOI is the foundation of valuation and debt sizing.

Lesson 1 • Replacement Cost Approach

Estimates land value and depreciated replacement cost of improvements. Useful for development feasibility and insurance value benchmarking.

Lesson 2 • Valuation in Transaction Context

Reconciles multiple value indications into a bid price recommendation. Addresses the gap between appraised value and investment value in REPE deals.

Lesson 3 • Income Capitalization Approach

Applies direct capitalization and discounted cash flow methods to income-producing assets. Connects NOI from the prior chapter to market value conclusions.

Lesson 4 • Sales Comparison and Comparable Analysis

Selects, adjusts, and weights comparable transactions to derive value indications. Builds the market evidence discipline required for acquisition underwriting.

Lesson 1 • Mezzanine Debt and Preferred Equity

Explains subordinate capital instruments that fill the gap between senior debt and common equity. Analyzes cost, control, and risk trade-offs for each layer.

Lesson 2 • Equity Co-Investment Structures

Covers joint ventures, club deals, and co-investment arrangements between sponsors and capital partners. Defines how economics and control are allocated.

Lesson 3 • Senior Debt Products and Terms

Surveys construction loans, bridge loans, and permanent financing structures. Establishes the baseline debt layer that anchors every capital stack.

Lesson 4 • Lender Relationships and Loan Execution

Guides students through the loan origination process from term sheet to closing. Builds practical skills for negotiating and executing debt financing.

Lesson 1 • Financial and Market Due Diligence

Validates seller financials, rent rolls, and market assumptions through independent research. Reconciles actual performance against underwriting projections.

Lesson 2 • Physical and Environmental Due Diligence

Identifies structural, mechanical, and environmental risks through third-party reports. Quantifies capital expenditure requirements before finalizing acquisition pricing.

Lesson 3 • Initial Screening and Investment Criteria

Applies quantitative filters and qualitative screens to prioritize opportunities. Saves time by eliminating misfit deals before deep analysis begins.

Lesson 4 • Deal Sourcing Strategies

Covers on-market, off-market, and relationship-driven sourcing channels. Establishes the pipeline discipline that drives consistent deal flow.

Lesson 1 • Limited Partnership Agreement Essentials

Decodes the key provisions of an LPA governing capital calls, distributions, and GP authority. Students identify investor-protective clauses and GP-favorable terms.

Lesson 2 • Management Fees and Fund Expenses

Analyzes management fee structures, offsets, and fund-level expense allocations. Quantifies the drag of fees on net LP returns.

Lesson 3 • Waterfall Structures and Carried Interest

Models American and European waterfall structures and calculates carried interest under each. Demonstrates how waterfall design affects GP and LP alignment.

Lesson 4 • Fund Legal Structures and Vehicles

Explains closed-end funds, open-end funds, and co-investment vehicles used in REPE. Connects legal form to tax treatment and investor access.

Lesson 1 • Capital Improvement and Repositioning

Plans and manages capital expenditure programs to reposition assets and drive rent growth. Links CapEx investment to projected NOI improvement and exit value.

Lesson 2 • Hold vs. Sell Decision Analysis

Applies quantitative and qualitative frameworks to determine optimal hold period and exit timing. Balances remaining upside against market conditions and fund lifecycle.

Lesson 3 • Business Plan Execution and Monitoring

Translates the acquisition underwriting into an actionable asset-level business plan. Establishes KPIs and reporting cadences to track performance against projections.

Lesson 4 • Leasing Strategy and Tenant Management

Develops leasing plans to optimize occupancy, rent growth, and tenant credit quality. Covers lease negotiation, renewal strategy, and tenant retention.

Lesson 1 • Fund Wind-Down and LP Distributions

Manages the final disposition of assets, clawback calculations, and LP capital returns. Ensures orderly fund termination and accurate final accounting.

Lesson 2 • Portfolio Construction and Diversification

Applies diversification principles across property type, geography, and vintage year. Optimizes the portfolio to balance risk and return at the fund level.

Lesson 3 • Portfolio-Level Performance Attribution

Decomposes fund returns into income, appreciation, and leverage contributions. Identifies which assets and decisions drove or detracted from performance.

Lesson 4 • Disposition Process and Execution

Manages the full sale process from broker selection through closing. Maximizes proceeds through competitive bidding and disciplined negotiation.