Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, September, 2020 / Cataloged from student-submitted PDF of thesis. / Includes bibliographical references (pages 41-42). / This thesis examines the potential for reinventing an existing asset class -- limited service hospitality properties -- as new workforce housing properties. Due to the cyclical demand profile, modest price points, and relatively fragmented ownership of limited service hotels in the United States, these properties often escape the attention of highly sophisticated investors and developers. Furthermore, as relatively low margin businesses, many of the properties are visually unappealing and have significant deferred maintenance needs. Coupled with this dynamic is the fact that the United States is facing a nationwide housing crisis and suffers from a structural shortage of affordably priced housing alternatives. This thesis examines the economics of limited-service hospitality assets; the growth of workforce housing as a residential asset class; and the potential for redeveloping legacy hospitality properties into new workforce housing. In order to supplement the aforementioned macro and secular analyses, this thesis also includes a case study of the redevelopment of an antiquated motel in Oceanside, California. / by Eric DeWees. / S.M. in Real Estate Development / S.M.inRealEstateDevelopment Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate

Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, September, 2020 / Cataloged from student-submitted PDF of thesis. / Includes bibliographical references (pages 49-53). / The outbreak of the COVID-19 pandemic in late 2019 has largely impacted the global economy by changing every aspect of our living environment with limited social and economic activities throughout 2020. This unprecedented economic downfall exposed real estate properties to high risk of default, pushing the CMBS loans delinquency rate to 10.32% in June 2020. As such an economic halt is likely to prevail, it is expected that the Commercial Real Estate (CRE) market would experience more distress in terms of debt service. Thus, it is imperative to overview the CMBS securitization process, the servicing structure, and the workout scenarios in case of loan default in order to understand the complexity of the CMBS structure and better prepare appropriate measures or strategies in response to current market landscape. By having a case study on 666 Fifth Avenue in New York, this paper will analyze one of the most high-profile properties that was transferred to special servicing to review strategies to resolve financial distress. / by Joon Keun Chang. / S.M. in Real Estate Development / S.M.inRealEstateDevelopment Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate

Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, September, 2020 / Cataloged from student-submitted PDF of thesis. / Includes bibliographical references (pages 164-169). / In the 1950s, Baltimore had reached its peak. The city's geographic location allowed it to thrive during the industrial age as a manufacturing and logistics hub for the United States. Since then, economic downturns, profound racial issues, dysfunctional leadership, and an urban exodus to the suburbs has left Baltimore struggling through a downward spiral. This thesis aims to validate and propose a solution for catalyzing the revitalization of Baltimore by leveraging strategic partnership and real estate development as a tool for change in the city. The thesis is comprised of four distinct sections. Section I provides a historical overview of the events and circumstances that shaped Baltimore. Section II presents a series of economic trends and forces that shape the development strategy for the city, which utilizes the biomedical research activity at Johns Hopkins to design and program effective urban centers. Section III proposes a pilot development project that makes an immediate impact on the East Baltimore community while supporting the growth of the biotechnology and life sciences industries locally to generate lasting benefits to the city. Finally, Section IV projects the future potential resulting from the execution of the proposed pilot and the formation of the cross-functional partnerships that are required for its delivery. The analysis focuses primarily on collaboration between the City, Johns Hopkins University, and a development partner driven by alternative measures of project success and outcomes. By aligning on desired commitments and returns, a highly efficient and productive form of project is made possible to trigger a transformation of Baltimore City. / by Maximilian S. Beatty. / S.M. in Real Estate Development / S.M.inRealEstateDevelopment Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate

Thesis: M. Arch. in Real Estate Development, Massachusetts Institute of Technology, Department of Architecture, February, 2020 / Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, February, 2020 / Cataloged from student-submitted thesis. / Includes bibliographical references (page 45). / Where is the value of design? Clients who are using buildings to solve societal economic needs rely heavily on real estate asset valuation models to guide their decision-making process; however, these asset valuation models often oversimplify the asset and only attempts to capture the crudest elements of the building (in most cases, only the square footage of the building is represented). Such crude abstraction of the asset results in the client's over-emphasis on elements that are represented within the valuation model as key value drivers for a project (e.g. the square footage). As a result, architects are often confronted with the challenge of mediating between their design interventions and the client's value-driven design approach. The result of this misalignment of design approaches are suboptimal design and economic outcomes. / As an attempt to address this misalignment, I've investigated twenty internal and external architectural features such as external materiality, internal materiality, column spacing, and the number of building entrances to see whether there are architectural design features that are statically and economically significant in contributing to the value of the building. The intention is to identify elements where consistent financial value can be documented within design practice. There is limited data on design features so I chose to focus on the New York City commercial office market. While this represents a small subset of the entire real estate market, it has allowed the research to derive some key insights from an otherwise extremely opaque market. I documented and investigated twenty design features. Twelve of these architectural features were found to be statistically and economically significant in contributing to pricing differentials relative to their building peers. / These results suggest that there is a significant impact of interior and exterior architectural design interventions that help to create relative value differential for commercial office buildings. / by Shane Xue Ying Zhang. / M. Arch. in Real Estate Development / S.M. in Real Estate Development / M.Arch.inRealEstateDevelopment Massachusetts Institute of Technology, Department of Architecture / S.M.inRealEstateDevelopment Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate

Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2019 / Cataloged from PDF version of thesis. / Includes bibliographical references (pages 63-64). / In the last decade, mainland China has encouraged diverse experiments of real estate asset securitization in different sub-sectors, such as rental, industrial, and retail markets. However, little research has focused on the community-based retail, and few experiments of community-based retail asset securitization have taken place. The paper attempts to propose a new strategy for China's community-based retail development, with the belief that, by utilizing innovative real estate securitization as an alternative financing tool, community-based retail development will exploit its economic and social potential to make better neighborhoods in cities. The paper will discuss the opportunities and the challenges in community-based retail development in China, examine the key features of alternative financing tools that could be utilized, and develop a hypothetical strategy to integrate these concepts and make an example of a feasible system for the applications of REITs in China's real estate market.. / by Qianwen Yin. / S.M. in Real Estate Development / S.M.inRealEstateDevelopment Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate

Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2019 / Cataloged from PDF version of thesis. / Includes bibliographical references (pages 51-53). / The Chinese real estate market has been growing rapidly over the past decade and has become a popular destination for foreign institutional investors (FIls) including both the public and private entities such as sovereign wealth funds, pension funds, equity funds, banks and insurance firms. An increasing interest from global investors has been observed recently. The total property transaction volume of foreign institutional investment in mainland China set a new yearly record in 2018 and a new quarterly record in the first quarter of 2019. The main objective of this study is to identify the investor universe and the investment patterns of different types of FlIs in China's real estate market. Thorough analysis of the actual transaction data is performed to understand the investment behaviors and preferences in each major property sector including office, retail, industrial, apartment, hotel and site development. Company profiles and a few selected cases formost active investors in the market are reviewed to analyze the investment strategies. This research finds that institutions from the United States and Singapore have dominated the foreign investment field. Equity funds and investment managers are the most active players among all types of FIls. While the office sector is the most popular type, prime retail assets also have a few loyal followers. The development site lost it attractiveness but the industrial and the rental apartment sectors received tremendous attention in recent years. Following their investment guidelines, FIls demonstrate different risk tolerances by the investor type and also adopt various investment strategies for different property types. The study also provides analysis of future investment trends in the selected promising sectors and regions. The investment risks are assessed for FIIs who have been or will be in the Chinese real estate market. / by Ye Zhou. / S.M. in Real Estate Development / S.M.inRealEstateDevelopment Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate

Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2019 / Cataloged from PDF version of thesis. / Includes bibliographical references (pages 52-55). / This thesis aims to develop the framework of a housing program designed to help current recipients of rental subsidies begin to build household wealth through homeownership. Its core beneficiaries are households in Boston and Cambridge earning between 60% and 80% of the area median income. It also proposes an extended program to help households earning between 80% and 135% AMI purchase a home, since they also face significant burdens from housing costs in the current market and are underserved by existing housing programs. The proposal does not aim to solve the overall housing crisis, nor to replace existing programs, but rather to act as a supplement to current programs. The first chapter examines the history of housing policy, and from that review draws six principles of effective housing programs which are used to guide the new proposal. The second chapter examines the needs of renters, home buyers, and property developers in order to identify basic criteria which a new program must meet. The third chapter evaluates individual potential elements of a new program with respect to the principles and criteria identified within the earlier chapters. Finally, the framework of the proposal for a new housing program is laid out. / by Thomas F. Worth, II. / S.M. in Real Estate Development / S.M.inRealEstateDevelopment Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate

Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2019 / Cataloged from PDF version of thesis. / Includes bibliographical references (pages 26-27). / Risk -- both its mitigation and its exploitation in pursuit of profits -- is likely the most important topic in the study of investment. Risk in private market commercial real estate, however, has been historically less well understood than other more liquid asset classes. To date, most of the research on risk in real estate investment has focused on how changes, cycles, or shocks in the underlying space or asset markets occur. This paper furthers the study of commercial real estate risk by decomposing historical asset volatility into its component space and asset market parts. We do this through the application of a variance decomposition framework on NCREIF NPI time-series data that has been de-trended of long-term secular market movements. In doing so, we are able to compare the relative contributions of space and asset market volatility to commercial real estate price volatility and, more importantly, demonstrate how the expectations of investors who sit at the intersection of those two markets may play an overlooked role in moderating or augmenting volatility. / by Christopher J. Whittier. / S.M. in Real Estate Development / S.M.inRealEstateDevelopment Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate

Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2019 / Cataloged from PDF version of thesis. / Includes bibliographical references (pages 52-54). / This thesis examines an underappreciated asset class -- small Class B multifamily in secondary Sun Belt markets -- to see if it is a suitable entry point for junior real estate investors and developers. Due to the small size and low price points of these properties, as well as their location outside of gateway markets, these assets tend to escape the attention of highly-sophisticated capital. This lack of attention creates market inefficiencies with strong upside potential for-junior real estate investors and developers at reasonable entry-point prices. This thesis examines the economics of small Class B and C multifamily assets; the resiliency of these assets in an economic recession; and the optionality inherent to Class B and C multifamily as it pertains to various holding and exit strategies. This thesis also explores the trends driving growth in secondary Sun Belt markets, and why these markets are attractive to junior real estate investors and developers. Incorporated within this thesis are case studies of a secondary Sun Belt market (Tampa Bay, Florida) and a small, Class B multifamily asset (the Caprice). / by Wade Vaughn. / S.M. in Real Estate Development / S.M.inRealEstateDevelopment Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate

Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2019 / Cataloged from PDF version of thesis. / Includes bibliographical references (pages 84-86). / As FinTech and online alternative finance has become a disrupter for the world, one of their subcategories, crowdfunding has a considerable potential to change the real estate industry. The study was to examine the real estate crowdfunding (short for RECF) in China and understand the present status of the industry, challenges, opportunities, and trends. The data mainly came from the Chinese crowdfunding websites, industry reports, and the RECF platforms; the methodology included fundamental data analysis, case study and comparison with the RECF in other regions such as US, UK, and Europe. The study started with an introduction of real estate FinTech, crowdfunding, and theoretical framework about RECF as well as the global RECF market to get a better understanding of the RECF in China. / Then the research examined the history, and current status about the platform models, players, and characteristics of the RECF in China; the two representative cases (Duocaitou and Kaishiba) were are analyzed in detail to interpret the drivers under their successes and problems in general. The study found out the possible challenges for the RECF industry in China, including the blurred regulatory environment, low diversification in types and locations of properties and immature platforms as well as low desire to expand globally. Finally, the research attempted to seek for potentials and recommendations that will ultimately lead to the successful future development of this industry. The study was subject to the limitations on accessibility to the database and timeliness of data in such a changing industry. / However, its findings and suggestions can be useful to players who are supposed to engage in the RECF ecosystem and intend to involve in the RECF in China such as regulators, real estate developers, institutional or retail investors, and RECF startups. Future researches are necessary to understand the effectiveness of risk management systems on the RECF platforms, the ways that the institutional players can involve in the industry, the globalization of the Chinese RECF, and mechanism of RECF ecosystem. / by Renjie Tang. / S.M. in Real Estate Development / S.M.inRealEstateDevelopment Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate