Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2015. / Cataloged from PDF version of thesis. / Includes bibliographical references (pages 69-70). / This paper seeks to reveal an overlooked opportunity to develop and invest in multifamily properties for rent in Colombia by examining all of the variables that make up a suitable investment. With more sophisticated investors entering the market, sky-high housing prices, desirable demographic trends for a growing economy and the highest share of renters in a Latin American city, Bogota has the perfect mix for developing an institutionally-owned and managed rental housing market. It is addressed to developers, property managers and investors who can seize this opportunity in years to come. Also, is meant to provide a holistic research that summarizes the present situation and provides clear guidelines for future ventures. There are clearly some challenges that this new market will face. Low rental yields, an insufficient legal and regulatory framework, and a lack of specialized funding vehicles are three of the main obstacles that these developments will encounter. From a competitive perspective, it is clear that a fragmented though efficient rental market exists. Even though it operates largely in an informal manner, this supply of units satisfies the needs of todays' rental community. These obstacles, among others, will be analyzed in this thesis to show that the existing risks can be managed and mitigated and it is indeed the right moment to develop new investment platforms. The research will contemplate the whole Colombian rental market but will focus on Bogota's mid and high-end spectrum of the housing market. While affordable-housing projects for rent can also be identified as a substantial opportunity, the fact that most likely the regulatory framework around the subject will soon change, exposes any recommendation to becoming irrelevant. In order to further develop the institutional real estate in Colombia, the country will not only need more sales and steady price increases. A central piece for becoming a sophisticated and modern market will come from a change of approach towards the process of conceiving, analyzing and investing in real estate. Even though this will take decades, the objective of this paper is to emphasize that for the rental housing market this evolution should start now. / by Anuar Perez. / S.M. in Real Estate Development

Thesis (S.M.)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate , 2009. / This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections. / Cataloged from student submitted PDF version of thesis. / Includes bibliographical references (p. 88-89). / This paper examines REMIC regulations and Pooling and Servicing Agreements in an effort to ascertain if either the REMIC regulations or standard Pooling and Servicing Agreements are unnecessarily restrictive in the context of maximizing the profitability and minimizing losses associated with CMBS workouts, with particular attention given to the current real estate climate. The paper begins with a brief history of REMICs and moves on to an examination of the statutory requirements governing the creation and maintenance of REMIC status. Next, an examination of standard Pooling and Servicing Agreements is performed followed by attempts to identify weaknesses in REMIC regulations, which are illustrated by hypothetical examples. Potential modifications to REMIC regulations are divided into two categories: Preemptive Default and Actual Default. The paper concludes that, excepting for the discretionary short term allowance of balloon payment extensions, preemptive default modifications are unwarranted and impractical. However, the author also draws the conclusion that improvements to PSA?s might be met through better integration of master and special servicers in certain scenarios and that REMIC regulations might be improved by allowing for certain material changes to collateral as well as carve outs in default scenarios as well as short run stop gap measures including REO Debt lending and an increase to the allowable length of the REO hold period. / by William Casey Wells. / S.M.

Thesis (S.M. in Real Estate Development)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate, 2013. / This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections. / Cataloged from student-submitted PDF version of thesis. / Includes bibliographical references (pages 50-53). / In 2009 the American Society of Civil Engineers (ASCE) gave the US infrastructure sector a grade D, based on the current and future needs of the nation's infrastructure and estimates that by year 2020, the US surface transportation deficit will reach $846 billion. Furthermore, in 2013 the US Congressional Budget Office estimates that the main source of highway funding, the Highway Trust Fund, will have insufficient capital to meet its shortfalls by 2015. As defined by the ASCE, infrastructure is the physical framework upon which an economy operates. Without immediate improvement and alternative solutions to fund the crumbling roadway network, the US will continue to struggle to find its way to economic prosperity. This thesis aims to give an overview of how private participation can play an integral role in revamping the US highway network and will outline several of the most important aspects of structuring a successful highway public-private partnership (PPP). Throughout the thesis, PPP is referred to as a long-term contractual agreement between a private entity and a public sponsor to construct and maintain an infrastructure asset. PPP is a complex and potentially dangerous partnership as it can inadvertently put the public at risk; however, it has also proven to be a very successful tool in many countries around the world. By examining the US highway sector and the history of transportation PPP's, this thesis analyzes failed and successful cases, as well as study partnership frameworks implemented in other countries. With this, the thesis attempts to educate stakeholders and spread awareness of how to identify and effectively allocate risks associated with PPP's. If structured and executed appropriately, PPP's will help the stakeholders in highway privatizations reach each of their respective goals and can help rebuild a sustainable highway network throughout the US. / by Ryan Butler and Eunil Lee. / S.M.in Real Estate Development

Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2015. / Cataloged from PDF version of thesis. / Includes bibliographical references (page 54). / How do the various categories of operating expenses for institutional grade office buildings vary with changes in rental income and occupancy? The general consensus held is that, following the linear relationship that exists between variable expenses, occupancy and income; a change in either occupancy or income would result in a change in variable expenses. The question is by how much and in what direction? This thesis contributes to answering that question by exploring how tax, utility, insurance and maintenance expenses for office properties, across key markets in the United States, vary with rental income and occupancy level changes. To achieve this, time-series data on income and expense data for office properties from Q1 2000 to Q4 2014 was analyzed using two panel regressions. One with fixed effects for buildings to exclude all idiosyncratic characteristics of properties and another with fixed effects for time that captured the building differences. The analysis shows that the elasticities of these expenses to changes in income and occupancy vary across expense type and also across geographic location. Additionally, in majority of the cases, these elasticities were statistically significant. / by Peter K. Owusu-Opoku. / S.M. in Real Estate Development

Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2018. / Cataloged from PDF version of thesis. / Includes bibliographical references (pages 89-94). / For decades, construction productivity has been lagging behind the sectors of manufacturing, agriculture and many more, causing many problems to society. Importantly, productivity stagnation can generate housing crises by limiting the supply of additional structures, and prevents public authorities from developing their needed infrastructure. In this thesis, I assess the causes for such stagnation and provide a strategy to foster innovation. My analysis finds that the causes of stagnation stem from a lack of competitiveness that arises from a scarcity of long-term relationships with clients, information asymmetry across stakeholders, poor owner and design specifications. Combined, these issues disincentive innovation, as tendering processes do not focus on suppliers' productivity from efficiency gains or ingenuity in processes. In addition, built product size, complexity and uniqueness, as well as building codes inconsistency, all prevent the industrialization of the industry. My strategy to improve productivity is multifold. The first prerequisite to improving the situation requires promotion of collaborative risk sharing delivery methods, adoption of digitized communication tools and supply chain management. A second prerequisite is a mindset switch towards built products configurability, upgradability and easy disassembly, which will minimize waste, unsustainability and brownfield project issues. Once those prerequisites are reached, then our short- and long-term goals for innovation could be realized. Over the short term, transparency and true cost tendering will promote the industry with competitiveness and subsequent consolidation/integration that are necessary for productivity improvements. Over the longterm, the creation of a production-driven system will allow the industrialization of the industry, with standardization and repetitive manufacturing fostering continuous improvement. With such a rise of disruptive and innovative technologies, there will be a flow of at first efficiency gains and, potentially, in the long-run, productivity gains that meet the standards of the ever changing built environment. / by Nicolas Victor Joseph Gaspard Bolland. / S.M. in Real Estate Development

Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2017. / Cataloged from PDF version of thesis. / Includes bibliographical references (pages 47-52). / I was raised in a formerly-communist country, where small apartments were mainly built to house working class families. People did not have many options and had to take whatever housing the state assigned to them. Most of those families remained in these assigned small units for the rest of their lives, many of which were growing families of 4 and more. With this unique personal perspective, I felt as if small units were the legacy of a past and archaic system. It appeared to me that in an economy where people have a choice, such type of housing would not be a very viable solution. However, to my surprise, the recent developments in major housing markets proved to me that I was wrong in my initial judgment. It sparked my interest to further research micro-unit housing market in gateway cities, the reasons and trends that influenced its growth in such cities as San Francisco and Los Angeles. / by Marine Potikyan. / S.M. in Real Estate Development

Thesis (S.M. in Real Estate Development)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate , 2010. / Cataloged from PDF version of thesis. / Includes bibliographical references (p. 79-81). / Success in frontier markets could mean high returns for real estate developers and investors. In order to succeed, companies must determine how to provide their products or services in an environment that may not necessarily adhere to familiar institutional, legal or even ethical norms. Strategists may never feel informed enough to make educated decisions because there is not enough data to populate sophisticated financial models. However investors and multinationals have a growing desire to gain exposure to underdeveloped markets. This leaves managers with the challenge of evaluating frontier investment markets and navigating risky foreign business environments. This thesis attempts to answer the following question: to what extent can a researcher establish a viable framework to strategically plan for and operate in frontier market built environments? To answer this question, this thesis shall first address the nature of "frontier markets," then proposes a framework for entrepreneurs or multinationals intending to penetrate a frontier market's built environment through either direct investing or real estate development. The framework is a qualitative model, a compilation of analysis tools used by scholars, economists, political scientists, and investors working with and in emerging markets. The framework assesses markets on a broader, strategic echelon as well as an operational business management level. Lastly, we populate the framework with current information from Iraq, one of the most challenging and interesting frontier markets in the world today. The conclusion assesses the utility of the framework by highlighting information voids as well as potential business opportunities. The conclusion articulates that frontier market analysis will never be as valid as analysis of the developed markets because frontier markets are inefficient and information is difficult to ascertain, thus satisfying the definition of "frontier market". The analysis framework will not yield empirical findings like accurate forecasts of NPV, PV, IRR, etc. It will return, qualitatively, institutional voids in potential business opportunities. Keywords: frontier markets, Iraq, real estate. / by Steven C. Watkins, Jr. / S.M.in Real Estate Development

Thesis (S.M. in Real Estate Development)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate, 2011. / This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections. / "September 2011." Cataloged from student-submitted PDF version of thesis. / Includes bibliographical references (p. 51-52). / This thesis provides an empirical analysis of the determinants of foreign direct investment in commercial real estate (FDIRE) in the U.S. We examine the major factors that affect levels of FDIRE in the U.S. and foreign investors' location preferences. First, using panel data from 2002 to 2006, this research develops a model to test the importance of GDP, GDP growth, national investment level, exchange rate, and interest rate in determining levels of FDIRE in the U.S. from major developed countries. Results of the study suggest that economic growth of a country unexpectedly encourages domestic investment rather than foreign investment, and depreciation of currency value of the host country attracts more FDIRE. Second, the study analyzes the spatial distribution of FDIRE at the state level for the time period 1999 to 2007. A set of location determinants is selected to explain the pattern of FDIRE. These determinants include size of population, personal income, commercial real estate vacancy rate, commercial real estate completion rate, population growth, and personal income growth. Results of the study suggest that foreign investors prefer larger and wealthier states for direct commercial real estate investment. There is also evidence showing that foreign investors begin to diversify toward less populous and less wealthy states. / by Min Liang and Sunghoon Yoon. / S.M.in Real Estate Development

Thesis (M. Arch.)--Massachusetts Institute of Technology, Dept. of Architecture; and, (S.M. in Real Estate Development)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate, 2012. / Page 143 blank. Cataloged from PDF version of thesis. / Includes bibliographical references (p. 135-137). / Inspired by Singapore's recent effort in building its new skyline in Maria Bay, the thesis intends to employ econometric structural modeling techniques to Singapore's office market for the period from 1975 to 2011. Using data collected from Singapore's Urban Redevelopment Authority, the regression models established by rent, demand and supply equations, dissect the market behavior and project an understanding of the underlying correlation and market mechanism. With which, the thesis forecasts for the next 10 years, in quarterly interval, the movement trajectory of Singapore's office market. Living and working as activities in this current milieu where role play in the system of power are essential to success was problematized; In the era when social and financial "cloud participation" has given rise to ebay, Facebook, Twitter and Wikipedia, what does work, live and play mean in this current environment where indulgence and consumption for its very own sake is very much part of the cultural lifestyle. Where is Architect in this financial time? In as much as it is about providing plausible answers, this thesis challenges the existing power system in the Real Estate industry, instead of taking dweller's spatial appropriation as guerrilla activities, the thesis proposes ways that channels private equity "financial cloud participation" into system of value production. Architectural proposition therefore works in way which turns these underlying power struggle scenarios into formal expression. / by Aoran Alex Sun. / S.M.in Real Estate Development / M.Arch.

Thesis (S.M. in Real Estate Development)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate, 2013. / This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections. / Cataloged from student-submitted PDF version of thesis. / Includes bibliographical references (pages 91-94). / The Low Income Housing Tax Credit (LIHTC) program is one of the most successful government subsidy programs for the creation of affordable housing in the history of the United States. Over its 27 year existence, more than two million affordable apartments have been developed or rehabilitated using private equity financing through the sale of federal tax credits. Over the past 12 years the industry has digested the first wave of transactions getting to the end of the 15 year Initial Compliance Period. This is the point at which the Investor Limited Partner (ILP) is able to exit the transaction without tax credit recapture risk with the IRS. There is often a recapitalization event that accompanies the exit, but many times there is not. Since the secondary market for both LP and GP interests both during and after the compliance period is relatively illiquid, it is difficult to discern the fair market value of such an asset. This is further complicated by the unique and multi-layered financing structures common in these transactions and the additional 15-year Extended Use Period requiring the property to remain as affordable housing, in many cases beyond its useful life. This study will use limited partner transaction disposition data provided by a national tax credit syndicator to create a hedonic pricing model to determine the factors that drive valuation at disposition. Using the sample of 223 observations, the characteristics of which closely resemble the population of dispositions industry wide, the resultant hedonic model suggests that a partnership's original total development cost, net operating income (NOI) at disposition, cash or reserve balances on hand at disposition, the strength of the rental market and whether affordability requirements are expiring are the driving forces behind valuation of ILP interests at Year 15. As expected, some common factors that drive valuation in conventionally financed multi-family real estate transactions, including transaction size and regional location, have little predictive impact on valuation as determined by the model. The results of the analysis are contained within, along with the policy implications and some suggested programmatic reforms that could help to enhance the value of LIHTC properties at Year 15 and thus increase the likelihood of long-term financial health and ultimate preservation as Affordable Housing. / by Jakob B. von Trapp. / S.M.in Real Estate Development