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 54-55). / This thesis studies the application of securitization such as Project Finance Asset-Backed Securities (PF ABS) and Mortgage Backed Securities (MBS) as a method of real estate finance in Korea. Real estate in Korea has developed substantially with a remarkable economic growth in last 20 years. As real estate became one of the most popular investment methods, real estate finance also developed into a more diversified and complex structure. Real estate securitization provides an alternative to the traditional way of financing by liquidating the real estate related assets and makes access easier for all participants in the process. In Korea, real estate securitization was first adopted in 1999, with the initiation of the Asset Securitization Act. Though the concept of Asset-Backed Securities (ABS) started late compared to the global securitization industry, the Korean ABS market has grown so substantially that the total issuance amount reached $43 billion in 2019, having expanded by almost eight-fold from the beginning of the market in 1999. With a considerable progress in the market, some of securitization products have developed with distinctive features. Of many products, this thesis mainly studies two types of real estate securitization products, Project Finance Asset-backed Securities (PF ABS) and Mortgage-backed Securities (MBS). By going through the market trends and social context of both products, it will cover what can be suggested for further improvement of the real estate finance market in Korea / by Jee hee Baek. / 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 39-40). / Recently the South Korean government announced its comprehensive measure to revitalize the indirect real estate investment market, especially to expand the public offering market to be ten times larger than its current state. The measure can be interpreted as a change of state in the Korean real estate market and an acknowledgment of its need for the vital role of indirect real estate investments. As a low-interest environment continues and the amount of floating money increases, real estate speculation has never been more of an issue, which cannot be solved without changing the investment paradigm. Vitalization of the indirect real estate market can provide individuals alternative ways to invest their money in real estate and redistribute profits generated from real estate investments that are currently driven by few institutional investors. This thesis aims to study the overall indirect real estate investment market in Korea focused on two main vehicles, Real Estate Investment Trusts and Real Estate Funds. The two vehicles will be studied in depth on their history, current market status, behaviors and characteristics to analyze their roles in the market. Analysis will be done on indirect real estate investment vehicles in comparable countries to take away lessons learned and find areas for possible market improvements. Data will be collected from various literatures, journals, statistics from fund assessment companies and investment associations to attempt to find inefficiencies that can be improved in the market. / by Cho Hae Park. / 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 88-94). / Permitting and executing large scale real estate developments in Boston, Massachusetts is difficult. The process is time and capital intensive due to the nature of an outdated zoning code that exists to induce project-by-project negotiation with the central permitting authority, the Boston Planning and Development Agency ("BPDA"). Critics of the BPDA and Boston's zoning system contend that the city's zoning practices favor developers and investors at the expense of thoughtful neighborhood building and public benefits. In light of this argument, this paper analyzes the public benefits secured by the city at Seaport Square and compares them against the estimated public benefits produced by the highly prescriptive zoning code of Seattle, Washington. The analysis begins with a general comparison of prescriptive versus negotiated zoning frameworks before more specifically comparing the respective systems in Seattle (highly prescriptive) and Boston (highly negotiated). It then provides a narrative overview of the Seaport Square zoning and permitting process to date to provide context around the public-private negotiation, itemize public benefits secured, and illustrate the mechanics of how those benefits are delivered. After evaluating the actual public benefits generated in Boston, the application of zoning regulations of an analogous neighborhood in Seattle is used to estimate public benefit outputs of Seaport Square under a legislatively prescribed zoning environment. Finally, it assesses common arguments against Boston's current zoning framework and discusses potential implications of a shift toward a more predictable, prescriptive system. / by Patrick Downey. / 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 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

In today’s world, architects are facing a problem of diminished control over the built environment. Across the industry, architects are forfeiting influence to developers, contractors, and lawyers due to increased concerns about innumerable risks. Architecture, for the most part, is dependent on other professions to create opportunities, and thus is not directly responsible for positive change. For architecture to accrue influence on how our built environment evolves into the future, it must understand and take a larger role within the real estate development process. The problem this thesis presents is that the position of architecture within this economics dominated power structure limits architects’ agency to affect a property’s use or influence its future use. The research delves into the standard development model, the real estate development process, design and construction, and operations of real estate practices in order to identify opportunities for architecture to engage in and enhance the process. This thesis proposes to understand a development process in Northampton, Massachusetts. It will illustrate that the opportunities and advantages of architect practicing as a developer to design and execute projects in the real world. Thus, for the research to be implemented through design, the chosen site includes several opportunities for a socially focused mixed-use development which responds well with the site and the surrounding context of Northampton.

Architectural space is a manifestation of human memory and experiences. It is a physical indicator of time and history, and it provides a canvas for us to imagine the future. Architecture anchors people in a moment in time and space, while also embodying the past and implying a future. It is not just a monument to time, but what has happened during that time; a collection of past human experiences and what will yet happen. Architecture is the manifestation of our stories, our lives. The more visually present these stories are in architecture, the richer the canvas, and the more readily it can be identified as Place. The slow and inevitable sinking of Venice, the interweaving of modern and ancient buildings of Rome, and the careful preservation of Machu Pichu. These places reach through time. We can imagine what it looked like in the past and dream of how it will change in the future. Place implies both continuity and change. New real estate developments are often associated with drastic and sudden change that often erases the history of a place and that rich linkage of accumulated markers of experiences and time. Many developers also seek to reduce the total cost of a project to increase profit margins by using cheaper, quicker construction. Most new buildings have an average lifespan of thirty years, and so the rate of change and renewal is quite high. While change is necessary and inevitable, the economic motivations of development make it more difficult to incorporate past memories and allow for future adaptations. These quick, nullifying changes come together to erode Place and create cold, bland, monotonous developments. This thesis proposes looking to narrative as a vehicle for understanding how Place comes to be. Approaching architecture as a narrative allows a designer to break down the system to better understand the components, and subsequently the whole. By using narrative, and the elements of narrative: Characters, Setting and Plot to shift the understanding of architectures role in the experience of the built world and how to develop real estate to create, or renew, the sense of Place in the modern built world.

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