NYU Stern School of Business

Undergraduate College


Spring 2011

Instructor Details

Boudry, Walter



Open Door Policy

Tisch 4-24


Course Meetings

TR, 3:30pm to 4:45pm

KMC 4-60

Final Exam: take home



Course Description and Learning Goals

This course is designed to provide students with an indepth analysis of the real estate capital markets. A thorough understanding of the capital markets is required not only for those working in the field, but also for general real estate practioners who will find their decision making impacted by their ability to raise funds in the capital market. The course will cover five topics.


Credit Crunch and Real Estate– the recent down fall of the subprime market has impacted not only the mortgage markets, but also the real economy. This topic examines what went wrong and what effect it will have on the broader real estate market and economy going forward.


Commercial Mortgage Backed Securities and Debt Structures- CMBS are bonds that are issued backed by commercial mortgages. This topic will examine both the security structures employed in the industry and the characteristics of the commercial mortgages backing these securities. Combined together, these will allow students to assess the relative value of different tranches. We will also examine A/B note structures, mezz debt etc.


Real Estate Investment Trusts- since the early 1990s, REITs have become a popular vehicle for investing in real estate. This topic is designed to introduce students to REIT structures, valuation and analysis.


Real Estate Returns– the illiquid nature of real estate makes assessing performance problematic. This topic provides an overview of the methods used to calculate returns and the problems that these methods cause in calculating performance and benchmarking.


Real Estate Derivatives– in the last two years there has been a burgeoning interst in derivatives related to both residential and commercial real estate. This topic discusses the derivatives that exist and their potential use for speculation and hedging.


Course Pre-Requisites

Real estate capital markets are where real estate meets finance, so a knowledge of both is important in understanding the material for the course. Core finance and real estate knowledge is assumed. If a student is having trouble in a given area I will be happy to provide background readings.


Course Outline



Required Course Materials

There is no set text that covers all the topics in the course. I will use various texts and other reference materials throughout the semester. During each topic I will tell you what source, if any, I am using. Course material will be posted on Blackboard. If I forget to post something, please remind me.


The instructor assumes that students will read all materials assigned for each class, and any additional recommended readings.


Assessment Components

Mid Term 40%

Final Exam: 40%

Homeworks: 15%

Participation: 5%


As always, participation is based on quality not quantity, but remember there needs to be some quantity to judge quality. All assessment, apart from exams, can be done in groups of up to five.

Individual assessment is expected to be done on an individual basis. Students are free to discuss group homeworks among their group members.


Group Projects

Guidelines for Group Projects

Business activities involve group effort. Consequently, learning how to work effectively in a group is a critical part of your business education.

Every member is expected to carry an equal share of the group’s workload. As such, it is in your interest to be involved in all aspects of the project. Even if you divide the work rather than work on each piece together, you are still responsible for each part. The group project will be graded as a whole:   its different components will not be graded separately. Your exams may contain questions that are based on aspects of your group projects.

It is recommended that each group establish ground rules early in the process to facilitate your joint work including a problem-solving process for handling conflicts. In the infrequent case where you believe that a group member is not carrying out his or her fair share of work, you are urged not to permit problems to develop to a point where they become serious. If you cannot resolve conflicts internally after your best efforts, they should be brought to my attention and I will work with you to find a resolution.

You will be asked to complete a peer evaluation form to evaluate the contribution of each of your group members (including your own contribution) at the conclusion of each project. If there is consensus that a group member did not contribute a fair share of work to the project, I will consider this feedback during grading.



At NYU Stern we seek to teach challenging courses that allow students to demonstrate their mastery of the subject matter.  In general, students in undergraduate core courses can expect a grading distribution where: 

Note that while the School uses these ranges  as a guide, the actual distribution for this course and your own grade will depend upon how well  you actually perform in this course.



The process of assigning grades is intended to be one of unbiased evaluation. Students are encouraged to respect the integrity and authority of the professor’s grading system and are discouraged from pursuing arbitrary challenges to it.

If you believe an inadvertent error has been made in the grading of an individual assignment or in assessing an overall course grade, a request to have the grade re-evaluated may be submitted. You must submit such requests in writing to me within 7 days of receiving the grade, including a brief written statement of why you believe that an error in grading has been made.


Professional Responsibilities For This Course




In-class contribution is a significant part of your grade and an important part of our shared learning experience. Your active participation helps me to evaluate your overall performance.
You can excel in this area if you come to class on time and contribute to the course by:




Classroom Norms


Stern Policies

General Behavior
The School expects that students will conduct themselves with respect and professionalism toward faculty, students, and others present in class and will follow the rules laid down by the instructor for classroom behavior.  Students who fail to do so may be asked to leave the classroom. 


Collaboration on Graded Assignments
Students may not work together on graded assignment unless the instructor gives express permission. 


Course Evaluations
Course evaluations are important to us and to students who come after you.  Please complete them thoughtfully.


Academic Integrity

Integrity is critical to the learning process and to all that we do here at NYU Stern. As members of our community, all students agree to abide by the NYU Stern Student Code of Conduct, which includes a commitment to:

The entire Stern Student Code of Conduct applies to all students enrolled in Stern courses and can be found here:

Undergraduate College: http://www.stern.nyu.edu/uc/codeofconduct
Graduate Programs: http://w4.stern.nyu.edu/studentactivities/involved.cfm?doc_id=102505

To help ensure the integrity of our learning community, prose assignments you submit to Blackboard will be submitted to Turnitin.  Turnitin will compare your submission to a database of prior submissions to Turnitin, current and archived Web pages, periodicals, journals, and publications.  Additionally, your document will become part of the Turnitin database.


Recording of Classes

Your class may be recorded for educational purposes


Students with Disabilities

If you have a qualified disability and will require academic accommodation of any kind during this course, you must notify me at the beginning of the course and provide a letter from the Moses Center for Students with Disabilities (CSD, 998-4980, www.nyu.edu/csd) verifying your registration and outlining the accommodations they recommend.  If you will need to take an exam at the CSD, you must submit a completed Exam Accommodations Form to them at least one week prior to the scheduled exam time to be guaranteed accommodation.


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