Investment Analysis and Due Diligence

The focus of this course will be analysis and due diligence for potential acquisition or disposition (hold‐sell analysis) of properties, including expectations of investment committees and investment committee memo structures. Students will learn key factors used to develop proforma assumptions, and learn how to calculate the key measures of return and investment value used by institutional investors, including the impact of leverage. Factors that impact investment risk including the lease structure, type of financing and market conditions will be discussed, including additional risks associated with development projects.  An Excel spreadsheet proforma will be used to calculate risk measures, perform a sensitivity analysis, partition the IRR and perform a Monte Carlo simulation.