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Active Private Equity Real Estate Strategy. Frank J. Fabozzi Series

  • ID: 1081072
  • Book
  • September 2009
  • 304 Pages
  • John Wiley and Sons Ltd
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With the dramatic downturn in today′s U.S. real estate market, individual and institutional real estate investors need a resource for meeting the challenges that lie ahead and seizing opportunities as they arise.

Written by David Lynn with expert contributions from ING Clarion colleagues Tim Wang, Matson Holbrook, Bohdy Hedgcock, Jeff Organisciak, Alison Sauer, and Yusheng Hao, Active Private Equity Real Estate Strategy offers a collection of abridged market analyses, forecasts, and strategy papers developed in 2007 and 2008 from the ING Clarion Partners′ Research & Investment Strategy (RIS) Group.

This practical resource is divided into two comprehensive parts. Part One offers an overview of real estate markets, forecasts, and trends. Here you will find a summary of the national and major urban area markets and an analysis of each of the major real estate property types. In addition, this section contains illustrative examples of market analysis and forecasting that may set the stage for more detailed strategy development later on. The analysis also includes an early simulation of the potential effects of a recession on the commercial real estate industry.

Part Two presents examples of specific active strategies in private equity real estate investing. Each of these studies was developed to illustrate how an institutional investment manager may identify and analyze real estate investment opportunities under certain market conditions. The studies highlight key areas including multifamily, hotel, land, and industrial investment, and three niche plays: derivatives, senior housing, and infrastructure. The book also includes an example of the application of Modern Portfolio Theory to a hypothetical core real estate portfolio.

Active Private Equity Real Estate Strategy is an informative guide to the development of private equity investment strategies.

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Preface ix

Disclaimer xiii

Acknowledgments xv

About the Authors xvii

PART ONE Market Analysis and Forecasts 1

CHAPTER 1 Overview of the U.S. Real Estate Market 3
Tim Wang and David Lynn

CHAPTER 2 Forecasting the U.S. Market 19
David Lynn

CHAPTER 3 Recession Simulation and Its Effects on Real Estate 25
Tim Wang, Alison Sauer, and David Lynn

CHAPTER 4 Subprime Fallout: The Impact on Commercial Real Estate 41
Tim Wang and David Lynn

CHAPTER 5 Capital Markets: Dramatic Shifts and Opportunities 47
David Lynn and Tim Wang

CHAPTER 6 The Bid–Ask Problem and Game Theory 53
Jeff Organisciak, Tim Wang, and David Lynn

PART TWO Active Strategies 67

CHAPTER 7 Residential Land Investment 69
Bohdy Hedgcock and David Lynn

CHAPTER 8 The U.S. Hotel Market and Strategy 103
Tim Wang, Matson Holbrook, and David Lynn

CHAPTER 9 Global Gateway Industrial Market Investment 125
Bohdy Hedgcock and David Lynn

CHAPTER 10 The Opportunity in Senior Housing 159
Tim Wang and David Lynn

CHAPTER 11 Active Portfolio Management Using Modern Portfolio Theory 187
David Lynn and Yusheng Hao

CHAPTER 12 Derivatives in Private Equity Real Estate 217
Jeff Organisciak, Tim Wang, and David Lynn

CHAPTER 13 Opportunities in Infrastructure Investment 239
David Lynn and Matson Holbrook

APPENDIX A Typical Land Development Pro Forma Analysis Three Scenarios 247

APPENDIX B U.S. Hotel Chain Scales 253

APPENDIX C Modern Portfolio Theory in Real Estate Portfolio Analytics 257

APPENDIX D Commercial Real Estate Indexes 259

APPENDIX E Example NPI Forecast Methodology 263

Selected Bibliography 265

Index 267

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David J. Lynn
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