04/22/08

Lecture:

1. Construction, completion and formal opening
   
   1. Construction
      
      1. Coordination
         
      2. Collaboration
         
      3. Supervision - on-site management
         
   2. Project manager
      
      1. An architect
         
      2. In-house construction professional
         
      3. In-house engineer
         
      4. A person experienced in the type of project
         
   3. Marketing manager
      
      1. Marketing - on going activity
         
      2. Feedback to the development team
         
   4. Financial officer
      
      1. Manages the project budget
         
      2. Pays the bills
         
      3. Ensure compliance with plan's economic performance
         
      4. Liason with construction and permanent lender
         
   5. Property manager
      
      1. Long-term manageability
         
      2. Design issues
         
      3. Tenant concerns - service levels
         
      4. Record keeping procedures
         
      5. Warranties
         
   6. Building the structure
      
      1. Developer
         
      2. Architect
         
      3. Contractor
         
      4. Subcontractors
         
      5. Inspectors
         
   7. Drawing down the construction loan
      
      1. 5 to 10% retention
         
      2. Subcontractors submit invoices for work completed (1 week to 1 month)
         
      3. Contractor compiles and reviews and sends to the developer
         
      4. Architect or project manager verifies
         
      5. Invoice sent to financial officer who compiles added costs and submits to the construction lender
         
   8. Construction loan risk control
      
      1. Funds dispersed through title companies
         
      2. Subcontractors exchange lien waivers for draw checks
         
      3. Mechanic liens
         
         1. Subcontractor can take property and sell if they are not paid.
            
   9. Building out tenant space
      
      1. Leasing reserve
         
      2. Floor and ceiling loan amounts
         
   10. Completion and formal opening
       
       1. Training the operations staff
          
       2. Connecting the utilities
          
       3. Beginning on site operations
          
       4. Final marketing
          
       5. Grand opening
          
       6. Tenants move in
          
       7. Transition in financing - construction to permanent loan
          
   11. Risk control
       
       1. Retainage and performance bonds
          
       2. Union relations
          
          1. San antonio is non-union
             
       3. Architectural supervision and project management
          
       4. Insurance coverage
          
       5. PERT and CPM
          
       6. Net leases, expense stops, escalations
          
   12. Definitions
       
       1. Property management - day to day operation of the asset
          
       2. Asset management - several different properties with different managers
          
   13. The enterprise concept
       
       1. Real estate as a living breathing business
          
       2. Need to redefine and defend market position
          
       3. Market is ongoing
          
       4. Seek new niches in the marketplace
          
   14. Graaskamp's real estate feasibility process
       
       1. What is the it that we are doing?
          
       2. For whom are we doing it?
          
       3. To whom are we doing it?
          
       4. Will it fly?
          
   15. The real estate management triad
       
       1. Property manager
          
       2. Asset manager
          
       3. Portfolio manager
          
   16. Property manager
       
       1. Tenant relations and retention
          
       2. Rent collection
          
       3. Control of operating expense
          
          1. PM can raise the rent
             
          2. Replace systems with more efficient systems (HVAC)
             
       4. Financial reporting and record keeping
          
       5. Maintenance of property
          
       6. Planning capital expenditures
          
          1. Improvements to grounds common areas
             
       7. Crisis management
          
   17. Asset manager
       
       1. Develops property strategic plan
          
       2. Hold/sale analysis
          
          1. Review of when to sell or keep the property using the return on equity equation or condition of the property
             
       3. Reviews opportunities
          
       4. Monitors property performance
          
       5. Manages and evaluates the property manager
          
       6. Assists in tenant relations
          
   18. Portfolio manager
       
       1. Communicates with investors and sets portfolio goals and investment criteria
          
       2. Defines and implements portfolio investment strategy
          
       3. Oversees acquisitions, dispositions
          
       4. Accountable for portfolio performance
          
       5. Client reporting and cash management
          
   19. From property development to property management
       
       1. Development period - 1 year +
          
       2. Stabilization - project physically complete and has obtained fair share of market
          
       3. Developers profit - difference between the developers total cost and market value of the property at the end of the development period
          
   20. Handing off to asset management
       
       1. Transfer package
          
       2. Description of the status of the project at transfer
          
       3. Comparative analysis of actuaal results versus pro forma
          
       4. Value of the project
          
       5. Calculate profit
          
   21. Property strategic planning process
       
       1. Property life cycle
          
   22. Define and analyzie property problems and opportunities
       
       1. Review major decision points
          
          1. Hold or sell
             
          2. Rehabilitate
             
          3. Change the use of the building
             
          4. Change the tenant mix
             
       2. Implement the plan
          
   23. The americans with disabilities act 1990
       
       1. Provide persons with disabilities with access equal to, or similar to, that available to the general public
          
   24. The americans with disabilities act july 26, 1990
       
       1. Provide clear and comprehensive national mandate to end discrimination against individuals with disabilities
          
   25. Marketing and sales
       
   26. Marketing plan and budget
       
       1. Marketing plan
          
       2. Develop a list of specific activities and assign costs
          
       3. Total and refine
          
       4. 2nd method
          
       5. How much
          
          1. 6 -7% generally
             
   27. Targeted advertising
       
       1. Where are potential prospects located?
          
   28. Public relations
       
   29. Merchandising the product
       

        
        

    
    

Notes: