annual partners meeting - center for real estate · 2013-06-14 · nership and teaching affiliate...

Leveraging Science. Developing Innovation.

PartnersMeetingAPRIL 4-5, 2013

Annual

2013 MIT REAL ESTATE FO

RUM

2 2013 MIT REAL ESTATE FORUM

MIT founded the Center for Real Estate in 1983 to improve the quality of the built environment and to promote more informed professional practice in the global real estate industry.

Educating the men and women whose innovations will serve the industry worldwide, we are home to the first-ever one year Master of Science in Real Estate Development (MSRED) degree, as well as an integrated suite of professional development courses.

Our pioneering research investigates the real estate transaction from initial concept to market reality, providing breakthrough knowledge that helps organizations to capitalize on today’s dynamic markets and technologies.

Uniting industry leaders with MIT’s distinguished researchers and students, our selective industry partnership program advances the art and science of international real estate, and bridges the gap between theory and practice.

Dennis Yeskey is the 7th Thomas G. Eastman Chair of the MIT Center for Real Estate. As Chairperson, Dennis will lend his leadership and extensive network to promote the Center’s mission nationally and internationally. He will also work closely with the Center’s Industry Partners to enhance and reshape the value we bring to our Partners, as well as expand our membership base. As a proven practice builder, Dennis will provide strategic oversight for new initiatives—such as Alumni Part-nership and Teaching Affiliate programs—as well as for the Center’s existing Pro-fessional Development Insititue.

As a National Partner of Deloitte, Dennis represented many of the leading real estate investors and develop-ers, both across the U.S. and globally. In 1995, he was recruited by Deloitte’s Chairman to head the New York Office’s Real Estate Services Profit Center and was responsible for the restructuring and developing Real Estate into one of the leading Practices in this arena. In 2000, he was promoted to Group Managing Partner of Deloitte’s Real Estate, Investment Management, Private Equity and Insurance based Practices in the New York Office. As part of this position, Dennis directed the Firm’s Financial Services marketing and eminence building activities. In addition, he played a key real estate leadership role for Deloitte’s National and Global Financial Services and was extremely active in the European and Asian Practices, having both lived and worked in these regions.

Prior to Deloitte, from 1986 to 1995, Dennis developed and led a successful real estate practice as a partner at Kenneth Leventhal & Company, the premier real estate restructuring firm in the United States at the time. He began his career at A.T. Kearney and PricewaterhouseCoopers, where he specialized in business strategy and operational assignments across the USA, as well as in Europe and Japan. Previously, he worked at two engineering firms that specialized in solving difficult design and construction issues.

Dennis holds an MBA in finance from Columbia University. He also holds both bachelors and master’s de-grees in civil engineering from the University of Pittsburgh’s Swanson School of Engineering, where he was presented the Distinguished Alumni Award in 2007. He is an active member of The Real Estate Roundtable and the Urban Land Institute, for which he became ULI Foundation Governor in 2008. As a published author, Dennis is also a frequent speaker and contributor for industry-leading forums and organizations throughout the U.S. and Europe. They include IMN, RealShare, AFIRE, IRETO, CPN and Cityscape.

MISSION

Dennis P. Yeskey, Thomas G. Eastman Chair, MIT Center for Real Estate

MIT Center For Real Estate

3ANNUAL PARTNERS MEETING, April 4-5, 2013

12:05 pm - 12:15 pm Arrive at E60-112

12:30 pm - 1:45 pm Luncheon Presentation by Professor Bill Wheaton “How the U.S. Economy Can Grow: Headwinds and Tailwinds”

1:45 pm - 2:00 pm Q & A

2:00 pm - 2:30 pm Break

2:30 pm - 3:30 pm Presentation by Dr. Walter Torous

“Mistakes in Housing Consumer Finance: What, Who and Why?”

3:30 pm - 3:45 pm Walk to Media Lab - E14 (Meet Christina Williams in the Lobby under the Wheels & Legs display) 3:45 pm – 4:30 pm Tours

City Science (Kent Larson’s Group)

How new strategies for architectural design, mobility systems, and networked intelligence can make possible dynamic, evolving places that respond to the complexities of life.

Mediated Matter (Neri Oxman’s Group)

How digital and fabrication technologies mediate between matter and environment to radically transform the design and construction of objects, buildings, and systems.

4:30 pm – 4:15 pm Walk to Center for Real Estate – 9-343

AGENDAAnnual Partners Meeting

THURSDAY, APRIL 4TH

4:45 pm - 5:15 pm SENSEable City Laboratory Presentation – 9-343

Presentation by Associate Professor, Carlo Ratti Director, SENSEable City Lab and Anthony Vanky

An architect and engineer by training, Carlo Ratti practices in Italy and teaches at the Massachusetts Institute of Technology, where he directs the SENSEable City Lab. He graduated from the Politecnico di Torino and the École Nationale des Ponts et Chaussées in Paris, and later earned his MPhil and PhD at the University of Cambridge, UK. Ratti has co-authored over 200 publications and holds several patents. His work has been exhibited worldwide at venues such as the Venice Biennale, the Design Museum Barcelona, the Science Museum in London, GAFTA in San Francisco and The Museum of Modern Art in New York. His Digital Water Pavilion at the 2008 World Expo was hailed by Time Magazine as one of the Best Inventions of the Year. He has been included in Esquire Magazine’s Best and Brightest list, in Blueprint Magazine’s 25 People who will Change the World of Design and in Forbes Magazine’s People you need to know in 2011. Ratti was a presenter at TED 2011 and is serving as a member of the World Economic Forum Global Agenda Council for Urban Management. He is a regular contributor to the architecture magazine Domus and the Italian newspaper Il Sole 24 Ore. He has also written as an op-ed contributor for BBC, La Stampa, Scientific American and The New York Times.

The SENSEable City Laboratory’s research focuses on studying and predicting how digital technology is changing the way we describe, design, and occupy cities.

5:15 pm Transportation to Prudential Skywalk (Bus will depart from 105 Mass Ave) 5:30 pm - 7:00 pm Reception - Skywalk @ Prudential Center

7:00 pm - 9:30 pm Dinner - Skywalk @ Prudential Center

Keynote Speaker Professor Albert Saiz, Daniel Rose Professor of Urban Economics and Real Estate

“Economics of Aesthetic Value” Can we measure architectural beauty? Professor Saiz will present results from

his ongoing research that exploits user-generated content – photos shared by tens of thousands of individuals at Google Maps® – to explore preferences for architecture, and how that affects consumer behavior. Saiz has done path-breaking work on the determinants of housing supply and the impact of immigrant inflows on housing prices in urban areas. His work-in-progress valuing urban amenities and building design promises to open broad areas of collaboration between economists, urban designers and urban developers.


THURSDAY, APRIL 4TH


@ Wong Auditorium Located in the Tang Center - Building E51, Corner of Wadsworth St. & Amherst St.

Our Partners will join our esteemed Alumni’s Annual Real Estate Forum. We have scheduled a presentation, for our Partners only, between 10:15 am and 11:00 am. After the presentation, we will rejoin the Forum to hear Professor Geltner, of the Center for Real Estate, discuss new concepts for evaluating the fairness of waterfall splits and how these financial incentives motivate each party. See below for schedule.

7:30 am - 8:30 am Networking Breakfast

8:30 am - 9:30 am Building the World’s Tallest Skyscraper in 7 months The Broad Group has announced ambitious plans to build the world’s tallest building,

Sky City I, in 7 months. Located in Changsa, China and standing at 2,749 feet tall, this marvel of engineering and construction will house offices, residences, schools and a hospital. Nearing final approval with local officials, Broad Group plans to break ground on Sky City I in the first half of 2013. Broad Group USA’s General Manager, Mr. Sunny Wang will describe the proprietary methods and technologies that have already allowed Broad to complete a 30-story tower in only 15 days.

Q&A Moderated by Professor Chris Gordon, MIT Center for Real Estate

9:30 am – 10:00 am Break

10:00 am Walk to E62-221 for Professor Prinn’s presentation

10:15 am - 11:00 am Presentation by Ronald Prinn, TEPCO Professor of Atmospheric Science Department of Earth, Atmospheric and Planetary Sciences (EAPS) Director, Center for Global Change Science (CGCS) Co-Director, Joint Program on the Science and Policy of Global Change

“Climate Change: Its Potential Impact on Major Cities” The research interests of Ron Prinn, a faculty member at MIT since 1971, incorporate

the chemistry, dynamics and physics of the atmospheres of the Earth and other planets, and the chemical evolution of atmospheres. Current projects involve atmospheric chemistry and biogeochemistry, climate science, and integrated assessment of science and policy regarding climate change. He leads the AGAGE network that measures rates of changes of the concentrations of trace gases involved in the greenhouse effect and ozone depletion. He has pioneered the use of inverse methods using AGAGE measurements and 3D models to determine trace gas emissions and understand atmospheric chemical processes. He works with social scientists to link the science, economics, and policy aspects of global change. Prinn has co-developed a model which couples economics, climate dynamics, and land and ocean ecosystems to estimate uncertainties in climate predictions.


FRIDAY, APRIL 5TH


11:00 am - 11:20 pm Walk back to Wong Auditorium

11:20 am - 12:30 pm What is Fair in Waterfall Return Splits?

Joint ventures between local real estate sponsors and institutional equity partners are the market standard in financing value-add and opportunistic real estate acquisition and development opportunities. A critical part of the joint venture agreement is the financial waterfall. Despite its common use, little market information is available on waterfall return splits between the local sponsor and institutional equity partners.

This informative panel will break down waterfall splits into two key discussion topics. First, the panel will discuss market norms for waterfall splits, using real deal examples from active market participants. Second, Professor David Geltner, of the MIT Center for Real Estate, will discuss new concepts for evaluating the fairness of waterfall splits and how these financial incentives motivate each party.

Panelists:

Chuck Burd, CIO – Bentall Kennedy Rob Gifford, President & CEO – AIG Global Real Estate Peter Spellios, Partner & SVP – Beal Companies LLP Casey R. Wold, Sr. Managing Director – Tishman Speyer Properties

12:30 am - 1:30 pm Lunch


FRIDAY, APRIL 5TH


1:00 pm - 1:45 pm Legal Lightning Round Right now, U.S. courts are considering major cases in real estate law that will

dramatically impact real estate investment and development. Join several of the foremost legal experts to preview developments in real estate law that will impact your business.

Legal Experts/Topics: Sally Michaels, of Saul Ewing and Andrew Pearlstein, of Seyfarth Shaw will discuss

recent, important changes in recourse loans and what you should know before entering into a construction loan.

Matt Kiefer, of Goulston Storrs and Susan Murphy, of Brennan Dain, will discuss a new ruling that will clarify the difference between an exaction and a regulatory taking in new development projects.

1:45 pm - 2:15 pm Presentation by Alexander Knapp, Director – Hines London

“The Value of Design and The Design of Value” Alexander will explore the effectiveness of design in creating economic value for

investors. Covering a range of material from ‘starchitects’ to neighborhood business improvement districts, from the Eiffel Tower to One World Trade Center, his talk will address how the intangible soft qualities of design influence the hard facts of financial performance. An alumnus of the MIT Center for Real Estate, Alexander is a former architect with Renzo Piano.

2:15 pm Meeting Adjourns


FRIDAY, APRIL 5TH


William (Bill) Wheaton holds a joint appointment in the Departments of Economics and Urban Studies and Planning. An authority on regional economics, Bill is a principal in a consulting firm that provides market analyses for development companies active in the market for commercial space.

He helped organize the MIT Center for Real Estate, and teaches the program’s core course in Real Estate Economics. Wheaton was the first economist to apply econometric methods to the forecasting of real estate markets.

A member of the MIT faculty since 1972, Bill helped to develop the field of urban economics by pioneering the theory of how land, location, and housing markets jointly operate. He also specializes in the problems of urban infrastructure and local government finance. He has written numerous articles in scholarly journals throughout the world, and is a co-author of Urban Economics and Real Estate Markets, the first text book to cover both real estate applications and economics.

Bill received a B.A. in Economics from Princeton University, and a Ph.D. from the University of Pennsylvania. Over the years he has worked with many US governmental agencies, as well as the World Bank and the United Nations.

Dr. Torous is a Senior Lecturer holding a joint appointment in the Center for Real Estate and the Sloan School of Management. As one of the nation’s top scholars and researchers in real estate finance, he teaches a graduate course in Mortgage Securitization and Other Assets.

Walter is the founding director of the Ziman Center for Real Estate, and Professor Emeritus, at UCLA Anderson. He taught managerial finance, real estate finance, and empirical methods in finance. Walter’s research interests include the pricing of financial instruments (options, future, risky debt, mortgages), the reorganization of financially distressed firms, as well as statistical issues in finance. He previously

taught at the University of Michigan and the London Business School. His consulting clients include various banks and financial institutions.

Walter holds a BMath. Economics from the University of Waterloo (1976) and a Ph.D. in Economics from the University of Pennsylvania (1981).

PRESENTERSFaculty

8

Professor William Wheaton

Walter Torous, Ph.D.

2013 MIT REAL ESTATE FORUM

An outstanding young urban/housing economist, Albert Saiz pursues research interests in local public finance, real estate economics and urban economic development, with an emphasis on immigration and immigrant location choices, and the impact of skills on earnings and city growth. He conducts research and teaches in both the urban planning and real estate programs. Albert also serves as Editor of the Journal of Housing Economics

Before joining MIT, he was an assistant professor in the MBA Core Program at The Wharton School at the University of Pennsylvania; a visiting scholar at the Federal Reserve Bank of Philadelphia; a research associate at the Penn Population

Studies Center; a faculty fellow at the Penn Institute for Urban Research; and a research fellow at the Institute for the Analysis of Labor (IZA – Bonn, Germany).

Albert holds a BA and an MA in economics from Universitat Autonoma de Barcelona (1995 and 1997, respectively) and a PhD in economics from Harvard, 2002.

David Geltner is the Chair of the MSRED Degree Program and the Director of Research for the MIT Center for Real Estate. He has a joint appointment in the Center for Real Estate and in the Department of Urban Studies & Planning (DUSP). David was awarded the prestigious James A. Graaskamp Award in 2011, which honors important research in the area of institutional investment in real estate.

Formerly the REEAC Professor of Real Estate in the College of Business Administration at the University of Cincinnati, David has been teaching graduate level real estate investments and finance since 1989. His research focuses on real estate investment performance measurement and the related areas

of asset valuation and private asset market functioning.

Geltner received his Ph.D. in 1989 from the Massachusetts Institute of Technology, in the Civil Engineering Department in the field of infrastructure finance and economics. He also has degrees in urban studies from Carnegie-Mellon University and the University of Michigan. David served a research appointment from 1998-2004 as a Visiting Professor in the Department of Land Management of the Faculty of Urban and Regional Science at the University of Reading (England). He was an Academic Fellow of the Urban Land Institute (2004-2007) and a Fellow of the Royal Institution of Chartered Surveyors, and is currently a Fellow at the Real Estate Research Institute and the Homer Hoyt Institute.

PRESENTERSFaculty

9

Professor Albert Saiz

Professor David Geltner

ANNUAL PARTNERS MEETING, April 4-5, 2013

Award for Architectural SpaceDesigned by UTILE, The Center for Real Estate headquarters received the Boston Society of Architect’s 2012 Interior Architecture/Interior Design Award.

MIT CENTER FOR REAL ESTATE77 Massachusetts Avenue, 9-343Cambridge, Massachusetts 02139-4307 617.253.4373mitcre.mit.edu

annual partners meeting - center for real estate · 2013-06-14 · nership and teaching affiliate...

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