Capital Stack
Recourse v Non-recourse loan?
recourse: take your house, take your car, take everything and anything you own until lender gets paid out
non-recourse: lender cannot touch any project besides the existing one
If cap rates go up, what happens to value?
Value goes down, because its being divided by a larger number
When was the group founded?
2018
This Texas metro continues to lead the U.S. in net in-migration and remains one of the most active multifamily development markets despite higher interest rates.
What is Austin?
What term describes the legally permitted use of land as defined by a city or county code?
zoning
What happens with risk as the return increases by 35.63%?
As the returns increase, so does the risk
incremental risk/return
Define a TI and give us an example
Tenant improvement
- paint
- new appliances
- etc.
Names of previous three presidents?
Emery, Kourosh, Miah
This coastal market remains the largest industrial real estate market in the U.S., driven by port activity, last-mile logistics, and tight infill supply.
What is Los Angeles?
What planning tool divides a city into districts and outlines long-term goals for growth, density, and land use?
What is a comprehensive plan (or general plan)?
Define bad-boy carveouts
you do something illegal/bad, and now lender can come after you (even if you have a recourse loan)
Define NOI, in-place NOI vs stabilized NOI
in-place NOI: current day NOI
NOI: net operating income (total revenue - total expenses)
stabilized NOI: NOI at vacancy assumption in the future (ie. property leased up to 95%)
How many members are there in WIRE (Stella and Grace count)?
17
This Southeast metro continues to attract corporate relocations and institutional capital, with relatively strong office leasing compared to peer Sun Belt markets.
What is Atlanta?
What type of zoning limits development by specifying the maximum amount of building area relative to land area?
What is floor area ratio (FAR)?
Describe a scenario where you would implement mezzanine debt?
need more leverage, senior debt won't give, go out and desperately seek
PE funds, specialized debt funds, family offices, SBICs (small business investment companies)
What is the difference between NOI and cash flow?
NOI is revenue minus operating expenses (before debt service, capex, and taxes).
Cash flow to equity is NOI − debt service − CapEx − leasing costs (TI/LC)
What is Matt's favorite food (and location)?
NYC hotdogs (must include NYC for full points)
This gateway market has seen office values reset sharply post-pandemic, while multifamily and industrial fundamentals remain among the strongest in the country due to supply constraints.
What is New York City?
What planning concept separates incompatible land uses to reduce conflicts, such as noise or traffic?
What is land-use compatibility (or buffering)?
A deal is capitalized at $30 million. Senior debt is 54% LTV. Mezzanine debt is 16% of total deal. Preferred equity is half of total equity. What is common equity?
15% or $4.5 million
A developer is buying a small multifamily building in NYC.
Purchase price: $50,000,000
Going-in cap rate: 5.5% (based on Year-1 NOI)
A lender offers a loan at 65% max LTV and requires minimum DSCR of 1.30x.
The loan has annual debt service = 7.0% of the loan amount (a debt constant of 7.0%).
What is the NOI, what is the max loan, what is the max debt service?
NOI = Cap × Price = 0.055 × 50,000,000 = $2,750,000
Max loan (LTV) = 0.65 × 50,000,000 = $32,500,000
Max debt service = NOI / DSCR = 2,750,000 / 1.30 = $2,115,385
What class year did each Exec member join UOREIG?
Cole: freshman
Jackson: sophomore
Grace: sophomore
Michael: freshman
Stella: freshman
This market has experienced some of the nation’s largest office distress and highest vacancy rates, yet remains a global hub for life sciences, AI-driven tech, and trophy assets with extreme barriers to new supply.
What is San Francisco?
What term describes redevelopment of previously developed land, often with environmental contamination?
What is a brownfield?