Understanding and Calculating Residual Land Value Using Excel: ULI Live Online Workshop
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Determining how much a developer can afford to pay for developable land can be a daunting task. Employing comparable sales data is one technique often used for deciding the value of a piece of land. However, this approach ignores critical project details and can be unreliable for determining project viability. Ultimately, it can cause the failure of what could have been a successful undertaking. A more reliable and comprehensive technique is residual land valuation. This technique—used by development professionals, corporations, and appraisers alike—determines project viability by taking into account specific operational components of a project such as rents, operating expenses, and prevailing capitalization rates.
Held over two sessions, this new online workshop will teach participants how to determine residual land value starting with a blank Microsoft Excel worksheet. Participants will construct a valuation model that will determine what the developer can afford to pay for land, and the rents that will be required of prospective tenants to make a project feasible. The first session will use a small retail shopping center as an example; session two will use a multifamily project.
Session 1: August 27, 2012 1:30–3:30 p.m. ET
Session 2: August 29, 2012 1:30–3:30 p.m. ET
Southepointe Capital Partners
Los Angeles, California
Williams is a principal with Los Angeles–based Southpointe Capital Partners, where he facilitates expansion of the firm's real estate asset portfolio and advises clients on planning for specific projects and portfolios, including acquisitions, dispositions, development, and deal structuring based on financial and market drivers such as profit and loss, occupancy models, and tax-related considerations.
Williams has a 20-year history of creating value for investors and users of commercial real estate across the United States. He has facilitated real estate acquisitions, dispositions, developments, and capital placements totaling over $1 billion in value. His experience spans a variety of commercial real estate product types, including retail, multifamily, office, and industrial.
His career includes tenures with the Southpointe Partners/Southpointe Capital, founder and CEO; Maaco Enterprises Inc., retail store development; Prudential Real Estate Investors (PREI), senior analyst; and John Hancock Securitized Mortgage Investments, analyst.
Williams has been a CCIM member since 1997, and is past chair of the CCIM Education Committee and a member of the Faculty Committee. He is a member of the Atlanta Commercial Board of Realtors, the ULI Urban Mixed Use Development Silver Council, and the Project REAP advisory board.
Williams has designed and taught courses for the CCIM Institute and ULI. He holds a BA in real estate and economics from Morehouse College.
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