Capstone Course: Real Estate Project Workshop
The “Real Estate Project Workshop,” also known as the “Capstone Course” is a major highlight of Cornell’s Program in Real Estate (PRE). The PRE requires all second-year students to participate in the Capstone experience during the spring semester. This class involves a semester-long applied project that integrates what real estate students have learned to date during their course of study.
The Capstone Course is led by Professor Mark Foerster, a seasoned real estate executive with diverse experience in both acquisitions and development. Mr. Foerster is currently the Executive Vice President of Northern Capital Group, a real estate investment, management and development company based in Rochester, New York. Also, he is a former Executive Vice President of Wilmorite Properties, Inc. and of Macerich East Development, LLC, the east coast development affiliate of The Macerich Company, a NYSE-traded retail REIT. Among Mr. Forester’s real estate achievements is the rezoning of Tysons Corner Center in McLean, Virginia, one of the premier regional malls in the U.S., which will allow for the future development of 3.5 million square feet of mixed use space.
Mr. Foerster commented on the benefits associated with the course, “The Capstone course gives students an opportunity to take the vast real estate knowledge and skills that they have developed at Cornell, and apply that knowledge and those skills in an actual situation, with a real client who is seeking advice on the development or redevelopment options for a property that they own.” Students work in teams to prepare an analysis for a specific real estate development project. They are presented with an actual site, and work for a real client. Each team prepares a professional quality report that includes market research, site analysis, architectural design, branding and marketing strategies, financial analysis, financing and equity investment considerations, and projected investment returns. The project culminates with written and oral presentations including recommendations for the development project. Each team’s deliverable to the client includes an 80-90 page report, a power point presentation, and financial models in Excel. In addition, many teams prepare architectural models and animations or “fly-throughs.”
Foerster is currently working with site owners to identify a project for the spring 2011 course. He is looking in New York City, Philadelphia and Washington, D.C.. Past projects include a Boston Properties owned-site in Reston, VA and a Macerich owned-site in Tysons Corner, VA. Last year’s sites were both an 8.5 acre site owned by The Akridge Company and a 4.0 acre site owned by William C. Smith & Company, both located in the Capitol Riverfront/Navy Yard area of Washington, D.C. The Capitol Riverfront/Navy Yard area is bordered by the Capitol Building on the north and the Potomac River on the south, and includes the Washington Nationals baseball stadium and excellent public transit options.
Based on the diverse market demand at past sites, these projects tend to lend themselves to a mix of property uses. The complexity associated with mixed-use projects leads to a myriad of issues the students must understand and appropriately address during the course. Students find that the wide range of issues, the mix of uses, and the all-encompassing nature of the course are all factors that lead to a culminating experience that focuses the skills and education that they gained while attending Cornell’s Program in Real Estate.