Real Estate Development Feasibility Study – A student conducted an in-depth feasibility study on developing a vacant 20-acre parcel of land into a mixed-use residential and commercial development. The study included a detailed market analysis of the local area to determine demand for different property types. Financial analysis was conducted to create pro forma financial statements projecting the revenues, costs, profits of developing the site under various development scenarios. Sensitivity analysis tested the impact of changes in assumptions. The analysis showed that a development with 300 apartment units and 50,000 square feet of retail space was the most financially viable option. The study was over 15,000 characters and provided the client, a small development firm, with the information needed to pursue funding and approvals for the project.

Multifamily Investment Property Analysis – A student was tasked with evaluating the acquisition of a 200-unit garden-style multifamily property for long-term hold as an investment. The analysis involved conducting due diligence on the property including a physical inspection, review of historical operating statements, rent rolls and leasing trends. The student created financial projections for a 10-year period factoring in assumptions for revenue growth, operating expenses, capital expenditures and financing. A discounted cash flow analysis was performed to determine the property’s net present value and internal rate of return. Sensitivity analysis tested the impact of changes in vacancy, expense growth and CAP rates. Peer property comparables were analyzed to test valuation. The analysis considered the optimal holding and exit strategy. At over 16,000 characters, it provided a thorough evaluation of the investment merits and risks of acquiring the asset.

Portfolio Valuation and Strategic Recommendations – A large global asset manager hired a student to analyze its $500 million U.S. apartment portfolio. The analysis consisted of reviewing individual property operating statements, rent rolls, location attributes and market conditions. Statistical analysis was conducted to identify correlations between attributes and performance. Advanced valuation models were applied to provide individual property valuations considering both market conditions and property-specific attributes. Cluster analysis was used to group properties with similar characteristics. The student provided strategic recommendations to optimize performance across property clusters through focused operations and marketing programs. Divestment candidates were identified. An action plan was presented to the client to enhance NOI growth, reduce risk and reposition the overall portfolio. At over 17,000 characters, it was an in-depth analysis supporting strategic decision making.

Residential Development Financial Model – A student working for a mid-sized homebuilder was tasked with creating a financial model to evaluate the feasibility of entering a new metropolitan market. Extensive research was conducted on demographic trends, competing developments, absorption rates and sales prices by product type in the target area. The student created a sophisticated financial model in Excel incorporating detailed pro formas and cash flow statements for 5 hypothetical residential communities of varying sizes and product mixes. Revenue and construction cost assumptions were backed by third party data sources. Sensitivity analysis tested the impact of changes in key drivers. Together with a written analysis of the local market opportunity and risk factors, the model validated the market entry was financially viable. At over 18,000 characters, the analysis provided the data to support strategic expansion into the new region.

As these examples illustrate, strong capstone projects in real estate provide detailed analyses, rely on reliable data sources, employ rigorous quantitative analysis techniques and financial modeling, and result in actionable strategic recommendations. At lengths exceeding 15,000 characters, they are able to present thorough and in-depth evaluations that address complex real estate problems and support high-stakes business decisions. A quality capstone brings together the knowledge and skills gained throughout a real estate program and applies them to solve real client needs.