Keeping it Real in the Classroom

AthenianRazak’s Kyle Holmbeck knows how important it is to prepare the next generation for the workforce. That is why he started teaching at Burlington County College several years ago and why he strives to bring real world examples into the classroom.
As one of AthenianRazak’s financial experts, Kyle is currently handling construction project accounting and management for clients. Bringing together both his passion for finance and for real estate, Kyle decided to offer his Finance class a real world example of several of the principles they have learned this semester, such as Net Present Value (NPV) and asset valuation. To facilitate this example, Kyle used a development pro forma created by our very own William Knapp to evaluate our development property acquisition candidates.
Two objectives of Kyle’s class are learning Excel and understanding that the value of financial assets are based on future cash-flows. William’s pro-forma is a powerful model which allows us to measure sensitivity of returns to virtually any project variable. But it is also simple enough to be useful as a straightforward conventional real estate analysis, projecting the value of a development property based on future cash-flows. It was a perfect tool for getting across Kyle’s objectives. By understanding the cash outlays and inflows of the development project, the class was able to understand the projected investment value and returns.
Thanks Professor Holmbeck for teaching the next generation about the importance of real estate!
Kyle Holmbeck is Controller at AthenianRazak.