Charles Long - Finance for Real Estate Development

About the Urban Land Institute

The mission of the Urban Land Institute is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide. ULI is committed to

• Bringing together leaders from across the fields of real estate and land use policy to exchange best practices and serve community needs;
• Fostering collaboration within and beyond ULIs membership through mentoring, dialogue, and problem solving;
• Exploring issues of urbanization, conservation, regeneration, land use, capital formation, and sustainable development;
• Advancing land use policies and design practices that respect the uniqueness of both built and natural environments;
• Sharing knowledge through education, applied research, publishing, and electronic media; and
• Sustaining a diverse global network of local practice and advisory efforts that address current and future challenges.

Established in 1936, the Institute today has nearly 30,000 members worldwide, representing the entire spectrum of the land use and development disciplines. ULI relies heavily on the experience of its members. It is through member involvement and information resources that ULI has been able to set standards of excellence in development practice. The Institute has long been recognized as one of the worlds most respected and widely quoted sources of objective information on urban planning, growth, and development.

About the ULI Center for Capital Markets and Real Estate

The ULI Center for Capital Markets and Real Estate focuses on real estate finance, real estate industry and investment trends, and the relationship between the capital markets and real estate. The mission of the Center is to promote understanding of the real estate capital markets and to provide leadership in fostering a healthy and productive real estate industry and capital markets sector that in turn promote thriving and sustainable communities worldwide. The Center pursues this mission through research, trend analysis, education, events, publications, web-based resources, advocacy, and thought leadership.

Cover photo:

Codo 241, in York, Pennsylvania, was financed with long-term capital from local investors. It is a 70,000-square-foot adaptive-use project that includes rental apartments, offices, and a bistro.

J. David Allen and Son Photography

Copyright 2011 by the Urban Land Institute

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Suite 500 West

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All rights reserved. No part of this book may be reproduced in any form or by any means, electronic or mechanical, including photocopying and recording, or by any information storage and retrieval system, without written permission of the publisher.

Catalog number: P100

Library of Congress Cataloging-in-Publication Data

Long, Charles,1947

Finance for real estate development / Charles Long.

p. cm.

ISBN 978-0-87420-157-4

1. Real estate development. 2. Real estate developmentFinance. I. Title.

HD1390.L66 2011

332.72--dc22

2011008977

Charles Long

Principal, Charles A. Long Properties, LLC

Oakland, California

Gayle Berens

Senior Vice President,

Education and Advisory Group

Dean Schwanke

Executive Director,

ULI Center for Capital Markets and Real Estate; Senior Vice President, Urban Land Institute

Anita Kramer

Senior Director, ULI Center for

Capital Markets and Real Estate

Adrienne Schmitz

Senior Director, Publications

James Mulligan

Managing Editor

Lise Lingo

Manuscript Editor,

Publications Professionals LLC

Betsy VanBuskirk

Creative Director

Anne Morgan

Graphic Designer

Craig Chapman

Senior Director, Publishing Operations

Ryan Beible

Student Reviewer

Johns Hopkins University, Edward St. John Department of Real Estate

Baltimore, Maryland

Stephen Blank

Senior Resident Fellow, Finance, Urban Land Institute

Washington, D.C.

David Blitz

Principal, Nebo Capital, Inc.

Los Angeles, California

Robert Feinberg

Senior Vice President, Grubb & Ellis New Mexico

Albuquerque, New Mexico

Terri Gumula

Workouts & Dispositions Vice President, Citigroup

New York, New York

Rebecca Rivard

Student Reviewer

Johns Hopkins University, Edward St. John Department of Real Estate

Baltimore, Maryland

Brent Smith

Associate Professor, Virginia Commonwealth University School of Business

Richmond, Virginia

Steven Spillman

Principal, Pacifica Companies

Mission Viejo, California

Roger Staiger III

Managing Director, Stage Capital, LLC

Fairfax, Virginia

C HARLES A. L ONG has had a long and varied career as a developer, development consultant, city manager, and educator, specializing in mixed-use infill and redevelopment projects, including acquisition, entitlement, development, and consulting. He has 36 years of diverse experience in local government and development with an emphasis on economic development, finance, and public/private partnerships. He served for eight years as city manager in Fairfield, California, a city with a national reputation as being innovative and well managed.

Since 1996 Long has worked as a consultant to public and private clients on development and management. He has held interim positions for several cities in finance, redevelopment and management, including interim town manager of Mammoth Lakes and interim city manager of Hercules and Pinole, all in California. His diverse assignments include writing redevelopment plans, working on development projects, conducting pro forma analysis, conducting strategic planning, representing public agencies in negotiations, marketing development opportunities, assisting with organizational development, conducting capital and financial planning, implementing budget reform, analyzing military base reuse, and promoting alternative energy development. He has overseen more than $600 million in public financing during his career. His work on development is focused in California, with an emphasis on public/private partnerships and mixed-use infill.

Long is a full member of the Urban Land Institute and, within ULI, a member of the Public/ Private Partnership Council and a faculty member teaching the Real Estate Development Process II, Public/Private Partnerships, and Decision Making for Development Professionals courses. He has worked on 14 ULI Advisory Panels, most recently chairing a panel in Dallas, Texas. He is cochair of the Sustainability Committee for the San Francisco District Council and helped design and deliver seminars on implementing sustainable communities for public officials, sponsored by the Daniel Rose Institute. He has taught at the School of Public Administration at Golden Gate University and has conducted courses on real estate development, economic development, and organizational change internationally.

Long has a BA in economics from Brown University and a Masters of Public Policy from the University of California at Berkeley. He served in the U.S. Army as an infantry platoon sergeant.