The Millegan Creek Apartments Harvard Case Solution & Analysis

The Millegan Creek Apartments

Executive Summary

This paper attempts to perform an analysis of a construction property so that a final recommendation could be made to the Fleet Bank to provide that loan to finance 80% of the total cost of that property. Fleet Bank is one of the largest bank located in New England.

A construction loan is being considered by Fleet bank for a 390 unit’s project for an apartment building in Austin, Texas. The economy for Austin has been growing significantly over the past three years with a compounded growth rate of 12.2%. Moreover, the supply and demand dynamic in the apartment market in Austin and the range of the growth drivers such as employment, job creation, development, business growth etc. show that economically this property investment seems to be a good opportunity for Fleet bank to pursue opportunities in the commercial real estate property market.

Furthermore, the financial analysis for the Millegan Creek Apartment Property has also been performed on the basis of the negotiated terms and incorporating other assumptions as required and based upon that this investment seems to generate huge returns, which are much higher than the required rates of return.

The Millegan Creek Apartments Case Solution

After analyzing the profits, the economic aspects and the risks associated with the investment in this apartment by Fleet Bank a final recommendation has been made to Tom Hayden, the Vice President of Fleet Bank............

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