Case Study American Can Company ( Business & Marketing Case Study)

Name NYU Schack Institute of Real Estate
The Development Process
Professor Corinne T. Packard
Date
CASE STUDY II Case Study American Can Company
Case part 1: Risks and Rewards
There are risks associated with entering a project for both the public and private sectors since the success depends on different stakeholders working together. There is a likelihood of delays when various stakeholders are involved in a project, and this includes when there are conflicts. The private sector focuses more on the profit potential and maximizing returns, while the public sector considers how the public is served. The management may assume control of the, but the state approves the projects and the public sector agents may affect the success of the project.
There are high transaction costs and high costs since different stakeholders are involved and the public sector tends to fund long-term projects even as viable as previously thought. Additionally, the private sector continues to work on expensive projects where the procurement process is complex. This is further complicated when there are planning constraint, and such projects tend to require long-term planning, American Can Company project is expected to benefit residents as there are affordable houses that are rented at a lower rate than the market value.
The public and private sectors entering into an American Can Company project generate various benefits where the community will get services and projects that meet the public needs. There is an improvement in infrastructure when there is efficiency when there is efficient bundling of activities by a single private sector player responsible for designing, constructing, operationalization, and maintaining the construction project. The private sector player takes charge of the project during the life cycle unlike in traditional public works when the private sector player handles some aspects of the projects and ignores those that will be handled by the public sector that lacks the capacity and incentives to maintain high-quality standards.
There is improved coordination and relationships between the public and private sectors when the sectors enter into the American Can Company project. There is also execution of the investment project focusing on efficiency as is the case with the private sector. There is the scrutiny of public resources management, which helps to ensure that there are no high runaway costs. Public/private partnership helps to revamp areas of New Orleans without the public necessarily incurring high costs to fund the project. The low- and moderate-income residents benefit the most by having affordable housing.
Case part 2
Property Market Forecasts and their Valuation
Read the Case Study for the American Can Company and create a dynamic excel model including the following:
Create a Rent Roll

Units

Percentage Leased

Rent Rate

Monthly Rent

Yearly Rent

Unit Type






Affordable






One-bedroom

44

100%

$500.00

$22,000

$264,000

Two-bedroom

11

100%

$675.00

$7,425

$89,100

Market Rate






One-bedroom

81

100%

$957.50

$77,558

$930,690

Two-bedroom

117

86%

$1,505.00

$176,085

$1,817,197.20

Three-bedroom

3

100%