Investing Strategies in a Distressed Environment

Real Estate Development

Fall 2012

Donald Sheets, instructor

The objective of this course was to introduce the basic framework of commercial real estate investment through a lens of distressed situations. The use of case studies on secondary market mortgages allowed for the analysis of the issues surrounding such investments and the calculation of a reasonable valuation. Further case studies with the help of guest speakers exposed students to the legal and strategic considerations that are critical in a typical commercial real estate workout scenario. This included a session where legal and investment specialists in distressed scenarios participated in a mock workout for the class to enable them to get a real-world perspective. For their final projects the students formed five teams and each were charged with finding a real distressed investment opportunity. Each group then submitted a full investment committee memo, which covered all of the relevant valuation, and legal considerations that had been covered through the course. The semester culminated with each group presenting their ideas to an investment committee panel made up of industry experts.