Real Estate Finance (B8331) is not a prerequisite but is strongly recommended. Students who have not taken Real Estate Finance or lack demonstrable professional experience will be REQUIRED to take two real estate finance “bootcamp” sessions that will be offered prior to the first class. Students enrolled in Real Estate Finance (B8331) in the current semester need attend the bootcamp but are welcome.
This course will explore what comprises, and how to develop and invest in “social impact” real estate projects. How do we define what constitutes “social impact” with respect to real estate projects? What are the financial building blocks and sources of capital available for developers and investors to utilize when putting together deals?
Using examples of real deals, and focusing largely on U.S. urban markets, students will work through the challenges and opportunities of financing various types of projects, including: affordable and mixed-income housing, mixed-use, neighborhood retail, community facilities. Students will be exposed to a variety of financial tools (LIHTCs, tax-exempt bonds, NMTCs, etc.) and public sector programs that are necessary to make social impact projects feasible while also being asked to gauge whether the risk-adjusted returns warrant “doing the deal”.
In addition, the course will explore the following questions: who are the players in the “social impact” real estate space? Who are the capital providers in both the public and private sectors? Who are the developers? Can you make money being a socially responsible developer? What role do non-profits play?
Speakers will include: for-profit and non-profit developers, fund managers, government officials and financial institutions.
Rachel Diller was a Columbia Business School faculty member from 2014 to 2018.