B8469-001: Distressed Real Estate Investing
T - A Term, 05:40PM to 08:55PM
Credit hours: 1.5
Location: URI 303
Method of Instruction: Hyflex/Hybrid
Instructor: Ron Kravit; Christopher Mayer; David Sherman
B8332 Real Estate Transactions is recommended.
The goal of this course is to make you knowledgeable and conversant about the principles of real estate investing as applied to purchasing distressed assets. The Covid crisis is only the most recent example of how changes in the economy or capital markets can have a profound impact on real estate investors. During the Great Recession and the US Savings and Loan crisis before that, real estate assets suffered appreciable losses, and thus also provided an opportunity for investors to find new opportunities to recapitalize and reposition troubled properties and companies.
As both a physical asset and an investment asset with a defined location in space, real estate is strikingly different from other asset classes. It is a long-lived asset that depends on attractive financing, rental increases, and long-term appreciation to maintain its value. Real estate forms part of the alternative investment asset class and institutional investors target a substantial part of their alternatives portfolio in real estate. The class will cover both US and international distressed investments and across traditional and niche sectors. The goal is to provide students with the tools to identify and purchase distressed real estate assets globally and to target superior risk-adjusted rates of return.
Ronald Kravit
Adjunct Assistant Professor
Ron Kravit is a Senior Managing Director of Tracker Capital, a stage agnostic venture capital firm that principally invests in emerging technologies that advance national security. Currently, Mr. Kravit is a senior advisor to several other companies including Hello Alfred, a technology and service company focused on residential real estate sector, Platform Ventures, and Harridge Development Company. Prior to joining Tracker Capital, Mr. Kravit...
Christopher Mayer
Paul Milstein Professor of Real Estate
Christopher Mayer is the Paul Milstein Professor of Real Estate at Columbia Business School. His research explores a variety of topics in real estate and financial markets, including housing cycles, mortgage markets, debt securitization, and commercial real estate valuation. Dr. Mayer is also CEO of Longbridge Financial, an innovative reverse mortgage company focused on delivering responsible home equity products to older Americans to help...
David Sherman
Co-Director
Mr. Sherman is Senior Advisor and Chairman of the Investment Committee at BGO Strategic Capital Partners (formerly Metropolitan Real Estate), a real estate investment management business that he co-founded in 2002 and of which he served as President through 2018. (Metropolitan became part of the Investment Solutions Division of The Carlyle Group in 2013 and was acquired by BentallGreenOak in 2021). In addition, Mr. Sherman is Co-Director of...