Real Estate News

The closing panel for all Symposium attendees centered on how some of the largest and most active institutional real estate investors think about allocating capital. Serving as moderator, Professor Sagalyn continually asked about approaches to real estate investing and what criteria shaped decision-making. Speaking to these issues were three panelists whose companies collectively manage tens of billions of dollars in real estate.

Dean Hubbard opened the fifth annual Columbia Business School Real Estate Symposium by reminding the audience of the important place real estate maintains in the broader economy. Opening the keynote address, David Simon noted his surprise at the rapid recovery from the crisis, particularly for retail real estate assets.

"Consolidating and Recapitalizing Real Estate Businesses" brought together highly accomplished professionals from across the real estate industry in a good-humored and wide-ranging discussion on the sector at large.

The panel "Real Estate Development in New York City in the Digital Age" addressed the current state of the development market and how an infusion of tech firms into the local marketplace has altered the equation for real estate executives.

"Special Servicing—360 Degrees" panelists discussed the evolution, current state, and future challenges of the special servicing industry.

Team “Clairvoyance Capital,” consisting of three first-year and three second-year students, finished first in the prestigious National Real Estate Challenge held on November 28-29.

Columbia Business School’s innovative real estate cases and new Social Impact Real Estate Investing and Development are highlighted in a November 26 Financial Times article about real estate curricula at leading business schools.

Hugh Frater '85 is chief executive officer of Berkadia, which specializes in commercial real estate financial services. Previously, he worked at Good Energies and PNC Financial Services among other firms. Frater serves on Columbia's MBA Real Estate Program Advisory Board and is a member of the Columbia Business School Real Estate Forum. In a recent interview with Evan Abrams '13, he discusses business strategy and opportunities, commercial mortgage backed securities, and career development. A part of our Distinguished Alumni Interview Series, this piece is intended to be informative and motivational for seasoned veterans and MBA students alike.

A new Columbia CaseWorks case by Fred Knapp ’12 and Lynne B. Sagalyn, “Battling Over a New York Workout: The W Hotel Strategy” sets up this true David-and-Goliath story in which the most junior player in the highly leveraged capital stack ended up being made whole on its loan. The saga of the $232-million mortgage and mezzanine debt financing, now known as the “W Strategy,” is one that changed practice, becoming significant in the annals of Uniform Commercial Code foreclosures and bankruptcy transactions.

The 2009 Home Affordable Modification Program (HAMP), which provided loan servicers with sizeable financial incentives to renegotiate mortgages, was intended to help 3 to 4 million struggling homeowners. Instead, the program is benefiting just over a third of that target, according to a paper coauthored by Edward S. Gordon Associate Professor of Real Estate Tomasz Piskorski. The study finds that if the worse-performing banks had simply modified loans at the same pace as their better performing peers, then HAMP would have produced about 800,000 more modifications.