Real Estate Initiative - Core Electives

Faculty

Tony Smith, Lecturer

Course Description

This course introduces students to analytical techniques and terminology specific to the real estate industry. As one of only two real estate courses offered at Darden, the course cover as many topics as possible - addressing the primary income-producing property types (multifamily, office, retail, and industrial) in a variety of sizes and markets. There will be key non-financial issues in all cases; most cases will also have a material finance component. Students will consider such topics as an historical overview of the industry, techniques of financial analysis and financing alternatives, commercial and residential development, current concepts of real estate development, cap rates, appraisal methods, leasing, and property management. The course appeals to a broad array of students especially those considering careers in real estate or who expect to be involved in real estate transactions, but also for those looking for an overview of the business. For those students with no prior experience in real estate but who want to enter the field, the course, with its exposure to the industry nomenclature, will be of tremendous value in the job search. The principal modes of instruction include readings, cases, and speakers from the industry.

Course Objectives

• Provide students with a historical overview of the real estate industry.
• Familiarize students with real estate terminology.
• Provide financial techniques to analyze real estate products.
• Introduce students to various real estate product type.
• Examine why markets are unique.
• Present current concepts and trends in real estate development.

Faculty

Tony Smith, Lecturer

Course Description

This course introduces students to current hot topics in the real estate industry. Except for the kick-off and wrap-up sessions, each class will feature a different speaker or multi-speaker panel addressing key issues affecting the industry. Many of the speakers are Darden alumni, and the speakers range from smaller private practitioners to CEOs of publicly traded companies. The course should appeal to a broad array of students especially those considering careers in real estate or who expect to be involved in real estate transactions, but also for those looking for an overview of the business and its current issues. For those students with no prior experience in real estate but who want to enter the field, the course, with its exposure to the industry nomenclature, will be of tremendous value in the job search.

Course Objectives

• Provide students with a current overview of the real estate industry.
• Present current concepts and trends in real estate
• Familiarize students with real estate terminology.
• Introduce students to various real estate product types.
• Give the students the opportunity to engage with multiple real estate practitioners.

Faculty

Paul Freed, Assistant Professor of Business Administration

Course Description

Real estate is one of the largest and most capital-intensive asset classes in the global economy, touching nearly every sector and shaping the built environment in which businesses and communities operate. As the industry evolves, understanding the details of real estate finance is absolutely essential for professionals across investment banking, private equity, asset management, corporate finance, and development. Through real-life case studies, this course equips students with the analytical tools necessary to evaluate real estate investments and structure financing. We will begin by building fluency in property-level financial analysis and modelling, examining how investors underwrite individual assets and compare opportunities across real estate asset classes. We then explore the complexities of debt financing, from straightforward mortgage structures to multi-tranche capital stacks, and the role of private equity in sourcing, structuring, and managing real estate. We will analyze large-scale commercial development through the lens of financing strategy and risk allocation. We conclude by examining how real estate assets are valued and traded at the portfolio level, from REITs and public market vehicles to emerging approaches such as blockchain-based tokenization. By the end of the course, students will have the expertise to navigate the complexities of real estate capital markets, evaluate investment opportunities across property types and structures, and contribute to the evolving landscape of real estate finance and investment. 

Course Description

A Darden Independent Study elective includes either case development or a research project to be conducted by an individual student under the direction of a faculty member. Students should secure the agreement of a resident faculty member to supervise their independent study and assign the final grade that is to be based to a significant degree on written evidence of the individual student’s accomplishment. Each independent study proposal must be approved by the program director. (1.5 or 3.0 credit hours)

Faculty

Ian Appel, Associate Professor of Business Administration, Academic Director of Richard A. Mayo Center for Asset Management John G. Macfarlane Family Chair

George Craddock, Co-Instructor for Darden Capital Management & Lecturer

Course Description

The Darden Capital Management (DCM) course aims at preparing students in equity research, stock selection and portfolio management in a real-world environment, in which students manage funds on behalf of the Darden School Foundation (“DSF”). Students are responsible for generating investment ideas, perform thorough research on them, pitch to a group of managers, and vote on their potential inclusion in the portfolio. Students are also responsible for regularly reporting of portfolio results to the DSF Trustees and the Faculty Advisor(s) through comprehensive presentations. The course is intended for students who want to pursue careers in asset management, equity/credit research, hedge funds, and investment consulting. Students enrolled in the course receive a total of 4.5 credits. Currently, there are 6 funds (Cavalier, Colonnade, Darden, Jefferson, Monticello, and Rotunda), which range in investment orientations from long/short, real estate focused, small-cap, to growth at reasonable price, global and to sustainability. In addition to the six teams, there are also four executive positions (CEO, CIO, CFO, CRO).

The Colonnade Fund is a long-only equity fund investing in the best performing Real Estate Investment Trusts (REITs). The fund utilizes a bottom-up research approach with a strong emphasis on funds from operations (FFO) and dividend payouts to identify attractive investment opportunities. The Fund will seek to invest in single name positions in equity REITs, mortgage REITs, and infrastructure securities. In terms of allocation, the fund will strive to hold 65% of the portfolio in domestic REITs and the remaining 35% in real estate adjacent securities. Over the medium to long term, the fund will seek to outperform the FTSE Nareit US Real Estate Index.

Course Objectives

• Prepare students to perform equity research in a real-world environment which allows them to pitch stock ideas to a group of colleagues, debate on the merit of the idea, and vote on the potential inclusion of the stock to a real fund.
• Test students ability to set target prices for stocks, follow specific investments, and perform ongoing due diligence.
• Help students understand how to manage investment portfolios, allocate capital, and manage risk.
• Increase student understanding of factors affecting equity and bond valuation.