Impact Investing in Commercial Real Estate Competition

• Bring attention to worthy projects in or near communities that host important academic real estate programs
• Allow students at the academic institutions that participate to interact with members of their advisory boards and local commercial real estate firms to learn about market conditions and under-utilized properties in their areas.
• Provide teams with feedback on their preliminary work by a group of professionals who are experts in assessing the risks and rewards of impactful investment in commercial real estate.

The call for the 2024-2025 competition and the case brief will be distributed in early August 2024.

For information, please contact Professor Heuson. 

Competition Results

A team from York University, located in Toronto, took first place in the Impact Investing in Commercial Real Estate Competition, with a University of Miami team taking second and contestants from the University of Florida coming in third. York University’s win marked the first time that non-U.S. students have triumphed in the annual Impact Investing in Commercial Real Estate (CRE) Competition.

“The goal of the competition is to teach students to be transformative when it comes to CRE development,” said Miami Herbert Professor of Finance Andrea Heuson, who oversees the Accelerated MBA in Real Estate program. “We want to impress upon them that you can create impactful projects if you lay the groundwork properly.”

Plan of the Competition

The Impact Investing in Commercial Real Estate Competition is an annual event that has been held on eight occasions. It’s been hosted by the University of Miami Patti and Allan Herbert Business School and sponsored by Miami Herbert’s Real Estate Advisory Council. Along with subsidizing travel and accommodations for participating students, the Real Estate Advisory Council generated $25,000 in prize money that was shared between the three winners of the 2024 Competition.

The competition proceeded in two stages:

1. Initial submissions are collected in mid-December. Most students submit class projects that have been enhanced to focus on one or more of five Impact components: Improving Building Design and Quality, Diversifying Ownership and Management, Urban Regeneration and Transit Oriented Development, Special Needs Users and Public Assets. Real estate professionals associated with Miami Herbert review each submission and these reviews are used to select finalist projects.
2. Finalist teams have the opportunity to revise their projects in response to the initial comments before presenting to judges in Miami in mid-April, (all of the projects submitted receive at least two reviews from industry professionals to enhance the learning experience of finalists and non-finalists alike).

Initial Submissions

There were 18 submissions from ten schools—both record-setting numbers. Participating schools included Florida International University, Georgia State University, Penn State, Rutgers, SMU, the Universities of Chicago, Florida, Miami and North Carolina-Charlotte and York University. This year was the first year we opened the competition to undergraduate students and the response was quite strong so we plan to offer a separate undergraduate division next year.

Submitted projects were reviewed by CRE professionals at Acore, Affinius, Aztec, Berkadia Miami, BGO, CBRE Miami, DRA, FTI, Greenmills, Hines, JLL New York and Miami, Kayne Anderson, NRI, Related Group and Starwood. These reviews helped us select projects from Florida International University, the Universities of Chicago, Florida and Miami and York University to advance to the final round.

Judging the Finals

Judging took place at the Miami Herbert Business School. We are so grateful to our judges Manuel Martin, Kevin Fitzpatrick and Lynn Hackney.

Kevin Fitzpatrick, the lead judge, is the former head of Global Real Estate for AIG. Kevin is now the founder of Spring Bay Properties, a multifamily investment fund based in Southwest Florida. He is a firm believer that environmentally sound practices can enhance returns on real estate investments and is very well informed about technological advances in CRE materials. Kevin has judged the competition every year since inception.

Lynn Hackney is the Founder and CEO of Community Three, an adaptative re-use infill developer in Washington DC. Community Three has experience in using alternative building materials and in partnering with non-profit groups to achieve outcomes that benefit the community. This was Lynn’s second time as a judge.

Manuel Martin is the former global head of retail for Nuveen. Manuel now works as a consultant for a variety of European investors focusing on commercial real estate and corporate advisory. This was Manuel’s third stint as a judge.

York University winner Bianca Gornik, who’s working on a master’s degree in real estate and infrastructure, said she and her colleagues “thought we had a realistic chance of placing top-three. Our development is a mixed-use, purpose-built rental development that is located on transit-connected land and within a 10-minute walk to York University. The project creates a unique impact investing opportunity, through the provision of affordable housing units, socially-minded commercial tenants, and sustainability certifications.”

Student Feedback

The University of Miami was represented by master’s graduate student Daniel Cutimanco, David Flaxer and Nicolas Montana, all working on a Master’s of Real Estate Development + Urbanism degrees. Their fourth teammate was Joshua Simpson, who currently works for a Pinecrest commercial real estate firm, and had entered the competition prior to earning his Accelerated MBA in Real Estate in Fall 2023.

The University of Miami team focused on the Northside Area, an underdeveloped tract northwest of downtown Miami that is transitioning from an industrial designation to mixed-used.

“It’s a traditionally industrial area and the properties around that area are all industrial, or older houses and trailers,” Joshua Simpson explained. “So, there hasn’t been any investment in that area in quite some time. We wanted to have something that was impactful, but we didn’t want to have something that was gentrifying at the same time.”

2024-25 Competition

The winning projects from the 2023 competition are posted on the site now for interested parties. Please don’t hesitate to reach out to Professor Heuson, aheuson@miami.edu for information on the 2023-24 competition or the 2024-25 event.

Synopses of the 2024-25 Finalist’s project are below:

First Place Winner SCHULICH SCHOOL OF BUSINESS, YORK UNIVERSITY

YORK TEAM: Mary Liberto, Joshua Culmone, Darren Adamah, Bianca Gornik

Summary

The Intersection is a proposed mixed-use rental project in a transit-connected area near York University. It aims to provide affordable housing, socially minded commercial spaces, and sustainability certifications. The development plans include 1806 units across three buildings, with a focus on utilizing CMHC financing, phased construction, and tax incentives for sustainability and affordable housing. Partnerships with organizations like BGO and EllisDon are crucial for execution.

The project aims to address housing shortages and affordability issues in the Greater Toronto Area (GTA) by offering 20% affordable units and a diverse unit mix. Sustainability is a key focus, with LEED Gold certifications and efforts to achieve Net Zero Buildings.

The expected costs, projected income, and exit strategy are outlined, along with the capital stack and financing details. The project anticipates strong returns, but risks include municipal approvals, project delays, and meeting deadlines for tax rebates. Overall, the project aims to generate employment, increase property value, and contribute to housing availability in the area.

Second Place Winner UNIVERSITY OF MIAMI

UM TEAM: Joshua Simpson, Daniel Cutimanco, David Flaxer, Nicolas Montana

Summary

Miami's Northside neighborhood presents a significant opportunity for transformation and inclusive growth despite historical neglect and poverty. In contrast to neighboring areas experiencing gentrification, Northside awaits revitalization. A visionary real estate developer has the potential to lead this change through a mixed-use, transit-oriented development. By integrating affordable housing, workforce housing, commercial spaces, and educational facilities, the project can uplift the entire community. Crucially, the inclusion of educational programs aims to break the cycle of low-wage jobs, promoting upward mobility. Sustainability measures and public green spaces demonstrate a commitment to environmental stewardship and community well-being, setting a standard for responsible urban development. Investing in Northside goes beyond profit—it's about fostering social equity and creating a sustainable, vibrant community for future generations.

Third Place Winner WARRINGTON COLLEGE OF BUSINESS, UNIVERSITY OF FLORIDA

UF Team: Boyd Merrill, Ruben Restrepo, Zach Flaksman, Chris Kennedy & Alex Azar

Summary

Affordable housing is being introduced to Normandy through a multifamily development offering a mix of affordable and market-rate units. Affordable units will be priced at no more than 30% of gross income for households earning 20%-80% of the area median income. This initiative aims to alleviate housing cost burdens for over 50% of Jacksonville households, particularly those in impoverished areas, while also increasing housing supply. Inclusionary housing is expected to promote social cohesion between affordable and market-rate residents. The project aims to optimize affordability while aligning with financial constraints and internal rate of return projections, with plans for at least 231 affordable units. While not strictly adhering to the principles of a 15-minute city, the development aims to emulate this concept through an innovative 5-pointed star mobility model, ensuring essential services are conveniently accessible within a short distance.