A Message from the Childress Klein Center for Real Estate Director The Childress Klein Center for Real Estate continues to excel in its mission to elevate graduate studies in real estate and serve as a regional research hub for the field. This past year, the center returned to traditional in-person instruction while embracing new workplace trends. A signature event of the center, the monthly Master of Science in Real Estate Seminar Series, was held in person for the first time since January 2020. The 2021 State of Housing in Charlotte Summit, while held virtually this past fall, recorded its highest attendance in the center’s history. Spring 2021 also featured the return of in-person #CREfuture, an important discussion series featuring visionaries in the field. This year’s installment welcomed three real estate entrepreneurs who discussed the risks and opportunities associated with investing in commercial real estate. CKCRE events are critically important components of the 2021-26 Belk College Strategic Plan, which includes increasing engagement among students and the greater community and raising awareness of the impact of our research to the region. Working collaboratively with our many industry partners, students, faculty and alumni, the center is accomplishing significant achievements. I am honored to share this glimpse with you. Thank you for your support. Sincerely,
Dr. Yongqiang Chu, director of Childress Klein Center for Real Estate Childress Klein Distinguished Professor of Real Estate and Urban Economics
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About Us The Childress Klein Center for Real Estate at UNC Charlotte was established in 2005 with support from the real estate industry and program alumni. Their financial contributions have supported course development, scholarships for incoming graduate students, special events, distinguished professorships, and community outreach activities. The Childress Klein Center for Real Estate administers and supports: ● ● ● ●
The Master of Science in Real Estate, The MBA Real Estate Concentration, The Bachelor of Science in Business Administration Real Estate Concentration in the Finance major, and The Graduate Certificate in Real Estate Finance and Development.
The center also manages programming and outreach to the Alumni of the Center for Real Estate (ACRE) and the Childress Klein Center for Real Estate Advisory Board.
Mission Our mission is to advance knowledge in real estate, public policy and urban economics through graduate education, applied research, and industry/community collaboration. Primary goals include: ● ●
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Interdisciplinary Real Estate Education. To recruit and attract top real estate students seeking comprehensive and interdisciplinary education in commercial real estate studies, using faculty and practitioners to combine academic theory with industry best practices. Innovative Research in Real Estate and Urban Economics. To provide academic research and expertise that guide decision-making and offer solutions for urban development, land use, real estate investment, and capital market issues and foster innovative real estate theory, policy, and practice. Strategic Collaborations with Industry. To become a critical link between academics and industry, students and the community, and public and private sectors, including partnering with key trade organizations, an advisory board of real estate professionals, and other affiliated groups to provide community outreach on current real estate issues, to collaborate on applied research, and to enrich professional networks for our students and alumni.
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Leadership Dr. Yongqiang Chu Childress Klein Center for Real Estate Director, Childress Klein Distinguished Professor of Real Estate and Urban Economics Director
Daniel Wright M.S. in Real Estate Program Director, Lecturer
Dr. Kiplan Womack Associate Professor of Real Estate
Tom Mayock Associate Professor of Economics
Patrick Smith Associate Professor, John Crosland, Sr. Distinguished Scholar in Real Estate and Development
Staff Elona Ellis Program Manager
Meagan Conley Senior Director of Development
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The Power of Giving Below reflects the total generosity to the Childress Klein Center for Real Estate from altruistic alumni, corporate partners and friends.
*UNC Charlotte's fiscal year is July 1 – June 30 4 Childress Klein Center for Real Estate Annual Report Fall 2021 – Spring 2022
*UNC Charlotte's fiscal year is July 1 – June 30
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Scholarships and Fellowships Annual Year 2021-2022 Leveraging our Future Real Estate Talent Fourteen scholarships awarded to real estate students:
Alejandro Adarve MSRE Scholarship; Bunker Land Group, LLC Endowed Real Estate Scholarship
Brandon Mikell Empire Communities Scholarship
Diana Omerovic The Faison Scholarship
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Emily Cline Bissell Scholarship
Hutch Farris Batson-Cook Scholarship Corenet Global Carolinas Chapter Scholarship
Joyce Mitchell Commercial Real Estate Women (CREW) Charlotte, Inc. Scholarship
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Matt Gahrmann Institute of Real Estate Management Endowment Fund Sior Carolinas Chapter And Sior Foundation Scholarship
Micaylah Cunningham Childress Klein Scholarship
Morgan Hall Crosland Scholarship
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Steven Collazo Charlotte Regional Commercial Board of Realtors (CRCBR) Scholarship in Real Estate NC Realty Scholarship Real Estate Alumni Association (REAA) Communications Ambassador Scholarship
Steve Demaras The Faison Scholarship
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Research Through its community-centric research, the center encourages thoroughly-informed decision making in the marketplace. CKCRE faculty were published in eight research journals, with topics ranging from racial disparities among homeowners to political influence in mortgage lending. Publications Financial Management Journal of Finance Journal of Financial and Quantitative Analysis Journal of Corporate Finance Real Estate Economics Journal of Financial Intermediation Journal of Banking and Finance Journal of Housing Economics Research Topics Debt renegotiation and overhang Shareholder litigation Mortgage characteristics and the racial incidence of default New construction and mortgage default Political influence and banks Corporate social responsibility Debt incentives and bank risk taking Entitlement risk The JOBS Act and mergers and acquisitions Risky mortgage lending and the financial crisis Housing in Charlotte
Research Profile In one study, faculty researcher Tom Mayock discovered mortgage default rates among Black and Hispanic borrowers were significantly higher than white borrowers at the onset of the Great Recession. While lenders may offer mortgage products to improve minority homeownership, that expansion may again be brief. In the annual State of Housing in Charlotte Report, Yongqiang Chu noted that the COVID-19 pandemic disproportionately impacted minority borrowers and renters. In another study, Chu determined that banks increase mortgage approval rates in the home states of members of the Senate Banking Committee, and the approval rates are even more pronounced during reelection cycles. 10 Childress Klein Center for Real Estate Annual Report Fall 2021 – Spring 2022
State of Housing in Charlotte Report The Childress Klein Center for Real Estate is analyzing housing trends and helping to identify strengths and challenges affecting the fast-growing Charlotte housing market through its award-winning State of Housing in Charlotte report. The analysis aims to provide a comprehensive overview of the state of housing in Charlotte and the surrounding area and to examine how the markets have changed annually since the first report was written in 2019. The data-driven analysis of owner-occupied, rental and subsidized housing in Charlotte’s eight-county region, is informing government leaders, policymakers, members of the development sector and the public. The report, released in November 2021, was shared at CKCRE’s virtual State of Housing in Charlotte Summit, which included a presentation by CKCRE’s Director Yongqiang Chu and panel discussions. Dozens of TV stations, newspaper publications, and other online media outlets have utilized the State of Housing research. With support from our industry partners, the report is the go-to source for local journalists and media outlets who report on growth as they seek reliable data about all sectors of Charlotte’s housing market. In 2019, the Association to Advance Collegiate Schools of Business, the world’s largest business education alliance, recognized the State of Housing Report as an example of innovative collaboration; the Belk College was one of only 25 business schools acknowledged worldwide. The State of Housing in Charlotte is supported by these industry partners: ● ● ● ● ● ●
Canopy Realtor® Association Crosland Southeast Evergreen Strategies Foundation INLIVIAN Piedmont Public Policy Institute True Homes Inc.
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2021 State of Housing in Charlotte Highlights ● ● ● ●
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Affordable houses are becoming extremely difficult to find. Only 4.4% of the houses sold were under $150,000, and only about 35% of the houses sold were under $300,000. The supply of owner-occupied housing was extremely tight. Of all the houses sold in January 2020, about 16% of them sold above the listing prices. Compare that to June and July 2021, when the percentage reached a historic high of 59%. Middle-income housing affordability is becoming a significant challenge for the region. While the situation is alleviated by the low interest rate, the problem will become more severe when monetary policy tightens post-pandemic. The pandemic has affected African Americans and Hispanics disproportionately. At the end of September, nearly 10% of African American households statewide were behind on mortgage payments. African American and Hispanic renters also faced much higher eviction rates during the pandemic. Rental rates increased dramatically during the pandemic. In 2021, the average effective rent increased by $198 (or 16.6%) per unit. House price growth rates are accelerating in recent years. The average annual growth rate of median houses was 4.98% from 2010 to 2015, and 7.8% from 2015 to 2020. House price growth rates are much higher at the lower end than at the higher end in recent years. The 25th percentile of house prices increased at an annual rate of 8.37% from 2010-20, while the 75th percentile increased at a 4.31% annual rate. The Charlotte MSA has one of the highest population growth rates among Charlotte’s national competitor cities, with only Austin growing at a faster rate. Charlotte has lower land prices than all but three of its national competitor cities (Cincinnati, Indianapolis, and Memphis). However, the land prices in Charlotte are increasing at a faster rate than most other national competitor cities. Should these trends continue, Charlotte’s house prices will also increase at a faster rate.
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State of Housing in Charlotte Summit The third annual State of Housing in Charlotte Summit was held virtually on Nov. 17, 2021, to release the State of Housing in Charlotte report. The event opened with a presentation by Yongqiang Chu, director of the Childress Klein Center for Real Estate. The summit also included a panel discussion on affordable housing, which featured three local housing experts and moderator Kiplan Womack, associate professor of real estate.. More than 370 real estate professionals, government officials, journalists, students, and alumni attended the virtual summit – a record attendance. At least five media outlets covered the summit and ran subsequent stories about the research in the State of Housing Report. Affordable housing panelists:
Kris Fountain, Vice President of Family Services, Habitat Charlotte Region
Todd Williams, Chief Investment Office, Grubb Properties
David Kennedy, President, Canopy Realtor Association
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Academics Leading School for Real Estate In 2020, Commercial Property Executive ranked the Belk College of Business as one of the “Leading Schools for Real Estate.” The college was the only institution in the Carolinas to make the list, which features institutions that demonstrate a commitment to developing tomorrow’s leaders in the real estate industry.
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Master of Science in Real Estate (2021-2022) MSRE Graduates: 17 Real Estate Finance and Development Graduate Certificates Awarded: 3 Fall 2021 Enrollment:
Undergraduate Real Estate Concentration (2021-2022) Fall 2021 Enrollment:
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Community Engagement and Experiential Learning Considered the ultimate field trip, experiential learning enhances our student’s experience by supporting learning both inside and outside of the classroom. From student investment site visits to a tour of Uptown, there are endless opportunities for real estate students to practice new ways of thinking about and applying real estate investment concepts. Student-Managed Real Estate Investment Fund Thanks to a generous donation by Peter Fioretti, an investment was established in 2016 to provide students with real-world experience in the analysis, investment and management of private and public real estate securities. The fund, one of only a few in the country, provides students the opportunity to gain hands-on experience by actively participating in private real estate deals. Working closely with real estate faculty, students identify and evaluate real estate investment opportunities. The students then present the investments’ performance to a committee composed of faculty and real estate investment professionals.
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Through May 2022, the fund has committed $262,333 in nine investments. The following charts indicate the fund’s diversification, the sponsors with whom the fund has invested, and the geographic dispersion of investments.
A special thank you to Greg Verret and board members Landon Wyatt, Shippen Browne, John Ockerbloom, Kris Fetter, and Peter Fioretti, who attended the investment fund presentations.
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MSRE Seminar Series To further the mission of using industry and community collaboration to educate and develop real estate professionals, the center sponsors the MSRE Seminar Series to facilitate monthly discussions on relevant topics. These monthly seminars, open to current MSRE students, alumni and special guests of the center, include time for commercial real estate networking, Q&A and lunch in addition to a robust discussion on the featured topic. The seminars typically feature expert speakers from across the real estate industry. The in-person seminars returned during the 2021-22 academic year.
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#CREFuture Series #CREFuture is a panel discussion on forward-thinking topics in commercial real estate for current and future real estate leaders. Professionals in commercial real estate provide an insider perspective on their career paths, current projects making waves in the market and their experiences as young leaders in commercial real estate. This event brings current students, young alumni and friends of the center together to network and connect over engaging topics impacting tomorrow's real estate market. The spring 2022 event, themed in collaboration with Justin Webb, Belk Distinguished Professor of Business Innovation, returned to an in-person format. More than 115 industry professionals, students, and faculty attended the event. Topic: Envisioning Spaces: Entrepreneurship in Development Featuring: Steve McClure, CEO, The Spectrum Companies Todd Collins, founder and CEO, Red Hill Ventures Jane Wu ‘07, founder and CEO, Panorama Holdings, LLC Jake Alexander ‘22 M.S. in Real Estate, commercial real estate associate, Wells Fargo, moderated.
Media Outreach Center research and expertise are helping governmental officials and industry professionals, as well as the general public, better understand issues regarding housing and commercial real estate. Statewide media coverage during 2021-22 included: ● ● ● ● ● ●
Axios Charlotte The Charlotte Business Journal The Charlotte Observer WFAE (Charlotte) WCNC-TV (Charlotte) WNCN-TV (Raleigh)
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Childress Klein Center for Real Estate Board of Advisors As of Aug. 24, 2022 The CKCRE Board of Advisors is a core support group for the center. Members provide advice, and are active contributors as guest lecturers and mentors. Senior executives in the real estate industry, board members represent an array of functional areas related to real estate and urban development. Kris Fetter, Chair Faison Properties
Brad Smith, Vice Chair Bank of America
Henry Atkins, Atkins Properties H.C. Bissell, The Bissell Companies, Inc. Robert Brinkley, Womble Carlyle Sandridge & Rice, LLP Bryan Brooks, Medalist Capital, Inc. Jeff Brown, Moore & Van Allen Shippen Browne, Bellwether John Caruso, Neuveen Real Estate Dr. Yongqiang Chu, UNC Charlotte Walker Collier, Trinity Capital Advisors Alyson Craig, City of Charlotte John Culbertson, Cardinal Real Estate Partners, LLC Geoffrey Curme, Mt. Vernon Asset Management, LLC Anne Marie DeCatsye, Canopy Realtor® Association Darryl Dewberry, The Spectrum Companies Tracy Dodson, City of Charlotte Fred Dodson, Dreamkey Partners Jubal Early, Lincoln Harris Peter Fioretti, MREC Walter Fisher, Jr., Troutman Sanders LLP, Charlotte Office Paisley Gordon, Allen Tate Companies Doug Irmscher, Beacon Partners Leslie Johnson, Mecklenburg County Government
Fred Klein, Childress Klein Properties Kevin Lambert, Crescent Communities Daniel Levine, Levine Properties Ken Loeber, Foundry Commercial George Maloomian, Cambridge Properties, Inc. Charles McAlpine, CitiSculpt Fulton Meachem Jr., INLIVIAN Brent Milgrom, Jr., Parker Poe Adams & Bernstein LLP Chase Monroe, Jones Lang LaSalle Rob Nanfelt, REBIC Dionne Nelson, Laurel Street Compie Newman, CBRE John Ockerbloom, Barings Keith Poettker, Poettker Construction Curt Rigney, Batson-Cook Company Ed Rose, Shelco, Inc. Arthur Samet, Samet Corporation James Scruggs ‘19, Kingdom Development Partners Tim Sittema, Crosland Southeast Shannon Smith, Abundant Power Dr. Jennifer Troyer, UNC Charlotte Todd Williams, Grubb Properties Jane Wu ‘07, Panorama Holdings Landon Wyatt, Childress Klein Properties
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