Childress Klein Center for Real Estate 2022-2023 Annual Report

2022–2023 ANNUAL REPORT

A Message From Childress Klein Center For Real Estate

Director Yongqiang Chu

The Childress Klein Center for Real Estate continues to advance in its mission to elevate graduate studies in real estate and provide leadership as an urban research hub. This past year, the center has generated new knowledge, prepared career professionals and inspired collaboration, with the support of industry professionals, companies and organizations.

The 2022 State of Housing in Charlotte Summit sparked a high level of interest during the community event at The Dubois Center at UNC Charlotte Center City. The impact was magnified through news media coverage and in-depth discussions and community presentations.

In addition to the State of Housing in Charlotte Report, faculty with the center published in leading journals, with topics ranging from racial disparities among homeowners to political influence in mortgage lending.

Also in 2022, the Steven Ott Distinguished Professorship was endowed to recruit a nationally recognized teacher and scholar in the area of real estate, and a search is under way.

The Master of Science in Real Estate program in 2022 marked the 10th anniversary of its inaugural graduating class. The program has seen virtually 100% employment, including with the May 2023 graduates.

Working collaboratively with our many industry partners, students, faculty and alumni, the center is accomplishing significant achievements. We are honored to share this summary of the center's activities with you.

Thank you for your support.

Sincerely,

Dr. Yongqiang Chu, Director of the Childress Klein Center for Real Estate Childress Klein Distinguished Professor of Real Estate and Urban Economics

CChildress Klein Center for Real Estate Annual Report Fall 2022 – Spring 2023

About CKCRE

The Childress Klein Center for Real Estate (CKCRE) 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 graduate students, special events, distinguished professorships, and community outreach activities. The center has ranked among the 20 most active research institutions in real estate for the past decade.

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

• The Graduate Certificate in Real Estate Finance and Development

The center also manages programming and outreach to alumni, industry and community members and the Childress Klein Center for Real Estate Advisory Board.

Mission and Key Goals

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 are focused on:

● 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 to 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.

Center Leadership

Daniel Wright M.S. in Real Estate Program Director, Senior Lecturer

Dr. Kiplan Womack Associate Professor of Real Estate

Dr. Yongqiang Chu Childress Klein Center for Real Estate Director, Childress Klein Distinguished Professor of Real Estate and Urban Economics

Meagan Conley Senior Director of Development

Dr. Patrick Smith Associate Professor, John Crosland, Sr. Distinguished Scholar in Real Estate

Center Board of Advisors

The Childress Klein Center for Real Estate Board of Advisors is a core support group for the center. Members provide advice and are active contributors as guest lecturers and mentors. As senior executives, board members represent an array of functional areas related to real estate and urban development.

Executive Committee

Kris Fetter, Chair, Faison Properties

Fred Klein, Childress Klein Properties

Landon Wyatt, Childress Klein Properties

Yongqiang Chu, Belk College of Business

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

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,

Charlotte Regional Realtor®

Darryl Dewberry, The Spectrum Companies

Fred Dodson, Dreamkey Partners

Tracy Dodson, City of Charlotte

Jubal Early, Lincoln Harris

Kris Fetter, Faison Properties

Peter Fioretti, MREC

Walter Fisher, Jr.,

Troutman Sanders LLP, Charlotte Office

Paisley Gordon, Allen Tate Companies

William Harrison, TH Real Estate

Doug Irmscher, Beacon Partners

Leslie Johnson,

Mecklenburg County Government

Shawn Kimble, Barings

Fred Klein, Childress Klein Properties

Kevin Lambert, Crescent Communities

Bradley Smith, Vice Chair, Bank of America Merrill Lynch

Peter Fioretti, MREC

Dolly King, Belk College of Business

Daniel Levine, Levine Properties

Ken Loeber, Foundry Commercial

George Maloomian, Cambridge Properties, Inc.

Lindsey 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

Perry Quick, Fifth Third Bank

David Ravin, Northwood Ravin

Curt Rigney, Batson-Cook Company

Pat Rodgers, Rodgers Builders Inc.

Ed Rose, Shelco, Inc.

Arthur Samet, Samet Corporation

James Scruggs ‘19, Kingdom

Development Partners

Glen Sherrill, SteelFab, Inc.

Tim Sittema, Crosland Southeast

Bradley Smith, Bank of America

Merrill Lynch

Shannon Smith, Abundant Power

Frank Warren, Helen Adams Realty

Marcie Williams, RKW Residential

Todd Williams, Grubb Properties

Jane Wu ‘07, Panorama Holdings

Landon Wyatt, Childress Klein Properties

Board list is as of August 2023.

The Power of Giving

Below is information that 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

UNC Charlotte's fiscal year is July 1 – June 30.

Scholarships and Fellowships

The commitment from real estate industry members and MSRE program alumni to supporting the Center's goal of attracting top real estate students has led to the development of CKCRE scholarships. Financial contributions from MSRE alumni and other benefactors have funded scholarships for students in the program who benefit from comprehensive and interdisciplinary graduate education in commercial real estate studies. In the 2022-2023 academic year, 11 students received 13 awards of support.

Evan Barish

Charlotte Regional Commercial Board of Realtors (CRCBR)

Emily Benedict

Bissell Scholarship

Charlie Coffey Batson-Cook Scholarship

Matt Gahrmann

Faison Scholarship

SIOR (Society of Industrial and Office Realtors) Scholarship

Kaylah Henderson

Commercial Real Estate Women (CREW) Charlotte, Inc. Scholarship

MSRE Ambassador Scholarship

Jarrod Jones

IREM Scholarship

Paola Navarette

Empire Communities

Ella Ott

Crosland Scholarship

Charlie Shepherd Bunker-Land Group Scholarship

Carley Souder

Faison Scholarship

Wyatt Street

CKCRE Scholarship

Scholarship Recipients' Observations

Two of the 2022-23 scholarship recipients shared thoughts about what their scholarships and experiences with the MSRE program have meant to them.

"Between having a full-time job working for Harkins Builders, serving as an Engineering Officer in the National Guard, and being a candidate for the MSRE and MBA programs, there are multiple responsibilities pulling me in different directions. Being able to take financing my education off my list of responsibilities has allowed there to be no financial stress associated with my degrees. These scholarships have also enabled me to focus more on my education.

The highlight of the MSRE program was the study abroad trip to Ireland. Getting to learn about another culture's real estate issues and opportunities while experiencing a new country with classmates and professors was an amazing opportunity that I would do again in a heartbeat. Another attraction was the diverse coursework involved in the program, the reputation of the professors in the program, and being able to easily converge the MSRE and MBA programs to open opportunities and networks further in my career."

Charlie Shepherd

The investment fund gave me an opportunity to gain a level of exposure to the professional world outside of the classroom that would be hard to achieve in any other class. As a fund manager for the student-managed real estate fund, I was able to work closely with faculty, classmates, and real estate professionals on actual real estate deals.

I enjoyed the collaborative environment, where everyone can bring new experience to the table. Attending real estate events, tours, and meeting new people was also a highlight of my experience, which helped me make connections that have lasted into my current role. On a day-to-day basis I find something that I can relate back to the SMREIF. It has helped me immensely with becoming successful at my current job, as well as other courses that I was taking simultaneously. I came into the program with little real estate background, which seemed intimidating initially, but my confidence grew exponentially through the SMREIF.

Charlie Coffey

Alumni Advance Community, Society

Alyson Craig ’13 M.S. was named planning director for the city of Charlotte in 2023 after serving as interim planning director and deputy planning director. She previously directed the Charlotte MSRE program and held urban development roles at Grubb Properties and other companies.

Now, Craig manages a team of more than 100 employees. The team oversees community area planning, property rezoning requests, geographical information systems, historic districts, urban forestry protection and development-related permits.

In June 2021, Charlotte adopted its first comprehensive planning document in 45 years, which enabled the Planning Department team to reestablish public engagement using long-term goals. Previously, she helped create Charlotte’s first unified development ordinance that consolidated and modernized eight development ordinances that the city had adopted during the past 30 years

Liz Ward ‘14 M.S. was one of 25 business school graduates honored by AACSB International — the world’s largest business education alliance — in its 2023 Class of Influential Leaders.

This annual initiative recognizes notable alumni from AACSB-accredited business schools whose inspiring work serves as a model for the next generation of business leaders.

Ward was honored for her work in affordable housing and upward mobility. She combined her experience in real estate, banking and affordable housing development to found Give Impact LLC. Recognizing the city of Charlotte’s housing instability challenges, Give Impact provides clients with customized solutions that focus on maximizing their ability to effect positive change through affordable housing.

James Scruggs ‘19 M.S. is the CEO and President of Kingdom Development Partners, LLC, which has a unique ministry dedicated to changing the way elders live and are cared for. KDP’s strategy is to decrease the inequality gap by building and constructing for sale diverse price point communities where families can accumulate wealth and leave a legacy through homeownership.

Scruggs has over two decades in real estate development, construction, and brokerage and a successful career as a bond trader. He also is CEO with J.S. & Son's Construction Company, LLC and president of Unlimited Possibilities (UP) Family Care Home.

Scruggs and Liz Ward have formed The Better Together Scholarship at Charlotte for emerging minority leaders in real estate, inspired by their experiences with the MSRE program.

MSRE Program Celebrates 10th Year

In 2022, Charlotte’s Master of Science in Real Estate marked the 10th anniversary of its inaugural graduating class, with virtually 100% of degree holders employed since the program began. Daniel Wright, program director and senior lecturer in real estate, credits an unprecedented level of support from the region’s real estate industry as a major factor contributing to the program’s progress and success.

In 2020, Commercial Property Executive ranked the Belk College of Business as one of the “Leading Schools for Real Estate.” Belk 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.

CKCRE Researchers

Yongqiang Chu is Director of the Childress Klein Center for Real Estate and Childress Klein Distinguished Professor of Real Estate and Urban Economics and Professor of Finance at the UNC Charlotte Belk College of Business. Dr. Chu conducts research in real estate, corporate finance, and banking. His research has appeared in many top finance, real estate, and economics journals, including Review of Financial Studies, Journal of Financial Economics, Management Science, Journal of Financial and Quantitative Analysis, Review of Economic Dynamics, and Real Estate Economics.

Kiplan S. Womack is Associate Professor of Real Estate in the Belk College of Business at the University of North Carolina Charlotte. His research focuses on applying the principles of financial option pricing to the valuation of real estate (real options), land values, development, redevelopment, as well as corporate finance issues (particularly mergers and acquisitions) faced by Real Estate Investment Trusts. Dr. Womack has over ten years of professional experience in corporate finance and real estate.

Patrick Smith is Associate Professor and John Crosland, Sr. Distinguished Scholar in Real Estate in the Finance Department at UNC Charlotte. Before graduate school, he worked in industry for nearly a decade, holding various positions of increasing importance in corporate finance and business analytics. Dr. Smith's research interests include real estate finance and urban economics. His current research uses housing transaction and mortgage data to inform public policy.

Research Profile

Through its community-centric research, CKCRE advances topics with relevance for policymakers, government leaders, other researchers and consumers. Center faculty were published in leading research journals, with topics ranging from racial disparities among homeowners to political influence in mortgage lending.

As just one example of the far-reaching impact of the research, the paper School Quality as a Catalyst for Bidding Wars and New Housing Development provides new evidence of the demand for better schools as seen in bidding wars and changes to the built environment. Another study, Venture Capital and Corporate Social Responsibility, examines the impact of venture capital (VC) on corporate social responsibility performance in China. Exploiting the timing of VC exit, the research study finds that the corporate social responsibility performance of VC-backed companies improves after the exit of VC.

Media Outreach

Center research and expertise help policy officials, industry professionals and consumers better understand issues regarding housing and commercial real estate. Media coverage included WFDD, WFAE, WCNC, CBS-17, The Charlotte Observer and WBTV.

Research Productivity

From 2018 to 2023, the Center's researchers demonstrated a notably high level of research output, with a significant numbers of papers published in leading journals, particularly when compared to faculty at larger, top-tier institutions with greater numbers of faculty focused on real estate.

State of Housing in Charlotte Report

The Childress Klein Center for Real Estate issued its annual State of Housing in Charlotte Report. First released in 2019, the award-winning report is critical and applicable research that offers a starting point for discussions regarding housing policy in the Charlotte region. The report seeks to provide a comprehensive, data-driven analysis of the state of housing in Charlotte and the surrounding area and is intended for use by policymakers, market participants and residents of the region as they make decisions regarding housing and housing markets.

The report draws from seven primary data sources and focuses on Mecklenburg County and surrounding counties: Cabarrus, Gaston, Iredell, Lincoln, and Union in North Carolina, and Lancaster and York in South Carolina. The report is the go-to source for news media seeking reliable data about the Charlotte region's housing. Dr. Chu also presents information from the report at events and to organizations focused on housing issues, including in 2022 at the City of Charlotte Housing and Jobs Summit, a Centralina Regional Council meeting, a Charlotte Regional Business Alliance session and the Canopy/CBJ Outlook on Housing and Housing Affordability. Media coverage included WSOC TV, WFDD Public Radio, CBS 17, Charlotte Magazine and WBT Radio.

2022 Report Highlights

• House prices increased at an unprecedented rate during the pandemic. The median home prices in the Charlotte market increased from $273,500 in January 2020 to $420,000 in September 2022.

• The COVID-19 pandemic disrupted the supply side of the housing market. The number of housing units added was much less than the increase in the number of housing units in 2020 and 2021.

• While the housing market continued to be tight, it had shown some signs of softening since the summer of 2022. The median number of days on the market had increased from three days in May 2022 to nine days in September 2022.

• Houses priced affordably had become extremely difficult to find. Only 3.8% of the houses sold were under$150,000 and only about 25% of the houses sold were under $300,000.

• Middle-income housing affordability was becoming a significant challenge for the region. The rising interest rates and house prices made housing quickly unaffordable in the Charlotte region.

• Rental rates also increased dramatically during the pandemic. In 2021, the average effective rent increased by$198 (or 16.6%) per unit.

Report Sponsors

● Faison, Platinum Sponsor

● Canopy Realtor® Association, Gold Sponsor

● True Homes, Silver Sponsor

● Greater Charlotte Apartment Association, Bronze Sponsor

● Anne Marie DeCatseye, Friend Sponsor

● Kingdom Development Partners, Friend Sponsor

State of Housing in Charlotte Summit

The 2022 State of Housing in Charlotte Summit, in its fourth year, brought 320 developers, government officials, and community stakeholders together on Nov. 15, 2022 for an exclusive first look at the State of Housing in Charlotte Report, which detailed:

• A comprehensive inventory of the current housing stock

• An analysis of housing affordability across all income levels

• A high-level comparison of the Charlotte regional housing market

• A comprehensive look at owner-occupied, rental, and subsidized housing in the Charlotte region

• How the market has changed since the first State of Housing Report in 2019

• How house price growth rates have fared during and after the COVID-19 pandemic

• A long-term view of the dynamics of the housing market over the last two decades

Center Director, Expert Panel Provide Context

Yongqiang Chu, director of the Childress Klein Center for Real Estate, presented the report. Three local real estate experts also provided perspectives during an industry panel discussion moderated by Patrick Smith, who is the John Crosland, Sr. Distinguished Scholar in Real Estate and Development. Panelists were:

• Scott Wilkerson, Chief Investment Officer, Gingko Residential, LLC

• Brenda Hayden, Realtor®/Broker with Keller Williams, 2022 Chair of the Real Estate & Building Industry Coalition

• Mark Boyce, Founding Partner, True Homes

Engagement Through Experiences

Engaged learning opportunities expand students' ability to immerse themselves in topics they are learning and to connect with industry experts. Students in the Belk College of Business program participate in investment site visits, tour sites, meet with industry leaders and participate in presentations. They find endless opportunities to explore new ways to consider and apply real estate concepts.

Student-Managed Real Estate Investment Fund (SMREIF)

The student-managed real estate investment fund provides 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, permits students to gain in-depth experience by actively participating in private real estate deals. Working closely with real estate faculty, and industry mentors, 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.

Real Estate Investment Fund Status

As the fund acquires investments in its portfolio, students manage and evaluate performance through investment life cycles. Since inception, the fund has placed approximately $340K in 11 investments Shown here are the fund’s diversification, the sponsors with which the fund has invested, and geographic dispersion of current investments.

To further its focus on expanding industry and community collaboration to educate and develop real estate professionals, the Childress Klein Center for Real Estate created a seminar series to facilitate regular discussions on relevant topics. These invitation-only seminars occur on Friday afternoons and include time for networking, Q&A and lunch in addition to a robust discussion on the featured topic.

The sessions feature expert speakers from across the real estate industry and set aside time for stimulating discussion of the topics featured. The five seminars in the 2022-23 series attracted 215 attendees to learn from a wide range of talks by diverse speakers.

Study Abroad Expands Understanding, Knowledge

Students in the MSRE program also have the opportunity to study and travel abroad to broaden their understanding of other cultures and of real estate sectors in other countries. Most recently, students and faculty traveled to Dublin, Ireland, where they met with real estate and development experts who provided a global perspective.

#CREFUTURE

Moderator Wyatt Street '23 MSRE of North State Development joined panelists Jeff Beck, Vice President for Life Sciences Project Delivery at Wood, and Elizabeth McMillan, Vice President for Development, THE YIELD by Crescent Communities. "What a gem for Charlotte and the real estate community," McMillan said of the MSRE program.

#CREfuture features a panel discussion on forward-thinking topics in commercial real estate for future real estate leaders. Young professionals in commercial real estate provide an insider perspective on their career paths, current projects making waves in the market and their experiences as emerging leaders in commercial real estate. The event brings together current students, young alumni and friends of the Childress Klein Center for Real Estate to network and connect over engaging topics impacting the real estate market

Close to 30 students, alumni and other industry professionals convened for a moderated panel discussion on April 21 on commercial real estate development in the life sciences industry, as the latest installment in the #CREfuture series.