Graaskamp Center Thanksgiving holiday hours

The Graaskamp Center will be closed Thursday and Friday November 24-25 for the Thanksgiving holiday.

Grainger Hall will be closing at 7:00 pm on Wednesday, November 23 and will be closed on Thursday, November 24 and the weekend following, November 26-27. Grainger will be open on Friday, November 25 from 7:00 am- 5:00 pm.

Have a good holiday everyone! You can also join the conversation on Twitter:

@UWMadison It's #Thanksgiving week: Before you leave town, tell us what you're thankful for on campus! #thanksuw

What opportunities are being sought out by Asian, European, and American investors? MIPIM Asia 2011

That was the question this morning for the panel at the wrap-up keynote at MIPIM Asia 2011. Discussion was led by Dean François Ortalo-Magné, with Yue Tang, attorney with Jun He Law Offices (China), and Dr. Megan Walters, head of research for Asia Pacific capital markets with Jones Lang LaSalle (Singapore).

Ortalo-Magné presented the results of the annual survey of conference participants, conducted by the Wisconsin School of Business in cooperation with HKUST Business School. The survey saw a justification of the optimistic outlook in Asia as reported at last year's conference, with more than half of participants reporting improved or at least the same level of business activity in the current quarter compared to the same quarter last year. "Cautious optimism" was a keyword for the future with two-thirds say they are more or as optimistic about the outlook than they were a year ago.

From Reed Midem:

The expert panel also noted increasing investment opportunities for international companies targeting mainland China as legislation seeks to open up the market to a diverse range of development companies.

Watch Part 1 of the wrap-up here. Visit mipimworld on youtube for Part 2-4.



Edited to add:

Open publication - Free publishing - More china

MIPIM Asia: Macroeconomic outlook and implications

Wisconsin School of Business Dean François Ortalo-Magné is in Hong Kong this week for the annual real estate property and investment conference MIPIM Asia. He facilitated the opening keynote session today with Robert Ciemniak, global head of Thomson Reuters Real Estate Markets, and Yiping Huang, professor of economics at the China Center for Economic Research at Peking University. On Thursday, Dean Ortalo-Magné will deliver the wrap-up presentation "Where do Asian, European and American investors see opportunities in Asia today?"

Visit live.mipimworld.com for the full conference schedule and more highlights





His visit to Asia is also part of the University of Wisconsin–Madison's efforts to develop stronger ties with China. The dean will join Gilles Bousquet, dean of the Division of International Studies and vice provost for globalization, and Laurie Dennis, associate director of the Wisconsin China Initiative, for meetings in Hong Kong and Shanghai.

Also participating in MIPIM Asia is real estate faculty member Joe Walsh who also leads Wisconsin's Global Real Estate Master (GREM) program, an intensive graduate-level program which is partnered with three of the world's top business schools: HEC Paris, Hong Kong UST, and INCAE. While in Hong Kong, he is meeting local real estate industry leaders and prospective students. The Global Real Estate Master (GREM), which graduated its inaugural class in 2011, is a unique two-phase program that combines high-level instruction in economics, finance, and real estate finance at one of the partner schools with training in the principles of international real estate during a capstone semester at Wisconsin. The program is now accepting applications for the 2013 semester.

Real Estate Students Embrace "Movember"

Seen an unusually high number of mustaches recently? If you’re near the Wisconsin School of Business, chances are the answer to that question is a definite “yes.” That’s because a team of over 20 MBAs, including six Real Estate students, have chosen to partake in the “Movember” movement that is sweeping the globe.

Pictured (from left): Andrew, Rob, Jordan, Jay, Jeff, and Andrew.

These students (myself included) have dedicated their facial "real estate" for the month of November to raise funds and awareness for men’s health, specifically prostate cancer and other cancers that affect men. During our endeavor to master the art of fine mustachery, we effectively become walking, talking billboards for the 30 days of November. Through our actions and words, we raise awareness by prompting private and public conversation around the often ignored issue of men’s health.

The team has already raised over $1,000, and there's plenty of time left in the month to keep the effort going! The movement has been a great way to connect with classmates and support a very worthwhile cause. Team captain Topher Stephenson has done a great job recruiting team members, and the Graduate Business Association has assisted in promoting the cause in the Grainger Squire. We are in an "MBA Challenge" network, in which we compete against other MBA programs across the globe for the most donations received. We are currently in 8th place, and hoping to continue the strong presence!

Interested in joining the team or making a donation? Visit team Mustache MBA homepage for details!

Andrew Toby is a first-year MBA student in the James A. Graaskamp Center for Real Estate. A CPA from California, Andrew hopes to utilize both his accounting background and the knowledge gained in the MBA program to pursue a career in private equity investments in real estate.

Real Estate Club Build Day with Habitat for Humanity!

On Friday, October 28, 2011, members from the UW Real Estate Club volunteered with the UW Madison Chapter of Habitat for Humanity, an organization that builds homes for families in need and provides mortgages at a zero percent interest rate. Included in the group were club members and Graaskamp Center affiliates Grant Keebler, Sam Schreiber, Kelsey Friederich, Alison Zuba, Courtney Flanders, and Martha Flanders (pictured left to right). We had gorgeous weather and a positive attitude - what better way to spend a beautiful Friday afternoon in Madison?

The house is being built for Song Vang (pictured far right), Neng Cheng, and their five adorable children. They currently live in an apartment building, infested with cockroaches and with landlords who do not care about their tenant’s living conditions. The family’s dream is to own a house one day with enough room for their children to grow up happy and healthy, in a loving and warm environment. Song devotes every weekend at the build site, working with different Madison volunteers and sharing his story. It was such a moving experience to work alongside the homeowner, Song, as his dream home was being built.

Construction began on October 1, 2011 and will continue into the winter. When we arrived, the basement was underway and we all worked on different projects ranging from measuring and cutting 2x4’s, nailing an interior wall together with three separate doorways, constructing the window supports, and a final (and very intense) group project involving the movement of a heavy shower base. The majority of the volunteers had minimal construction experience, so the day was spent learning from the other volunteer’s prior experience, from the projects director and UW-Madison Habitat representative Devin (pictured top left), from the homeowner Song, and from the project manager, Justin (pictured top right).

Working with Habitat for Humanity was an incredible experience, and is highly recommended by all of the volunteers who participated. If you are at UW student or employee and are interested in helping Song and Neng build their new home, contact Devin Burke at workprojects@uwhabitat.org. For more information about Real Estate Club volunteer opportunities, you can contact Courtney Flanders at flanders2@wisc.edu.

From full-time employee to full-time student

As part of our Meet Our Current Students series, first-year real estate MBA student Jordan Denzer reports on student real estate activities and life in general.

I’ve been in Madison for 2.5 months now. Coming from Texas, I’m thoroughly amazed at the fact that there are actually four seasons, as opposed to just two. Right now the leaves are changing colors and falling, but it’s not the standard Dallas version of trees shedding their foliage, where the leaves fall in two weeks and give an onlooker a limited visual appeal. Fall in Madison has a myriad of colors and seems in no hurry to leave. Unfortunately, both still require the prongs of a rake. I have also jumped into Madison’s bicycle culture, riding my bike as my primary means of transportation and am thoroughly enjoying it. I’ve gotten fenders put on it, so as to effectively navigate wet streets, and I understand that you can even get snow tires for winter riding, but I’ll wait and see how appealing that sounds once the snow starts hitting the ground.

I also have crossed off two items on my Wisconsin bucket list*. I have been both to a Badgers’ and Packers’ football game. While both have their strong suits, I must say that I enjoyed the Badgers’ game more than the Packers’. I love the experience of “sitting” (or more accurately, standing) in the students’ section. The student interaction with the activity of the game is great and keeps you on your toes for the next group response, counting of Bucky’s push-ups after a score or jingling of keys for a kick-off. Of course, I can’t forget to mention the “Jump Around” explosion that happens after every third quarter – those are a blast! Unfortunately though, the Badgers have now lost two games in a row (Michigan St. and Ohio St.), so any hopes of contending for the national championship are down the drain. That said, the Packers are still in the hunt, and I had the pleasure of seeing them dismantle the St. Louis Rams with a fellow international student (Canadian) at Lambeau. An unpleasantry of the Lambeau experience was dealing with scalpers and paying three times face value for our tickets. The game wasn’t nearly as interactive as the Badgers’ game either, but it did have redeeming qualities. First of all, I was in a football shrine at Lambeau and loved it. Second, the group of people I attended the game with moved tailgating from its normal pre-game position, to a 9 to 5 endeavor. Only two of the 20+ in our group went to the game, as all others stayed in the parking lot the entire time, but they weren’t lacking in comforts, as we came with a fully-enclosed packed trailer, a generator and more food and beverages than you could shake a stick at.

*Wisconsin Bucket List:

• Badger football game: check

• Packer football game: check

• Ice fishing: pending

Now regarding academics (what I’m really here for), specifically the real estate program, there is much to be said. Two weeks ago, the Graaskamp Center had the fall meeting of its Board of Advisors, a group of senior level real estate industry leaders who are alumni and friends of the program. The meeting’s theme was, "Real Estate in Recovery: Navigating a New World of Risk and Reward", and the keynote speaker was author, UW professor and geo-political expert Jon Pevehouse. Following dinner at the newly-finished Wisconsin Institute for Discovery, Pevehouse spoke regarding geo-political events in the past and present and their impact on current economic situations. One memorable point of the talk was a test that had been used to indicate the corruption level of a nation’s government. Pevehouse cited a study that had been done in New York City on parking tickets received by diplomats of foreign embassies, and he showed that the home countries of the diplomats who received the most parking tickets lined up well with high corruption levels in those countries. The following day was filled with panel discussions on the “New Risks of Global Economy,” “Understanding the Global Economy,” “Public Real Estate Markets,” “Global Strategies of Private Equity in Real Estate,” and “China’s Rise.” Between panel discussions, I had, along with the other MBA students, had the great opportunity to network with board members and discuss current issues in real estate.

On the class work front, my real estate class this semester, Real Estate Finance, has its first exam this week, so it has been a steep learning curve for this career changer (previously I managed corporate flexible spending accounts). Not only am I familiarizing myself with the various financial components involved with real estate, but I am also learning how to use my financial calculator appropriately. I’m currently using a TI BA II Plus calculator, and I encourage any prospective students reading this blog to familiarize themselves with that calculator, unless you already have a financial calculator with which you’re comfortable. The more you have under your belt prior to entering the program, the more it will serve you in the long run, as you’ll be able to focus solely on the course material and will not have to worry regarding calculators and computer programs. That said, I’ve found that classmates who are more advanced in certain subject matters are eager and willing to help you, so it makes for a supportive learning environment. You don’t feel like your out on an island, but that you are in it together with your classmates.

Later this month, I’m looking forward to hearing from Dan McCaffery, Chairman and CEO of McCaffrey Interests in Chicago. He will be the featured speaker in the E.J. Plesko Distinguished Speaker Series in Real Estate Development on November 11. The series features developers who embody the "Wisconsin tradition" in their spirit, imagination, entrepreneurial skills, and enthusiasm for improving the quality of the built environment. It's also a great complement to the Center's real estate curriculum.

Jordan Denzer comes to Madison from Dallas, TX (it is often joked that he is one of the international students). Previously, Jordan managed corporate flexible spending accounts, but decided that he wanted to get into real estate development, which initiated the move to Madison. Currently, Jordan is interested in getting into historic redevelopment and/or mixed-use development projects.

Mortgage REITs: too hot to touch?

By Erwan Quintin, Assistant Professor of Real Estate at the Wisconsin School of Business

At a time where a wall of cash is sitting on the sidelines looking for yield, mortgage REITs have garnered a lot of attention. The recipe is simple: 1) borrow short term at rates currently near 0% and invest in mortgages or mortgage-backed securities, 2) lever highly, and voila, dividend yields close to or in excess of 20%.

The catch behind these lofty yields, of course and as always, is risk. Minor changes in the spread between mortgage rates and short rates can cause yields and market valuations to fluctuate wildly. The past few weeks are evidence of that, as the Motley Fool explains here.

At this juncture, a mortgage REIT play is a bet that the yield curve will continue to slope sufficiently up for sufficiently long. The Fed has promised to keep the short-end down until 2013 but, at the same time, has announced its intentions to bring the long-end down. Its ability to deliver on both objectives will define mortgage REIT returns over the next few quarters. As the Motley Fool writes, REITs can take steps to mitigate their exposure to yield curve inflections, choose their preferred location on the yield/risk menu, and in the process target investors with different tolerances for risk.

Discussing causes and consequences of the housing crisis at the Chicago Fed

By Erwan Quintin, Assistant Professor of Real Estate at the Wisconsin School of Business

The Real Estate Department's Housing-Urban-Labor-Macro (HULM) conference took place this weekend at the Federal Reserve Bank of Chicago. The conference, a bi-annual event founded three years ago by my colleague Morris A. Davis, brings together individuals who are pushing the frontier in all aspects of real estate research. It is now recognized in academic circles as one of the premier events in urban and housing finance research.

As one would expect, much of the event focused once again on the causes and consequences of the recent housing crisis. No fewer than three competing explanations were proposed for the run-up of home prices until mid-2006 and their sharp collapse thereafter: the unintended consequences of the toughening of personal bankruptcy statutes in 2005, the role of speculators on the way up and the way down, and plain-old herd behavior. A session -- highlighted by presentations by UW's own Randy Wright and Morris Davis -- discussed the impact of inflation on housing investment and prices. Several papers also took on standard themes in urban research: Why do productivity and wages differs so much across cities? What accounts for patterns of trade across cities? Details and papers are here.

A unique aspect of this event is the collaboration it fosters between academic researchers who study optimal policy responses to various real estate events and the very people who implement these policy responses, including not only Federal Reserve economists but also researchers from government-sponsored agencies (GSA). The next installment of the conference will take place at the Federal Reserve Bank of Boston in March 2012.

Applying for the Wisconsin MBA in Real Estate: Tips from the Associate Director of Recruiting

The application season for Fall 2012 admission to the Wisconsin MBA is now underway. The first round deadline is November 4, 2011. We sat down with Sharon McCabe, Associate Director of Recruiting and Career Services for the Graaskamp Center, to talk about the admissions process and her suggestions for candidates for an MBA in Real Estate.

Is a business background required and how much work experience should a candidate have?

In general, our MBA students in real estate have 4-5 years of professional work experience; the Wisconsin MBA requires a minimum of two years. Some students come from real estate or finance related functions. But just as real estate is a multi-faceted industry, our students come from many backgrounds including economics, engineering and law, even politics.

What I think is more important than a specific type of past training, is life experience. We believe that the real-life experience that every student brings into the classroom is very important. Our students come to Wisconsin with strengths along different dimensions, and through our program round out their skill set in real estate.

What GMAT or GRE score is needed?

A Graduate Management Admissions Test (GMAT) score taken within the past five years is required. The GRE may be accepted, on a case by case basis, in lieu of the GMAT. The real estate program is very competitive with average GMAT scores in the upper 600s, but the range for individual students is broad. We look beyond test scores to a candidate's whole application when making our admissions decisions. However, we do give particular attention to the quantitative dimension of the score. Familiarity with quantitative concepts-business ratios and balance sheet basics-is a good foundation to have. While real estate may be a relationship driven business, it's a practical, numbers driven business too.

What else do you look for in a candidate?

I think, most of all, the thread that connects the most successful practitioners in real estate is passion for the craft. That passion can manifest itself in different ways. For some, it starts as an interest in construction, how things get built. For others, it's a consciousness of the built environment or an appreciation of how development can affect a neighborhood or community. For still others, it is the realization that real estate investment can be both tangible and profitable. I think it's important for MBA candidates to be aware of their own journey to this point and to be able to articulate their unique passion for real estate.

What career options are available for graduates with an MBA in real estate?

The Wisconsin MBA in Real Estate is designed to challenge our students to reach their potential as talented, passionate and socially responsible leaders in real estate. Through the exceptional breadth and depth of our curriculum, access to world-class faculty and practitioners, and our global alumni and industry connections, our students are uniquely prepared for their careers and to make their mark on the urban landscape. Graduates commonly follow five basic career paths: development, lending and financing, asset and portfolio management, advisory services, and economic development and public policy. They also have access to a wide variety of resources to support them during the job placement process.

I have seen an increasing number of opportunities available to our students, even as the challenges to the economy continue. Real estate is a fundamental part of the economy; everybody needs it. Trends in population growth indicate an expanding need for both residential and commercial space. Even if population growth stopped, buildings age and need replacing, technology changes and facilities need upgrading. Real estate as an industry is remarkably resilient.

What's the best way to find out more about the Wisconsin MBA in Real Estate?

Come to campus! We're available Tuesdays and Thursdays during the fall semester to host prospective students. Sign up online for a day on our campus in Madison which includes a visit to a class, lunch with a current MBA student, and interviews with me and with the admissions office for the Wisconsin MBA. I think it's a fantastic opportunity to see our beautiful campus in person and to help us get to know our candidates better. But if coming to Madison isn't possible, I am happy to talk with prospective students over the phone or I can connect candidates with one of our real estate alumni in their area. We have some of the most active and engaged alumni in the industry who are amazing ambassadors for our program.

When should candidates apply?

We are taking applications now for the Fall 2012 intake. Wisconsin offers four application rounds; the first round deadline is November 4th. Candidates can visit the Wisconsin MBA Admission web page for dates and more information on the application process. While we look for the best candidates throughout the process, I would encourage candidates in real estate to apply in the first two rounds.


The decision to pursue an advanced degree in real estate is a personal one, and the reasons vary widely. What the Wisconsin MBA in Real Estate offers is this: the foundation in business of an MBA and the specialized focus of a master's degree in real estate. The innovative and top-ranked program at Wisconsin is an in-depth real estate graduate education experience you won't get anywhere else.


Contact us today:

Sharon McCabe
Associate Director of Recruiting and Career Services.
Phone: 608/890-2493
Email: smccabe@bus.wisc.edu


Sharon L. McCabe is an associate director within the Graaskamp Center for Real Estate and a faculty associate in the Real Estate and Urban Land Economics Department, both in the University of Wisconsin-Madison School of Business. Over the last ten years, Sharon has taught several different classes at both the graduate and undergraduate level. Sharon also is actively involved in the recruitment, retention and placement of the real estate MBAs in the program.

Sharon has spent over 20 years in the real estate industry as a market analyst, appraiser, assessor and instructor. She has experience valuing all types of commercial properties including shopping centers, hotels, office buildings and both market-rate and subsidized apartment buildings. As a commercial assessor for the city of Madison, she was responsible for valuing over 1,000 properties worth over $1 Billion dollars for ad valorem taxation purposes.

Sharon has a Bachelor’s of Science degree in Urban Land Economics and a Master’s of Science degree in Real Estate Appraisal and Investment Analysis, both from the University of Wisconsin- Madison. She is a real estate broker, certified general appraiser and a licensed real property assessor.

Innovator award recipient Michael Ashner shares career insights with students

As part of our Meet Our Current Students series, first-year real estate MBA student Jordan Denzer reports on the fall presentation of our Innovator Award.


Michael Ashner, Chairman and CEO of Winthrop Realty Trust received the Real Estate Club's Innovator Award at its first official meeting of the Fall 2011 semester on September 23rd at the Pyle Center. Truly an innovator in the real estate industry, Ashner was chosen for the award for founding the first ever group of tender offers for publically traded real estate companies.

Serving as the Chairman and Chief Executive Officer of Winthrop Realty Trust since 2004, Ashner's company acquired over $12 billion of real estate, including 85,000 apartment units, 50 million square feet of office, retail, and industrial assets and 1,000 hotel rooms. Ashner also served as the Chairman and Chief Executive Officer of Winthrop Realty Partners, L.P., a vertically integrated property management firm, since 1996. Winthrop Realty Partners has managed more than 500 limited partnerships, of which in excess of 50 were publicly reporting with over 100,000 investors, as well as five publicly traded REITs.

Graaskamp Center Executive Director Michael Brennan began the evening's discussion by citing Alexis de Tocqueville's statement, "we bear the mark of our origins" and asked Ashner to discuss his roots and his career progression to where he is today. Ashner began by saying that after he received his undergraduate degree in philosophy from Cornell, he quickly "realized a need to eat and to have shelter," so he decided to pursue his JD at the University of Miami.

Ashner initially worked as an attorney in corporate securities, where he learned about REITs and real estate syndication. This experience eventually led him to leave the legal professional and become a buyer of failing real estate syndications. He quickly learned how to value real estate and the nature of how markets ebb and flow. Ashner said he does not believe in efficient-market theory, "Value investing is a proposition in which the investor is betting against the generally held beliefs of other investors, as indicated by their actions in the market. If you think where you are is correct, and you've done the valuation, then make the bet."

He also discussed the difficulties in the valuation effort, stating that valuations will always be wrong because no one can accurately forecast value. Despite all number crunching and scenario analyses, "if a butterfly burps in China, then your Argus evaluation is going to be wrong."

Ashner's candor and insight was both captivating and instructional for students and staff alike. The Real Estate Club thoroughly enjoyed his visit and we are proud to have been able to present him with the Innovator Award.

The Innovator Series Award was conceived from the paper entitled "The Wisconsin Program in Real Estate and Urban Land Economics: A Century of Tradition and Innovation," written by Stephen Malpezzi, Chair of the Real Estate Department. The paper's central theme is that a rich history cannot be established without continually implementing innovation. Previous recipients of the award include Nicholas Billotti of Turner Construction, Laurence Geller of Strategic Hotels and Resorts, David Brain of Entertainment Properties Trust and Hersch Klaff of Klaff Realty.

Jordan Denzer is a first-year MBA student in the James A. Graaskamp Center for Real Estate. Jordan arrived in Madison from Dallas, where he previously worked in the benefits administration field for CONEXIS. He obtained his BBA in International Business from Stephen F. Austin State University.