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The Kenan-Flagler Business School Foundation Real Estate Investment Fund recently invested in a condominium project in Washington, D.C. This is the fund’s fourth investment in the past two years and completes placement of the first half of the $2.1 million of capital committed to the fund.

UNC-Chapel Hill’s Kenan-Flagler Business School formed the real estate fund in 2007 as the first student-run real estate fund in the United States.  With help from friends of the University, the fund raised $2.1 million to invest in real estate development and redevelopment projects. It operates through Kenan-Flagler’s Center for Real Estate Development.

Master of business administration students act as fund managers and identify real estate-related investments on behalf of the fund. Currently, seven second-year MBA students manage the fund’s daily activities with oversight from Kenan-Flagler faculty members and target investments that provide superior returns on a risk-adjusted basis.

The recent condominium investment was structured as part of a mezzanine loan to finance completion of a 39-unit condominium project in the historic Woodley Park neighborhood.  The unique and complex nature of the mezzanine transaction provided excellent learning experiences for the student managers.

They continue to search for additional real estate-related investments that meet the fund’s return targets. For more information, contact Susan Drake, associate director of the Center for Real Estate Development, at (919) 962-3219 or This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .

Kenan-Flagler contact: Allison Adams, (919)962-7235, This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
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