個案總覽

In March 2008, a group of investors considered purchasing 8,300 residential lots in 11 states from one of the largest U.S. homebuilders, at a price of 10 cents on the dollar. The deal would also involve purchasing a partially-built condominium complex, also at a substantial mark-down from the amount already invested. This case describes the residential real estate development business and the role of land in homebuilding. It describes the excesses leading to the housing crisis in 2008. The case is based on a real situation, but company names and some details have been changed.

n November 2008, in the depths of the worst financial crisis since the Great Depression, Hamid Moghadam, CEO of industrial REIT AMB, had to act decisively to reverse the sell-off in AMB shares and position the company to take advantage of future opportunities. Considering both the long and short term, Moghadam needed to re-evaluate the company's investment strategy and business model, formulate a financial strategy for maintaining liquidity and fortifying the company's balance sheet, and consider a number of organizational issues in order to successfully navigate the company through this crisis.