College of Business: University of Illinois at Urbana-Champaign

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Far-Reaching Influence of the ILLINOIS Real Estate Program


5/2/2012



“It is amazing how good our real estate program really is,” said Roger Cannaday, associate professor emeritus of finance. “We just had David Twardock, president of Prudential Mortgage Capital Company, to speak to student members of Rho Epsilon, the UI real estate club.” Twardock oversees $72 billion in assets under management.

On Tuesday, April 10, Twardock ‘79 (Civil Engineering) shared his thoughts with a standing-room-only turnout of the student members of Rho Epsilon. He visited all the way from Newark, NJ. to talk about the commercial real estate debt market in light of the “great recession.”

While the debt market is slowly recovering, there are meaningful uncertainties still ahead. In particular, the future of Fannie Mae and Freddie Mac are important in the apartment sector and those institutions face the likelihood of a Washington, DC imposed restructuring sometime after the election. The commercial banks finance almost 50% of the commercial real estate market and face meaningful regulatory headwinds. And, the Commercial Mortgage-Backed Securities market, which nearly followed the residential market over the cliff, is struggling to regain footing. Businesses in that sector are also dealing with the possibility of regulatory change from the Dodd-Frank legislation, in particular, the requirements for risk retention which I feel would be beneficial to the market over the long run.   

Twardock’s advice for students interested in commercial real estate finance was to “get exposure early, keep the GPA up, and network in the sector so they understand their career options.”

UIUC College of Business