Hollins University

Captain – Aubrey Wargo

How many members made up your team, were you all in the same program, the same class, and was it undergraduate or graduate level?

There are three members in my team and I had not met either of them before we met to decide our allocations. My team was put together by the professor involved in this game and it has been this way for all three years that I have played. I am the only senior on the team and I am passing my knowledge of the game on to the other members. We are all playing this on the undergraduate level.

Was your professor able to work the Race into the program or were your decisions made more externally?

Our team’s decisions were made externally the day that we met up for the first time. I first explained the game and the goal, then we did research as a group and came up with our decisions before leaving for winter break.

How important were broader economic drivers that impact real estate? And in an economic sense was there something that stood out to you that was taken more into account?

They were very important to our team when making our decisions. We focused a lot on the population shift that was occurring as the baby boomers started to move into retirement homes as well as the shift in the market. My team was very interested in the shift of the data center markets and wanted to invest most of our funds into this market due to it seeming like a safe bet with the current economy.

Did you rely as a team more on real estate historical data and returns or were you looking more at real estate current and future trends?  Possibly a combination?

We looked at a combination of both the historical data and the current and future trends. We wanted to identify if a market had previously hit its peak or if it was consistently growing over time towards its peak. Data centers was one of those markets that was continuing to grow and we believed that trend would continue in the future as we see the continued demand.

Hollins University’s largest allocation went to REIT data centers.  Can you elaborate on why you think that’s the one for 2019?  

We believe that the demand for data centers is large enough to make a safe bet on investing most of the money in them for the 2019 allocation. We had researched what data centers included and checked out the market to make sure it hadn’t reached its peak yet before comparing the risks it faces due to the economic impacts it might face. We believed that it would not be affected as much as other REIT sectors this year and chose to invest in it due to the growth potential.

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