Case | HBS Case Collection | January 2011

A Slice of the Pie: Ruby Collins and Tenants in Common

by John D. Macomber and Kristian Peterson

Abstract

A securitized small real estate investment vehicle fails and the many individual owners have to decide how to manage or dispose of the asset. This case follows Ruby Collins, a small investor, through the logic of Section 1031 Like Kind Exchanges as well as the consideration of Tenant in Common ownership. Tenancy in Common has some attractive aspects but its regulation falls between a security and a real estate investment. The risk and control characteristics also vary. This case explores both the valuation of the property and the logistical issues around managing it, and also the relationships between individuals who now find themselves business partners with no prior familiarity with each other.

Keywords: Financial Instruments; Investment; Risk Management; Ownership Stake; Partners and Partnerships; Valuation; Real Estate Industry;

Citation:

Macomber, John D., and Kristian Peterson. "A Slice of the Pie: Ruby Collins and Tenants in Common." Harvard Business School Case 211-008, January 2011.