Hemisphere Development LLC: Betting on a Brownfield
The case puts students in the shoes of Todd Davis, founder and CEO of a boutique brownfield redevelopment firm, Hemisphere Development, in 2010. Davis is wrestling with decisions and processes surrounding the potential acquisition and redevelopment of the former Delphi Automotive plant in Columbus, Ohio. When making the investment decision, Davis (and students) must consider various factors: What is Hemisphere's implicit investment strategy, and what are the firm's core competencies? How should the firm finance this transaction to achieve an acceptable return?
In addition to presenting a brownfield and strategy exercise, this case exposes students to concepts and terminologies used in real estate and environmental projects, including brownfields, public-private partnerships, and creative financing. Finally, the case highlights real-life examples of balancing risk and return.