Opinions on Real Estate Investment Firms
I am currently a senior at a non-target top 50 university. I have internship experience at a boutique investment bank and at Citi Smith Barney. My plan was to go IB and I received a few interviews; however, nothing materialized.
I wanted some opinions on working for a real estate investment firm right out of UG. In particular, a top commercial real estate investment firm very well known in the CMBS industry.
Does it make sense to do a 2 1/2 year rotational analyst program (loan surveillance, CMBS and underwriting, REO, Asset Management, etc.) and then pursue opportunities in PE, IB or hedge funds?
What type of opportunities would there be after the program besides promotion within the firm? Ideally, I would like to explore opportunities in PE or IB. I don't think an MBA would make too much sense at this point but correct me if I am wrong.
Thanks for any thoughts, opinions, or comments. The most realistic landing spot for me after graduation will be with a firm related to the one I wrote about above. Although I didn't land a BB analyst position, I hope that this is just a different path with similar end results of reaching success on Wall Street.
I don't know real estate...but you see all of the time in the news that hf's are dabbling into that space. In my opinion - the rotational program may not be what you want now - but at least you get the shot. I would at least get your CFA while you are straight out of school and then you can pursue other options once you are done with the rotational program...at the very least - you will be able to pursue a position at a hf.
This is a part of the job description. Although it is defined as a rotational program, it is more along the lines of a standard analyst position for 2 and a 1/2 years. However, you do change departments every 9 months. After the 2 1/2 years, I believe the analyst can either a) move to an associate b) pursue a graduate degree c) pursue opportunities at a HF or another WS firm.
"The Analyst will gain experience in four core areas of our CMBS business: acquisitions, surveillance, loan asset management and real estate asset management. This program is an excellent opportunity for individuals to learn about CMBS, real estate credit analysis and the overall fundamentals of the commercial real estate industry.
The three departments include: Investment Management (Acquisitions and Surveillance), Loan Asset Management, and Real Estate Asset Management (“REAM”). In Investment Management, the Analyst’s responsibilities will include reviewing and monitoring the performance of CMBS transactions where we have invested our capital and providing support to the acquisitions team which underwrite and invest in CMBS bonds.
In Loan Asset Management, the Analyst will assist Loan Asset Managers with the analysis and processing of Lender consents and in negotiating resolutions for defaulted loans (or “work-outs”). Such work will require analysts to review loan documents, prepare underwriting analyses, and participate in calls with borrowers.
Finally, in the REAM rotation, the Analyst will work with Real Estate Asset Managers to provide all levels of analytical support for the disposition of foreclosed-upon properties, including researching market conditions, reviewing potential leasing opportunities, overseeing property-level management and ultimately assisting with the sale of the property.
It looks interesting. Any 2 year rotational program will be a great experience...you should try and get it.
Nobody exits a commercial real estate analyst program into "PE, IB or hedge funds"
Masterg, can you please elaborate? I want to know the different career paths that would be available to me after this program.
anyone else have any thoughts or opinions on commercial r.e. investments, CMBS, and loan underwriting/surveillance?
This does look interesting. A lot of CMBS needs to be worked out in the next 5 years this could be a good experience.
Regarding exiting to PE, IB or HF, I think that it is ossible, but it will be difficult. You just have to have a good story. Based on the description of the job, if you gain all those skills you will be quite marketable.
I'm actually trying to switch into PE from 3 years of RE investing under my belt. I've done everything from acquisitions, asset management (RE and Loan), originating, etc. However, I'm having to do a lot of catch up since the majority of my experience is with DCF modeling and not LBO's. I scored a final interview with a PE firm and had to do a case study where I had to build an LBO model. Didn't get the job b/c my modeling experience was stronger in DCF. I'm now looking to take a class or look at my other options as I would like to try stepping out of RE. All in all, so far I'm finding the experience tough.
What region/city did you work in? Is there any advice or way I can prepare for other ways of modeling while working at a re firm? I understand i will have the DCF background but i want to gain the other skillset as well.
I worked in Boston and NYC, both fairly large cities in regards to RE. My advice would to be to try to get in a firm that invests in investments other than just RE. The chance of you learning and having high exposure to any models other than DCF is slim in RE.
My feedback from the PE firm that I didn't get the job with was actually really good. I had the fit, personality, passion, but just didn't have the modeling experience. They said to keep in touch as they are growing fairly rapidly. I'm looking at taking some of the one-on-one courses from the Analyst Exchange and propose an unpaid internship with them so I can hopefully create myself a position when they are ready to hire the next person. This is one of few opportunities that came across my plate that's not RE. Best of luck.
I would say the best firms are:
There are others, such as Rockwood, DLJ, JPM, MS, etc., but the above would be the best specialists.
what about re ibanking?
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