Capital Markets Jobs at Multifamily Shops.
Does such a role exist? Essentially an in house capital markets role that is focused on sourcing debt and negotiating term sheets for deals. I know some shops have a "director of capital markets" role but I have typically seen that in shops like Bridge that are involved in several product types and business plans. Do vanilla multifamily shops (Bascom, Tru America, LEM, etc) that acquire stabilized or value add deals have such a role or do their acquisition/AM guys also handle debt? Thank you!
Yes, but I've mainly seen that at large shops - Starwood/KKR
Yes but Starwood/KKR is similar to Bridge than Bascom or LEM. I am not seeing anything come up for multifamily shops. Noticed only FPA has a capital markets guy, so I am curious to see if that is the exception than the norm.
I know Bascom decently well. They do all debt capital markets with brokers. Huge presence with JLL. They do a lot of business with them. My understanding is that they do NOT have an internal capital markets person.
Truth be told, I think it’s difficult for shops such as a Bascom or LEM to have a CM guy. They’re not active enough to know every single debt fund, bank, and lifeco in the market and have relationships with them. Whereas, a JLL/ES knows exactly what’s happening in the market.
Friend works at Greystar and I interviewed for multiple positions with them, but from what I’ve gathered.
Greystar does. At least I know for sure on the Development side there is a small capital markets team that sources D/E and works with their derivative products. I know the acquisition team has a capital markets team as well, but I am not sure how it differs between acquisitions and Development.
For their funds they have “investor relations”, which I thought was mainly reporting but talking with them, directors and up only source equity.
It is true that shops like Bascom, LEM etc are not going to have a dedicated capital markets team. They will have to pay a base of 200K+ to get high quality professionals to fill that role as typically ex bankers are hired for such roles and they would have been earning $200K+ in their prior role. It will be a overkill for a vanilla multifamily shop that only acquires stabilized or light value add deals to have a dedicated capital markets team when all they have to do is send an email to their preferred agency partner or their usual lineup of banks and get 2-3 quotes. This is not rocket science. Might as well use a debt broker and drive down their commission (I have seen as low as 15-25 bps) if its going to be conventional agency debt. Better to have independent contractors and not employees for such a role. If there is such a role at vanilla multifamily shops, I have seen them do a lit bit of everything including investor relations. Look up Clear Capital, they are a small shop based in LA, shops like this are a dime a dozen. Their website shows a "VP of capital markets" person. Fancy title right? But per their website, this person's responsibilities besides managing investor relations includes managing the company’s social media outreach (probably code for posting recent closed deals on Linkedin), and overseeing the design and content of marketing materials. LOL, seriously wtf? Would a "VP of Capital Markets" at Bridge or Blackstone manage the company's social media outreach? This is because shops like Bridge are a different beast. They will have a capital markets team as they do a lot more than light value deals, they are are also developers. Sourcing construction debt or dealing with products like revolvers or lines of credit requires expertise when it comes to negotiating term sheets and it is not comparable to just using agency or bank debt.
Good post, that was helpful, so if debt guys want to work at a shop like Bascom, is there no room for them? Because from what you are saying, their debt/capital markets experience wont be that valuable to them and why would they bring them on board for acquisitions or asset management when it is not their wheelhouse and they can always hire people with relevant acq or AM experience. I will understand if a junior debt guy with less than 3 years of experience starting from scratch as an entry level analyst at Bascom but what happens if one has 10+ years of debt or even specifically agency experience, what would then be a fit for them if they want to work at a multifamily shop like Bascom? I am in that position and I am kinda lost. Challenge is I cannot take a pay cut too. Do most people in my position just stay in the debt/agency space?
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