CMBS - Special Servicing Role
I recently came across an opportunity in CMBS special servicing at a top 5 shop (think loan workouts for delinquent properties in CMBS pools). I’ve been told that this kind of experience would be very valuable in recessions because you get to see a variety of asset classes struggling. Considering most investment shops are essentially frozen right now, can someone speak to the possible benefits and costs to taking a role like this? How would this role stack up against an asset management role on the investment side?
In the long term, I’d like to jump over to the direct investment side (development, REPE). Just wondering if this role is going to help me make that jump.
Rialto?
I created an account to comment on this since I used to work at a special servicer. Hopefully this is somewhat helpful. It's a good way to break into the industry if you don't have a ton of options and you'll get experience working on all asset types across all markets. The work is interesting and your colleagues will be smart, but it's not always fun to be the guy telling someone you're about to foreclose on them.
They will be busy for the foreseeable future so if you're looking for job security in the near term (2-3 yr horizon) it's probably a good bet. If you want to make the jump to the direct investment side I'd be weary about staying at a special servicer for more than 2-3 years. Once you get too senior it will be hard to get hired for a typical asset management role for the salary you want and quite frankly, you won't be qualified to make the switch as a VP.
In general, you'll be way less in the weeds at a special servicer than on the direct investment side. You'll work on more deals, but know less about each deal than you may like. It was a pretty steep learning curve for me when I made the switch, but you'll have a solid base and should be able to catch up quickly. Last thing, I wouldn't expect to be building out any amenity centers or doing any interesting renovations on your properties.
How do they type of places usually pay?
This is from my experience so take it with a grain of salt, but analysts would be around $65k to $75k base with 30% bonus. Associates would range from $80k to $100k base and 35% bonus. I can't speak to VP and up with any real accuracy.
Can be great experience, not sure if this "downturn" will be big enough for sustained need for these teams, but the experience is respected. A lot of people were essentially forced to shift their careers to this mode back after 08, it can be helpful for sure. But as others have indicated, it's not a long-term career play for many.
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