Exit Ops MF Development
I am wrapping up my third year at a small vertically integrated MF developer that does some retail and office. I took the job because I knew I’d want to be n RE but not property management or IS so I was flexible. I learned a lot on permitting/construction/design/project management but there is a certain in the mud quality to the work that makes me not want to be a development manager or stay on the development track as an employee. I am not experienced enough to go out on my own and pursue LP funding.
What are exit ops that keep me employed, on an upward trajectory career wise, and will give decent experience if I go out on my own in 2-5 years? I know acquisitions is useful and pays well but is going from an associate job in development to an associate job in acquisitions a wise move? Would going from a GP to an LP make sense?
You sound like you'd prefer the LP side a lot. I went from an Owner/Operator to a REPE fund to REIB, because I was far more interested in the finance/structuring aspect than I ever have been in getting my hands dirty on the operations/project management side. I definitely appreciated that first initial jump from GP to LP as I got to focus on just underwriting a ton of different deals and getting a few of them closed, versus the Owner/Operator side where I focused on a much smaller collection of deals but went painfully into the weeds on all aspects of them (lease analyses, capital budgeting, etc.).
Thanks for the response. Did you take any actionable steps to build your resume for that transition or was the dev job enough on its own? Also is there a reason you went from REPE to IB and is that a move you recommend or would you say look at going to IB directly? I do some modeling in my role but not too much. Finally, one of the appealing parts of development is that going out on your own is conceivable. Maybe the projects you have won’t be as large, but you can always build single family houses or sell paper lots you entitle. Is going out on your own a possibility from an LP? Obviously people do it, but is that like a DI athlete making it to the NFL?
1) A good story for wanting to go the the LP side and a handful of acquisition deals from the GP side was all I needed to make the switch. It was quite an easy transition and LP investors value the nuts and bolts operating experience that GP work gives you. If you don't do a lot of modeling in your work I would still embellish your resume to make it look like you do a ton of modeling/financial analysis, as that's the main skill you need as an Analyst/Associate on the LP side. You'll be fine if you want to make the jump.
2) I went into IB because, again, I'm not much into the nuts and bolts of real estate so much as I'm into finance and structuring. Working in REIB I get to work on a bunch of different deal types and structures (M&A, Common Stock offerings, PIPE offerings, 144A equity/debt raises with warrants attached, Debt offerings, etc.) Granted if you're at Brookfield/Blackstone or a similar firm you may get to work on REIT buyouts, PIPE investments, etc. but the reality is most REPE roles are asset level acquisitions roles
3) If you want to build the skills to go out on your own then you should stick with the GP side. It's the same way if you wanted to found a tech start-up you would have way more valuable experience if you have a background dong Strategy, Product Management and/or Business Development for a tech firm versus if you just work for an investment fund that buys shares of Apple/Zoom. The most important aspects are A) The ability to source financing for a project, B) Understanding how to accurately assess, plan and implement the capital needs for your project and C) Managing/leasing and keeping track of maint. & repair needs for your project once it's under management. IE, the shit you do at a developer/operator that you don't do as an LP.
1. is your bank BB or one that focuses on RE exclusively like eastdil?
2. What salary should I request in an interview for an acquisitions associate role?
3. How have the time demands been since you left the owner operator? One of the perks of development is no fire drills, even when a project hits the fan there aren’t all nighters and lost weekends/vacations. I would not be looking at a Brookfield/blackstone, although I have a decent resume I don’t think it’s up to that level and I would find asset level acquisitions more interesting.
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