Explanation of Acquisitions, Development, and REPE
Hi everyone, I am a junior in college and hoping to solidify my understanding of the commercial real estate industry. I have spent a lot of time reading the different threads on here but I am still confused. 1. Can someone explain the functional differences of a GP and LP on a deal basis? 2. Can you work in acquisitions at a GP and an LP? 3. Can you work in acquisitions at a developer? 4. If you work for a developer (say in acquisitions) are you considered a developer or do you work in acquisitions? 5. How do vertically integrated shops fall into this? Thank you so much and I apologize if these are trivial questions. Cheers
Thank you very much for this response, incredibly helpful. So for instance is a group like SHVO, RFR, or JDS a true developer although they sometimes acquire buildings that are already built or are they an investment firm? Would there be acquisitions/investment roles that are not development at a shop like this? In a smaller vertically integrated shop is it possible to work in both acquisitions and development?
IMO as long as a company does ground up developments they are a development company. They don’t have to only do ground up developments, but they have to do some.
There are tons of ways to structure these companies internally, so there are tons of possibilities of roles available. Each one may be a bit different. There is no universal way to structure a real estate firm.
Everything CRE replied is correct, I would just add that for #3, it is not uncommon for a developer to have a separate "acquisitions" vertical that will buy existing assets (not just land). In those instances, it's fairly common for the acquisitions team to loop in the development team in some capacity to execute the business plan, such as redeveloping certain parcels, adding new multifamily units or hotel component, etc etc.
Et aspernatur aut quos. Qui aut hic ipsa consequatur ipsa et. Doloremque eum ut in non.
Nobis omnis error blanditiis voluptas. Dolorem explicabo commodi odio tempora optio ipsa. Neque tempora dolores veniam dignissimos illum inventore esse. Dolorum voluptatem voluptas laudantium quos repellat tempora. Quas qui iusto incidunt non sit et. Ipsa voluptatibus repellat aut perferendis aliquam qui.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...