Is this a solid gig?

I've been working as a Development Associate for 3.5 years at a family office in a gateway market. Builds class A multifamily and affordable deals with LIHTC. We have $3B AUM and a $1B pipeline (5 proposed developments) largely on hold right now due to current environment. I'm largely a finance guy with some exposure to development and asset management

I started at $55k/year out of college and was told "we start low, but your pay will grow with experience." I was perfectly ok with this- I needed experience. 3 years in, I'm making $95k with a 5% bonus. Expressed interest in growing my compensation, told them my pay was below market. They proposed a "win-win" solution- they would help pay for my MSRED at a top school. They are paying for the full gross tuition through a bonus. $10k/semester so after taxes $6k is them $4k is me. So $20k/year gross. So my total all-in comp is ~$120k. Is my comp fair for my experience?

After my most recent review, did not get a title change, so I asked and my boss if he would consider. He agreed and told me that typically at our company people asked for title changes, it's not given. Is this typical? 

As for the company, I like it, but don't love it. Well respected company with good reputation locally, they encourage my education, and 45 hour work weeks. Also find the deals interesting. However, culture sucks and while I have a couple good mentors, some senior execs in areas I want to grow are either assholes or not good mentors.

 
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It sounds to me like you've hit somewhat of a glass ceiling at the current company in your current role.

The paying for your MRED option is generous, but most people come out of MRED programs looking for a position as a...development associate. If getting a graduate degree is something you've always dreamt of, then by all means take advantage of a diploma without student loans, but I don't think you will get enough value out of the program. That's coming from someone with a MRED degree, btw. 

Moving on, you are definitely underpaid for your position. Not dramatically so, but you see $125k+25%-ish associate comp thrown around a lot and that's enough of a difference to matter. Really though, you're at a time where you should be taking that next step - running your own deals, either alone or with partial supervision. If you are already, then you are definitely underpaid, and while a title bump to Dev Manager or VP or Director or Duke of Real Estate may feel good, titles also don't pay the bills. Real Estate firms giving cool sounding titles instead of compensation is a tale as old as time, and I can personally think of one 30 year old "Managing Director" who everyone chuckles about. If you aren't, that needs to be your focus, and it's a lot easier to justify higher comp with higher responsibilities. 

All that said, at a family office, there may simply not be enough room for a new VP. There may not be enough deals to necessitate another person running one. Plus you say the culture sucks and senior execs, who you would be working with more directly as you progress upward, are assholes. Doesn't seem like a long-term place for you. 

If I were you, I would try to secure a promotion - a real one, not just a title bump - that would allow you to simultaneously gain high level experience and ride out the next year's shitty market. If a couple of those 5 proposed developments hit, I would argue for you to take on the easiest or cheapest one yourself, or ask to run it with someone making sure you don't trip over your own shoes at the very least. Then, you'll be going into 2025 with a new title, higher level competencies, 5ish years at your company, and be prime for a new job elsewhere. 

Commercial Real Estate Developer
 

Thanks for the advice on the situation. My firm is very top heavy. I'm the only person in the development group under 30, everyone on the finance side of the business is 40+ and all VPs. A promotion for me would be a challenge because a new position would need to be created. There's such a wide gap between my knowledge base and theirs, I feel like my co-workers sometimes just take over instead of allocating work down to me. 

I do agree it's not a long term place. I do want to be more on the investment side and less of a project manager. My plan was to use the MSRED to build the network, add another qualification, and look for work elsewhere. 

 

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