I just wanted to know if anybody knew anything about knew anything about JLL's Real Estate Investment Banking group. I am closing in on a position there and wanted to know how it compared to traditional investment house's IBDs. Hours, pay, etc. It will be in the DC metro area as well.
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by traditional investment house IBDs, are you referring to actual investment banks? if so, they are very different. they focus on different levels of entities for their deals.
hypothetical:
a JLL brokerage team ("bankers") would facilitate Blackstone's acquisition of a property portfolio from equity office partners.
an RE IB group advises Blackstone on it's acquisition OF equity office partners
also, i believe a brokerage company's pay is below street at junior levels but the hours aren't as bad either.
How is JLL RE IB not actual IB. From their site, they show deals they've worked on and closed. I guess I'm confused now.
JPM and GS are in a totally different industry than JLL.
JPM, GS, MS, and other large banks with IBD do investment banking. that is, they have product groups (like m&a, lev fin, ecm, dcm) and coverage groups (TMT, industrials, FIG, real estate, etc) that act in a corporate advisory function to help companies access capital from the public and private markets and execute transactions. one specific coverage group (real estate) does these types of deals with real estate companies. that is, they help real estate companies raise equity and debt, and they help them acquire other companies in m&a.
JLL, CBRE, C&W and the like are real estate services companies. they deal in a wide range of real estate specific functions, such as leasing up properties, selling properties and helping funds raise capital to buy properties(what you read as Investment Banking), property valuation, real estate market research, and various other real estate related things.
they aren't even competing on the same playing field so it's impossible to really compare apples to apples the pay and hours. my previous comment was just an observation.
what's the link to the page you're seeing their deals on? they are probably advising on acquisitions of properties and buildings and raising capital for RE companies to invest.
http://www.us.am.joneslanglasalle.com/unitedstates/en-us/pages/capital-…
http://www.us.am.joneslanglasalle.com/UnitedStates/EN-US/Pages/RealEsta…
But I think after you broke it out like you just did, that definitely helped.
The above post sums it up nicely. What it boils down to: JLL, Marcus & Millichap Capital, Eastdil, and similar companies do asset-level deals. You won't see JPM's real estate IBD group try to arrange $200m of equity for an individual office tower. Those groups will perform traditional investment banking functions, except they will do them for companies like REITs and real estate opportunity funds....similar to any other industry group.
When a brokerage firm like JLL talks about doing "investment banking," that group usually does debt or equity placement for properties (you can see in the deal highlights they talk primarily about financings). Basically when a property owner wants debt, JLL's investment banking group will put together an offering memo and send it out to a bunch of banks, CMBS shops, debt funds, etc, to bid on debt terms. The property owner could have gone to the banks himself, but can often get better terms through a broker. The borrower might pay JLL 50 bps on the deal, hypothetically, if it closes. So on a $100MM loan (which is on the large side for JLL), the broker might make $500K.
This is not the same "investment banking" performed by a true Wall Street investment bank. Sure, the real estate groups of the Wall Street banks are primarily involved in raising debt and equity for real estate owners--which is what gives JLL license to call its own work investment banking--but the Wall Street banks are almost always involve public markets. For instance, they will not be shopping for a single-property loan, but rather issuing new stock or bonds for large publicly-traded REITs. It's not uncommon for a large REIT to issue $300-$500MM of equity in a single overnight trade, which might result in $20MM+ of fees for the bank syndicate.
The businesses are very different in terms of content, scale, fee structure, etc. Their only similarity is that they both involve raising money in the real estate sector.
Real Estate Banking / Capital Markets at Jones Lang LaSalle (JLL) (Originally Posted: 06/08/2012)
Hi - I'm networking with JLL to get a position within their Capital Markets Group / investment banking. Does anyone have information or experience on what it's like, how much you learn, exit opportunities, compensation? This would be at the associate level - I am graduating with a JD/MBA from a top 25 university. Any advice is greatly appreciated
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