Saw that there is another thread on this topic, but it does not seem to talk about the interview process for JPM AM. Does anyone know what the interview process is like? I thought it would general RE questions (if you could invest $100m where would you put it, how would you value 2 identical buildings), but if anyone could provide more color that would be extremely helpful. Thanks in advance.
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Mostly behavioral / experienced-based questions in a 2 on 1 interview setting. Light technical questions - similar to the ones you mentioned, cap rate and CoC calcs, etc. I know there is an excel test too so sharpen those modeling skills.
Had a 2 on 1 phone interview for a SA position with them a year ago. Talked on my resume a lot, and also some technical questions. As an example, one I remember is, "You have two identical buildings, but one has a single tenant, and one has 10. Which would you apply a higher cap rate to?" So the application of technical knowledge is to be expected.
Okay, will definitely know my resume inside and out.
On the question you got from JPM, would the answer be that the single tenant space would have a higher cap rate. My thinking is that since there is more risk to the cash flow, this would lead to a lower cap rate versus the risk diversification that 10 tenants provides.
Additionally, I asked about lease rollover of 10 tenants and they said assume it is staggered evenly. So I said single tenant has higher cap rate due to what you just mentioned. Of course there are a million factors that can affect this, but from my experience with SA recruiting they were just looking for surface level understanding.
Are there any other similar types of questions that you would recommend studying?
One similar question I was asked by a large REPE firm during a first round phone interview went along the lines of, "You have two identical buildings with same NOI. One is 100% occupied and one is 50%. Which would you bid more for?" Interviewer recommended I think through Gordon Growth Model when answering.
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