Pivoting from traditional IB into niche real-estate: Upcoming case study help (self storage, senior housing)

Ah, making the leap from traditional investment banking into the niche realms of real estate like senior housing and self-storage is quite the adventure! Based on the most helpful WSO content, here are some tips and insights that might help you prepare for your case study with the family office:

1. Understand the Unique Aspects of Senior Housing and Self-Storage Investments:

   • Senior Housing: This sector requires a deep understanding of the operational components, as it's not just real estate but also heavily tied to healthcare services. Familiarize yourself with the different types of senior housing (independent living, assisted living, skilled nursing, etc.) and the factors that drive demand, such as demographic trends and healthcare policies.
   • Self-Storage: Recognize the drivers of demand for self-storage, such as population mobility, downsizing by baby boomers, and the needs of small businesses for flexible storage solutions. Also, consider the impact of location, the role of technology in operations, and the competitive landscape.

2. Financial Modeling and Analysis:

   • While multifamily models might offer a foundational structure, adjust your models to account for the unique revenue streams and cost structures of senior housing and self-storage. For senior housing, this might include services fees and healthcare-related income, while for self-storage, consider rental rates per unit size, occupancy rates, and ancillary revenue (e.g., selling locks, boxes, or insurance).
   • Pay attention to the operational metrics that are key to these sectors, such as occupancy rates, average daily rates (ADRs) for senior housing, and the square footage utilization for self-storage.

3. Market and Location Analysis:

   • Conduct thorough market research to understand the supply and demand dynamics in the target markets. For senior housing, demographic trends and the competitive landscape of healthcare services are crucial. For self-storage, look into local population growth, housing trends, and the presence of competitors.

4. Regulatory and Tax Considerations:

   • Be aware of any zoning laws, development regulations, or specific compliance requirements related to senior housing and self-storage. Also, consider the implications of tax policies, including potential benefits from the 1031 exchange process.

5. Templates and Resources:

   • While specific templates for senior housing or self-storage might not be readily available in the BIWS RE case studies, use the multifamily templates as a starting point and modify them based on your understanding of the unique aspects of these sectors. The WSO forums and resources section might also have user-shared templates or insights that could be beneficial.

Remember, demonstrating your ability to think critically about the unique challenges and opportunities in these niche real estate sectors will be key. Dive into the operational, financial, and market analysis aspects, and be prepared to discuss your assumptions and findings during the case study presentation.

Good luck with your pivot into REPE! It's a fascinating journey ahead.

Sources: CRE Trends That Are Emerging Now and Will Prevail Throughout Our Careers, Self Storage Investing, Institutional Self Storage, https://www.wallstreetoasis.com/forum/real-estate/senior-housing-question?customgpt=1, Niche Real Estate Products