Real Estate Private Equity Case

Hi there, is there anyone who knows what I can expect with a case in the PE RE sector?

I watched some youtube tutorials and gained info about the waterfall analysis with a promote structure. My background is from a perspective of single tenant triple net leases.

22 Comments
 

Hey Coen,

I have some experience with case studies for real estate and thought I'd pipe in.

You probably wont see a waterfall question unless it is a pretty institutional shop. I personally do not see the point of a waterfall test for an interview, because generally you will know it or you wont (from previous experience) and whether or not you can build a waterfall model from scratch will have no correlation with how good of an analyst you are IMO. Most likely, they they will give you a property (100 unit apartment in this part of NYC, 100K SF shopping center in Orange county), tell you some market rents, and then ask you to provide a valuation. Also, they might ask for things you like about the property, things you don't like, how could you add value,and ultimately would you buy it. In this they want to see how you think and also do want to get some exposure to your modeling capabilities.

It sounds like you have some general real estate experience, that will definitely be helpful. If you want, I can try and dig up an old problem or two.

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