Hi All,
I work in CRE and was speaking to a friend of mine who told me he recently obtained a position in the real estate restructuring team of Duff & Phelps. Firstly, how big is restructuring within the real estate space? I obviously know it has a large place in the banking world, though this is the first I have heard of it with a real estate specific focus.
Secondly, do you guys see this as a promising area for the future? Given the effect COVID-19 is having on the economy, I can't help to think of the workload in addition to the good bonuses that will be being paid to those in restructuring, seeing as I imagine lots of firms will be defaulting on secured loans backed by property.
Thatd be ground zero for the foreseeable future. Not sure what market share D&P has, compared to the big shops to be honest, but would be a fantastic learning experience right now
As far as asset level RX goes..... Iron Hound Management has the best restructuring business in US real estate - hands down no question asked. It's largely CMBS stuff. The desk is run by fomer Wachovica the former head of their large loan desk Rob Verrone (AKA large loan Verrone).
Entity level restructurings will be the likes of Houhilan Lokey, Moelis, Evercore, etc. will depends on region (USA vs LatAM vs EMEA). Brookland Partners and Evercore have a solid RX/NPL advisory presence in the UK and pan european region for instance.
Every now and then a random boutique advisor here in the states (like Algon Group) will come out of nowhere and restructure a homebuilder or a lodging/gaming operator.
No one has an overwhelming noticable market presence here in the US from what I've seen. It's a great niche opportunity.