which group would you say is better? (for exit opportunities) it is important to note that real estate banking in DC and multifamily capital in NYC.
Real estate banking is to all asset classes.
multifamily is specifically you’re Fannie Mae / Freddie Mac loans.
| +52 | Leave brokerage to be GP | 12 | 1d | |
| +46 | New Comp Database - Google Form (Now with Data Validation) | 24 | 1d | |
| +24 | Seeking Career Guidance in Real Estate Development Post-Graduation | 3 | 2d | |
| +23 | Spreads over SOFR/UST | 5 | 7h | |
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| +21 | Real Estate = complicated + underpaid | 15 | 1d | |
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Based on the most helpful WSO content, both Wells Fargo Real Estate Banking and Multifamily Capital have their unique advantages and could offer different exit opportunities.
Real Estate Banking, being exposed to all asset classes, could provide a broader perspective and more diverse experience. This could potentially lead to a wider range of exit opportunities in various sectors of real estate.
On the other hand, Multifamily Capital, with its specific focus on Fannie Mae / Freddie Mac loans, could offer a more specialized experience. This could lead to exit opportunities in areas specifically related to multifamily real estate and government-sponsored enterprise lending.
The choice between the two would largely depend on your personal career goals and interests. If you're interested in a broad exposure to real estate, Real Estate Banking might be the better choice. If you're more interested in specializing in multifamily real estate, then Multifamily Capital could be the way to go.
Remember, it's not just about the exit opportunities, but also about what you enjoy and where you see your career heading. So, take a moment, have a banana (or two), and think about where you see yourself in the future.
Sources: Can someone clear up the confusion on Wells Fargo and Eastdil, Wells Fargo Summer Financial Analyst Program - Commercial Real Estate, Wells Fargo Commercial to IB, Wells Fargo SF vs. SF Boutiques (e.g., FT Partners, LionTree, GCA, Union Square)
Currently work at WF but won’t say which group. 100% choose real estate banking. You get exposure to all asset classes and work with top notch sponsors on high profile deals. Analysts who were in real estate banking went on to places like CIM, Tishman, Brookfield, and other “prestige” shops. Multifamily Capital only gives you experience in GSE Multifamily and their exit ops are typically to other GSE shops. IMO, GSE is vanilla and won’t give you the proper training on how deals are actually done without the guarantee of Fannie/Freddie providing security. For example, agency deals are underwritten specific to agency standards. A lot of the standards and terminology do not translate well to the non-agency world. Agency loans are constrained by DCR/LTV whereas bank lenders, debt funds, and life cos are constrained by debt yield (or internal return threshold) normally. That’s just one example but there are plenty more. I know MFC has a balance sheet business but it is small and the real driver of that business is Fannie/Freddie. Also, in case you have not heard, MFC is on the decline. They have lost four originators in the past 6 months, with 2 of those originators being their top producers. Alan Wiener, who used to be the group head, has taken a step back and they promoted someone else to group head (who isn’t as connected and well known as Alan).
This is helpful - if I preferred multifamily cap do you know if i can get an interveiw for real estate banking as well?
Not sure but my answer was a long way of telling you to avoid multifamily cap. In the long run, real estate banking is the better choice for your career. I think any of the experienced analysts in multifamily cap would tell you this.
I work at wells too, not in REB or multi family capital. I would disagree with this. Multi family capital is doing just originations versus REB is literally only doing portfolio and asset management right because no new balance sheet loans are being originated rn at WF. I don’t think balance sheet will open up until 2025. All the REB analyst on my floor are hating their work right now. Just tedious asset management stuff. I woudl go into real estate capital markets, multi family capital, or the REGAL IB group for the best experience.
but thoughts long term (2.5 yr program starting july 2024)?
I mean MFC is a capital markets business, it is either doing originations or do nothing. so what else can they be doing besides originations.
Yep, you get it. The guys having the most fun at Wells are the RECM team. Crazy how easy those syndications are and they get paid as well as the REIB guys. I believe they might share analysts though.
Do you know the base pay for VP's and directors at MFC? Thank you!
Agreed MFC has taken a hit but to play devils advocate, it is not so black and white and there are nuances. If one liked MF as an asset class, what is the point of working on hotels, self storage and industrial? Related (an institutional or "prestige" shop but with a heavy MF exposure) has hired people from MFC especially on the affordable side. They are a bank client so there is exposure to those shops. On that note, yes MFC has lost originators but those top producers you are referring to relied on very little bank clients. They did a lot of volume yes but they were not originating loans for Related, Bridge, Brookfield, etc. Bank clients will remain bank clients, there will be no change there. Volume will definitely be down but volume will be down everywhere at other GSE shops too. Other non bank shops that rely on investment sales for originating agency loans are also suffering. Since it is so bad out there, there are very few shops I would rather be at than Wells if I wanted to be in the GSE space and this is despite the recent hits MFC has been taking. Several reasons for that- pay, work life balance, security and stability to an extent (despite the layoffs, if you think MFC has had layoffs, REB and RECM are so much worse) are big reasons. And the very nature of the capital market business (high profits, low expenses, low risk) will mean MFC will be a top priority for the bank and CRE. Producers leaving (or getting poached) is par for the course in the GSE space, it's just that MFC has not had to deal with the turnover that other GSE shops deal with regularly till now. Lets see how the bank responds. Common sense will say they will do everything they can to keep MFC a top 10 GSE shop. I personally dont see MFC dropping out of the top 10 list. Bank clients, legacy clients, other producers stepping up, etc is just one factor, but I am also looking at other agency shops and what they are doing right now, candidly I dont see them bumping Wells out of the top 10 list.
Now, if you want exposure to all asset classes, I dont blame you, I think atleast starting out getting that exposure is a good thing, REB, RECM, etc are good options. But its not all rosy out there unless you think portfolio management work is sexy. It soul crushing and it will make you feel ike a character in Office Space working on TPS reports, imagine doing that day in and day out with no light at the end of the tunnel. It's not like you get paid a whole lot more than MFC too. So, TLDR it depends...
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which office?
Both Wells Fargo Real Estate Banking and Multifamily Capital offer distinct opportunities within the real estate industry. The choice between the two depends on your career goals and preferences.
Real estate banking at Wells Fargo provides exposure to a broader range of asset classes, allowing you to work on various types of real estate transactions. This can provide a diverse skill set and a deeper understanding of the overall real estate market. However, the exit opportunities may vary depending on the specific role and experience gained within the real estate banking division.
On the other hand, Multifamily Capital at Wells Fargo focuses specifically on Fannie Mae and Freddie Mac loans for multifamily properties. This specialization offers in-depth knowledge and expertise in the multifamily sector, which can be beneficial if you have a specific interest in this area. The exit opportunities may be more concentrated within the multifamily industry, particularly in roles related to multifamily lending, investment, or development.
Ultimately, the "better" option depends on your career aspirations, geographic preferences (DC for real estate banking vs. NYC for multifamily capital), and interest in working with a broader range of asset classes or specializing in multifamily properties. Consider evaluating your long-term goals, skill development opportunities, and personal interests to determine which path aligns best with your desired exit opportunities.
Both are good options but I would 100% choose RE banking. As others have said, this will give you a more exposure to top tier sponsors and all asset classes whereas MF Capital (I think) is strictly Fannie/Freddie. If WF is looking at say, a large MF transaction on the BS side (I guess whenever they plan to lend on it again as not doing BS right now) for say, Related, the RE Banking team will be on it not MF Capital.
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