Hey so I was wondering if anyone had any info about these two LA Shops:
Kennedy Wilson Tides Equities
What id like to know is their starting comp for Am or acq and if they have a good rep to lateral or stay long term. I’m not as familiar with the market so I’d appreciate some good monkey opinions
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https://www.wallstreetoasis.com/forum/real-estate/tides-equities
^ some background on Tides here.....Cliff's notes: hot shot young jabronis start their own firm, pat selves on back for doing great during a time of unprecedented free bridge debt and cap rate compression, and may ultimately have the same trajectory as a burning car going off a cliff.
KW has a good rep. A lot of industry veterans started there.
Two very different firms.
KW: Well established firm with international holdings and participate in a variety of CRE verticals
TE: New, young, ballsy but over their skis shop. Their credit is held throughout the MF lenders in both balance sheet and securitization. What I am hearing is that they are hemorrhaging, can't get new financing anywhere and certain shops are already getting ready to sell their paper. Some of their relationships don't want to admit it or their loans are stuck in SF products but....what do I know... THEY HAVE 40% returns just look on their LinkedIn, they will tell you themselves....
If you want to keep your job and grow within a team with a strong in house future or pivotability, I would go with KW all day. May be old school in terms of culture and feel vs bro bro bro bro, but you will still have your job in a year from now and will understand the polished nature of institutional quality with a homegrown name. My suggestion is always do your homework, history of the company, how they have grown to who they are now.
what's an "SF product"?
Structured finance products like CMBS or CRE CLO
CMBS, which means they have no control and the special Servicer (Rialto, LNR, Midland etc) will have to handle the workout remedy
CRE CLO all depends on the MF lender and if it is a static or managed pool regarding who will be the decision maker on the workout. If managed/active it will get bought out and sold on balance sheet in the secondary market if it’s static it’s like CMBS, the special Servicer is in the driver seat.
Far less exposure in the SF products than what’s on people’s balance sheets and when the paper is sold in the secondary mkt will be heading toward the loan to own shops.
Who doesn’t love a class C value add w a new paint job?
Easy to hit 40% levered IRR's when your hold period is 18 months or less, cap rates compressed 50-100 bps during that time, rents popped 20-30%, and you financed 75-90% at a low 3 handle. Absurdly lucky market timing...until the music stopped.
Crazily enough somebody is still lending to them:
https://www.connectcre.com/stories/tides-equities-picks-up-three-phoeni…
Yeah Freddie - which will soon feel like Krueger.
Tides is probably the worst firm you can work at in any situation. They are going under, commit a bunch of fraud with investors and lenders, and have an entire staff that is completely clueless about what is going on.
Thats not true, as a junior there probably pretty interesting - Plus you will get alot of reps in
Fraud? I have not heard that......what type of fraud are we talking about here?
KW everyone stays there forever which is annoying as a junior employee to move up is a 5-8 year process
KW known to under pay and have slow promotions (4+ year analysts), but has a great wlb
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