Most Helpful

This is a pretty easy answer for me today.

  • Markets: United States, Secondary, Job Growth Markets (Dallas / Ft Worth, Houston, Austin, Salt Lake City, Atlanta, Nashville, Raleigh, Charlotte, Tampa)
  • Product Type: Multifamily
  • Asset Quality: A / B, 90s - New
  • Investment: Blended Mezz / Pref Equity positions.  I'd sit somewhere between 50% - 80% in the capital stack, charge a few points in, charge 15% - 16% interest with half current and half accrued.  I'd make Sponsors escrow their fees in a separate account that would be released upon some milestones of principal repayment.  Further, would participate in sales proceeds if a certain sales milestone was reached, like a warrant.
  • Thesis: The debt capital markets continue to slow providing an opportunity for private credit.  Due to uncertainty in the overall capital market conditions, equity requires an additional risk premium.  Relative to returns that can be achieved in a debt position - 15% - 18% - can't rationalize an equity investment without being very speculative.  The mezz/pref blended investment allows me to deploy capital today for three, or so, years and get a great risk adjusted return while I effectively wait out for more certainty / stability.  If Borrower defaults, can take over assets at an attractive long-term basis.

I'm not an american, but I've been hearing Blended Mezz / Pref Equity is very easy to get, tons of funds are offering it. You're thesis is now void sucka!

Yeah, this kind of product is on offer from everyone and their uncle, specifically because it is such a no-brainer.

Like, I'd like to buy raw land in downtown areas at $1/bsf and then build luxury condos!  Oh, and I'd like to lock in my construction and financing prices at 2019 levels.


I look at HY pref / mezz deal day in and day out.

If you want 15-16% rate it would have to be ground up construction and you’d have to go to 85% LTC. And top developers don’t want that kind of money right now. It’s a nice thought though.

If we could do 80% LTC/LTV on existing multifamily and get 15%, our job would be super easy

The real answer (excluding debt and pref because that doesn’t answer OPs question) is to put equity to work in distressed situations. There is actual distress today… hotels and office buildings having their notes sold for 50% on the dollar (25% of the equity investors original basis).

There is quality real estate out there with messed up capital stacks. That’s where you want to invest. It’s probably going to have to be office or hotel… no way around it. Maybe office to multi but you need to partner up with a sponsor.

This question also depends on your type of capital. If your unlevered buyer seeking single to low double digit returns… never been a better time to buy multifamily. If you’re an opportunistic investor, I’m not sure how you could invest in multi family right now outside of rescue capital situations. It all just depends, need to provide a more detailed question 


The 15% - 16% rate is half accrued, half current.  So current of 7.5% - 8.0%.  We're seeing construction quotes anywhere from SOFR + 350 bps - 600 bps depending on asset location and quality which would put the rate, which is current, at 9.00% - 11.50% by year-end, give or take?  Not to mention proceeds are lower, it is full recourse, and often requires a substantial deposit relationship.  So now that I'm talking out loud, mezz at 12% actually feels pretty good, all things considered.


$100M in equity today….?

- SoCal home builders (can be other extremely tight markets but I know SoCal best and it’s crushing right now)

- Smaller but we’ll amenitized RTI Condo projects in A+, supply tight markets 

- Or, shoot for the money and take down land to build a multi/condo building using all cash throughout, condo map it while building it, refi most of cash costs immediately upon delivery, rent the units out above the mortgage and sell off units over time (think 5-6% cash return over mortgage spread even though mostly all capital is already returned).. only way to bring some juice back to multi today is with condo upside “ options” to bring IRR and EM back to “yesterdays returns”.

Otherwise pure multi dev is extremely hard to pencil or get going today for many reasons…


Incidunt voluptatem non non ex ratione eos voluptate. Nesciunt vero fugiat molestiae fuga ipsam.

Error est et eum cumque aut quisquam distinctio. Corporis facilis consequatur repellendus delectus nesciunt. Suscipit et temporibus et in sapiente deleniti dignissimos. Pariatur totam incidunt est facilis excepturi dolor. Itaque voluptas dolor sed debitis tempora ducimus consequatur.

Career Advancement Opportunities

November 2023 Investment Banking

  • Lincoln International 01 99.6%
  • Lazard Freres (++) 99.1%
  • Jefferies & Company 02 98.7%
  • William Blair 12 98.3%
  • Financial Technology Partners 02 97.8%

Overall Employee Satisfaction

November 2023 Investment Banking

  • William Blair 04 99.6%
  • Lincoln International 10 99.1%
  • Moelis & Company 25 98.7%
  • Stephens Inc 11 98.3%
  • Jefferies & Company 08 97.8%

Professional Growth Opportunities

November 2023 Investment Banking

  • Lincoln International 01 99.6%
  • Lazard Freres 17 99.1%
  • Jefferies & Company 02 98.7%
  • Financial Technology Partners 06 98.3%
  • UBS AG 16 97.8%

Total Avg Compensation

November 2023 Investment Banking

  • Director/MD (6) $592
  • Vice President (34) $390
  • Associates (167) $258
  • 3rd+ Year Analyst (15) $187
  • 2nd Year Analyst (106) $168
  • Intern/Summer Associate (48) $167
  • 1st Year Analyst (322) $166
  • Intern/Summer Analyst (234) $95
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”


From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”