Would be so grateful for any help here
Hi WSO,
I am summer intern for a bank in the real estate finance group and I work in underwriting on both CMBS and balance sheet deals. My manager wants me to give a presentation at the end of the summer in front of the team. The presentation could be on anything, so I am not sure where to begin or what to do. I am not given any feedback on what the previous summer interns have done. I am absolutely dreading this and could not be more anxious and nervous. Any former summer interns here who did a presentation at the end of their summer? Or any analysts that did a presentation? It can be any topic that is real estate related. Would be so grateful if anybody here is kind enough to send me their slides or presentation so that I can have an idea on what to do. I would really appreciate any help, thank you so much!!
Talk about how rising interest rates would affect your line of business. Super easy analysis to do and explain but also a very relevant topic in today's market.
Also, relax. FT employees are super nice and forgiving with intern presentations, they just wanna see that you're polished and wont choke if you're ever put on the spot. If you're really afraid of public speaking, talk to your doctor about Propranolol. It's a miracle drug for public speaking/interviews but it's not addictive or psychoactive so doctors will gladly write a prescription for you. I still take it every now and again if I'm expected to speak at a big event or present to a large group of investors outside the firm.
Thank you for your insight and advice! This is kinda what I want to do, something that does not have to do with a particular deal that I worked on. The problem-our solution approach does not really work here as we are not a bridge or a hard money shop, we pretty much do only vanilla stabilized deals that does not require any creative structuring on our part. So, I would really want to do something that does not speak about a particular deal. Do any other ideas make sense on the top of your head? Any presentation that you saw recently that was interesting? How about technology in commercial real estate? Thank you!
Rising rates still affect any lender in the form of increased default risk and decreased prepayment risk. Technology in real estate would be great if you can somehow identify a specific part of your firms deal process that could be expedited or improved with it.
Could also talk about Dodd-Frank repeal and how it will stimulate RE lending.
Second this. Discuss trends or emerging ones that you’ve experienced and how they affect the outlook for this line of work.
I would probably do like a credit committee pitch for a fictional (or real) property.
Just got an idea. I read this post https://www.wallstreetoasis.com/forums/data-center. Lots of good nuggets on there.
Two weeks ago, we got a financing request for a data center and basically all of us were clueless. We had absolutely no clue on how to approach this, just reading through the lease was challenging as even rent is not a simple $/SF number mentioned.
So, how does this sound- a 10 min basic presentation/ primer on data centers, what they are as a product type, the expected surge in demand for them and thus the need to finance them, the challenges and unique attributes to them, etc.
I feel like this is something that is somewhat relevant to both originators and underwriters from a very a basic educational standpoint. Any insights, thoughts or does somebody have any data center presentations that they would like to share? Appreciate any help.
Couple of topics you could cover: How technology is changing RE. How transportation options (self driving cars, uber, etc.) are going to change RE
Though I like the data center idea, there have been a number of CMBS loan securitized with data center collateral. But I agree that unless you have closed one, you'll likely be clueless about the nuances.
If you want to go this route I would suggest i) Look up all and any data center deals you can find, ii) Read their term sheets (if they are SB deals or large enough conduit deals to warrant a write-up), iii) Read the rating agency pre-sales as they have enough industry data and finally iv) use good ol fashion google to get a sense of whats going on in the industry.
To get you started off - there were a number of buildings in NYC that housed (and still house) data centers, however a lot of those data center tenants have been moving to JC (ill let you figure out why yourself as its an easy answer). One of the things to watch out about data centers is that they often pay above market (gross) rents relative to office tenants so if you have to re-tenant the suite with a traditional office tenant, they'll likely pay less on a gross basis. In addition, the landlord may potentially have to provide a higher TI to that new office tenant in order to make the space 'office worthy' (I've seen that happen and modeled a number of times).
Good luck.
Hi, thank you for your insight! Really Appreciate it! I was reading this report by S & P on a recent securitization https://www.spratings.com/documents/20184/769219/VantageDataCenterIssue…
But I could not find any info on pricing? I thought since I will be presenting to originators/underwriters, it will be helpful if I can explain to them what they should expect from a financing/pricing standpoint.
Would you happen to know where to find the pricing info for data center loans? or do you have a ballpark pricing estimates on :
stabilized data center with credit tenants, transitional data centers, ground up construction with preleasing in place and no preleasing in place? Appreciate any help or insight, thank you!!!
Pricing for CMBS loans is primarily dependent upon i) their rating agency outcome and ii) liability spreads for CMBS bonds at the time. As far as a balance sheet hold would be considered, that would depend on your specific lender and how a data center is considered capital treatment-wise.
I think you should get familiar with the asset class and perhaps look at how deals/loans priced rather than trying to tell originators how to price their loans.
You may want to consider securitization apart from traditional CMBS (kind of dry).
Think about some of the more interesting transactions that have gone down in the short history of the industry.
The Rockefeller Center transaction from the mid '80s comes to mind. Lots of convoluted facets to that gemstone. Good entertainment value and some practical lessons to be learned.
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