Commercial Real Estate Capital Markets Analyst-Compensation

At a private equity style Commercial Real Estate debt fund.
Business: CRE bridge lending and CMBS B piece investment.
As a Capital Markets (Quantitative) Analyst, I do modeling to study fund level (both bridge lending and CMBS B piece investment) returns, various forms financing (CLO, Repo, CLO, PE and special financing), individual investment pricing/return/sensitivity analysis, stress/loss test, and various ad hoc analysis.
90% of my time is on Excel modeling. Tools used: Excel 100%, and 5-10% Trepp for CMBS cash flows.
AUM: ~ $3 - $4 Bn.
Private firm, compare to other firms in the same business, we are among the top 10 players.
Year of current job experience: 1 year.
Other background: Ivy League undergraduate, then 1.5 years in corporate real estate operations, then current capital markets analyst position for about 1 year now.
Benefits: 10 vacation days, 5 sick/personal days, 4% 401k match/ health insurance: $85 per paycheck.
I wanna know the range of compensation for a position like this at such company with the aforementioned benefits in New York City. And the annual raise and bonus typically look like.
Any meaningful info is appreciated.

Thank you,

Comments (13)

Oct 29, 2018

https://www.wallstreetoasis.com/forums/what-is-you...
Also Google the CEL Associates compensation survey.

Oct 29, 2018

Hi MonkeyWrench,
Thanks for your link and CEL.
I looked at the link, it's more relevant to development and advisory/equity.
I do debt.
I work at a non bank lender making short-term bridge loans and invest in CMBS B piece. I work on its capital markets team doing all kinds of modeling.
So, I guess my role is more similar to a real estate investment banking?
If you have to make a guess, what do you say for the base, bonus and raise for year 2?
Much appreciated,
Thanks,

Oct 29, 2018

You gotta do your DD man. There are at least half a dozen data points on that compensation thread that have to do directly with lending and 'capital markets' roles, which broadly includes debt/equity origination, investment sales, etc., . The subsequent pages have even more.

Oct 29, 2018

Most CMBS b-piece buyers are special servicers....
I wonder which firm buys cmbs b-piece without being the special, you make most money by juicing fees

Oct 30, 2018

Hi thhddd,
there are actually a lot of B piece buyers. Big guys like KKR, Rialto, MassMutal/Barings.
The players changed quite a bit after the risk retention rules went into effect at the end of 2016.
A lot exited and a lot entered.

Oct 30, 2018

rialto is the largest b buyer and they are special servicer
CMA has ranking of b-piece buyers and they are pretty much all special servicers or affiliates with special servicers

Most of the non-special b-buyers are in the agency space, like Ares, bridge, Kanye Anderson, harbor, axonic, PIMCO

    • 1
Oct 29, 2018

I can give you one data point
With your background and working experience, you can expect ~$100k-$110k all in working for a bank like capital one in dc area(Bethesda/mclean) and the benefit would be much better (8% 401k and 15 PTO)

Oct 30, 2018

Thanks again for your data point.
Unfortunately, my all-in compensation is way lower than $100k - $110k.
Well, that's the pay at big bank like Capital One.
I work for a private equity style debt fund, with total head count of 50-60, including Capital Markets, Origination, Asset Management, Accounting, Investor Relations, CMBS Investments, and Partners, office managers. Not including back of house support functions like IT or HR.
With this said, working for such a debt fund should pay more as benefits are worse?
I don't know. Unfortunately, my all in is just above $90k.
Would you mind sharing some advice for my comp call in January? How to argue or fight for more bonus, base raise for next year, ect.?

I do wanna mentioned, I came from corporate real estate operations right before this job. I did corporate real estate operations for about 1.5 years. But I did go to Ivy League and studied real estate finance. Pretty good academics. Being on the job for 1 year now, first half, certainly there was a learning curve. Maybe that justified my low pay?
I don't know. But my friends have similar backgrounds but got in JP, BoA, DB, GS, their comp is way much better than mine, close to the range you gave although they do different things not real estate.

Thank you very much in advance for your input here.

    • 1
Nov 9, 2018

I know this is fairly obvious, but if you want a pay increase, understand your worth to the firm. How long would it take them to retrain someone if you were to leave? What knowledge do you have of the firms operations, process, etc. that makes you valuable. I sat down with a VP at my firm who is about to leave our team (told a number of younger analysts at dinner), and he said the best way to get promoted/comp raises in RE is to have and advertise a "one foot in, one foot out" demeanor. If you are valued, and your higher ups don't want you to leave, they will pay you more to stay.

Might be more helpful to simply ask what comp you can expect down the line, and let your reaction do all the talking, but I might be getting ahead of myself there.

    • 1
Oct 30, 2018

The number I mentioned is what an Ivy League undergrad with 2 years working experience should be compensated at banks, regardless of real estate or not

Maybe debt fund has a higher earning potential down the road, I don't know

    • 2
Nov 9, 2018
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