Eastdil secured vs....

A couple of questions about a company like eastdill

1: can you give me some examples of similar companies in NYC (that have a similarly strong reputation)? All I seem to come across are the capital markets divisions of the places like cushman/cbre/jll

  1. Seems like these places are essentially just enhanced mortgage brokers, am I right? Ignoring the property brokerage how are they different than a typical commercial mortgage broker? Only by the fact that they place equity as well?

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Comments (52)

Sep 23, 2012 - 3:37pm

Thanks. I understand the property brokerage part of their business. I'm just trying to understand how "arranging financing" part of their business is different from what a traditional commercial mortgage broker would do.

Sep 24, 2012 - 8:35am
djc225:
Thanks. I understand the property brokerage part of their business. I'm just trying to understand how "arranging financing" part of their business is different from what a traditional commercial mortgage broker would do.

make no mistake, it's really not. like 1 or 2 others have mentioned, yes, they are capable of placing more than just mortgages, but i don't really see them as any different.
Sep 23, 2012 - 3:43pm

I am sure it is similar to a normal commercial mortgage broker.

I don't actually know anyone who works there so I am seaking off the cuff on this, but from their reputation I would also assume that they would have the ability to syndicate larger financing deals then most competitors due to deeper relationships with institutional lenders.

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Sep 23, 2012 - 7:51pm
kmzz:
should learn how to spell eastdil right

yea, i know how to spell it. Typo posting from iphone. But love the valuable insight that you bring to the table, good work dude.

Sep 23, 2012 - 11:15pm

Eastdil specializes in arranging the capital structure of deals. They're really the best when it comes to syndicating equity, arranging senior financing, and layering in a mezz piece. Everyone knows this so thats why they get all the big deals. Closest thing similar to them would be HFF

Sep 24, 2012 - 9:16am

Thank everyone. How about the equity raising piece of their business? I'm sure that (aside from transaction volume/size and reputation) this is what really sets Eastdil apart from a traditional commercial mortgage brokerage.

I'd guess that the majority of the equity that they can arrange comes from their relationships with REPE funds and Insurance/Institutional Companies, correct? Are there others?

Also, I'm surprised that the funds dont take issue with the fact that a portion of their equity provided to the operator/developer gets used to pay the placement fee. Is that really not an issue, or, maybe it's just over come by the volume of deals that Eastdil can bring to them?

Sep 24, 2012 - 10:34am
djc225:
Also, I'm surprised that the funds dont take issue with the fact that a portion of their equity provided to the operator/developer gets used to pay the placement fee. Is that really not an issue, or, maybe it's just over come by the volume of deals that Eastdil can bring to them?

This is a very good question, and I think the answer is yes, people do take issue with it, especially given that a fee for equity placement is so much more expensive than debt - I'm thinking 5% versus 1% (correct me if this sounds high, but it's my experience).

My impression is that many, if not most, operators looking for equity will do it themselves - at least the bigger ones.

Sep 24, 2012 - 11:39am
djc225:
A couple of questions about a company like eastdill

1: can you give me some examples of similar companies in NYC (that have a similarly strong reputation)? All I seem to come across are the capital markets divisions of the places like cushman/cbre/jll

  1. Seems like these places are essentially just enhanced mortgage brokers, am I right? Ignoring the property brokerage how are they different than a typical commercial mortgage broker? Only by the fact that they place equity as well?

  • A couple of examples of similar companies (not just in NYC): Ackman-Ziff, M3 Capital Partners, Cushman & Wakefield's Sonnenblick Goldman (not Capital Markets Group, that's the brokerage arm), and a lot of others. Buchanon St Partners and Lattitude Management (Legg Mason) are two example in SoCal (if you care to know). Banks (both commercial and IB) also have RE debt/equity financing groups that often compete (and out-compete, more on this later) groups like Eastdil.

  • Essentially, most are glorified mortgage brokers that also have the ability to source equity (unless their strategy involves investing their own fund, like in the case of M3 and Latitude). Groups like these have not been doing well since 2008, mostly because the big banks have the capability to finance the spectrum of debt and equity financing nowadays. Today, it makes a lot more sense for a private RE investor (with capital constraints and investment strategies that require the most aggressive financing possible) to bypass a capital partner and go to the bank. Why go to Eastdil when you know Wells Fargo is backed by a multi-billion dollar balance sheet.

  • Man made money, money never made the man
    Sep 29, 2012 - 4:11pm
    RE Capital Markets:
    djc225:
    A couple of questions about a company like eastdill

    1: can you give me some examples of similar companies in NYC (that have a similarly strong reputation)? All I seem to come across are the capital markets divisions of the places like cushman/cbre/jll

    1. Seems like these places are essentially just enhanced mortgage brokers, am I right? Ignoring the property brokerage how are they different than a typical commercial mortgage broker? Only by the fact that they place equity as well?

  • A couple of examples of similar companies (not just in NYC): Ackman-Ziff, M3 Capital Partners, Cushman & Wakefield's Sonnenblick Goldman (not Capital Markets Group, that's the brokerage arm), and a lot of others. Buchanon St Partners and Lattitude Management (Legg Mason) are two example in SoCal (if you care to know). Banks (both commercial and IB) also have RE debt/equity financing groups that often compete (and out-compete, more on this later) groups like Eastdil.

  • Essentially, most are glorified mortgage brokers that also have the ability to source equity (unless their strategy involves investing their own fund, like in the case of M3 and Latitude). Groups like these have not been doing well since 2008, mostly because the big banks have the capability to finance the spectrum of debt and equity financing nowadays. Today, it makes a lot more sense for a private RE investor (with capital constraints and investment strategies that require the most aggressive financing possible) to bypass a capital partner and go to the bank. Why go to Eastdil when you know Wells Fargo is backed by a multi-billion dollar balance sheet.

  • agree with most of this - but wouldn't you say M3 Capital Partners is a bit different? I haven't worked with them in the last year, but me feeling in the past is that they M3CP does do some of the same things as an eastdil, but they also specialize in advising on capital raising for PE funds / creation of custom platforms, etc. - and they've raised some of the big ones, including funds for prologis, mgpa, etc....in that case they're more like lazard/CS RE Private funds group (now greenhill?)... anyways, just a sidenote here

    Sep 26, 2012 - 11:13am

    thanks for all the comments. Can anyone give me an estimated pay range for an entry level position and entry level positions post grad school (i'm leaning towards a masters in real estate rather than an mba)?

    Sep 26, 2012 - 12:12pm

    Some places will give bonuses. Don't expect too much in your first year or two. Pay increases pretty fast i've found, but you are worthless an an entry level analyst until you learn the basics.

    Sep 29, 2012 - 4:17pm

    also, despite being brokers and thus inevitably looked down upon by REPE people to some degree, the guys at eastdil really do have some serious game (at least at the top)... the ceo at my last company used to regularly say that Roy March had been the "best in the business for a long time", particularly when you need to get rid of an asset

    Sep 29, 2012 - 4:22pm

    Commercial RE is prob not the best place to be seeking employ.

    ![ ](https://leancoding.co/QJO0KD " ")
    Sep 29, 2012 - 4:23pm

    Eastdil (Originally Posted: 07/08/2012)

    I have heard a lot of positive talk about Eastdil's brokerage unit on these boards. I'd be curious to hear if being part of their shop would be the ticket to being a successful broker. Do all the of Eastdil brokers kill it or do some of them still struggle to get by as well? Given how highly they seem to be regarded, is pedigree more important or is largely irrelevant as it would be at other national shops?

    Sep 29, 2012 - 4:26pm
    kmzz:
    ES is not a place where u can just join as a broker and test your chances -- sink or swim
    it is run more like an IB. the "brokers" you mention would be the managing directors who bring in the business

    Not sure what you mean exactly by not a place you can just join as a broker and test your chances. If you are saying that you have to have tons of relationships and a strong track record in brokerage, i know for a fact thats not true. I know of someone who got in there at the associate level and didn't even have real estate experience.

    My question was directed more toward their success rates. Even at the national brokerage shops, many brokers struggle to get listings and make a living. My question was if this was the case at Eastdil as well, given that they are often placed on a pedestal and viewed as a more "Wall Street-esque" firm.

    And given that it is more of a Wall Street culture, do you generally have to have strong pedigree to break in or is it like others where a variety of backgrounds are accepted?

    Sep 29, 2012 - 4:27pm

    In many ways Eastdil is in between an investment bank and a more traditional brokerage shop. My observation is that pristine pedigree is more important to them than to other brokerage firms, but less than it is in banking. I realize my answer is not abundantly helpful, but then, I'm not sure it matters. If you are asking because you're concerned you may have insufficient pedigree, there's still no harm in applying. If you are asking because you're concerned about joining a firm that indiscriminately hires and has no appreciation for pedigree, then I can assure you that within the brokerage world at the junior level, you will not do better than joining Eastdil.

    As for the success of senior professionals, I think you are looking at the system the wrong way. Working at Eastdil is no more "the ticket to being a successful broker" than working at Goldman Sachs is the ticket to being a successful banker. Professional service firms with reputations for highly regarded, consistently successful senior professionals (in which I would count both Eastdil and Goldman) have those reputations not because they create those professionals, but rather because they regularly fire mediocre performers.

    Successful brokers convince building owners that it is worth paying them a large fee because, by virtue of their connections, experience, reputability, and knowledge, they will get the best pricing and execution in the market. If there were a simple "ticket" to achieving this, I suppose we would all become brokers, and soon thereafter end up equally unsuccessful.

    Sep 29, 2012 - 4:28pm

    First time poster. Finally signed up after the real estate forum was created and using the real estate modeling course.

    I can speak from personal experience that if you network correctly you can get an interview at Eastdil and do very well without the "proper" pedigree. That being said, all else being equal, higher pedigree will win out, but if you network properly and kill the interviews they are open to hiring people from non-traditional backgrounds. PM me if you want more info.

    May 18, 2016 - 3:55am
    reLA:

    First time poster. Finally signed up after the real estate forum was created and using the real estate modeling course.

    I can speak from personal experience that if you network correctly you can get an interview at Eastdil and do very well without the "proper" pedigree. That being said, all else being equal, higher pedigree will win out, but if you network properly and kill the interviews they are open to hiring people from non-traditional backgrounds. PM me if you want more info.

    PMed

    I had a flair for languages. But I soon discovered that what talks best is dollars, dinars, drachmas, rubles, rupees and pounds fucking sterling.
    Sep 29, 2012 - 4:29pm

    Eastdil, HFF (Originally Posted: 07/01/2013)

    I have been doing real estate financial analyst for almost four years, and I am thinking about becoming a broker in real estate capital markets.

    I have learned a few firms such as Eastdil and HFF. Did anyone work for either of these two firms? How is it like as a junior broker in the firm?

    Thanks.

    Sep 29, 2012 - 4:31pm

    I want to be a deal maker and brokerages gives potentials of making more money.
    Also my language background would be an advantage for me to reach out to a great amount of investors from a hot market.

    Sep 29, 2012 - 4:37pm

    HFF/Eastdil only do capital market transactions like investment sales, mortgage banking, equity placement, structured finance, loan sales. So I would imagine the groups are divided out like that (loan sales guys, investment sales guys) with a few managing brokers and then the junior brokers or analysts who provide support to the team.

    As far as getting into one of these jobs as a broker, I have no idea besides networking. Real estate brokerage is all about networking. They obviously advertise for analyst positions. You said you work for a brokerage, where do the analysts from your firm go?

    Sep 29, 2012 - 4:39pm

    How does Eastdil Investment Sales work? (Originally Posted: 02/03/2014)

    I been seeing a lot of trophy assets going through Eastdil's invesment sales team. I am curious to know how Eastdil seeks out buyers for these assets. Do they already have relationships with major investors and just pitch the asset to them? Unlike traditional investment sales, Eastdil seems to focus on the attractive RE assets, so I was just curious to know how trophy assets switch hands. Always been fascinated with this side of RE.

    Array

    Sep 29, 2012 - 4:40pm

    They solicit buyers in a general bid/purchase process much like any other firm does (email fliers, nda signing with a "deal room", etc... very standard). I have only looked at one deal they have provided us, but that's the take I got from it. I do agree that they offer some of the more attractive deals I have seen as of late, but they seem very selective on who they work for and who they talk to. Personally, I have never gotten access from general solicitation via their website or other channels; a principal at my firm forwarded me one of their "call for offers" solicitations and it was relatively straightforward to access them from there.

    Sep 29, 2012 - 4:44pm

    For the scale of assets they are selling there are only X amount of players that have the capital to play. They aren't secret and Eastdil has relationships with all of them, knows their appetite for different product/market/risk, so they send out packages appropriately. It's not like local brokerage where you're turning over rocks to find the incremental buyer/dollar. The market is as liquid as real estate can be.

    And loopnet/debtx.

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