Real Estate "Investment Banking"

Hello all,

I'm curious about what Real Estate "Investment Banking" might be all about. I use quotations because I do not know if this is actual investment banking. I work at one of the 3 brokerage houses as a MF capital markets analyst and I see that our firm has a REIB division and the job postings have me interested, but can anyone shed some light on what a Real Estate "Investment Banking" analyst would do at a CBRE/JLL shop?

Our company has acquired a lot of smaller companies throughout the years to grow our overall service line, but is this true M&A? Are they really taking companies public?? (I know that they're not).

Anyways, this is the job description: M&A, strategic advisory, private capital raising, credit and asset-backed securitizations, sale/leaseback arrangements, bond financing, corporate and municipal credit advisory services, asset/portfolio disposition, debt placement and recapitalization.

Insight from anyone is much appreciated and if you happen to work in REIB, I'd feel blessed if you shared what you do.

Thanks people.

Real Estate Modeling Course

  • Real-life RE Modeling Tests from actual Interviews
  • Various asset classes including multi-family, commercial and more
  • Huge discount - until more tests and cases added

Comments (33)

May 8, 2018 - 8:38am

From my humble opinion, REIB works on M&A deals. Either taking RE public or advising on certain aspects of the M&A transactions. For example, CBRE has an REIB group in NY probly consists of 5 people. All they do is advising buy side RE firms chasing M&A transactions. A RE IBer from Morgan Stanley or smth takes private RE companies public.

But then again, I've seen brokers from Eastdil/CB/JLL refer to themselves as IBers. I personally dont give a shit what they call themselves but some might laugh hearing that.

At the end of the day, IB or broker, you do the same shit. You sell.

Array

  • 2
Best Response
May 8, 2018 - 11:03am

This has been discussed countless times. See this thread:

https://www.wallstreetoasis.com/forums/real-estate-investment-banking

In short: REIB is typically an incorrectly used name to define equity and debt brokerage groups who transact on the property level. These guys are debt and equity brokers, NOT "Real Estate Investment Bankers".

REIB should be used to classify groups who handle M&A, IPO, ECM, DCM services for real estate companies and REITS, groups that do NOT transact on the property level. Take the recent Blackstone acquisition of Gramercy for example. Not many mortgage brokers would know where to start on sourcing/executing a transaction like that.

May 8, 2018 - 11:58am

I think the question people are missing is specific to JLL. Is the JLL team comprised of actual bankers? Yea, I know jll has asset level brokerage and those guys are not investment bankers. But the position listed is marketing itself as REIB (corporate M&A) and i think OP would like to know if anyone has worked with that specific team at JLL

Array

  • 4
May 26, 2018 - 11:38pm

True, REIB at JLL is basically raising debt and equity for all property types including Multifamily, Office, etc. BB Banks wouldn't necessarily take the time to raise a great amount of capital for one specific property but for major companies instead. JLL provides a service for this which they call REIB.

Learn More

300+ video lessons across 6 modeling courses taught by elite practitioners at the top investment banks and private equity funds -- Excel Modeling -- Financial Statement Modeling -- M&A Modeling -- LBO Modeling -- DCF and Valuation Modeling -- ALL INCLUDED + 2 Huge Bonuses.

Learn more
May 8, 2018 - 12:53pm

Having worked in the M&A team for one of the leading property consultancies (CBRE / JLL), I would definitely describe it as REIB. The team itself was made up of both property professionals and ex-bankers and the offering is the same as the likes of Eastdil.

We ran corporate M&A transactions, advised on the formation of joint-ventures, LBOs and listed transactions as well as capital raising for new or expanding real estate companies.

I wouldn't classify property level debt or equity brokerage as REIB, so I would make sure the job you're looking at fits in with the above if that's what you're after.

May 26, 2018 - 11:39pm

Real Estate Investment Banks (Originally Posted: 04/17/2017)

So I am a senior in college who had a fourth quarter realization that Real Estate is the sector I want to go into. During college I achieved a national ranking in tennis, was President of my school's investment club, and held two summer internships (neither were in real estate). Anyone have any advice for what firms might still be hiring at this stage in the game? Feel free to PM me.

May 26, 2018 - 11:41pm

BofA Real Estate IBD (Originally Posted: 11/15/2007)

Anyone have more information on BofA's real estate IB group? It seems like from looking at the forums and from word of mouth that they are good at what they do, and are one of the top groups in real estate IB. Any insight would be appreciated, thanks.

May 26, 2018 - 11:42pm

Yeah, i can confirm their Real Estate group is very solid. In 2006 they were up top in Real Estate M&A league tables. They've done equity office and other deals i believe, they did a lot of the financing for the lbo's that happened in that industry. I'm pretty sure the head of the group is in San Fran though.

Great group overall.

May 26, 2018 - 11:44pm

Thanks for the comments, I appreciate it. Do you know what other deals they have done besides EOP? I was talking to a friend and he said that they also did some stuff in the past with Westfield, but not sure if it was M&A. He also told me they did the Public Storage - Shurgard deal, which was pretty huge ($5 billion I think).

May 9, 2018 - 10:34am

Can anyone speak on the hours in REIB especially at CBRE/JLL? I've heard the team at CBRE runs pretty lean, so I would imagine the hours would be longer than analyst hours.

May 26, 2018 - 11:45pm

Real Estate IB - Blockbuster deals? (Originally Posted: 02/12/2008)

In general, do most PE firms have a RE group? Any blockbuster deals in the industry that are noteworthy, and how does international RE been entered by domestic firms?

Also, I realize MS/GS are the two best in this...but I don't have offers from them. What would you do...with, say, offers from DB, Wachovia (NYC office), UBS, or BoA.

May 26, 2018 - 11:49pm

If I remember correctly, Merrill Lynch was the sole advisor to EOP... not sure where your info is coming from.

PLEASE DONT CHANGE EXCEL SHORTCUTS!!!
May 9, 2018 - 4:04pm

I have seen MM Banks looking for real estate analyst. For the most part, when I have looked into it they are in fact an MM IB but they have a real estate arm which is essentially a Debt & Equity Mortgage broker. I think calling this REIB is a little bit wrong since that would be REIT M&A or Capital Raises at the institutional level, not the asset level.

However, when this REIB arm is inside an MM. I have noticed these MMs do buy-side advisory and capital raises, and the real estate practice is just an extension of that we just call them something else in the RE industry if you are dealing with property level capital and debt.

May 26, 2018 - 11:52pm

Prospective RE IB Monkey (Originally Posted: 05/10/2012)

Is the SA recruitment process for Real Estate Industry groups for Big Banks any different than it is for other Industry/Product groups?

When interviewing for IBD internships, do interviewers expect you to want to join their specific team? Take a hypothetical example, if Citi comes to my campus next year for junior recruiting and holds interviews, and my first round interviewer happens to work in M&A, am I expected to want to join his/her M&A team? Or am I being being interviewed generally for Citi's Investment Banking division, and would it be okay to express a passion for real estate IB during the interview even though the interviewer obviously works in a different industry/product group? I know of course for our OCR things like S&T and ECM/DCM are obviously separate, but I am not so familiar specifically when it comes to applying for specific industry/product groups within IBD. If you make it past superday, are you basically just generally accepted into the IBD SA program, and then later placed into a group?

Also, for anyone who's worked in REIB, are the hours as bad as every other industry/product group? I know generally for bankers they are 80 hours, and often go up to 80+. Do hours generally tend to hover around the 80-90 mark for people in REIB? Or does it very often go up to 100+? Just curious, not that I wouldnt be willing to dish it out but it never hurts to know.

May 26, 2018 - 11:53pm

Most bulge bracket banks recruit you into a generalist pool both for summer and full-time, and then have some sort of placement process that allows new hires and groups to meet and then rank each other, with HR conducting a matching process.

Interviewers do not expect you to want to join a specific team, but expressing an interest in an industry, or a handful of industries, is generally a plus for you. It is nice to see a candidate that has a vision of what they want to do that's more specific than just "investment banking." At an on campus recruiting event, if you express an interest in real estate to an M&A banker, he'll probably try to put you in touch with a real estate banker, and that's a great way to get a quick introduction and start a conversation.

I think this goes for virtually every investment banking group at every major bank: the hours vary tremendously across group, firm, time of the year, and time in the cycle. Within a one year span, I have seen groups that were thought to be "lifestyle" groups turn into sweatshops because a new MD got hired or promoted and started pitching like crazy, and vice versa. This applied to real estate and the bank where I worked. On average, I don't think there's a difference, but this I'm sure varies from bank to bank.

May 26, 2018 - 11:54pm

Completed an internship in RE at a top tier BB. Hours were 7am to around 11pm and then maybe 4-8 hours over the weekend. So around 80 perweek, my worst was 90. RE is very different to other teams in terms of the valuation style. As an intern you'll be put into a generalist pool and then asked to rank your choices. Your choices will then be ignored and you'll be picked by whichever team wants you.

May 26, 2018 - 11:55pm

Thanks a lot guys, your information is really helpful and spot on to what I wanted to know. Im guessing networking with Analysts/Associates in REIB groups before next fall help me get placed into those groups should I pass the interviews? And Im also guessing trying to network with VP/MDs is useless because they have better things to do than talk to college kids? (Although maybe a VP wouldnt mind talking to a kid who's interested in the same industry, I dont know).

May 26, 2018 - 11:56pm

I sensed from your initial post that you go to a school with oncampus recruiting and events. If so, just be sure to go to all the presentations, network with whomever you can there, and ask if you can get more info about the real estate group or be put in touch with someone from the groups. Make sure you are diligent and quick about following up with an email. You'd be surprised how slow or lazy most students are to send a quick follow up.

Don't worry too much about rank. If an MD/VP attends an event, they don't really have anything better to do than to talk to you. But analysts/associates are probably the most active. In the end, HR will pick a day and invite all the analysts/associates who attended your school's event or graduated from your school to meet for an hour in a room where they'll flip resumes and fill [15] interview spots with the [500] students who submitted resumes. Hopefully someone you left a good impression on will recognize your resume. If you're "the kid who wants to be in real estate" you might be a little easier to remember.

Also, it's impossible to flip through the 500 resumes, so mostly the 15 spots get filled by people whose names the bankers remember...hence the importance of the follow-up email.

May 26, 2018 - 11:57pm
re-ib-ny:
I sensed from your initial post that you go to a school with oncampus recruiting and events. If so, just be sure to go to all the presentations, network with whomever you can there, and ask if you can get more info about the real estate group or be put in touch with someone from the groups. Make sure you are diligent and quick about following up with an email. You'd be surprised how slow or lazy most students are to send a quick follow up.

Don't worry too much about rank. If an MD/VP attends an event, they don't really have anything better to do than to talk to you. But analysts/associates are probably the most active. In the end, HR will pick a day and invite all the analysts/associates who attended your school's event or graduated from your school to meet for an hour in a room where they'll flip resumes and fill [15] interview spots with the [500] students who submitted resumes. Hopefully someone you left a good impression on will recognize your resume. If you're "the kid who wants to be in real estate" you might be a little easier to remember.

Also, it's impossible to flip through the 500 resumes, so mostly the 15 spots get filled by people whose names the bankers remember...hence the importance of the follow-up email.

Wow man that's really helpful and gives me a lot of insight, thanks so much. Even if the analysts/associates in the real estate group hadn't attended my school/aren't called in by HR to give suggestions, would getting in contact with them still help my odds? You said the people who attended the event might remember me as the "real estate kid", but would it be possible after emailing/talking to the real estate group that they throw in my name to HR? Or is that a stretch and its mostly up to the people from my school/the event?

May 27, 2018 - 12:00am

Nihil cum ut ipsa illo ut in. Dolorem voluptatibus et omnis corporis laborum. Dolorem rerum et dolorem totam consectetur ut voluptas.

Tempore aut consequuntur fugit aliquam aperiam maiores. Excepturi laudantium maiores facere accusamus esse praesentium optio. Ad aliquam labore et sequi est. Nostrum et veritatis velit expedita harum qui et. Quos et nisi eveniet fuga ullam.

Suscipit quos molestiae omnis ipsum perferendis dolore sunt. Animi aperiam officiis hic id est saepe et. Doloribus et non sint. Et at rerum consequatur voluptatem. Architecto laborum mollitia nulla et. Harum modi non illo illum.

May 9, 2018 - 4:15pm

Sed aspernatur ipsum perspiciatis praesentium. Corporis voluptatum exercitationem deserunt odit dolore aspernatur et. Voluptatem est placeat beatae id est optio est.

Vitae aspernatur adipisci molestiae debitis quos est laborum facere. Suscipit laboriosam ad sit. Omnis repellat placeat sed placeat voluptatem quia ipsum eum. Officia et soluta sed distinctio eum qui. Quo rerum sit facilis aliquid error autem reiciendis.

Cumque ut distinctio sed. Aspernatur vitae hic vitae qui. Suscipit aliquam non animi non qui accusantium.

Sequi quidem commodi voluptas sed id voluptas voluptatibus. Magnam non dignissimos harum quod sit non facilis. Nisi aut assumenda minima aut unde hic. Eligendi nobis laboriosam sunt esse magnam suscipit. Et voluptatem cumque doloremque earum et dolorem sit. Fuga adipisci minus accusantium porro dolorem eligendi reprehenderit. Autem quibusdam aut doloremque mollitia dignissimos dolore et.

Start Discussion

Total Avg Compensation

September 2021 Investment Banking

  • Director/MD (10) $853
  • Vice President (38) $367
  • Associates (218) $232
  • 2nd Year Analyst (130) $153
  • 3rd+ Year Analyst (30) $147
  • Intern/Summer Associate (102) $144
  • 1st Year Analyst (478) $135
  • Intern/Summer Analyst (375) $82