Real Estate "Investment Banking"

stev0026's picture
Rank: Senior Baboon | 206

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.

Comments (34)

May 8, 2018

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.

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Best Response
May 8, 2018

This has been discussed countless times. See this thread:

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

    • 4
May 8, 2018

^This

REIB = M&A, IPOs and Capital Raises (mostly for REITS)

Brokerage = Connecting borrowers with lenders for individual property acquisitions.

    • 1
May 8, 2018

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

    • 3
May 8, 2018

Can you check PM?

    • 1
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May 26, 2018

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.

May 8, 2018

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

What kind of internships did you have?

May 8, 2018

You could also be advising clients on private M&A activity, like acquiring a re fund.

May 26, 2018

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

They did do the EOP deal and like you said, a significant amount of their work comes out of the San Francisco office. Heard mixed reviews about their Charlotte group though. Not as strong from my understanding.

May 26, 2018

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

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 9, 2018

It depends entirely on deal flow and whether you're working on live projects or pitch work.

Typically 60-70 hours per week, but can spike much higher during busy periods and with weekend work.

May 26, 2018

My PE group has a RE group but thats because we specialize in real estate based acquisitions in various industries (i.e. retail, restaurant, gaming & lodging, etc).

BX's EOP deal is one of the most interesting deals during the past 2 years

BOA has a great IB RE department (top of the league tables past 2 years)

May 26, 2018

BofA SF did BX's EOP, correct?

May 26, 2018

No, BofA NYC did EOP

May 26, 2018

Hmm - I know somone at BoA SF RE whose team worked on the deal. I'm sure NY and M&A was also involved, but the RE industry team out of SF handled the deal to the best of my knowledge. Cassman, aren't you still in school?

May 26, 2018

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 26, 2018

Monkeypoker - you're right. ML was sole advisor to EOP, BofA and Goldman advised BX. Anyways, pretty sure it was BofA's SF group, nonetheless.

May 9, 2018

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

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

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

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

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
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 26, 2018

Get in contact with everyone you can without being annoying. Anyone could potentially throw your name in.

May 26, 2018

Gotcha, thanks!

May 27, 2018
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May 9, 2018