Received an offer, need help deciding
I received an offer at a small residential/multifamily development/acquisitions company but have to decide between that and 2 other companies. One of the other companies is a multifamily asset management role at a small company and the other is a senior living asset management role at a fairly large REIT.
While I think I would enjoy asset management, I would slightly prefer acquisitions. Its a close call. Was hoping for some feedback and suggestions. I'd be happy with any of the roles.
Would it be hard to transition from mostly residential/small amount of multifamily apartments to another asset type?
Also if I decided upon asset management would I be able to lateral in the future to acquisitions if I decided to go that route?
Thanks for any suggestions.
It's a tough one. On the one hand, having a big name on your resume will benefit you forever; on the other hand, acquisitions/development knowledge has larger upside for your career in the future. Again, on the other hand, asset management is the least cyclical, so you won't be out of a job in a downturn.
It's a tough call. For me personally, I'd go with the big name early on in my career, but it's not by a lot that I would pick that role over small company acquisitions/development--it's like a 51-49 split. I definitely wouldn't do asset management at a small company--if I were going small early on in my career I'd do development/acquisitions. Paradoxically, the asset management role at a smaller firm, for some people, is the job you ultimately aspire for, but only at a really senior level once you've gotten the hundreds or thousands of reps.
Probably go with the REIT for a year or two and try to find something else after that.
In which city are you finding all of these opportunities?
asset management is boring as hell. if the development shop has good deal flow I would take that all day. The big REITs are great, but you will likely learn a lot more working a small shop that is understaffed than at a big REIT. Depends if your objective is to learn as much as you can so you can start doing your own deals, or building a resume for the long haul in the institutional world.
You don't mention compensation at all. Not focusing on it above all else for your first gig is the right move, but it still needs to be a factor.
That said, like everyone else, options 1 and 3 are your best bets. Either do the role you want or get the brand name on your resume. Don't go for a job you don't want with a company that won't help you.
It depends on your objectives.
Based on my objectives, no question I would go with the development role. You will learn so much more than in AM. Maybe it's just my company, so if others dispute this I'll concede to their experience... but AM literally just updates reports all day, they don't learn as much and I feel like they don't have as good of exit ops. Plus senior living sounds depressing.
To your point, a shitty AM role can suck the life out of a man. It depends on what the AM role is I guess. I have had bad AM roles and interesting ones. Some AM roles will include regular acquisitions and dispositions and redevelopment and renovation analysis. Good ones have all kinds of challenging transactions (management changes, refinances, capital planning, etc.) and will definitely provide in-depth knowledge into the industry in a way development/acquisition never really can.
Well there you go. I was talking to a colleague today and saying how we really lucked out as both of us enjoy our jobs. It's very hard to tell from an interview/job description what you'll actually be doing and the only real way to tell is hearing it from someone that's been there. I'd find a way to figure out what really goes on day-to-day if you can.
I’d go asset management at the healthcare REIT. My first job out of college was in senior housing and I was a little skeptical of it at first, but I’m very happy I landed there. Once you actually start working in the business, you’ll see it’s an exciting place to be. Even if you do hate the property type, senior housing is easily transferable to multifamily (and maybe hospitality too?) at the junior level.
Also at a big company, there will probably be more opportunities to move around internally. If you’re a rockstar, they would rather place you on their senior housing acquisitions team / move you to the medical office team than let you leave for a PE fund. If it turns out their internal mobility isn’t as great as I’m describing, you’ve got the brand name that will help you move externally. You’ll be hit up for senior housing PE / REIT / Lending jobs after 1 year at the REIT (can provide some personal stories about this via PM)
Pros: -Brand name at the beginning of your career -Senior Housing is niche, but it’s growing like crazy and very easily transferable to vanilla multifamily at the junior level -Almost certainly pays better than a small, local development shop -Will see lots of properties/deals, variety of markets especially compared to small developer -opportunity to move internally as well as externally -Large reits are less likely to fire you in the downturn compared to a super lean developer. On top of this, senior housing (excluding independent living) is needs-based so it’s less affected in downturn -If you're only looking at triple net lease facilities, that would be less interesting -Moving to acquisitions is common, but that’s not exclusive to this position
Cons: -Potentially more silo’d at a big corporation versus a smaller shop where you’ll be wearing lots of hats. But as mentioned by others, one of those hats might be investor reporting, accounting etc. -Senior housing is niche -asset management isn’t as interesting as acquisitions -If you're only looking at triple net lease seniors housing, that's a definite negative aspect of the job
As a disclaimer to the above, it totally depends on which “small developer” you’d be working for. There are some small owner-operators that are great places to learn. Others will pay you dirt and give you grunt work. As is usually the case with these posts, there’s incomplete info which is fine because you need to stay anonymous. But this is my take given the info I have
JSmithRE2010 Can you comment further about the NNN?
greekmyth is this Colony? PM me if you want to be discreet.
None of the companies are Colony
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