real estate development

I'm about to start my summer internship at a large development firm on the west coast and wanted to see if anyone can speak to what tasks they have had as a development/acquisitions intern? Just hoping to get an idea of what I should be learning before so I'm not dead weight, thank you!

03 Jun 2020

A bit left field here given that this is mainly a finance forum, but has anyone interested in CRE, and more specifically development, given serious thought to starting their career in a construction role as opposed to something more traditional like AM or IS? Seems to me that if you're entrepreneurial and hope to own run your own shop one day, having the construction experience would not only save you a few points on the cost side of things, but give you a better understanding of the development process itself. To clarify, I mean by either managing the projects yourself, or having the

22 Jan 2020

I've been working with a well known developer in the Northeast US and listened to his story as to how he got involved in this business and why. What's your Why, When, How and Where?

12 Nov 2019

Long time lurker, first time poster here. I'm a recent college grad and have been lucky enough to land a gig at a development shop (NYC), product is multifamily - both value add and ground up. I love the job although things can get crazy at times as my firm is small and we have to wear a lot of hats (which is great from an experience perspective but can get pretty hectic). I am really liking CRE and how different the day to day is at my job. I feel like there are a lot of opportunities for creative problem solving and entrepreneurial thinking in the industry especially working on the ground in

20 Oct 2019

Long time listener, first time caller... With the recent, rapid increase in lumber pricing, I was wondering if anyone had any thoughts on some sort of "hedge" against future price escalation. For background, I work for a southeast focused multifamily developer. Like many of you here, we're seeing a pretty steep escalation in the cost of lumber. While pricing declined pretty significantly in October and November of 2020, as I'm sure most of you know, it's recently risen well above the prior 2020 peak. Although future markets are anticipating lumber will come down, I'm concerned about the timing

21 Jan 2021

WallStreetOasis.com has been invaluable to me since I decided 5 years ago to make a career change into commercial real estate (from non finance) so its my turn to give back. I hope my story can help some people. ####Background * Extreme non-target school (undergrad and MBA) * Worked 10 years in non-finance employment (and unemployment as a stay at home parent), did some entrepreneurial ventures * Got a CRE brokerage job in secondary market from a different city. * Moved to RE development after a year * Got hired as VP of dev after 3 years * Look like a loser on paper so I've had to rely 100%

19 Jul 2019

In this discussion I'd like to receive others perspectives on "Sweat equity partnerships". After speaking with an attorney last week, he mentioned one of his clients being only eighteen years old and owning twelve income producing MF properties. I do not know the number of units in each property, but i would assume it's a minimum of 8-16 units. After asking some brief questions the attorney disclosed that the partnership was 50/50 ownership and the eighteen year old's percentage was "Sweat equity". Has anyone ever been in a similar partnership where you receive equal ownership and your

27 Jul 2019

I live in a secondary city and a lot of infill neighborhoods are seeing tremendous growth. I've seen developers rezone sites that were originally 60ft MAX, and their variance was able to grant them the right to build 195 ft or 19 stories rather; extremly rare cases but I want to illustrate my concerns below: I have identified some high profile sites that are off-market and contacted some brokers about the whisper prices and not to my amazement the sellers tend to be incredibly unrealistic considering their site's in- place zoning. Since the only way to pencil these sites would be to get a

09 Oct 2019

Let's say you are an investor looking at an opportunity to capitalize either mezzanine debt or preferred equity to fund the development of an apartment building which will cost $100m. 65% construction loan, 15% mezz/pref, 20% common equity. Whether you choose to capitalize preferred equity or mezzanine debt, the interest/pref rate is equal rate and accrue-pay, cash flow distribution priority is equal (fully senior to common equity), and either way you would not participate in the decision making process. Assume standard market-based legal documents with no inter-creditor agreement issues with

23 Apr 2019

Hello all, Curious what you all are seeing with regards to yields on cost in different types of development projects given fluctuation in commodity costs. Which property types/markets are people getting the highest yield on cost? Any change in construction cost estimates given recent collapse in commodity prices?

28 Dec 2018

Hi All, I started off my career working in community/economic development and saw that the developers had the most impact, so I went back to school at a top 20 MBA program and did a concentration in real estate. During my MBA program I could not find a development internship (my school is in a city that is primarily driven by the oil industry, and oil was tanking at the time) so I did an brokerage internship at one of the top 2 brokerage firms in the country. I learned all about the office, retail, and commercial markets. I finished my MBA and still could not land a development job, so I took

04 Nov 2020

I want to do a 5 unit townhouse development. My life goal was to get into real estate, but unfortunately I was pushed into Pharma PE. I have two years of real estate experience in undergrad as an acquisition analyst for a hospitality PE firm. But since graduation I've worked in Healthcare PE. I now have a good amount of capital that I'd like to finally use to jump into development. I've chosen to do a townhouse development of 5 units. I've read some of the books that some highly regarded MSRED programs use. I've built out my contractor list and an actively involved in the Real Estate

24 Oct 2020

I graduated 3 years ago with a BS degree in Finance, good GPA at a pretty good school and started working in a Commercial Banking Leadership Program. I then worked as a commercial credit Analyst for about 18 months before getting promoted to a portfolio manager working directly under a CRE lender. The thing is, I am extremely bored. I like Commercial Real Estate, I love underwriting the deals, but commercial lending is boring and I have ZERO desire to become a CRE lender or any role involving sales/production. I'm analytical and detail-oriented, more of a "do my own thing" type of person and

21 Oct 2020

So I recently accepted another position and am starting my new job in a few weeks. I currently work at a mom and pop development shop who have about 250 employees, 95% of the employees are construction workers and property managers. I am the only financial analyst in the company. I gave them 3 weeks notice and they are still super pissed at me. They even had the audacity to ask me to ask my new employer if they could wait 4 months for me to start. I understand it can be a burden to find good talent quickly, but am I crazy for thinking that 3 weeks notice is more than enough? They also say that

17 Jan 2019

Afternoon folks, Working through a multi-unit development case rent now and I'm curious how you go about modelling rent increases while taking into account absorption. I've got rent increases of yearly 2% increases, with 25 unit absorption per month from development completion. Here's how I have it set currently: (1+Growth Rate)^IFERROR(ROUNDUP((Dev. Completion Month-Current Month +1)/(Compounding Frequency*12),0)-1,0) Using the current method tenants who sign towards the end of the year don't have growth applied on a pro rata basis Any help would be much appreciated. PDG

09 Oct 2020

Afternoon folks, Working through a multi-unit development case rent now and I'm curious how you go about modelling rent increases while taking into account absorption. I've got rent increases of yearly 2% increases, with 25 unit absorption per month from development completion. Here's how I have it set currently: (1+Growth Rate)^IFERROR(ROUNDUP((Dev. Completion Month-Current Month +1)/(Compounding Frequency*12),0)-1,0) Using the current method tenants who sign towards the end of the year don't have growth applied on a pro rata basis Any help would be much appreciated. PDG

09 Oct 2020

So things just got VERY hairy at my work. I am an analyst at a multifamily real estate development firm. I work on underwriting potential opportunities as well as project MGMT related tasks. My coworker (superior) just got an offer at another firm. His position at our company is called Development Associate. His job is much more intensive and requires more in depth knowledge as it pertains to project management. He gets paid significantly more than me and there may be a play to take on his responsibilities and bump my pay considering we run incredibly lean (Principal, Development Associate

08 Oct 2018

Hi all, New to the forum, but from the reading I have completed, there is a wealth of knowledge and information to be gained from this forum. I am currently working for a smaller development firm as a project manager. I have been with the company about 3 months, and have a few questions for this community regarding my future opportunities. This firm specializes in ground up urban infill multifamily deals. The principals source, underwrite, and negotiate the deals, then hand off to the PM. The PM manages the entire design, construction, and close out process post acquisition. Obviously with the

29 Sep 2018

Hi guys, Hoping to get some feedback from some vets in the real estate development arena. I am a civil engineer with 2 years experience developing large commercial industrial sites in Texas including the last half year managing projects. Ive done work for some of the big boys (Hines, Trammel Crow, etc) and do a lot of estimating, feasibility, design and permitting. I'd like to move closer towards the development side (research prospective sites, directing/budgeting construction type roles) in a few years once my career progresses further. I'm still very young (24) and am hoping that over

12 Sep 2019

Hi All, I'm giving a quick presentation for one of my undergrad classes regarding the opportunity for modular real estate construction. I'm specifically looking for information regarding financial incentives such as increased returns vs. traditional construction, as I am aware of benefits such as time, labor costs, reducing waste, etc. To be transparent, this is a topic that I find extremely interesting but do not know a ton about. Any information/opinions would be valuable to me. Bottom line, is modular construction worth it? If anyone has experience with modular construction and could shoot

28 Nov 2018

Is anyone familiar with Majestic Realty Company? They're a large development firm in California (in a little known city called City of Industry). It's owned by Edward Roski, who is a pretty famous RE guy in CA and a multibillionaire. They seem to heavily recruit at USC (just from my personal LinkedIn browsing). Anyone have any personal opinions, insights, or comments for their development team?

30 Jun 2018

Hey WSO RE professionals, I'm heading sales and biz dev for a startup that's designing a deal showcasing and investor management product for small to mid-sized developers. We're looking for short 15-20 min calls with developers who want to more effectively manage and scale the number of investors they work with. We have a demo and would greatly appreciate any feedback you may have for us. Our product lets developers showcase deals on a customized online portal and manage the process from deal solicitation through closing. We're developing features that will help streamline processes like

05 Dec 2018

I am currently a junior at Rutgers University, and am studying communications and entrepreneurship with extra classes in real estate law and finance. In addition I am a licensed NY real estate agent and have been working as one part-time while in school for the past two years. Ive independently gained lots of knowledge on the real estate development field by doing research on my own and plan on obtaining an intensive real estate development internship in NYC this summer. I will be graduating next December and am nervous as to whether I will have enough credentials to secure a job with a NYC

11 Nov 2017

I am looking to get into real estate development but have a minimal knowledge in real estate finance. I am aware that in order to enter the field a satisfactory knowledge of real estate finance is necessary. What is the best course I can take online that will provide me the necessary real estate finance information to be successful in the real estate development field? And what finance concepts in particular are necessary for real estate development if I was to just do research on my own?

06 Nov 2017

I've heard real estate developers say that you need to develop relationships with bankers to obtain favorable funding terms. Who exactly are they referring to within the hierarchy?

20 Mar 2019

I want to do a little brainstorming on the topic of redevelopment in emerging neighborhoods. I don't want the standard "cash advance, cash for gold, gun shop, liquor shop" response or the ever so cliche micro-brewery. What kind of cool developments have you seen in rough areas with the purpose of turning them around? Some examples: Pinewood Social (Nashville Bar, Outdoor Space, and Bowling Alley) Krog Street Market (Atlanta Food Court) [Highland Mills Lofts (Charlotte Decrepit Mill Turned Into Apartments)](http://www

10 Feb 2017

I will be taking the GMAT exam in 2 weeks and applying to the Columbia MSRED program for the upcoming Summer 2018 semester. I graduated from a mid tier undergrad program with a 3.43 GPA, after which I started an Ops position at a top 10 asset management firm (in terms of AUM), where I have been for 1 year 9 months at this point. I don't have any formal experience in the RE industry. My question is, what does it take to be accepted into the Columbia MSRED program? What have students scored on the GMAT, and what score should I be aiming for? What type of recommenders do they value, etc. Thank

24 Dec 2017

I'm graduating from a large state school with lots of alumni everywhere. I've got good experience, I'm personable, and I'm graduating with a 3.0 cum GPA (not fantastic). I'm trying to figure out if I want to do RE Development, or the RE finance side (REPE or REIT). I've had good experience working in the sales side for a tech startup, I've also worked for an IT firm doing database work and client relations. Currently I'm at a commercial brokerage doing due diligence, database work, and analyzing lease abstracts and trying to identify trends. I really enjoy the RE work. I've spoken to a few

03 Jan 2017

Looking for current students and recent grads in the central/northern NJ area who are looking for an entrepreneurial venture and interested in real estate investment and development. DM me for more info

20 Mar 2018

I'm thinking about getting a Real Estate Development Certificate that my school offers. It's four extra classes and wouldn't delay my graduation. The only downside is I pay an extra $2000 for tuition, and it might hurt my already fragile GPA. I'm also thinking about getting my MBA or MSRED if need be. I'm targeting Columbia, MIT, and my undergrad as a last choice. Questions: 
Is there any way I can jump into real estate development with my civil engineering background and real estate development certificate straight out of undergrad? If not, what would be the best career path to take to get

09 Jul 2016

Hey Everyone, I am currently an undergraduate student who is graduating this December. I interned with a CRE development company last year and built a lot of base knowledge. I am currently working with an investor who was a junior developer on some projects over the past few years and is now trying to break out on his own. I am an analyst with him. I connect with brokers to try and find smaller deals to get under our belt with some investors we know before we try and do more capital intensive projects. I also underwrite the deals, send letters and cold call to try and find off-market deals. I

23 Mar 2020

Frequent reader, first post. Non-target undergrad (pol sci major). Have had success in the Boston area in vc tech space due to connections, work focused in strategic partnerships. Lot of global work and was a principal level at 24. However, despise the industry and not a cultural fit either. Followed the herd out of school and had a lot of contacts. 3 years out and looking at an MBA focused in RE Finance or a MSRE with career landing in NYC. At the point where I want to pursue a passion/niche. Have known I wanted change, then took the CareerBuilder test they give at MBA and got a 99 in RE Dev

21 Nov 2017

Hello All, I am exploring next steps for my career and would love to get this community's advice on what would make sense for me if I wanted to work more directly in real estate. I currently am a 2nd year analyst at a top non-MBB consulting firm, and have gained a good amount of project experience optimizing company footprints and real estate portfolios, either sparked by mergers or a general desire to cut costs. I will also have the opportunity to work on site selection and workplace strategy projects as well. I have a background in residential real estate too. The way I see it, I could aim

07 Jan 2016

So I have an interview set up with a real estate company (development, construction, investment, management). I am wondering what salary range this job is in. The factors are: one hour outside of major city (think allentown pa, stamford ct type place) company is around 200 employees projects are non residential and range from office buildings to campus buildings to downtown renovations. revenue appears to be under 100MM I am one year out of MBA Any thoughts on what I should say when I get the inevitable salary question. thanks.

26 Nov 2014

Is anyone familiar with Atlanta's major players in commercial and mixed-use development? I'm hoping to make a move from a well-known boutique investment bank to a real estate development firm. I would prefer to be in Atlanta due to personal circumstances.

01 Sep 2015

Hello all, I am currently an undergraduate senior with an offer from a top-tier, multi-family developer based in a large city with a hot market; however, my boss has asked me to come up with a compensation plan I would be pleased with. While I do not want to offend my boss by asking for too much, I would like to make a decent living. Would asking for $75,000 with milestone bonus potential (close of escrow, breaking ground, etc.) be fair compensation? Please let me know your thoughts. I really appreciate any advice that is given. Thanks in advance. Brad

08 Oct 2014

So this is a question for those who are in the actual real estate development game and have contact with the general contractors who build the projects. How does your shop go about finding general contractors for project? Is it normally word of mouth, or is it the guys who 'wine and dine' to get access to what you're building or just a hand select view which have done work before and just keep going back. I know at the RE/GC level its not only about price (as it is for subs/general) but what does this process look like in general for you guys. Do you just ship over the engineer plans to the GC

28 Jun 2016

Guys, what is the difference between a real estate development analyst and a real estate development coordinator? I am applying for jobs with real estate developers and it seems that coordinators are more senior than analysts. Or does a development analyst have a different career path?

14 Dec 2014

How many (on our forum or know of anecdotally) have taken this career route; and have found the experience rewarding/beneficial on a near-term and long term basis? What did you learn? Where did the experience ultimately take you? Upside/downside of such a position? Positive or negative branding? Salary expectations?

02 Apr 2015

I am talking to a few hnwi in the next week about buying/recap. An entitled and permitted affordable condo highrise with 180 units. The stack has $35M in bank loan, $15M loan from the state, and $Xm for the land. Land is $7-8M. In place with very little new construction due to extreme construction, land, and entitlement cost. Very liquid and very very very solid re market. (4% caps are still trading...) Really low risk deal, similar buildings in area sellout overnight as low income condos are very rare and entitlements and financing this type of deal takes 4+ years. What kind of irr should an

28 Jan 2017

People talk a lot about how real estate development is an extremely localized business. It requires not only knowing your local market and its intangibles, but all the relationships that help business grow--whether it be with local officials, architects, contractors, subconsultants, permit reviewers, etc. I've lived/worked in my major market for my whole life, have a great job, etc. but want to switch it up and try something new before it is too late. I am grappling with the relative stupidity or short-sightedness of giving up all the progress I have made to date by relocating...anyone else

28 Sep 2015

23 Nov 2015

One of the biggest things I've seen how far good questions go during an interview. I have some upcoming interviews in Brokerage, Develpment and REPE and was hoping to get some help on some good questions. I've added a few below and would appreciate any others! Looking for Developer questions too. Brokerage: How does your team differentiate itself from others? What is your deal volume? -How much does your team underwrite and how much does it close? What does a career path look like for someone starting at this position? How much room for growth is there on your team? (some are top heavy and

22 Apr 2019

if you ultimately wanted to work in development as a project manager, and had an opportunity to join as an analyst crunching numbers etc and getting promoted through the ranks, would you see any value in instead opting to do acquisitions for a few years at a big investment firm? my thought is if I jump to a developer now, then i will be there long term and will basically be working on a handful of projects for years. i will probably get damn good at development but i will never have the exposure to churning through tons of deals and really building my investor mindset. i feel like that

19 Sep 2015

I've been in construction management for about 8 years in the Boston area and looking to get more into the development side. Thinking about pursuing an MSRED to help the transition. Anyone have any input on which programs would be a better fit; NYU, Columbia, MIT, Baruch?

10 Apr 2014

Can anyone suggest any resources be it books or primers on real estate development? I'm staffed on a few developer driven 142 d deals and would like to better understand the development process.

15 Apr 2016

Sup everyone I'm applying to a few schools for Fall 2019 and wanted to get some feedback on how I could go about asking my current boss for a letter of recommendation. I hope to be able to continue working full-time while studying part-time but the MRED program I am shooting for is quite expensive, and there is a small chance I might have to quit next year and go to a public school. Also, for Real Estate Development, what are desirable traits I should ask my boss and others to emphasize in the letter? If one of the people I plan on asking is part of a school's board of directors/ trustees and

05 Sep 2018

Hey guys, I was wondering if any of you have experience with this program. I was thinking about taking a few classes to learn more and to jazz up my resume a little bit. I graduated this May and am currently working in a back office ops role, last summer I interned at a small brokerage/valuation company and I want (need) to get back into real estate. Would most likely be aiming for investment sales or any sort of development role.

07 Jul 2015

I am a recent grad with a finance background and have an interview coming up for a smaller company competing with the likes of Situs. The position is for a CMBS Analyst underwriting on agency and non-agency (Fannie and Freddie) loans internally within the company (mostly concentrated on the Multi-family Fannie and Freddie Mac side). I wanted to find out more about what kind of compensation structure I can expect (more in depth than Glassdoor, if anyone has insight into bonuses would be awesome), career paths following this position and any other general info on the industry such as, hours

11 Jan 2017

Hi I was wondering if anyone has any experience with Fore Property Company? How are they perceived in the development industry? Any insight into the company? Thanks

07 Sep 2016