Introduction To the casual observer, “real estate” may seem to be one single asset class. Perhaps your personal account is exposed to some tech, some healthcare, and maybe some REIT stocks. After all, within real estate, the gist is that landlords charge their tenants rent. How much variance can there be? But when you pry […]
Life Science and the Urban-Suburban Multifamily Divide During COVID-19 Read More »
Behavioral vs. Technical Questions Real estate private equity interview questions can be generally categorized as technical or behavioral. Broadly, behavioral questions ask who you are (subjective/qualitative) and technical questions ask what you know (objective/quantitative). As with Liberal Arts versus STEM, the ways in which you are tested vary. Technical questions probe your mastery of a
Behavioral Real Estate Private Equity Interview Questions Read More »
Your Big Bet on Last-Mile Industrial Let’s imagine a scenario where a real estate equity investment doesn’t go quite as planned. Let’s say you’re two years into an investment you made in 2020, committing fund equity into a 30-property last-mile industrial portfolio. Back then, industrial real estate was hot and cap rates were only going
When Real Estate Private Equity Investments Go Bad (CMBS Part 1) Read More »
Welcome back to the real estate private equity case study series where we focus on the public REIT valuation of Aimco. Right now we’re building a net asset value (NAV) analysis, and in the last posts we knocked out gross asset value (GAV) and spoke to consolidation. This post will shift to focus on the
Introducing Consolidation Welcome back to the Aimco public REIT valuation series. Here, we’re going to unpack consolidation, which has already reared its head in the figures we pulled for the previous post on GAV. When building public company net asset value (NAV) analyses, it’s important to handle consolidation consistently and back out minority interests as
Public REIT Valuation Part 12: Consolidation and Why it Matters Read More »
Introduction The last blog covered the 1:1 spin-off of AIR from AIV, and the blog before that spoke to creating a dummy NAV build. This blog will attack the first half of the NAV equation – calculating gross asset value. To begin, we’ll model AIV as the pre-spin company. Once we’ve established our pre-spin NAV,
Public REIT Valuation Part 11: Gross Asset Value (GAV) Read More »
This week, Aimco announced a plan to separate into two separate and distinct public companies. This adds a fun layer of real-life complexity to our real estate private equity case study! Here’s the quick take: Apartment Income REIT (“AIR”): Most operating apartment buildings will spin into a new self-managed REIT, valued at ~$10.4B Aimco: The
Public REIT Valuation Part Ten: Aimco News Flash Read More »
Introduction Welcome back to the REPE career development series series focused on building a public valuation model of Aimco. If you’re lost, part one is here. If you want my exact model, scroll down and click the download button; but you’ll need a course membership subscription first. However if you aren’t yet a member, this
Public REIT Valuation Part Nine: Setting Up the NAV Build in Excel Read More »
Introduction Welcome to part eight of our Public REIT valuation series where we build a real estate private equity model covering Aimco. In this post, I am going to publicize my greatest, never-before-revealed trick: global and local checks. Plenty of people build checks inside their models, but I’ve never seen anyone else do it this
Public REIT Valuation Part Eight: Centralize your Checks to Model Faster Read More »
Introduction This is part seven of a series focused on Public REIT valuation. The first six posts were more qualitative in nature, contextualizing the information available in Aimco’s public filings. This seventh post begins a new thread where we focus on building our Excel model. If you’re looking for the best real estate private equity
Public REIT Valuation Part Seven: Net Asset Value Read More »