Prudential Real Estate Investment Analyst Interview

Date:

What Happens In A Pgim Hirevue Interview

3 Finance Concepts To Know Before a Commercial Real Estate Interview

In a HireVue interview, youll record yourself answering questions.

Those questions might be shown to you as a couple of lines of text or they might be displayed as a pre-recorded video by someone at PGIM asking you that question.

Then, youll get around 30 seconds to prepare your answer and around two minutes to answer.

The number of questions varies, so be ready to answer anything from 2 to 5 questions.

You can answer on your cell phone, laptop, or desktop computer as long as it has a camera.

The Real Estate Private Equity Acquisitions Associate Salary

Compensation structure is generally structured similar to traditional private equity heavily weighted towards bonus, though compensation within real estate private equity tends to be more highly variable than traditional PE.

At the junior level, base and bonus are all cash, while at mid-to-senior levels, compensation typically includes a carried interest component.

A first-year acquisitions Associate with investment banking experience should expect a base salary in the range of $90,000 $120,000 depending on location and firm size, and a year-end bonus that is approximately $100% of base pay, bringing the all-in compensation for most first-year acquisitions Associate will range between $160k $230k.

At many firms, base salary doesnt often increase meaningfully year-to-year, but bonuses can grow from 100% to as much as 200% in a few short years.

As you go further up their real estate private equity hierarchy, compensation grows similar to traditional PE:

At many firms, base salary doesnt often increase meaningfully year-to-year, but bonuses can grow from 100% to as much as 200% in a few short years.

Real Estate Analyst Interview: Questions & Answers

Almost a year back I wrote the post about real estate analyst interview it mostly covered the questions being asked.

Many readers asked to provide the answer, but my job kept me busy and I was not able to write this post earlier. Thanks to Alexander Curry of Tarantino Properties, Inc, who wrote me an email providing in-depth feedback to the questions listed in that post. Because of Alex I decided to write this post.

In this post I’m going to answer the 10 most commonly asked questions in a real estate analyst interview.

If a project has zero NPV and the discount rate is 10% what will be the project IRR?

What is the difference between rental yield and cap rate?

Rental yield is the net amount of money a landlord receives in rent over one year , shown as a percentage of the amount of money invested in the property.

So, Rental Yield = X 100

Note that rental yield is calculated on Net Operating Income without considering interest payment, tax and depreciation.

Cap rate is the ratio between the net operating income produced by a real estate asset and its cost .

So, Cap Rate = Net Operating Income / Value

If you notice, both rental yield and cap rate appears to be same!

Rental yield is used to calculate the yield of an asset whereas the cap rate is used to find the value of an income generating real estate asset.

What are the prevalent area measurement methodologies? Why should you use RICS and not BOMA?

Why should choose one over other?

How do you calculate the cost of equity?

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Round : The Technical Interview

The technical interview is usually with an Associate who has been around for a while. A more junior professional typically conducts this early technical screen because they are the closer to the nuts and bolts of modeling and market analysis than the senior professionals. At this point, you should be prepared to answer technical and industry questions about how to value real estate, the main property types and how they differ from one another, what type of real estate investments you think are in favor, among a number of other potential questions.

Large Real Estate Firms: Blackstone Carlyle Oaktree Etc

Prudential Partners With Girls Who Code

The largest REPE firms think Blackstone, Oaktree, Brookfield and Carlyle have a standardized and predictable path of progression enabling them to hire entire classes at a time. They also have the resources to formally train junior hires.

If your goal is to work in acquisitions at a large name brand REPE firm, then your best bet is to secure a job in investment banking first. Asset management is less competitive and recruiting often happens directly out of undergrad.

  • Acquisitions Recruiting: From investment banks .
  • Asset management Recruiting: Directly out of college for asset management and lending roles.
  • Don’t Miss: Short Term Rental Investment Property

    Executive Interview: David Todd Of Prudential Real Estate Investors

    David Todd | Vice President, US Retail Investments | Prudential Real Estate Investors

    David Todd oversees US retail investments for Prudential Real Estate Investors. Formerly he was with DDR Corp. , and he is an REFM training alum.

    How did you get started in the business?

    Actually, by cold calling. Out of undergrad I worked for a consulting firm, but got the real estate bug working on a small side project. The more I think about it, I probably had the bug a long time ago as my dad is an architecture buff so I spent the better part of my childhood looking at, and discussing, buildings with him. However, this little deal helped me realize the potential financial benefits, so I guess the merger of a hobby and, um, greed? At any rate, I was hooked but didnt have an obvious entry point into the business so would call people I saw in the paper that were working on interesting projects and ask for an informational interview that type of thing. After many many calls and meetings I ended up landing a great development gig with Gary Rappaports shop in DC. Took me over a year.

    What do you love the most about it?

    What projects are you working on right now?

    Whats the most challenging thing about your job?

    What is your dream project to work on? Why?

    Im definitely drawn to larger deals, so Ill go with the purchase and overhaul of a substantial portfolio. The complexity is fascinating.

    Any words of wisdom for young folks looking to get started in the business?

    Prudential Real Estate Analyst Interview Questions

    • – New York City, NY Area
    • – Atlantic City, NJ Area
    • – Port St. Lucie, FL Area
    • – Tampa, FL Area
    • – Salt Lake City, UT Area
    • – Virginia
    • – Rio de Janeiro, Brazil Area
    • – São Paulo
    • – Yung Shue Wan, Hong Kong Area
    • – Kowloon City
    • – Ho Chi Minh, Vietnam Area
    • – Phú Th

    41,332.0Application

    I applied through college or university. The process took 4 weeks. I interviewed at Prudential in Oct 2017

    Interview

    Relaxed and nice interviewers who responded to all emails when approached. 3 interview rounds made it to two of them. Didnt ask any really hard questions either. Interviewers were all nice and took time to answer any questions

    Application

    I applied through college or university. The process took 4 weeks. I interviewed at Prudential in Sep 2017

    Interview

    First round was on campus two 30 minute interviews with mostly behavioral questions and a few technical questions. Second round in Atlanta, was 6 interviews with more technical questions, a few more behavioral, and a lot of discussion more about the analyst program and an opportunity to answer questions you have. Superday is coming up.

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    How To Prepare For The Hirevue Interview

    Once you access HireVues online portal, you will be given a chance to practice with some sample questions. Youll be able to record yourself and watch how you give your responses so that you can look more polished, prepared, and professional once you actually do the real interview.

    To do well for the HireVue Interview, you need to go over some standard questions that are commonly asked in behavioral or fit interviews.

    Heres a list that can help you get you started:

  • Why are you applying for this position?
  • How did you deal with a difficult co-worker in your previous work experiences?
  • How did you handle a drastic change in role to achieve a goal?
  • Why do you think you are the right candidate for this position?
  • What current events are you following at the moment? Why are they interesting?
  • Do you have an expertise or unique experience that can benefit our team?
  • What is the most important leadership experience you have? And why?
  • What efforts do you make to keep abreast of financial markets and business news?
  • Why do you want to work for our company?
  • What relevant skills have you gained from your past work or internship that are easily transferable and directly beneficial to the new role youre applying for?
  • Why are you looking for a new role in our company?
  • What were your top responsibilities at your current/previous position?
  • What are your three main weaknesses?
  • How will you use your background and skills to succeed in this role?
  • How Much Does A Real Estate Investment Analyst At Prudential Make

    How To Become a GREAT Real Estate Analyst [3 Steps]

    The typical Prudential Real Estate Investment Analyst salary is $80,985. Real Estate Investment Analyst salaries at Prudential can range from $75,223 – $86,661. This estimate is based upon 3 Prudential Real Estate Investment Analyst salary report provided by employees or estimated based upon statistical methods. When factoring in bonuses and additional compensation, a Real Estate Investment Analyst at Prudential can expect to make an average total pay of $103,994 . See all Real Estate Investment Analyst salaries to learn how this stacks up in the market.

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    Prudential Real Estate Investment Analyst Interview Questions

    • – New York City, NY Area
    • – Atlantic City, NJ Area
    • – Port St. Lucie, FL Area
    • – Tampa, FL Area
    • – Salt Lake City, UT Area
    • – Virginia
    • – Rio de Janeiro, Brazil Area
    • – São Paulo
    • – Yung Shue Wan, Hong Kong Area
    • – Kowloon City
    • – Ho Chi Minh, Vietnam Area
    • – Phú Th

    71,332.0

    I applied online. The process took 4 weeks. I interviewed at Prudential

    Interview

    The first round was through HireVue and asked behavioral questions and technical questions. The second and final round was interviews was with three people on the team you’ll be working with.

    Interview Questions

    • What are the property asset classes?What do you think is a risk in the commercial real estate industry?What are the three ways to value property?Describe a time where you took a risk?

    Thoughts On Prudential Real Estate Investors

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    PREI is an an insurance co., not a real estate private equity group. Regardless, PREI has a great rep in real estate investing community. You’ll learn plenty of relevant skills working there. Typically, you will be performing the analysis and due diligence for potential investments. Since, they are a large investor, you will analyze large and complex deals, which will set up you up very nicely for a job at any similar real estate investing group. Compensation should be generally the same as most similar entry-level positions – ~60-65K plus bonus.

    • 2

    mr1234:PREI is an an insurance co., not a real estate private equity group. Regardless, PREI has a great rep in real estate investing community. You’ll learn plenty of relevant skills working there. Typically, you will be performing the analysis and due diligence for potential investments. Since, they are a large investor, you will analyze large and complex deals, which will set up you up very nicely for a job at any similar real estate investing group. Compensation should be generally the same as most similar entry-level positions – ~60-65K plus bonus.

    Im in a similar position for an opportunity at Metlife. If the comp is around 60-65k then what is the bonus like? And does the salary have set increases each year like banking? Also would exit ops are out there after a program like this pre-MBA

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    OK, I see. PREI is the principal investing group of Prudential.

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    Associate / Senior Associate

    Day to Day Responsibilities

    At most REPE firms, Associates are the more junior professional, which means they are responsible for the majority of the analytical work.

    Associates spend the majority of their time building real estate financial models and writing investment memos for potential acquisitions.

    Pulling together the necessary data for these deliverables often requires touring the property and its competitive set , digging up market data on REIS and/or RCA , and reviewing documents provided during due diligence.

    The financial model and investment memo are what is presented to investment committees to make the case for an investment. Depending on how the firm is organized, an Associate may also be involved in working with in-house lawyers on purchase and sale agreements , loan documents, and joint venture agreements in most cases, the Vice President on the transaction will lead the legal work.

    Another responsibility that varies with firm organization is time spent on asset management. At some firms, an Associate on the acquisitions team would spend no time on asset management. At other firms, an Associate may spend a considerable amount of time on calls with property managers and tracking monthly financial performance of different investments.

    In short, Associates are the analytical horsepower and can expect to build financial models, write investment memos, collect market data, and manage due diligence.

    Typical Promotion Path

    Prudential Tropical Realty: A Local Leader In Residential

    Investment Banking Analyst (Roles &  Responsibilities)
      https://neighborhoodnewsonline.net/2013/08/prudential-tropical-realty-a-local-leader-in-residential-real-estate/
      Managing Broker Dennis Derbes manages both the New Tampa and Zephyrhills offices of Prudential Tropical Realty. Prudential Tropical Realty is an independently-owned franchise, with 16 offices and nearly 500 agents in four counties , of the nationwide Prudential Real Estate.

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    Interviews At The Prudential Real Estate Affiliates

    I applied through college or university. I interviewed at The Prudential Real Estate Affiliates

    Interview

    Applied on campus and went in for a 30 min in person revenue. There were two interviewers, wanted to go through my resume. No real estate questions asked, but one interviewer seemed very bored.

    Anonymous Interview Candidate in Charlottesville, VA

    Application

    I applied through college or university. The process took 2 weeks. I interviewed at The Prudential Real Estate Affiliates in Sep 2017

    Interview

    I applied through my college career website. I was notified that I had an on grounds interview. It was a very easy process. the interview was with two talkative, nice girls and it lasted about 30 mins. I prepared for technical questions, but to my surprise it was more casual

    Anonymous Interview Candidate in Jacksonville, FL

    Application

    I applied through college or university. The process took 2 weeks. I interviewed at The Prudential Real Estate Affiliates in Oct 2015

    Interview

    Simple 30 minute in person interview. 80% behavioral questions with a technical question peppered in here or there, but they didn’t seem prepared questions. They were more ‘ask as I think of them” type questions. Still, basic knowledge of real estate valuation is recommended.

    Anonymous Employee in Lansing, MI

    Application

    I applied in-person. The process took 1 week. I interviewed at The Prudential Real Estate Affiliates in May 2015

    InterviewInterview Questions

    Anonymous Employee in Roswell, GA

    What Is Real Estate Private Equity

    Real Estate Private Equity or Private Equity Real Estate refers to firms that raise capital to acquire, develop, operate, improve, and sell buildings in order to generate returns for their investors. If youre familiar with traditional private equity, real estate private equity is the same, but with buildings.

    As the private in private equity suggests, these firms raise capital from private investors and deploy that capital to make investments in real estate. There is little standardization to how real estate private equity firms are structured, but they all generally engage in five key activities:

  • Capital raising
  • Managing properties
  • Selling properties
  • Capital is the lifeblood of any investment firm without capital to invest, there is no firm. The capital raised by real estate private equity firms comes from Limited Partners . LPs generally consist of public pension funds, private pension funds, endowments, insurance companies, fund of funds, and high net worth individuals.

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    Accounting And Portfolio Management

    The Accounting and Portfolio Management role in REPE involves supporting the CR/IR, acquisitions, and asset management teams. Portfolio Management is often responsible for guiding the acquisitions team to target properties that fit the fund mandate and ensuring the creation of a diversified portfolio.

    Specific responsibilities include providing fund performance data for investor reporting and requests , reviewing quarterly financial statements and investor reports, fund liquidity management , maintaining fund-level models, overseeing fund administrators, and database management ,

    The day-to-day largely depends on if the firm is fund raising and/or deploying capital. For example, when a firm is fund raising, more time is spent supporting the investor relations team and providing firm performance data to share with potential clients.

    Supporting the acquisitions and asset management team follows a more stable monthly and quarterly cadence. Monthly responsibilities include reviewing property management reports and maintaining a database management system to report asset-level performance to the firm.

    Quarterly responsibilities relate more to financial reporting and investor updates. Generally, firms update their investors quarterly with updated fair market values. The portfolio management team manages the fair market value process.

    Master Real Estate Financial Modeling

    Real Estate Private Equity Investment Strategies

    Commercial Real Estate Interview Questions – How To Ace Interview Day at a CRE Firm

    REPE firms usually specialize to varying degrees around specific characteristics related to their investments:

    In cases where the firms themselves are not organized this way, their specific investment funds usually will be.

    Risk Profile

    Many REPE firms organize themselves according to risk profile as their driving investment strategy. They will carve out a portion of the risk/return spectrum and focus on transactions regardless of property type and geography that fit the specified risk profile and return targets.

    The most high profile types of real estate private equity fund strategies are called Opportunistic or Value-Add, and refer to higher risk/return types of investments than the more conservative Core or Core-Plus strategies. In the image below you can see the return profile targeted across these different strategies.

    This is an effective way for REPE firms to organize themselves because it sets clear expectations for a firms investors and allows the manager to diversify risk across geography and property type.

    When you hear terms like opportunity fund or targeting core investments, they are usually referring to risk profile and return targets.

    Property Type

    REPE firms do not often constrain themselves when it comes to property type. In a scenario where they did, a firm would focus exclusively on one property type, hotels for example, and diversify their investments in other ways within the property type sector.

    Transaction Size

    Geographic Focus

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