Happy Friday!

Took a break to update the salary survey submission form yesterday. Below you’ll see a sample of the data collected last year. We’ll be collecting info all through next week and post results via PropMemo and Real Assetzz the following week.

Jobs report came in hot adding 275,000 jobs in February and with unemployment climbing to 3.9%, PE firms speed in deploying capital has lead to banks favoring them as a capital source over equity issuances, the White House released a proposed plan to increase corporate taxes (along with proposed changes for the super wealthy and middle class), and a study claims AI is more likely to harm the environment than help it because of its high energy use

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Follower Shoutout

Big thank you to everyone helping the newsletter grow. Special shoutout to the Real Estate Private Equity Club at the University of Wisconsin-Madison. Thanks for the support and wish you all best of luck in launching your real estate careers

Capital Markets

Market News

• US Economy Adds 275,000 Jobs, Far Above Economist Predictions

  The jobs report released today revealed 275,000 jobs were added in February, far above the 200,000 predicted by economists. The report also showed the unemployment rate increased to 3.9%, up from 3.7% in January. The report also revised the number of jobs added in January to 229,000, down from the 353,000 initially reported

• Private Equity In Bank Deals

  On Wednesday New York Community Bank announced a $1B+ capital raise from former Treasury Secretary Mnuchin’s Liberty Strategic Capital. The move follows similar PE-backed bank deals from last year, which were favored instead of issuing stock because of their speed and discretion vs. public market offerings that can be very price sensitive and timely

• White House Press Release On Corporate Taxes

  On Thursday the White House issued a press release that largely outlined the President’s proposed plan to raise taxes on corporations. The plan includes raising corporate taxes to 28% from 21% (a reversal from 2017), a crackdown on tax avoidance by company’s who offshore jobs, denying tax breaks for any corporation where an employee is paid over $1M, raising the tax from 1% to 4% on stock buybacks, and eliminating a tax break on corporate jets. The release also outlined other proposed tax changes for the wealthy and for the middle class

• AI Likely To Increase Energy Use

  A report from green groups is casting doubts on whether the increased benefits of AI in tracking environmental changes and energy management outweigh the large increase in energy from the data centers that house them. The groups also believe AI will help drive the spread of misinformation as AI will enable social media accounts to spread misleading statements about climate change rapidly

Salary Survey - 2023 Overview/Lessons

• Data Collection

  First off, massive shoutout to everyone (600+ submissions) who participated last year via the @realassetzz Instagram account and provided their info. This year’s form will hopefully be cleaner and quicker for getting results collected and back out to everyone via a nicely formatted report. Keep in mind all of the data is anonymous, we wont disclose employer info or anyone’s names

  2023 Acquisition Roles By Title (Junior Staff)

  

• Data Quality

  This is probably the hardest part. Through years of experience and knowledge from both friends and recruiters in the industry we have a sense of what is “normal” but obviously rely on everyone’s submissions. We’ll make an effort to scrub data for any outliers and funny people (troll accounts). Keep in mind the survey is only for salaried employees so any brokers out their submitting $0 as a salary with a $1M bonus will be excluded

  2023 Acquisition Roles By Title (Senior Staff)

  

  For 2024 we might exclude “Principal” type roles as those can be highly dependent on actual fund performance or a company owner’s willingness to pay his or her self distributions

• Variability

  Understand that no two companies or employees are the same. In collecting data we’re doing our best to get an understanding of what “market” is but things like company size, performance, actual job duties, and pay structures might shift overall pay. Many employees have shares in their company or equity in deals which can be hard to value (Might not know until you exit a certain asset or sell your shares what that equity is worth). We also standardized some of the options to limit the variance in submissions so if you don’t see your exact option choose that which best describes your role

  2023 Additional Comp Structures

  

• Judgement Free Zone

  Last year there were not any significant variances between genders to report on. In some cases there were far too few women in roles to really be able to make any type of conclusion. What was notable was the US salaries tended to be higher than the handful of international salaries submitted. Note we won’t judge any submissions, the whole point it too help create transparency and point out any trends which might be helpful in making career decisions or when evaluating pay

  2023 Salary Survey - Gender Breakdown by Role

  

  whole lot of dudes in CRE

The 2023 Survey can be found on the Real Assetzz website 

Deals Deals Deals

Sales

• Multifamily: PCCP and Alliance Residential have acquired Prado, a 251-unit multifamily property in San Jose, CA, for $125M. The asset was built by SummerHill Homes in 2021

• Multifamily: ColRich Multifamily acquired Belmar Villas, a 318-unit multifamily community in Denver, CO for $74M from Independence Realty Trust. The asset previously traded in 2017 for $63M

• Office: DML Capital acquired The Offices at Kensington, a 171K sf two-building portfolio outside Houston, TX, from Buchanan Street Partners

• Multifamily: Hudson Grove Property Management acquired Belle Creek Apartments, a 156-unit multifamily community in Denver, CO, from Hamilton Zanze for $33M. The deal was financed with a $19M Fannie Mae loan from PGIM Real Estate

• Medical Office: Montecito Medical has acquired Aurora Health Center, a two-building 93K sf medical facility outside Milwaukee, WI, for $31M. The asset was fully leased to Aurora Health Care Inc. 

• Industrial: Stonelake Capital Partners acquired a 120K sf distribution center in Dallas, TX from Bessemer Trust and Hersch & Co.

• Industrial: A Rialto Capital managed fund sold a 67K sf industrial asset for $13M outside of Baltimore, MD

Debt

• Multifamily: Community Three and Whitaker Investment Corp. secure a $96M construction loan from Kennedy Wilson for a 169-unit, 65-condo multifamily development in Alexandria, VA.

• Multifamily: Helio Group secures a $40M loan from Cathy Bank for its $65M acquisition of a 135-unit multifamily asset in Los Angeles, CA from Greystar

Developments

• Industrial: Creation delivers a three-building, 532K sf industrial center in Fort Worth, TX

• Industrial: Samet Corp., Lee-Moore Capital and a Denver-based family office completed a 340K sf industrial facility fully leased to Fedex outside of Raleigh, NC

• Hospitality: TMC Hospitality opened its fourth Drift Hotel in Nashville, TN. The 87-key hotel was formerly a Stadium Inn

Capital Raising

• PropTech: Prudence, a venture capital firm investing in proptech, announced it has raised $80M for its third fund. The firm invests in Series B, targeting 10-15 companies per fund

• Multifamily: Hines fully subscribes a $77M DST offering which owns EMME, a 199-unit, luxury multifamily asset in Chicago, IL. The asset was acquired for $73M in 2023

Leasing

• Office: Betterment subleases 113K sf from Noom in Brookfield’s 1.6M sf office asset, Five Manhattan West, in New York, NY Battery Park neighborhood

• Office: Sidney Austin, a law firm, signs a 118K sf lease at Granite Properties’ 23Springs, a 626K sf office tower in Dallas, TX

Meme Summary

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