Leveraged Breakdowns

Real Estate Private Equity Interview Process

Sector Series: Self Storage

Executive Summary / “TLDR” The U.S. self storage industry got started in the 1960s in the state of Texas, where most homes lack basements (and thus extra storage space). Self storage units back then were simple boxes with garage-like doors that locked. The industry has evolved somewhat since then, with large, multilevel structures housing indoor …

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Sector Series: Multifamily (Part 2)

Note: If you have not already read Part 1 of the Multifamily Sector Series, you may want to start there. Part 1 provides a basic overview of multifamily real estate, including categories of multifamily, market characteristics, and historical performance. We cover the basics for those new to real estate private equity, but also dig into …

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Sector Series: Net Lease

Executive Summary / “TLDR” The net lease sector is defined by its lease structure as opposed to its property type, like most other sectors. The net lease sector encompasses a mix of property types, including office, industrial, and retail properties. The common feature among all of these properties is that the tenant is subject to …

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Sector Series: Retail

Executive Summary / “TLDR” Retail is a fairly diverse sector, encompassing everything from small neighborhood shopping centers to large super-regional malls. This report applies to all types of retail, but is geared toward shopping centers, which make up around 80% of all retail space in the U.S. In the last several years, online shopping, or …

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Sector Series: Hotels (Part 2)

Note: If you have not already read Part 1 of the Hotel Sector Series, you may want to start there. Part 1 provides a basic overview of hotel real estate, including categories of hotels, important industry terms, and a discussion of hotel seasonality, EBITDA margins, and capex. We cover the basics for those new to …

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Sector Series: Hotels (Part 1)

Executive Summary / “TLDR” Hotels are a unique real estate type because of their “nightly leases”, which is different from all other sectors with longer leases. Because they have nightly leases, hotels react much more quickly to changes in the broader economy than types of real estate. Hotels are also more operationally intensive than other …

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Sector Series: Office (Part 2)

Note: If you have not already read Part 1 of Office Sector Series, you may want to start there. Part 1 provides a basic overview of office real estate, including types of office buildings, factors that determine asset quality, and a discussion of office leasing and office capex. We cover the basics for those new …

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Sector Series: Office (Part 1)

Executive Summary / “TLDR” Office is a core sector within commercial real estate and historically has been a popular area for real estate private equity firms to allocate time and capital. The iconic nature of certain office buildings has made office deals especially appealing to many high-profile investors over the years. The performance of office …

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Sector Series: Industrial

Executive Summary / “TLDR” Industrial is a core sector within commercial real estate and is a popular sector for real estate private equity firms to invest in. Industrial’s main purpose is to store goods and facilitate the distribution of goods from manufacturers to retailers and direct to consumers. The industrial sector was favorably impacted by …

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Sector Series: Data Centers

Executive Summary / “TLDR” Data centers, or large buildings that house racks of servers to store data, serve an important role in the increasingly digital world. While the data center sector is not dominated by traditional real estate private equity firms, it is worthwhile to have a baseline knowledge of the sector. This overview reviews …

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