Portfolio Management Associate – REPE Firm
In this ‘Day in the Life of a Commercial Real Estate Professional’ post, we hear from an Associate working at a Real Estate Private Equity firm in Florida where he has been located for the last 2 years. This professional has been kind enough to share what he does on a daily basis as well as discuss what it takes to land a similar position in CRE.
Day in the Life of an Portfolio Management Associate
Julio Duran
I see the role of Portfolio Management similar to the role of a State Governor. The state has a strategy and challenges at state level (Portfolio level) and the cities within the state have a strategy and challenges at local level (property level). These two levels work together in order to achieve common goals, but at the same time, each property faces different challenges based on different factors such as investment stage, property and market conditions, etc.
As PM, In a typical day we might be reporting to investors, negotiating with a potential partner, analyzing a potential investment or coordinating a major capital expenditure. As we take care of daily obligations we should always be running a hold vs sell analysis to make sure we don’t miss a good exit opportunity. Excel and Argus are two of the most common tools for those analysis.
As part of the Portfolio Management role, you have to focus on the big picture. It does not matter if one of your properties is doing fantastic if you are losing the battle at the portfolio level, you have to focus on the forrest and not only the trees. That does not mean you ignore the issues at the property level, it just means that you have to make sure the asset and property manager are doing a good job.
It has been said that in any transaction you make the profit at the acquisition, wish in many cases is true, but without a good investment management (property management, asset management and portfolio management) during the holding period, that profit can disappear very quickly. Therefore, it is important to establish, implement, and maintain good management practices. The job of a Portfolio Manager is the equivalent of running a marathon while the job of a Transactions team (acquisition/disposition) is like training and running a 5K race, they need different skill sets and strategy to win the race.
About the Professional
Name: Julio Duran
Location: Florida
Years in Real Estate: 10
Years in Current Position: 2
Undergraduate Education: Mechanical and Industrial Engineering , Technological University of Panama
Graduate Education: MPS In Real Estate Finance and Investment, Cornell University
Approx. Annual Income: Prefer not to say
About the Position
Job Title: Associate
Job Type: Portfolio Management,Portfolio Management
Company Name: PGIM Real Estate
Company Type: REPE Firm
Property Type: Retail
Min. Education Recommended: Masters Degree
Min. Education Required: Bachelors Degree
Min. Experience Recommended: 5 – 7
Min. Experience Required: 3 – 5
Advanced Technical Skills Required: MS Excel
Advice for those interested in this position
Having experience in property management, transactions, and asset management really prepare you well to succeed in a role as Portfolio Manager. You have to build a good foundation.
My best advice for anybody starting a career in real estate investment, is to have a solid understanding of real estate excel modeling, and to have a good understanding of real estate concepts and fundamentals.
