For my STEP Signature Project, I interned at a real estate private equity firm that is located right outside of Washington D.C. Real estate private equity refers to the use of funds from private investors such as endowment funds, insurance companies, and high net-worth individuals to invest in real estate assets or companies. The firm I interned at, FCP, allowed me to rotate through all of their business functions to get a well-rounded understanding of what it takes to invest in real estate.
Prior to my internship, I had a base level understanding of real estate private equity by doing research online and taking real estate courses in the business school. I wanted to do this internship because it is one of few rotational internships in the real estate private equity sector. My goal was to use this internship to gain more clarity into what function of real estate I would like to work in post-graduation. After my internship was over, I realized how much I like interacting with others and traveling outside the office. My guy was telling me I wanted to stick with a development or transaction related role, and that gut feeling still stands.
By rotating through various business line for 7 weeks, I was able to identify what I liked and did not like by typing up a reflection on each team after I completed the week with them. By week 7, I came to the conclusion that I would like to potentially work globally and real estate development would be the best long-term career path for me due to the variety of knowledge and duties I would use. I also knew development was the path for me due to my passion for economic development. I have always wanted to combine soft and hard skills in my work to be able to make an impact.
Spending a week with the development team at FCP gave me the clarification that I needed to conclude that real estate development is the right path for me. I was able to participate in a simulation of the process required to be able to develop a property from start to finish. I also had some hands-on projects that would leave a positive impact on the community once the property in question was finished.
I completed several site tours during the duration of my internship. One of these tours included a site tour of a 20+ story apartment building. That was one of the most exciting activities I completed during my internship. I also toured a multifamily property that had designated affordable units. Affordable housing is something that I am very passionate about so I was excited to see this property in person. My last property tour was an office building located in the heart of D.C that was for sale. This building had many well known companies as tenants such as Ford Motor Company. I had never toured an office property before, so I enjoyed learning the key differences that are important when selling or purchasing this property type.
For my capstone project, I chose a difficult concept to present to the investment committee: GP Interest Transaction Opportunities for LIHTC Properties. This is a complex deal structure where an investor can essentially buy interest into individual assets, portfolios, or operating platforms. I spent each Friday of my internship working on this capstone project.
In order to do research for my capstone, I worked closely with the Vice President of Impact Investments at FCP. She had years of expertise and was able to help me understand this topic and formulate my powerpoint in a way that would best explain the value proposition to the investment committee. I enjoyed working on this capstone. I am glad this topic was presented to me because it is something most interns would not be exposed to. There are seasoned professionals in the real estate industry who are not familiar with GP interest transactions so I am very grateful to have had this exposure so early in my career.
This internship was key in helping me to conclude where I want to start my career in commercial real estate. The rotational aspect of the internship allowed me to complete projects with different teams and shadow the analysts of these teams to see if I could see myself in that role in the future. I was able to sit in very important calls and had access to private information that I found very intriguing and informational. Now, I am confident in my career trajectory and look forward to using the skills I gained over the summer in my first job after college.