Canyon Capital Advisors
Canyon Capital Advisors Interview Questions & Reviews
Getting an Interview
Financial Analalyst Interview (Neutral Experience; Average Interview)
I applied through a recruiter and the process took 3 weeks - interviewed at Canyon Capital Advisors in April 2012.
Interview Details – Phone interview by two analysts lasted about half an hour, very common behavior questions (tell me about yourself, why real estate, your experienece, why our company, etc). You can sense over the phone that they are very sharp people, I was a little itimidated and pressured.
Also heard the second round interview will consist of a 2-hour Excel modeling session.
Interview Question – Tell me about yourself Answer Question
Asset Management Analyst Interview (Neutral Experience; Difficult Interview)
I applied through a recruiter and the process took a day - interviewed at Canyon Capital Advisors in August 2010.
Interview Details – Recruiter contacted me about a possible opportunity with Canyon Capital. They had 10+ candidates show up for 3 spots and one day of interviews. Start time was 9:00AM and ending at 5:00PM. The first half of the day consisted of an excel modeling exercise (3 hrs) and two interviews with AVP level employees. Then the second half of the day two more interviews with more senior level executives.
- Modeling Question:
Canyon is being presented the opportunity to acquire a 247,000 SF industrial building in LA leased to a single tenant that occupies 85% of the 235,000 SF rentable space. Rents are projected to be $0.75 NNN per sf per month in the first year of investment. The tenant signed a 20Yr lease 3 years ago and is paying $0.60 per sf per month. Lease payments are held constant for the first five years of the lease then increase to market rate then increase at 3% per annum. No CAPEX required.
Canyon will acquire the property at an 8% cap rate to today's in place NOI. Canyon will also pay a 2% broker fee and $250K in closing cost. Holding the property for 5 years and sell at the end of the 5th year at a 9% cap rate on forward year NOI. Assume Canyon must pay 3% closing costs on the sale.
Leveraging for 70% of the total transaction costs at a 7% fixed interest rate over 30 years.
1) Create a sources and uses for the transaction? View Answer
- Calculate the following: Net Sale Proceeds at year 5, leveraged IRR, IRR, average debt service coverage ratio over the 5 year holding period.
Create a two variable table showing the different transaction IRRs if the project is acquired and sold at various cap rates... View Answer