24 questions reported in Starwood interviews, organised by the group that asks them. Every question carries a model answer and graded feedback on your own attempt.
Questions
Easy · Medium
Hard
Model builds
Built in the spreadsheet grid
Cap rates, NOI, going-in versus exit yield and levered returns. 9 questions
The first technical in any real estate interview.
Define a cap rate. A building generates $8m of NOI and trades at a 5.0% cap rate. What is it worth? What makes cap rates move, and why is a lower cap rate not automatically better?
The first framing question in any real estate interview.
Explain the four real estate investment strategies. What returns does each target and where does the return come from?
A first-round real estate acquisitions question testing whether a candidate can organise an investment case.
You have ten minutes to recommend whether your firm should keep pursuing an apartment acquisition. What are the first things you would put in the investment summary?
The underwriting exercise behind every value-add acquisition.
You're buying an office building at $8m in-place NOI and underwriting $11m stabilised. Build the bridge and tell me which components you trust.
A standard investment committee follow-up after an analyst presents a base-case return.
Your model shows a 16% levered IRR on a value-add deal. Which sensitivities would you show investment committee, and how would you distinguish a real downside case from arbitrary spreadsheet toggles?
Sector selection matters more than asset selection in real estate, interviewers probe the reasoning.
Compare multifamily, industrial, office and retail as investments. Why do their cap rates differ, and what drives each?
The economics of every real estate deal and every sponsor's compensation.
Explain how leverage drives real estate returns, and walk me through a typical promote waterfall between a sponsor and its limited partner.
A final-round acquisitions exercise tests whether a candidate can protect value when a supposedly clean closing has unsettled operating items.
You have agreed to acquire a $85m retail centre. Three days before closing, the seller reports $1.2m of unpaid tenant receivables, $900,000 of prepaid annual property taxes, and a signed tenant…
An offer-ready investment committee case requiring a candidate to defend price discipline in a competitive process.
A seller wants $100m for a property. Your base case produces a 14% IRR at $94m, while $100m produces 11%. Your fund's minimum is 13%, but you believe another buyer may pay $100m. How would you…
LTV, DSCR, debt yield and structuring against a property's cash flow. 9 questions
A first-round question on real estate loan structure and sponsor alignment.
What is the difference between recourse and non-recourse real estate debt?
A basic real estate credit metric that lenders use alongside LTV.
Define debt yield. A property has $8m of NOI and a $100m loan. What is debt yield and why do lenders care?
A common loan-documentation question for transitional real estate lenders.
Why might a lender require a floating-rate borrower to buy an interest-rate cap?
A maturity-risk case central to bridge and transitional lending.
A bridge loan matures in two years. How do you assess whether it can be refinanced?
Tests whether candidates know how lenders protect a loan after closing.
What covenants would you include in a transitional real estate loan, and why?
A practical asset-management question for construction and development lenders.
How does a construction lender protect itself after closing?
Tests property-type judgement because hotel cash flow differs sharply from leased real estate.
What changes when you underwrite a hotel loan rather than a loan on a leased office building?
A senior real estate credit case on exercising lender remedies.
A borrower cannot refinance at maturity. How would you decide whether to modify the loan, extend it or enforce?
The gap-funding layer that appears in most levered real estate deals.
A sponsor needs 75% total leverage but the senior lender will only go to 60%. How do you fill the gap, and how is your position secured?
Leasing spreads, capex programmes, refinancing and hold-sell analysis. 6 questions
Refinancing can improve returns or create risk. This tests understanding of real estate finance.
A property has 5 years remaining on a 10-year loan at 5.5% interest. Current market rates are 4.5%. Should you refinance, and what factors do you consider?
The recurring decision an asset management team brings to investment committee.
An asset has hit its business plan two years early and could be sold today at a 20% IRR. The fund has three years left. Do you sell?
Exit timing is critical to achieving target returns. This tests market timing and portfolio management.
You've owned a value-add office property for 3 years and achieved your business plan. How do you determine whether to sell now or hold longer?
Portfolio management requires thinking beyond individual assets. This tests strategic portfolio construction.
You manage a portfolio of 10 office buildings across different markets. How do you optimise capital allocation across the portfolio to maximise overall returns?
Distressed turnaround is a specialized skill. This tests crisis management and value creation.
You acquire a distressed office property at 60% of replacement cost with 40% vacancy and significant deferred maintenance. What is your turnaround strategy?
The tool that turns a good real estate deal into an excellent one.
You bought a property for $100m with $60m of debt and $40m of equity. NOI has grown from $6m to $8.4m. Cap rates are unchanged at 6%. Can you refinance, and what does it do to returns?
Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.
Company tags reflect where a question type is commonly reported in interviews. They are not sourced from, endorsed by, or affiliated with Starwood.