Deconstruct - Episodes Tagged with “Commercial Real Estate”

BGO's Chief Economist on The Fed's Next Move

The Real Deal — Mon, 24 Jun 2024 05:00:00 -0400

Don't expect interest rates to drop back to zero. But your floating-rate loan may be a bit less painful by year's end. The Real Deal's Deconstruct chatted with BGO's Chief Economist Ryan Severino about when rate cuts will come, the data that shows a cooling economy and what risks the Federal Reserve runs if it cuts too little, too late.

Opportunity, Opportunity, Opportunity: Goldman Sachs' Alternative Capital Lead on Real Estate Lending

The Real Deal — Mon, 03 Jun 2024 05:00:00 -0400

Last month, Goldman Sachs announced it closed a new real estate credit fund, capable of handing out more than $7 billion. And with regional banks and other financial institutions reeling back their exposure to commercial real estate, Goldman Sachs sees this as the perfect time to get in on the action. Deconstruct chatted with Goldman Sachs' co-head of alternative capital formation, Jeff Fine, what asset classes it's excited about and the opportunity for private credit in real estate.

Dealing with Syndications 101 with LP Adviser Aleksey Chernobelskiy

The Real Deal — Tue, 28 May 2024 05:00:00 -0400

Aleksey Chernobelskiy has many pieces of advice for retail investors writing checks for syndicated real estate deals. But, one of the most important: you could lose it all. As many syndicators — firms that pool equity to buy property — grapple with distress, thanks to rising interes rates, investors have been stuck in the crosshairs trying to determine whether to pump more money into a struggling deal, or walk away.

Deconstruct chatted with Chernobelskiy about syndicator best practices, what retail investors should know about real estate investing, feeder funds tapping wealth for these deals and what LPs can do if everything goes wrong.

Looking at the Legislation Critical to Making Office-to-Residential Conversions Work

The Real Deal — Mon, 29 Apr 2024 05:00:00 -0400

It's not just tax credits. It's not just zoning by right. To make office-to-residential conversion projects work, developers need all of the above, says Bobby Fijan of Philadelphia-based Form Developers. TRD's Deconstruct chatted with Fijan about some of the legislation, policies, subsidies and programs across the country that have helped push these conversions forward.

The Closing With CBRE's LA Head Lew Horne

The Real Deal — Mon, 15 Apr 2024 05:00:00 -0400

Lew Horne thought he was going to run a pet store business. Then, he thought he’d sell computerized systems to wholesale grocers. Neither panned out. Instead, Horne runs CBRE’s operations across Los Angeles, Orange County and the Inland Empire, leading advisory services, property and project management and capital markets teams.

And in L.A., developers, brokers and brokerage heads have no shortage of hurdles — a stagnant office market, new transfer taxes on sales over $5 million, homelessness and bureaucratic permitting processes. Horne chatted about it all.

“Let’s get some of these barriers out of the way,” Horne said. “Let’s start taking a look at what we need to do to regain the trust of the development community. Let’s not restrict them on what to build.”

The Real Deal sat down with Horne for The Closing, The Real Deal's signature monthly magazine interview series. Deconstruct is airing an extended version of this interview. To read it, head to TheRealDeal.com.

Gil Dezer on Luxury Development, Financing and the South Florida Boom (Plus His Love For Cars)

The Real Deal — Mon, 04 Mar 2024 05:00:00 -0500

Gil Dezer knows how to build branded condos. From the Porsche Design Tower to the Armani Residences in South Florida, Dezer is now focused on building the Bentley Residences. Despite growing up in New York City, Dezer is now Miami through and through and remains bullish about the city and South Florida in general — and believes people will keep shelling out big bucks to live there.

Deconstruct chatted with Dezer about pre-sales at the Bentley Residences, how he's thinking about a construction loan and why he still thinks he has the best land in the country. (Plus, some of the cars he's recently added to his collection).

The Real Guy Behind StripMallGuy

The Real Deal — Mon, 26 Feb 2024 05:00:00 -0500

If you're on RETwit (now Real Estate X), you've probably read Don Tepman's posts. You just didn't know it. Tepman, who heads University Avenue Partners, is StripMallGuy, the once anonymous X account that amassed over 200k followers since 2021. Tepman, now unmasked, sits down with Deconstruct to talk why he went public and of course, what's next for strip malls.

The Short-Seller And The REIT: Inside Arbor Realty Trust's CLOs

The Real Deal — Mon, 19 Feb 2024 05:00:00 -0500

For the last six months, Arbor Realty Trust has been the target of a prominent short seller, Viceroy Research, which claims that a huge chunk of its collateralized loan obligation, or CLO, portfolio is in trouble. Arbor, though it denies the short seller's numbers, said it is experiencing challenges and delinquencies are set to rise. And the company is not afraid to go after non-performing borrowers.

Deconstruct sat down with Gabriel Bernarde, one of the individuals behind Viceroy, to chat about the reports, and then dug into Arbor's fourth-quarter earnings.

Unpacking The CRE CLO

The Real Deal — Mon, 12 Feb 2024 05:00:00 -0500

After the 2008 financial crisis, investment managers came up with a new securitized product: the collateralized loan obligation, or CLO, for commercial real estate. It was designed to correct some of the risks that came with its predecessor, the collateralized debt obligation.

But what exactly is the CRE CLO and how does it work? Deconstruct enlisted attorney and CLO expert Stewart McQueen at Dechert to break down the product.

Brokerage Head Kyle Matthews On What's Next For Commercial Real Estate Across The Sun Belt

The Real Deal — Mon, 29 Jan 2024 05:00:00 -0500

Not many commercial brokers branch out to start their own brokerages. But in 2015, Kyle Matthews did. Today, his Nashville-based firm Matthews Real Estate has done more than $50 billion in deals and about 650 agents. Most of what Matthews is focused on is advising clients — helping buyers and sellers sort out investments and identify pockets of opportunity. At a time when some asset classes (hint: multifamily and office) are struggling across the Sun Belt, Matthews thinks there's never been a better time for brokers to take on this role.

The Real Deal's Deconstruct chatted with Matthews about how values dropping presents an opportunity for buyers and what he's predicting across the Sun Belt in 2024.

A Private Equity Head on Investment Opportunity in "Transitional" 2024

The Real Deal — Mon, 22 Jan 2024 05:00:00 -0500

Heading into 2024, rate cuts are the silver lining on everyone’s mind. Still, Ron Dickerman, founder and president of private equity firm Madison International Realty, sees 2024 as a “transitional year.” As capital cautiously comes off the sidelines, Dickerman talks opportunity in the wall of maturities and which asset classes he’s eyeing. Hint: Cold storage is on the come-up

Deconstruct Live at TRD's Miami Forum: Using AI to Hack Zoning

The Real Deal — Mon, 08 Jan 2024 05:00:00 -0500

Imagine a scenario where you, a developer, could pick a site on a map and discover exactly what you could build there. No more hiring experts, contacting the city, finding ways to match zoning requirements. Deepblocks, run by Olivia Ramos, is trying to do exactly that and more, using artificial intelligence. Deconstruct sat down with Ramos at The Real Deal's annual Miami Forum last November to chat about the firm, concerns around AI and how its applications are spreading across the real estate industry.

Deconstruct Live at The Real Deal's Miami Forum: Meet Kaizen AI

The Real Deal — Mon, 18 Dec 2023 05:00:00 -0500

In early November, the Deconstruct team flew to Miami for The Real Deal's annual showcase and forum. We're bringing you an interview we did live with the founders of Kaizen AI, Jay Shah and Anuj Shah. Kaizen uses artificial intelligence to analyze building designs, then retrofits them to be the most profitable project for any given space, taking developer wants into account.

Ivanhoé Cambridge on Separating Good Office From Bad, Opportunistic Investing and Deploying Cash

The Real Deal — Mon, 04 Dec 2023 05:00:00 -0500

"It's the case of the haves and the have nots."

Real estate investment firm Ivanhoé Cambridge is facing the same issues as every other investment firm: how do you correctly manage an office portfolio right now? For the firm's head of office and life sciences investments, Jonathan Pearce, it's all about separating assets into buckets: the good ones worth throwing new cash on, and the ones underperforming. Deconstruct chatted with Pearce about how he’s thinking about investing in office right now, opportunities for preferred and mezzanine financing and how it helps to have the support of a hundred-billion-dollar-plus parent company.

The Syndicator's Dilemma: A Multifamily Boom Goes Bust

The Real Deal — Mon, 30 Oct 2023 05:00:00 -0400

Two years back, when money was still cheap, a new crop of investors was getting in on the red-hot multifamily market. Syndicators — investors who pool money to buy properties — turned to floating-rate debt to quickly close on deals when demand was at its peak. After a year and a half of rate hikes, many of those fledgling investors are now grappling with distress. Nuvo Capital Partners' Brian Underdahl discusses the catalysts behind that boom and how his firm is working with borrowers to save troubled deals.

The Distress Roiling the CMBS Markets

The Real Deal — Mon, 23 Oct 2023 05:00:00 -0400

"A slow-moving train wreck." That's what Daniel McNamara, the founder of Polpo Capital, calls the upcoming wall of maturities — the massive amount of commercial mortgage-backed securities coming due in the next year or two. Many, especially those who used floating-rate debt are facing a triple threat: the triple whammy of higher interest rates, lower valuations and more conservative lending. All of that is making it difficult for commercial landlords to refinance and leaving CMBS investors at risk.

The Father of CMBS Talks Origin Stories, Great Recession and Today's Distress

The Real Deal — Mon, 16 Oct 2023 05:00:00 -0400

In the early '90s, Ethan Penner pioneered the commercial mortgage-backed security. Thirty years later, the father of CMBS breaks down the investment product's origin story, the writing on the wall before the Great Recession and the CRE downturn of today.

Filling the Gap: The Private Players Turning to Real Estate

The Real Deal — Mon, 02 Oct 2023 05:00:00 -0400

As the market for traditional lending, through regional banks or commercial mortgage-backed securities, has dried up, more private credit lenders and financiers have hopped into the real estate space. And Arkhouse, a private equity firm focused on deals to privatize public real estate investment trusts, sees opportunity in that.

The Real Deal's Deconstruct chats with Arkhouse managing partners Gavriel Kahane and Jon Blackwell about why they think the public markets undervalue real estate and why this boom in private credit is good for their business.

Why Related Companies Is Still Building Office

The Real Deal — Mon, 18 Sep 2023 05:00:00 -0400

Related Companies is building offices in Chicago, Austin and West Palm Beach. That's right — offices. At a time when so many firms are pausing office development, citing a lack of tenant demand and the shift towards remote work, Related is plowing ahead with developments. The Real Deal's Deconstruct chatted with Related's head of office development, Philippe Visser, about why the firm is still building new office stock, despite market headwinds.

CrowdStreet, Nightingale and a Crowdfunding Disaster

The Real Deal — Mon, 11 Sep 2023 05:00:00 -0400

In June, a group of investors who invested in a Nightingale Properties-sponsored deal on crowdfunding platform CrowdStreet found out their money was missing. The Real Deal's podcast Deconstruct looks at what happened, the risks with crowdfunding and FundRebel, a new platform that is trying to differentiate itself.

Guests:
Ian Ippolito, founder of Private Investor Club and the Real Estate Crowdfunding Review
Mark Drachman, FundRebel CEO

Credits:
CrowdStreet, WFAA

Inside Larry Silverstein's New Lease on Life

The Real Deal — Tue, 05 Sep 2023 05:00:00 -0400

At 92 years old, Larry Silverstein is shaking things up. The founder of Silverstein Properties is spearheading a mammoth office-to-residential conversion. He's thrown his hat in the ring for the city casino bid. And he's in with a new crowd: the young folks of Lower Manhattan.

RXR Realty CEO Scott Rechler Talks Distress, Slowdowns and Opportunity

The Real Deal — Mon, 26 Jun 2023 05:00:00 -0400

RXR Realty CEO Scott Rechler's year has centered on "Project Kodak" — a strategy of separating older, obsolete office buildings from a younger product that can still pull the tenants and rents to thrive. TRD's Deconstruct sat down with Rechler to unpack how that strategy has evolved, why he's pegged multifamily as the next shoe to drop and whether the Fed's recent rate pause will lift the gates on investment sales.

Credits: CBS New York

Is Texas Immune From Distress?

The Real Deal — Mon, 29 May 2023 05:00:00 -0400

In the pandemic, a wave of new residents flooded into Texas. No income tax, cheaper homes and plenty of good barbecue joints. Six of the 15 fastest growing cities in the country from July 2021 through July 2022 were in Texas, the only state with more than three on the list. That presented a massive opportunity for developers, with homebuilders such as Lennar developing entirely new cities on the outskirts of Austin, Houston and Dallas. But will a bust come after the boom? Deconstruct chats with The Real Deal reporter Joe Lovinger about where investors are starting to see signs of distress in Texas and how commercial and residential real estate players are grappling with a new interest rate reality.

Who Flakes On The Flatiron Building?

The Real Deal — Mon, 17 Apr 2023 05:00:00 -0400

When Jacob Garlick, a relative unknown in the small world of New York real estate, secured the winning bid on the Flatiron building, he told NY1 the moment had been a “lifelong dream since he was 14 years old.” Two days later he flaked on the down payment. The Real Deal's Deconstruct chats with senior reporter Keith Larsen on the man behind the botched buy and why Garlick is still gunning for the building.

Credits: NY1

From The '90s to Now: Making Sense of CRE's Downturn

The Real Deal — Mon, 27 Mar 2023 06:00:00 -0400

As distress descends on commercial real estate, Deconstruct analyzes how past financial crises can inform how borrowers, banks and policy makers handle this down cycle. Guests include: Bob Knakal, JLL Senior Managing Director, Head of New York Private Capital Group; and Sam Chandan, Professor of Finance and Director of the Chao-Hon Chen Institute for Global Real Estate Finance at the New York University Stern School of Business.

An ‘Existential Weekend’: How Two Bank Collapses Roiled Real Estate

The Real Deal — Mon, 20 Mar 2023 05:00:00 -0400

Let's talk about last week. The Real Deal’s Deconstruct explains the catalysts behind the collapse of Silicon Valley Bank and Signature Bank last week and the lasting impact on regional banks, real estate lending and the Fed’s next steps.

Credits: CNBC, ABC News, NBC News, CBS, CNN, Forbes

Inside Downtown LA’s Pain Points

The Real Deal — Mon, 13 Mar 2023 05:00:00 -0400

Brookfield has defaulted on $784 million worth of loans connected to office towers in Los Angeles. Starwood foreclosed on the completely vacant Broadway Trade Center. A deal to sell a 40-story tower has been delayed for the 10th time. So what is going on with Downtown L.A.‘s office market? Deconstruct chats with Michael Soto, a research director at Savills, about the pain we’re seeing across the city’s center and how we ended up here.

Credits: CNBC

As Equity REITs Flounder, Fundrise CEO is Bullish on Credit

The Real Deal — Mon, 06 Mar 2023 06:00:00 -0500

For the past year, public real estate investment trusts that own or manage office buildings, hotels and multifamily have traded at steep discounts as investors feared rising rates would take a whack to profits and property values. Amid that downturn, Ben Miller, CEO of investment platform Fundrise, has set his sights to credit. Tune in for the lowdown on why Miller sees opportunity in debt and which asset classes he’s eyeing once equities markets recover.

'Shvo-ing' It Up: Why Michael Shvo Is Bullish on Office

The Real Deal — Mon, 20 Feb 2023 05:00:00 -0500

Michael Shvo doesn't care about how other people's office buildings are doing, just his own. He also thinks it's time for some of New York's office buildings to be demolished and rebuilt. TRD's Deconstruct sat down with the luxury developer to discuss the capital he deployed during the pandemic, why he's bullish on the office market in New York and San Francisco, and how he's taking advantage of a lack of office space in Miami Beach.

Twitter’s Debacles Aren't Helping San Francisco's Office Market

The Real Deal — Mon, 30 Jan 2023 05:00:00 -0500

Twitter has stopped paying its rent, auctioned off furniture and let go half of its employees. None of that is helping Shorenstein and JPMorgan refinance a $400 million loan on the company’s San Francisco headquarters. Deconstruct chats with TRD reporter Emily Landes about Twitter's fights at the building and how it's emblematic of the larger impact of tech's shakeup on the San Francisco Office Market.

The Hotel Market's Uphill Battle

The Real Deal — Mon, 23 Jan 2023 05:00:00 -0500

Times Square hotels are headed to bankruptcy. Investors are clawing at distressed properties in Chicago. High interest rates are making it harder for investors to transact. And in California, more supply is coming offline, as developers look to hotels for adaptive reuse projects. Deconstruct chats with Atlas Hospitality Group president Alan Reay about the looming distress across the hotel industry, but where investors are finding pockets of hope.

A Peek at CRE in 2023

The Real Deal — Mon, 19 Dec 2022 06:00:00 -0500

It's the end of the year as we know it, and investors feel — uncertain. Rate hikes have slowed deals in the second half of 2022 and Fed Chair Jay Powell said there's more pain to come. But how long will all the available dry powder stagnate on the sidelines? Deconstruct breaks down 2023 forecasts for multifamily, retail, industrial and office and chats with Moody's Senior Economist Thomas LaSalvia about when the deal dam might break.

Commercial Brokerages Feel The Pain

The Real Deal — Mon, 05 Dec 2022 05:00:00 -0500

After low interest rates propelled investment sales to a record-breaking year in 2021, commercial brokerages including CBRE, Newmark and JLL, are now feeling the brunt of the impact. They're pushing to cut costs, some have laid off employees, but all agree the macroeconomic environment has made it hard to do business. Deconstruct chats with TRD reporter Patrick Ralph about the reasons behind the brokerages’ pain and whether the firms will see relief in the future.

To Lend or Not To Lend?

The Real Deal — Mon, 21 Nov 2022 05:00:00 -0500

With rising interest rates, major institutions have cut back on lending. Issuances of commercial mortgage-backed securities dropped 35 percent in the third quarter, compared to the second. Deconstruct chats with Madison Realty Capital's Josh Zegen about what opportunities are still out there — coming from distress, loans on loans and creative refinancings.

Credit: NBCLA

In Powell v. Inflation, the Housing Market is a Casualty

The Real Deal — Mon, 10 Oct 2022 07:00:00 -0400

We all know how mortgage rates have shot up over the last few months, as the Fed has hiked up rates to fight inflation. But, home prices remain stubbornly high across the country. So, what's the deal? Deconstruct chats with Redfin's chief economist Daryl Fairweather about discussed the impact of the rate shifts on first-time homebuyers and why a slowdown in sales activity has not coincided with a decline in prices.

Real Estate Navigates Legalized Cannabis

The Real Deal — Mon, 19 Sep 2022 07:00:00 -0400

Cannabis might be legal in New York, but no legal dispensaries are out there yet. State lawmakers have budgeted $200 million to build out 150 dispensaries by 2024, but the first licenses are yet to be given out. So how are landlords navigating all of this to bring in dispensaries as tenants? Deconstruct chats with TRD's Cailley LaPara about the issues both landlords and tenants are facing as the state looks to open its first cannabis stores.

The New Asset Class of Soundstages

The Real Deal — Mon, 12 Sep 2022 07:00:00 -0400

Earlier this year, New York City's Department of Buildings approved Wildflower Studios: a $600 million, vertical soundstage project in Queens. Wildflower Ltd, run by Adam Gordon, is behind the project, with the help of Robert de Niro. TRD's Deconstruct chats with Gordon about his first foray into studio real estate, which has become a popular asset class among investors.

Real Estate's Top Earners

The Real Deal — Mon, 05 Sep 2022 07:00:00 -0400

Ever wondered how much the top CEOs of real estate firms make? For The Real Deal's August cover story, reporter Joseph Lovinger sifted through records to find out just how much CEOs of public REITs and brokerages made last year. Deconstruct chats with Joseph about how he got the story and what sort of perks these top earners get.

Is Multifamily Set to Cool Down?

The Real Deal — Mon, 27 Jun 2022 07:00:00 -0400

Multifamily was the most popular asset class for commercial real estate investors in the first quarter. This popularity was fueled by extraordinary rent growth and historically low interest rates. Investors could get relatively cheap capital to buy up apartment complexes with steady cash flow. But interest rates are no longer historically low. So will the market start to cool?

You'll hear from Matt Fotis, a senior managing director at Marcus & Millichap in New York City.

Will the Industrial Market Ever Slow Down?

The Real Deal — Mon, 13 Jun 2022 07:00:00 -0400

The industrial market is hot. If you’re in commercial real estate, you’ve heard this a million times. But, as we approach mid-2022, interest rates are up, meaning acquisitions and development are both more expensive. And Amazon, obviously the largest e-commerce company, has told the world it has too much warehouse space. So what does this all mean for the industrial market?

You'll hear from Barbara Perrier, an industrial broker at CBRE, and Jordan Kovalsky, who oversees acquisitions and asset management for Faropoint across the Midwest.

Credits: Reuters

The Have and Have-Nots of Chicago's Office Market

The Real Deal — Mon, 02 May 2022 07:00:00 -0400

Over two years into the pandemic, office towers across the U.S. are still struggling with high vacancy rates. Among the nation’s largest metros, one central business district has emerged as a venerable ghost town — downtown Chicago. Deconstruct chats with TRD reporter Sam Lounsberry about how the Chicago office market has fared.

CREDIT: ABC7, WGN News, CBS Chicago

The Texas Draw

The Real Deal — Mon, 10 Jan 2022 07:00:00 -0500

Texas, the second largest state by population in the U.S., has seen unprecedented growth over the last year. Tech firms have flocked to Austin. Homebuyers are swarming to major metros. On the heels of launching our coverage of Texas, The Real Deal looks at what's driving growth in Texas and how developers are cashing in on the action.

You'll hear from Jacob Sudhoff, the CEO of Douglas Elliman Texas, and Dr. Luis Torres, a research economist at the Texas Real Estate Research Center at Texas A&M University.

Credits: Democracy Out There by Lobo Loco; KVUE segments

Trend Watch: 2022

The Real Deal — Mon, 27 Dec 2021 07:00:00 -0500

For our last episode of the year, The Real Deal's Suzannah Cavanaugh and Isabella Farr discuss whether the rebound of retail, industrial and commercial real estate will continue into 2022 with JPMorgan Chase's Kurt Stuart and excerpts from CBRE's 2022 Outlook Briefing. You'll also hear from Rhino CEO Paraag Sarva discuss how consumer-friendly tech is here to stay.

Credits: CBRE's 2022 Outlook Briefing, including excerpts from CBRE's global chief economist, Richard Barkham, global head of industrial and logistics research, James Breeze, and its global head of occupier thought leadership, Julie Whelan.

Redeveloping Miami Beach's Hottest Strip

The Real Deal — Mon, 15 Nov 2021 09:00:00 -0500

Miami Beach's hottest clubs. Palm trees. Art deco buildings.

TRD reporter Francisco Alvarado discusses Miami Beach's famous Ocean Drive and how the mayor and city officials are pushing for redevelopment along the strip. Mayor Dan Gelber says redevelopment and a new 2 a.m. last call for alcohol will curb partying, crime and illegal activity. Others, like Mangoes owner David Wallack, say it'll just hurt existing businesses.