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In Deconstruct, The Real Deal breaks down the most important ideas in real estate. We follow the money from Los Angeles to New York City to explain what investors, brokers and developers are focused on right now. This is essential listening for understanding the great, big world of real estate.
116 Episodes
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Note: This episode was recorded before the state finalized a housing deal. For a detailed break down of what passed check out Senior Reporter Kathryn Brenzel's story here (https://therealdeal.com/new-york/2024/04/20/housing-deal-finally-passes-here-are-the-key-details/):
After years of negotiations, Albany has finally fleshed out the framework for a housing deal. Tenants call it a give away to developers. Landlords have their own gripes with an intended boon for rent-stabilized owners. Deconstruct sits down with The Real Deal's Kathryn Brenzel to talk Gov. Kathy Hochul’s “parameters of a conceptual agreement.”
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.
The foretold wall of CMBS maturities has hit and early data on office loans signals the fears around repayments — that troubled owners won't be able to swing it — are being realized. Deconstruct talks with Moody's Analytics Senior Director and Head of CRE Economic Analysis Kevin Fagan and Director of CRE Economics Matt Reidy.
For the most part, construction lending has dried up across the country, with more and more regional banks pulling back from financing ground-up real estate projects. But Kennedy Wilson, a lender based out of Los Angeles, sees opportunity in that. With more lenders on the sidelines, Kennedy Wilson can take advantage of lending to what it determines are the best borrowers and the best projects. And by being active, it can help take some construction loans off regional banks' balance sheets.
The Real Deal's Deconstruct chatted with Thomas Whitesell, Kennedy Wilson's head of debt originations, about how the firm is choosing what to lend on, its optimism for multifamily and the difficulties with office-to-resi conversions.
When the National Association of Realtors announced it had proposed to settle a landmark antitrust suit over real estate agent commissions for $418 million, everyone had questions. The Real Deal's Deconstruct breaks down what is changing — and what is not.
TRD reporters Sheridan Wall and Harrison Connery discuss NAR's new rule prohibiting broker compensation offers on the MLS, or multiple listing service, and what this means for agents and homebuyers going forward. Deconstruct also chatted with Michael Nourmand, who runs Los Angeles-based brokerage Nourmand & Associates, about how he thinks not much is set to change — and noted that commissions have always been negotiable.
In December, Democrats in Congress introduced a bill that would put an end to hedge fund ownership of single-family homes. As demand for single-family rentals continues to grow, developers specializing in build-to-rent claim they'll get burnt. Deconstruct breaks down who's in the crosshairs and the likelihood that legislation can rein in the investment giants.
From Chicago to San Francisco, office buildings continue to trade at astonishing discounts and reappraisals show value declines as high as 80 percent. But is there further left to fall? The Real Deal's Chicago Bureau Chief Sam Lounsberry and West Coast Bureau Chief Isabella Farr weigh in.
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).
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.
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.
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.
New York Community Bank reported a surprise loss in the fourth quarter, took an axe to its dividend and socked away over $500 million for commercial real estate losses. The bank's stock sunk to a 23-year low and other regional lenders fell in response. Is NYCB a red flag or a one-off for CRE distress in the banking space? Deconstruct digs in.
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.
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
Pull back the cover of The Real Deal's January issue and you'll find NIMBY vs. YIMBY battles unfolding across the country. Deconstruct talks with TRD senior reporters and bureau chiefs to unpack what's driving development and blocking construction in New York, South Florida, Los Angeles, Austin and Chicago.
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.
The Real Deal dubbed New York’s last legislative session the “housing session that wasn’t.” Developers desperate for a 421a tax abatement replacement went home empty handed. Tenant advocates saw no movement on the renter protection good cause eviction.
Could 2024 be different? Alicia Glen, housing expert and deputy mayor for housing and economic development under the De Blasio Administration, thinks so.
“I do feel there is a path forward,” Glen said. “We just need leadership to drive the deal.”
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.
You know the story: interest rates rose and deal flow slowed. After a year and half of sluggish trading, what's next for NYC's investment sales market? Avison Young's Head of Tri-State Investment Sales James Nelson lays out the market dynamics set to drive office and multifamily deals. Ariel Property Advisors' Founder Shimon Shkury gets granular on the distress affecting the rent-stabilized market.
"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.
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