Sunday Summary: Gary Barnett Is Nowhere Close to Done

The name Gary Barnett is one that people in the real estate industry revere. Or, at least, are fascinated by.

Yes, there was a whole career of patiently, methodically building up a real estate empire — but the truly interesting thing was the moxie.

Sometimes this moxie meant Barnett’s battle with some of the biggest names in the business. Sometimes it meant the courage of his convictions — such as constructing the richest, swankiest condo in New York during the middle of the gravest financial crisis since the Great Depression … and coming out on top!

So we’ve been more than a little intrigued by all the activity going on with the guy over the past 12 months.

First, Barnett’s Extell Development is building a $1 billion, 600-foot-tall office at 570 Fifth Avenue with Ikea parent Ingka Investments, which will have an 80,000-square-foot Ikea on the lower level (well, obviously).

Next, he filed plans for a 1,200-foot-tall residential tower at the former ABC campus on the Upper West Side.

He’s doing another 1,162-foot-tall residential building at the former Wellington Hotel.

And that’s just New York.

While Barnett will always play his cards close to the vest, it’s worth taking this all into account here — but one of the best insights that will doubtlessly excite the Barnett watchers comes from RXR’s Scott Rechler: “He’s somebody who’s a little bit like Houdini. He’ll go into challenging situations, but you count on him to find a way to get through.”

Bidding adieu

We were thrown a little for a loop when we learned that Kathleen McCarthy was leaving one of the very best perches in the industry — i.e., global co-head of real estate at Blackstone.

“After 15 incredible years at Blackstone, I’ve decided it’s time for my next chapter,” McCarthy wrote on her LinkedIn page. “Leading Blackstone Real Estate has been one of the great privileges of my career — fun, challenging, and deeply rewarding. I’m so proud of what we’ve built together through an extraordinary period of growth and transformation.”

So where does a co-head of real estate go when leaving a company with assets under management worth more than the GDP of Switzerland?

Nowhere we’ve been able to discern. McCarthy is staying at Blackstone until the end of the year, but she hasn’t disclosed any big (or small) shop that she’s going to, and after much snooping and many calls, CO was unable to learn anything beyond this. Several sources told CO that she is just taking time off.

As for Blackstone, McCarthy’s co-head, Nadeem Meghji, will take on the real estate job solo.

Let’s talk about politics

While the real estate industry comes to grips with Zohran Mamdani’s mayoral win earlier this month, the practical side of how Mamdani will govern New York City is very much up for debate. But some of the early indicators are positive, at least as far as staffing his transition team is concerned.

“There’s nothing worse than incompetence,” said Brad Gerstman of the government relations and lobbying law firm Gerstman PLLC. “That’s scary. That’s super dangerous. If [a mayor is] going to pick people to run agencies because they’re his friends, and they’re incompetent, that [would be] a scary thing for New York City.”

Not the case with the names that Mamdani has been leaning on so far, says Gerstman.

Elana Leopold, a de Blasio administration vet, is executive director of Mamdani’s transition team, which includes de Blasio alum Melanie Hartzog, Bloomberg administration hand Grace Bonilla, and former first deputy mayor for Eric Adams Maria Torres-Springer. Mamdani also tapped Dean Fuleihan, former first deputy mayor and budget chief under de Blasio.

“Those are good first steps,” said Travis Terry, of the strategy consulting firm Immortal Strategies. “Dean is a well-respected government official who understands the city and state very well. And, given that a lot of Mamdani’s agenda is going to require state cooperation, I think it’s a smart move by him.”

Likewise, Torres-Springer was a welcome name for many.

“I’ve known her since she was in Small Business Services — she’s an absolute superstar,” said Lou Coletti, the former president and CEO of the Building Trades Employers’ Association. “I wonder if maybe she ends up coming back, because she’s a very public service-oriented individual, and very, very smart.”

(Alas, no one we spoke to singled out the fifth member of the transition team — former Federal Trade Commission chair Lina Khan — for praise.)

The 112 percent year

One hundred and twelve percent. That’s the upward number of CRE loan closings in the third quarter over last year, according to a new report by CBRE.

When we see the number of deals crossing our desk, yeah, we can believe it.

Like just this week $88.4 million for the redevelopment of a defunct shopping mall in Long Beach, Calif.

Also, a $686 million construction loan to Azure Resorts & Hotels, Luxus Developments and Two Roads Development for the Four Seasons Private Residences Las Vegas.

Or David Werner Real Estate Investments and 601W Companies closing on $100 million to acquire 205 East 42nd Street from the Durst Organization.

And one should not forget the $220 million debt package The Loketch Group, Joyland Group and Meral Property Group secured for their Brooklyn multifamily properties from Blackstone.

Oh, yeah — and Rudin got a four-year extension on $425 million in CMBS financing for 32 Avenue of the Americas.

Phew!

Owners, owners, owners

Sometimes the best way to process everything that’s happening in the wild space that is commercial real estate is talk to some of its biggest wigs.

Hence, this week CO released its Owners Magazine — where the tops of the biz got a chance to sound off.

In addition to reading individual interviews with Anthony Malkin, Douglas Durst, Brian Feil and about 39 others, we also took a look at some of the broader themes that have affected ownership:

Has security increased or changed since the tragic shootings at 345 Park Avenue over the summer?

Now that we’re 10 months into a second Trump administration, is this what ownership expected?

What’s the AI technology that ownership really needs to master (or at least know about)?

And exactly how did Simon Property Group come out of the last few years looking better and better?

Enjoy!