David W. Levinson

Are you going to buy in `25? If so, what asset class?

Yes.  In New York, we are in the market for office assets that we can reposition and make best in class. It is the same tried-and-true formula that has been L&L’s trademark since our inception, with buildings such as 150 Fifth Avenue (which is now MasterCard’s headquarters), 200 Fifth Avenue and 195 Broadway.

Is there a single “good” sign you see in a distressed property?

We prefer value-add office assets that have below-market rents and short-term lease expirations.

What real estate or tax policy would you like to see from a Trump administration?

Certainly, I would like to see lower interest rates and lower taxes, which would be beneficial to both the overall economy and the entire real estate industry. It would also be helpful to allow for accelerated depreciation related to capital expenses.

If you could stack the new administration with people you know and do business with, who would you choose?

I don’t want to get into naming individuals as there are many who I would like to see in important federal positions. In a nutshell, I would want successful businesspeople who would allow us to minimize the political class.

Let’s talk about office. Is the worst over?

I’m confident that the worst is over. Leasing and asking rents are improving. The back-to-the-office movement is accelerating. However, I would qualify that the environment is improving for buildings that are B-minus and above.

Let’s talk about multifamily. Do you ever see yourself building normal, middle-class rentals?

We have not built any multifamily in New York City though, we just completed 500 units and have another 2,000 in our Florida pipeline. The difference in terms of constraints on building are so vast between New York and Florida that it is not even worth measuring. That said, those who have specialized in New York City multifamily have done very well over the years. I hope they are given the opportunity to build more, because the city suffers from a real shortage of quality, middle-class rental apartments.

Which market (outside of NYC) do you like best? Which market (including NYC) are you most fearful of?

We have already expanded into Florida, which admittedly is a vast market. When most New Yorkers think of Florida, they think of Miami, Boca Raton and Palm Beach in the southeast. Those are all excellent markets, but when you also consider cities like Tampa, Cape Coral, Orlando and others, there is virtually unlimited opportunity over the long-term to build mixed-use projects.

The markets I’d be most fearful of are urban markets that are run by progressive politicians, and where you have rising crime rates, high taxes and significant barriers to development.

What’s going to be your biggest expense in 2025?

Everything is expensive when you are building the highest caliber of real estate. I would highlight labor and insurance in Florida due to the weather. In New York City and other urban areas, land costs are always more of an issue due to basic supply and demand.

Do you still like Eric Adams? (Did you ever like him?)

I really like the way Mayor Adams dresses and that he’s a vegan. I’m not a vegan myself, but I am in favor of the practice as it helps keep the price of steak down. And I wish him all of the best as he contends with his current challenges.

Lightning Round:

AI: Helpful in CRE or a fad?
Not a fad. AI is going to dominate everything, for better or worse.

Last movie you saw in a theater?
I can’t remember the last movie I saw in the theater, though I do recall watching a movie in a theater and enjoyed that very much. The popcorn is much fresher than a supermarket bag.

You’re going on a six-month expedition into the Amazon. What’s your last meal before you get on the plane?
Naturally, I would have a fabulous dinner at Four Twenty Five. Everything on the menu is wonderful.

Tesla or BMW?
Neither. I will go with Bentley or Ferrari.

Will interest rates be below or above 4 percent on July 1, 2025?
The 10-year Treasury will be in the 4 percent range, give or take 10 basis points.

If you could partner with one person in the business on a property, who would it be?
Blackstone’s Jon Gray. He might be the greatest real estate investor of our time.

What are you tired of talking about?
Politics.