Gregg Schenker

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

Yes, ABS intends to continue with acquisitions in 2025, purchasing properties where a value-add component exists through ABS serving as the operating partner. The next acquisition is likely to be an office building. However, ABS is also active in retail, multifamily and life sciences. There are two planned 2025 office acquisitions underway — one in Manhattan and one in New Jersey. Both situations require deleveraging and funding the additional capital contributions necessary to improve the properties and lease-up.

We’re developing plans related to several development sites in Brooklyn, Palm Beach Gardens, Fla., and Princeton, N.J. Our business plan for these sites is consistent with the high demand for newly constructed, state-of-the-art facilities. In 2025, ABS hopes to complete the planning phase and ultimately build additional laboratory space in the Princeton Forrestal Center.

Is there a single “good” sign you see in a distressed property that makes you want to buy it?

Certain properties at this moment either require deleveraging or remain in need of upgrades and improvements to attract new tenants and retain existing tenants. Potential partners are asking ABS to fund the new capital, participate in the property ownership, and have ABS handle operations. Most of these joint venture arrangements contemplate a 50-50 ownership between ABS and the current owners. These discussions to deleverage or recapitalize are compelling, representing a winning formula for all stakeholders.

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

Housing. There is a crisis of affordability in housing throughout the country. A government incentive plan would spur housing investment and help alleviate the problem.

Three key elements are necessary: cash equivalent tax credits on a per-unit basis; real estate tax abatements; and government-subsidized financing. This will spur a boom in housing and help alleviate the tremendous burden for many Americans who find themselves cash poor, while struggling to cover the high cost of basic daily living.

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

Bill Ackman is a knowledgeable person with the proven capability to think deeply and develop solutions to complex problems. I am a major fan of Jamie Dimon and share the sentiment with respect to his capability to thoughtfully add value. Jamie’s ability to think, lead, do, and inspire is breathtaking. Michael Bloomberg cleaned up New York like no other mayor throughout history. His return to government office would be a blessing.

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

Yes. Class A office in New York City is booming. Supply is insufficient to satisfy demand, with large corporations seeking substantial blocks of space that are simply not available.

Of course, the owners of overleveraged properties will continue to suffer from mortgage maturity stress and a dearth of available financing. Owners of Class B and C properties will be required to reinvest heavily to attract new tenants and retain existing ones.

Let’s talk about retail. What’s the kind of tenant you want?

The retail tenants in any building should be lifestyle accretive to the occupants, property and neighborhood while integrating with the community. During the pandemic, ABS purchased several buildings along Steinway Street in Astoria, with a long-term vision for a non-homogenous but complementary tenant mix that uniquely represents the history, heritage and vibrancy of that wonderful Queens community.

Lightning Round:

Your social media of choice?
Instagram.

AI: Helpful in CRE or a fad?
Helpful in all business including CRE.

Last movie you saw in a theater?
“Babylon.”

You’re going on a six-month expedition into the Amazon. What’s your last meal before you get on the plane?
New York prime strip steak, green beans, baked potato and a fine bottle of red wine.

Tesla or BMW?
Tesla.

Will interest rates be below or above 4 percent on July 1, 2025?
I have no way to know.

If you could partner with one person in the business on a property, who would it be?
I could never choose just one.

What are you tired of talking about?
The diminished quality of life in our great city.