Jake Elghanayan

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

We probably have room for one more large-scale development in our pipeline, either ground-up or an office-to-residential conversion. We’re always looking for interesting opportunistic acquisitions that don’t require major construction (where the size of our team limits our new projects). I can imagine 2025 presenting some candidates.

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

It all depends on the asset class. For residential, price and location are paramount because the end user is price sensitive. For office, the quality of the building is much more important.

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

I think the country would benefit from simplification of the tax code at the federal level (though real estate is one beneficiary of the current code). Locally, there’s a lot that New York City and New York State could do to be more competitive with the rest of the country and thereby grow the tax base. For example, lowering or eliminating the state estate tax would likely end up collecting more total taxes because wealthy people wouldn’t have as much incentive to move elsewhere as they get older.

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

It depends on the location. In our new multifamily development Malt Drive in the Hunter’s Point South section of Long Island City, for example, we’re always looking for new and interesting food, fitness, and other experiences to add value to our communities.

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

We just delivered 415 affordable units at Malt Drive. Both buildings within the development have a housing lottery component at 130 percent of the area median income, which is 30 percent of the total development. So that’s pretty significant. Our future developments in Chelsea and Greenpoint will follow the new 485x program if City of Yes passes, which will mean 25 percent of units at incomes even lower than the median.

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

We expanded our investment in the Wanamaker Building in Center City, Philadelphia, because we think that’s an interesting market and asset. It’s a walkable downtown area, has great architecture, and proximity to both New York City and D.C. at a fraction of the price. D.C. is our other major market, which has suffered for years, but might be poised to recover with Trump in office.

How’s the financing climate for new development and redevelopment — hot, cold or just right? 

Clearly tighter than it has been in the recent past, but we still find lenders are receptive for the right project with our sponsorship.

What are your predictions for the mayor’s City of Yes, especially given the controversies within the Adams administration?

Dan Garodnick and the Department of City Planning have done a great job, so yes.

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

It’s a tough job. He’s done some good things, but there’s no excuse for corruption (if it’s proved true).

Lightning Round:

Your social media of choice?
None.

AI: Helpful in CRE or a fad?
Not helpful yet, but probably will be in the near future.

Last movie you saw in a theater?
“Dune: Part Two.”

You’re going on a six-month expedition into the Amazon rainforest. What’s your last meal before you get on the plane?
A good pasta.

Tesla or BMW?
I’m a Tesla owner.

Will interest rates be below or above 4 percent on July 1, 2025?
Above.

If you could partner with one person in the business on a property, who would it be?
RXR.

What are you tired of talking about?
The election.