Laurent Morali

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

I anticipate continued improvement in the multifamily sector’s macroeconomic outlook over the next 12 months. For the past two years, buying has been challenging due to cap rates being lower than interest rates. However, 2024 marked a shift, with positive leverage returning. We closed two major acquisitions in Washington, D.C., and Miami, totaling over $300 million, which reflect these favorable conditions.

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

A strong location is key. Not all distressed deals are equal. Within that universe, we might as well focus on the best assets in the strongest markets.

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

Absolutely. We are one of the largest private developers of middle-class rentals, with 5,000 units under development in New Jersey and another 5,000 in Florida. This focus is a core part of our strategy.

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

We’re particularly bullish on the Southern states — Texas, Florida, Tennessee, Virginia and Mississippi — along with New Jersey. These markets are pro-business and offer strong growth potential. As a New Yorker, it pains me to see how inhospitable New York City has become to do business in.

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

In 2025, we expect real estate taxes and insurance to continue to be our biggest expenses, with labor to a lesser degree.

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

The financing climate depends on the submarkets, and we have confidence in new development in New Jersey and Florida. In 2024, we’ve successfully capitalized on over $1 billion in construction, which shows the climate is just fine for the right product. We’ve received a strong reception from the lending market on each of our development projects over the past 24 months.

Lightning Round:

Your social media of choice?
I go on Instagram to relax and follow some guitar-related content.

AI: Helpful in CRE or a fad?
Helpful.

Last movie you saw in a theater?
“Top Gun: Maverick,” which was terrific.

You’re going on a six-month expedition into the Amazon  What’s your last meal before you get on the plane?
Steak frites and a salad.

Tesla or BMW?
BMW.

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

If you could partner with one person in the business on a property, who would it be?
My friend Adam Altman from KABR Group.

What are you tired of talking about?
Interest rates being so high!