MaryAnne Gilmartin

Are you going to buy in `25? If so, what asset class?
Land. The underlying demand drivers of multifamily in New York City remain strong. As we learn to navigate 485x, we’ll continue pursuing viable ground-up sites and continue to build our multifamily portfolio.

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

When you are able to look past a capital situation and see the asset clearly, there is a lot of good. We have seen distressed deals, but in many of them the fundamentals of the real estate aren’t distressed at all. In both good and down markets, we are looking to buy based on relative value and make long-term investments. I am less concerned with the “distressed” terminology — we know a good opportunity when we see one.

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

We are fortunate that the housing crisis was finally front and center in a national campaign. Now that we have a president-elect, I look forward to seeing a housing plan that incentivizes the construction of more homes through deregulation, tax incentives, and/or new government programs. Importantly, we need strong housing initiatives that benefit, not penalize, urban dwellers.

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

We don’t strive for “normal.” We only build the best. The New York market needs more rental housing and we see it as our commercial and civic duty to continue to deliver this asset class. We are currently working to close multiple multifamily deals.

Which market (outside of NYC) do you like best?  

Baltimore is an American city on the rise. I am bullish on it because it’s got excellent qualities: a prime location in the center of the Eastern Seaboard with a stellar waterfront; highway and Amtrak access; a highly educated and diverse population; and low-cost living with top-notch quality of life. Baltimore Peninsula, our large-scale, master-planned development in South Baltimore, today includes over 1 million square feet of newly opened mixed-use space. This first chapter is stabilized with more than 90 percent of the over 500 residential units leased.

What’s going to be your biggest expense in 2025: Capital, insurance, labor, land or supplies?

All of the above! But especially labor. It still takes a village to build and operate a building. It is a constant battle to find efficiency in operating multifamily at the quality we want to deliver.

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

While capital has been risk-averse to development in 2023-24, today capital formation is back. The right deals — paired with high-caliber sponsorship in good markets with a strong business plan — will secure the capital. Nothing in this business is easy, but it’s never impossible.

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

We are hopeful that the zoning package will pass largely intact because, for once, there is some alignment on the need for more building in NYC. When it comes to development, New York is the greatest city in the world if you have the appetite for the fight. Let’s be honest — we wouldn’t need a program called City of Yes if we weren’t currently the City of No. We are fortunate that there are strong leaders and are cheering for them to get this over the finish line.

Lightning Round:

Your social media of choice?
Instagram.

AI: Helpful in CRE or a fad?
Vital!

Last movie you saw in a theater?
Wem Wenders’s “Perfect Days.”

You’re going on a six-month expedition into the Amazon. What’s your last meal before you get on the plane?
Sofreh in Brooklyn.

Tesla or BMW?
BMW.

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

If you could partner with one person in the business on a property, who would it be?
It’s such a good idea, I can’t tell.

What are you tired of talking about?
Interest rates.