Michael Phillips

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

We continue to diligence opportunities, and plan to buy in 2025. While we’re active across a range of markets, we’re especially focused here in New York and have multiple projects in the pipeline, focusing on mixed-use developments with value-add potential.

This past year, we expanded our portfolio by acquiring North American Property’s Atlanta subsidiary, adding several new assets, including Ridge Hill, a mixed-use retail property in Yonkers, and Riverton, a $2.5 billion redevelopment on the Raritan River in New Jersey. Next year, we’ll also deliver the $500 million redevelopment of One Times Square, transforming it into a year-round entertainment destination.

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

There’s rarely a single “good” sign — it’s more about seeing potential where others don’t. For us, it’s usually tied to understanding the fundamentals beneath the surface. Maybe there’s a high vacancy, but the location is excellent, or the asset is misaligned with market demand and needs repositioning. It could even be a management issue that’s suppressing value. It’s less about one sign and more about piecing together a broader story of opportunity.

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

I believe the office market is often misunderstood. High-quality office space with strong amenities and vibrant environments are still performing well. We’ve seen this trend across our portfolio, with moves like Snap to Levi’s Plaza in San Francisco, Adafruit at Industry City in Brooklyn, and New Balance relocating its Europe-Middle-East-Africa headquarters to the Schinkel District in Amsterdam.

While traditional, lower-quality office spaces may be struggling, there’s real opportunity for those who can create dynamic, experience-driven environments.

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

There’s a place for every type of tenant, but we’ve found that thoughtful co-tenancy is crucial. The best retail districts, in my opinion, seamlessly blend the familiar with the new.

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

We’ve been actively building and redeveloping middle-market rentals across our portfolio, including at Forge at Raleigh Iron Works in Raleigh, N.C., and Rock Springs Village in Atlanta. These kinds of projects are affected by the same challenges all projects are facing — namely, construction costs. But, in the right markets, the need for more middle-class housing presents an opportunity.

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

Domestically, I like Charleston, S.C., and Austin. Internationally, I like London and Milan. We’re fearful of markets with stagnant population growth.

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

We’re encouraged by the recent interest rate movement from the Fed, which will help thaw the financing climate. We’ve had to be particularly strategic to make things pencil over the past few years, and that will certainly continue, but interest rates coming down will hopefully get more things moving.

Lightning Round:

Your social media of choice?
Instagram.

AI: Helpful in CRE or a fad?
Helpful when used thoughtfully.

Last movie you saw in a theater?
“The Times of Bill Cunningham.”

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

Tesla or BMW?
A Volkswagen Eurovan.

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

What are you tired of talking about?
Return to work.