Rick Gropper

Are you going to buy in `25? If so, what asset class?
Camber remains bullish on the acquisition of existing affordable housing as well as land to build affordable, supportive and transitional housing. There is such an acute need for this type of housing as market rent climbs and the effects of inflation are felt on residents’ wallets. Camber has several deals currently in contract that will close in `25 in the permanent housing and transitional spaces.

Is there a single “good” sign you see in a distressed property that makes you want to buy it?
Desire to make a change. We see a lot of distressed opportunities and have a track record of successfully turning around some highly physically and financially distressed assets. This requires a lot of hands-on blocking and tackling with significant financial risk to the incoming developer. We won’t get involved in something unless we have good partners — including on the sell side of the transaction — who are all working toward the same goal. Basis helps, also.

What real estate or tax policy would you like to see from a Trump administration?
From an income tax perspective, we would like to see bonus depreciation reinstated, as it will phase down to 0 percent in 2027. This deduction is beneficial to us as direct owners of real estate, but even more so in our efforts to bring investors into the space. Low-Income Housing Tax Credit investors and conventional equity investors alike can use passive loss deductions to boost their returns on an after-tax basis and fund more capital into deals as a result. Permanent bonus depreciation is certainly something Trump can get behind — it’s from the Tax Cuts and Jobs Act of 2017.

Another tax-driven item would be exempting affordable housing from the volume cap for private activity bonds. This is a super nerdy thing, but would double affordable housing production in New York City over the next decade and greatly increase it nationwide.

If you could stack the new administration with people you know and do business with, who would you choose?
I would make Walter McNeil HUD secretary. He’s the longtime president of the Edenwald Houses tenants association and one of the best people I know. Walter lives in the 2,000-unit former New York City Housing Authority complex that we recapitalized, and are in the process renovating. He has an amazing perspective and temperament. Walter spent two and a half years fighting for our country in the Vietnam War. He then came back and landed a job at the U.S. Postal Service, where he worked until retirement.

Which market (outside of NYC) do you like best? Which market (including NYC) are you most fearful of?
As we grow nationally, it becomes more and more clear how difficult it is to do business here as a developer and owner. The level of regulation in New York City has become almost untenable between new local laws passed every day and collection issues. I don’t want to sound super-negative because New York City is our home base. There are things that we need to collectively do more efficiently to encourage investment here.

Outside of the city, Camber is working in a bunch of states now, and our experience in Ohio has been very encouraging.

What’s going to be your biggest expense in 2025?
Camber’s biggest expense is also its greatest asset: our team. For our operating assets, the biggest expense across the board is insurance. So many insurance carriers have dropped the New York City affordable housing market that the cost of insurance has doubled or even tripled over the past five years.

What are your predictions for the mayor’s City of Yes?
City of Yes is going to pass. The principles are sound and the pros at the Department of City Planning and City Hall are going to help get this across the finish line. I’m sure there will be modifications, but, even so, it will be a huge win for the city. Projections show it will increase housing production by 30 percent over a 15-year period.

Lightning Round:

Social media of choice?
I waste a lot of time on Instagram. Follow my dog @batesthesilverfox.

AI: Helpful in CRE or a fad?
Helpful.

Last movie you saw in a theater?
“Straight Outta Compton.” That was 10 years ago.

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

Tesla or BMW?
Neither.

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

If you could partner with one person in the business on a property, who would it be?
Ron Moelis. Don’t tell him. His head is big enough.

What are you tired of talking about?
Interest rates.