Kenneth Horn

What is the biggest difference in developing luxury properties between New York and North Carolina?

The biggest differences come down to costs and buyer expectations. In New York, both land and construction are extremely expensive, and buyers expect the best of the best. It’s a fast-paced, highly competitive market.

Markets like Raleigh and Durham, where we’ve recently expanded, have limited existing luxury inventory, allowing us the opportunity to introduce those higher-end offerings at a fraction of the costs we see in New York. The demand for luxury residences is high, but the competition is low. Buyers in the market have informed us that they’ve been waiting for this type of product to come around.

How is the condo development at the Woolworth Building progressing?

The Woolworth Building is fully sold out, as is our development at 378 West End Avenue. We’re now focusing on new projects like 125 West 57th Street, our ground-up office development, which is 98 percent complete. The offices begin 180 feet in the air and rise to 450 feet, with full-floor layouts over 10,000 square feet and Central Park views. Leasing is going incredibly well, with tenants informing us that there’s nothing comparable in the market. 

Additionally, we’re developing two Upper East Side rentals with favorable pricing, and with today’s strong rental demand, they fill a real void.

What kind of investors or capital partners are most attractive right now?

The investment environment has improved significantly over the past year. While large capital firms have remained active in the rental space, we’ve seen a notable resurgence of interest in condominiums in the past six months. We’re also seeing an uptick in interest from U.S.-based partners — after a long period of interest mainly from international groups, including firms from South Korea, Japan and Brazil — who are eager to invest in the New York market. Overall, investor appetite has broadened and activity is picking up.

What are the biggest challenges or unknowns with a new project?

No real estate project unfolds exactly as planned. Even with the best underwriting, unforeseen challenges inevitably arise — whether it’s COVID-19, shifts in capital markets, construction costs, debt availability or site conditions. The most important factor for developers is flexibility. Success comes down to the ability to adapt, remain level-headed, and make informed adjustments as circumstances change.

Do you see opportunities to enter the affordable housing market?

Yes, when the land basis supports it. For example, we’re developing an 80/20 project under the New York state 485x program on First Avenue between 77th and 78th streets. It was made possible by acquiring the land at the right price. However, when land costs exceed $400 per square foot, the economics of affordable housing typically no longer work. It all depends on if the numbers line up from the start.

Do you expect an influx of market activity in early 2026 if rates decline?

It’s possible, but much will depend on whether capital markets fully open up for debt and equity. The debt market is already strong. We’ve received many financing offers within two weeks for our project on 77th Street. If activity picks up, it will favor established developers. There will not be a flood of money being given to inexperienced hands.

Lighting Round:

Mamdani, Cuomo, Adams — Friend, mute, unfollow?
Whoever becomes mayor needs to prioritize open communication between the public and private sectors. Real estate and development need to be supported for the city to remain strong.

Borrowing costs by late 2026?
Down. We anticipate more rate cuts.

More exciting — interest rate cut or Taylor Swift’s engagement?
Rate cuts, but I wish her well!

Last vacation and where?
I recently visited some partners in Japan, who showed me around Tokyo, Osaka and Kyoto. Getting those personal, hospitable tours was an unforgettable experience.

How will tariffs affect your Thanksgiving shopping?
They will not. We are used to navigating market bumps, and construction spending is already down in New York.

You appear on the kisscam at a concert. Who’s performing?
A jazz concert. My wife and I are big fans and just attended a small show last weekend.

If Stephen Starr asked you which restaurant he should next reopen, what would it be?
Something chic, like Upland, which offered California-inspired cuisine. Our development at 125 West 57th Street is bringing a new concept to Billionaires’ Row, from the same hospitality group known for their popular flagship Mother Wolf restaurant in Los Angeles.