Andrew Farkas

In times of great distress in real estate, you can bet Andrew Farkas is getting to work.

The founder of Island Capital Group, who made some pretty genius bets in the wake of the Global Financial Crisis, started off the post-pandemic market by betting big on New York City hotels, and now has gotten into office deals in Miami and New York City.

“This environment is our wheelhouse,” Farkas said. “I think a lot of supporters, a lot of our investors, are very interested in what we are able to conjure this time.”

What Farkas was able to summon from his cauldron this past year included dropping $71 million to acquire an 11-story office building in Doral, Fla., at a 26 percent discount. Island Capital also partnered with JW Capital Management to take control of a 637-unit multifamily portfolio in Manhattan from Blackstone while also securing a $270 million loan to pay off the portfolio’s debts.

While wresting control of a distressed portfolio might appear to be a good way to make some enemies, Farkas assured there was no bad blood between him and Blackstone CEO Jonathan Gray over the deal.

“Blackstone as an institution, and Jon as an individual, are friends,” Farkas said. “There’s pretty much not a prayer on the planet that I would ever consider doing anything having anything to do with them without appropriate blessings.”

For one of Farkas’s previous bets for New York City hospitality, Island Capital and its partners, MCR Hotel and Three Wall Capital, secured a $155 million refinancing for the Lexington Hotel in Midtown.

Outside of real estate, Farkas has been trying to regain control of the yachting and marine company IGY Marinas, making an offer to fully acquire MarineMax, which bought IGY for $480 million in 2022. And Farkas isn’t done looking for real estate opportunities in this market period, either, saying he has a series of funds for which he’s currently raising capital.

“There’s no dearth of opportunity. You just have to dig for it more,” Farkas said. “It takes more effort to find, and perhaps a little more fortitude to execute, but it’s there.”