Jake Elghanayan

How is the multifamily development market in New York City?

The leasing market is somewhere between stable and strong. New development continues to be constrained by higher interest rates and the limitations of 485-x, but our capital and organizational structure allows us to take a long view on new multifamily development. 

Therefore, TFC is still quite active.

What would speed or ease multifamily development in New York?

Increase the speed, clarity and consistency of code/permit reviews. This reform shouldn’t be politically sensitive. It just requires better administration of the rules already on the books. Integrating AI into the Department of Buildings (and other local and state regulatory agencies) could be a valuable addition to agency review, which are generally backlogged with the increasing complexity and volume of submissions. 

Hiring more plan examiners (and removing those who are known to be intractable) would also be welcome.

Do you still have to sell people on Queens? 

Honestly, no. 

The Queens waterfront has developed into a true neighborhood with an identity of its own, with great parks, modern buildings and infrastructure, and an easy commute to Midtown. It’s particularly popular among young families who want to be close to Manhattan but also want more breathing room and convenience. 

Long Island City still trails other neighborhoods like Williamsburg and Greenpoint in Brooklyn when it comes to restaurants and nightlife, though there are several notable exceptions. I’d love to see some of the more interesting food businesses operating deeper in Queens make their way to the waterfront. Consider this an open invitation to give us a call.

Any particular areas — geographically or by asset class — you’re looking to pursue? 

We’re always looking for areas that can develop into interesting and attractive neighborhoods. But I’d rather have less competition finding those opportunities, so that’s all I’ll say for now.

Where are you getting your money — or, how would you describe your investor base?

We primarily invest our own capital — essentially retained earnings from our existing portfolio, built over the last 55 years. The exceptions are projects where we have partners, like 175 Park with RXR or a couple forthcoming developments with the Brodsky Organization. 

Even in those cases, we invest a large portion of each project’s equity ourselves. That structure gives us the ability to be patient and make decisions with a long-term perspective rather than around a predetermined investment horizon. 

If you could change one area of global or local tumult, what would it be?

At the national level, I’m very disappointed by the lack of moral leadership and common decency. 

Closer to home, I’m most concerned with our collective acceptance of special interest groups that have driven up the cost of living or operating businesses in New York City. Illustrative examples include trial lawyers benefiting from the Scaffold Law and public sector unions like the Transport Workers Union of America resisting common sense labor changes. Of course, there are many in our industry who are guilty of this mentality. 

Ultimately, we need a political system that rewards leaders for serving the broader public rather than the loudest constituency. I think open primaries would help rebuild that democratic accountability.

Is the opportunistic investment window still open, or has it closed?

The market is dynamic, so as one window of opportunity closes, another opens. We recently saw compelling opportunities in office-to-residential conversions and buying top-quality existing office buildings. 

In New York City at least, the best of those deals are probably behind us. The next opportunities will probably be downstream of the recent rapid rise in interest rates and the refinancing pressure that follows.

Lightning Round:

Your AI platform of choice? Claude, for now.

Who would play you in a movie? Hopefully, someone better looking than me.

One prompt you’d never give AI. I’m still wary of letting agents send emails or make purchases.

Jalen Brunson or Aaron Judge? Brunson, the king of New York.

“Oppenheimer” or “Odyssey”? “Oppenheimer.”

Tom Holland, Andrew Garfield or Tobey Maguire? I can’t really tell the difference.

Have you ever eaten pizza with a knife and fork? Not often, but yes.

The most money you’ve ever spent on a hamburger? $30?

Bank or non-bank? Bank.

Last book you read? Dan Doctoroff’s Greater Than Ever: New York’s Big Comeback.

Borrowing costs — up or down in 2027? I wouldn’t bet one way or the other.

What was your nickname when you grew up/started out? Pook.

How long do we have before AI kills us all? I’m most concerned about the dangers posed by AI as it might be used by human terrorists.

Where’s your secret escape compound? (Think Peter Thiel’s New Zealand Plan B.) I stayed in NYC through the COVID pandemic, so no secret compound yet. Though I admit it’s hard not to think about it.