Don Peebles

Tell us about a deal that did NOT go through this year and why it didn’t happen?

We were working on a hotel/condo development deal in Beverly Hills, and we terminated because it would take two-plus years to get land-use entitlements in a declining market, and the seller was not flexible.

Have you refinanced anything in 2022? How difficult/easy was it?

No; just some bridge loans.

There’s a lot of Class B and C office in NYC. If you could lay your hands on them at a really great price, what would you do with them?

Convert them to residential rental units in the luxury segment. These buildings would also be conducive to hotel use if not for the new law the de Blasio administration implemented, the Citywide Hotel Special Permit, which dramatically extends the predevelopment time period and creates significant risk. The irony here is the city should incentivize the creation of more jobs and tax revenues by streamlining the development or conversion for new hotels.

What market outside of NYC do you like and why?

South Florida, Charlotte, Fort Worth, Atlanta and Boston. These cities are pro-business, good quality of life, low crime, and low or zero income tax states.

There’s a midterm election this year. How closely are you following, and do you think the national political climate will have an effect in New York?

Yes. The governor’s race will tighten, but it’s highly likely Gov. Hochul will win. Historically, New Yorkers are socially very liberal but fiscally moderate. The one thing New Yorkers do not have much patience or tolerance for is crime and public safety. The only times in my lifetime when New Yorkers elect Republicans is when they get to the breaking point on their safety. I think the city is getting close to that point, which is a big reason Eric Adams was elected. Job No. 1 for him is to make the city safe.

How many days per week are you in the office?

Zero; I travel around the nation as we have projects in seven cities and growing. I have worked primarily remotely for nearly a decade. Prior to the pandemic, I spent approximately 25 percent of my time in our NYC and Miami offices.

How many days per week are your tenants in the office?

We only own offices in Washington, D.C., and they are leased to the government. They are now back to work part-time.

NYC apartment rents have reached never seen levels. How much further can it go? How does the housing squeeze play out?

I believe vacancies will increase as inventory increases from unsold condos and relocations due to increased rents. The result will be stable or slightly declining rents. Most likely the bigger change is landlords will begin to assume the cost of brokerage commissions like the vast majority of the country.