David O’Reilly

Where is Howard Hughes Corporation going to be in 2026? In 2028? In 2033? 

In two years, Howard Hughes will be post-spinoff of Seaport Entertainment and solely focused on building world-class master-planned communities. Five years from now, we’ll be using our significant amount of free cash flow to further develop the world’s greatest communities and small cities, continuing to attract people and businesses looking for an exceptional quality of life. 

Long-term planning is what we do. In 10 years, we will have significantly advanced our development pipeline — starting with the roughly 30,000 residents who will be living in our community of Teravalis in the Phoenix West Valley as we launch into the next phase of master planning and development beyond Teravalis’ first neighborhood of Floreo. We will have exhausted our entitlements to develop the Lakefront District in Downtown Columbia in Maryland and delivered a new library.

In Texas, we will be continuing to build out office space for corporate relocations in The Woodlands, while establishing Bridgeland Central as the new urban hub transforming Houston’s northwest. We will also be growing a movie studio business in Summerlin, Nev., as well as continuing to leverage the skill set of our team in Hawaii, partnering with local authorities to unlock the hidden value within Ward Village and its adjacent land.

Tell us about a successful financing in the last 12 months. Or tell us about an unsuccessful one.

We were recently successful in securing loan financing for our project Kalae in Ward Village in Hawaii earlier this year. Despite condo market uncertainty, we were still able to get buyer deposits and a 65 percent loan-to-value mortgage. We were able to get a loan at terms better than the previous one and in a more challenging environment, which is a testament to the quality of the real estate, the team and the execution at Ward Village. On the other side, loan financing for a multifamily project in The Woodlands took months instead of days, and was done at terms not nearly as competitive as they would have been a year ago. 

When will we know the market has stabilized? 

If it’s the overarching real estate market, I would say that it’s the flow of positive capital to reduce return requirements and tighten in the financing when spreads are stabilizing or compressing, because there’s more capital to finance than demand for those that need financing. Also, when there’s enough supply that comes out of the system, demand falls back into balance as demonstrated by higher rental rates and less vacancy.

How do you think the 2024 presidential campaign will impact the commercial real estate market?

To the extent there’s a front-runner who has a strong monetary policy, that would have an implication for future interest rates. The winner would also influence the Federal Reserve.

If you were to invest your own money into someone else’s real estate, who’d it be and why?

I would invest in Kite Realty Group Trust, one of the largest publicly traded owners and operators of open-air shopping centers and mixed-use assets, given the shifting supply, demand for quality, infill strip retail, and aggressive management.

What business advice are you most tired of hearing?

Too often, we’re told that we have to think outside the box, when I think we should be thinking instead of what we know has worked in the past and then expand beyond that in thoughtful ways.   

What’s the biggest market opportunity as we round out 2023?

The biggest opportunity is the continued migration into warmer, less expensive,
business-friendlier states where people and companies continue to move to improve their quality of life and to reduce their cost of living.

Have you had a lot of staff turnover?

We have had the lowest staff turnover since before the pandemic. We have people that are generally pretty happy in their job. 

Who do you like for POTUS in 2024? Michelle Obama.

Do you feel personally safe moving through NYC? Mostly.

Jerome Powell: Are you a fan or critic? Critic.

Can’t-live-without technology now? Waze.

Elon Musk is…? A pioneer.

Taylor Swift or Beyoncé?  Taylor Swift.

Artificial intelligence — good or bad?  Good.

Mischa’s or Nathan’s for a hot dog?  Nathan’s.

Netflix or Hulu? Netflix.

What character are you in “Succession”? Never seen it.