Gregg Schenker
President and Co-managing Partner at ABS Partners Real Estate
Where is ABS going to be in 2026? In 2028? In 2033?
Continuing to make good decisions throughout the current difficult market conditions, ABS is well positioned for the years ahead. Most of our financing is low leverage and long-term fixed rate. Our diversification in New York City with asset classes other than office has been an advantage. ABS has a meaningful concentration of risk and is well diversified: life sciences in Princeton, office and multifamily in the South, among others.
We focus on productive solutions as opposed to being absorbed by the problem. That’s helped steer ABS in both turbulent and good times.
Tell us about a successful financing you’ve done in the last 12 months. Or tell us about an unsuccessful one.
ABS recently completed the successful refinancing of 250 Canal Street through a 10-year loan from TD Bank, at a 6 percent interest rate. Closing occurred on Sept. 28.
When will we know the market has stabilized? (Be specific!)
With companies using more space per employee, the 25 percent availability rate should gradually drop over the next two to five years. However, stability in large part will depend upon values, interest rates, capital markets and the availability of financing from conventional lending sources like banks. The markets will be stable when the vacancy rate reaches equilibrium, and the capital markets and banks are open to lending.
How do you think the 2024 presidential campaign will impact the commercial real estate market?
New Republican leadership is likely to be punitive toward NYC and other major urban areas. Immigration policy is nonexistent and likely to become a more problematic situation. Migrants should promptly be given the documents necessary for legal employment.
NYC is a tale of two stories: On the one hand, it’s the greatest city in the world for many reasons, while on the other it’s a city with (roughly) 10 percent voter turnout for local elections; in 2022, only 43 percent voted in state elections and only 38 percent in federal elections. New Yorkers may believe their vote doesn’t count, and a successful campaign to turn out to vote is essential to a better future.
If you were to invest your own money in someone else’s real estate, who do you like and why?
Vornado — terrific properties, management and development sites. ESRT — exceptional management, little or no debt, substantial improvements made in all their properties. And SL Green — One Vanderbilt speaks for itself. Marc Holliday is a super leader.
What business advice are you most tired of hearing?
“Leave NYC!” Many friends have suggested that doing business in NYC is the equivalent of swimming upstream with an anchor around your legs because of political headwinds and regulatory constraints. But I have always felt — and continue to believe — that NYC is a place of great opportunity and promise, and a mecca for young talented people to live, work and make their futures successful.
As residents and stakeholders, we simply need to be better stewards of the future through thoughtful policy, civic duty and charitable endeavors.
Have you had a lot of staff turnover?
ABS has a partnership structure similar to a law firm: Team members are partners in the profits of the company. On the services side of the business, we offer the highest payouts to our agents of any firm and many additional incentives such as investment opportunities with the firm’s principals and clients. Our accounting and management teams are like family: paid above-market salaries, plus an advantageous benefit package and a pleasant work environment — in short, job stability and security. Some team members were here with me on my first day of professional work at Helmsley Spear in 1988.
Who do you like for POTUS in 2024? Nikki Haley.
Do you feel personally safe moving through NYC? No.
Jerome Powell: Are you a fan or critic? Huge fan. One of the all-time greats.
Can’t-live-without technology now? My iPhone and iPad.
Elon Musk is …? A difficult genius.
Taylor Swift or Beyoncé? Beyoncé.
Artificial intelligence — good or bad? Excellent.
Mischa’s or Nathan’s for a hot dog? Nathan’s.
Netflix or Hulu? Apple TV.
What character are you in “Succession”? Never watched.
