Jed Walentas

Where is Two Trees going to be in 2026? In 2028? In 2033? 

Real estate is a slow-moving business. It’s the essence of the long game, especially the way we work and with the scale and complexity of the projects we take on. The truth is, we may well be in the same place we are now [in Brooklyn] … or at least within walking distance. We have another 1.3 million square feet to build at Domino. And then we have all of River Ring to build — another life-altering park for New Yorkers, and two more mixed-use towers. 

We couldn’t be more excited. But we are not going anywhere. We keep all our eggs in one basket, but we watch the basket very carefully.

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

In this environment, all financings are successful! We do all our giant construction loans with a team of three banks: Chase, Wells Fargo, and M&T. We have real relationships there and we honor those relationships in the great times, and they reward us when the capital markets constrict. 

Luckily, we haven’t had an unsuccessful one yet.

When will we know the market has stabilized? (Be specific!) 

The real estate industry is dynamic, especially in New York. That is the essence of it. I don’t think it is ever stable by definition.

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

I am not that smart.

If you were to invest your own money in someone else’s real estate, who do you like and why?

I think [Related Companies’] Jeff Blau is probably among the smartest and hardest-
working people in our industry. You can’t go wrong with the Venn diagram of those two traits. Many of my colleagues are very successful. Lots of them do interesting projects that add value to New York and other places. Luckily, there are enough projects to go around, and I truly believe that rising tides lift all boats. Every time one of them does a great job, it makes all of us better.

What business advice are you most tired of hearing?

The narrative that there is no future for office space and that nobody is ever coming back to work. Most companies don’t work without people being together in person. And most people don’t “work” from home. That English word and much of that behavior do not mean the same thing!

There are a lot of commercial buildings whose capital stack is out of whack. There are owners whose expectations of rents and interest rates were not accurate. But there will be a healthy office market again someday. Companies will start to grow again someday. It will take time. And there may be some pain for current landlords with mediocre assets. But companies renting office space is not a defunct concept in the world.

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

Treasurys?

Have you had a lot of staff turnover?

In 25 years of running my business, I don’t think there have been three people who have ever left Two Trees to go do something else who we were sad about (besides working for themselves, which we always encourage).

Who do you like for POTUS in 2024? America’s institutions.

Do you feel personally safe moving through NYC? I grew up here in the late ’70s and early ’80s. Everyone needs to get a grip.

Elon Musk is …? The most accomplished entrepreneur of his generation.

Taylor Swift or Beyoncé? Both?

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

Netflix or Hulu? If it’s not a live sporting event — or “Family Feud” reruns — the odds of me watching it are low.