Robert Lapidus
President and Chief Investment Officer at L&L Holding Company
Where is L&L Holding Company going to be in 2026? In 2028? In 2033?
I am not in the business of predicting the future. However, what I do know is that L&L will continue to thrive. We will succeed by doing what we have always done, which is taking advantage of opportunities that correlate with our specific skill sets. That is true in the short, the medium and the long term.
Tell us about a successful financing you’ve done in the last 12 months. Or tell us about an unsuccessful one.
We are about to close a complicated restructuring of the entire capital stack for our Terminal Warehouse development. This deal involves several general partners, a host of limited partners, both large and small, as well as a syndicate of senior and mezzanine lenders. We’ve been working on it for a year. Given the state of the credit markets, it hasn’t been easy getting everyone aligned, but we have managed to do it because of the relationships involved and the universal belief in the quality of the product we are delivering. I think it will go down as one of this period’s most successful recapitalizations.
In another particular instance, a foreign lender did not come to terms with the current market valuation and refused to modify their position to allow us to invest additional capital at a rational basis.
When will we know the market has stabilized?
If we’re talking about the commercial real estate market in New York City, we will know the market has stabilized once we see a significant increase in transaction volume. When market participants have enough data and confidence to underwrite assets, transaction volume will increase, and markets will stabilize.
How do you think the 2024 presidential campaign will impact the commercial real estate market?
Markets decline when uncertainty is pervasive. The extreme division in our country is bad for everyone, including the commercial real estate market. Stability and economic growth are the necessary components for a healthy commercial real estate market.
If you were to invest your own money in someone else’s real estate, who do you like and why?
From a long-term perspective, I would invest in the multifamily asset class. I would focus on markets that demonstrate population growth and a pro-business environment.
What business advice are you most tired of hearing?
“Be patient!”
What’s the biggest market opportunity as we round out 2023?
The current market dislocation will result in numerous opportunities in the near term. I would focus on great operators and superior assets that require capital, both debt and equity. When market conditions correct, the well-capitalized top-tier players will have superior results.
Have you had a lot of staff turnover?
Every healthy company experiences some measure of turnover. We are fortunate in that ours has been minimal.
Who do you like for POTUS in 2024? Neither of the leading candidates. We need new energy, new ideas and new people from both parties.
Do you feel personally safe moving through NYC? Absolutely.
Jerome Powell: Are you a fan or critic? Fan.
Can’t-live-without technology now? All of my music apps … and Waze.
Elon Musk is …? An innovator.
Taylor Swift or Beyoncé? My daughter would stop talking to me if I didn’t say Taylor Swift.
Artificial intelligence – good or bad? More good than bad.
Mischa’s or Nathan’s for a hot dog? Nathan’s. Well done with sauerkraut and mustard!
Netflix or Hulu? Netflix.
What character are you in “Succession”? I like to consider myself a likable guy — and none of those characters are remotely likable. So, I’ll say the producer.
