Will Blodgett
Founder and CEO at Tredway
Where is Tredway going to be in 2026?
Nationwide in strategy, local in approach. 2023 has had a solid opportunity set, and we see the next two to three years — especially if interest rates remain volatile — continuing along the same trajectory. The trick is to do the good, impactful deals and avoid the bad ones.
Where is Tredway going to be in 2028?
Right now, we are 80 percent acquisition/rehab and 20 percent ground up. In five years, I would like that to be closer to 50/50. We’ve recently added several properties focused on seniors to our portfolio and feel it’s our duty to do more for vulnerable and at-risk populations. The fallout of the pandemic for older adults is just beginning to come into focus. We already know that seniors experience high rates of housing insecurity and that the existing housing stock is largely ill-equipped to meet their needs.
Where is Tredway going to be in 2033?
My greatest hope is that in 10 years Tredway will be one of, if not the, most impactful, intentional players in the affordable housing space. We want to remain small, focused and efficient while doing big things. The affordability crisis together with climate change are the most pressing issues our society faces, and it’s up to my generation to grab the baton and make serious headway in solving it. It’s now or never.
Tell us about a successful financing you’ve done in the last 12 months. Or tell us about an unsuccessful one.
Sea Park Apartments in Coney Island was a property at risk of losing its affordability. We partnered with Deutsche Bank, a large institutional equity partner, New York City’s Housing Preservation and Development Department and the city’s Housing Development Corporation to preserve the affordability for at least the next 60 years while also having available capital to invest in energy systems, physical plants, much-needed major capital expenses and
quality-of-life improvements
An unsuccessful one was a deal we were looking at in North Carolina. It was owned by a distressed developer and on paper looked like a great deal, but, upon visiting, we determined that the project was too far gone and could result in too big of an opportunity cost for the company.
When will we know the market has stabilized? (Be specific!)
For us, it is very stable now. For the distressed developers, it’s almost always a symptom of structuring their capital stack too aggressively, not the asset class. That can only be fixed with rates coming down, and I do not see that happening for at least a couple of years. It’s not just rates, though — it’s insurance, cost of labor and materials, more cumbersome regulation. This country desperately needs affordable housing and the situation is getting worse, not better. We don’t just need big, new ideas, but we need the power of public-private partnerships and the willingness to implement.
How do you think the 2024 presidential campaign will impact the commercial real estate market?
Given the scarcity of housing that’s available and affordable to the lowest-income Americans — we’re short an estimated 7.3 million homes nationwide — affordable housing is an issue that transcends partisan politics. Red or blue, both sides of the aisle know we need to tackle this issue head on.
If you were to invest your own money in someone else’s real estate, who do you like and why?
I’m biased, but I love the opportunity set in affordable housing. There has never been more demand. Financing is still available. The appetite is there. I would probably invest in Ron Moelis’s new ground-up deals. He builds well and with his heart in the right place. Profitable and impactful.
Who do you like for POTUS in 2024? Joe Biden. He is in my stuttering community.
Do you feel personally safe moving through NYC? 100 percent. Never safer. NYPD is doing a great job. Don’t get enough credit.
Jerome Powell: Are you a fan or critic? Fan. He is in a tough spot. Doing the best that he can with the tools he has.
Can’t-live-without technology now? My WHOOP. Sleep is key!
Elon Musk is …? In the arena.
Taylor Swift or Beyoncé? My daughter loves Taylor, so I listen to a lot of Taylor. But as a millennial, Beyoncé is more my era.
Artificial intelligence — good or bad? Amazing and scary.
Mischa’s or Nathan’s for a hot dog? Gray’s Papaya — red onions and mustard.
Netflix or Hulu? Netflix. Don’t have Hulu.
Who are you in “Succession”? Never seen it. From what I heard, it would make me lose faith in humanity. I love humanity.
