NYLIB 9/25/24 NYLIB 9/25/24

Multifamily Commercial Real Estate Lending: Economic Challenges & Societal Benefits

On September 18th, NYLIB hosted a panel discussion on Multifamily Commercial Real Estate Lending: Economic Challenges & Societal Benefits moderated by Robert Smith, Executive Vice President and Chief Real Estate Advisor at Apple Bank.

On Wednesday, September 18th, NYLIB hosted a panel discussion on Multifamily Commercial Real Estate Lending: Economic Challenges & Societal Benefits moderated by Robert Smith, Executive Vice President and Chief Real Estate Advisor at Apple Bank. A distinguished panel discussed the interface of laws and regulations, subsidies, rent controls, rental rates, and cost structures affecting multifamily lending, as well as tensions between the societal goal of affordable rental rates and the economic stresses on these properties (and on owners and lenders) given the current legal framework.

FROM LEFT TO RIGHT: James Nelson, Principal and Head of Avison Young’s Tri-State Investment Sales Group; Robert Porto, Executive Director at Cushman & Wakefield VALUATION & ADVISORY; Robert Smith, Executive Vice President and Chief Real Estate Advisor at Apple Bank.; Edward Lutz, President of NYLIB; Nate Bliss, Chief of Staff to the Deputy Mayor for Housing, Economic Development, and Workforce; Joseph Condon, Counsel FOR LITIGATION & POLICY at the New York Apartment Association (NYAA).

Among other topics, the panel discussed the effects of the Housing Stability & Tenant Protection Act of 2019 (HSTPA) on the valuations and viability of rent-stabilized and rent-controlled multifamily buildings in New York, and the need for reform at the state level. The relative benefits of voucher programs such as Section 8 were discussed, with panelists noting that voucher programs cause less market disruption than rent controls while continuing to ensure housing affordability. The potential impacts of the new 485-x tax abatement were discussed, as well as the disincentive that imposing minimum construction wage requirements provides for building projects larger than 99 units. Various positive actions taken by the Mayor to increase the supply of affordable housing were discussed, including the Mayor’s “City of Yes” proposal that would represent the most significant reform to New York City zoning restrictions in many decades. The idea that New York City might take additional steps to reduce the expenses that it imposes on struggling landlords also was discussed. There was robust audience participation during the Q&A portion of the event.

Moderator

Robert Smith joined Apple Bank in July 1992 and is currently Executive Vice President, Chief Real Estate Advisor. He is responsible for all activities within the Real Estate Valuation and Advisory Division (REVAD) at Apple Bank as well as various related commercial real estate activities throughout the Bank.

With a career spanning over four decades, he has been involved in commercial real estate since 1980, working with leading real estate companies and financial institutions. He has experience as a real estate advisor and as a real estate reviewer and appraiser.

Mr. Smith has taught graduate-level commercial real estate courses as an adjunct at New York University's NYU-Schack Institute of Real Estate for the past 17 years. He currently serves as an Adjunct Instructor at Fordham University - Real Estate Institute (REI) Graduate School Degree program. He continues to serve as an Instructor for the Appraisal Institute (AI) and is a Certified USPAP instructor for the Appraisal Foundation (AF).

Panelists

James Nelson is Principal and Head of Avison Young’s Tri-State Investment Sales group, where he leads a group of three dozen professionals in the sale of multi-family, office, development, and retail properties. Avison Young is a full-service global real estate firm with 5,000 real estate professionals located in 120 offices in 20 countries.

Throughout his close to 25-year career, James has been involved in the sale of approximately 500 properties and loan sales for an aggregate value of over $5 billion dollars. Prior to joining Avison Young, James served as Vice Chairman of Cushman & Wakefield, where his team was ranked the number one Investment Sales broker nationwide in 2016. Previously, James was a partner and top producer for Massey Knakal for six of their last eight years and was named the company’s youngest partner in 2004.

James enjoys guest lecturing at Columbia, Fordham, NYU, Wharton, and his alma mater Colgate. He is a regular source for the Wall Street Journal, NY Times, and the NY Post, among others. He serves on the boards of the Real Estate Board of New York (REBNY), Counselors of Real Estate, SparkYouth NYC, and Young Men’s/Women’s Real Estate Association of New York (YM/WREA). He is also a co-founder of the Real Estate Services Alliance (RESA) and the Colgate Real Estate Council. You can learn about James’ book, The Insider's Edge to Real Estate Investing: Game-Changing Strategies to Outperform the Market, and James’ videos and podcast on his website.

Robert Porto, MAI, is an Executive Director with Cushman & Wakefield Inc. Valuation & Advisory. Bobby joined Cushman & Wakefield Valuation & Advisory as an intern in May 2003. He was subsequently hired as a full-time appraiser and real estate analyst in June 2004. Since joining the division, Bobby has worked on various appraisals of income-producing properties, including office buildings, industrial properties, retail and shopping centers, and special-use properties such as auto dealerships, golf courses, restaurants, and parking garages. His work scope includes feasibility studies, market surveys, and investment analyses. Bobby has been a member of the Gas Station/Convenience Store, Auto Dealership, Multifamily, Industrial, and Restaurant and Residential Development specialty practice groups. Bobby was promoted to Associate Director in July 2008, to Director in July 2010, Senior Director in April 2014, and Executive Director in June 2022.

In 2012, Bobby joined New York’s multifamily specialty practice group as a colleague of John T. Feeney, regional head of the Multifamily Practice Group. The group focuses on valuation and consulting assignments located within all five boroughs of New York City and Long Island. Assignments include cooperatives, existing and proposed condominium developments, proposed and existing rental developments, 80/20 and 70/30 mixed-use developments, Section 8 housing developments, Mitchell Lama developments, development sites, air rights, Low Income Housing Tax Credits, Inclusionary Housing and benefits related to sub-market financing. Bobby prepared the Hudson Yards Financing District Development and Revenue Report in support of the 2021 $452 million bond financing for the Hudson Yards Infrastructure Corporation. Bobby is qualified as an expert witness.

Nate Bliss is Chief of Staff to the Deputy Mayor for Housing, Economic Development and Workforce, where he supports an interdisciplinary team leading City Hall’s efforts to promote recovery and to build a stronger and more inclusive economy. Nate has 20 years of experience in public-private partnerships, including time in both the private sector and in government. His work has included the development of laboratory and life sciences space in his role as Vice President for Development and Construction at Taconic Partners, and neighborhood revitalization efforts in areas including Coney Island, Long Island City, Downtown Far Rockaway, and Staten Island's North Shore in his role as Senior Vice President at New York City Economic Development Corporation. Nate is a graduate of Columbia University and New York University, and has also taught at NYU's Schack Institute of Real Estate. He resides in Brooklyn with his wife and two sons, and is proud to live and work in the greatest city on earth.

Joseph Condon is Counsel for Litigation & Policy at the New York Apartment Association (NYAA). NYAA was recently formed via a merger between the Community Housing Improvement Program (CHIP) and the Rent Stabilization Association of New York, Inc. (RSA). It is a 501(c)(6) that represents a coalition of property owners and managers who provide the majority of affordable multi-family housing in the state of New York.

Prior to serving as Counsel for Litigation & Policy at NYAA, Joe served as General Counsel of CHIP. Founded in 1966, CHIP was a trade association for owners of over 400,000 rent-stabilized rental properties across New York City’s five boroughs. CHIP provided educational programming, compliance assistance, and legislative advocacy to its more than 4,000 members. CHIP supported its members in their mission to provide excellent and affordable housing, build a sense of community in their properties, and employ thousands of New Yorkers with their small businesses.

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New York State Assemblyman Jake Blumencrantz was unexpectedly unable to participate in the panel discussion due to an impromptu political rally on Long Island. His view was conveyed that with less government intervention and more incentives for investment, the private sector can deliver the housing solutions that New York desperately needs.

The Audience

Vivek Baid, commercial real estate lender at Metropolitan Commercial Bank, poses a question at the multifamily Commercial Real Estate lending Event (Sept 2024)

Sponsorship & Future Events

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From Left to Right: Dustin Nofziger (Attorney, Pryor Cashman LLP), Edward Lutz (President, NYLIB), Pinchus Raice (Attorney, Pryor Cashman LLP)

As NYLIB continues to plan events and meetings, we are open to suggestions on topics or issues that are of interest to banks in the tri-state area. Subscribe to our mailing list below to stay informed on news and upcoming events.

Memorable Moments

Please enjoy more memorable moments from our evening here. We encourage you to download your favorite moments and share them on LinkedIn. Don’t forget to tag the New York League of Independent Bankers (NYLIB)!

NYLIB 5/23/22 NYLIB 5/23/22

NYC Commercial Real Estate Roundtable Featuring Ariel Property Advisors Founder Victor Sozio

NYLIB hosted a roundtable discussion for CEOs over dinner at Avra Madison Estiatorio in Manhattan on May 23, 2022. The event was attended by a number of our colleagues from the banking industry as well as the commercial real estate sector.

The CEO Roundtable event featuring Ariel Property Advisors Founder Victor Sozio offered an engaging discussion and useful takeaways on key topics in New York City commercial real estate. Ronald Kremnitzer and Wayne Heicklen, partners in the Real Estate Group at Pryor Cashman, added the legal point of view to the discussion.

Keynote Speaker

Our keynote speaker was Victor Sozio, Founding Partner of Ariel Property Advisors and one of New York City’s leading commercial real estate brokers. Mr. Sozio provided insight into the state of the commercial real estate market in NYC. Mr. Sozio’s comments touched on investment sales trends, vacancy rates, prices, cap rates, and the political environment. He also discussed case studies on recent retail, office, and industrial transactions.

The Legal Perspective

NYC Commercial Real Estate Roundtable Featuring Pryor Cashman Partner Ronald Kremnitzer

Ronald Kremnitzer and Wayne Heicklen, partners in the Real Estate Group at Pryor Cashman, added the legal point of view to the discussion, including a focus on how the COVID-19 pandemic is continuing to affect both retail and residential real estate—and how the situations are shifting as landlords and tenants negotiate the terms of new and modified tenancy agreements.

Mr. Kremnitzer noted that while retail landlords are beginning to see some recovery, tenants are still seeking (and often getting) financial modifications to lease agreements. On the residential side, landlords spent much of the pandemic period “desperate” to attract renters, sometimes with 2-3 months of free rent and other enticements; however, the residential market is seeing an almost total reversal in favor of landlords, with residential rents at or higher than pre-pandemic rates.

NYC Commercial Real Estate Roundtable Featuring Pryor Cashman Partner Wayne Heicklen

Mr. Heicklen led a lively discussion of the most difficult challenges facing New York City in order to reach recovery to pre-pandemic levels, which included curbing crime, getting workers back to the office, and creating incentives for private sector developers to build affordable housing.

Upcoming Events

The NYLIB team is thrilled that we were able to provide an opportunity to bring our colleagues together to explore key issues of importance to members of the banking industry. Our organization’s mission is to provide a forum for networking and education.

Edward Lutz, President, NYLIB & President, Lutz Advisors, Inc.

As we continue planning events and meetings, NYLIB is open to any suggestions on topics or issues that are of interest to the community and foreign banks in the tri-state area. Don’t forget to subscribe to our mailing list below, to stay informed on news and upcoming events.

Memorable Moments

Please enjoy more memorable moments from our Cybersecurity Panel Discussion here. We encourage you to download your favorite moments and share them on LinkedIn. Don’t forget to tag the New York League of Independent Bankers (NYLIB)!