The Real Deal’s Real Estate Forum’s second panel featured notable (and strongly opinionated) New York City real estate developers discussing about the real estate market in the new administration. Needless to say, with the former Democratic Governor of New York, Eliot Spitzer, potential mayoral candidate, Don Peebles, and outspoken Republican (though formerly Democrat) billionaire CEO John Catsimatidis, the discussion was politically charged, and got off the topic of New York City real estate more than a few times.
Naturally, first on the docket was how the new administration’s tax plan was going to affect the New York City real estate market. Peebles defended the unfavorable tax plan, claiming “we’re going to see this policy create more activity.” Naturally, this elicited a quick rebuke from Mr. Spitzer, “This is not a tax plan… What they put out was a press release. It’s simply bad policy.”
As mediator Hiten Samtani pointed out, “New York is typically a game of city and state” alluding to the city’s dependence on the governor of New York for funding, especially for its infrastructure. Spitzer condemned New York’s current Governor, Andrew Cuomo, and New York City’s mayor Bill de Blasio, for not working harder to be on the same page about funding for New York City. The Metropolitan Transit Authority (MTA) is NYC’s public transportation company. It’s the largest subway system in the United States, and is run by the governor’s office of New York. Spitzer said that the mayor, the governor, and local business leaders have to get together and figure out how to allocate more funds for upkeep and maintenance of the subway system. (Fun fact: the NYC subway system is one of only eight 24/7 subway systems in the world, and is the only subway system in the world with more than 2 lines that run 24/7. NYC has twenty 24/7 lines, plus the PATH train to New Jersey, the Long Island Railroad, and the Staten Island Railway). Clearly this is a massive system, and requires lots of resources to stay running and efficient.
After a few brief moments of political discussion, lead by Catsimatidis and Peebles, the conversation then turned back to business, with Ben Shaoul, President of Magnum Real Estate Group, mentioning that it costs more to borrow money than it did before, and how not every lender with a deep pocket is the right lender for the job. Shaoul and Spitzer both have lots of money invested in the growth of Williamsburg, often considered Brooklyn’s Soho, and that the area, while already bustling, has a lot of growing to do. Moskovits shed perspective on the upcoming growth in order for Brooklyn by saying that the millions of square feet of office space on the agenda for Downtown Brooklyn doesn’t say much about the extraordinarily high demand that exists for leasing opportunities in Northern Brooklyn.
What the first panel delivered in subtle, quick-witted jabs, the second panel delivered in loud opinions and disagreement, yet was still an excellent all around discussion.