Covered Land Play

@hitsamty no idea who actually shops here

News: Related is shopping the Shops at Columbus Circle, one of New York’s most significant luxury retail complexes, according to marketing materials reviewed by The Promote. The ≈ 350K sf complex was the centerpiece of then-CEO Steve Ross’ revitalization of Columbus Circle, the megaproject that put the developer in the pantheon. It’s home to triple Michelin-starred Per Se (Thomas Keller), Masa, and the country’s highest-grossing Whole Foods, per materials doing the rounds from listing broker Newmark. Will be so interesting to see what pricing guidance on this looks like. Main/main/main location, 94% leased.

@hitsamty Richest looking guy I know. Gangster. One of those guys you just don’t mess with

There are guys who just look Rich. It's a combo of quiet smirk/smize, perfect yacht tan, and that thinning slicked-back hair. Eyal Ofer has the billionaire look down bigtime - not dweeby, but not try-hard either.

@shawngorham Reputational damage is an L

I am assuming this means nothing to Scott and his daily lifestyle. I think hes had over $300 mm in successful exits and unlikely he has any PG's on the debt. Ultimately this is a loss for LPs not Scott.

@BlueRocketParty @hitsamty Wonder how matty G is doing since he left Twitter

@hitsamty As soon as the going gets tough these guys disappear from twitter Chris powers, Richard fertig, Scott Everett, etc

The private Sunbelt multifamily REIT formed by Scott Everett's S2 is now telegraphing a total equity wipeout, according to new investor comms from partner Trinity reviewed by The Promote. "Said another way, while the common equity was marked at $0.73 per share as of Q4 2025, S2 is currently focused on maximizing value for mezzanine investors, and equity investors should expect a full loss of capital." More for Insiders later today. REIT has 9K+ units so a BFD.

@robbiehendricks awesome. thanks for the detail!

@UntrendedYOC Oh shoot. I'm sorry, I thought you were talking post-value add refinance. My fault. Initially we used bank debt. This one was 5 year fixed, and they financed some of the capex on a draw schedule.

Couple years ago we bought this old property w/a disgusting prison pool and dirt patch in the middle of the property. We turned it into a beautiful community clubhouse, fitness center, outdoor kitchen, and chill zone. You can build nice things for people. I promise it works.

@robbiehendricks thanks! so you put your own equity to fund capex/reno correct post close? Fannie does not size this loan based on stabilized value?

@UntrendedYOC Yep, this one was a Fannie 7-year fixed. Couple years IO. Think we went a little higher LTV on this one (70%) to pull out more cash for capex reserves over the hold period.

@FarroYossi You met Barry?! Broooooo

Bumped into the legendary Barry Sternlicht, Founder & CEO of Starwood Capital Group (~$100B in real estate assets). I knew I recognized him but couldn’t place it, so I asked if he’s Jewish. He goes: “You just wrapped me at Mar-a-Lago.” Full circle. I said let’s wrap again, he tells me, “This time, wrap with David (my Chief of Staff).” So we did. David’s first time wrapping since his bar mitzvah. And don’t worry, Barry made it into the background of the picture.

@jewndahalfmen Sydney being Jewish would be an awesome addition to the tribe

Make her convert. We will conquer the world

@DallasAptGP Is data not a concern to you? Seems cool but I’d be scared that something can go wrong giving it access to your entire business

Two people in our office are finishing custom software that will be the backbone our entire company. Two years ago this would have cost $1M+ and a year of dealing with outside software developers. We are building it in a few months with VSCode and AI. Operating apartments is not hard. What is hard is making a hundred people share the same data and do the right thing at the right time. That coordination is the whole game in vertical integration. We invest, develop, build, and manage Texas apartments. Four functions under one roof. Most operators outsource three of the four. The advantage of doing all four shows up only when the four sides share data in real time. Without that, vertical integration is just four separate companies under the same name. So we needed software that tied the four sides together. No SaaS product exists for it. Every SaaS tool we run is a silo. ResMan tracks leases. Procore tracks construction. Sage Intacct tracks the books. LoanBoss tracks the debt. Juniper Square holds investor relationships. ADP holds the people. None of them talk to each other. None of them know about the investment memo or the business plan. So we built the system that fixes it. APIs pull data from every SaaS tool above. The data lands in a blob. The blob fills the operating system. Every employee gets a unique login, a custom dashboard, and a task list pulled from live property data. The MVP ships with eleven modules. Phase two adds eight more. It tracks every vendor, contract, and renewal date. Every loan with rate, term, prepayment penalty, and DSCR test. Every entity with EIN, FinCEN filings, and CPA deadlines. Every insurance policy with coverage, deductibles, and claims. The original investment memo on every deal with every deviation logged. Portfolio rollups from the property level. Investor reports generated in one click. The maintenance supervisor in Houston sees his open work orders next to vendor performance scores and the punch list on his renovation. The CFO sees cash position next to debt maturities and every lender covenant. The partnerships team sees commitments, distributions, and K-1 status across every fund and entity. Same data. Different views. Permissions scoped to the role. There is also an AI assistant inside the system. Every employee can ask it questions in plain English. It answers only from data the employee is allowed to see. A loan covenant gets close. The system flags it before the bank does. A vendor underperforms. The renewal alert says do not renew. An investor asks for last quarter's distribution. The answer takes ten seconds. The business plan slips by five percent. The variance report writes itself. Two years ago I emailed a buddy with this dream and we realized it wasn't anywhere near in budget. So I sat on it. A few months ago I handed the vision to my business partner. He taught himself how to build it with AI. He is almost done. We did not build this to show off the technology. We built it because you cannot be the best at investment, development, construction, and property management at the same time without a system that ties them together. The dream every small business operator has is buildable now. For us, it is what turns four functions into one company.

@hitsamty His posts are brilliant. Talmudic mind

You come at the R', you best not miss

@financeguy725 Can’t vibe code customers

software PE bros think really really complex software is the average enterprise software company’s moat? cooked as fuck asset class

@aussieflya yup. called the chutzpah clause

Looking at a development site and the owners want to include a "return to value" clause. Basically, if the property gets flipped within 2 years, they are entitled to 85% of the difference between the original and flip prices. Anyone seen this before?

@robbiehendricks @moseskagan yup Appfolio is using their stickiness to their advantage by now innovating fast enough. They know 99% users won’t migrate. Way too hard and risky to take everyone offline and start anew

@moseskagan AppFolio isn't playing nice with the AI firms either. Not giving access, trying to keep all their users locked in, promising that their AI tools will be as good or better as they are launched. We've been giving 'em heck for it. But I get it. Migrating CRMs is a hassle.

Appfolio and the other "legacy" PMSs are racing to build AI agents before the new AI-native startups can build their own PMSs. For the record, all the operators I know (from people running 100 units to people running thousands) are rooting for the incumbents, bc none of us wants to go through the expense, hassle and (most importantly) risk associated with ripping out our existing PMS. (Separately: No one with whom I'm in touch would consider entrusting something so central to our orgs to a vibe-coded app.)

@iononrecourse Brilliant.

In real estate development: Great timing cures bad execution but great execution doesn't cure bad timing.

@patcarino Looks like the lifetime in noho

But also two story fitness centers are elite

@robbiehendricks If you’re putting 10% of the equity as an example figure in the deal, what is the incentive for you outperforming for the LPs? They put up 90% of the equity so im assuming the 5% disproportionate share ?

@hitsamty @Afarhat44 @NoCapCapitalLLC Manhattan is great every month besides August. If you have enough money, you should be out in the Hamptons anyway .. Even a day like today in the city where the weather is just beautiful and warms up. Can’t top it.

@Afarhat44 @NoCapCapitalLLC not even that. Just taking a random train ride. Odds are the air isn't working. The crazies multiply. Piss & tourist Chanel mix. Most interesting people are out of town. The best months in New York are late Sept-late Oct and mid-May to mid-June. Easily the greatest city then

The west coast of the US, especially the Pacific Northwest, has the most elite summers in the USA. Everyone knows this. NYC isn’t even top 10.

@PerrySolem Elevators = Money suckers

just learned the elevator certificate's been expired for over a year at one of our self storage facilities. seriously?? it seems like every couple months i learn something terrible that further lowers my opinion of a large and seemingly sophisticated mgmt company

@realEstateTrent Why right now? This has been the real estate market for years now .

Was pitched a strip mall deal this morning. It’s around a 4% cap based on today’s income. The pitch: If I can get back a space where’s there’s a non-paying restaurant tenant, spend a year releasing it, pay TI and leasing commissions, then it becomes a 6.75 cap, or $5M. Which is roughly market. The price they’re asking: $5M. So, I’m supposed to pay $5M today… Do all the work… take all the risk… spend the time and money… And then it’s worth $5M when I’m done? Correct. The strip mall world right now, in a nutshell.