Editor’s note: high stakes, brief memories

Stuart elliott

The developers are eternal optimists. And forgetful masochists.

These badass street fighters of the real estate world must often stand up to the consensus view, time the market perfectly, and take financial and reputational risks that would lead the average person to collapse.

Few builders exemplify this type better than Jorge Pérez, the king of Miami’s condos, who runs the Related Group with his son Jon Paul. The focus of our cover story this month, Pérez is not only aggressively starting new projects in the hometown he dominates, but he’s also moving quickly to build up to 100 projects across the country and in Latin America.

Never mind that Related has been burned out before trying to diversify, twice in Las Vegas, including in 2005, when it partnered with George Clooney on a development that was ultimately derailed by rising construction costs after sales had already gone off. started.

Pérez said his most important lesson in humility came from the Great Recession, when he stood in a ballroom packed with his creditors to renegotiate nearly $ 2 billion he owed.

But developers are short on memory, and Related’s goal is to diversify out of the extreme ups and downs of the Miami market. Can you do it? See our story on page 66.

In general, there is a lot to be optimistic about.

While it is well known that the residential market is still going full steam (a buyer in Westchester lost in six bidding wars in a row (page 32)), the commercial sector is also getting a new lease of life.

In Manhattan, office tenants are now pulling their spaces out of the sublease market, space they desperately wanted to ditch during the pandemic, anticipating a return to the workplace earlier than expected (page 24).

While only a small percentage of Manhattan office workers had returned last month, that number is expected to approach two-thirds in September, according to a survey by the Partnership for New York City.

When it comes to the national foreclosure crisis, the government’s leniency program has saved homeowners from default by allowing them to skip mortgage payments for up to 18 months. About two-thirds of the 4.3 million borrowers who were in default a year ago have dropped out of the program.

That said, there are still millions of homeowners in trouble, and no one knows what will happen when the eviction moratorium ends (page 72).

On the other hand, we have the second installment of our special Hamptons section (page 35). Even in a hot market, there are some hard-to-sell dogs that can’t seem to find a buyer. We take a closer look at these problem properties on page 38. And how much premium is an East End? water view command, anyway? We break it down on page 46.

In a story that’s sure to make you jealous, we take a look at some of the investors, including Gen Z, who have made millions in cryptocurrencies and are now looking to park some of that money in the (relatively) stable asset class. of real estate. The latest purchase by a 24-year-old investor, a $ 1.8 million book at NoMad, was paid for in cash with the proceeds of his bets (page 55).

Finally, our closing interview this month is one of the most moving we have published. Janice Mac Avoy, Fried Frank’s Co-Director of Real Estate Litigation, talks about how she loves questioning and “twisting [a witness] in knots. “But she also opens up about her sister’s murder last year, the dissolution of her marriage, and the abortion (page 86).

“I’ve had a tremendous amount of support from people who are really there for me,” he said. “If you don’t talk about [your feelings], you’re not going to get that. “

Enjoy the theme.

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