A day after election night, most attendees at The Real Deal’s annual forum in Miami seemed to welcome Donald Trump’s victory.
The crowd at the Mana Wynwood convention center applauded when the election or Trump’s name was brought up. Many panelists expressed optimism about the president-elect’s economic policies.
But PMG founder Kevin Maloney had a different take. Maloney, whose firm has over 18 million square feet of development across the country, called Trump’s proposed tariffs a “ridiculous thing.” The increased costs to suppliers will be passed down to developers.
“As a builder we are certainly deeply concerned about moving into an administration that believes in tariffs,” Maloney said.
Bilzin Sumberg’s Suzanne Amaducci, BH3 Management’s Daniel Lebensohn, Property Markets Group’s Kevin Maloney, The Ackman-Ziff Real Estate Group’s Simon Ziff and TRD’s Stuart Elliott (Photos by Alive Coverage)
Bilzin Sumberg’s Suzanne Amaducci, BH3 Management’s Daniel Lebensohn, Property Markets Group’s Kevin Maloney, The Ackman-Ziff Real Estate Group’s Simon Ziff and TRD’s Stuart Elliott (Photos by Alive Coverage)
BH3 Management’s Daniel Lebensohn (Photos by Alive Coverage)
Property Markets Group’s Kevin Maloney, The Ackman-Ziff Real Estate Group’s Simon Ziff and TRD’s Stuart Elliott (Photos by Alive Coverage)
Bilzin Sumberg’s Suzanne Amaducci (Photos by Alive Coverage)
Bilzin Sumberg’s Suzanne Amaducci, BH3 Management’s Daniel Lebensohn, Property Markets Group’s Kevin Maloney, The Ackman-Ziff Real Estate Group’s Simon Ziff and TRD’s Stuart Elliott (Photos by Alive Coverage)
Property Markets Group’s Kevin Maloney (Photos by Alive Coverage)
Bilzin Sumberg’s Suzanne Amaducci, BH3 Management’s Daniel Lebensohn, Property Markets Group’s Kevin Maloney, The Ackman-Ziff Real Estate Group’s Simon Ziff and TRD’s Stuart Elliott (Photos by Alive Coverage)
Property Markets Group’s Kevin Maloney (Photos by Alive Coverage)
BH3 Management’s Daniel Lebensohn (Photos by Alive Coverage)
Bilzin Sumberg’s Suzanne Amaducci (Photos by Alive Coverage)
Bilzin Sumberg’s Suzanne Amaducci, BH3 Management’s Daniel Lebensohn, Property Markets Group’s Kevin Maloney, The Ackman-Ziff Real Estate Group’s Simon Ziff and TRD’s Stuart Elliott (Photos by Alive Coverage)
Bilzin Sumberg’s Suzanne Amaducci, BH3 Management’s Daniel Lebensohn, Property Markets Group’s Kevin Maloney, The Ackman-Ziff Real Estate Group’s Simon Ziff and TRD’s Stuart Elliott (Photos by Alive Coverage)
BH3 Management’s Daniel Lebensohn (Photos by Alive Coverage)
Property Markets Group’s Kevin Maloney, The Ackman-Ziff Real Estate Group’s Simon Ziff and TRD’s Stuart Elliott (Photos by Alive Coverage)
Bilzin Sumberg’s Suzanne Amaducci (Photos by Alive Coverage)
Bilzin Sumberg’s Suzanne Amaducci, BH3 Management’s Daniel Lebensohn, Property Markets Group’s Kevin Maloney, The Ackman-Ziff Real Estate Group’s Simon Ziff and TRD’s Stuart Elliott (Photos by Alive Coverage)
Property Markets Group’s Kevin Maloney (Photos by Alive Coverage)
Bilzin Sumberg’s Suzanne Amaducci, BH3 Management’s Daniel Lebensohn, Property Markets Group’s Kevin Maloney, The Ackman-Ziff Real Estate Group’s Simon Ziff and TRD’s Stuart Elliott (Photos by Alive Coverage)
Property Markets Group’s Kevin Maloney (Photos by Alive Coverage)
BH3 Management’s Daniel Lebensohn (Photos by Alive Coverage)
Bilzin Sumberg’s Suzanne Amaducci (Photos by Alive Coverage)
Bilzin Sumberg’s Suzanne Amaducci, BH3 Management’s Daniel Lebensohn, Property Markets Group’s Kevin Maloney, The Ackman-Ziff Real Estate Group’s Simon Ziff and TRD’s Stuart Elliott (Photos by Alive Coverage)
On the positive side, Maloney said that “Trump has always been great at beating on the Fed and pushing rates down and increasing money supplies through tax cuts.”
The other panelists — Simon Ziff of the commercial real estate brokerage firm Ackman-Ziff, Suzanne Amaducci, chair of real estate and finance of the law firm Bilzin Sumberg, and Daniel Lebensohn, co-founder of BH3, a lender and developer — seemed more eager to discuss the impact of interest rates.
“This current economic situation is not anyone’s fault,” said Amaducci. “It’s because of an increase in interest rate, increased insurance and increase in operating expenses, which is no developer’s fault.”
“I would say today, even nationally speaking, it would be almost impossible to build multifamily today,” said Maloney, pointing to a rise in interest rates and insurance. “We look at probably 20 to 30 projects a week and about nothing pencils out.”
Ziff added, “We are all praying for lower interest rates. It’s really about interest rates and cap rates more than any single component.”
Since the Fed hiked interest rates in 2022, lenders have opted to extend loans on a short-term basis as opposed to a permanent restructuring. The result is fewer deals, as the much anticipated wave of distress has never arrived.
“That (kicking the can) is something that is really impacting the market here,” said Ziff. “People are delaying.”
But Lebensohn, whose firm is known for lending in tricky situations at higher interest rates, said “the incumbent lenders have no interest in taking back the assets.”
Lebensohn’s firm provided a $190 construction million loan in July of last year to Shvo’s Miami Beach Raleigh, a luxury hotel and condo development. BH3 had granted Shvo an extension this summer. Lebensohn said that Shvo is current on loan payments.
The Raleigh’s corridor, which includes the Aman and the Shore Club, was the “true revival to South Beach,” Lebensohn said.
“It’s like the 57th Street of Miami Beach. It’s the new Billionaire’s Row.”
