The engine driving the multifamily syndicator machine; NYC’s next generation of top office brokers ... and more

The best national real estate stories from The Real Deal. May 04, 2024 [View in Browser]( | [$1 for 1 Month]( [The Real Deal Logo](   [The National Logo](   In today’s newsletter, we examine the [archetypes of multifamily syndicators](, where doctors and engineers and even church groups tap into new investors among their peers to fund real estate deals. Plus, a [new crop of office dealmakers]( rises up in New York, a mortgage fraudster [exposes the commercial lending industry](, and [glitzy condo towers find an unlikely home]( in West Palm Beach. These stories and more below.   [Behind the syndicator machine targeting new investors for multifamily feeder funds]( The business model for a multifamily syndicator is relatively simple. Syndicators pool money from investors, purchase properties, fix them up, rent them out or sell them, and pay returns to investors. That may look familiar from the surface, but the fundraising process for syndicators is unique. That’s because syndicators don’t raise money from big-time industry players. More often than not, they’re raising them from people outside the real estate industry, especially those in a shared community. Oftentimes, syndicators turn to their professional community. Ascent Equity is led by a team of three doctors, and the team raises much of its money from fellow doctors. There are similar syndicators and feeder funds targeted at other white collar professions like engineers, dentists and lawyers. Other syndicators target their personal communities, though. Some of the biggest players in the space have focused fundraising on communities of Indian immigrants or by targeting a church group. For a time, this practice meant that everyone in the community could make money together. Syndication blew up in the days of low interest rates, with many investors pouring money into properties in the Sun Belt, where rent growth was high. As those fundamentals have changed, so have the fates of the many of those investments. “The losses can be pretty massive,” one industry advisor said. “It’s very easy, as a limited partner, to lose your entire investment.”   Advertisement   [I'm an image]( [Meet NYC’s next generation of top office brokers]( Many of New York’s top office leasing brokers have been at the top for decades. But there’s a new generation of dealmakers on the rise. [I'm an image]( [The mortgage fraud scam exposing broader cracks in small-time commercial lending]( Boruch Drillman’s mortgage fraud scheme helped land two of the largest title insurers in the tri-state area on Fannie Mae and Freddie Mac’s blacklist. It also highlighted some of the problems with commercial lending and kicked off a major Department of Justice investigation. [I'm an image]( [South Florida’s branded condo boom arrives in West Palm Beach]( For about a decade, South Florida’s developers have been slapping luxury brand names on condo projects (think Bentley or Dolce & Gabbana). The trend has finally landed in West Palm Beach.   Advertisement   [I'm an image]( [Brand Studio Download: Unlock Your Property’s Potential with Amazon Key]( [I'm an image]( [Chris Cortazzo on how he became the biggest broker in Malibu]( With almost three decades in the Malibu market, Chris Cortazzo has come to dominate the city, closing more than $8 billion in residentia. sales. The star broker sat down with The Real Deal to discuss his success. [I'm an image]( [Builders plot comeback after brutal year]( 2023 was a rough year for New York’s general contractors. But the industry’s best continued to press ahead, and now they’re plotting a comeback in 2024. More Rankings: [Chicago’s top construction firms adapt to low volume]( [I'm an image]( [‘In a holding pattern’: South Florida apartment developers pause projects]( Two years ago, developers were diving headfirst into South Florida apartment projects. Now, many of them have hit pause as they wait out challenging market conditions. [I'm an image]( [Capital Commercial sees gold in the Class B office exodus]( In Texas, Doug Agarwal’s Capital Commercial has made a killing by investing in an asset class that many in the industry wouldn’t touch with a ten-foot pole: Class B offices. He’s not alone. Another local developer, Ken Good Jr., has [built a career out of Class B office]( in DFW. [I'm an image]( [In Bay Area office, developers bet on AI]( San Francisco may have one of the most distressed office markets in the country. But developers are betting that the fast-growing AI industry will fill space at their newest office ventures.     [The Real Deal Logo]( [Facebook]( [Twitter]( [Instagram]( [LinkedIn]( [YouTube]( [Manage Newsletters](link.therealdeal.com/manage/61n/preferences?email={EMAIL}&hash=c3ef811325e0489c79ef984bae8ea606) | [Unsubscribe](list=National Weekly) | [Privacy Policy]( | [Subscribe]( | [Advertise]( The Real Deal 450 West 31st Street, New York, NY 10001 ©2024 TheRealDeal. All rights reserved. [View Online](